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TIRUPATI: Reiterating his demand for Special Category Status (SCS) to the State, apart from fulfilling all the assurances made under the Andhra Pradesh Reorganisation Act (APRA), Chief Minister YS Jagan Mohan Reddy on Sunday emphasised the need for working towards a mechanism that ensures an amicable and time-bound settlement of issues that exist between the state and the Centre and among southern states.

He urged the Centre to set up a committee under the chairmanship of Home Minister Amit Shah to settle all the issues in a time-bound manner.

Speaking at the 29th Southern Zonal Council (SZC) meeting held in the temple town under the chairmanship of Amit Shah, the Chief Minister raised the issue of Polavaram Irrigation Project and other promises made to AP during bifurcation of the state.

Post bifurcation of the state in 2014, the newly formed state of Telangana and the successor state of Andhra Pradesh have several issues that are yet to be resolved. Long pendency of these issues will not only force the states to endure a huge economic loss but also have a potential to strain relations between the two states. Hence, the Centre should show a suitable solution at the earliest to address all the issues,” Jagan asserted.

The bifurcation had caused immense hardship to the successor state of AP. The ‘disastrous’ consequences of bifurcation are evident from the fact that the first full financial year 2015-16 after the division.

Jagan raises Polavaram funding, APRA issues in Southern Council meet

“The per capita own revenues of Telangana were Rs 15,454 as against Rs 8,979 of Andhra Pradesh. This figure alone conveys the distress of AP,” Jagan observed. Listing out commitments made to the state by the Centre at the time of bifurcation, he said.

Polavaram was declared a national project. Due to delay in the project execution and payment of higher compensation for land acquisition as per provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, there has been a significant cost overrun of Polavaram.

The Technical Advisory Committee and the Revised Cost Committee have accorded approvals for the enhanced project cost, he explained. Jagan sought full Central funding for the project completion as per the APRA.

Jagan reminded that the then Prime Minister had made an assurance on the floor of Rajya Sabha on February 20, 2014 that the resource gap of the successor state of AP occurring for the period between the appointed date and the date of acceptance of the 14th Finance Commission recommendations by the Government of India has to be compensated through the regular Union Budget for the financial year 2014-15.

“Though the resource gap is not a word defined anywhere, given the reference to the Finance Commission, which estimates the quantum of revenue deficit, it is amply clear that it is nothing but revenue deficit,” he stated.

“As per accounts for the 2014-15 fiscal, audited by CAG, the revenue deficit for the period from June 2, 2014 to March 31, 2015 was Rs 16,078.76 crore. In addition, there are other financial obligations pertaining to that period, which have not been discharged, which rightfully needs to be considered as part of resource gap for that financial year. Thus, the total resource gap for that fiscal was Rs 22,948.76 crore,” he added.

The Centre, however, subsequently introduced a new concept of ‘Standardised Expenditure’ and conveyed that its liability to compensate the state is only to the tune of Rs 4,117.89 crore, Jagan said and urged Amit Shah to revisit the issue to find a suitable solution at the earliest.

Coming to the issue of settlement of power dues between Telangana and Andhra Pradesh, Jagan said that Rs 6,112 crore is receivable by the Andhra Pradesh Power Generation Corporation Limited from Telangana Discoms.

This amount pertains to power supplied by APGENCO to Telangana Discoms from the date of state bifurcation to June 10, 2017. “Other assurances such as completion of eight infrastructure projects, establishment of 11 institutions of national importance under Schedule XIII of the AP Reorganisation Act by 2024, sanction of special development package for backward districts on the lines of Bundelkhand special package have not been fulfilled at all,” he pointed out.

Fulfil all assurances given to Andhra Pradesh: CM Jagan

The Centre should fully fund the Polavaram Irrigation Project, which is a national project, without limiting its responsibility of the plan execution at 2013-14 price level, CM Jagan said

A sum of Rs 6,112 crore is receivable by APGenco from Telangana Discoms for power supplied by it to them from the date of state bifurcation to June 10, 2017

Assurances such as completion of 8 infrastructure projects, establishment of 11 institutions of national importance under Schedule XIII of the AP Reorganisation Act by 2024, sanction of package for backward districts have not been fulfilled at all

The division of assets valued at Rs 1,42,601 cr belonging to institutions listed under Schedules IX and X and those not mentioned in the APRA has not happened so far hampering their functioning

The number of people covered under Public Distribution System in AP is 2.68 crore, which is highly inadequate as the state government is covering close to 56 lakh families additionally