Political Diary

The Union government is soon going to set up a nuclear power plant near Pulivendula, the constituency of the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhar Reddy.Dr Reddy said in Delhi that around 1,500 acres was required for setting up the 2,000 MW unit. The state-owned AP Genco and the Nuclear Power Corporation have tentatively decided to set up the plant as a joint venture in M. Tummalapalli village near Pulivendula in Kadapa district.
An energy giant of the US is also likely to be involved in the project. A formal announcement is expected during the visit of the US secretary of state, Mrs Hillary Clinton. This will be part of the operationalisation of the Indo-US civil nuclear deal which was signed last year by the UPA government.
Another nuclear power plant is expected to be located on the coastal belt of Gujarat. Dr Reddy said that a high-level committee will be visiting Tummalapalli to study the location. Already, the Uranium Corporation of India Limitted (UCIL) has taken up uranium mining in the area at a cost of Rs 2,000 crore.
In fact, the mining operation has made Tummalapalli a natural choice for setting up a nuclear power plant as uranium stocks are important in generation of nuclear energy. The UCIL mine can produce 1,50,000 tonnes of uranium a year. At present, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is engaged in land acquisition for the nuclear power plant.
The Atomic Energy Commission chairman, Dr Anil Kakodkar, and the UCIL chairman, Mr Ramendra Gupta, visited the area last October. “Uranium mining and refining facilities are very crucial and the Centre is also relieved that there is no opposition from the local people and political parties,” said a senior official of the energy department.

The Andhra Pradesh government has invited fresh global bids for the Rs.121-billion ($2.4-billion) Hyderabad Metro Rail project in a public-private partnership (PPP) mode.
The notification issued late Thursday by Municipal Administration and Urban Development Principal Secretary C.V.S.K. Sarma said the bid documents would be available from July 21.The last date for submitting applications for pre-qualification is Sep 7.
The fresh bids were invited after the government July 7 scrapped the earlier contract awarded to a consortium led by Maytas Infrastructure, a firm owned by the family of B. Ramalinga Raju, the disgraced founder and former chairman of Satyam Computer Services, after it failed to achieve the financial closure by the extended deadline.
The Maytas-led consortium held 52 percent and the state government 16 percent equity in the project.According to the latest notification, the indicative cost of the project is Rs.12,132 crore (Rs.121.32 billion). The elevated metro rail project will be executed on design, build, finance, operate and transfer basis.
Officials said the companies participating in the bids have to pass through pre-qualification bidding before being allowed to participate in technical and financial bidding.Thursday’s notification was issued four days after the government decided to invite fresh global tenders. This followed the scrapping of the agreement signed with the Maytas Infra-led consortium.
Municipal Administration Minister Aanam Ramanarayana Reddy had Monday announced that the process of selecting a new developer would be completed by Nov 15.Earlier, when scrapping the Maytas contract, the government had forfeited the Rs.71 crore (Rs.710 million) deposited by the consortium as performance guarantee, and as advance towards the Rs.30,311 crore (Rs.303.11 billion) it promised to pay over the concession period of 35 years.
The government this time has decided to double the performance guarantee money. The company being awarded the contract will have to deposit one percent of the total cost as performance guarantee.Earlier it was half a percent.
The three other consortiums to have qualified in the earlier process will have to start afresh and will not be given any preference, officials said.The other three consortiums which had cleared the technical bids earlier were led by Essar Constructions, Malaysia’s Magna Allmore, and Reliance Infrastructure. The fourth, led by GVK, had backed out.
The central government had granted 20 percent of the cost (Rs.23.63 billion/Rs.2,363 crore) as Viability Gap Funding (VGF) -- a scheme aimed at reducing capital cost of projects by credit enhancements.Though Maytas had refused to avail of this, the government said the fund can still be used.
The government is hopeful that the three-route, 71-km project will be completed in three to four years.

Chief Minister YS Rajasekhara Reddy has expressed his willingness to take an all-party delegation to Delhi to prevail upon the Centre to stop the projects (road-cum-barrages and Babhali) being constructed on Krishna and Godavari by Karnataka and Maharashtra governments, respectively. The delegation was expected to go to Delhi after arrival of Prime Minister Manmohan Singh who was on a fiveday visit to France and Egypt.
An all-party delegation comprising former minister Bojjala Gopalakrishna of Telugu Desam Party, Nayani Narsimha Reddy (TRS), YV Rao (CPM), K Ramakrishna (CPI) and others met the Chief Minister at the latter’s camp office here this morning.
They requested him to lead an all-party team to Delhi in an attempt to stall construction of 55 road-cum-barrages on Krishna and Babhali project on Godavari by Karnataka and Maharashtra governments respectively. Major irrigation Minister Ponnala Lakshmaiah was also present.
The leaders concerned urged the State Government to lead an allparty delegation and apprise Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi of the grave consequences of the projects being taken up by the neighbouring governments in the upper reaches of Krishna and Godavari rivers.
They apprehended that construction of works would scuttle downward flow of river waters.
Talking to newsmen later, Ponnala asserted that leading an all-party delegation by the Chief Minister was intended to see that the `guilty’ who indulged in illegal construction of projects were exposed. The State Government along with all political parties together would bring pressure on the Centre for the purpose.
Talking to Express over phone, the minister said that the issues (relating to projects) were already placed before the Tribunal and hearings have started yesterday. Another case of contempt of Court orders was before the Supreme Court.
Rajasekhara Reddy has agreed to take a delegation after the Prime Minister returns to the country, he added.

The Andhra Pradesh cabinet Wednesday approved a proposal for setting up an industrial park in the coastal district of Visakhapatnam and allotted over 300 acres of land for the project.
The state cabinet, at a meeting chaired by Chief Minister Y.S. Rajasekhara Reddy, approved the proposal for industrial park in Rachepalli village of Visakhapatnam district.Briefing reporters after the meeting, Information and Public Relations Minister J. Geeta Reddy said 334.95 acres of land was allotted to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for the industrial park.
In another decision, the cabinet approved giving six acres of land on lease to the Indian Silk Mills, Bangalore for establishing a mini spun silk mill in Anantapur district.
The mill, the first of its kind in Andhra Pradesh, will come up Hindupur mandal of Anantapur district bordering Karnataka. "The mill will benefit 10,000 sericulturists. They will get additional annual income of Rs.5,000," Reddy said.
She said an action plan would be prepared for modernising Hyderabad’s underground drainage and storm water drains at a cost of Rs.10,000 crore.
The minister said the state government has sent a proposal for funding the second phase of Multi Modal Transport System (MMTS) in Hyderabad. The first phase of world class Outer Ring Road (ORR) covering 80 km will be completed in 2010 while the remaining stretch of 80 km will be ready in 2012.
During the cabinet meeting, Reddy said, the chief minister asked his colleagues to take the ensuing polls to the Greater Hyderabad Municipal Corporation (GHMC) seriously. He said the ruling Congress party should win all 150 seats in the municipal body as the government has undertaken development schemes in the state capital at a cost of Rs.5,551 crore during the last five years.

Chief Minister Y S Rajasekhara Reddy on Tuesday appealed to the people of Greater Hyderabad to extend their support to the ruling Congress for the ensuing elections of Greater Hyderabad Municipal Corporation (GHMC) to be held next month. He stressed upon the fact that the whole-hearted support of voters of Twin Cities had helped the Congress sweep the polls both in the Assembly and Lok Sabha.
“The verdict given by you in the last elections will be held in high esteem and we will do our best for the allround development of the city,” he said.
The Chief Minister assured people of Greater Hyderabad that he would ensure all the civic amenities that are required for day-to-day needs. He appealed to the people to help the State Government in developing the city on par with international standards.
After inaugurating the Road over Bridge at Seetaphalmandi, he said that even the State Government shared the relief and happiness of the public in having completed the RoB.Later, he climbed on top of the mini bus in which he toured the city and waved to the public and greeted people saying ‘Namaste, Namaste’.
While laying the foundation stone for Maisaram Water Supply Zone being undertaken by the HMWS&SB at a cost of Rs 14 crore, Rajasekhara Reddy said that the Congress government would develop all sections of society in the Old City.He stressed that it was the Congress government which had always fulfilled its promises and made sure that people came first.
The previous Telugu Desam government on the other hand had failed to develop the city, he said.
Inaugurating an Urdu Model School behind Falaknuma Palace built by the Andhra Pradesh Housing Corporation, he said that it was good to see that CBSE in Urdu medium was being introduced. Because of reservation for Muslims, seven Muslim students had even qualified in Group-I, the CM said.
Earlier, the Chief Minister laid the foundation stone for Prashanthi, Senior Citizen Housing Colony and also visit Model units of Sahabhavana Township by Rajiv Swagruha Corporation (Rs 460 crore), followed by inauguration of LIG Housing Colony at Bandlaguda built by AP Housing Board (Rs 21 crore).He laid the foundation stone for Bandlaguda Housing Colony in Survey No. 82 of Bandlaguda to be built at a cost of Rs 33 Crore. As many as 880 houses (G+3) and 55 Blocks would be constructed.
Later, Rajasekhara Reddy inspected Outer Ring Road (ORR) of Package-V under Phase-IIA at Tukkuguda.The Phase II A work is going on at brisk pace from Narsingi to Patencheru and Shamshabad to Pedda Amberpet covering a length of 62.30 km. It is divided into five contract packages.
These works are taken up on BOT (annuity) basis at a cost of Rs 2,349 crore. Works commenced in December 2007 and would be completed next year.Rajasekhara Reddy also inaugurated the Noor Mohammad Kunta Sewerage Treatment Plant (STP), near Agricultural University Gate.
The cost of the 4 MLD capacity STP is about Rs 6.90 crore.
The last stop of the day for the CM was the laying of a foundation stone for Rethibowli-Aramgarh Road being taken up at a cost of Rs 61 crore.Home Minister Sabita Indra Reddy, Irrigation Minister Ponnala Lakshamaiah, Health and Family Welfare Minister D Nagender, BC Welfare Minister Mukesh Goud, MP Asaduddin Owaisi and others were present.

L’affaire Nannapaneni Rajakumari refuses to die down as the focus has shifted to Ongole from Karamchedu on Tuesday with TDP and Congress leaders resorting to protests and counter-protests.
Initially, the TDP leaders staged a dharna in front of the collectorate and barred the entry of staff into the offices, demanding the arrest of Parchur MLA Daggubati Venkateswara Rao for encouraging the Karamchedu Congress leaders to attack Rajakumari on Monday. Senior leaders Karanam Balaram, Rajakumari, Sidda Raghava Rao, Babu Rajendraprasad and Gottipati Narasaiah were present at the dharna.
After caning the activists, the police shifted the senior leaders into the vans. In the process, Rajakumari slipped from the police van and fell unconscious. Angered over the development, Balaram entered into a heated argument with the police.
After arresting the leaders, the police shifted Rajakumari to the government hospital for treatment.
The situation turned volatile when the Youth Congress activists also took out a rally in the town demanding the immediate arrest of Rajakumari for her abusive language against Daggubati and his wife Purandeswari. They were later dispersed by the police.
Meanwhile, Daggubati has alleged that Rajakumari is known for enacting such theatrics. "I strongly suggest Chandrababu Naidu and Rajakumari to open a drama company of their own as they have lot of time to entertain the people," Daggubati fumed. He alleged that Rajakumari acted as if she had received a bleeding injury. He said Naidu has deputed Rajakumari to Karamchedu with a mission to unpopularise him.

The state government has finally decided to call fresh tenders for the Hyderabad Metro Rail project.This decision, taken at a high-level meeting chaired by the Chief Minister, Dr Y.S. Rajasekhar Reddy, puts to rest rumours that the state government would take up the project on its own with the support of Central infrastructure fund.
The high-level meet opted for Public-Private-Partnership (PPP), in which global tenders would be called.Talking to media persons, the municipal administration minister, Mr Anam Ramnarayana Reddy, along with the Metro Rail project managing director, Mr N.V.S. Reddy, assured that the project cost would not be increased, though there was a delay of one year.
Mr Ramnarayana Reddy also said the Viability Gap Funding (VGF) factor would be retained. The firm or consortium that wins the bid will get nearly Rs 4,000 crore under the VGF component.The government decided to start the tender process from July 16 and wants to grant the contract in four months.
“The Chief Minister specifically instructed that by November 15, the tender should be awarded,” said Mr Ramnarayana Reddy.Though the government initially thought of contacting the second best bidder Magna Allamore, Siemens consortium and Reliance Infrastructure consortium, they were not keen on taking up the project under the norms of previous tender. “They also favoured fresh bidding,” said a senior official.
The project will also follow the changed PPP guidelines laid down by the Centre a month ago, which would block frivolous companies from participating in the bid.Under the new norms, a developer bidding for a PPP project worth Rs 500 crore have a record of executing projects worth Rs 1,000 crore. Earlier, the bidder need to have executed projects which are only one-and-a-half times the cost of the proposed project.Further, the state government has decided to increase the performance guarantee deposit from 0.5 per cent to 1 per cent. This means the successful bidder would have to deposit bank guarantees worth Rs 120 crore with the government. All this would make the bid process more serious.

Chief Minister Y S Rajasekhara Reddy today asked bankers to grant crop loans to all eligible farmers in the State, including tenant farmers, by simplifying procedures and removing needless hurdles.
He specifically asked bankers to cover 5 lakh number new `non-loanee farmers’ during 2009-2010. “Under any circumstances, no eligible farmer should be denied crop loans on the pretext of rules and procedures,’’ the Chief Minister said, while interacting with officials on the eve of State Level Bankers’ Committee meeting to be held at Jubilee Hall tomorrow.
The chief minister pointed out that the banking sector could not achieve the target for crop loans during 2008-09 in spite of record agricultural production. The achievement was only 82.35 per cent during 2008-09. He wanted that the banks achieve the target for the year 2009-10 well in advance.
Reddy further suggested that crop loans to tenant farmers be substantially increased. He instructed the agricultural department to conduct farmers’ meets in all villages and send the list of tenant farmers to bank branches.He suggested that the government departments create opportunities for farmers to take up innovative projects under agriculture and allied activities by providing sufficient infrastructure.
He asked the officials to identify bankable schemes and formulate suitable programmes with subsidy component to enable the banks to provide loans under agricultural and industrial sectors. He wanted that the banks review the position of disbursements under Annual Credit Plan through their branches at regular intervals. He asked the officials to closely monitor loan disbursements and see that targets under the Credit Plan be achieved.
The chief minister said major focus should be given to horticulture schemes due to the ever increasing demand for vegetables. Similarly, the banks should finance dairy and sheep rearing schemes. He suggested that all farmers should be encouraged to take up dairy as a supplementary activity.
Reddy observed that aggregate advances of banking sector in the State at the end of March 2009 stood at Rs 2,10,294 crore, as against Rs 1,48,015 crores at the end of March 2008, registering a growth rate of 42.08 per cent during 2008-09. Agricultural advances by March 31, 2009 stood at Rs 51,487 crores constituting of 24.48 per cent of net bank credit, as against the RBI norm of 18 per cent.
He also referred to complaints from several farmers that bankers were refusing to disburse fresh loans to farmers who were benefited from loan waiver scheme announced by the Central Government last year. ``The loan waiver scheme was aimed at rescuing debt-ridden farmers. It does not mean they do not require fresh crop loans,’’ he said.

The rivalry between the TDP and Congress took an ugly turn here today with women legislators and one MLC of the TDP being insulted.TDP MLC Nannapaneni Rajakumari was beaten up to the point that she sustained injuries by Congress activists at a meeting here. Further, Satyavedu MLA Syamala, Srungavarapukota MLA Lalita Kumari, Guntur coroporator N Vijayalakshmi, MLC V Rajendra Prasad and Karanam Balaram were also attacked by the Congress activists. Some of them were injured in the attack.
Trouble broke out when one Suresh, who works as a field assistant in the Karamchedu panchayat in charge of NREGP works in the area, filed an SC/ ST atrocity case against Karamchedu village sarpanch Daggubati Anasuya and Daggubati Nageswara Rao besides two others _ Ramana and V Ramudu _ when they came along with a few workers of the NREGP to complain to Daggubati Venkateswara Rao that field assistant Suresh was not paying the workers correctly.
The sarpanch, her followers and the workers had reportedly complained to Daggubati Venkateswara Rao on June 21 that the field assistant was shortchanging the workers besides delaying the payments.But, Suresh, who was present along with Parchur MLA Daggubati Venkateswara Rao, then filed an SC/ST atrocity case against Karamchedu sarpanch Daggubati Anasuya and her husband Daggubati Nageswara Rao, Ramana and V Ramudu, almost two days later, ie on the evening of June 23.The police recently arrested three, except the sarpanch. The TDP sent a fact-finding committee to study the issue.
The committee comprised Rajakumari, Syamala, Lalita Kumari V Rajendra Prasad and Vijayalakshmi besides Karanam Balaram. The committee conducted a meeting in the Karemchedu village today at which Rajakumari allegedly spoke against Parchur MLA Daggubati Venkateswara Rao and alleged that Rao was acting cowardly by getting his aides file cases against the TDP cadre.
A crowd of 400 Congress supporters, standing right outside the place where the TDP commitee was conducting a meeting, suddenly created a scene at the meeting. During the scuffle, one of the supporters even tried to pull Rajakumari’s saree. Rajakumari was injured when she was hit by someone in the mob. Balaram and the other women MLAs too were not spared and were manhandled. The police intervened to bring the situation under control and set up a picket in the village to prevent further tension. Police told Express that the situation, though tense, was completely under control. The police registered a case at the Karamechedu police station.

Admitting the problem of ’fake pattadar passbooks’ was rampant mainly in Anantapur and Kadapa Districts, Andhra Pradesh Chief Minister Y S Rajasekhara Reddy has assured bankers to provide soft copy of village-wise records for verification of ownership.’’The problem is very severe in Anantapur District, native place of Agriculture Minister N Raghuveera Reddy.’’After that, fake pattadar passbooks are rampant in Kadapa,’’ the Chief Minister said after inaugurating the 166th State-level Bankers Committee (SLBC) Meeting here yesterday.
The State Government had taken up the ’’Bhoobharati’’ Scheme on a pilot basis to survey land in the State based on satellite images.But this would take more time to complete, he said.He stressed on the need for bringing non-loanee farmers under the purview of the improved crop insurance scheme to avoid vicious cycle of indebtness and evolve a viable financial system.

The Andhra Pradesh government has decided to invite fresh global bids for the Rs 12,200 crore Hyderabad Metro Rail Project that was taken away from Maytas Infra after funding related problems.
The process will be initiated on July 16 and completed by November 15, according to state Municipal Administration Minister Aanam Ramanarayana Reddy."We want to put the Metro on tracks within the next three to four years," the Minister told reporters soon after a high-level review meeting on the HMR Project, chaired by Chief Minister Y S Rajasekhara Reddy here today.
Last week, the state government cancelled the contract awarded to Maytas Infra-led consortium after it failed to tie up funds despite a three-month extension. Maytas Infra is promoted by kin of disgraced Satyam founder B Ramalinga Raju.
Failure to mobilise funds forced the government to take stock of the project and firm up a decision on cancelling the award.Accordingly, the Chief Minister discussed the project with the Municipal Administration Minister and top officials here today.
"Everything else about the project, including the cost, will remain the same. If necessary we will utilise the viability gap fund offered by the Government of India," Ramanarayana Reddy said.
In view of the past experience, the bid security for the project was enhanced from 0.5 to one per cent, implying that the successful bidder would have to pay Rs 120 crore to the state government.

The TDP seems to be implementing operation Swagruha in a very calculated manner. As part of the move, the party hopes to bring back all the senior leaders who had quit the party before elections and are now disillusioned with PRP, sources said.
According to party sources, even the former home minister T Devender Goud and K Vidyadhar Rao who had switched over to PRP hoping to emerge as big leaders have been trying to build bridges with TDP president N Chandrababu Naidu during the last few days. Naidu, who has been not so keen about Goud initially, now seems to have softened his attitude and is veering round the opinion that re-entry of Goud could be an asset for the party in view of the forthcoming GHMC elections.
Goud, who was considered to be a big-time leader, quit TDP and floated his own party called Nav Telangana party and having failed to attract more leaders and cadre from TDP and unable to run the outfit merged it with PRP. He contested from Malkajgiri Lok Sabha and Ibrahimpatnam assembly seat lost the polls from both places. Since then he has been sulking even in PRP and has not been very active.
Another leader K Vidyadhar Rao has also been inactive and is understood to have sent feelers to TDP. Two other leaders from north coastal, Tammineni Sitaram and K Kalavenkat Rao are also learnt to be considering home coming though both of them had officially denied making such moves. It is also being said that former energy minister K Subbarayudu who had joined PRP just before the elections, is also under pressure from cadre to get back to TDP.
At a time when Congress party is alleged to be indulging in operation Akarsh and trying to lure its MLAs like Prasanna Kumar Reddy from Nellore district and harassing Kovvur MLA T V Rama Rao, TDP feels that if it takes back all those who left the party, it could send clear signals to the rank and file that it was the only alternative to Congress party and also cause political damage to PRP which it feels had marred its chances of coming to power.
In this situation, Naidu is understood to have given green signal for taking back if these leaders voluntarily want to come back to party fold.

Ever since, Praja Rajyam party was defeated in the elections, the downslide of the party gains momentum, and it was accelerated with the unending resignations of its senior leaders. The party and its Mega Boss Chiranjeevi keep watching helplessly those departing leaders.
Yesterday, it was the state organising secretary K.Mohana Rao, and tomorrow most probably it’s Tammineni Sitaram. It’s predicted that Tammineni will announce his decision at any time. Now, whoever remains inside can be counted as retired politicians, who don’t have any other alternative except PRP.
It seems PRP is planning to windup its business in a systematic method. No leader except Chiranjeevi is entrusted with a party activity. An occasional statement that appears in the news papers is the only live evidence of the party existence.
Its pity that a party which was launched with high expectations amid huge following, is in no time came to stand still.