Singapore Consortium Pulls Out Of Amaravati, Is Jagan Govt Planning To Scrap Mega Project?

The deep-rooted rivalry between YS Jagan Mohan Reddy and Nara Chandrababu Naidu has been transparent and also transcending with the YSRCP government’s difference in plans and priorities, especially with Amaravati. Speculations about Jagan’s plan to do away with the idea of developing Amaravati, the brainchild of Chandrababu Naidu, as the new state capital, are gaining grounds.

On November 11, the YSRCP government scrapped the exclusive startup area as planned after the consortium of Singapore companies which was supposed to build the project pulled out. YSRCP claimed that the agreement was mutual and that this disinvestment would not have much of an impact on India’s economy through foreign investments.

The current investment pullout is a big jolt to Amaravati after the World Bank pulled its $300 million investment from the state capital in July this year. The World Bank cited the government’s non-compliance to keep up with the policies and settlements with the affected parties as the reasons for pulling the investment.

Naidu envisioned Amaravati in the most boisterous and grandeur manner with iconic structures and infrastructure. But in the Budget 2019-20, only ₹500 crores were allotted for Amaravati.

This move gave rise to speculations in public and among the Naidu led Telugu Desam Party(TDP) cadre about Amaravati’s fate in the YSRCP government. Amaravati requires ₹1.5 trillion which was to be given to them in three phases, but only ₹1.5 crores have been acquired from the centre. YSRCP government also terminated the allotment of ₹3000 crores for Polavaram Project irrigation and undertook retendering.

TDP leaders while speaking to Livemint said the way Amaravati has been treated indicates the government intends to scrap it.

“The way Amaravati has been treated is a very good example. Currently, the farmers from whom the land was taken in the capital region are not getting their monthly income, and all developmental works there have also stopped,” the leaders alleged.

Amaravati was planned not only as another capital but also as a hub for a massive development that can attract foreign investments and create jobs for the rural population and attract tourism. In this process, the then TDP government acquired 34,281 acres of land from farmers.

After Jagan’s took over as Andhra Pradesh’s Chief Minister, farmers’ distress pertaining to this issue grew stronger. They were to receive ₹30,000 per acre for a fixed period of 10 years and the compensation goes up to ₹50,000 per acre if the land is fertile. The total compensation to be paid to the farmers comes up to ₹300 crores per year. But in the past five years, only ₹1,100 crores compensation was disbursed to the farmers.

This active antagonism from YSRCP, making the angst between the two politicians apparent, it is not just going to hurt the state and tamper its development, but it is sure to also puncture the economy of the country on the whole.

Also Read: Will Jagan Be A Game-Changer For The State Of Andhra Pradesh?