VIJAYAWADA: Chief Minister Chandrababu Naidu observed that the State, like a slave, was paying taxes on the construction of Amaravati to the Centre despite being in crisis. He asserted that every penny of the State would be recovered, with interest, from the Centre.
Speaking to the media after inspecting the ongoing works in the capital on Wednesday, the Chief Minister said that the State was paying Rs 6,000 crore annually towards Goods and Service Tax (GST) on the works in the capital. “Instead of receiving money, we are paying taxes on cement, steel, labour, service, GST, central excise and others being used in the construction of State capital Amaravati. The contractors working here pay income tax to the Centre. We have become like slaves. We can’t even stop the works as we will be at loss if we do so. However, good days will come and we will recover every single penny with interest,” he said. He also added that he would review the status of the land allocations made to various central institutions and other firms, and cancel the allotment if they don’t start construction after reminders.
The Chief Minister also took potshots at his Telangana counterpart K Chandrasekhara Rao for failing to take forward the development done by the TDP in Hyderabad. “Hyderabad is a golden goose. However, the rulers now have failed to utilise the financial resources generated from the robust infrastructure. Yet, KCR keeps criticising me for construction of the great city. Even the Opposition parties here are unable to digest the glory of Amaravati,” he said.
Explaining how difficult it was for the government to get first movers start operations in the capital, Naidu cited the example of the flight to Singapore from Vijayawada. “We gave Rs 1,000 cr worth of land for airport expansion and the Centre was not willing to come forward to contribute to the operation of international flights from here. Then, we announced that we will provide Viability Gap Funding (VGF). Even then the Customs department said that the Airports Authority of India (AAI) has to pay them establishment charges and the AAI wasn’t ready due to various reasons. Then, the State government said it would provide for the costs, including the salaries of the staff. That was when the flight services were able to be inaugurated,” he said. He added that 40 per cent of the first flight from Vijayawada to Singapore, scheduled to start from December 4, has been booked so far.
Naidu further said that the State government has a two-fold strategy to repay the loans taken for the construction of the capital. “People ask me how I plan to repay the money borrowed. One, we have around 5,000 acres of land reserved for monetisation and two, we plan to create an economy. We will get GST from the facilities we create. However, a major share would go to the Centre. Creating infrastructure is not enough, it should also be sustainable,” he said.
The Chief Minister also said that efforts were being made to make Amaravati a carbon-neutral city and that the possibility of introducing electric vehicles and driverless buses was being examined. The Judicial Complex will also be tentatively ready by December 15, he added.
“The patch works will be completed by January 1. We will write a letter to the Chief Justice of High Court, inviting him for the inauguration,” he said. The foundation for the Iconic Bridge, proposed across River Krishna to connect Vijayawada and Amaravati, will be laid this month, the Chief Minister added.
Elaborating on the status of construction of the capital, Naidu said works worth of Rs 30,757 crore were in progress. “Projects worth of Rs 12,429 crore are in tendering stage and only Rs 4,930 crore works are in planning stage. We are building about 30 million square feet of building space. After seeing the development done so far, I have a sense of satisfaction,” he said.