Rs 4.5 Lakh Crore package for AP

Posted : August 30, 2014 at 7:18 pm IST by ManaTeluguMovies

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The Sivaramakrishnan Committee, appointed by Centre to find suitable capital for Andhra Pradesh, has recommended Rs 4.5 Lakh Crore financial package from Centre for the state to build its capital, infrastructure. In its 187-page report submitted to Union Home Minister Rajnath Singh, the committee made it clear that Rs 4.5 Lakh Crore is needed to meet the promises made in the AP Reorganization Act 2014.

State government is expecting to consolidate 1,458 acres of land (to be potentially scaled up to 5,000- 10,000 acres) for a new state capital in the Vijayawada- Guntur-Tenali- Mangalagiri (VGTM) region. However, the Committee opined that land acquisition will be the biggest problem. According to its report, the basic Land Acquisition process would take between 3 to 4 years to implement, without any administrative delays.

The range of effective costs of land accruing to government range from Rs 1.96 crores to 8.49 crores per acre (net developed area) indicating the need for a careful analysis before the choice of a greenfield site or areas where land costs are expected to be very high. The report said that it costs Rs 10,500 Crore alone for construction of buildings for new capital.

The Committee also mentioned that for the execution of two largest projects – the Visakhapatnam-Chennai industrial corridor [likely to be part of East Coast Industrial Corridor (ECIC)] and the proposed IT Investment Region and Electronic Manufacturing Clusters- will require extensive mobilisation of capital and private investor interest. On whole, Sivaramakrishnan Committee report said AP needs Rs 4.5 Lakh Crore as assistance from Union Government.