One government proposes, the next disposes
The HinduSince sweeping to power in Andhra Pradesh last May, Chief Minister Y.S. Jagan Mohan Reddy and his YSR Congress Party government have cancelled or put on hold a number of high-profile State contracts and projects, many involving foreign partners who now face huge losses. The case of Amaravati On their face, some of the Jagan government’s actions have merit, most notably in the case of planning for Amaravati, the proposed new State capital city, by Mr. Jagan’s predecessor, N. Chandrababu Naidu and President of the Telugu Desam Party. In doing so, he rejected recommendations from a Central government expert committee to expand an existing city in the State, instead choosing a reportedly flood-prone area well away from the nearest significant population centre. As Mr. Jagan himself has noted, the Central government reneged on a previous promise to grant Andhra Pradesh “Special Category Status”, which would have enabled the State to provide tax holidays to new investors.