AP will provide 24x7 power from Oct.2

V.Rishi Kumar Hyderabad | Updated on July 09, 2014

State finances in shambles, says Naidu

The Andhra Pradesh Chief Minister, N Chandrababu Naidu today assured 24x7 power supply to households from October 2.

Necessary arrangements to evacuate additional power from others locations, including NTPC projects has been made. This will enable the State to supply quality power to households and nine hours to the farm sector.

Addressing a press conference here after releasing a white paper on State finances, he said that the finances were in shambles and yet his Government would not impose any new taxes but seek to improve tax collection and raise resources.

He said the Central Government has taken up a pilot project to ensure 24x7 hours power supply to three States of Rajasthan, Delhi and Andhra Pradesh on a pilot basis and soon AP will have enough power to supply round the clock.

Referring to the poor financial health of the State he has inherited, with a deficit of Rs 15,800 crore, he said that the State Government was banking on the Centre’s support to address this during the current financial year.

The per capita tax burden went up from Rs 2,266 in 2000-01 to Rs 7,136 during 2011-12. This reflects the heavy tax burden the Government imposed on people after 2003-2004. The capital expenditure was down in the last five years from 3.5 per cent to 1.79 per cent.

Naidu said they expect to take up the issue of financial allocations to the State with the 14th Finance Commission. A committee headed by C.S.Rao will come out with a detailed presentation to the commission.

The Government plans to come out with its approach paper in resolving issues relating to various sectors such as power and finance.

On the funding requirement for the Polavaram project, he said that the Centre will take up the expenses of the project from April 1, 2014. There is no dearth of funds for implementation of the project as there are enough resources under the Accelerated Irrigation Development Programme.

He said that fiscal stress has become the order of the day as a result of expenditure commitments rising faster than revenue receipts without anticipated return from major projects in irrigation, power, while the debt burden increased.

Referring to the division of the State, he said the State was divided without an iota of concern for or attention to the disastrous economic and financial consequences on the residuary State of AP.

He hoped that the differences between the two States would be resolved amicably rather than taking up a confrontation mode.

On loan rescheduling/waiver, he said that the State has been assured by the RBI and a formal decision will be announced soon.

Published on July 09, 2014

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