Chandrababu Naidu has task cut out as he completes one year in office

N Chandrababu Naidu, Andhra Pradesh Chief Minister, has had a tough first year in office, with a number of hits and several misses while battling severe financial constraints.

As he completes one year in office of the residual state on June 8, his task is cut out for him. The challenge of keeping up election promises and assurances made after becoming the CM for the third time (the first two terms during 1995-2004) remains.

With the bifurcation forced on the people by the erstwhile UPA Government, as Naidu puts it, AP was left facing serious challenges, including lack of funds. The State started its journey with a deficit of ₹15,700 crore, with a makeshift camp office. Its ability to borrow was also hampered by the Fiscal Responsibility and Budget Management Act, which puts a cap on borrowings.

The UPA Government’s promise of providing Special Status is yet to be accorded. This, is in spite of the Narendra Modi–led NDA Government and TDP being electoral allies and now part of the Government.

One of the key electoral promises made was the waiver of crop loans to farmers and self-help groups (SHG). With empty coffers and the RBI’s rejection to consider loan waiver, the State had to devise a new approach, wherein whereby crop loans would be taken over in a phased manner over four-five years.

Two tranches have been fulfilled, and loan waiver of women’s self-help gropus was being considered. Meanwhile, the opposition YSR Congress party is losing no opportunity to fault the Government on its failed promises.

On June 6, Naidu performed the Bhoomi Pooja (ceremony to inaugurate a new site) for the capital city Amaravathi. He faces twin challenges of securing 34,000 acres identified for new capital through land pooling, and raising funds. In about six months, he has managed to rope in the Singapore Government for the Capital Region and Capital Master Plan and is now looking at beginning work in Dasara after getting the Seed Plan by July 15.

The Centre, earlier this year, had sanctioned ₹1,500 crore for the capital and has promised more help. Naidu wants the Centre’s support till AP has a level playing field with other states.

A developed State ranked among the top five few years back, it has now slipped, says Finance Minister Yanamala Ramakrishnudu. It would require Centre’s support to put it back on growth.

Meanwhile, the long pending Polavaram project, which received national projects status, has received ₹1,150 crore. He is also seeking to fast track another Godavari water diversion project to Krishna river through Pattiseema to support Rayalaseema and delta areas.

The strain between the newly created State of Telangana and AP over sharing of water, power, institutions and even infrastructure, continues.

Naidu’s partyman Revanth Reddy has been arrested in the cash for vote scam in Telangana causing embarrassment. Naidu is also being sought to be implicated in the case. Several TDP members have defected to the TRS, causing further loss to the TDP in Telangana.

COMMENT NOW