Andhra Pradesh government has made crucial moves on the next capital of the state by announcing the first phase of land pooling. 17 villages of Guntur district are earmarked for this phase and government machinery has began work. However the entire process had run in to doldrums with the poor financial position of the state. The government is estimating Rs 75 lakh to Rs 1 crore per acre is required for the development of each acre of land, this is additional to the land pooling costs of 30000 acres involved.
Given the financial position of Andhra Pradesh, the state government could not afford such sum at this point. The limit for borrowings in a financial year for AP state is around Rs 20,000 crore and the government had already used about 9000 Crores of the limit. So even the borrowing option is ruled.
With options running out, the government has pinned hopes on the promised help by the Central government and funds which will be pooled by private cooperation as Naidu plans to get on with the development work through Public Private Partnership Model. It may be reminded that AP Bifurcation Act has promised the Central assistance for the capital city. One few of the occasions, the Center was saying if the state is ready with the land then it will sanction funds.
