AP capital estimate 54K crores - where are they going to get it?

by truthbetold Sat Aug 30, 2014 8:27 am

Sivaramakrishnan comm on AP capital submitted its report to Union Home ministry. One of the data points is the cost estimate. A modest 54K crores compared 100k crore and 500k crore estimates talked about earlier. The question is where can ap get that kind of money (even the modest 54K crore)? From its own resources. Ap is running on empty and has no chance of allocating large sums any time soon. Union govt. A friendly modi govt will respond positively and give them anywhere between 5k to 10K over 5 or 10 years. Now that is a big improvement over how the center treated other newly formed states. But not enough for AP.

AP govt should focus on multi stage development of capital with distributed govt. Stage 1 can be Assembly, secretariat, dgp and ministerial offices. All commercial development must be either purely private or govt private partnership. Sell bonds within India and around the world to support cost. Some international loans.

Harsh truth is capitals and major cities takes several decades to evolve. Even with best of intentions and honest efforts, AP capital will take atleast two decades to have a major role in revenue generation.

by Marathadi-Saamiyaar Sat Aug 30, 2014 10:24 am

even a huge buildig in India is a 3 yr project. A city with multiple buildings, residential areas, etc.. will take easily 10 years even if well planned and started tomorrow.

My fear is if things are not well into the construction stage, someone else - like Jagan - could come in after 5 years and change the whole plan. After all why would Jagan accept CBN's capital, and not want his own stamp in AP history.

I suspect CBN is dilly dallying and doing his own financial arithmetic and losing valuable time.

by confuzzled dude Sat Aug 30, 2014 1:44 pm

We can replicate Singapore for 54k? That's one helluva deal

by Marathadi-Saamiyaar Sat Aug 30, 2014 2:56 pm

truthbetold wrote:Sivaramakrishnan comm on AP capital submitted its report to Union Home ministry. One of the data points is the cost estimate. A modest 54K crores compared 100k crore and 500k crore estimates talked about earlier. The question is where can ap get that kind of money (even the modest 54K crore)? From its own resources. Ap is running on empty and has no chance of allocating large sums any time soon. Union govt. A friendly modi govt will respond positively and give them anywhere between 5k to 10K over 5 or 10 years. Now that is a big improvement over how the center treated other newly formed states. But not enough for AP.

AP govt should focus on multi stage development of capital with distributed govt. Stage 1 can be Assembly, secretariat, dgp and ministerial offices. All commercial development must be either purely private or govt private partnership. Sell bonds within India and around the world to support cost. Some international loans.

Harsh truth is capitals and major cities takes several decades to evolve. Even with best of intentions and honest efforts, AP capital will take atleast two decades to have a major role in revenue generation.

Wait...what the hell you are talking? 54K crores (only)? I read that as 540K crorer...

54K crore is jijubi. K-Raja looted 70,000 (70K) crore, and he can EASILY invest in CBN and Seemandhra Capital. With help from the Marans and Jagan, CBN can build not just a singapore, but a Sydney.

by confuzzled dude Sat Aug 30, 2014 4:36 pm

Marathadi-Saamiyaar wrote:
truthbetold wrote:Sivaramakrishnan comm on AP capital submitted its report to Union Home ministry. One of the data points is the cost estimate. A modest 54K crores compared 100k crore and 500k crore estimates talked about earlier. The question is where can ap get that kind of money (even the modest 54K crore)? From its own resources. Ap is running on empty and has no chance of allocating large sums any time soon. Union govt. A friendly modi govt will respond positively and give them anywhere between 5k to 10K over 5 or 10 years. Now that is a big improvement over how the center treated other newly formed states. But not enough for AP.

AP govt should focus on multi stage development of capital with distributed govt. Stage 1 can be Assembly, secretariat, dgp and ministerial offices. All commercial development must be either purely private or govt private partnership. Sell bonds within India and around the world to support cost. Some international loans.

Harsh truth is capitals and major cities takes several decades to evolve. Even with best of intentions and honest efforts, AP capital will take atleast two decades to have a major role in revenue generation.

Wait...what the hell you are talking? 54K crores (only)? I read that as 540K crorer...

54K crore is jijubi. K-Raja looted 70,000 (70K) crore, and he can EASILY invest in CBN and Seemandhra Capital. With help from the Marans and Jagan, CBN can build not just a singapore, but a Sydney.

I think TBT was referring to CBN's cut. Hope this clears all the confusion.

by truthbetold Sat Aug 30, 2014 5:43 pm

54K crore is the amt mentioned in the report for capital building estimate. Modi will give about 3K cr. in second year and a few k Cr. in subsequent years. After that other priorities will overshadow AP capital and it will be pushed down the list.

More important is the polavaram project. Union govt has to fund it fully and complete it. Educational institutions should also be funded fully but they will take 20 years to complete.

Capital funding will have to come from andhra people's money. It will take at least two decades. Hopefully Jagan types do not get in govt during that period.

by confuzzled dude Sun Aug 31, 2014 10:08 am

AP capital estimate 54K crores - where are they going to get it? Captureandra_1

Hyderabad: The Indian Institute for Human Settlements that prepared the report for the Sivaramakrishnan Co-mmittee, has indicated that a `4.5 lakh crore package is needed for Andhra Pradesh’s comprehensive economic development based on the agreements in the Andhra Pradesh Reorganisation Act (2014) and various statements made by the state.

http://www.deccanchronicle.com/140831/nation-current-affairs/article/rs-45-lakh-crore-required-andhra-pradesh-capital

by Marathadi-Saamiyaar Sun Aug 31, 2014 11:07 am

Here is my qostin...

Why should any outsider help to build this new capital of SA ?

Telengans wanted to separate bcz the Andhrans discriminated them. Ohers did not care what they did. Any new capital is expected to bring "prosperity" to Andhrans, and they will reap the benefits. What is in it for the Hindians and Tamilans?

Income from Hyderabad should be escrowed and help pay for the new capital. Telengans should shut their mouth and give the mney as they after all got their own state.

Modi ji should decline any help except to pay Andhrans Re 1.

by truthbetold Sun Aug 31, 2014 6:22 pm

Uppili

Your question has been asked by reasonable people, anti andhra people and people with their own priorities. Right question and good question.

Here are some justifications for asking the money: Andhra sends more to union govt than it gets back. TN politicians are good at bringing back the bacon.

When union govt forced the bifurcation on Andhra people, it has agreed to give some compensation for the heavy revenue loss.

I agree with you that they should have created a revenue sharing formula for hyderabd revenues to fund andhra capital. But that would have been possible if state was bifurcated in a systematic scientific way but congress has an eye on 16 parliament seats from Telangana. You know the history.

As I said before, union govt will fund a very small portion of 4.5 lakh cr required to put the state back on its feet.
polavaram project will be funded fully over a decade as it is a union govt project.
Most of national educational institutions will be completed in 20 years with drips of money over a long period as they have some utility locally and nationally.
Andhra Capital will get a small pittance because they have a friendly govt at center. Again that is nothing new for andhra. They treated other new states similarly. Promising a lot and delivering a little is not unusual for a govt of India.

Finally, Andhra's will have to buy, barrow and steal to rebuild their state over 20 years.

by confuzzled dude Sat Sep 13, 2014 1:21 pm

Tirupati: The Andhra Pradesh government on Friday sought a higher share in Central taxes for states, and around Rs 1 lakh crore from the 14th Finance Commission in form of a special grant for building a new capital over a period of five years.

Making his case for additional funds from the central taxes, the Chief Minister said that Section 46 of the AP Reorganistion Act explicitly asks the Finance Commission to make separate award for the successor states.

“Keeping in view of this, AP may be treated as a distinct from states and may be granted Rs 1,00,213 crore during the next five years to enable the state to build a modern capital city,” he explained. He wants an additional Rs 40,000 crore for the development of backward regions as Rayalaseema and northern coastal Andhra.

http://www.deccanchronicle.com/140913/nation-current-affairs/article/andhra-pradesh-wants-rs-1-lakh-crore-new-capital

-> Sounds like CBN's grand plan to get even richer.

by truthbetold Sat Sep 13, 2014 2:36 pm

confuzzled dude wrote:
Tirupati: The Andhra Pradesh government on Friday sought a higher share in Central taxes for states, and around Rs 1 lakh crore from the 14th Finance Commission in form of a special grant for building a new capital over a period of five years.

Making his case for additional funds from the central taxes, the Chief Minister said that Section 46 of the AP Reorganistion Act explicitly asks the Finance Commission to make separate award for the successor states.

“Keeping in view of this, AP may be treated as a distinct from states and may be granted Rs 1,00,213 crore during the next five years to enable the state to build a modern capital city,” he explained. He wants an additional Rs 40,000 crore for the development of backward regions as Rayalaseema and northern coastal Andhra.
http://www.deccanchronicle.com/140913/nation-current-affairs/article/andhra-pradesh-wants-rs-1-lakh-crore-new-capital

-> Sounds like CBN's grand plan to get even richer.

Yeah. Looks like jagan and party are missing the party.

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