CAG raps TDP, YSRCP governments over capital project in Amaravati

The Comptroller and Auditor General of India (CAG) has made some serious observations pertaining to the capital city of Amaravati, asserting that unfruitful expenditure was incurred on the capital project and that the purpose of the Land Pooling Scheme (LPS) was not achieved.

The Comptroller and Auditor General of India (CAG) has made some serious observations pertaining to the capital city of Amaravati, asserting that unfruitful expenditure was incurred on the capital project and that the purpose of the Land Pooling Scheme (LPS) was not achieved.

The CAG, in its compliance report for the financial year ended in March, 2021, rapped both the previous and present State governments. The report was tabled in Andhra Pradesh State Assembly on September 25 (Monday).

The CAG  rapped the successive State governments asserting that the land acquired through the Land Pooling Scheme (LPS) had been lying idle after spending ₹2,244.94 crore, and that the objective of the LPS was not achieved.

The CAG also posited that the change in policy resulted in uncertainty over 55 packages that are still open contracts and require ₹28,047.82 crore for completion.  

It pointed out that the consultants for the preparation of the Master Plan were selected by the then Telugu Desam Party (TDP) government on a nomination basis rather than following the procedures.

The recommendations of the Expert Committee were not considered and the Andhra Pradesh government opted to acquire 70% of the total land required for the capital city through land pooling mechanism, said the CAG said, adding that it ‘left (a) huge financial burden’ in the immediate and future periods. 

The Andhra Pradesh Capital Region Development Authority (APCRDA) and Amaravati Development Corporation Limited (ADCL) got into contractual agreements for infrastructural packages for ₹33,476.23 crore ‘without firming up a financial plan’.