AP keen on tapping CSR funds for creating capital

The Andhra Pradesh government is keen on unlocking the potential corporate social responsibility (CSR) funds of companies as part of concentrated efforts to build the new capital city.

"CSR forms an important option for the purpose of creating common-use facilities in the capital city. The approach would also cement the industry-state partnership for creating conscious value-addition for creating sustained high-income livelihoods for individuals in the state," said Parakala Prabhakar, advisor to AP government on communications.

Stating that "high value-addition" in every activity would be government's mantra going ahead, he said the state would tap CSR and Centre's allocations for the implementation of integrated schemes, to create sustainable development in the state.

Andhra Pradesh, which had pegged a revenue deficit of Rs 15,000-16,000 crore for the current fiscal, is keeping all options open to plug the shortfall in finances. While the united state had a window to borrow up to 27 per cent of the gross domestic product, upping the limit would be a huge sigh of relief to AP.

On how the state would balance the revenue-expenditure matrix in the upcoming Budget, Prabhakar said any recommendations from the Finance Commission to hike the borrowing limit would open funding avenues including "securitisation, fresh borrowing, unlocking the value of state corporations besides the Centre's grants."

In such a pursuit, the state government would have to be wary of the Fiscal Responsibility and Budgetary Management (FRBM) Act, he added.

Sivaramakrishnan Committee

Meanwhile, he said the Union government-constituted Sivaramakrishnan Committee, mandated to study the prospects of locating the new capital for the state, would hold the last leg of consultations with the state government on July 26 to conclude its findings. Though the committee had kept all stakeholders guessing on its observations and inclination, the state government is inclined towards the Guntur-Vijayawada stretch.

In the committee's meeting tomorrow with chief minister N Chandrababu Naidu, the state leadership is expected to pitch for the Vijayawada-Guntur region as it lies at the geographical centre of the residual state.