AP pins big hopes on Arun Jaitley for funds
The State government is readying proposals to get financial nod from Centre for speeding up grounding of construction works of new capital city Amaravati when it has completed one year since PM Modi laid the foundation stone.
CONSTRUCtION OF AMARAVATI
- Union Finance Minister Arun Jaitley’s set to visit the capital city on October 28 to inaugurate financial and administrative cities
- Sources say State govt estimated that Rs 35,000 crore is required for developing the capital city
- State govt is also mulling to pledge lands to secure loans from World Bank, but Left parties objected to it
Amaravati: The State government is readying proposals to get financial nod from Centre for speeding up grounding of construction works of new capital city Amaravati when it has completed one year since PM Modi laid the foundation stone. According to official source, the State government is all set to represent the Union Finance Minister Arun Jaitley on State’s financial issues especially funds allocation for capital city construction when he visits the Amaravati capital region for laying the foundation stone for Finance and Administrative cities which is scheduled to be held on October 28.
The reliable sources said that formally the Finance Minister tour has been okayed but it is yet to be confirmed officially and he is expected to announce financial assistance for Amaravati capital city construction in the proposed venue and explain the highlights of the special package. Earlier, the Centre has released Rs 2,500 crore for capital city construction works and the State government spent the money for land pooling and other infrastructure facilities. Recently the State government estimated Rs 35,000 crore is required for the infrastructure needs in the capital city.
The government also made plans to spend 30 per cent of funds providing from its own and remaining funds would be borrowed from financial agencies along with Centre’s help in the next four years. The State government has submitted reports to Centre on various pending issues including fiscal deficit.
Mainly, Finance Minister may announce funds allocation for capital city construction and other sops from Centre on his visit to new capital. Now the State needs not only financial support from Centre but also seeking rules relaxation for getting loans from foreign agencies. The CRDA’s one billion loan was confined only to half of the amount and Centre has not given nod for full loan amount.
The CRDA directly approached the World Bank for drawing loans in the name of capital construction. The State government is also facing challenges from the present rules of the Centre for getting loans from outside the country. The State government has sought the Centre to change the Fiscal Responsibility and Budget Management (FRBM) rules and enhance credit facility from 3 to 3.5 per cent. By which, the State can get another Rs 4,000 crore additionally from foreign finance agencies.
Besides, the State government has almost finalised plans to mortgage the lands which were collected from landowners under Land Pooling Scheme (LPS). As per the sources, the State government has already discussed the issue with various financial agencies for getting Rs 40,000 crore loan.
In fact, even his last press conference, State Finance Minister Yanamala Ramakrishnudu also confirmed the CRDA could get funds for capital construction by mortgaging lands without any challenges when it has huge chunk of land bank. But now the Left parties are opposing the proposal and raised several apprehensions’ and rights of the move of the government.
