AMARAVATHI - AP NEW CAPITAL - ISSUES AND CONCERNS

Amaravati- AP new capital _ issues and concerns

AP lost its rights on Hyderabad, the 5th largest city and IT hub with states bifurcation. It's a fact that entire united state invested most of their resources in Hyderabad and made it as prestigious city in the country. AP can not be treated like Chattisgarh/Jarkhand/Uttaranchal in funds allocation as AP case is totally different.

We quickly reconciled to the forced decision of separation and came up with a plan to built world class capital with people's participation. Largest land pooling in country is completed successfully. Tentative DPR with 5 lakh crores investments in phased manner with a sound business model addressing all issues and concerns is put in place.

GOI gave some funding and much more is committed. Though the allocations are much below our requirements and expectations, we are trying to make good with external borrowings and other models.

AP approached World Bank and got tentative approval for 100 million dollars and GOI reduced it to half. Certainly it's a matter of concern to us and needs to be resolved. In fact it's small portion of loan and in future much more such proposals will follow. If GOI support is not there the project will not move as targeted.

In recent spl package announced, it is stated that external funded projects repayment is responsibility of GOI. It has to be made clear that capital city funding is treated as external funded project or not?

We are aware that resources are always limited and has to put to proper use. AP is moving forward with mega capitail project and GOI is certainly in loop. It is better at this stage for GOI to have detailed discussion with the state and get clarity on issues/concerns if any and come to a clear understanding. AP has conceptual clarity on the project and master plan is finalized with nine themes, core capital and downtown.

At this stage, beat the bush around attitude will not help both parties and people will be the clear loosers.

BGR