Centre backtracked on all promises

Amaravati: The BJP-led government at the Centre failed completely in implementing the AP Reorganisation Act and showed almost empty hand on each and every promise that was made to the state while passing of the Act in Parliament, said Chief Minister N Chandrababu Naidu.

He released a white paper on ‘Implementation of AP Reorganization Act 2014 and the connected assurances’ at his residence at Undavalli here on Sunday. He scheduled to release 10 white papers from Sunday.

Naidu said that in white paper released in 2014 he had put forth the contradictions, commissions, omissions and inadequacies of the Act. The present white paper seeks to place on record the status of implementation of assurances made in the Act, as well as the assurances of Prime Minister on the floor of Rajya Sabha.

The bifurcation of state resulted in AP losing the economic powerhouse and capital Hyderabad developed by successive governments for nearly seven decades, lack of large-scale industrial base, absence of Central institutions and left a deep sense of hurt and anguish, the white paper said.

“The state received only 46 per cent of the estimated revenues of the combined state while accounting for the 58 per cent of its population which is also confirmed by the 14th Finance Commission.

Assets were allotted on location basis whereas debt liabilities were distributed on population basis. In power sector, power consumption has been adopted as the basis of distribution which is detrimental to AP state,” the paper said.

It said refund of taxes is to be shared between AP and Telangana on population basis whereas deferred tax collections have been allocated on location basis. This has caused a loss of about Rs.3,800 crore to the state.

According to the paper, undivided loan liability of more than Rs 33,478 crore has been put in the books of accounts of Andhra Pradesh, burdening the state with discharge of liability along with interest and pending division. This has adversely impacted FRBM limits of AP as well.

Despite Singareni Collieries being a Schedule IX company, Telangana state has been allocated 51 per cent equity of the company on location basis. The paper rued that there are 14 assurances in the Reorganisation Act, but none of them was fully implemented.

Nine assurances that remained unimplemented are division Greyhounds; APLA seats; division of properties of AP Bhavan; apportionment of yax arrears, loans and refunds; Government of India reference under Sec. 66; apportionment of Schedule IX Government Companies and Corporations; Bifurcation of Schedule X Institutions; Bifurcation of Schedule X Institutions; river management boards.

On Polavaram irrigation project, the white paper said as of now, 62.53 per cent of the works have been completed and efforts are being made to complete the project by 2019. Total expenditure incurred on Polavaram project up to December 15 2018 is Rs 10,069.66 crores.

Of this, Rs.6727.26 crore has been released to the state. The balance of Rs. 3,342.40 crore is still to be reimbursed. No funds have been released for the last four months, resulting in strained state finances.

The revised cost of the Project at the price level as on 01.04.2014 has been submitted to Central Water Commission (CWC) on August 16, 2017. A proposal seeking special package of incentives , to promote industrialisation and economic growth was submitted to the Centre under AP Reorganisation Act in 2014 and till date no action is taken on this.

Detailed Project Report for Amaravati infrastructure for a total of Rs.39,937 crorewas submitted to for release of funds under the Act. Currently, 56 projects costing Rs 48,115 crore are taken up in the capital city region. Centre released Rs.1,500 crore during the years 2014-17 and no funds were released in 2017-18.

The Chief Minister pointed out that Special Category Status was demanded by BJP itself during the passage of the bill but it reneged on its promise after coming to power.

The government vowed in the white paper to continue to mount pressure on the Government of India till all provisions of the Reorganisation Act and assurances are achieved. It stresses the need to complete Polavaram, Amaravati, establish steel plant at Kadapa, railway Zone at Visakhapatnam.

Chandrababu Naidu stated that, through active support and cooperation of other political parties in the country, he would pressurise the Centre for implementation of AP Reorganisation Act and assurances in totality, in a time-bound manner.