YCP MP Officially Confirms AP Crisis

The YCP government has pressed the panic button after the party MP Mithun Reddy revealed that the state was facing financial unviability. During his speech in the Parliament, the MP stressed that the state was staring at a financial crisis with meagre allocations and many unkept promises.

Since the state was bifurcated, there has been a huge difference in the per capita income of Telangana and Andhra Pradesh, standing at Rs 15,454 and Rs 8,977 respectively. Even the revenue generating sources of both the states have a huge difference, he said and urged the Centre to accord Special Category Status to AP as it needed the financial boost.

He sought financial assistance from the Centre as the state was reeling under crisis and appealed to the Centre to fulfill all the provisions mentioned in the AP Reorganisation Act without any further delay. It was said that the promises in the Act would be fulfilled in 10 years and already 8 years has passed away, he reminded.

Polavaram project

The YCP MP made an attempt to criticize the attitude of the Centre towards Andhra Pradesh and related an interesting anecdote wherein intellectuals in a kingdom ended up giving the picture of a cat, while promising to gift the portrait of a tiger to the people by implementing several cuts like shortening the tail of the tiger, reducing the number of stripes on its body and also the size of its paws.

He tried to emphasize that the Centre wanted to give abundantly to the residual state but ended up giving only a measly amount as compensation for the ‘unscientific bifurcation’.

The MP reminded that the Centre promised to grant special package to the backward districts in AP on the lines of Bundelkhand but nothing was done so far. Further, the ministers say that they have 2 more years to meet the 10-year deadline and this is not acceptable, he said.

Mithun Reddy also spoke of unfulfilled promise regarding Polavaram project which was designed to provide 194 tmcft of water to farmers. The execution of the project began even before the AP Reorganisation Act came into existence.

The Centre clearly said that it was a national project and that the central authorities would get all clearances including environment, forest and also look into the rehabilitation of the evacuees which means it has to bear all the expenses towards the project.

After sometime, the Centre separated the drinking water component from the irrigation water supposed to be supplied by the project and this is not fair. This separation has not been done in no other national project in the country and this is unfair, he said.

The technical advisory committee had approved for granting Rs 55,656 crore towards the project but later went back on the estimate, he reminded and urged the Centre to stick to the figures and release the funds.

‘Bifurcation thrust on us’

Former PM Manmohan Singh and Prime Minister Narendra Modi too promised to come to the rescue of Andhra Pradesh after bifurcation of the state but nothing has materialised completely, In fact, bifurcation was thrust upon the AP people, he said. Probably, in no other aspect had the NDA and UPA governments been on the same page except AP bifurcation, he pointed out.

On the National Food Securities Act, the MP said that the number of beneficiaries being covered under the scheme was much less in Andhra Pradesh, both in urban and rural areas, compared to other states.

While nearly 76% of rural population is being covered under the scheme in neighbouring states, despite having a less GSDP, only 61% of the rural population is being covered under the public distribution scheme in our state, he said.

He also urged the Centre not to privatize Vizag Steel Plant but allocate captive iron ore mines, as it would definitely become an asset to the Centre and state, if financial restructuring is done.

He also sought release of Rs 1,700 crore dues towards civil supplies.

Black hole in AP

Reacting to the MP’s speech, Opposition parties said that it is time the Centre declare Financial Emergency in the state by promulgating Article 360. Welfare without development will spell doom to the state and does not the CM know about it, the opposition leaders asked.

The MP’s revelation is equal to the YCP government accepting that the state is in doldrums, TDP spokesperson Pattabhi said. He said that AP seems to have a black hole and there is no clue where all the revenue being generated through increased taxes and loans being brought from even foreign organisations was going, he added.

As per the records, the state has sufficient income to meet the expenditure as the YCP government is focused only on welfare but not development, he pointed out.

Significantly, even the state government employees are on a warpath demanding that the 11th PRC be implemented immediately.

It is utter chaos in the state with every sector going awry and haywire due to the financial crisis, felt economic experts.