Rajahmundry to soon have urban development authority: Chief minister

Chief minister Y S Rajasekhara Reddy today announced that an urban development authority would soon be created for Rajahmundry. This is keeping in view the pace at which the city was developing, he said.

Addressing a press conference here today, the chief minister said that steps would be taken in this direction to facilitate the regional development of the city.

When asked to elaborate on the government's plan to provide power to industries at Rs 2 per unit, Reddy said that he has already held discussions with Reliance and other private players in power production, including the Oil and Natural Gas Corporation and asked them to supply power to the industries at Rs 2 per unit as the production cost of power works out to nearly Rs 1.60 per unit for them. He added that Reliance had promised to get back on the suggestion soon.

To a question on whether his government was in favour of establishing ship-breaking units at Kakinada, the chief minister said that he has constituted an experts committee to study the pros and cons of establishing ship-breaking units.

"The committee will go into the in-depth of socio-ecological problems if any, in view of opposition from certain quarters in this regard," he said.

Reddy said that the committee would examine the feasibility of setting up ship-breaking units throughout the coastline of the state. "A decision will be taken after taking into consideration the expert committee's report," he added.

On the commitment to irrigation projects in the state, the chief minister said that Rs 46,000 crore would be spent in the next five years on several irrigation projects in the state, out of which Rs 10,000 crore alone will be invested on the Polavaram Project.

Reddy said that the state government would call for global tenders for the execution of the project on an annuity basis.

"The contracting companies will first invest their own funds on the execution of the project. After the project is completed, the cost will be reimbursed in a span of 15 years on an installment basis," he said.

He assured the Godavari delta farmers that irrigation to their two crops would not be affected on account of the execution of the Polavaram Project.