Noted environmentalist and former union power secretary Dr EAS Sarma urged the Comptroller and Auditor General of India (CAG) to conduct a special audit into the accounts of Capital Amaravati development project. Writing a letter to the CAG, Sarma expressed doubts over the possible diversion of Hudhud funds to some other purposes, especially for meeting the extravagant expenditure on the grandiose Capital City Project near Guntur and unapproved Pattiseema project etc. The reasons Dr Sarma cited for the special audit by CAG are as follows :
1. In pursuance of Section 6 of the Andhra Pradesh Reorganisation Act, 2014, the Union Home Ministry, vide its DO letter No. 12012/03/2014-SR dated 28-3-2014, constituted an Expert Committee to study the alternatives for a new capital of Andhra Pradesh. While defining the Terms of Reference (TOR) for the Committee, the Union Home Ministry had asked the Committee to keep in view the need to cause “the least possible dislocation to existing agriculture systems as well as ensure minimum resettlement of people and their habitations”, to ensure “preservation of local ecology and natural features including water bodies”, make a “vulnerability assessment for natural disasters like floods, cyclones and earthquakes” and “assess the scope for minimising the cost of construction and acquisition of land”. The State government has completely ignored this and unilaterally decided to locate the capital city near Guntur, violating the TOR and taken decisions that will cost the people of the State hundreds of thousands of crores of rupees. The project is not compliant with the provisions of the Environment (Protection) Act, nor does it comply with a host of other Central and State laws. Public expenditure without legislative approval is clearly irregular and the legislature is entitled to be aware of it.
2. The way the Capital City Project is being executed is shrouded in secrecy, consultants are being chosen in a non-transparent manner and MOUs are being signed with them without public knowledge. There are reports that large stretches of land forcibly taken from the farmers are being handed over to foreign agencies in a highly questionable manner. It is necessary that these aspects are subject to audit and the legislature apprised of it.
3. Commitments on the Capital City Project are increasing every dayin leaps and bounds, as the State is making one commitment after another. To raise the level of a large portion of the land allotted for the project to meet the threat of periodic flooding, the tax-payers elsewhere in the State have to shell down thousands of crores. To provide water for the new city, the State proposes to construct a new barrage on Krishna River involving several thousands of crores of rupees. The end to these commitments is not in sight.
4. The commitments being made in respect of the Capital City Project will cast a huge financial burden on the budget, diverting scarce budgetary resources from the backward areas of north AP and Rayalaseema and from crucial development sectors such as public health, education, social welfare etc. These commitments will burden not only the present budgets but also the future budgets of the State and even create huge liabilities for the Centre.
