Andhra Pradesh: Centre not to offset deficit

Hyderabad: The Centre has questioned the Andhra Pradesh government’s rationale behind asking it to offset its revenue deficit of '16,000 crore while continuing the free power scheme to the farm sector and waiving crop loans.

It has made it clear that it cannot offset losses running into thousands of crores that occurred due to implementation of election promises like free power and waiver of farm loans since other states would also demand similar sops, which the Centre cannot fulfill.

The Central government has also reportedly rejected AP’s project report for taking up developmental works for the new capital at Tullur village in Guntur at a cost of '1,000 crore and has asked for a more detailed project report.

The AP government had sent a report citing taking up of drainage, roads and other works, which the Union urban development ministry wasn’t satisfied with and sought a much more detailed report including the construction of new buildings, areas and other developmental works etc.

Sources said following this, the state government has sent another detailed project report in tune with the Centre’s guidelines for grant of '1,000 crore.

“Union urban development ministry officials rejected AP’s report and sought a much more detailed project report which would include buil-dings to be constructed with areas, roads, drain-age and other minute details for grant of '1,000 crore. The government has complied with the request,” a source said.

To ensure that AP gets more funds for various developmental works, Union minister M. Venkaiah Naidu has asked his ministry to ensure grants to the Capital Region Development Authority comprising Vijayawada, Guntur, Tenali and Mangalagiri instead of just the capital region of Tullur.

If AP  gets the special category status, which is presently applicable only to the Northeastern states and Jammu & Kashmir, it will get 90 per cent grants instead of loans for centrally aided projects and external aid projects.