Former bureaucrat warns of regional imbalances as funds for Amaravati project may hinder development in other districts of Andhra Pradesh

E.A.S. Sarma warns of regional imbalances as funds for Amaravati project may hinder development in other districts.

Social activist and former bureaucrat E.A.S. Sarma has appealed to Chief Minister N. Chandrababu Naidu to ensure that the pumping of colossal amount of funds into the Amaravati capital project will create regional imbalances, particularly in the districts of North Andhra and Rayalaseema.

Referring to the statements of Minister for Municipal Administration P. Narayana that according to current estimates, the amount of money required to be spent on Amaravati would be much higher than the previous estimates of ₹41,000 crore, Mr. Sarma said that this indicates that the State government was planning to spend over ₹50,000 crore on Amaravati.

On the other hand, the Union Finance Minister had announced that financial assistance of ₹15,000 crore would be extended to the Amaravati project through international funding agencies like the World Bank. The Finance Minister had, however, clarified that the financial assistance would be given as loan to the State government.

Mr. Sarma noted that the debt burden on loans taken from international funding agencies would be high as the loan would be in the form of foreign exchange. While the debt burden of the capital project would be more than ₹50,000 crore, the responsibility of its repayment would fall on the people of the entire State.

The spending of funds to the tune of ₹50,000 crore in a single district, in three months, would hinder development in other districts. There is a possibility of scarcity in the funds promised to North Andhra and Rayalaseema, causing regional imbalances. The former bureaucrat noted that the State government seems to be in favour of giving lands to foreign companies and develop Amaravati with their assistance. There is a possibility of the government giving lands to those companies at concessional rates in the initial phase, to enable them make profits. The burden of these concession would also fall on the people of the State.

Mr. Sarma noted that according to Section 46 of the AP Reorganisation Act, 2014, the Centre had promised special financial package to the backward districts of North Andhra and Rayalaseema. It had also given an assurance on the Polavaram project. The Polavaram project had displaced thousands of tribal people. The project would provide maximum benefit of irrigation to the farmers of the Krishna and the Godavari regions. North Andhra districts would not benefit much from the project.

He wondered what could be the reason for the Union Finance Minister giving a definite commitment only on Amaravati project, while failing to make a statement on extending financial assistance for the Polavaram project. She had also failed to give clarity on the type of financial assistance to be extended for the backwards districts of North Andhra and Rayalaseema.