Center’s Deceptive Package – Explained

Finance Ministry had let out the detailed statement of Central Development Package to Andhra Pradesh last evening and here we see how the package is deceptive and offers nothing special to the truncated state. This Package can be no way a replacement to the Special status promised to the state.

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The statement did not give any clarity about the Revenue deficit of Andhra Pradesh. We all know that there is a difference between the Union and State governments regarding the numbers. The statement just said 3979.5 Crore is paid so far and the rest will be paid very soon in annual installments.

The Center had decided that it will only assist 3500 Crore for the Capital Construction. Out of this, 2500 Crore is already paid they say. This also included 1050 Crore paid for Underground drainage system in Vijayawada and Guntur. Only 1000 Crore more have to be paid going further. So, 3500 Crore for Delhi range Capital promised by Narendra Modi.

Polavaram Project Complete Assistance is also a farce. The Center promises to pay only the irrigation component of the project and that to according to the estimates of 2010-11. The cost estimates have gone up several times more since then. Further center will not help for the Relocation and Rehabilitation which run into more than 20000 Crore. It will also not cover the power project in Polavaram.

Center talks about several educational institutions, airports, Highways, Metro Rail Projects etc. being set up in the state but talks nothing of the allocation of funds for their completion. And the alternative to Special Status, covering the benefit through Externally Aided Projects is also a big farce because there is no mechanism to quantify the benefits of Special Status as no one would know what investments the state would get if there is Special Status. Center would wash off its hands by a nominal amount