Andhra Pradesh urban development minister Botsa Satyanarayana’s statement on the possible relocation of capital city from Amaravati to other place and the subsequent comments made by other YSR Congress party leaders on the issue have created ripples in national capital of New Delhi.
While Rajya Sabha member Y S Chowary, who had defected from the Telugu Desam Party to the Bharatiya Janata Party recently, made a scathing attack on the Jagan government for trying to shift the capital from Amaravati, sources said the Narendra Modi government has decided to watch further moves from chief minister Y S Jagan Mohan Reddy in this regard.
According to these sources, the Centre would not make a direct intervention in the issue of capital city since it is a state subject. At the same time, the state cannot ignore the Centre’s observation in this regard.
“As per the AP Reorganisation Act, the Centre has to provide funds to the state for the construction of new capital city. But it cannot extend funds if the capital is relocated. Already, it has released Rs 1500 crore for the capital and if the capital is shifted, it might refuse to release further grants,” a source said.
In this regard, the Centre might intervene and ask for accounts for the money it had granted for the capital in the past.
The state might also find it difficult to raise loans for the construction of new capital without the Centre’s support.
When asked about the capital plan shift, Union Minister of State (MoS) for Home Affairs G Kishan Reddy made it clear that the Centre would not interfere in the state’s matter, but would watch the developments.
“At present, there is nothing much for us to say,” he said.