CM in dilemma over LPG price hike relief

he state government is in a dilemma over subsidising further the price of LPG cylinders, the price of which was recently hiked by Rs 35.

Though the Chief Minister, Mr K. Rosaiah, is keen on providing some relief to consumers, the quantum of relief is not decided. The government already subsidises each cylinder by Rs 25.

In discussions with the CM, officials laid out the figures. The state had been paying Rs 16 crore every month towards the previous subsidy of Rs 25 on each cylinder. Mr Rosaiah decided to discuss the issue threadbare in the cabinet meet scheduled for July 1.

The government had earlier considered waiving Value Added Tax on the increased price of diesel.

Sources said the officials told the Chief Minister that the net benefit to the customer would be 40 paise on each litre but the revenue loss to the state could be Rs 350 crore per year.

“While individual customers will not feel any benefit and acknowledge the government gesture, the state will lose heavily,” a senior minister pointed out.

The Chief Minister also heard the recommendations of members of the Group of Ministers on fee reimbursement to tighten the scheme. The suggestions included requiring 75 per cent attendance and passing every year in order to qualify, and withdrawal of the facility for students whose family income crosses Rs 1 lakh and who possess a car.

Dam spillway lies unrepaired

The urgent repairs suggested for the spillway of the Nagarjuna Sagar dam nine months ago are yet to be undertaken though another monsoon season has started.

Experts are worried that the safety of the dam may be in jeopardy if floods occur before the spillway is repaired.

Part of the spillway and adjoining vents were damaged in the record-level discharge of water from Nagarjuna Sagar during the 2009 floods. The dam safety committee recommended immediate repairs and the irrigation department prepared proposals and also selected some companies to take up the work.

However, the government intervened and cancelled the proposal to hand over the work on nomination and directed the officials to go for short tenders.

But it took the department three months to call short tenders. When the bids were opened, only one company was found to be qualified. But the irrigation officials are now trying to relax the tender conditions again and this has generated another controversy.

All the files related to the issue have now been placed before the Chief Minister, Mr K. Rosaiah, who will take a final decision on the matter.

"The safety panel recommended immediate action but we have little time left,” said Mr Adityanath Das, secretary of irrigation. “We have asked the panel whether we can take up the work post monsoon.”

With repairs at Srisailam almost completed, the inflows from Almatti, Narayanpur and Jurala will start reaching in July. This has added to the worries about the dam’s safety.

World Bank gives state Rs 3,720 cr

The state government inked a pact with the World Bank (WB) for a loan of Rs 3,720 crore to improve roads, water and sanitation facilities in addition to other urban services.

The state and WB officials signed the agreements in the presence of the Chief Minister, Mr K. Rosaiah, and the bank country director, Mr Roberto N. Zagha.

The catch in the loan, however, is that except for the portion of the loan given for roads, the WB funds can be claimed as reimbursement only. The state will have to spend on various projects by itself and then claim reimbursement from the WB.

The government will also adopt the “user-has-to-pay” policy for the water supply and sanitation projects in which the community contribution is fixed at Rs 21 crore. This will be 20 per cent of the government’s contribution of Rs 123 crore. The total project cost is Rs 864 crore.

The state aims to benefit 20 lakh people by improving rural water supply and sanitation in 16 districts.

CM, employees fail to break ice on pay hike

Talks between the Chief Minister, Mr K. Rosaiah, and the state employees failed once again on Tuesday with the employees demanding implementation of the pay hike with effect from July 2008.

Mr Rosaiah and the employees also disagreed on the percentage of hike. While the Chief Minister agreed to increase it by 38 per cent, the Joint Action Committee of employees demanded 41 per cent.

Rosaiah opts to go by Gentleman's Agreement, wants Geeta as Dy CM

The Chief Minister, Mr K. Rosaiah, is likely to elevate the tourism minister, Dr J. Geeta Reddy, to the post of deputy chief minister in the Cabinet reshuffle slated to take place before the commencement of the Assembly budget session next month.

Mr Rosaiah is proposing the deputy chief ministership to revive a key facet of the Gentlemen’s Agreement of 1956.

The agreement signed by Telangana and Andhra leaders before the formation of Andhra Pradesh had several provisions to prevent discrimination against Telangana.

The Chief Minister’s attempt to revivify it should be seen in the context of the ongoing struggle for a separate Telangana.

If Dr Geeta Reddy is not chosen, another MLA from the powerful ‘Reddy’ community would get the post.

The Chief Minister also wants to induct the Speaker, Mr N. Kiran Kumar Reddy, in the Cabinet. He will be allotted the finance portfolio that is presently being held by the Chief Minister himself.

Mr Rosaiah will put his reshuffle proposals before the Congress president, Mrs Sonia Gandhi, when he goes to Delhi to attend the Chief Ministers’ conference on price rise on January 27.

He is hoping that by the beginning of the budget session, the problems relating to resignations by Congress MLAs from Telangana region would have been sorted out.

But if the Telangana issue stretches beyond January, he will go for the revamp only after completion of the budget session, as by convention no reshuffle or expansion of ministry takes place during the legislative session.

The Chief Minister is presently holding key portfolios such as finance, excise, power, commercial taxes, and women and child welfare.