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Loans rescheduling announcement by RBI on Monday likely

  RBI, which is convinced with AP Chief Minister Chandrababu Naidu’s arguments, is likely to make an official announcement on rescheduling of crop loans on Monday. According to latest information, RBI has agreed for imposing a moratorium for one year and planning to reschedule the crop loans for three years. Though, it gives a great relief to TDP government, it is trying to convince the RBI to extend the reschedule period to five years so as it can generate sufficient revenue by then and clear all the dues. State government has sent the concerned officials to Mumbai yesterday for further negotiations with RBI and to convince it to extend the reschedule period to five years.   However, one thing become clear that Chandrababu Naidu has kept his promise to waive off the loans within the time frame of 45 days that he sets on June 8th during his swearing in ceremony.

Fresh dispute triggers between AP and T Governments

  A fresh dispute between AP and Telangana government triggers over sharing of power produced in Hinduja power plant located at Visakhapatnam. This plant will be commissioned in the next one or two months and it is expected 520 mw of power will be produced here in the first phase.   Therefore, Suresh Chadda, the princiapal secretary of T-Energy ministry has ordered the two power distribution companies of Telangana-PDCL and NPDCL to make an agreement with Hinduja Company for obtaining 53.89 percent of power produced in the plant, which is its due share as per the power sharing formula adopted during bifurcation.   However, AP Load Dispatch Center (APLDC) refuses to make any fresh agreements with T-distribution companies, following the guidelines given by AP state government. AP government, which wants to terminate the existing PPAs made with T- distribution companies before bifurcation, argues that it can’t afford to share the power produced in the AP state with Telangana. It argues that it will utilize 100 percent power produced in this plant.   However, T-Government argues that Hinduja Company has agreed to supply 100 percent power produced in the plant to state on regular price. Under that condition, the then AP Government has given permission for constructing the plant in Vizag and a MoU was made between AP government and the Company on 2012, May 17th. So, T-Government has all rights to claim 53.89 percent of power out of 520 mw produced in the Company.   So, as usually Centre is forced to intervene in this dispute also. A committee headed by Mathur invited Principal Secretaries of both states’ energy departments to a meeting to be held at New Delhi on July 14th.

Telangana Bandh on Saturday

  T-JAC has given Telangana Bandh call for Saturday in protest against merging seven mandals of Kammam district with AP that submerges under Polavaram Project. Initially, it was planned to conduct bandh only in Kammam district, but when Loksabha has cleared the Polavaram bill, T-JAC has expanded the bandh to entire Telangana state. Various political parties including Congress, TRS, CPI, CPM, and Student’s Unions also supporting tomorrow’s bandh. Hence, it would be a complete bandh of the state.   It is interesting to see T-Congress leaders taking turn around on their party decision on this issue and their high command letting them do so. Hence, the beleaguered T-Congress leaders grabbed this issue to hit the streets, perhaps not for the sake of Tribals to be displaced under the project, but to revamp their political status in Telangana.

Similar issues, but reasons different?

  Odisha and Chattisgarh MPs have joined TRS MPs fight against Polavaram, because they also have similar issues with the project. Hence, they also argue that Centre has no right to alter the state boundaries. However, it is evident that they are no way related to merger of seven mandals of Kammam district with AP, but they also join TRS’s fight only to stop the project.   So, it is understood that they are basically opposing Polavaram project. But, TRS says that it is not opposing the project but just asking to change the design of the project so as minimize the loss to tribal settled in its seven mandals. So, basically their problems appear to be similar, but the reasons for their fight are quite different. However, as the NDA government is firm with its decision on the project, they may continue their fight together against NDA government.

Loksabha passes Polavaram amendment

  As predicted, the amendment to AP Reorganization bill-2014 for merging seven mandals of Kammam district with Andhra Pradesh was passed by with Loksabha with voice vote. Badrachalam, Bhurgulapadu, VR Puram, Velerupadu, Koonavaram, Kukkanooru and Chintooru were merged with AP state. However, Badrachalam town and some villages Bhurgulapadu will remain with Telangana state.   Telangana, Odisha and Chattisgarh state MPs and T-Congress MPs also strongly objected this merger, but in vain. Hence, they all are staging a dharna in front of Parliament gate in protest against Centre’s decision. A bandh call was given for tomorrow in Kammam district protesting the decision.   TRS MP Vinod argued that Centre can’t alter the boundaries of any state without the consent of the concerned state and President of India’s permission. He strongly condemned passing the bill with brutal force. However, the agitating MPs have conveniently ignored the fact that AP state was also divided with brutal force, while lakhs of people and their representatives in Assembly and Parliament are strongly opposing it.   They also ignored the fact that actually previous UPA government has proposed this merger and NDA just implemented it. Moreover, the ordinance was passed ahead of appointed day 2014,June 2nd. So, the seven mandals were officials merged with AP prior to formation of Andhra and Telangana states and not after. So, TRS or whoever may be can’t question the government’s decision in this regard.

Apply the same thumb rule to Telangana

    AP government has made the job easy for Telangana government over crop loans waiver issue. The way it convinced RBI Governor Raghurama Rajan for rescheduling the crop loans and issuing fresh loans to farmers, Telangana government also follows the same pattern to resolve its problem. Nagireddy, the principal secretary of Telangana Finance Ministry wrote a letter to RBI Governor asking to apply the same thumb rule to Telangana farmers also in rescheduling the crop loans. He also mentioned the same reasons that were mentioned by AP government. He writes several areas across the state were either flood affected or draught hit. So, He appeals the Governor to reschedule the crop loans for at least seven years and issue fresh loans to Telangana farmers.   Whether RBI agrees for his request or not, his letter underlines an interesting point that RBI might be rescheduling the AP farmers crop loans for seven years, not for one or two years as guessed by many. If so, this will relieve the pressures from TDP government and can spearhead with its development activities with full spirits.

Budget Allocations

  The total budget for the year 2014-15 is Rs. 17.9 lakh Crores and Rs.12,90, 819 crores non budget expenditure. Out of this, some important allocations to different sectors in the following manner.   1. Defense: Rs.2.29 lakh Crores.   2. Rs. 5,000 crores for modernization of Army.   3. Rs.2,250 crores on Board   4. Rs.3,000 crores for modernization of Police Departments.   5. Rs.115 crores for setting up Marine Police stations.   6. Rs.50,000 crores for SC, ST welfare.   7. Rs.100 crores for Tribal welfare.   8. Rs.500 crores for rehabilitation of displaced Kashmir Pundits.   9. Rs.100 crores for Agricultural development in North Eastern states.   10. Rs.100 crores for Agri Infra Fund.   11. Rs.2037 crores for cleansing River Ganga.   12. Rs.100 crores for studying connecting rivers across country.   13. Rs.100 crores for developing ghats across River Ganga.   14. Rs.30 crores for Handicrafts Academy.   15. Rs.100 crores for development and protection of Archeological Important places.   16. Rs.500 crores for setting up AIIMS in AP.   17. Rs.200 crores (preliminary allocation) for setting up IITs in five states.   18. Rs.200 crores for setting up Horticultural Universities in Haryana and Telangana.   19. Rs.500 crores for girl child welfare and education.

Items that becomes cheaper and costlier

  Prices will come down: 1. Footwear   2. LED and LCD TVs   3. Color Picture Tubes   4. Computers and Mobiles   5. Iron, Lime stone and Dolomite.   6. Woolen Dresses   7. Fatty Acids, Glycerin   8. Wind Mill Electrical equipment   9. Diamonds   Prices that may go high:   1. Cigarettes and Gutka   2. All Tobacco Products   3. Stainless Steel Items   4. Electronic Equipment (Because of Education Tax will be levied)   New Taxes levied:   Service Tax on Radio taxies Education Tax on Electronic Equipment   Customs duty increased on Stainless Steel items.   Taxes Reduced on Items:   Customs Tax reduced on Petro Chemical Products.

Budget Highlights

  Employees Income Tax sealing limit has been increased from present Rs.2 lakhs to 2.5 lakhs, declares Union Finance Minister Arun Jaitli today. He also raised the senior citizens sailing limit of income tax to Rs.3 lakhs. The same way tax limit under 80 CC has been increased to Rs. 1.5 lakhs. He said that Government will encourage the people to have at least two bank accounts in each house.   Other Highlights: 1. Employment exchanges to provide counseling for selection of jobs.   2. Rs.100 crores allocated for setting up Sports University in Manipur   3. Shooting, Archery, Boxing Training Academies to be set up   4. National Sports Academy to be set up   5. Annual Event for promoting sports events with neighbouring nations   6. Rs.3000 crores set aside for modernization of state police   7. Rs.2500 crores allotted for boarder security.   8. One rank one pension for soldiers   9. Rs. 1.5 lakh enhancement for PPF   10. Rs.100 Crores for studying to link rivers   11. Rs.2037 crores allocated for cleansing River Ganga under Ganga Namami project.   12. 100 crores for ghat development   13. Rs.100 crores for Himalayan studies   14. IITs in Jammu & Kashmir, Andhra, Kerala, Chattishgarh.   15. 990 crores for socio-economic development of villages along border.   16. 100 crores set aside to develop Archaeological sites to world class level.   17. Space mission: GSLV MK3 , PSLY launches planned for 2014

2014-15 Budget Highlights

  Union Finance Minister Arun Jaitliright now is presenting budget for the years 2014-15 in Lok Sabha. Highlights of the budget.   1. Industrial Corridor with 20 Industrial clusters between Vizag and Chennai cities will be developed.   2. AIIMs in AP with Rs.500 crores.   3. Agricultural University and IIT will be setup in AP.   4. Horticultural University in Telangana with Rs.200 crore.   5. Rs.11, 635crores ear marked for developing 16 new ports in the country.   6. Hardware Park in Kakinada.   7. Six more textile clusters across the country will be set up.   8. 100 smart cities with an investment of Rs.7060 crores will be developed across the country.   9. Planning to begin for metro in some cities   10. Scheme for development of more airports will be launched.   11. Twelve more government medical colleges to be set up.   12. AIMS model super specialty hospitals in every state.   13. Rs.400 crores for Metro Projects in Ahmedabad and Lucknow.   14. 5 IITs and 5 IIMs will be setup in different states.   15. Rs.37, 850 crores for highways development.   16. Rs.500 crores for developing modern solar power projects.   17. FDI’s in manufacturing will be allowed.   18. Rs.3650 crores on safe drinking projects.   19. Free diagnostic services. 20. Currency notes in braille like print for visually disabled.   21. National level institute for differently-abled   22. All central government platforms will integrate with E Biz Platform.   23. E-visa to be introduced in 9 airports in the nation.   24. Foreign Direct Investment (FDI) in Defence will be increased from present 26 to 49 percent.   25. Rs.200 crore for constructing Saradar Vallab Bhai Patel statue in Gujarat state.   26. Rs.4, 000 crores for low cost affordable housing projects.   27. Two more agriculture research Institute to be set up.   28. Government to provide toilets and drinking water in all schools.   29. Crisis management centers for women in all districts.   30. Kisam Vikas pathras will be re-introduced. 31.

Will put the state back on to track: CBN

  Will put the state back on to track: CBN AP CM Chandrababu has released a ‘white paper’ on the state financial condition.   He said “We are disclosing the facts to the people only educate them about the miserable situation of the state and the reasons and solutions for it. Even when we take charge of the government in 1994, the situation is the same, yet we were able to put the state back on track. But, all that development taken place between 1994-2004, reversed later during the 10 years of Congress ruling because of their faulty policies, corrupt practices and inability to govern the state. As a result, our state which once was in third place, came down to sixth place.”   “Previous Congress governments have spent Rs.94, 000 crores on irrigation projects, yet we couldn’t get water for agricultural needs. Although, the purpose of the the investment on projects was not solved, huge debts accumulated in the state government’s account. It was Rs.66,393 crores in year 2004-05 and it is now Rs. 1.73 lakh crores. This happens due to corruption and lack of interest in the previous governments, for which people were taxed heavily all these years,” said Chandrababu.   He said “Our previous governments not even bothered to uphold the power generation and distribution systems during last 10 years. They simply keep buying power from other state to temporarily overcome the power crisis instead of building new power generation plants and obtaining power transmission lines to get supply from other states, which pushes the state into darkness now. Even though, there is regular power supply, previous governments have taxed the people very heavily by hiking power price and fuel surcharge collections. As a result, domestic users, industries, agricultural sectors are facing severe power crisis. Soon after taking charge of the government, we have taken several measures to improve the situation. I am confident that very soon, the state will be back to normalcy.”   Assuring the people for a bright future and development, he said “We are capable to deal with this kind of situations. My government may have to begin from scratch, but I assure you all that we will leave no stone left unturned to recover from this miserable state. I assure the people that we will develop the state and once again place it in top position among the other states in the country.

Jagan finds nice excuse to meet Home Minister

  YSR Congress party President Jagan Mohan Reddy has found a nice excuse to meet Union Home Minister Rajnath Singh. Accompanied by some of his party leaders he is leaving for Delhi today morning to complain on the ruling TDP government. He alleges that ruling TDP government created violence to grab the Chairmen Posts of local bodies. Recently, Jagan Mohan Reddy and his party leaders have met Governor Narasimhan and complained to him also. Now, they are going to complain to Prime Minister Narendra Modi and Home Minister Rajnath Singh also.   Though, it is nice excuse to meet the Home Minister, the actual reason for meeting him may be to appeal him to be liberal with his CBI cases. He sensed that NDA Government is going to handle the corruption cases with firm hand. CBI quizzing governors of Goa, West Bengal and AP, serving Income Tax notices to Congress party President Sonia Gandhi and Vice President Rahul Gandhi in connection with National Herald funds case and TDP Government constituting a committee to dig the corruption cases of previous governments, its decision to reclaim 8300 acres of land given to Lepakshi project etc. all are clearly indicating that it is only a matter of time to clamp him back into CBI cases. So, before it is proved to be too late, Jagan Mohan Reddy might take this excuse to meet Home Minister Rajnath Singh to appeal him to be liberal with his CBI cases.   However, he also knew about Modi government is firm on dealing with corruption cases, but instead of waiting for the troubles it would be better try to resolve them. Probably, that’s why Jagan Mohan Reddy is going to Delhi. He will camp there for two days on Thursday and Friday.

Thailand to invest Rs.1000 crore in AP

  Thailand has expressed its readiness to invest Rs.1000 crore in Andhra Pradesh. Today a group of businessmen accompanied Thai officials have met AP Chief Minister Chandrababu Naidu and told him that they are willing to setup two different type of industries in Chittoor, East and West Godavari districts. The Thai businessmen wants to setup a chicken processing unit at Chittoor district and fish and prawn seed units in East and West Godavari districts with an estimated investment of Rs.1,000 crore. If these projects are materialized into reality, they will provide direct employment to 2-3000 people and indirect emplyment to double that number. Since, the Thai Companies are planning for export oriented business, they will bring good foreign revenue to the country.

T-Government to decide on fee reimbursement soon

  T-Government to decide on fee reimbursement soon The fees reimbursement issue virtually brings EMCET counseling to a grinding halt in AP and Telangana states. The latest news is, Telangana government has prepared guidelines on this issue and will be announced in a couple of days. However, it is not going to touch the existing setup for admissions as it is to be maintained for the next ten years as per President’s order. Telangana government is planning to reimburse to those students, whose grandparents are settled in Telangana before year 1956. It will take declaration forms from the students at the time of their admissions on their nativity, so as to segregate Andhra students from the whole. Once, the guidelines are issued, counseling for EMCET may begin in Telangana.   Then Andhra Government also plan for counseling accordingly. However, it has not yet make-up its mind on how to deal with the students, ignored by Telangana government. State Finance Minister Yanamala Ramakrishnudu once stated that, if Telangana government doesn’t reimburse the fee to Andhra students settled in Telangana, then AP government will take care of them. However, there was also another statement came from him later that AP government will take-up this fees reimbursement issue to court to justify the students. Therefore, picture will come clear only after Telangana government comes-up with its decision on fees reimbursement.

Medical Counseling in AP from August 5th

  Medical, Health and Family Welfare Minister Kamineni Srinivasa rao told the media that Indian Medical Council (IMC) has allots 800 MBBS seats to AP state for the current year. He said that out of 800 seats given to AP, 500 seats will be allotted to government medical colleges and rest of the seats will be allotted to private medical colleges in the state.   Government Medical College at Nellore and Padmavathi Medical College in Chittoor gets additional 150 seats each this year. This year also Ongole Medical College gets additional 100 seats and SWIMS in Tirupati gets 50 seats. However, Siddartha Medical College (Vijayawada) and Medical Colleges in Visakha and Guntur didn’t get additional seats this year due to lack of proper infrastructure and facilities, but IMC granted additional seats to Tirupati, Ongole and Kakinada additional seats after the state government has assured to upgrade the facilities in these colleges. According to available information, private colleges in Nellore, Srikakulam are granted 200 and 100 MBBS seats simultaneously. Minister Srinivas said that medical counseling will begins from August 5th.

CBI questioning Governor Narasimhan

  The Rs.3600 Augusta Helicopters deal for which Rs.360 crores are alleged to be paid as bribes to Indian officials, politicians including former Air force Chief S.P. Tyagi and 12 others, is taking new twists as the CBI keep digging deep into the case. CBI officials, who have questioned two former governors M.K. Narayanan of West Bengal and B.V. Wanchoo of Goa in connection with the case, right now are questioning Governor Narasimhan in the same case.   MK Narayanan was former National Security Adviser, BV Wanchoo was head of the elite special protection group and Narasimhan, who was head of Intelligence Bureau during UPA regime in 2005. They all participated in a crucial where key changes in the tender specifications of the VVIP helicopter contract were made, including the service ceiling from 6000 meters to 4500 meters was reduced that enables Augusta Helicopter grab the deal.   Later, they were appointed as Governors of West Bengal, Goa and Andhra Pradesh states. M.K. Narayanan and Goa Governor B.V. Wanchoo have resigned to their posts after quizzed by the CBI officials. Therefore, people are curious to know whether Narasimhan also follow their path after quizzed by the CBI officials.

Will make Agriculture profitable Business: TDP

  Agricultural Minister Prattipati Pullarao in a press meet held along with state finance minister Ramakrishnudu yesterday said, “Our government is taking every measure to make agriculture a profitable business. We are forming a committee to chalk out action plan for ensuring a smooth supply of Seeds, Fertilizers, and Pesticides etc. to farmers’ in-time. The committee will also give it recommendations on the amount of input subsidy to be given to farmers. RBI Governor Raghuram Rajan has agreed to reschedule the crop loans after Chief Minister Chandrababu Naidu talked to him personally. Hence, RBI may issue orders to bankers for rescheduling the crop loans within couple of days. Hence, farmers may not face any problem in getting fresh loans for Karrif session,” said the Minister.

Uninterrupted Power Supply to AP soon

  AP state Finance Minister Yanamala Ramakrishnudu said that uninterrupted power supply pilot project will be implemented from October month. He said the state government has made all necessary arrangements for implementing this project granted by Centre. Chandrababu Naidu has promised to increase the pension of elderly people, widows and physically disabled from present Rs.200 to Rs.1000. Minister Ramakrishnudu declared that it also will be implemented from October 2nd on the eve of Gandhi Jayanthi. Agricultural Minister Prattipati Pullarao declared the RBI Governor Raghurama Rajan has agreed to Chandrababu Naidu’s appeal for rescheduling the crop loans. RBI may issue orders in a day or two, said the minister.

Polavaram issue rocks Parliament

  As asserted by NDA government, Union Home Minister Rajnath Singh has introduced Polavaram Ordinance in Lok Sabha today, after President Pranab Mukharji gives his consent. TDP and YCP MPs have supported the bill, but TRS MPs joined by Chattisgarh and Odisha MPs virtually brings the house to grinding halt with their protests. So, the house is adjourned to Wednesday.   Later, TRS MP Vinod speaking to the media strongly condemned the NDA Government’s attitude. He warned that if the Central government goes ahead with its decision, TRS will fight it out in Supreme Court.