The financial assistance announced by the Central government for creation of capital for the State is in stark contrast to the plans and expectations of the government and Chief Minister N. Chandrababu Naidu.
The Centre, in its announcement late on Wednesday, said that it would pay Rs. 1,000 crore for the capital. An amount of Rs. 2, 500 crore had already been given for the same, it claimed.
However, the total aid of Rs. 3,500 crore would not even meet the needs of the State for developing basic infrastructure. “The amount assured by the Centre will not meet the needs of capital construction. Originally, the Congress too mentioned only buildings for capital. Buildings won’t cost much. What we need is a new city with modern infrastructure. Allocation of funds only for buildings, leaving all other infrastructure, is not proper,” Mr. Naidu said at the press conference held later.
“The Centre needs to look into the needs of the entire infrastructure in the capital. Not only the State government, the Centre is also responsible for building the new capital. Amaravati is the only capital to be built in this century. It is a crisis and also an opportunity,” Mr. Naidu said.
The State government expected Rs. 50,000 crore from the Centre to realise its plans of developing a capital in about 30, 000 acres.
