Page 1

Polvaram on the swing

With Centre coming forward to fund Polavaram project, Chief Minister Chandrababu Naidu is leading from the front to make the multi-purpose irrgiation project a reality. Besides personally monitoring the progress, the CM is frequently making ďŹ eld visits to expedite the works.

CONTENTS Nabard ready to fully fund Polavaram


AP Protests againt illegal Projects On Krishna river

The CM is expediting the works even as Nabard is all set to release the first instalment of loan to the P.olavaram Project Authority in October.


Nostalgic CM foresees better Tomorrow

16 22


11 17

What the centre offered..



Stree Nidhi loans


Journalist and great editor of pre-independence era C Y Chintamani

Happening Andhra

AP and the story of Special Status

Int’l brICS Poetry festival


CbDT extends 5-yr tax sops to 7 districts

Succour to the Unorganised Workers



Various developments across the state of Andhra Pradesh.



Winds of Change

Chief Minister’s Social Network


State concern over tax admn

AP Achieves 100% Electrification


Cairn to spend $150 million in AP


Published Monthly In English & Telugu October 2016 Volume:11 Issue:4 Salivahana Era 1938

Commissioner S Venkateswar IIS Editor Ramesh Babu Kandula Executive Editor Naresh Nunna

Cover Page CM’s heli-visit of Polavaram Second Cover Polavaram works take off

Third Cover CM in various proigrammes

Fourth Cover APIIC Advt on Sunrise State

Published by: Information & Public Relations Department Government of Andhra Pradesh Hyderabad - 500 028 Ph: 040-23300258

Views expressed by various authors in this issue reflect their personal opinions. Design Karthik Beesu

Photos: T.Srinivasa Reddy, Vijayawada Printed at Caxton Offset Pvt. Ltd. Hyderabad Each Issue : Rs 5/Annual Subscription : Rs 50/-


Forget labels, look at funding

At last, there is clarity on the special assistance to be provided to Andhra Pradesh by the Centre. Even while expressing his displeasure at being denied the promised Special Category Status, Chief Minister Chandrababu Naidu wisely chose to accept the Special Package announced by Union Finance Minister Arun Jaitley.

There were some vain attempts at provoking the public opinion against the state leadership for welcoming the Package. Interestingly, these are the same people who, during the process of bifurcation, indulged in political one-upmanship instead of coming up with concrete demands for the development of successor state post-bifurcation. As a result, Andhra Pradesh has been left reeling under the impact of irrational division.

By resorting to the same tactics, the detractors seem hell bent on causing irreparable damage to the future of Andhra Pradesh over the recent announcement by central government. In insisting that the CM should not accept the Package, their intentions appear motivated by political calculations rather than the long-term interests of the state. While the Chief Minister kept up the pressure over Special Status till the last minute, he left no stone unturned in the alternative scenario to extract as many benefits to the state as possible. This is what a pragmatic leader would do in the face of hard realities.

The Package indeed provided some real benefits to the state, including full funding of the prestigious Polavaram project, and liberal grant of funds for externally aided projects. Even while acknowledging the aid being provided by the centre, the Chief Minister has not been shy of seeking more relief to the beleagured state.

At this critical juncture, there is no point in sticking on to labels, when what is important is real help to kickstart economy.

Ramesh Babu Kandula Editor Email:


Printed and Published by Ramesh babu kandula on behalf of Director/Commissioner, Information and Public Relations Dept.; Printed at M/s Caxton Offset Pvt. Ltd., 11.5.416/3, Red Hills, Hyderabad - 500 004; Published at Office of Director/Commissioner , I&PR Dept, Govt of Andhra Pradesh, Samachar Bhavan, AC Guards, Hyderabad - 500028. Editor: Ramesh Babu Kandula. Ph: 040-23300258.



NaBard ready to fully fuNd



he National Bank for Agriculture and Rural Development (Nabard) has in principle agreed to fund the entire Polavaram project and even pay what the State government has spent on the project till now. Talking to the media after a two-hour meeting with Nabard Chairman Harsh Kumar Bhanwala in New Delhi, Union Minister of State YS Chowdary said the bank would release the first instalment of loan to the P.olavaram Project Authority in October. He said since the State government was not directly involved, none of the restrictions applicable under the provisions of the Fiscal Responsibility and Budget Management (FRBM) Act would affect the project. Chowdary along with State Water Resources Secretary Shashi Bhushan Kumar and Andhra Pradesh Engineerin-Chief M Venkateswara Rao held talks with Nabard officials. While agreeing to fund the project, the OCTOBER 2016

Nabard officials asked about the scale of finance, the period of the project and the year-wise instalment required for its completion. The State Water Resources officials also had a meeting with their Central government counterparts and followed up the progress in the matter of the Polavaram project. Meanwhile, Chief Minister Chandrababu Naidu inspected the ongoing works at Polavaram and said his government would make the project a reality by completing the first phase by 2018. “We will not let Polavaram remain a dream. We will make it a reality.” While a total of 1,049 lakh cubic metres of earthwork was supposed to be done as part of the project construction, 410 lakh cubic meters has been completed so far. “We have imported high-powered machinery to carry out the earthworks. They have already been deployed and some foreign companies have also been involved in the job,” he said. ANDHRAPRADESHMAGAZINE.ORG

A 5.5-km spillway and spill channel were being constructed to enable discharge of 50 lakh cusecs of water, the largest in the world. “Godavari had seen a (flood) discharge of 36 lakh cusecs of water in a day. The highest discharge from Krishna was 11 lakh cusecs. So, we have designed Polavaram for a discharge of 50 lakh cusecs,” he said. The Chief Minister said he would henceforth conduct a virtual inspection of the project works every Monday, using the cameras positioned at the site, and conduct a personal inspection every third Monday of the month to ensure the construction activity went on as planned. A Central Water Commission official said that the Central Government was considering Polavaram as a model project and all the technical knowhow for it would be provided. He said water could be pushed into the canals with the cofferdam itself and work should go on simultaneous on the cofferdam and the regular dam.



aP and the story of SPECIAL STATUS


here has been heated discussion and debate on the Special Category Status, and Special Package that the Centre announced for Andhra Pradesh. What does Special Package entail to AP in terms of funds and projects? Is is wise to reject the Special Package that the Centre offered and continue to insist on Specia Category, even though the union government is clear that it was no longer an option in the changed scenario? To understand all aspects of this issue and why the state welcomed the Package even while demanding more benefits, we have to analyse this matter in detail. AP, when it was divided, was given the following major assurances: w Section 90 of AP Reorganization Act: Polavaram project

w Section 94: Tax incentives to promote industrialization w PM’s statement on 20-2-2014 in RS: Special Category Status for 5 years

w 14th Finance Commission: To assess resource gap and devolve accordingly There are several other provisions but not relevant for the discussion on Special Status.

Now, what is this creature called Special Status?

Out of the tax revenue of central government, certain portion is given


back to states. It used to be given as 1.Plan and 2.Non plan funds. Non plan funds are used for state govt employees salaries, welfare programs etc. Non-plan funds are to be allocated by a Finance Commission to be constituted every five years. Every Finance Commission will have its own set of criteria to allocate funds and the criteria keep changing. Plan funds used to be allocated by Planning Commission. They also have varying criteria for every plan period of five years. These funds are for developmental projects like roads, irrigation etc.


Special Category States get extra funds only for Plan expenditure. Not for non plan expenditure. In 1968, Planning Commission gave special grants to Nagaland, Assam and J&K as part of plan funds due to their special needs. In 1973, during the Fifth Plan period, they were extended to 7 more states, covering all the North East states. In 1992/93, a committee was formed to evaluate the efficacy of these special grants when Pranab Mukherji was Chairman, Planning Commission. They came out with what is called Gadgil-Mukherjee formula. OCTOBER 2016

the 11 states will continue to be treated as Special States though the central government discarded the use of the term ‘Special Category State’. they are simply called border states or hill states. they no longer get tax exemptions. According to that formula, 30% of all Plan Funds of Central Govt would be distributed to these 10 special states. Remaining 70% would be distributed among all the non-special states. In 2002, Uttarakhand – which was formed as a result of bifurcation of UP - was added to this list of special states due to its hilly terrain and backwardness. So, the number of special states became 11. Though two other states were formed that time – Chattisgarh and Jharkhand, they were not added to the list of special states. Uttarakhand was the last state to be added to the list of special states.

And what was the procedure adopted to add it?

Union Cabinet sent a reference to the Planning Commission. Planning Commission studied all the aspects of the state and gave a report to the Union Cabinet which approved the report and placed it before the National Development Council (Comprising all states). After the NDC approved it, it was notified as yet another special state.

What happened in case of AP?

Following the assurance given by PM in RS, Union Cabinet did send a reference to the Planning Commission. However, before the Planning Commission could study the matter with reference to AP and submit a report back to the Cabinet, the government at the center changed. With that, everything changed.

Now, what about tax incentives? Are they not part of OCTOBER 2016

Special Status?


Then where did they come from? These tax incentives were introduced as late as 2002. Remember that Special Category States have been in existence since 1968. But tax exemptions were introduced only in 2002.

Why were they given?

These North Eastern states are hilly areas, border states, there’s practically no industry, insurgency was increasing, no jobs for youth, something drastic had to be done to attract industry to be set up there. So the N-E states were given tax exemptions in 2002 for a period of five years. The same incentives were extended to Uttarakhand and Himachal Pradesh in 2005. May be because they also are hilly and border states with very low level of industrialization and also may be because they were already in the list of special states. So what was started in 2002 as a security related measure for five years but not a development targeted measure and later extended to two more states in 2005, was to expire in 2007 and 2010 respectively. They were extended once by 5 years and then again by 2 years. Then they were terminated. As a result, the tax exemptions were withdrawn for 8 states in 2014 and three more states – Uttarakhand, HP and J&K – will lose it in 2017 March. Then there would be no tax exemptions anywhere in the country. However, these 11 states will conANDHRAPRADESHMAGAZINE.ORG

tinue to be treated as Special States though the central government discarded the use of the term ‘Special Category State’. They are simply called border states or hill states.

They no longer get tax exemptions. So, what do they get now? The Chouhan formula What is this new creature?

After coming to power in 2014, the NDA government brought about radical changes in the developmental model and public finance universe. Planning Commission was abolished. NDC no longer exists. Niti Ayog was formed. Whereas Planning Commission used to decide plan size, priorities, distribution etc, Niti Ayog is just a think tank. Plan Funds don’t exist anymore. No 30% to Special Category States. In fact, no more Special Category States. 14th Finance Commission also said no need to treat any state as special category state. It said that every state is different and should be evaluated individually in terms of its resources and needs. The 14th Finance Commission recommended devolution of 42% of central government revenues to states in place of the earlier 32%. In addition, some Special Grant was given to some states to cover their revenue deficit. States which got this special grant include the erstwhile 11 special category states, AP, Bengal and Kerala. Bengal and Kerala got it for one year only. The 11 special states and AP got it for five years.


our CM said, give us that 30% in CaSP in the form of eaP. that way, you don’t have to make a provision in the budget and no other state can ask for it because, unlike CaSP which is common to all, eaPs are unique to each state. AP would be getting special grants to the extent of 22,500 crores in five years. Of course, this was not a special favor. AP is getting this as a statutory right due to its revenue deficit. So, as far as filling the revenue deficit is concerned, AP stands on par with the 11 special states. As we learned earlier, Finance Commission deals with non-plan, i.e., expenditure on salaries, welfare etc only. Now what happened to the erstwhile Plan Funds? When there is no fiveyear plan and no planning commission, where are those plan funds going? How are they being distributed? To decide that, a committee under Shivraj Singh Chouhan, CM of Madhya Pradesh was constituted and they came up with a formula – the Chouhan formula. According to this formula, the available plan funds will be distributed among different states based on their population, poverty level, hilly nature, SC/ST population etc. These funds will be given in two forms – CASP (Centrally Assisted State Plan) and EAP (Externally Aided Projects). Of these two, CASP occupies the lion’s share. All states would be given 60% as CASP. But the 11 erstwhile special category states (though not called by the same name any longer) would get 90% as CASP. However, all these 11 special states being very small in size, the effect of funding their CASP to an extra extent of 30% on central government is negligible.

Now what is this EAP?

Central Government sometimes comes up with certain projects aided by World Bank or ADB (Asian Dev Bank) etc which have to be implemented across number of states. In such cases, 60% of the expenditure is borne by the center and 40% by states concerned. The same is 90% and 10% in case of special states.


However, in the history of the North East states, there were only two EAPs one on agriculture (1998-2004, now closed) and one world bank project (2006-2013/14). No more central EAPs in the N-E now. However, states can get their own EAPs and they have to bear the entire expenditure. Central government gives sovereign guarantees. States used to take up EAPs earlier but due to increasing interest rates, volatility of forex markets, stringent conditions, specificity of programs, penalties for non execution etc, states are preferring rupee borrowings from RBI etc.

Be that as it may, what about special status to AP?

At the time the promise was made by Manmohan Singh in 2014 Feb, Special Category Status states existed. After NDA came to power, they are not called special category states anymore. But they still exist as hill states or border states, getting some preferential treatment. The special treatment earlier used to be – 30% of Plan Funds distributed among them as per Gadgil-Mukherjee formula. But now, the special treatment is as per Chouhan formula. According to this formula, the hill/border (formerly special category) states get 90% grant in CASP and EAP (as and when an EAP is in operation in that state). Central Government started arguing that since the concept of special category status is abolished after June 2014, there’s no way special category status can be accorded to AP. But then, what about the PM’s assurance in RS?, we asked. Center would say, how can they implement the assurance when the concept itself was abolished? How is AP responsible for that and ANDHRAPRADESHMAGAZINE.ORG

what about our due?, we asked. Give us our 30% extra in CASP even if you don’t call us special category state, our CM said. They refused, saying there’s no such provision in the budget and if they give to AP, many other states would ask for it and the very idea and purpose of abolishing the concept of special category state would be defeated. The CM made several trips to Delhi, held several hundreds of hours of meetings with state and central bureaucrats and explored various means to get around this problem. He explored various options and placed them before Union Finance Ministry officials who would find some problem or the other. This went on and on for two years. Finally, our CM made an offer which they couldn’t say ‘no’ to. He said, give us that 30% in CASP in the form of EAP. That way, you don’t have to make a provision in the budget and no other state can ask for it because, unlike CASP which is common to all, EAPs are unique to each state. Finally they reluctantly agreed. Our idea is to get as much as possible and as fast as possible and develop the state. Now what is our gain and what is the loss with this method? (To understand that, we need to know some basics. EAPs typically get a moratorium of 5-7 years and repayment starts only after that. And typically, the repayment period is 10-15 years. Secondly, there is something called FRBM – Financial Regulation and Budget Management. This puts a limit on how much the center or a state can borrow in a year. It is typically 3.5% of the GDP of the country or the state concerned, as the case may be. The central government often violates the FRBM and borrows more than its limit (up to 4.5%). But the states don’t OCTOBER 2016

We assumed, erroneously, that tax exemptions are integral part of having special category state status. they simply are not. People who are demanding SCS don’t seem to be aware of this distinction. have that facility. They have to stick to the 3.5% limit. Amounts borrowed by a state from external agencies for EAPs also get counted against these FRBM limits.) Now, with the CBN-Jaitley formula, the differential 30% of a year’s CASP will be paid to AP in the form of taking over EAP loan to that extent by the central government. That is, whatever is that 30% due to us as a special status state, we have to borrow to that extent in the form of an EAP and the center will repay that borrowing. Let us take an example. Every year, AP spends nearly 10,000 crores under CASP. Out of this, as a normal state, center pays 6,000 crores and AP pays remaining 4,000 crores. Now, had we been a special state, the center would have paid 9,000 crores (90%) and we would have paid 1,000 crores (10%). That means, as a result of not being a special state, we are losing 3,000 crores per year. As per the CBN-Jaitley formula, we have to take up an EAP to the extent of 3,000 crores and the center will repay that 3,000 crores to the external agency. That way, there is no loss in money terms. AP is getting fully compensated as a special state without that name and in a different form. Since the 3,000 crores EAP loan is taken over by the center, our FRBM is freed to that extent. We can borrow 3,000 crores more to fund some other activity without crossing the FRBM limits. So, if the center had bluntly refused to do anything about the PM’s assurance on special status, we would have been paying 4,000 crores per year for CASP and would have had to repay the 3,000 crores for the EAP (if we take an EAP) Now, as a result of CBN-Jaitley forOCTOBER 2016

mula, we would still be paying 4,000 crores for CASP but we don’t have to pay back the 3,000 crores EAP loan (which would have become payable after 5-7 years). Thus, if not in the same year, in future (5-7 years), AP would be free from paying back 3,000 crores per year for a period of five years. In addition, since the center is taking over the 3,000 crores EAP loan, we can borrow 3,000 crores more per year without crossing FRBM. Thus, there is an immediate availability of 3,000 crores more funds per year AND another 3,000 crores saving per year in the medium term (of 5-7 years). The CASP size typically increases by 15% every year. Thus, in the five years of this CBN-Jaitley formula operation, AP would be getting around 22,500 crores and another 22,500 crores in the medium term (5-7 years) i.e., a total of 45,000 crores which is not a small sum of money.

be able to efficiently spend 3000-5000 crores per year, we need a workaholic leader like CBN. Already, AP has prepared DPRs for EAPs to an extent of 42,000 crores. They include road linkages, modernization of health infrastructure, Medium Irrigation tanks, Amaravathi etc.

Now that special status issue is resolved, what about tax exemptions? As discussed earlier, special status has nothing to do with tax exemptions. Special states started forming from 1968 but tax exemptions started only in 2002 and most of them ended in 2014 with the 3 remaining states losing them by March 2017. Then no state would have tax exemptions. With GST coming, it is all the more difficult for any state to get tax exemptions. So, comparing ourselves with what happened in Uttarakhand between 2005 and 2017 is waste of time.

At today’s prices, we can build one and a half Polavarams with this money.

The days of tax exemptions are over. It is history now.

If we know our numbers, we are actually getting a better deal than special status.

And in any case, no one promised us tax exemptions at the time of bifurcation.

Of course, we would not be getting the 30% margin in centrally planned EAPs even if one such EAP should be implemented. We would still have to bear the normal 40% of the central EAP like any other normal state. But central EAPs are few and far between. They don’t come regularly. However, the CM is still trying to get that differential 30% in EAPs also.

We assumed, erroneously, that tax exemptions are integral part of having special category state status.

Only downside to this arrangement is that now AP has to perforce take up EAPs at least to the extent of 3,000 – 5,000 crores every year and execute them. That means we should acquire the institutional capacity to execute so much of work every year. We could spend only 640 cr in 2014 and 900 cr in 2015 under EAPs. So, to ANDHRAPRADESHMAGAZINE.ORG

They simply are not.

Instead, the fiscal incentives that we were promised in section 94 of the Bifurcation Act are given in the form of 15% additional depreciation allowance and 15% capital investment allowance. Everyone knows what is depreciation. If allowable depreciation for vehicles is 30% normally, for a new industry set up in AP, it becomes 45%. And if some one invests 100 crores in plant and machinery, vehicles and training for setting up a new industry, he can deduct up to 15 crores from


Suppose that we keep on haggling about special status and they don’t give it. the term of this Govt. would be over. Whom will we ask then? What’s the guarantee that the next government would give it? When we are getting all that is due to us, should be get into a fight just for the sake of ‘special status’ title? gross profit for the purpose of tax calculation. This increases profitability by 5% for a typical industry. Those who know the business world, know that most industries operate at a profit margin of 3-7% and so, this incentive is quite attractive for any serious manufacturing industry. However, willingness to set up industry depends on other atmospherics like labor availability, work culture, unrest, political extortion and quality of leadership. These same incentives were given to Bihar (7 districts) and Bengal (5-8 districts) but due to prevailing L&O conditions, no industry would go there. Similar thing happens even if tax exemptions are given. To get income tax exemption, one has to first make a profit. To get excise duty exemption, one has to be allowed to produce first. To get service tax exemption, service has to be allowed to be delivered first. If people like Jagan are given power, every industrialist would be extorted on a quid pro quo basis and forced to buy shares in his cement and news companies at artificially inflated premium. How will industries come in such a political climate? This is the history and story of AP and its special status. Now to those geniuses who argue why we accepted the center’s offer, the counter question is – what is the alternative? Suppose that we keep on haggling about special status and they don’t give it. The term of NDA would be over. Whom will we ask then? What’s the guarantee that the next government would give it? When we are getting all that is due to us, should be get into a fight just for the sake of ‘special status’ title? If we are stubborn, what would happen to Polavaram project, our lifeline? Where will we raise 30,000 crores


from to complete the project? What if they don’t give environmental clearances citing cases filed by Chattisgarh and Odisha? Can we afford to delay Polavaram? We would not be getting this 22,500 crores also in the form of EAP or some other means. Then what? We could not be saving another 22,500 crores in medium term (5-7 years)

If EAPs don’t come, how will we build Amaravathi?

If center gives funding only for those half a dozen buildings in the new capital – sticking to the letter of the Act -, what about trunk infrastructure? What will be do with those buildings without roads, power, drainage etc? What if they tighten NREGP funding? We are the highest drawers of this fund in the country now. Without capital construction, without Polavaram, without institutions, without industrial nodes, without industrial corridors, what will happen to the state? What will happen to our youth? To those who bark that CBN is not asking for special status because he is afraid of the case, a simple question: Why didn’t the center give special status or start funding Polavaram or fill revenue deficit during the first one year when there was no case? Were they waiting for this case to happen? Politicians are full time professionals. But people should not aspire to become full time agitators – that too for a vain cause or no cause. You would observe that the facts of this case are not so simple to understand. They are complex and convoluted issues of public finance.

Why are some parties and people opposing it so vehemently?


That is politics. Not economics.

None of them would like CBN government to achieve successes. “Somehow, dirty the waters and ensure that funds don’t flow. Polavaram should not progress. Amaravathi construction should be obstructed by hook or crook. If CBN gets funds, can anyone stop him? He will complete things like road building. He will complete expensive projects like HNSS (Handri Neeva Sujala Sravanthi). Thus he will satisfy all sections of people. Then how will we get power?”, they think. “So, we should drive a wedge between state and central governments. Ensure that fund flow stops. Then there would be no development or job creation. Youth will get restive. We can shout from rooftops that Chandrababu has failed. By this even if the state suffers irrecoverable damage, how are we bothered?” This is the conspiracy. That’s why some ill-motivated people are asking,”how can state government build Polavaram when it is a national project? We will go to court on this.” Who will be more interested in completing Polavaram project as fast as possible? State government or central government? Then what about the cacophony of these news channels? Why isn’t anyone explaining to them? We know the intellectual deficit of our news channels. You simply ask them – who told you that special status means tax incentives? Show us where it is written. Spoil relations with center, bring down Chandrababu. This is the only agenda of detractors. Is this people’s agenda? Is this agenda for people? People should think. And they should decide.



int’l brics Poetry festival

an international poetry festival was held at Vizag coinciding with BrICS meet, where the poetry from the five nations was presented in telugu translation by the member poets, in representative voices.


RICS is an international group of five nations belonging to four continents. Brazil represents Latin America, Russia represents Europe, India and China represent Asia, and South Africa represent the African continent. Economic study group Goldman Sachs, in their periodical “Global Economics”, in the year 2001 has predicted an emerging global phenomenon of these four nations, to be the super powers by 2050, and christened it with the first letters of the Countries in the group BRIC. These national governments also have stepped up the understanding and mutual co-operation in various fields, during the formative years, and in the year 2009 the first BRIC summit was held at Ekatarinaburg, Russia. With South Africa subsequently joining the group, the acronym has truly became BRICS, and so far seven summist have been organized in the member countries. Initially though the conferences and conclaves were limited to the economic aspects, gradually, the fields of economics, trade, health, science and technology, education, agriculture, information, labour and employment also are discussed at length. In the year 2016, India being the annual President of the group, is hosting around 87 conferences, seminars, symposia in OCTOBER 2016

various states, and it can be seen that every four days, one BRICS interaction is taking place in India, in the East, West, North and South regions of the nation. The interactive sessions of expert groups, professionals, and apex groupings of Ministers, are seen to be listed in the schedule. The subjects coming up for interaction include areas like tourism, to geospatial policies, teaming together by women parliamentarians, youth festivals, anti drug and prevention methods summing up, BRICS Railways, and tens of other subjects on trade, agriculture, digital advancement, and health issues concerning the BRICS and the world. A glance at the ambitious programme signaled by the Government of India, supported by Govt. of AP, leaves one without option but to laud the mission and efforts of the national and state governments in taking forward the collective initiative. India is also participating in an equal number of BRICS interactive programmes in member countries, during the year, and the vigorous drive would be complete and comprehensive, once the literature and culture issues are also brought to the fore by the collective endeavor between the member countries. People of these nations have a feeling that such spirited cooperation in the areas of culture would go a long way, in fostering the spirit of international fraternal amity. ANDHRAPRADESHMAGAZINE.ORG

To match with the participatory spirit of the host nation and the annual President, i.e. India, it is seen that in the cultural initiative is found lacking, and to fulfill this need, while the BRICS 3rd Urbanization Forum held its three day deliberations at Visakhapatnam during the 14-16 of Sept. 2016. Mosaic Literary Association for the first time in the country, held a BRICS international Poetry Festival, to match the Urbanization Forum proceedings, and at Visakhapatnam, Andhra Pradesh, the international poetry festival, where the poetry from the five nations was presented in Telugu translation by the member poets, in representative voices, held the audience spell bound. More than twenty poems from Brazi., Russia, China, South Africa, and India were presented as part of the festival. Earier L.R.Swami, in Chair, rendered some Chinese poems into Telugu, and reputed poet, A.Ravi.Prakash, Andhrapradesh Girijan Corporation Vice Chairman an M.D. flagged off the festival by reading a Russian poem in translation and hoped that initiatives of international cooperation such as this should take place more frequently in the international city of Visakhapatnam. Prof. K.Venkatesvarlu, and Prof. Chandu Subbarao, former academics from Andhra University, analyzed the emergence of BRICS and hoped that the solidarity and economic cooperation should strengthen and reflect in various fields of cooperation. All India Radio, Visakhapatnam has broadcast the highlights and the core content of the BRICS international Poetry Festival, on 16th instant. Mosaic group now intends to establish a BRICS Cultural Forum (BCF), in sustaining and stepping up the sense of involvement and participation among the writers, artistes, and cultural professionals in the member countries. The immediate plans of the BCF include conducting BRICS art exhibitions, film festivals and publishing a BRICS poetry anthology.

-Rama Teertha 98492 00385


what aP will get under special assistance..



he Central Government is committed to help and assist the newly created State of Andhra Pradesh. The commitments of the Centre emanate from four basic documents, namely, the provisions of the Andhra Pradesh Reorganisation Act, 2014, the report of the Fourteenth Finance Commission, the statement of the then Prime Minister before the Parliament on 20.2.2014 and the Report dated 1.12.2015 of Vice Chairman, NITI Aayog on Developmental Support to the Successor State of Andhra Pradesh under the Andhra Pradesh Reorganisation Act 2014. 2.

these are the details of the Special assistance to the state of andhra Pradesh in terms of aP reorganisation act, 2014 announced by the Central Government on 07th September, 2016.

2. The above mentioned commitments are broadly categorized as under

(i) The Andhra Pradesh Reorganisation Act:

(a) Section 46 of the Act provides for a reference to be made to the Fourteenth Finance Commission to take into account the resources available to the Successor States and make separate awards to them. It further provides for a developmental package to be given to the backward areas of the State of Andhra Pradesh. It also provides for adequate incentives in particular for Rayalaseema and north coastal regions of the State. (b) Section 90 of the Act declares the Polavaram Irrigation Project as a National Project. (c) Under Section 93 of the Act, the details of institutions and infrastructure to be developed in the State are outlined in the Thirteenth Schedule to the Act. (d) Section 94 of the Act provides for appropriate fiscal measures, including offer of tax incentives, to be given to the Successor States to


promote industrialization and economic growth. It further provides for support to programmes for backward areas including physical and social infrastructure. In addition, it provides for giving special financial support for creation of essential facilities in the new capital of the successor State of Andhra Pradesh, including the Raj Bhawan, High Court, Government Secretariat, Legislative 2 Assembly, Legislative Council and such other essential infrastructure.

(ii) Statement of the then Prime Minister Dr. Manmohan Singh on 20.2.2014

The then Prime Minister, Dr. Manmohan Singh on 20.2.2014 stated before the Rajya Sabha that Special Category


Status would be extended to the State of Andhra Pradesh for a period of five years. This would be done to put the State’s finances on a firmer footing. He further stated that the resource gap for the year 2014-15 would be compensated by the Central Government.

(iii) Fourteenth Finance Commission:

The Fourteenth Finance Commission defined the financial relationship between Centre and the States for the five year period ending 2019-20. The Commission did not make a distinction between Special and General Category States. Its approach was to fill the resource gap of each State to the extent possible through tax devolution. Accordingly, the Commission recomOCTOBER 2016

mended an enhanced devolution of 42% of the Central Government’s tax revenues to States. If devolution alone could not cover the assessed gap, for certain States, a revenue deficit grant was provided. Andhra Pradesh was one of the States determined to be a revenue deficit State, and the Commission recommended that the Centre would provide revenue deficit grant for the period of the Fourteenth Finance Commission. The amount of deficit for each year was mentioned in the report itself and a total of Rs.22,113 crores is to be paid to Andhra Pradesh as revenue deficit grant for the 5 year period.

(iv) Report on Developmental Support to Andhra Pradesh dated 1.12.2015:

The Vice Chairman, NITI Aayog Dr. Arvind Panagariya studied various aspects of the support to be given to Andhra Pradesh under the Reorganisation Act and made recommendations regarding effective implementation.

The Central Government’s commitments to the State of Andhra Pradesh 3. Under the Andhra Pradesh Reorganisation Act, the commitment for the resource gap for the year 2014-15 is being met on the basis of standardized expenditure for that year. The revenue gap has been tentatively quantified subject to further adjustment on account of figures relating to certain pension schemes. A part of the revenue gap compensation amounting to Rs.3,979.5 crore has already been paid and the balance is being paid in annual instalments. An amount of Rs.2,500 crore has already been paid as support for creation of new capital of State of Andhra Pradesh and a balance of Rs.1,000 crore would be paid in due


course. An amount of Rs.1,050 crore has been disbursed as special package for backward areas and a further amount of Rs.1,050 crore would be paid in the coming years. 4. The Polavaram Project is on the river Godavari near Ramayyapeta village of Polavaram mandal, about 42 km upstream of Sir Arthur Cotton Barrage in the State of Andhra Pradesh. It envisages construction of a dam and canal system to create ultimate irrigation potential of 2,91,000 ha. (7.2 lakh acres), generation of 960 MW of hydro power, drinking water supply to a population of 28.50 lakh in 540 villages and diversion of 80 TMC of water to Krishna river basin. The project was accorded investment clearance by the Planning Commission for Rs.10,151.04 crore (at 2005-06 price level) in 2009. Further, the Advisory Committee of Ministry of Water Resources approved the cost at 2010-11 price level as Rs.16,010.45 crore during January, 2011 including power and drinking water component of Rs.2868 crore. Prior to the passage of the AP Reorganisation Act, the Polavaram Project was being implemented by the Government of Andhra Pradesh with Central Assistance under the Accelerated Irrigation Benefits Programme (AIBP). An expenditure of Rs.5,135.87 crore had been incurred up to 31.3. 2014 including Central Assistance of Rs.562.469 crore.

The Central Government will fund the Polavaram Irrigation Project in the following manner: (i) It will provide 100% of the remaining cost of the irrigation component only of the project for the period starting from 1.4.2014, to the extent of the cost of the irrigation component on that date.


(ii) In view of the recommendations of the Vice Chairman NITI Aayog that it will be appropriate for the State of Andhra Pradesh to execute this project (as it is an important project and the State Government is keen to complete it at the earliest), the Government of India has agreed to the State’s request for the execution of the project by the State Government on behalf of the Government of India. 5. Government of India has already legislated for fiscal incentives of enhanced investment allowance and accelerated depreciation. They will come into effect once notified, after the State of Andhra Pradesh identifies the eligible backward areas. 6. In respect of educational and other institutions: • A Petroleum University has already been established. • The IIT has already been functioning from a transit campus and the main campus is being constructed. • The National Institute of Technology has already been functioning since September 2015 in a temporary campus and its main campus is being constructed. • The Indian Institute of Information Technology, Kurnool has already started functioning from the temporary campus and would start functioning and its main campus is being constructed. • The site for the Central University in Anantapur district has already been selected. • The Indian Institute of Science Education and Research has been established in Tirupati. • The Indian Institute of Management has been established at Visakhapatnam. • An All India Institute of Medical Sciences has been approved at Guntur


the revenue deficit grants for each of the years recommended by the fourteenth finance Commission will also be paid by the Government of India to the State of andhra Pradesh. and the land for the same is being taken over.

within the available land.

• A Tribal University is to be established in the State of Andhra Pradesh for which a Site Selection Committee of the State has already approved the land. • A National Institute of Disaster Management is being established in the State of Andhra Pradesh for which identification and takeover of the land is being completed. 7(i)The Cabinet Committee on Economic Affairs has given in-principle approval for the establishment of a major port at Dugarajapatnam in Andhra Pradesh on PPP basis, subject to feasibility. (ii) Proposals with regard to the Steel Authority of India, Indian Oil Corporation/HPCL to set up units in Andhra Pradesh are being examined as provided in the Reorganisation Act. (iii) Regarding airports: • In Vishakhapatnam, international flights are already operating. For further expansion, land has been identified at Bhogapuram. The State is to acquire and hand over land for development by AAI as per the standard terms for such development or develop on its own by PPP. A techno economic feasibility report is to be undertaken by State Government. • For Vijayawada, MoU has been signed by AAI with Govt. of Andhra Pradesh to develop the existing terminal. The State is to 6 acquire 698 acres of land required for the expansion as per the standard terms. • For Tirupati, the new terminal was inaugurated by the Prime Minister on 22.10.2015. A new apron for parking for 3 aircraft has been completed. The existing runway, apron and terminal building are adequate for commencing international flights. Expansion of new apron for parking additional 4 aircraft and isolation bay is under construction


(iv) The National Highway Authority of India has taken several steps for establishment of the National Highways in the State of Andhra Pradesh. The Railways is considering measures for establishing a rapid rail and road connectivity between the new proposed capital of Andhra Pradesh with Hyderabad and other cities in the region. The Government of India is actively considering proposals for the establishment of the Metro Rail in Visakhapatnam and VijayawadaGuntur-Tenali urban area. 8. The Fourteenth Finance Commission’s award came into effect from 1.4.2015. The enhanced devolution amount due to Andhra Pradesh is being paid in entirety. This has resulted in an increase of Rs.7,787 crore in tax devolution in 2015-16 compared to 2014-15, a growth of 55%. The revenue deficit grants for each of the years recommended by the Fourteenth Finance Commission will also be paid by the Government of India to the State of Andhra Pradesh. The same has been done for the year 2015-16 and 2016-17. There are no issues pending on that score. 9. The Government of India is thus honouring and shall honour all commitments made under the Andhra Pradesh Reorganisation Act. 10. The statement of the then Prime Minister, Dr. Manmohan Singh on 20.2.2014 contains six paragraphs. There are no issues with regard to five out of the six paragraphs. With regard to the first point i.e. the grant of special status, an apparent conflict has set in, between the statement and the recommendations of the Fourteenth Finance Commission which came subsequently. On page 17 (para 2.29 & 2.30) of the Report, the Commission has stated (inter alia): “We did not make a distinction between special and general category


states in determining our norms and recommendations…... In our assessment of State resources, we have taken into account the disabilities arising from constraints unique to each State to arrive at the expenditure requirements. In this regard, we have observed that the North-eastern and hill States have several unique features that have a bearing on their fiscal resources and expenditure needs, such as low level of economic activity, remoteness and international borders. Our objective has been to fill the resource gaps of each State to the extent possible through tax devolution. However, we have provided post-devolution revenue deficit grants for States where devolution alone could not cover the assessed gap…... We are of the view that intra-state inequality is within the policy jurisdiction of the States and provisioning of adequate resources through tax devolution should enable them to address intrastate inequalities in an effective manner.” Thus following the recommendations of the 14th Finance Commission, the class of special category states ceases to exist. However, the Central Government has agreed to give a special assistance measure for Government of Andhra Pradesh for five years, which would make up for the additional Central share the State might have received during these years, i.e. 2015-16 to 2019-20, as envisaged in the then Prime Minister’s statement dated 20.2.2014. This will be in the form of Central Government funding for externally aided projects for the state for Andhra Pradesh signed and disbursed during these years. 11. Thus the Government of India has effectively addressed all commitments made to the State of Andhra Pradesh in the Andhra Pradesh Reorganisation Act, the Fourteenth Finance Commission and the statement of the then Prime Minister on 20.2.2014.



gst regime

State concern over TAX ADMN

Finance Minister Y Ramakrishnudi at the meeting in Delhi.

Speech of Yanamala Ramakrishnudu, Minister for Finance & Planning, Commercial Taxes and Legislative Affairs, Government of Andhra Pradesh on the agenda items for the first meeting of the GST Council held on 22/09/2016 and 23/09/2016 at New Delhi. ****

Dear Chairman and Members of the GST Council‌ At the outset, I heartily congratulate the Government of India and the States on successful completion of the process of amending the Constitution of India and ratification of the same by majority of the States, which now enable both the Centre and the States to levy Goods and Services Tax by duly replacing multiple State and Central Indirect Taxes. I would like to share some of the views of the Government of Andhra Pradesh with all of you. 1 Draft Rules of Procedures and Conduct of Business in GST Council Secretariat: The Draft Rules and conduct of Business in GST Council Secretariat have taken care of all the required procedures to smoothly conduct the business of the GST Council to take decisions on the proposals submitted by the Centre or the States on any of the issues, entrusted to the GST Council under Article 279A of the Constitution of India. However, the draft Rules regarding taking decisions on the proposals submitted by the Centre or States are silent with regard to such situations, where the Centre likes to abstain from voting for one or the other reason. The State of Andhra Pradesh is of the opinion that there should be a specific provision covering such situations. Secondly, the State of Andhra Pradesh is of the opinion that the weightage of votes to the States should be in proportionate to either population of the States or on the basis of the number of Members of the Parliament from the States. Thirdly, there should be a provision such that if 50% of the states request in writing, an Emergency meeting of GST OCTOBER 2016

Council shall be convened. 2 Proposed timetable for the implementation of GST: The target date for enactment of the CGST, IGST and SGST Laws may be left to the convenience of the respective Governments, subject to the condition that the process should be completed latest by the end of the February’2017. 3 Thresholds for exemption and composition under GST: In the Agenda notes, it is suggested that the threshold limit for exemption shall be Rs.25 Lakhs per annum. The considered opinion of the State of Andhra Pradesh is that the threshold limit for exemption shall be Rs.10 Lakhs per annum for the reasons that the tax base will get attenuated due to higher threshold limit of Rs.25 Lakhs and also there is a chance for some unscrupulous tax payers to artificially split their businesses in order to remain permanently outside the tax net. 4 Draft Modalities for GST Compensation and draft Compensation Law: It is noticed that under Section 4 of the draft GST Compensation Bill, the projected growth rate for a State during the transition period shall be the average of growth rates in the revenue collected by the State for the Financial Years 20132014, 2014-2015 and 2015-2016. This formula is not in tune with the actual revenue growth, achieved by the States. The growth achieved by any State in any year will be the compounded annual growth over the past years. For example, the growth rate achieved in the year 2016-2017 will be the compounded growth rate, achieved during the previous years under consideration. The adoption of CAGR (Compounded Annual Growth Rate) for the purpose of calculation of revenue compensation, payable to the States, is reasonable and justifiable and the same method was also adopted at the time of implementation of VAT by the States. Therefore, the methodology, suggested above, may be adopted in the proposed ANDHRAPRADESHMAGAZINE.ORG

draft Bill also for the purpose of calculating the projected Growth Rate. 5 Provisions for Cross-Empowerment to ensure Single Interface under GST: It is the considered opinion of our State that the State should have exclusive jurisdiction over the small tax payers having an annual taxable turnover of not more than Rs.1.50 Crores to provide a single interface in case of such dealers. It is required because the number of small tax payers, dealing in goods, are huge in number, when compared to the tax payers, dealing in services with the same taxable turnover. Further, the State Tax Officers are more well versed in dealing with the intricacies involved in trade of goods at the level of retailers, where the tax payer base is huge in terms of numbers. However, the Central Officers, who are well versed with dealing in services may be given exclusive jurisdiction over the tax payers, dealing exclusively in supply of services. In respect of the dealers, having a taxable turnover above Rs.1.50 Crores, both Central and State Officers will have concurrent jurisdiction with certain protocols, put in place to avoid dual interface. Finally, I feel that the statutory provisions shall be designed with a view to maintain the delicate balance of powers and convenience between the Centre and the States.



nostalgic cm foresees better tomorrow


n an emotional speech during the recently concluded monsoon sessions at the AP Assembly in Hyderabad, Chief Minister Nara Chandrababu Naidu had a trip down memory lane, recalling his 38- year long assocation with Hyderabad and the Assembly. On the concluding day of the monsoon session of the State Legislative Council, said to be the last session for AP in Hyderabad before the Assembly is permanently shifted to Amaravati, the Leader of the House turned emotional and nostalgic. “I entered this hall as minister way back in 1980. Now, I am winding up this session, which is last one in Hyderabad. Next sessions will be held in Amaravati. Hence, these are nos-


CM Chandrababu with AP Legislative Council members in what can be called as the meet in Hyderabad

talgic moments for me. I still remember the atmosphere in the House (then). Those incidents I can never forget. These buildings remind me of my political journey and the days I spent here from the initial days of my political career,” he said. Naidu, who holds an unbeatable record of being the longest serving CM and even the longest serving opposition leader in the erstwhile AP assembly, vowed to build a much advanced and luxurious Assembly in Amaravati than the Hyderabad Assembly. Besides narrating his experience in both the Houses during his vast political career, spanning over 40 years to the members, the CM tried to give some tips to the members over how


to mould their political career and maintain good contacts with people. “Don’t think that mere development will help us in winning the elections. Even our body language and our behaviour towards people also play a key role in deciding the electoral fortunes of contesting candidates,” he said. He said simplicity should be hallmark of a politician’s life as this will make any politician remain role model for others. “I lead a simple life. I eat Ragi malt as breakfast. In the afternoon, I eat the same dish along with an egg white omelet as lunch. Evening, I take a fruit. For supper, dry fruits and some soup. Now-a-days, I am eating fish as per doctors’ advice. As I am mainOCTOBER 2016

taining this strict regimen, followed by yoga, I remain perfectly fit,” he added.

Here is what he wrote in his blog

“Last Assembly session in Hyderabad brought back memories of my political career. As we ended our legislative proceedings in Hyderabad, I had the opportunity of addressing the Legislative Council where I shared the memories of my political career with the members of the House. I remember this one instance when I wanted to contest an MLC election. But, I was just 23 then and I was underage. At the age of 28, I became an MLA and went to Marri Channa Reddy garu and told him I wanted to be a minister. He told me "You are so young and you want to be a minister straightaway!." A few of them with my mentor NTR garu and several other veteran politicians and friends too will remain etched in my memory. All these memories kept flashing in my mind as I took a tour of the ramparts of the Legislative Assembly and how I began my political career 38 years ago. In the Legislative Assembly, I remember so many instances where we created history, discussed and debated about some of the most important public issues, witnessed political upheavals and reconciliation in the most unexpected ways. Everything happened within the walls of the legislative institutions. On one side, I'm extremely happy that we will be holding our next legislative proceedings in our state. On the other hand, I will also be leaving behind an important part of my political career (Hyderabad). The legislative proceedings will mark a new beginning for us, where the history of new Andhra Pradesh will be created and preserved within the walls of the institution in our own state.” OCTOBER 2016


cbdt extends 5-yr tax soPs to 7 districts


o give a fillip to manufacturing and industrial activity in the newly created state of Andhra Pradesh, the Central Board of Direct Taxes (CBDT) announced special tax concessions under the Income-Tax Act to seven districts in the state to boost manufacturing and industrial activity. In a notification, the CBDT said that the concessions are being extended under the Andhra Pradesh Re-organisation Act, 2014. Though the Act had provided for such a concession, there was undue delay in its operationalisation as the ruling Telugu Desam Party in the State and the Centre were exploring various options on a range of issues to help the new born state. After more than two years and three months there was an agreement on September 7 between the Centre and the State on a special financial package, which was termed as an exact equivalent of the special status to the state which was promised by the then Prime Minister Manmohan Singh in the Rajya Sabha in February 2014. The TDP and the BJP in the course of their election campaign were committed to get the special status but it was realized later that it was not feasible.

Special incentives

The latest announcement by the CBDT is a follow up to the special financial package unveiled early in the month. It said that Centre is extending special assistance to four districts of Rayalaseema and three districts of North Coastal Andhra Pradesh. To further boost the industrial activities, the CBDT has notified these seven districts for availing tax incentives under Section 32(1)(iia) and Section 32AD of the Income-tax Act. The districts are Anantapuramu, Chittoor, Kadapa, Kurnool, Srikakulam, Visakhapatnam and Vizianagaram. With the notification, any manufacturing undertaking set up during the period from April 1, 2015 to March 31, 2020 in these districts is eligible for 15 per cent higher additional depreciation and 15 per cent of investment allowance on the cost of plant and machinery acquired by it during the period. The incentives are in addition to other tax benefits available under the Income-Tax Act.




Succour to the


Unorganised workers

andhra Pradesh has come up with a comprehensive insurance scheme for unorganised workers.


handranna Bima, the accident insurance scheme launched by Chief Minister N Chandrababu Naidu in Tirupati on October 2, will benefit two crore persons aged between 17 and 70, especially the unorganised workers and small traders. The main object of the scheme is to provide relief to the families of unorganized workers in case of death or disability of the unorganised worker leaving the families in great distress. There were an estimated two crore labourers in the unorganized sector in the State and about 1.04 crore workers have been enrolled in a survey conducted by the State government. Under Chandranna Bima scheme


(CBS), the family of the deceased will get an insurance amount of Rs 5 crore for accidental death. Rs 5 lakh for permanent disability, Rs 3.62 lakh for partial disability and Rs 30,000 for natural death, will be given under the scheme. The children of labourers studying in classes 9, 10 and Intermediate will get a scholarship of Rs 1,200 per annum. Workers involved in mud work, brick making, sand quarry, road construction works, bore wells and mason will be termed as building construction workers along with workers who have worked for 50 days in NREGS scheme. Premium to the tune of Rs 134 crore will be borne by the State government on behalf of the workers and the workers will


have to bear only Rs 15 towards service charges. A centralised online system has been introduced in the labour department in the State which is unprecedented in the nation. A special format has been designed on the website of the department to conduct departmental inspections, said State labour commissioner D Vara Prasad.

Salient Features of the scheme

w All unorganised workers in the State in the age group of 18 to 70 years are eligible to be registered as unorganised workers and enrolled as beneficiaries of the Chandranna Bima Scheme.

w All unorganised workers will be registered under the Unorgan-


Chandranna Bima, the insurance scheme , is expected to benefit two crore persons in the State in the age group of 17-70 years, especially the unorganised workers and small traders.

centre okays

3 airPorts in aP

ised Workers Social Security Act, 2008 and enrolled as beneficiaries under Chandranna Bima Scheme.

w SERP shall facilitate registration of unorganised workers and their enrollment in the Chandranna Bima Scheme, data entry, maintenance of data base, hard copies of signed applications and other connected matters.

w Assistant Labour Officer of the Labour Department shall be the Registering Authority.

w The registered unorganised workers will be enrolled as members under State Accident Death and Disability Scheme and under Aam Admi Bima Yojana (AABY) and will also be covered under the Pradhan Mantri Suraksha Bima Yojana (PMSBY). The benefits under the Chandranna Bima Scheme are as follows:

Chandranna Bima Scheme benefits

w Rs. 5 lakh for Accident Death and Total Disability: Rs. 2,25,000/- (Rupees two lakh twenty five thousand) from State Accident Death and Disability Scheme, Rs.75,000/- (Rupees seventy five thousand) under Aam Admi Bima Yojana (AABY) and Rs.2,00,000/- (Rupees two lakh) from Pradhan Mantri Suraksha Bima Yojana (PMSBY).

w Up to Rs.3,62,500/- for Partial Disability: Up to Rs.2,25,000/- (Rupees two lakh twenty five thousand) from State Accident Death and Disability Scheme, Rs.1,00,000/- (Rupees one lakh) from PMSBY and Rs.37,500 from AABY.

w Rs.30,000/- for Natural Death under Aam Admi Bima Yojana (AABY).

w Rs.1200/- p.a. towards scholarship per child up to two children of the beneficiary studying 9th, 10th, Intermediate or ITI. OCTOBER 2016


CM seen with Union Ministers M Venkaiah Naidu and P Ashok Gajapati Raju after laying the foundation stone for the expansion of the Madhurapudi (Rajahmundry) airport at a cost of Rs 202 crore.


he Union government has given in principle approval to an international airport and two no-frills airports in the state of Andhra Pradesh. The government has also given site clearance for the proposed international greenfield airport at Kothagudem in Telangana. These approvals were given by the Steering Committee on Greenfield Airports headed by civil aviation secretary RN Choubey at its meeting. The new international airport at Bhogapuram in Andhra Pradesh will be developed by the state government at an estimated cost of Rs 2,200 crore. To be built through the public private partnership route, this airport is estimated to cater to 6.3 million passengers per annum (mppa) in the initial phase. The other two airports in Andhra Pradesh will be developed as domestic no-frills airports with an estimated cost of Rs 88 crore each. Dagadarthi will be developed under PPP mode whereas project at Orvakallu will be developed by state government itself. These are the first set of approvals given to no-frills airports. The government plans to develop 50 such airports at estimated cost of Rs 50-100 crore in a few years to boost regional connectivity. Bhogapuram and Dagadarthi are in Nellore district, while Orvakallu is in Kurnool district. These airports would cost a total of Rs 2,376 crore. “These clearances are expected to enhance the aviation infrastructure facilities in the newly created states of Andhra Pradesh and Telangana and will also boost the regional connectivity scheme,” the civil aviation ministry said in a statement. To boost air connectivity, the government has announced regional connectivity scheme under the new civil aviation policy.




andhra Pradesh has achieved the rare distinction of electrifying all its households by June this year.

aP achieves 100%



ndhra Pradesh has become the second state in the country after Gujarat to achieve 100 per cent electrification of households, according to a latest report. JM Financials published the report based on a national-level survey on electrification in various states. The State Government is now focussing on improving the quality of power supply. Discussing this through a tele-conference with top officials of the Energy Department, Chief Minister N Chandrababu Naidu said, "We achieved 100 per cent electrification by June-end. Now, you have to set a target of ensuring uninterrupted world-class quality power supply." He said access to electricity was a key socio-economic development indicator, but this was an area where there was still a significant gap in India. About 35 per cent rural households in states like Uttar Pradesh, Madhya Pradesh, Bihar, Odisha and Assam still lacked access to power supply, he claimed. The Chief Minister asked the Department officials to chalk out an action plan to be implemented from the grassroots level so as to make the power sector self-sufficient in the long run. "Whatever we have achieved in the power sector in the last two years is no doubt very significant, but is not sufficient." "We have to render world-class services to the consumers by pro-


viding uninterrupted power supply on par with global standards, at affordable prices," he said. "Continuous improvement is required and the sector should keep abreast of the latest technological developments," he added. Principal Secretary (Energy and Infrastructure) Ajay Jain informed Mr Naidu they were preparing a strategy plan to reduce overall transmission and distribution losses, which currently stood at 10.3 per cent, to


single digit by the end of the current financial year. An investment of Rs. 20,000 crore has been proposed over the next five years to strengthen the transmission and distribution systems and extend power supply connection on demand, he said. Energy efficiency and conservation activities would also be taken up in a big way in all government departments and other sectors, Mr Jain said.



andhra Pradesh registered its protest against telangana for constructing two irrigation projects on Krishna river illegally and contended these will "adverse" impact on its existing projects.

aP Protests againt illegal Projects on krishna river


ndhra Pradesh registered its protest at the first apex Council meeting held in New Delhi under the chairmanship of Union Water Resources Minister Uma Bharti and attended by Andhra Pradesh Chief Minister N Chandrababu Naidu and his Telangana counterpart K Chandrasekhar Rao. During the meeting, Andhra Pradesh stated that two new projects of Telangana, Palamuru Rangareddy and Dindi Irrigation Schemes, are being constructed on the river in violation of Andhra Pradesh Reorganisation Act, 2014 and demanded the Council to put those on hold until it receives sanctions. According to the Act, the two cannot take up new projects without the approval of the Council. Telangana though maintained that the "on-going" projects were taken up by erstwhile Andhra Pradesh government, which had sanctioned them based on the liberty given by Krishna Water Disputes Tribunal (KWDT)-I and hence, did not violate the law. The Council decided to form a joint committee to assess availability of water in Krishna basin to help Krishna Water Disputes Tribunal to decide quantum of river water to be shared by the two states. The committee will comprise officials from Centre and both the state governments. It has also decided to install telemetric equipment at all major projects to assess the drawl of water by the two States and request the Krishna Tribunal to make proOCTOBER 2016

portionate allocation of water. The council resolved to allocate water to the two States, based on the findings of the the high-power team comprising senior officials from Andhra Pradesh and Telangana as well as the Central Water Commission. Noting the meeting is taking place in the wake of disputes between Odisha and Chhattisagarh over sharing Mahanadi river water and Cauvery water by Karnataka and Tamil Nadu, Ms Bharti also pitched for formulating a national policy in consultation with states to deal with water crisis. "During the meeting, Andhra Pradesh raised objections over the projects saying these were taken up violating the AP Reorganisation Act and sans sanctions from the Council. "It also claimed that the project will have adverse impacts on water availability of existing projects of Andhra Pradesh (irrigating 45.72 lakh acres) with assured allocations," reports said. Andhra Pradesh observed that Telangana has already accomplished its utilisation to the extent of 295.86 TMC as against 299 TMC of its Krishna river water share, to claim there is "no further quantum of water is available in Krishna basin" for Telangana to take up "additional projects" In its part, Telangana stated the two projects were taken up erstwhile undivided Andhra Pradesh government, based on the "liberty" given by KWDT-I.





journalist and great editor of pre-independence era



British statesman had once remarked that the produce of Scotland was sheep meant for England and administrators for India. In a similar vein, Right Honourable Srinivasa Sastri remaked that editors, auditors and “ayahs” in North India were all Madrassis. ‘Madrassi,’ in those days, was a generic term for all South Indians, including Andhras. What Srinivasa Sastri could have added was that such of the South Indian editors as were making good in North India had outgrown their regional identity. Nobody dared regard them as South Indians. They were just Indians, and great Indians, at that. One such great Andhra editor who made the North sit up and take notice of him was C. Y. Chintamani. There could have been no “Leader” without Chintamani as its editor. And Chintamani was not only a great leaderwriter but also a great leader himself. His forefathers had migrated to Visakhapatnam from Nidadavolu in West Godavari district. What distinguished Chintamani from others of his age throughout his life was his ability to think for himself. He believed in doing what nobody else did. Conversely, he refrained throughout his life from doing what others did. He had convictions, right or wrong, and also the courage to hold them. Matriculation examination in those days was hard to pass. But, for Chintamani education did not mean passing an examination. A truly educated man was he who was widely read, not one who flaunted degrees which were not backed by intellectual accomplishments. While other students burned midnight oil in the hope of extirpating in one night the inspissated, mental darkness of a year, Chintamani enjoyed an English classic. After all, one could take the examination again but one might not be lucky enough to lay one’s hand on the classic again. Chintamani read widely, digested what he read, and used it at the right moment be that in speech or in writing. His sense of the bon mot was deadly accurate. Ironically enough, this great editor first attracted attention through his oratory. Even as a student, he had exhibited an uncanny knack of holding an audience however big. As a concession to this fact, fellow-students had contributed whatever they could and sent him as a delegate to the Congress session at Lahore in


1893. Dadabhai Naoroji presided over the session, but Chintamani stole the limelight. The audience heard him with bated breath and rejoiced at the encounter with an incisive mind. His words went to their hearts. He himself stole their hearts. Among those who were impressed by his oratory was Pandit Madan Mohan Malaviya. For sometime thereafter he did freelancing and was called to Allahabad by Malaviya. Meanwhile, Chintamani had lost his wife, who had borne him C. L. R. Sastri, a scholar in his own right. Chintamani became editor of “Leader” published from Allahabad and held that office all his life. When Motilal Nehru was the chairman of the Managing Board, he had a difference of opinion with Chintamani. And it was Motilal who relinquished the office. If Chintamani had left, instead, the paper might not have survived him for long. Through editorials which were marked by directness, vigour and simplicity, he had made “Leader” popular.



Sir Chirravoori yajneswara Chintamani was invited to work for the Leader, a newspaper founded by Pandit Madan Mohan Malviya. With the arrival of Chintamani, allahabad would never be the same again. He nurtured the paper and turned it into one of the best in the country. Reading them was an education in itself. Many read them and as many tried to write like that. Chintamani made many a journalist. He was not always right, but he was a Rightist. He had no patience with many of Gandhiji’s opinions. Gandhiji, for him, was always “Mr”, never a “Mahatma”. He would rather make a mister of a Mahatma than a Mahatma of a mister. Chintamani found kindred souls in P. S. Sivaswami Ayer and Chimanlal Setalvad. The Rightist trinity was free, frank but balanced in the expression of views. The country was benighted but the three were knighted. Chintamani’s pet theme was that because of Gandhiji’s role in politics, India’s progress had been stunted. In his talk at Andhra University on political developments after 1857 revolt, Chintamani argued that there was no instance in history of a country which became free through non-violence. History proved him wrong. He felt that the British had left the country after dividing it but the country never attained independence.

Pandit Malaviya was his hero, his “Dharmatma.” But that is understandable. They shared the same outlook. Chintamani was a curious blend of rationalism and religiosity. He married a widow in defiance of prevailing social prejudice, but he also believed in chanting hymns and observing rituals. He believed in the immortality of the soul and communing with it. He invoked the souls of Mahadeva Govinda Ranade, Gopalakrishna Gokhale and others onto a tripod, consulted them and wrote his powerful editorials. This is perhaps the solitary instance of a newsman relying on necromancy. Sir Tej Bahadur Sapru said that but for Chintamani’s ceaseless efforts, social progress would not have taken place in Uttar Pradesh. Chintamani was a member of the Legislative Assembly of Uttar Pradesh, and was also Education Minister for sometime. He resigned when continuance became incompatible with his selfrespect. He championed the cause of the people in principalities. He voiced the grievances of Andhras in Hyderabad State. He represented the Rightists as the Second Round Table Conference. Pandit Malaviya tried to have him elected to the Central Legislature but failed. And Chintamani was defeated also in the elections held under the 1935 India Act. With this failure to get elected to U.P. Legislature ended his political career. He quit politics and served as a court member of Banaras Hindu University, with wonted distinction. Chintamani was courteous to his guests and to all those who sought his help. But if he detected some undesirable qualities in them, all contact ended then and there. He wanted his children to speak in English and Telugu but not in Hindi. Ironically, however, his son, Bala Krishna Rao, became an accomplished poet in Hindi. He loved Telugu but would not support the demand for a Telugu State. Though not the greatest of Andhra journalists, Chintamani was certainly among the great. - Y. V. Ramakotaiah Senior Journalist




(In this brand new series we bring to you non-Telugu technicians who have worked for the growth of Telugu cinema). “Cinematography is a job that can be either boringly technical or magical. I was never trained to be that technical. So for me it has to be magical.”


maya bazaar magician

-Fred Elmes, ASC


hese words by Frederick Elmes, renowned American cinematographer of such films as ‘Blue Velvet,’ ‘Night on Earth,’ ‘Hulk’ and ‘Brothers’ were aptly suited to Marcus Bartley, the genius cinematographer from South India who was also self taught and his works were magical indeed!

Early years

It was in 1931 the arrival of the talking cinema in India that kindled interest in a 13 year old Anglo Indian boy to become a cinematographer. Marcus Bartley then studying in Madras had a reason behind it. The photographs he had shot with the Brownie camera came out good and his father James Bartley encouraged him by giving him one roll film per month and told him that he can take eight good pictures with it. Bartley did not disappoint him. However the objections came only from his teachers for his new hobby as they felt it was obstructing his studies. “But then I was never a good student and almost failed in every subject,” Bartley once said laughingly.


James Bartley bought a better camera in 1933 and allowed Marcus to use it. The photographs he took with that camera were published in ‘The Madras Mail’ and ‘The Illustrated Weekly of India.’ He also used to send loads of photos to foreign magazines through Sports and General Agencies. Roll film manufacturer Agfa suggested to him a

few German periodicals and they too published his photographs. During this phase, Marcus Bartley learned the nuances of still photography from John Wilson, the art editor of ‘The Madras Mail.’ Turning 17, he had put a stop to his academic education and headed towards Bombay to join ‘The Illustrated Weekly of India’ as a press photographer under Stanly Jepson on a monthly salary of Rs. 70. After a couple of years of press photography, he felt there was no charm in it. An offer to shoot documentary


films came as a boon to him at this juncture. In December 1936 British Movietone in order to make documentaries on Western India, appointed Times of India as its representative. The General Manager of the company Harper Smith called Marcus Bartley and asked whether he knew how to handle a professional camera. Though he had not seen one till the British Movie tone sent a reconditioned Debri camera, he said he knew. Bartley took the camera to Joley, a German who was the Lab chief of Bombay Talkies to learn how to load the camera. On a trial basis he OCTOBER 2016

Bartely’s extraordinary craftsmanship can be found in the evergreen classic, ‘Mayabazar.’ the ‘lahiri lahiri lahirilo’ song sequence gives an impression that the entire song was shot outdoors during the night. In reality, Bartley shot the scene at ennore lake, near Madras at noon and the shoot lasted only for a few minutes. the rest of the portions were shot in the studio set. had shot a few scenes.

Filming documentaries

Soon Bartley was commissioned with work to film the Pandharpur festival and the farewell to Lord Wellington. Bartley accompanied him to the royal palaces of Gwalior, Bikanir, Jodhpur, Baroda and Jamnagar. He once said that his most difficult job as a documentary photographer was filming of the religious riots of Bombay in 1937. While on the job he said that he had received cooperation from the rioters than the British India police. The police in fact chased him to snatch his camera as he had filmed an assistant commissioner of police gunning down a couple of agitators for throwing boulders from the balcony. Somehow he had managed to escape in a waiting car. Though the scenes were edited in the news bulletins of British Movietone, they were shown in London, New York and Paris. In 1937 he had quit Times of India due to difference of opinion. As an independent cameraman commissioned by Motwani of Chicago Radio, he had covered the annual session of the Indian National Congress held in 1938 at Haripura in Gujarat in which such stalwarts such as Mahatma Gandhi, Netaji Subhash Chandra Bose and Jawaharlal Nehru participated. Bartley’s creative mind was longing for more. He did not find satisfaction in newsreel photography either as he felt there was no creativity in it. He made unsuccessful attempts to enter the Bombay film industry. Bartley returned to Madras.

Entry into film industry

Soon after he had returned to Madras, one of the pioneers of Tamil cinema, K.Subrahmanyam gave him the work to cinematograph a two OCTOBER 2016

reel comedy film on the most popular Tamil stage pair – N.S. Krishnan and T.A. Madhuram whom Subrahmanyam intended to introduce to cinema. For a week Bartley shot the scenes at K. Subrahmanyam’s MPCC studio (later S.S. Vasan took over and renamed it as Gemini Studios) and was paid Rs.50. Bartley felt his work was miserable but when released with one of Subrahmanyam’s Tamil movies, the audience enjoyed the short comedy film so much, later N.S. Krishnan and T.A. Madhuram became the most popular screen pair. By the end of 1938, Bartley joined Pragathi Studios on a monthly salary of Rs. 200. For Pragathi, he had cinematographed ‘Tiruvalluvar’ (1941) directed by Fram Sethna and Nandalal Jaswantlal’s ‘Vayadi.’ Bartley acknowledged that he owes Nandalal for teaching him pictorial compositions. He later came out of Pragathi Studios and joined the ‘Tiruvalluvar’ actor Serukulathur Sama who turned producer. When Sama returned to acting, Bartley joined Newtone studios and was part of it till 1947 working for many films including the Jupiter’s all time classic, ‘Kannagi.’ The turning point in Bartley’s professional career came when he worked for B.N. Reddi at Newtone studios while he was filming ‘swargaseema.’ By that time the foundation stone was laid for Vauhini Studios and Bartley was invited to join the studio.

Game changer

Bartley had a feeling that his work was not properly processed in other laboratories. So soon after joining Vauhini Studios, he had launched a lab and took the job of running it besides his job as a cinematographer. The move helped improve his craftsmanship. His first work at Vauhini


was ‘Gunasundari Katha.’ When B. Nagi Reddi took over Vauhini Studios and launched Vijaya Productions in partnership with Chakrapani, Marcus Bartley joined the banner to cinematograph such masterpieces as ‘Shavukaru,’ ‘Pathalabhairavi,’ ‘Pellichesi Choodu’ ‘Mayabazar, ’ and ‘Missamma’ and their Tamil versions, to name a few. As a cinematographer it was his most satisfying period.

Excellent craftsmanship

Nagi Reddi and Chakrapani respected his efficiency and provided him with everything he wanted. Thus Bartley had a total control over his department. His creation of the moon light (in a studio set) enhanced the beauty of the romantic scenes and is still talked about. It was even nicknamed ‘Vijaya’s moon light.’ Fine example for his extraordinary craftsmanship can be found in the evergreen classic, ‘Mayabazar.’ The ‘Lahiri Lahiri Lahirilo’ song sequence gives an impression that the entire song was shot outdoors during the night. In reality, Bartley shot the scene at Ennore Lake, near Madras at noon and the shoot lasted only for a few minutes. The rest of the portions were shot in the studio set. Children particularly enjoyed the way Ghatothkacha devoured laddus. Bartley shot it using the method called double exposure-mask. In a mask shot, the cinematographer gives half forward action and half reverse action to get that effect. So were the twist and twirl of the carpet and the cot scenes. The brilliant one was when young Sasirekha turns into an adult Sasirekha. Bartley’s lens showed the metamorphosis through her shadow in the pond. Bartley shot brilliant scenes with the legendary Mitchell camera. Interestingly, Mitchell camera was first de-


Bartley’s other famous works in colour include, ‘Sri Krishna Sathya,’ ‘Chakravakam,’ Vijaya’s ‘Sri rajeswari Vilas Coffee Club’ in telugu. His association with Nagi reddi and Chakrapani and his contribution to telugu cinema will be long remembered. Maya Bazaar remians a classic work of Bartley’s work.

veloped by Leonard in 1917, the year in which Marcus Bartley was born. Leonard later sold the design to George Mitchell, hence the name. The camera was popular as it was also well equipped for special effects. Most of the Hollywood films of the time were shot with Mitchell.

Experiment with colour

As early as in 1936, Bartley seem to have visualized the onset of colour in motion pictures and bought a 16 mm camera along with the first imported Kodak chrome colour film roll. From then on he was taking colour pictures for his personal use. The first colour processed film he had used was Geva colour. Bartley opined that one can emotionally stimulate the audience more in a properly worked colours on screen than in a Black & white movie. Bartley’s brilliance came to the fore in colour when he shot the Malayalam classic, ‘Chemmeen’(1965) directed by Ramu Kariat. Bartley received the gold medal at the Cannes International Film Festival for ‘Chemmeen’


and the national award as best cinematographer for the 1969 Tamil film, ‘Shanti Nilayam.’ ‘Chemmeen’ which won him humongous fame and Vijaya Productions, ‘Yehi Hai Zindagi’ gave him immense work satisfaction. Answering a query he once said, “as a cinematographer for ‘Chemmeen’ I had the privilege of holding deep discussions with its story writer Takazhi Sivasankara Pillai and the director Ramu Kariat. Sivasankara Pillai put a condition that his characters should not be glamourised and also that the ambience in the story should be retained. For that reason, we have to deglamourise our actors Sathyan and Sheela and shoot the film. In ‘Yehi Hai Zindagi’ there was a conflict between two different viewpoints. In that conflict we have to show both myth and reality. It was a novel and exciting experience for me.” Bartley’s other famous works in colour include, ‘Sri Krishna Sathya,’ ‘Chakravakam,’ Vijaya’s ‘Sri Rajeswari Vilas Coffee Club’ in Telugu


and ‘Ram Aur Shyam,’ ‘Ghar Ghar Ki Kahani’ in Hindi. His last work was for K.S. Sethumadhavan’s ‘Zindagi Jeene Ke Liye’ (1984). But his tryst with motion picture cameras continued as he took up the job of servicing them. This incident tells how much Bartley was revered by the next generation cinematographers. After servicing his camera, Bartley sent cinematographer Ashok Kumar a note praising his work in the Tamil film, ‘Nenjathai Killade’ (Incidentally though graduated in cinematography, Suhasini Manirathnam made her acting debut with this film). Ashok Kumar was so excited and happy he framed that note and kept it in his drawing room. “Technically our cinematographer’s talent is no less than that of the foreign cameramen. In present day conditions when films are not made in a planned manner, if our cameramen are still making good movies, then we can say they are much greater than Hollywood cinematographers,” he opined. On why he worked for very few films, Bartley replied, “to sign a movie I kept myself few conditions. The first condition is that I take one assignment per year and the second condition, the story should satisfy me. The third one, I should have belief in the director’s ability. An efficient director chooses the right actors. Since I have such conditions producers might have felt that I am a difficult person. That’s the reason I do not work on many films.” Leaving behind a rich repertoire of his works, Marcus Bartley reached the abode of the Lord on March 14, 1993. His association with Nagi Reddi and Chakrapani and his contribution to Telugu cinema will be long remembered.

- M. L. Narasimham OCTOBER 2016

india’s largest night-vision production facility in aP

bel to invest rs 300 cr

BEL inauguration at Nimmaluru in Krishna district.


harat Electronics Limited (BEL) will set up a advanced night vision products factory spanning over 50 acres at Nimmaluru Village near Machilipatnam in Krishna District of Andhra Pradesh by investing Rs 300 cr over a period of 4 years. Union Minister for Urban Development M Venkaiah Naidu laid the foundation stone for a state-of-theart factory of defence PSU to cater to the country’s futuristic requirements for night vision products. BEL, a Navratna defence public sector undertaking, is setting up the plant, on 50 acres of land. Andhra Pradesh Chief Minister N Chandrababu Naidu and Union Minister of State for Science and Technology Y S Chowdary and were also present at the ceremony. The advanced night vision products factory at Nimmaluru will enable BEL to expand its electro-optics business and carry out manufacturing and integration for the ongoing and upcoming projects, the company said. The facility will have state-of-the-art technology and infrastructure such as modern optics workshops, clean rooms of the highest standards, facility for thin film coating with higher durability and other modern OCTOBER 2016

SPDT and CNC Machines. As part of diversification and business growth BEL is looking for major expansion into high-end image intensifier tubes and thermal imaging detectors for night vision products, inertial navigation systems, electronic ammunition fuses, air traffic management radars, intelligent traffic management systems and solar power plants, said the company. In order to support Government of India initiatives such as Make in India, BEL is extending its support to startUp companies and medium and small scale enterprises through procurement of specific items from them. S K Sharma, Chairman & Managing Director of BEL, said, “Bharat Electronics has been continuously engaged in design, development and manufacturing of Electro Optics equipment and Night Vision Products for defence and paramilitary forces. The new facility has been planned now to establish a stateofthe-art factory to cater to the futuristic requirements for Night Vision Products.”. “To achieve self-reliance in defence, there is a need for establishing world-class manufacturing facilities. BEL has maintained a consistent


policy of R&D investments and has also launched various new facilities. BEL is Coming up with a modern Defence Systems Integration Complex at Palasamudram in Ananthapur District of Andhra Pradesh to give further thrust to indigenous development and production of future defence systems.”, Sharma added. Venkaiah Naidu said 87 per cent products to be manufactured at the plant will be supplied to the defence forces. BEL has been engaged in design, development and manufacturing of Electro Optics equipment and Night Vision Products for defence and paramilitary forces. “The new facility has been planned to establish a state-of-the-art factory to cater to the futuristic requirements for night vision products,” said S.K. Sharma. The Advanced Night Vision Products Factory at Nimmaluru will enable BEL to expand its Electro-Optics business and carry out manufacturing and integration for the ongoing and upcoming projects. It will have state-of-the-art technology and infrastructure such as modern optics workshops, clean rooms of the highest standards, and facility for Thin Film coating with higher durability, BEL said.



WINDS OF CHANGE Quality trumps Star Power In t-town

telugu ďŹ lm industry is undergoing a massive transformation, at every level, where quality of cinema is slowly gaining upper hand over star power.


decade ago, a film's success was judged by how long it ran at the box-office. Those were the days when a film running for 100 days in 200+ centres was seen as a hallmark for success and the longevity of a film, after its release, defined its status. Inadvertently, a lot of blockbusters in the early 2000s followed a similar pattern of success; however, by the end of the first decade of the 21st century, Telugu cinema had reached a point which it wasn't prepared for. The rise of social media, competition from dubbed films, online piracy and shrinking shelf life of films compounded the issues that had been grappling the industry for years altogether and it led to a long phase of course correction. And finally, after all these years, the industry seems to have found its rhythm once again. Today, a film's success is judged by its opening weekend's performance at the box-office, quite similar to the trend in Bollywood and even Hollywood. No wonder, producers of several big budget films have made up



their mind to milk every ounce of revenue their film can generate in its opening weekend. As a result, a big budget film ends up releasing in over 1000 screens out of the 1700-1800 theatres in Andhra Pradesh and Telangana, and almost every other film is pushed back by a week or two to make way for the big budget film. In rare cases, like that of Baahubali, over 90% of the theatres all over the two Telugu speaking states end up screening the same film. This is how the business of filmmaking has evolved in the past few years. However, once again, there's a catch. The lacklustre performance of several A-list actors' films in recent times has put a big question mark about the imbalances prevalent in the industry. In 2016 alone, films like Sardaar Gabbar Singh and Brahmotsavam bombed at the box-office despite taking a phenomenal opening on the first day of their release. The cumulative loss from these two films, especially for distributors and exhibitors, was OCTOBER 2016

films like Pellichoopulu would have been termed as niche ďŹ lms with limited market appeal until few years ago. Not any longer. huge. And on the other hand, action dramas like Sarrainodu and Janatha Garage rewrote several records, and surprisingly, low-budget films like Pellichoopulu, Kshanam did exceedingly well. So, what exactly is the formula for success? While no one has been pinpoint to what exactly works at the box-office, there are ample indications that people are finally embracing good quality content over star power. Films like Pellichoopulu, Kshanam and even Nani starrer Gentleman would have been termed as niche films with limited market appeal until few years ago, but today, they are as mainstream as any. However, their crowd pulling capacity is still restricted to urban centres in the two states and overseas territories. Nevertheless, some producers have figured out the business formula to making a commercially viable content-oriented film with limited reach. A case in point being Pellichoopulu, which was made with a budget of around Rs 1.5 crores and ended up collecting a share of more than Rs 10 crores. Similarly, Kshanam turned out to be a profitable venture as well with close to 60% of its revenue coming from the multiplexes in Nizam territory. With the production of films increasing on a year-on-year basis, the industry is currently facing yet another problem - availability of theatres. In the first week of October, there are no less than 4-5 films, all featuring A-list stars, vying for attention from the public. And everyone knows that the films will eat into each other's market share; however, the production houses and producers are left with no other choice but to take that calculated risk to draw the crowds to their films. A 'solo release' has become, almost, like a jackpot in the industry today and it's becoming all the more rare with so many films - big, OCTOBER 2016

medium and small budget films lined up for release. Considering all these challenges, the bigger predicament which is pinching a lot of filmmakers is the buzz about a film on social media, especially Facebook and Twitter, which is wielding its effect on almost every major film. In the past, it used to take at least 3-4 days for the word to spread around about any films; however, today, it has boiled down to just 3-4 minutes to get the word out about how the film is. The writing on the board is clear - Make good films or sink without a trace. There is no particular method to


make a good film and it depends on a lot of factors. You never know what would click with the audience. However, the notions about commercial formula, which encompasses 6 songs and 4 fights spread across the film, are slowly changing. With new faces emerging in the industry every other Friday, it's throwing up new challenges in an industry which is struggling to shed its own skin to embrace the new. The winds of change has already arrived in the Tollywood territory and it all depends on how well everyone embraces it to write a new chapter in Telugu cinema.

- Hemanth kumar CR





The company will start drilling three wells at Palar, starting early next year.

airn India will be taking up exploratory and appraisal drilling of ten wells in Palar block at the coast in Nellore district Andhra Pradesh with an investment outlay of $150 million. An Expert Appraisal Committee (EAC) under the Ministry of Environment, Forests and Climate Change examined and gave its nod to the proposal under Coastal Regulatory Zone (CRZ) perspective for drilling to Cairn India. The project was granted environmental clearance in 2011. The PR-OSN-2004/1 block has been awarded by the government during NELP-VI licensing round in 2007 for hydrocarbon exploration. Exploration activities will be carried out according to the Production Sharing Contract (PSC) signed between CIL and the Centre, the minutes of the meeting of EAC held last month said. "Estimated project cost is $15 million per well. The EAC, after deliberations and verifying the facts regarding location of the exploratory/appraisal drilling wells, plotted by the project proponent (Cairn India), approved the project from CRZ perspective, subject to the terms and conditions stipulated by the APCZMA (Andhra Pradesh State Coastal Zone Management Authority). The Committee further desired that the Ministry may forward their recommendations to the sectoral IA Division for revising the environment clearance accordingly," the EAC said. A Cairn India official said it will be taking up three wells in the first phase. "To begin with, we plan to drill three wells at Palar, starting early next year," the official said. PR-OSN-2004/1

block is part of the Palar basin. It is located in the Bay of Bengal in the continental shelf area along the coast of Andhra Pradesh and Tamil Nadu. Total area of the block is 9,416.54 sq km, out of which approx 4,000 sq km has been declared as no-go area as restriction on drilling activity has been imposed by the Department of Space, due to presence of Shri Harikota Satellite Launch Centre along the western block boundary.


Based on results of 2D and 3D seismic survey done in 2008-2009, eight hydrocarbon leads are considered prospective in the block, the EAC said. "The employment potential for the exploration and appraisal phase is very limited as highly skilled manpower will be involved in drilling operations. If production operations start after successful exploration and appraisal, local employment is possible," the EAC minutes added.



chief minister’s

social network

CM Chandrababu Naidu is an active social media user. Many of you have been actively following his activities with admiration. Here are a few snapshots from his twitter account and those on him.

w w







HAPPENING AP Resorts to come up on Prakasam coast

The State government has prepared a blueprint to develop a series of beach resorts on the Prakasam coast by roping in big private players and introducing water sports to woo tourists, both national and international, says District Tourism Development Officer M. Nagabhushanam. Prakasam district is endowed with a coastline of about 100 km. Chief Minister Chandrababu Naidu is vetting the proposals submitted to unleash the full potential of the Prakasam beaches, including Ramayapatnam, Kothapatnam, Voderavu and Ramapuram.

Kapu Corporation achieving targets

Andhra Pradesh Kapu Welfare and Development Corporation Director Yerra Venugopala Rayudu said many districts were achieving the targets of the Corporation while helping many persons to start self-employment schemes. He said Srikakulam was able to start over 500 units within no time. He interacted with BC Corporation Executive Director B. Srihari Rao and asked about the utilisation of Rs.4 crore sanctioned to the district. Srihari Rao said many persons belonged to Kapu and Telaga communities were able to a lead decent life with their self-employment units.

Mangalagiri stadium to be ready by 2018

The exclusive cricket stadium coming up at Amaravati in Mangalagiri by the Andhra Cricket Association will be completed by 2018, according to ACA joint secretary Ch. Arun Kumar. The stadium would have a spectator capacity of 30,000 and the association was planning to come up with 50 corporate boxes accommodating 20 persons. The cost of the stadium had witnessed escalation owing to delay and increase in the prices of raw materials. The construction would now cost Rs. 110 crore for completion. The stadium, coming up on 23 acres, will have a club house in the second phase which will house guest rooms, swimming pool, badminton and squash courts, open air theatre and a restaurant.

$1b WB loan for AP’s Core Capital


The World Bank will release its first quantum of $1 billion loan in April 2017 for the construction of AP’s new capital Amaravati, said Chairman of Capital Region Development Authority Sreedhar Cherukuri. Construction of Core Capital, including key government and administrative structures, would be taken up with this loan. But the cash-strapped State had opted for phased disbursal of the huge loan keeping in mind the hefty penal charges. “We have chosen to avail ourselves of the WB

loan in two phases. There is no truth in reports stating that the WB had cut down the loan amount by half. The World Bank will release $500 million in April 2017 and we have chosen to avail the loan in two phases. The first tranche of $1 billion will be released in phases he said.

AP to get Rs 52,000 crore petroleum package

The Centre has readied a package worth Rs 52,000 crore from the petroleum ministry. Addressing a meeting at Swarna Bharat Trust at Venkatachalam, Union minister for petroleum and natural gas Dharmendra Pradhan has said that the Centre had cleared a major package from his ministry for the benefit of Andhra Pradesh. He said that the package would cost the Centre Rs 52,000 crore. "The package includes expansion of HPCL refinery, Petro-Chemical complex and Petroleum university," said Pradhan. He said that they have also decided to grant additional LPG connections to eligible poor in the state of Andhra Pradesh.

NTPC executing 1GW solar park in AP

NTPC Ltd is on course to implementing the country's largest 1 GW (1000 MW) solar photo-voltaic power generation park at Kadiri in Anantapur district of Andhra Pradesh. Phase one of the project of 250 MW has been completed and has commenced power generation. The balance 750 MW will be completed by next fiscal, once all the clearances are secured and power purchase agreements inked, V.B. Fadnavis, Regional Executive Director (South), NTPC, said. The power generation major NTPC has an installed capacity of 265 MW of solar photo-voltaic power generation in the South, which includes a 250 MW solar PV unit at Anantapur, a 5 MW unit at Port Blair in the Andaman & Nicobar Islands and a 10 MW solar PV plant in Ramagundam. Phase I has been executed by Tata Solar (100 MW), Sterling and Wilson (50 MW), BHEL (50 MW) and Lanco (50 MW). Phase II consisting of 750 MW is expected to be ready by March 2018.

Digital Disruption and Innovation and the state of Andhra Pradesh are uniting policymakers, government heads, business decisionmakers and thought leaders on 6th October, 2016 at Hotel Novotel in Vizag. The Chief Minister of Andhra Pradesh N Chandrababu Naidu will be the Chief Guest Speaker at the Digital Disruption and Innovation Summit. The key agenda will be to discuss, know and contribute to the efforts that AP has been putting to create



a digital infrastructure that gives its citizens access to employment, inclusion, innovation opportunities, educational outcomes, healthcare delivery, and accelerates economic competitiveness, smart city services and more.

j Satyanarayana part-time UIDAI chief

Former IAS officer J Satyanarayana was on September 6 appointed as part-time chairperson of Unique Identification Authority of India (UIDAI), tasked with issuing Aadhaar numbers. The post has been lying vacant following resignation of Infosys co-founder Nandan Nilekani in 2014. The Appointments Committee of Cabinet has approved Satyanarayana’s appointment as parttime chairperson of UIDAI, an order issued by Department of Personnel and Training said.

Nod for National School of Drama Centre

Member of Parliament Maganti Muralimohan stated that Union Minister for Tourism and Culture Mahesh Sarma has in principle agreed to set up National School of Drama Centre in Rajamahendravaram. Muralimohan said that he met the minister in Delhi and appealed him to set up the school in Rajamahendravaram as it is being the cultural capital of the state having so many artists and conducting many festivals related to fine arts. The MP said that he met Railway Minister Suresh Prabhu also and appealed to hand over Havelock Bridge to Rajamahendravaram Municipal Corporation. He said that the Minister made it clear that if the state government pays Rs.9.5 crore to Railways, the bridge will be handed over to state government.

Vizag on path to become ODF city

Having constructed the highest number of individual household toilets in the State, GVMC is ready to make a preliminary declaration of Visakhapatnam as open defecation-free. Of the total of 12,720 toilets planned for construction, 12,100 have been completed, including at Anakapalle and Bhimili, and some in hilly areas could not be completed. Taken up under the Swachh Bharat Mission (SBM) and the Swacch Andhra Corporation, the toilets have been constructed after a survey that identified 197 open defecation points.

CII national exhibition centre at Amaravati

The Confederation of Indian Industry (CII) has expressed its willingness to set up a National Exhibition Centre for Development of Entrepreneurship and Innovation at Amaravati. During a meeting with Chief Minister N Chandrababu Naidu in Hyderabad, a CII delegation led


by Director General Chandrajit Banerjee submitted its proposal and was promised to be allotted 10 acres in the capital city for establishment of permanent facility. Naidu suggested they could function from the Medha Towers at Gannavaram till their full-fledged office comes up in Amaravati. The CII delegates told the CM that the proposed exhibition centre would be on the lines of Pragati Maidan in Delhi and that the industry body was committed to helping in enriching the human resource A.P has in abundance.

IIDT to come up on SVU campus

The State government is planning to set up International Institute of Digital Technologies (IIDT) on Sri Venkateswara University campus, Tirupati. Gujarat Forensic Sciences University and Praxis Business School will help the government in running the proposed schools in cyber security and data analytics. Academicians from the Gujarat Forensic Sciences University, who are experts in imparting high-quality research and education in forensics, cyber security, and digital forensics, will provide masters education programmes to the students at IIDT’s cyber security institution.

SCR to run special trains for Dasara

The South Central Railway (SCR) will run 22 special trains for Tirumala Tirupati Devasthanams (TTD) Brahmotsavams and Dasara Festival.The trains will be operated from October 3 to 31. Eighteen special trains will be operated between Kakinada and Tirupati and the services will stop at Kakinada Town, Samalkot, Rajamahendravaram, Tadepalligudem, Eluru, Vijayawada, Tenali, Ongole, Nellore,, Gudur, Srikalahasti and Renigunta. Four trains will be operated between TirupatiH.S. Nanded-Tirupati and the trains will halt at Renigunta, Srikalahasti, Gudur, Nellore, Ongole, Tenali, Vijayawada, Khammam, Warangal, Kazipet, Secunderabad, Malkajgiri, Kamareddy, Nizamabad, Basar and Dharmabad and Mudkhed stations, said the railway officials in a press release.

Vizag is going to be first US smart city

Stating that Visakhapatnam was going to be first US smart city, USTDA Representative, India, Mehnaz Ansari said some of the smartest planners in the world are working hard to help it become the first smart city in India. Washington is really interested in Vizag. President Obama’s office was following up on the smart city developments in India, the other two being Ajmer and Allahabad.







East Godavari



West Godavari














kadapa YSR


























Loans Target















in Rs Cr


2016-17 Target















No. of Loans















in Rs Cr


2016 Target upto August















No. of Loans















Rs. Cr



Stree NIdHI, a SCHeMe to ProVIde fINaNCIal SuSteNaNCe to Poor WoMeN HaS BeNefIted More tHaN 1.2 laKH todate.







Pic 1: CM Chandrababu Naidu congratulating J Satyanarayana for his elevaton as part-time chairman of Unique

Identification Authority of India (UIDAI).

Pic 2 Kapu Students who were extended financail help for foriegn studies by the state government expressing their gratitude to the Chief Minister.

Pic 3: CM delivering keynote speech at the inaugural of the three-day BrICS urbanisation forum Meet at Vizag. Pic 4: Chandrababu Naidu inspecting the final touches to offices at Velagapudi Interim Secretariat. finance Minister y ramakrishndu is also seen.

Regd. No. H-HD-1082/2016-18 Published on: 01/10/2016


Posting Dt: 6th

Andhra Pradesh Eng October 2016  
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