State Finance Minister Buggana Rajendranath Reddy has stated that the Department of Economic Affairs (DEA) of Government of India suggested to the World Bank to drop the Amaravati Sustainable Infrastructure and Institutional Development Project (ASIIDP) due to the State government’s inability to convey its stand by July 15, 2019 (it asked time till July 31) on WB Inspection Panel’s recommendation. The panel recommended that ‘an investigation be carried out into alleged issues of harm and related potential non-compliance with livelihood restoration and requirements of the bank’s involuntary resettlement policy’.
The Central government, which was supposed to report back to the WB, felt that allowing prior inspection was unprecedented in the history of India's relationship with the global lender. Rather, the Centre considered such a move as detrimental to the national sovereignty.
The Centre has, therefore, informed the WB that it could drop ASIIDP, the Minister observed, while stating that WB has reportedly accepted DEA’s suggestion to support additional proposals from the State government.
Making a statement on the proposed WB funding of projects in Amaravati, in the Legislative Assembly on Monday, Mr. Rajendranath Reddy said representations were made by a large number of land owners and non-government organisations under the WB's Independent Accountability Mechanism (IAM) regarding certain omissions and commissions in the design of the project and its adverse environmental, socio-economic and financial implications.
It was in pursuance of those concerns that the WB formed the panel which submitted its final report on March 29, 2019.
The TDP government had launched projects in ten contract packages during 2017-18 and took up the projects with its own funds as the WB approvals were delayed.
‘Not eligible’
The WB communicated that the contracts awarded for seven roads were not eligible for retroactive financing and the cost would have to be borne by the previous government. Further, the State approved several technical works.
In the wake of complaints, the WB observed that the alleged harms were serious in nature and could be ascertained only in the context of an investigation, which the Centre did not allow. Owing to the time constraint and because the projects were being reviewed by itself, the State government told the DEA that it could take an apt call on further action.
Mr. Rajendranath Reddy stated that contracts were given at excess rates ranging from 9 to 17% to L&T, Nagarjuna Construction Company, Ashoka Buildcon and Afcons Infrastructure. Besides, the Land Pooling Scheme was a farce.
The TDP government should have given proper explanations to the IP’s visit but it was reckless and lethargic, he added.
