Hyderabad/Vijayawada: The TD government in Andhra Pradesh said that Special Category status is worth only Rs 3,300 crore as against the wide belief that the status and incentives will be a big financial boost. Announcing that Andhra Pradesh will get over Rs 10,000 crore for 2014-15 fiscal year by this month end to fill the revenue deficit, Union minister of state for science Sujana Chowdary said that the status was worth only around Rs 1,500 crore to Rs 3,000 crore while industrial incentives are worth around Rs 300 crore.

TD MP and Union minister for science Sujana Chowdary said efforts were still on to get the special category status and industrial incentives. He added that the sate was also working on getting funds through other means from the Centre if the special status and incentives were not granted.

Speaking to reporters at the Lakeview Guest House on Sunday, Mr Chowdary said, “Special Category status is a government-to-government issue and not concerned with individuals. If granted, AP will benefit in the range of Rs 1,500 crore to Rs 3,000 crore. Though the Centre hasn’t said ‘no’ for it, we are also looking at other ways. There is a cap of $150 million put by World Bank and IMF on external aid for each state and we are asking for relaxations. Relaxation of the FRBM Act is another aspect.”

He added, “Industrial incentives, if granted on par with Himachal Pradesh, will include service tax, corporate income tax and excise duty. These incentives, anticipating there are investments leading to incremental sales to the tune of Rs 10,000 crore annually, will result in benefits of Rs 300 crore only. If incentives are not possible and if the Centre grants the Rs 300 crore to the state, we can develop industrial estates and give free power or other incentives and attract investments.”

“The Centre has already granted 15 per cent additional depreciation. We are now asking for Minimum Alternative Tax exemption for AP. This will boost investments,” added Mr Chowdary.

Andhra Pradesh’s ORR approved by Centre

In a significant development, the Centre has approved the Outer Ring Road for the city, according to Y. Sujana Chowdary.

The project will be completed under the Engineering, Procurement and Construction system. The Centre will fund the project and toll will not be collected from road users. The nearly 180-km ORR would be completed in a phased manner

Chief Minister N. Chandrababu Naidu had submitted the ORR project report directly to Prime Minister Narendra Modi and Union minister for roads Nitin Gadkari. MPs from the state also lobbied to secure approval for the project.

According to preliminary estimations, the project is estimated to cost Rs 19,700 crore. The ORR will play a key role in taking highway traffic away from the city roads as well as providing infrastructure for the capital city.

The Union minister had accepted this project on the condition that the state would provide the land. State officials have estimated that 5,000 acres of land is needed for the ORR in Krishna, Guntur and West Godavari districts. The Centre also agreed to complete the Vijayawada-Machilipatnam highway under the EPC system. The government has cancelled the tenders which were already accepted for completion of the under the PPP system. This road is important in view of the upcoming port at Machilipatnam.

The government is working towards beginning work on the port. Port contractors have also recently expressed their interest on the condition that better road connectivity is provided to Machilipatnam and the port area.