Friday, 15 July 2016

Chandrababu Naidu's extravaganza for personal fancies


Chandrababu Naidu has spent over Rs.100 crores for his personal comforts, chartered flights & fancies. His recent Russian trip with a team and hiring chartered aircraft paying crores of rupees is another addition to the list apart from extravagant swearing in ceremony and capital city's foundation stone laying by PM Modi.


Lenders & Financiers will always be wary of this type of spending as reflected by Govt of India's withholding budget deficit gap financing for years 2014-15, 2015-16 for thorough scrutiny and other assistance as promised in AP Reorganization Act 2014.

US lawmakers admonished CEO's of GM, Chrysler & Ford for travelling chartered fights from Detroit to Washington DC for seeking $25 billion bailout package from US Federal Government on November 19, 2008, even though it was their standard policy for safety of top executives.


Full article is at: http://edition.cnn.com/2008/US/11/19/autos.ceo.jets/

If people of AP believes that Chandrababu Naidu will get in funds for investments from abroad, they are mistaken. Funding agencies do thorough due-diligence to ensure that their investments are safe and earn assured returns. And this type of extravaganza falls short of their expectations. Trying to create hype and attract investments by making power point presentations and colorful brochures are of no use when ground reality is contrary to it.

My View:
Chandrababu Naidu acquiring land in the name of "Land Mobilization" for Capital Amaravati is in fact state doing real estate business is unethical & wrong. The right method is to identify land and acquire it, in 5 phases of 5,000 acres each, and pay compensation as per statutes. For the capital all that is needed is to construct Raj Bhawan, Assembly & Council, High Court, Secretariat , Offices & Quarters and some more land for public utility purpose like Convention Center, Guest Houses etc. All put together, 10,000 acres would be sufficient but 25,000 acres would be splendid for accommodating institutions like education city, health city, information technology city, film city, sports village, business & financial districts etc. Industrial growth (non polluting) could be earmarked on degraded forest land denotified around the capital. We don't need to build iconic structures with Singapore help. We can have decent, economic, efficient buildings. Iconic buildings should be limited to Raj Bhawan, Assembly & Council, High Court, Secretariat and 5* Hotels only. No wastage of money through extravaganza. In India, we have enough expertise to undertake this activity. Thinking of competing with Hyderabad, Bangalore & Chennai is futile. In fact we should fall back on these cities. For building capital Amaravati we could obtain financial help from Center, borrow at low interest & long term loans from HUDCO and World Bank. Providing air connectivity to all metros in India and nearby international destinations like Dubai, Singapore & Hong Kong with further connections to world would be great idea for Trade, Tourism and IT development.

Nothing comes FREE in this word. Paying by cash is the cheapest. Any other mode will have inherent and much higher payments.

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