Three Capitals…Two Options: BCG recommendations on AP

US-based Boston Consultancy Group (BCG) which had submitted its report to AP CM YS Jagan yesterday, has given two options to the state government but recommended that the second option will best suit the state which is Vizag is a good choice for Executive Capital. BCG has also back the ‘Three Capitals’ idea and made many suggestion to make governance hassle free and efficient.

In the first option, BCG suggested that the CM’s office, Secretariat, seven directorates and commissionarates should be established here. Along with them departments of industries, infra, tourism and which are not directly connected with public should have office spaces in Vizag. The BCG also recommended to have an emergency Assembly in the beach city while the full-fledged Assembly in Amaravati with departments of education, agriculture and local bodies. The first option backed the idea of having High Court in Kurnool and Bench in Amaravati and Vizag.

In the second option, BCG endorsed to have CM and Governor’s office along with all the HODs in Vizag while in Amaravati about 15 departments and in Kurnool, the High Court, Tribunals and all the commissions.

The BCG also made important observations that and advised that the state should be geographically divided into six regions i.e, UttarAndhra, Godavari Delta, Krishna Delta, South Andhra, East and West Rayalaseema. In these regions, satellite commissionarates should be established in order to make things easy for government officials who constantly need to run from one place to another if the ‘Three Capitals’ concept is being implemented.

Suggesting that to build a capital with over Rs 1 lakh crore is not feasible, BCG said that it is high risk and every year, the government has to pay Rs 8000 to Rs 10000 crore as interest for loans. Even if the government goes ahead with developing Amaravati, the region will take at least 40 to 50 years to become a revenue generating capital. Instead such money can be spent on irrigation projects which can bring desired results. The total money required to construct all the irrigation projects in the state is Rs 1,76,000 crore and just for Polvaram’s R&R package, the budget is Rs 33,000 crore.


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