VIJAYAWADA: Stating that relocation of the capital from Amaravati defies logic and would have far-reaching legal and financial consequences, BJP MP YS Chowdary (Sujana Chowdary) shot off a letter to Chief Minister YS Jagan Mohan Reddy on Tuesday. He cautioned that in the event of moving the executive capital to Visakhapatnam, the already-burdened State exchequer may have to pay Rs 4 lakh crore towards compensation and damages incurred by the stakeholders.
Addressing the CM, he cautioned that the government would have to spend Rs 5.6 crore, as per the provisions of Land Acquisition, Rehabilitation and Resettlement Act, 2014, for every acre of land procured. This amounts to Rs 1.89 lakh crore excluding the 12 per cent of interest to be paid from the date of award till payment is completed, he cautioned. In addition to this, those who invested in Amaravati and bought lands may seek compensation which could be around Rs 2 lakh crore.
“Therefore, in the event of shifting of capital, the government may have to pay about Rs 4 lakh crore as compensation to stakeholders. The state economy, which is already fragile, will be destroyed beyond repair...This will clearly lead to a financial emergency and it will be impossible for the State to raise any loan as its credit rating will be in the negative based on perceived liabilities,” he argued.
He also found fault with the government’s argument that the State can’t afford to spend Rs 1 lakh crore on a greenfield capital. “Amaravati, in its present shape, is a full-fledged functional capital and by spending Rs 3,000 crore the balance minor pending works can be completed, and hence shifting the capital at this juncture is clearly unwarranted, illogical and unjustified,” he said.