Investment flow good in State: Buggana

‘A few big companies are in talks with govt.’

Making it clear that the government did not give up its demand for Special Category Status (SCS), Finance Minister Buggana Rajendranath Reddy stated on Thursday that investments amounting to ₹32,000 crore were made in the State till October 2019 as per the Industrial Entrepreneurs’ Memorandum filed with the government. It was over and above the committed investments of ₹15,953 crore, he said.

But in 2018, only ₹9,500 crore investments came to the State against ₹19,800 crore for which MoUs had been signed. Investments made in 2017 stood at ₹4,500 crore.

The YSRCP government allotted 1,057 acres to 1,252 companies through the A.P. Industrial Infrastructure Corporation (APIIC), Mr. Rajendranath Reddy told the media at the Secretariat.

Mr. Rajendranath Reddy said some big companies such as POSCO, Grasim Industries, Starchem Technologies, ATC Tyres, and Hyundai Steels were in negotiations with the government for setting up their units.

This proved that the government was sincere in attracting investments and creating the required infrastructure without creating much hype.

‘Burden of arrears’

Industrial incentives to the tune of ₹3,500 crore were not paid in the last five years, he said, and alleged that tenders worth ₹1 lakh crore were called for various works without even having the Detailed Project Report.

Besides, payments were not made towards bills amounting to ₹40,000 crore. These lacunae made the present government’s job difficult, but it was clearing the hurdles one by one, he said.

The Discoms and the Civil Supplies Corporation had debts exceeding ₹20,000 crore.

Mr. Rajendranath Reddy said that A.P. had the flexibility to borrow ₹38,000 crore, subject to the Fiscal Responsibility and Budget Management (FRBM) rules.

Finance panel

He observed that A.P. would be getting less funds from the 15th Finance Commission because it could not fulfil the norms on population and poverty.

The devolution of funds to Karnataka and Kerala was also going to be lower for identical reasons, he added.

In spite of various constraints, the government could reduce its debt burden from ₹40,000 crore to ₹20,000 crore, the Minister added.

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