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1. Introduction:

The APR Act 2014 (Act 6 of 2014) was notified on the first of March, 2014.

2nd June 2014 was notified as the Appointed Day, the day on which the

State of Andhra Pradesh was bifurcated into the State of Telangana and

the State of Andhra Pradesh.

2. Unscientific Process adopted by then UPA Government: Lack of

adequate and serious consultations with the key stakeholders, absence

of consensus amongst key political parties, lack of transparency and

cloak and dagger mode of drafting the Bill characterised the process of

drafting the Bill. Despite series of agitations from the people, scant regard

was shown to their feelings / aspirations and this had caused serious

disenchantment amongst people of Andhra Pradesh.

3. Injustice done to Andhra Pradesh – The inconsistencies in the Re-

organisation Act and the actions of the GoI causing injustice to the state

of Andhra Pradesh are:

a. The state received only 46% of the estimated revenues of the

combined State while accounting for the 58% of its population

which was confirmed by the 14th Finance Commission.

b. Assets were allocated on location basis whereas debt liabilities

were distributed on population basis.

c. In power sector, power consumption has been adopted as basis

of distribution which is detrimental to AP state.

d. Refund of taxes is to be shared between Andhra Pradesh and

Telangana on population basis (58.32 : 41.68) whereas deferred

tax collections have been allocated on location basis.. This has

caused a loss of about Rs.3,800 Crores.

e. No capital city for the residuary State of Andhra Pradesh

f. Undivided loan liability of more than Rs.33,478Cr. has been put

in the books of accounts of Andhra Pradesh, burdening the State

with discharge of liability pending division. This has adversely

impacted FRBM limits of Andhra Pradesh as well.

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g. Despite Singareni Collieries being a Schedule IX Company, TS

has been allocated 51% equity of the company on location basis.

However, similar dispensation for its subsidiary APHMEL located

in Andhra Pradesh also a Schedule IX Company has not been

given.

h. Power (electricity) allocation was done on consumption basis.

4. Status of Implementation:

There are 6 assurances in the main Sections of the Act. None of them

are implemented fully. 4 assurances are partly implemented and 2

assurances (i.e., establishment of Grey Hounds training centre and

increase of A.P. Legislative Assembly seats) are not implemented at all.

Further, out of 11 educational institutions mentioned in Schedule-XIII, 9

educational institutions are started. However, against a requirement of

Rs.11,673 crores for setting up of infrastructure for these educational

institutions only Rs. 638.19 crores have been released by Govt of India.

On the other hand, the State Government has provided lands to an

extent of 2911.52 acres costing Rs.11,714 crores and released

Rs.131.33 crores for protection of these lands. There are also 8

assurances regarding establishment of infrastructure projects of which

3 are in initial stages and 5 are not at all implemented.

Against 89 institutions listed in Schedule-IX, orders have been issued by

the State Government in respect of 41 institutions for which

recommendations in complete shape have been received from the

Expert Committee. However, due to non-cooperation of Telangana

Government not even a single institution is bifurcated.

In respect of 142 Schedule-X institutions, not even a single institution is

divided so far.

As regards notifying the jurisdiction of Krishna River Management Board

and Godavari River Management Board the same is pending with Govt.

of India.

In addition to the above said provisions, the then Hon’ble Prime Minister

made 6 assurances on the floor of Rajya Sabha on 20.02.2014 and 5

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of these assurances are implemented partly and one assurance relating

to Special Category Status is not at all implemented.

5. Initiatives taken by Andhra Pradesh for implementation of A.P.

Reorganisation Act, 2014:

The Andhra Pradesh Government took lot of initiatives for proper

implementation of the provisions of the Act and assurances of the then

Prime Minister. Number of representations and memoranda were

submitted to the Hon’ble Prime Minister and other Union Ministers

seeking early settlement of the issues and implementation of the

assurances. Number of Committees were constituted for resolving the

issues. An extent of 33,000 acres has been obtained for capital

development through land pooling system. Besides taking up protests

in Parliament, the Members of Parliament from TDP moved no

confidence motion in the last session of Lok Sabha. The TDP Ministers

also resigned from the Union Cabinet and TDP Party withdrew its

support to NDA Government. Dharma Porata Deeksha is being

organised every month in the State.

The Govt. of Andhra Pradesh also made a reference under Section-66

of the Act to Govt. of India for early settlement of disputes relating to

division of assets including A.P. Bhawan.

6. Utter disrespect shown to constitutional machinery / authorities by

NDA Govt.

By not implementing the orders of the Hon’ble Supreme Court on

Schedule-X institutions, not implementing the assurance of the then

Prime Minister on the floor of the Rajya Sabha regarding according

Special Category Status to Andhra Pradesh and refusal to accept the

Certificate of CAG regarding the Revenue Deficit, the NDA Government

has shown utter disrespect to Constitutional machinery and authorities.

7. Broken Promises:

The BJP which is leading NDA Government itself argued for Special

Category Status for Andhra Pradesh for 10 years on the floor of Rajya

Sabha during passage of AP Reorganisation Bill and also mentioned the

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same in its Seemandhra Election Manifesto for 2014 now says it can’t

give Special Category Status. Further, the said BJP Manifesto also

assures reimbursement of Revenue deficit and sanction of Backward

Areas Development Package on KBK and Bundelkhand models and the

same are not implemented. Hon’ble Prime Minister during election

campaign at Tirupati and Nellore Towns in Andhra Pradesh promised

Special Category Status for 10 years which is not implemented and help

for building a capital which would be better than Delhi.

8. Status on furnishing of Utilisation Certificates: GoI has released an

amount of Rs.12895.06 Cr. to GoAP under various provisions of the A.P.

Reorganisation Act, 2014 and Utilisation certificates have been

submitted for an amount of Rs.11673.44 Cr.

9. Status of economy of the State: Despite the above adversities and

GoI palpable reluctance albeit disinterest in implementation of APR Act,

2014, the State has strived hard and has made significant efforts to

improve the fiscal and economic conditions in the state.

a. The State has more than tripled the capital expenditure from

Rs.6,891 crore in 2014-15 to Rs.22,875 crore in 2017-18

b. Though the State has managed to increase receipts, GSDP

growth, and capital expenditure, a lot of funds are required to build

the capital. Thus the State had to stretch financial resources which

led to an increase in debt and deficit in revenue and fiscal areas.

c. Andhra Pradesh will be the only state apart from the special

category states to have revenue deficit even after the completion

of 14th Finance Commission period i.e., even after 2020.

d. The outstanding debt of the United State of Andhra Pradesh was

Rs.2,00,171 Crores on the appointed day that is 2.6.2014. Of this,

an un-apportioned loan is Rs.33,478 Crores and of the remaining,

the Residuary State was saddled with larger share of Rs. 97,177

Crores as its share. The total outstanding debt as on 31.3.2018

works out to 28.40% of GSDP as against 24.74% of norm fixed by

the Fourteenth Finance Commission.

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e. Despite inheriting the skewed debt burden, the State Government

is striving hard for the welfare and overall development of the State

and to keep up all its commitments The State Government during

three years spent an amount of Rs.14,470 crores on welfare

pensions, Rs.11,324 Crores for debt redemption, Rs.6,799 crores

on self- help groups, Rs. 28,269 Crores on Irrigation, and Rs.6,110

Crores for Rice subsidy. The total expenditure on the major counts

indicated above comes to Rs.66,971 Crores.

f. Growth rate of various sectors of economy vis-à-vis All India growth

rates stand testimony to the determination of people of the State

for developing the State.

10. Way Forward: The State Government with the cooperation of all

political parties in the country would pressurize Govt. of India for

implementation of assurances and promises narrated above. Further

appropriate legal forums will be approached for the redressal of the

grievances.

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