AP CM Naidu urges Jaitley to exempt Fiber grid project from GST

Andhra Pradesh Chief Minister N Chandrababu Naidu on Tuesday requested Finance Minister Arun Jaitley to exempt Andhra Pradesh Fiber grid project from Goods and Services tax (GST).

Naidu made the request in a meeting during his two-day Delhi visit, to which Jaitley assured him that the central government will take the decision after discussing it in the GST Council.

Andhra Pradesh's Fiber grid project aims to provide end-to-end affordable broadband connectivity to every household in the state, but is facing increase in project costs for buying set-top-boxes due to the GST levied on it.

After the meeting, Naidu told media that he met the Central Ministers to discuss about various state issues and provisions of bifurcation act, and Polavaram project in specific.

Terming Polavaram project a dream for everyone in Andhra Pradesh, Naidu said, "The state government has sent revised estimates approximating 54,000 Crores for the project construction on 16th August, 2017. It is with Central Water Commission's consideration. The Finance Minister has also agreed to release project dues of around 2800 Crores to the state at the earliest."

"After NITI Aayog recommendation, the state government has taken the responsibility to execute the project construction in the interest of the state," he added.

Polavaram project is termed a National project in the bifurcation act, and the Centre has agreed to completely fund project costs incurred after April 1, 2014.

In the meeting, Naidu also discussed 'Special Package' announced by the Centre for Andhra Pradesh, post the bifurcation.

Last year, Central government had announced a special package for the development of the state after 14th Finance Commission recommended against granting special status to states.

Naidu also said that Jaitley has agreed to consider the demand for bridging revenue deficit of around 16,000 Crores that arose due to state bifurcation.

Naidu arrived in Delhi on Monday evening and met Minister for Road Transport and Highways Nitin Gadkari to discuss about Polavaram and road projects in the state.

He also met the Minister for Petroleum and Natural Gas Dharmendra Pradhan to discuss about upcoming Petroleum complex in Andhra Pradesh's Kakinada.

Naidu said that Gadkari has agreed to visit the Polavaram project site on October 3, 2017 along with laying foundation for Inland waterways and several road projects in the state.