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Amit Shah's Letter to Chandrababu: Key Highlights!
By: Tupaki Desk | 24 March 2018 8:20 AM GMT
BJP President Amit Shah has written a 9-page Open Letter to AP Chief Minister Chandrababu Naidu over the decision to step out National Democratic Alliance (NDA). He not only conveyed Ugadi wishes to Andhrites, but also expressed the view that TDP ended ties with BJP for political mileage though Centre has done so much in the past four years. He listed out what has Union Government done to AP so far...
BJP-led NDA Government has nurtured the new state of Andhra Pradesh with the spirit that this is the state that suffered at the time of state's bifurcation. This becomes evident from the massive resource allocations to the state of Andhra Pradesh over the past four years and the fact that already most of the promises made in the AP Reorganisation Act, 2014 are poised towards fulfillment. The manner in which people have blessed us over the past four years throughout the country demonstrates the public support for our positive agenda. Your assertion that the BJP is not sensitive to the aspirations of the people of Andhra Pradesh and has not implemented the provisions of the AP Reorganisation Act, 2014 and assurances given by the then Prime Minister in the Rajya Sabha is untrue and baseless.
Cooperative federalism is the guiding credo of this Government. Prime Minister Shri Narendra Modi has worked with a 'Team India' spirit, with all the Chief Ministers and devolved far more funds - 42 percent of central revenues (as against 32 percent earlier) - amounting to an additional Rs. 2 Lakh crore, to the states. All this makes it very obvious that any claim of discrimination against Andhra Pradesh is far from the facts.
11 Educational Institutions:
Schedule XIIII of the AP Reorganisation Act, 2014 has two components namely, Education and Infrastructure. While the Act mandates the Central Government to set up 11 educational institutions of national importance by the end of 13th plan i.e 2022. nine institutions namely IIT, NIT, IIIT, IIM, IISER, IIPE, Agri University, AIIMS-type Hospital cum teaching institution, NIDM) have already been established and are functioning in the state. As regards the remaining two institutions, namely a central university and a tribal university, a provision has already been made in the current year's Union budget.
8 Infrastructure Projects:
Of the eight infrastructure projects that the AP Reorganisation Act proposes for implementation, subject to their feasibility. the Central Government has already initiated action on five feasible projects. These include:
1) HPCL's green field crude oil refinery and petrochemical complex at Kakinada
2) 800 km long Vizag-Chennai Industrial Corridor
3) Upgradation of three airports at Visakhapatnam. Vijayawada and Tirupati to international standards
4) The following Rapid Rail and Road connectivity projects from the new capital of Andhra Pradesh Amaravathi:
A) As informed by your Government, a Techno-economic feasibility report of Greenfield expressway connecting new capital city of Amaravathi to Ananatapuram will spur connectivity to Kurnool & Cuddapah is being prepared with an estimated civil cost of about Rs. 24.000 cr. Earlier, the state was to provide land free of all encumbrances. But later, in a meeting, the Chief Secretary of the State said that it can only provide 50% of land cost as per Bharatmala Pariyojana norms. A formal reference from State in this regard is still awaited.
B) 180 km long outer ring road to the new capital town of Amravati with a budget of Rs.19,700 crone
C) New railway line between Vijayawada and Guntur via Amravati at a cost of Rs. 2680 crores
D) New railway line on Nadikudi-Srikalahasti (309 km) route at a cost of Rs. 340 crore and
E) Guntakal-Guntur line doubling project with electrification at a project cost of Rs. 3,631 crore.
5) "In principle" approval has been given for Vijayawada metro rail project at a cost of Rs. 6,769 crone and a revised proposal is still awaited from the state for the approval of the Visakhapatnam metro project.
Of the remaining infrastructure projects, Duggirajapatnam port and steel plant in YSR district have been found to be unviable initially. The Government of India has given an assurance in Parliament that Duggirajapatnam or any other port will be taken up for earliest implementation. A task force set up to re-examine the steel plant in YSR district has made recommendations for making the project viable and the Centre is working out modalities to make this happen. The issue of establishing a new railway zone is under active consideration of the Ministry of Railways and a decision in this regard will be made in due course looking into all relevant factors.
Special Category Status:
On the issue of special status for Andhra Pradesh, it is regrettable that some political parties are whipping up public sentiments rather than encouraging an informed debate which is the cornerstone of a vibrant democracy.
The 14th Finance Commission's Terms of Reference (ToR) have been amended in right earnest as per AP Reorganisation Act, 2014 as soon as our government came to power on June 2, 2014 vide President's Order published under S.O. Sc. 1424(E) to take into account the resources available to Andhra Pradesh and make recommendations thereof.
Due to the weak financial position of Andhra Pradesh, the 14th Finance Commission has awarded to the state revenue deficit grants to the tune of Rs. 22,113 crore covering the overall revenue deficit for five years. Andhra Pradesh is the only state to receive the award of revenue deficit grants for all the five years period i.e from 2015 to 2020 besides the eight north-eastern and hilly states.
Central Assistance To AP:
The NDA government has more than doubled the extent of central assistance to Andhra Pradesh as compared to the total funds allocated in the previous five years. The total award of funds to Andhra Pradesh under tax devolution and grants under various heads during the 14' Finance Commission (2015 to 2020 which broadly corresponds to the tenure of the present NDA government) is Rs.2,44,271 crore and the break-up of this allocation is as under: Rs.1,70,686 Cr (share in central taxes), Grant-In-Ad Rs. 36,225 Cr, Revenue Deficit Grant Rs. 22,113 Cr, Local bodies grant Rs. 12.290 Cr and State Disaster Response Fund Rs. 2,957 Cr. The total award of funds and grants to Andhra Pradesh in the previous five years (2010 to 2015) was Rs. 1,17,967 crone and the Congress-led UPA government was in power for most of this period.
Special Package:
Even after such massive increase in allocations, the Central Government has offered a Special Assistance Measure (Financial Package) to Andhra Pradesh in September, 2016 which was equivalent to the key financial benefits the state would have got as a special category state. Your government hailed this central assistance package as a great achievement of the state government. Suddenly, two years later, you have made a U-Turn once again demanding the special status which has become redundant in view of the financial commitments already fulfilled by the Central Government.
Under the Special Assistance Measure (Package). the amount of Externally Aided projects (EAPs) signed so far is Rs 8,991.38 Crone, while projects worth Rs.17,236 Crore are in the pipeline. Your accusation that there is a delay in the release of funds under the special package is an admission of your government's lackadaisical approach. Why is it that the state government has not acted in a speedy manner to get the externally aided projects implemented when the special assistance measure (package) was approved by the Union cabinet? If the public welfare was a priority why did your government take so long to access these funds? Why is it that your government has not responded to Central Government's suggestion of setting up a special purpose vehicle for directly receiving these funds from NABARD as desired by your government? Is it because it poses problems in diverting such funds for 'other' purposes?
Revenue Deficit:
NDA Government had agreed to bridge the revenue gap for the year 2014-15 and a sum of Rs. 3979.50 Crore was released to the state. The Central Government has also agreed to release an additional Rs.1600 crore based on the revenue deficit estimates for the year 2015-16 by the 14. Finance Commission.
Your government's claim of Rs.16,000 crore deficit in the year 2014-15 is fallacious as this includes the state government's expenditure on farm loan waivers, pensions etc. Even our party governments in different states have implemented similar loan waiver schemes to give relief to the farmers but have met such expenditure from their own sources.
Railway Projects:
The commitment of Central Government towards development of Andhra Pradesh also gets reflected in increased budgetary allocation of Railways. Budget Outlay in 2014-19 has been about Rs. 14,151 crore as against Rs. 5,100 in 2009-14, an increase of about 219%. It is also worth mentioning that a total of 32 projects costing Rs. 47,989 Cr for 5,016 kms are already under execution.
New Capital:
Central Government has already made available Rs.2,500 crore to the state government. This includes Rs.1,000 crore released by the Ministry of Housing & Urban Affairs (MoHUA), Government of India for the development of the capital region. The state government has spent only 8% of the Rs. 1,000 crore released by the MoHUA. When the state government has not utilized the funds given so far, how can it expect the Central Government to release any further funds for the purpose?
Polavaram Project:
An Advisory Committee of Ministry of Water Resources approved the cost of the Polavaram Project at 2010-11 price level as Rs.16,010.45 crore including power and drinking water component of Rs 2,868 crore. Further, on 08.9.2016, the Finance Minister announced that the Central Government would provide 100% of the remaining cost of the irrigation component of the project for the period starting from 1.4.2014. to the extent of the cost of the irrigation component on that date. So far, Central Government has released Rs 5,364.00 crore and is committed to fund the balance amount of the project as per the announcement made by Finance Minister on 08.9.2016.
Other Key Initiatives taken up by Centre in AP:
More than Rs. 3 lakh crore worth of infrastructure and industrial projects have been initiated in the state of Andhra Pradesh. These include an investment of over Rs. 1 lakh crore on highways and roads, investment of over Rs. 1.4 lakh crore by HPCL, GAIL and ONGC in the petroleum sector to make Andhra Pradesh a major petrochemical club. investment of Rs.38,500 crores in Vizag Steel Plant, UDAY (Discoms) scheme with a an overall net benefit of approximately Rs 4,400 crore during the period of turnaround, ultra mega solar power projects and Solar parks at a cost of Rs. 24,000 crores etc
Utilisation Certificates:
Central Government has not received appropriate fund utilization details from AP Govt, particularly with regards to developmental funds under desired heads. It is worth noting that the Utilisation Certificates (UCs) have been received only for 12% of the grant released for backward districts in 2016 -17 and UCs were received only for 8% for the 1000 crore released for the Capital region. Since it's mandatory for the Central Government to have these details to release further installments, it cannot be blamed for fund lapses. Governments are accountable to the people for every single penny spent on their behalf. Therefore, your statements that the state government has no obligation to give any such statements of expenditure are evasive and reflect governance deficit.
BJP-led NDA Government has nurtured the new state of Andhra Pradesh with the spirit that this is the state that suffered at the time of state's bifurcation. This becomes evident from the massive resource allocations to the state of Andhra Pradesh over the past four years and the fact that already most of the promises made in the AP Reorganisation Act, 2014 are poised towards fulfillment. The manner in which people have blessed us over the past four years throughout the country demonstrates the public support for our positive agenda. Your assertion that the BJP is not sensitive to the aspirations of the people of Andhra Pradesh and has not implemented the provisions of the AP Reorganisation Act, 2014 and assurances given by the then Prime Minister in the Rajya Sabha is untrue and baseless.
Cooperative federalism is the guiding credo of this Government. Prime Minister Shri Narendra Modi has worked with a 'Team India' spirit, with all the Chief Ministers and devolved far more funds - 42 percent of central revenues (as against 32 percent earlier) - amounting to an additional Rs. 2 Lakh crore, to the states. All this makes it very obvious that any claim of discrimination against Andhra Pradesh is far from the facts.
11 Educational Institutions:
Schedule XIIII of the AP Reorganisation Act, 2014 has two components namely, Education and Infrastructure. While the Act mandates the Central Government to set up 11 educational institutions of national importance by the end of 13th plan i.e 2022. nine institutions namely IIT, NIT, IIIT, IIM, IISER, IIPE, Agri University, AIIMS-type Hospital cum teaching institution, NIDM) have already been established and are functioning in the state. As regards the remaining two institutions, namely a central university and a tribal university, a provision has already been made in the current year's Union budget.
8 Infrastructure Projects:
Of the eight infrastructure projects that the AP Reorganisation Act proposes for implementation, subject to their feasibility. the Central Government has already initiated action on five feasible projects. These include:
1) HPCL's green field crude oil refinery and petrochemical complex at Kakinada
2) 800 km long Vizag-Chennai Industrial Corridor
3) Upgradation of three airports at Visakhapatnam. Vijayawada and Tirupati to international standards
4) The following Rapid Rail and Road connectivity projects from the new capital of Andhra Pradesh Amaravathi:
A) As informed by your Government, a Techno-economic feasibility report of Greenfield expressway connecting new capital city of Amaravathi to Ananatapuram will spur connectivity to Kurnool & Cuddapah is being prepared with an estimated civil cost of about Rs. 24.000 cr. Earlier, the state was to provide land free of all encumbrances. But later, in a meeting, the Chief Secretary of the State said that it can only provide 50% of land cost as per Bharatmala Pariyojana norms. A formal reference from State in this regard is still awaited.
B) 180 km long outer ring road to the new capital town of Amravati with a budget of Rs.19,700 crone
C) New railway line between Vijayawada and Guntur via Amravati at a cost of Rs. 2680 crores
D) New railway line on Nadikudi-Srikalahasti (309 km) route at a cost of Rs. 340 crore and
E) Guntakal-Guntur line doubling project with electrification at a project cost of Rs. 3,631 crore.
5) "In principle" approval has been given for Vijayawada metro rail project at a cost of Rs. 6,769 crone and a revised proposal is still awaited from the state for the approval of the Visakhapatnam metro project.
Of the remaining infrastructure projects, Duggirajapatnam port and steel plant in YSR district have been found to be unviable initially. The Government of India has given an assurance in Parliament that Duggirajapatnam or any other port will be taken up for earliest implementation. A task force set up to re-examine the steel plant in YSR district has made recommendations for making the project viable and the Centre is working out modalities to make this happen. The issue of establishing a new railway zone is under active consideration of the Ministry of Railways and a decision in this regard will be made in due course looking into all relevant factors.
Special Category Status:
On the issue of special status for Andhra Pradesh, it is regrettable that some political parties are whipping up public sentiments rather than encouraging an informed debate which is the cornerstone of a vibrant democracy.
The 14th Finance Commission's Terms of Reference (ToR) have been amended in right earnest as per AP Reorganisation Act, 2014 as soon as our government came to power on June 2, 2014 vide President's Order published under S.O. Sc. 1424(E) to take into account the resources available to Andhra Pradesh and make recommendations thereof.
Due to the weak financial position of Andhra Pradesh, the 14th Finance Commission has awarded to the state revenue deficit grants to the tune of Rs. 22,113 crore covering the overall revenue deficit for five years. Andhra Pradesh is the only state to receive the award of revenue deficit grants for all the five years period i.e from 2015 to 2020 besides the eight north-eastern and hilly states.
Central Assistance To AP:
The NDA government has more than doubled the extent of central assistance to Andhra Pradesh as compared to the total funds allocated in the previous five years. The total award of funds to Andhra Pradesh under tax devolution and grants under various heads during the 14' Finance Commission (2015 to 2020 which broadly corresponds to the tenure of the present NDA government) is Rs.2,44,271 crore and the break-up of this allocation is as under: Rs.1,70,686 Cr (share in central taxes), Grant-In-Ad Rs. 36,225 Cr, Revenue Deficit Grant Rs. 22,113 Cr, Local bodies grant Rs. 12.290 Cr and State Disaster Response Fund Rs. 2,957 Cr. The total award of funds and grants to Andhra Pradesh in the previous five years (2010 to 2015) was Rs. 1,17,967 crone and the Congress-led UPA government was in power for most of this period.
Special Package:
Even after such massive increase in allocations, the Central Government has offered a Special Assistance Measure (Financial Package) to Andhra Pradesh in September, 2016 which was equivalent to the key financial benefits the state would have got as a special category state. Your government hailed this central assistance package as a great achievement of the state government. Suddenly, two years later, you have made a U-Turn once again demanding the special status which has become redundant in view of the financial commitments already fulfilled by the Central Government.
Under the Special Assistance Measure (Package). the amount of Externally Aided projects (EAPs) signed so far is Rs 8,991.38 Crone, while projects worth Rs.17,236 Crore are in the pipeline. Your accusation that there is a delay in the release of funds under the special package is an admission of your government's lackadaisical approach. Why is it that the state government has not acted in a speedy manner to get the externally aided projects implemented when the special assistance measure (package) was approved by the Union cabinet? If the public welfare was a priority why did your government take so long to access these funds? Why is it that your government has not responded to Central Government's suggestion of setting up a special purpose vehicle for directly receiving these funds from NABARD as desired by your government? Is it because it poses problems in diverting such funds for 'other' purposes?
Revenue Deficit:
NDA Government had agreed to bridge the revenue gap for the year 2014-15 and a sum of Rs. 3979.50 Crore was released to the state. The Central Government has also agreed to release an additional Rs.1600 crore based on the revenue deficit estimates for the year 2015-16 by the 14. Finance Commission.
Your government's claim of Rs.16,000 crore deficit in the year 2014-15 is fallacious as this includes the state government's expenditure on farm loan waivers, pensions etc. Even our party governments in different states have implemented similar loan waiver schemes to give relief to the farmers but have met such expenditure from their own sources.
Railway Projects:
The commitment of Central Government towards development of Andhra Pradesh also gets reflected in increased budgetary allocation of Railways. Budget Outlay in 2014-19 has been about Rs. 14,151 crore as against Rs. 5,100 in 2009-14, an increase of about 219%. It is also worth mentioning that a total of 32 projects costing Rs. 47,989 Cr for 5,016 kms are already under execution.
New Capital:
Central Government has already made available Rs.2,500 crore to the state government. This includes Rs.1,000 crore released by the Ministry of Housing & Urban Affairs (MoHUA), Government of India for the development of the capital region. The state government has spent only 8% of the Rs. 1,000 crore released by the MoHUA. When the state government has not utilized the funds given so far, how can it expect the Central Government to release any further funds for the purpose?
Polavaram Project:
An Advisory Committee of Ministry of Water Resources approved the cost of the Polavaram Project at 2010-11 price level as Rs.16,010.45 crore including power and drinking water component of Rs 2,868 crore. Further, on 08.9.2016, the Finance Minister announced that the Central Government would provide 100% of the remaining cost of the irrigation component of the project for the period starting from 1.4.2014. to the extent of the cost of the irrigation component on that date. So far, Central Government has released Rs 5,364.00 crore and is committed to fund the balance amount of the project as per the announcement made by Finance Minister on 08.9.2016.
Other Key Initiatives taken up by Centre in AP:
More than Rs. 3 lakh crore worth of infrastructure and industrial projects have been initiated in the state of Andhra Pradesh. These include an investment of over Rs. 1 lakh crore on highways and roads, investment of over Rs. 1.4 lakh crore by HPCL, GAIL and ONGC in the petroleum sector to make Andhra Pradesh a major petrochemical club. investment of Rs.38,500 crores in Vizag Steel Plant, UDAY (Discoms) scheme with a an overall net benefit of approximately Rs 4,400 crore during the period of turnaround, ultra mega solar power projects and Solar parks at a cost of Rs. 24,000 crores etc
Utilisation Certificates:
Central Government has not received appropriate fund utilization details from AP Govt, particularly with regards to developmental funds under desired heads. It is worth noting that the Utilisation Certificates (UCs) have been received only for 12% of the grant released for backward districts in 2016 -17 and UCs were received only for 8% for the 1000 crore released for the Capital region. Since it's mandatory for the Central Government to have these details to release further installments, it cannot be blamed for fund lapses. Governments are accountable to the people for every single penny spent on their behalf. Therefore, your statements that the state government has no obligation to give any such statements of expenditure are evasive and reflect governance deficit.
