AP Report 2019-final

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(iv) Petrochemical Complex Government of India Commitment: Section 93 – Schedule 13 – Infrastructure item 4. “4. IOC or HPCL shall, within six months from the appointed day, examine the feasibility of establishing a greenfield crude oil refinery and petrochemical complex in the successor State of Andhra Pradesh and take an expeditious decision thereon;” Government of Andhra Pradesh (GoAP), GAIL India Limited (GAIL) and HPCL signed a MoU on 27 January 2017 at Vishakhapatnam for the Petrochemical Complex with an estimated cost of Rs. 32,901 Crore at Kakinada, Andhra Pradesh. Feasibility study has been carried out for the Petrochemical Complex. Oil PSUs have indicated to the Government of Andhra Pradesh that Viability Gap Funding (VGF) is necessary to make the project viable. 12,13. The Union Home Secretary, on 12 March 2018 has directed that the matter of VGF be taken up with the Ministry of Finance; the issue is still pending. Status Report - Union’s Commitment to Andhra Pradesh Government of India should provide the Viability Gap Funding generously, so that the project can be executed. (v) An integrated steel plant in YSR District Government of India Commitment: Section 93 – Schedule 13 – Infrastructure item 3. “3. SAIL shall, within six months from the appointed day, examine the feasibility of establishing an integrated Steel Plant in YSR District of the Successor State of Andhra Pradesh;” As per the Thirteenth Schedule of the Andhra Pradesh Reorganisation Act, 2014, Steel Authority of India Limited (SAIL) 14 examined the feasibility of establishing an Integrated Steel Plant in YSR District of Andhra Pradesh. As per the feasibility report, setting up of Steel Plant was found prima facie not financially viable. Recently, the Government of Andhra Pradesh announced its decision to establish the Steel Plant as a State enterprise. 12 Flagship Scheme Details of MoPNG, (Details upto and including 9th April 2018 Ministry of Petroleum and Natural Gas, http://pibarchive.nic.in/ 4YearsOfNDA/Comprehensive-Materials/PNG.pdf 13 HPCL and GAIL requested State Government to consider providing VGF in the form of interest free loan of Rs. 1,438 crores per year to be provided for a period of 15 days beginning from Project Zero date. The interest free loan of Rs.1,438 crores per annum will be repaid by GAIUHPCL JV Company commencing from the 16th year onwards and ending in the 30th year after Project Zero date, free of any interest. In the meeting taken by the Hon’ble Chief Minister on 13.06.2017, GAIL and HPCL authorities were requested to provide the quantum of tax likely to be accrued to the State from the project under GST regime, to have further discussions. (Source: aplegislature.org/...on...AP...pdf/b706a359- 1eac-46eaa73f-6dfd35a6dfd7 (Downloaded on 29 05 2018) 14 A Task Force comprising of representatives from the Central Government, State Government and Central Public Sector Enterprises under the Ministry of Steel was set up on 19.10.2016 to consider the feasibility issues and prepare a roadmap for setting up of steel plants.It has held series of meetings since then which were attended by the representatives of the State Governments of Andhra Pradesh as well. The last meeting of the Task Force, being sixth in the series of meetings, was held on 12.06.2018. (PIB 14-June-2018). - 77 -
Projects to Improve Infrastructure, Connectivity and Investments in Andhra Pradesh (vi) A New Railway Zone - 78 - Government of India Commitment: Section 93 – Schedule 13 – Infrastructure item 8. “8. Indian Railways shall, within six months from the appointed day,examine establishing a new railway zone in the successor State of Andhra Pradesh and take an expeditious decision thereon;” At present, South Central Railways is catering to the railway needs of major portion of Andhra Pradesh and certain parts of Maharastra and minor portion of Karnataka. South Central Railway presently has six Railway Divisions – Secunderabad, Hyderabad, Nanded, Vijayawada, Guntur and Guntakal. The Visakhapatnam (Waltair Division) is under East Coast Railway with headquarters at Bhubaneswar and all the districts of North Andhra are under Visakhapatnam Division. In the Successor State of Andhra Pradesh, four Railway Divisions –Visakhapatnam, Vijayawada, Guntur and Guntakal – are located. Ministry of Railways (PIB 04 August 2015) says that there is no plan to set up new divisions in Indian Railways, except those with headquarters at Gulbarga, Jammu and Silchar, which were announced in February 2014. In addition, a Committee of senior officers from Railways has also been constituted to examine the issue of setting up a new railway zone in the Successor State of Andhra Pradesh, in terms of Item No. 8 of Schedule 13 (Infrastructure) of Andhra Pradesh Reorganisation Act, 2014. It is understood the Committee has submitted its report. However, the decision of Government of India is still awaited. The Chief Minister has addressed the Minister for Railways, on 08 December 2014 and 26 February 2016 requesting expedited action for formation of new Railway Zone in the Successor State of Andhra Pradesh at Visakapatnam bringing the four divisions viz., Visakapatnam, Vijayawada, Guntur and Guntakal in AP under the purview of Visakapatnam Zone. Creation of a New Railway Zone is a relatively low-cost demand, but a highly emotive issue. Therefore, Government of India may concede the demand expeditiously and create a New Railway Zone. Recommendations: A review of all the Schedule XIII Infrastructure Project shows that five of the projects have not been implemented, and three of them are in initial stages of implementation. Of these, Petrochemical Complex, Metro Rail Projects, Vizag-Chennai Industrial Corridor (VCIC), rapid rail and road connectivity to the Capital Region and International airports are critical. These projects will stimulate economic activity, further investments, industrialisation and job-creation in the State which has relatively low level of employment in industries and services. Therefore, Government of India should provide generous assistance to these projects which have multiplier effects on the economy of the State and, execute them speedily.
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Table of Contents Status Report - U
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FOREWORD Status Report - Union’s
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Introduction Status Report - Union
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The people of all sections of the S
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A. DISALLOWED EXPENDITURE 1. Financ
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Security Pensions should be conside
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However, the State of Andhra Prades
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