Nation Current Affairs 30 Aug 2019 TD failed to get fun ...

TD failed to get funds for VCIC: YSRC

DECCAN CHRONICLE.
Published Aug 30, 2019, 3:12 am IST
Updated Aug 30, 2019, 3:12 am IST
Loan taken from Asian Development Bank puts additional burden on state.
NICDIT is an apex body under the administrative control of the Department of Industrial Policy and Promotion (DIPP) for coordinated and unified development of various industrial corridors planned in the country.
 NICDIT is an apex body under the administrative control of the Department of Industrial Policy and Promotion (DIPP) for coordinated and unified development of various industrial corridors planned in the country.

VIJAYAWADA: The YSRC government has found fault with the previous TD government for failing to get 100 per cent funding for Vizag Chennai Industrial Corridor (VCIC) from the Centre’s National Industrial Corridor Development and Implementation Trust (NICDIT) on the lines of Delhi-Mumbai Industrial Corridor and burdening the state exchequer by going for a loan from Asian Development Bank.

NICDIT is an apex body under the administrative control of the Department of Industrial Policy and Promotion (DIPP) for coordinated and unified development of various industrial corridors planned in the country.

 

The provisions of the AP Reorganisation Act (Schedule XIII) said, “The government shall, within six months from the appointed day, examine the feasibility of establishing a Vizag-Chennai industrial corridor along the lines of Delhi-Mumbai Industrial Corridor and take an expeditious decision thereon.”

The AP Reorganization Act 2014 has clearly stated that the government will examine the feasibility and support the development of Vizag-Chennai Industrial Corridor. Government had already supported the Delhi-Mumbai Industrial Corridor (DMIC) with grants as well.

 

However, the state government, instead of pursuing this matter with the government, had agreed to develop the VCIC with a loan of Rs 4,170 crore from Asian Development Bank. Additionally, on its part, the state government committed a contribution of `1,434 crore for the development of the VCIC from its own budget. Subsequently works have also been taken up under Vizag-Chennai Industrial Corridor.

“Considering the weak finances of the state, the loan from Asian Development Bank and the additional budgetary support has put an additional burden on the state exchequer. Government of Andhra Pradesh was not able to get the grant under NICDIT. The state government should have developed VCIC on the lines of DMIC, through 100 per cent grant funding by NICDIT, rather than through a loan to be repaid by the state government", said a top official of the state government.

 

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