India's Dream Of Building Its Own Singapore (Amaravati) May Have Just Hit a Dead End, thanks to Chandra Babu Naidu

[Gaali_Gottam_Govinda]

If politics is the fine art of weighing possibilities, then N Chandrababu Naidu is a past master. A chief minister for 14 years — 10 in undivided Andhra Pradesh and four since the bifurcation — Naidu stormed out of the NDA government at the Centre on March 16, possibly sensing an anti-incumbency mood in the state. His anguished reasoning, though, was different: the Centre had betrayed the state by refusing to grant special category status. It was enshrined in the Andhra Pradesh Reorganisation Act, 2014, as a compensation for losing the big, bright jewel of Hyderabad to Telangana. 

 

Could Naidu have overplayed his hand this time? Will his instinct for political survival further damage his plans for his dream capital, Amaravati, which he brands as India’s Singapore in the making? Amaravati is conceptualised as a 217 sq km greenfield capital city along the river Krishna. He has already got a Singapore consortium, comprising Ascendas-Singbridge and Sembcorp Development, as the master developer of the city through a Swiss Challenge bidding process, mainly to give Amaravati an international Branding

 

And the cost? Rs 45,000 crore, and that is a conservative estimate. The Andhra Pradesh Capital Region Development Authority (APCRDA) puts the figure at Rs 1.09 lakh crore in a projection that includes more ambitious infrastructure projects. The obvious question is, how will Andhra raise this humungous amount? And, more importantly, what effect will the exit of Naidu’s Telugu Desam Party (TDP) from the BJP-led NDA government have on the fund-raising prospects of Amaravati? 

 

To piece together this story, ET Magazine spoke to half a dozen officials in Amaravati and the nearby city of Vijayawada who are directly involved in the development of the capital city. The officials spoke on condition of anonymity and they made it clear that they did not want to be drawn into any political battle. 

Battlelines were being drawn in Delhi where the TDP followed the YSR Congress in submitting a notice in the Lok Sabha to move a no-confidence motion against the NDA government, taking the battle with the BJP out in the open. As the political drama unfolded in Delhi, APCRDA chief Sreedhar Cherukuri flew to Washington, DC, to push for a World Bank loan of $1 billion (Rs 6,500 crore), the finalisation of which has been delayed reportedly due to the Bank’s queries on land issues. 

Loan in the Balance 
Till now, what has come in handy for Amaravati is a loan of Rs 7,500 crore sanctioned by HUDCO. However, with the TDP-BJP face-off likely to escalate ahead of the 2019 polls — both the Lok Sabha election and the Andhra Pradesh assembly poll happen simultaneously — there’s a possibility that the Andhra Pradesh government’s bid for a HUDCO loan of Rs 24,000 crore for Amaravati, something that’s being negotiated now, may not come through easily. 

HUDCO is a central public sector enterprise under the administrative control of the Union Ministry of Housing and Urban Affairs. The state government is interpreting three words — “other essential infrastructure” — in Section 94(3) of the Andhra Pradesh Reorganisation Act, 2014, to make the Centre cough up for the development of the new capital city. The section says, “The Central Government shall provide special financial support for the creation of essential facilities in the new capital of the successor State of Andhra Pradesh including the Raj Bhawan, High Court, Government Secretariat, Legislative Assembly, Legislative Council, and such other essential infrastructure.” 

The Centre has asked the state how it can build a 217 sq km city with iconic buildings and expect the Centre to foot the bill for everything? The Centre has given Rs 1,500 crore in four tranches for building Amaravati as against Rs 11,602 crore demanded by the APCRDA. If another Rs 1,000 crore, given to the greater capital region — Guntur and Vijayawada cities — is considered, the Centre’s grant for Amaravati as of today stands at Rs 2,500 crore. 
 

NITI Aayog has given its nod for another Rs 1,000 crore, and the announcement is expected anytime soon, taking total Central grants to Rs 3,500 crore. As officials participating in the Centre-state negotiation process have confirmed, the Centre would not have given more than Rs 3,500 crore for Amaravati even if it had granted a special category status to the state. 

 

The Centre says that giving such a status does not arise after the 14th Finance Commission, which increased the state’s share of Central taxes to 42% from 32% earlier. Amaravati’s economics, from Day 1, rested on setting aside 4,000 acres of developed land (out of 55,000 acres) for future monetisation, a typical real estate formula. 

 

A special category status, however, would have elicited greater interest from investors, as it would have meant tax exemptions, including income-tax holiday. This could have attracted corporate biggies. A handful of prominent companies and institutions such as HCL Technologies Ltd, SRM University and Vellore Institute of Technology have come up in Amaravati, but Naidu’s dream project would have stood out if multinational corporations shifted their base from Hyderabad to Amaravati. Clearly, for the Microsofts and Googles of the world, that’s not on their agenda, at least for now. 

 

 

[ARYA]

very sad..

[Gaali_Gottam_Govinda]

5 minutes ago, ARYA said:

very sad..

 

Building a capital right in one of the most fertile lands in the country.......... This will be Babu's biggest political utter flop in his career.......... Looks like he didn't really learn any lessons since YSR kicked him out since 2004.

 

Jagan is now following in the same footsteps of his father........ Farmers anger ni cash cheskuni vachestadu 2019 lo.

[JambaKrantu]

10 minutes ago, Gaali_Gottam_Govinda said:

 

Building a capital right in one of the most fertile lands in the country.......... This will be Babu's biggest political utter flop in his career.......... Looks like he didn't really learn any lessons since YSR kicked him out since 2004.

 

Jagan is now following in the same footsteps of his father........ Farmers anger ni cash cheskuni vachestadu 2019 lo.

Aite Jaggadu confirmeda 2019 lo..

[Satakarni_bali]

23 minutes ago, Gaali_Gottam_Govinda said:

If politics is the fine art of weighing possibilities, then N Chandrababu Naidu is a past master. A chief minister for 14 years — 10 in undivided Andhra Pradesh and four since the bifurcation — Naidu stormed out of the NDA government at the Centre on March 16, possibly sensing an anti-incumbency mood in the state. His anguished reasoning, though, was different: the Centre had betrayed the state by refusing to grant special category status. It was enshrined in the Andhra Pradesh Reorganisation Act, 2014, as a compensation for losing the big, bright jewel of Hyderabad to Telangana. 

 

Could Naidu have overplayed his hand this time? Will his instinct for political survival further damage his plans for his dream capital, Amaravati, which he brands as India’s Singapore in the making? Amaravati is conceptualised as a 217 sq km greenfield capital city along the river Krishna. He has already got a Singapore consortium, comprising Ascendas-Singbridge and Sembcorp Development, as the master developer of the city through a Swiss Challenge bidding process, mainly to give Amaravati an international Branding

 

And the cost? Rs 45,000 crore, and that is a conservative estimate. The Andhra Pradesh Capital Region Development Authority (APCRDA) puts the figure at Rs 1.09 lakh crore in a projection that includes more ambitious infrastructure projects. The obvious question is, how will Andhra raise this humungous amount? And, more importantly, what effect will the exit of Naidu’s Telugu Desam Party (TDP) from the BJP-led NDA government have on the fund-raising prospects of Amaravati? 

 

To piece together this story, ET Magazine spoke to half a dozen officials in Amaravati and the nearby city of Vijayawada who are directly involved in the development of the capital city. The officials spoke on condition of anonymity and they made it clear that they did not want to be drawn into any political battle. 

Battlelines were being drawn in Delhi where the TDP followed the YSR Congress in submitting a notice in the Lok Sabha to move a no-confidence motion against the NDA government, taking the battle with the BJP out in the open. As the political drama unfolded in Delhi, APCRDA chief Sreedhar Cherukuri flew to Washington, DC, to push for a World Bank loan of $1 billion (Rs 6,500 crore), the finalisation of which has been delayed reportedly due to the Bank’s queries on land issues. 

Loan in the Balance 
Till now, what has come in handy for Amaravati is a loan of Rs 7,500 crore sanctioned by HUDCO. However, with the TDP-BJP face-off likely to escalate ahead of the 2019 polls — both the Lok Sabha election and the Andhra Pradesh assembly poll happen simultaneously — there’s a possibility that the Andhra Pradesh government’s bid for a HUDCO loan of Rs 24,000 crore for Amaravati, something that’s being negotiated now, may not come through easily. 

HUDCO is a central public sector enterprise under the administrative control of the Union Ministry of Housing and Urban Affairs. The state government is interpreting three words — “other essential infrastructure” — in Section 94(3) of the Andhra Pradesh Reorganisation Act, 2014, to make the Centre cough up for the development of the new capital city. The section says, “The Central Government shall provide special financial support for the creation of essential facilities in the new capital of the successor State of Andhra Pradesh including the Raj Bhawan, High Court, Government Secretariat, Legislative Assembly, Legislative Council, and such other essential infrastructure.” 

The Centre has asked the state how it can build a 217 sq km city with iconic buildings and expect the Centre to foot the bill for everything? The Centre has given Rs 1,500 crore in four tranches for building Amaravati as against Rs 11,602 crore demanded by the APCRDA. If another Rs 1,000 crore, given to the greater capital region — Guntur and Vijayawada cities — is considered, the Centre’s grant for Amaravati as of today stands at Rs 2,500 crore. 
 

NITI Aayog has given its nod for another Rs 1,000 crore, and the announcement is expected anytime soon, taking total Central grants to Rs 3,500 crore. As officials participating in the Centre-state negotiation process have confirmed, the Centre would not have given more than Rs 3,500 crore for Amaravati even if it had granted a special category status to the state. 

 

The Centre says that giving such a status does not arise after the 14th Finance Commission, which increased the state’s share of Central taxes to 42% from 32% earlier. Amaravati’s economics, from Day 1, rested on setting aside 4,000 acres of developed land (out of 55,000 acres) for future monetisation, a typical real estate formula. 

 

A special category status, however, would have elicited greater interest from investors, as it would have meant tax exemptions, including income-tax holiday. This could have attracted corporate biggies. A handful of prominent companies and institutions such as HCL Technologies Ltd, SRM University and Vellore Institute of Technology have come up in Amaravati, but Naidu’s dream project would have stood out if multinational corporations shifted their base from Hyderabad to Amaravati. Clearly, for the Microsofts and Googles of the world, that’s not on their agenda, at least for now. 

 

 

pulkas and bodi gadi valla public sastunnaru, okadu dream machine digadu inkodu ego taggadu  

[sid_22]

6 minutes ago, JambaKrantu said:

Aite Jaggadu confirmeda 2019 lo..

Any doubts???..... 2014 lo even at the heights of Modi wave & with PK's help..... Jagan still managed to get 67 seats and 2% less vote share than TDP.

[Gaali_Gottam_Govinda]

17 minutes ago, JambaKrantu said:

Aite Jaggadu confirmeda 2019 lo..

 

2019 lo Reddy rajyam confirmed in telugu states ani @Android__Halwa telling.

 

 

[JambaKrantu]

9 minutes ago, sid_22 said:

Any doubts???..... 2014 lo even at the heights of Modi wave & with PK's help..... Jagan still managed to get 67 seats and 2% less vote share than TDP.

You are right.. Aa angle lo chooste ee sari no modi wave, no PK support, capital and jobs dreams to visigipoyina public - it will be an uphill battle for TDP unless things change rapidly in the next one year..

[JambaKrantu]

4 minutes ago, Gaali_Gottam_Govinda said:

 

2019 lo Reddy rajyam confirmed in both states ani @Android__Halwa telling.

 

 

TG lo kashtam man.. No proper leader in TG congress like YSR or Jagan.. Also TRS meeda anta anti incumbency ledu..KCR andarini kalupukupoye policy follow avutunnadu.. look at his cabinet, almost 5 ministers are Rs..

[Vaampire]

37 minutes ago, ARYA said:

very sad..

Papam.. lands kondaru istam ganey govt ki icharu. Inkodari daggara balavantham ga lakunaru... 

ee chekka cheebbnnn gaadu mathram amaravathi ani dream choopisthunnadu. Reality lo mathram inko 20 yrs pattela undi.. 

appatiki ee poor farmers ko kastaley.. aa tharuvatha kastalu alabatu ayipothayi.

[Vaampire]

15 minutes ago, sid_22 said:

Any doubts???..... 2014 lo even at the heights of Modi wave & with PK's help..... Jagan still managed to get 67 seats and 2% less vote share than TDP.

Naaku doubt ey. Jaggadiki pedha enemey vaadey... andariki kalupukoni poye rakham kaadhu. 

[TampaChinnodu]

Quote

The Centre has asked the state how it can build a 217 sq km city with iconic buildings and expect the Centre to foot the bill for everything? 

 

[JambaKrantu]

1 minute ago, Vaampire said:

Naaku doubt ey. Jaggadiki pedha enemey vaadey... andariki kalupukoni poye rakham kaadhu. 

He will learn man.. Ippudu last time unnanta over confident ga ledu.. Already Christianity macha cheripeyyataniki ee ooriki vellina aa oori temple or matam ki potunnadu..

[Gaali_Gottam_Govinda]

14 minutes ago, Vaampire said:

Papam.. lands kondaru istam ganey govt ki icharu. Inkodari daggara balavantham ga lakunaru... 

ee chekka cheebbnnn gaadu mathram amaravathi ani dream choopisthunnadu. Reality lo mathram inko 20 yrs pattela undi.. 

appatiki ee poor farmers ko kastaley.. aa tharuvatha kastalu alabatu ayipothayi.

90's lo Hitech City develop chesinappudu ilanti problems emi levu.......... dry lands, raalu rappalu & water nil.

Vizag, Kurnool or some dry area lo capital petti unte would have been ideal location........ Vijayawada - Amaravati capital decision was pure caste politics anthe. 

[Android_Halwa]

35 minutes ago, Satakarni_bali said:

pulkas and bodi gadi valla public sastunnaru, okadu dream machine digadu inkodu ego taggadu  

digudu kaadu kaka...motham public ni kuda ekkichindu a dream machine ki..