Jagan Reddy govt moves to scrap Amaravati capital region law

Our Bureau Vijayawada | Updated on January 13, 2020 Published on January 13, 2020

Andhra Pradesh CM Jaganmohan Reddy

Draft Act offers more sops to farmers, others who surrendered their land

In a move that will seal the fate of Amaravati as the capital of Andhra Pradesh, the Jaganmohan Reddy government plans to repeal the Andhra Pradesh Capital Region Development Authority (CRDA) Act, 2014.

Sources said all the Rules, notifications and Government Orders issued under the CRDA Act, which sought to develop some 33,000 acres in the capital region of Amaravati, would cease to exist.

The areas covered under the CRDA would be vested with the VGTM (Vijaywada-Guntur-Tenali-Mangalagiri) Urban Development Authority.

Farmers who contributed land to the Pooling Scheme, will get annuity benefits for another three years beyond the period promised. Additionally, they will get 200 square yards for every acre contributed, the sources said.

All the farmers and others who surrendered their land for the Pooling Scheme will be entitled to all rights “including but not limited to right of guaranteed developed or reconstituted plot.”

All the loans sanctioned to the Capital Region Development Authority and employees working for it will be transferred to VGTM Urban Development Authority. Some of the employees may be moved to other local bodies or government agencies.


Loan status

According to sources, all the loans taken by the CRDA would be transferred to VGMTUDA and the government would inform lenders about the change.

“The proposed Act that seeks to repeal the CRDA Act would assure lenders about the loans sanctioned. It will continue to act as the guarantor,” they said.

According to the draft Act, subscriptions to bonds and financial instruments shall be redeemed in accordance with the terms of the instruments. “It shall be open to the government to provide for consensual premature termination of the obligations arising from the instruments,” a source said.

The Government move comes in the face of former Chief Minister and TDP president N Chandrababu Naidu leading a protest urging the State government not to shift the Capital.

Several women and farmers as also workers and leaders of the Telugu Desam, the Janasena and the CPI have been protesting against the plan to shift the State Government’s executive offices to Visakhapatnam and the High Court to Kurnool. The protests have even turned violent at some places.


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Published on January 13, 2020
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