AP’s claims on investment fall flat
Gets Only Rs 6k Cr Though MoUs Worth Rs 6,00,000 Cr Were Signed In Last 2 Yrs
The tall claims of the AP government on huge foreign investments in the state notwithstanding, Andhra Pradesh has not received more than Rs 6,000 crore in the last two years.
The AP government entered into MoUs worth about Rs 6,00,000 crore in the last two years. The government expected more than Rs 50,000 crore investments from Japan and Rs 58,000 crore from China after a highpowered delegation headed by chief minister Chandrababu Naidu visited these countries. But in reality, the state has got less than Rs 6,000 crore investment so far.
After organising a partnership summit in Visakhapatnam, the state government claimed it would get over Rs 4.3 lakh crore worth investments but the euphoria failed to convert into reality.
Many multinational companies, which promised the moon, are yet to open up their pockets. During the summit, Australia-based Queensland Coal Corp agreed to set up a coal based power plant with over Rs 30,000 crore investment. But till date nothing concrete has taken place. Petrogas Pvt Ltd and Isomeric Holdings of Malaysia too promised huge investments in natural gas projects in the state.
Interestingly , most of the new investments in the last two years were concentrated in Sri City , an SEZ in Chittoor district.
Sarma cautions Naidu govt on Swiss Challenge
Pushing the senior officials involved in clearing the Swiss Challenge method for construction of the capital city into a corner, former IAS officer EAS Sarma has warned that all those violate various Acts and rules to please their political masters would face trouble in the coming days.
He said that officials should better use their wisdom and not rush to please their political masters. In a letter to chief secretary SP Tucker, Sarma expressed shock on giving 52 per cent stake to Singapore firms for investing Rs 300 crore while the state government is setting apart Rs 7,000 crore worth land as its share. “At this rate, the government should get 96 per cent and Singapore firms around 4 per cent since the land rate has been fixed at Rs 4 crore per acre,“ he observed. He said that chief secretary-headed infrastructure authority cannot be blind as provisions of the AP Infrastructure Development Enabling Act-2001 apply to this project.He said that under section 2(G) of the Act, a private sector participant is the one who has less than 49 per cent of equity share and in the latest case the rule has not been followed.
He further said that under sections 10 and 19 of the Act, the infrastructure authority should first review the Swiss Challenge proposal before seeking a counter proposal from other private parties interested in the project. “The chief minister is personally involved in the negotiations with Singapore companies. This goes counter to the letter and the spirit of the Act,“ reasoned Sarma.
He asked as to how the government had decided to hand over 1,690 acres of agricultural land to a foreign company which is prepared to invest little, but expect large returns without accepting commensurate risks. He asked the chief secretary as to how could the infrastructure authority allow CRDA to handle this proposal without going through the statutory procedure.