Yanamala justifies TDP arrears to Industrialists

The TDP Government in Andhra Pradesh has released a whopping Rs 2,060 crore in just one month as arrears of industrial incentives pending to units of TDP ministers, MLAs and MPs.

Companies owned by Mr Pulla Rao received Rs 3, 8173,830. The amount was credited as incentives for Siva Swathi Textiles at Ganapavaram village of Nadendla Mandal in Guntur district and Swathi Cotton in Veluru village of Chilakaluripeta in Guntur district.

According to officials, in the two lists combined, Mr Pulla Rao’s companies received around Rs 10 crore. Sree Rayalaseema Alkalies and Allied Chemicals, belonging to ex- minister TG Venkatesh located at Gondiparla village in Kurnool district got Rs 25 crore as arrears. Another major beneficiary is the NSL group of textiles companies of Prabhakar Rao of Nuzieedu seeds that got Rs 47.61 crore.

In the cement sector, the biggest beneficiary is Dalmia Cement that got Rs 71 crore. Revali Spinners of Tanuku in West Godavari district received Rs 2.93 crore. The company is owned by Vanka Ravindranath who had contested as an MP from Narasapuram on an YSRC ticket.

Interestingly, the government credited the arrears for Revali Spinners in a State Bank account in the Tanuku branch. The amount was received Rs 3, 76, 43,855 as incentives for Bala Balaji Textiles. A total of Rs 6, 69, 70,635 was credited in one account for the two companies.

The Agro, cement and pipe companies owned by Nandyal MP S.P.Y. Reddy also got around Rs 25 crore as incentives. Officials said that the government usually sanctions around Rs 150 crore in the Budget for incentives, however, for the first time, the government sanctioned so much that too when the state is facing a financial crunch.

AP Finance Minister Yanamala Ramakrishnudu justified the arrears paid to industrialists and said arrears pending since 2004 were cleared in an effort to have a zero slate for the industries.