CM Naidu asks Modi to look beyond APR Act-2014


Chief minister Chandrababu Naidu today cautioned Prime Minister Narendra Modi not to delay the financial assistance to Andhra Pradesh as promised as it would lead to misgivings in the minds of people of the state. Naidu presented a memorandum to the Prime Minister today listing the areas that need central intervention.

While laying stress on the implementation of provision incorporated in the AP Reorganization Act 2014. he also urged Prime Minister to think out of the box of Act.
“Keeping in view infrastructural deficit and the gap in the social development indicators, the state of AP requires substantial financial support far beyond what has been promised in the APR Act-2014,” the memorandum said. Naidu placed before the Prime Minister the general mood of the people of Andhra Pradesh.

“During my earlier meetings with you and your ministers, I was assured that all provisions of the APR Act would be implemented in letter and spirit. The assurances had kindled hope that the pain and damage caused by the bifurcation would be assuaged and new era of development and progress would be launched. However, in recent times, an impression is gaining ground that the assistance so far has been modest, and has not been commensurate with the institutional support and financial assistance required by the state,” Naidu said.

In this background, the CM said, there was an urgent need to reassure the people of AP that the central government is committed to all round development of the state by creating an enabling environment to achieve its full potential of economic growth.

The areas that need to be addressed

a. Special category status
b. Grant for bridging the resource gap pertaining to the 2014-15 financial year;
c.Assistance for the development of Rayalaseema and North coastal Andhra
d. Financial assistance to new capital Amaravati
e.Incentives for industrial development
f. Institutions guaranteed in the schedule XIII
g. Polavaram project
h. Replication of research and training institutions of Schedule X in Andhra Pradesh
i. Assistance for socio-economic development
g. Coordination mechanism for the resolution of outstanding related to AP Reorganization Act.

CM also requested the PM to establish a high-powered committee that would facilitate early and amiable resolution of all outstanding matters relating to the APR Act 2014 and facilitate all round development of Telugu people.

Increase of Assembly Seats

Similarly he sought amendments to section 22 of the Act to increase the number of seats in Assembly from 175 to 225 . Similarly section 50 and 51 also need to be amended to correct the anomaly relating to the recovery of Tax arrears, which would entail a loss of around Rs 3000 crore to AP.

Rayalaseema and North coastal Andhra

“The economic and human development indicators reveal that the three north coastal districts and four Rayalaseema districts are closer to the Special Category States rather than the other southern states. At present these districts lack economic growth engines and have substantially poor infrastructure and therefore are unable to attract investments. The grant of Rs 50 crore for each of the seven districts released in the first quarter of 2014-15 financial year, has initiated the process of infrastructure strengthening and it needs to be sustained over the next five years in order to help them catch up with other more developed districts. The grant of Rs 350 crore for seven districts is a fraction of what was sanctioned for KBK districts and Bundelkhand region which were given Rs 5527 crore (for ten years from 2002-03) and Rs 7266 crore (for 2009-2014) respectively. These seven district of AP also deserve deserve equal treatment.”

Development new Capital

The essential infrastructure of Capital Amaravati costs about Rs 42935 crore in the next five years. So, it needs at least Rs 4000 crore per year for the next five years from in the form of central assistance.

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