VIJAYAWADA: Chief Minister YS Jagan Mohan Reddy on Monday urged Prime Minister Narendra Modi to approve the Rs 55,657 crore Revised Cost Estimates (RCE) of the Polavaram project at the 2017-18 price level at the earliest. During an hour-long meeting with the Prime Minister on the first day of his two-day visit to New Delhi, the Chief Minister discussed various issues pertaining to the state.
Elaborating on Polavaram, he said the project cost has increased significantly due to the acquisition of land as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. He said the acquisition of land and the rehabilitation and resettlement (R&R) of project oustees account for a major portion of Polavaram expenditure.
Further, drinking water is part of the irrigation component of the project. Though the RCE of Polavaram, which is a national project, was approved by the Central agencies, the same was rejected by the ministries concerned stating that the funding would be limited to the irrigation component only, that too excluding drinking water component of the multipurpose project.
Stating that any delay in clearance of the RCE would result in further escalation of Polavaram cost, Jagan requested Modi to direct the Ministry of Finance to approve the Rs 55,657 crore RCE at the earliest and clear the pending bills of the project to the tune of Rs 2,100 crore.
He informed the Prime Minister that the NBC (net borrowing ceiling) of AP for 2021-22 was originally fixed at Rs 42,472 crore as per the Fiscal Responsibility and Budget Management (FRBM) norms.
The Department of Expenditure, Ministry of Finance, had subsequently informed the state that Rs 17,923.24 crore was to be adjusted against the NBC fixed for the financial year on account of the so-called over borrowing of the state during earlier years of the previous government in the state.
Jagan emphasised that the so-called over-drawal was only borrowing and not a grant and the borrowing is also being serviced without any default. He requested the Prime Minister to restore the state’s NBC to the original level of Rs 42,472 crore.
Explaining the financial crisis being faced by the state since 2019-20 due to Covid-19, Jagan said the economic slowdown had its impact on AP in 2019-20 and it had received only Rs 28,242 crore against its tax share of Rs 34,833 crore.
Help execute Bhogapuram airport, Centre urged
Chief Minister YS Jagan Mohan Reddy met Minister for Civil Aviation Jyotiraditya Scindia in New Delhi on Monday and sought his cooperation for early completion of the greenfield international airport at Bhogapuram in Vizianagaram district. “Due to geographical and strategic limitations, the airport in Visakhapatnam cannot be expanded. Hence, a greenfield airport has been proposed at Bhogapuram,” Jagan said, urging the Centre to renew the site clearance approval of the airport project
Approve Rs 55,657 crore RCE of Polavaram: Jagan to Centre
In the financial year 2020-21, the state had lost Rs 7,780 crore of its tax share and revenue to the tune of Rs 7,000 crore from other sources. At the same time, Rs 8,000 crore was spent to combat the Covid-19 pandemic. The government continued its Direct Benefit Transfer scheme under various welfare initiatives for the benefit of poor. It has laid emphasis on health, education, agriculture, housing and infrastructure to strengthen the state’s economy, he explained.
The total revenue deficit of the state for 2014-15 was Rs 22,948.76 crore and the amount released by the Centre was only Rs 4,117.89 crore. He urged the Centre to release the remaining Rs 18,830.87 crore to support the state.
Jagan also said Rs 6,284 crore is receivable by the Andhra Pradesh Power Generation Corporation Limited (APGENCO) from the Telangana State Distribution Utilities and Telangana DISCOMs had recognised the amount as payables, but are yet to make the actual payment. He appealed to the Prime Minister to direct the authorities concerned to settle the dues at the earliest so that the AP power sector can be financially strengthened.
The Chief Minister also urged Modi to renew the approval of site clearance for the greenfield international airport at Bhogapuram. With regard to setting up an integrated steel plant in Kadapa district, he said MECON, a Government of India undertaking, has not yet concluded its report pertaining to its feasibility. MECON should be asked to expedite it. The state government has come up with YSR Steel Corporation Limited for establishing the steel plant.
For the supply of iron ore for the steel plant, proposals have been submitted to the Union Ministry of Mines to reserve areas containing iron ore to the AP Mineral Development Corporation Ltd.
Such reservation is permitted by the extant legal framework. However, the Ministry of Mines has suggested the auction route to secure supply of iron ore. The auction route will minimise the possibility of availability of mineral at a low cost, threatening the feasibility of the project, he said and urged the Prime Minister to direct the Mines Ministry to reserve areas to APMDC as it is of vital importance for the future of the steel plant.
Jagan also pointed out that there is inadequate coverage of beneficiaries under the National Food Security Act and a large number of needy and deserving people are being uncovered now.