Hyderabad/Visakhapatnam: The Andhra Pradesh government is planning to mobilise financial resources for building the new capital city of Andhra Pradesh and also for reconstructing cyclone-hit Vizag through Social Impact Bonds .
The government has proposed to name SIBs as “Build Andhra Bonds”. The target is to rope in corporates to donate 2 per cent of their corporate social responsibility funds to build the capital city and in also to invest in the “Build Andhra Bonds”. The SIB has been a success in the UK and the US.
The proposal was explained to Reserve Bank of India Governor Raghuram Rajan, who called on AP finance minister Y. Ramakrishnudu at the Secretariat on Wednesday. Mr Rajan liked the idea and suggested that the AP government should also go in for municipal bonds with tax concessions to raise finances for building its capital city.
Read: Hudhud: Relief pours in, Rs 70,000 crore sought
AP resource mobilisation panel chief and TD MP Y.S. Chowdary, said that Mr Rajan lauded the proposal of the Build Andhra Bonds. Mr Chowdary said a team of officials will be giving the RBI Governor a presentation for the same.
Andhra Pradesh state planning board chairman C. Kutumba Rao said that the money raised through SIBs could be used for any project, right from building the capital to reconstructing cyclone-hit Vizag, and for developing infrastructure elsewhere in AP.
He said that the SIB is a contract with the public sector in which a commitment is made to pay for improved social outcomes that result in public sector savings.
Read: Hudhud hits fishing industry in Vizag
“People either can donate money through SIBs or can invest with an assurance from the borrower that the project for which they are investing will be completed in a specified time without any additional overhead costs. If the borrower fails to complete the project in time, he has to pay more interest to the investor along with the principle amount. If the project is completed in time, the investor will get back his money with minimum interest and will have the satisfaction that a social or infrastructure project has been completed with his or her money,” Mr Kutumba Rao said.
He said that the most important factor in SIB was that the tax payers’ money was not wasted on failed programmes or projects. In India, an NGO in Sirohi district of Rajasthan was the first to raise money with Social Impact Bonds for education of girls in rural areas.
Finance Minister Mr Ramakrishnudu said that the RBI governor had ben informed that a Special Purpose Vehicle was being formed for the new capital's development. “We sought the RBI and other banks’ co-operation as their financial support is essential for the capital's development. He (Rajan) assured us of RBI's co-operation,” the minister said.
While many wait in the dark, power restored in few areas
Power has finally been restored in some parts of Vizag city. Gajuwaka, KGH, VSEZ, Narava, Padmanabhapuram, Mindi, Port, Nakkavanipalem and Simhachalam areas were given power supply. Power will be restored in Pendurthy, Garividi in the next 48 hours, say officials.
Power has been restored to around five per cent of population. Many citizens are still languishing without power. According to officials, around 22 lakh people were affected by the storm.
Read: Cyclone Hudhud: Vizag’s image takes a beating
Chairman of the power grid corporation, Ram Naik, said that all state and central wings have been involved in relief measures in Vizag to restore power supply at the earliest. A senior power official said arrangements have been made for coal supplies from various parts of the country.
Mr Jain said efforts were on to restore power in Vizianagaram and Srikakulam districts. Forty sub-stations in Visakhapatnam district would be charged to restore power in some areas by Thursday morning. Power would also be provided to the Vizag steel plant and airport. The Vizag Steel Plant and airport would be provided power supply shortly.
Energy secretary Ajay Jain said four units of NTPC were stopped and power will be restored for a 500 MW unit by Wednesday evening. He said they have been charging possible substations and power supply would be given from the points as per convenience and safe situation since majority of poles were uprooted and conductors damaged.
Read: Hudhud: Cyclone death toll now 37
Energy Restoration System from Chhattisgarh has been installed at six towers in the city for fast restoration of power supply, senior official said. He also said arrangements have been made for coal supplies from various parts of the country.
Power from Krishnapatnam, Vijayawada and Vemagiri was connected to the city substations for immediate supply. Out of 8 220-KV-substations 3, for 8 132-kv-substations 6, for 61 33-kv substations 15 have been restored so far and another 18 substations of 33/11 kv substations were planned to be charged by Wednesday night, Ajay Jain said.
Read: Hudhud a national calamity, says Chiranjeevi
He also said efforts were on to restore power in Vizianagaram and Srikakulam districts. This would be done by restoring power supply for Pendurthy in Visakhapatnam and Garividi in Vizianagaram districts, where four towers in each district were damaged disrupting supply to both the areas. Another 40 substations in Visakhapatnam district would also be charged for restoring power supply to some areas by Thursday morning.
Vizag Steel Plant and Airport would be provided power supply shortly. Transco CMD K Vijayanand, EPDCL former CMD N Gulzar and others were also present.
