Shifting of AP staff to cost a bomb

Highlights

Shifting of State administration from Hyderabad to Vijayawada is likely to cost the Andhra Pradesh government about Rs 150 crore per year. Given the precarious situation, now doubts are being expressed whether the government could shift the State Secretariat, Directorates and Commissionorates within a span of next four to five months.

* An official says space demanded by 33 departments jumped from 26 lakh sqft to 46 lakh sqft and it is likely to cost
Rs 150 crore per year
* Govt has sanctioned rentals at Rs 11 to Rs 23 per sqft but land owners in Guntur, Mangalagiri are demanding Rs 40 to Rs 46 per sqft

* To cut cost, govt is likely move only those depts which have to interact with people on
day-to-day basis by June 1

Hyderabad: Shifting of State administration from Hyderabad to Vijayawada is likely to cost the Andhra Pradesh government about Rs 150 crore per year. Given the precarious situation, now doubts are being expressed whether the government could shift the State Secretariat, Directorates and Commissionorates within a span of next four to five months.

According to sources, all the previous estimates of the government on space requirements to shift the administration do not seem to be in line with the actual requirements of about 33 departments in the State Secretariat.

Speaking to The Hans India, a senior official pointed out that requirements of 10 HoDs who met the committee headed by Panchayat Raj and Rural Development Principal Secretary K S Jawahar Reddy, and Transport, Road and Buildings Special Chief Secretary B Sam Bob here on Thursday, felt that the earlier assessment of 26 lakh sqft was not sufficient. Since after taking into consideration the requirements of all the departments, the space requirement jumped to 46 lakh sqft.

Clarifying on the sudden jump in the requirement of space, the sources added, earlier estimates were only on the basis of identifying the existing and available spaces. Accordingly, the Jawahar Reddy Committee had identified about 5.5 lakh to 7 lakh sqft. But, now each department is coming up with their space requirements on the basis of their existing office space occupied.

For example, the Revenue department has pegged its requirement to about 2.2 lakh sqft. Similarly, the Commercial Taxes, Excise, AP Beverages’ Corporation and Registration and Stamps have asked for about 1. 4 lakh sqft, said a senior official from the revenue department.

In the wake of huge requirement of space, it was now up to the government to decide, whether to shift all the departments, or to shift only those departments which have to interact with people on day-to-day basis to move to Vijayawada, from June 1, 2016.

Because, if the government has to take place take on rent or lease, the minimum time of agreement would be 12 months that the property owners are insisting. And, earlier the government has hiked the rate of rentals and leases, from Rs 11 to Rs 23 per sqft. However, the property owners in Guntur, Mangalagiri nd Vijayawada, and surrounding areas were not ready to lose an opportunity to make a killing. “They were quoting Rs 40 to Rs 46 per sqft in prime areas, and around Rs 40 per sqft in other areas. On the top of it, when they were giving their space on rent to the government, they need not worry about the payments,” said an official from the revenue department.

Even if the government could negotiate at Rs 30 per sqft , then it would come to Rs 13.8 crore per month and around Rs 165 crore per year, he pointed out. At the present pace of affairs, it seems difficult to see completion of the State Secretariat, HOD offices in the proposed first phase of new State capital Amaravati. As such, the government will have to take the temporary office accommodation for two years, which comes to about a whopping Rs 330 crore.

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