Govt pleads for more funds to tide over bifurcation blues: CM Y S Jagan Mohan Reddy

Amaravati: The state government requested 15th Finance Commission (FFC) to help the state in overcoming the bifurcation problems. It also urged the commission to suggest to the Central government to grant Special Category Status. These requests were made by Chief Minister Y S Jagan Mohan Reddy when Finance Commission chairman N K Singh and other members met him at Tadepalli on Thursday.

The state government objected the consideration of district as a unit for giving funds for developmental works and infrastructure creation. It observed that in the sanctioning of the medical colleges, the Finance Commission should not take district as a unit. It suggested to consider at least Lok Sabha constituency as an unit for encouraging medical colleges.

Jagan told the chairman that the wounds inflicted by the bifurcation of the state in 2014 continued to trouble AP and growth, cutting across various sectors had been the biggest casualty.

The Chief Minister, wanted Central loans and National Savings Institute advances amounting to Rs 22,733 crore waived in view of the state's 'precarious' financial position.

He listed out the various freebies introduced by his government in the name of 'Navaratnalu' and sought a recommendation from the commission for appropriate financial assistance from the Centre.

The Chief Minister referred to the various projects proposed in the AP Reorganisation Act, 2014, like the development of a major port, establishment of an integrated steel plant in Kadapa district, and wanted the commission to ensure they were fulfilled.

He wanted a special machinery at the Centre to ensure implementation of the promises made in the Act. Referring to the multipurpose Polavaram project, the Chief Minister said the Centre was yet to approve the revised estimates for Rs 55,548 crore.

In the next financial year, the Centre should release at least Rs 16,000 crore for Polavaram works, including rehabilitation and resettlement, he said while urging the panel chief to recommend to the Centre release funds for the project immediately.

"Otherwise, there will be trouble in going ahead with the project works," he said. Finance Commission secretary Aravind Mehta, state Chief Secretary Nilam Sawhney and other senior officials attended the meeting.