Events & Issues

New Delhi, 23 January 2020

Three Capital Formula

NEXT ADVENTURE OF AP

By Dr.S.Saraswathi

(Former Director, ICSSR, New Delhi)

A special session of the Andhra Pradesh Legislative Assembly has passed the AP Capital Region Development Authority (APCRDA) Repeal Bill and the AP Decentralisation and Inclusive Development of All Regions Bill on 21 January after a heated debate and eviction of 17 TDP MLAs from the Assembly. In the place of the on-going project of constructing a world-class dream capital at Amaravati initiated by the previous TDP government, a decentralised three capital formula for distribution of functions of the three main organs of the government is proposed in this Bill. With 151 members in the House of 175, the passage of the Bill in the Assembly was a foregone conclusion, but the ruling YSR Congress does not enjoy majority in the legislative council for a smooth sail.

Capital city for Andhra Pradesh, the remainder of the original Andhra Pradesh, which has retained the name after the separation of Telangana in 2014, has become a battleground between two regional parties. Recall, this State has faced capital city problem when it was separated from the old Madras Presidency also when it claimed Madras city.

Chief Minister Jaganmohan Reddy ever since coming to power seems to be bent on burying his predecessor’s pet project of constructing a superb capital city at Amaravati for the State. It became a major item in the agenda of changes that usually follow when a regime changes. The present government of YSR Congress Party has wrested power from the TDP.

Two committees -- Boston Consulting Group (BCG), a US-based global management consulting firm, and the G.N. Rao Committee set up by the government -- have examined the question and approved the idea of three capitals. AP Government constituted a 16-member High Power Committee to examine the recommendations of the expert committee and the BCG to help resolve what is considered as “capital city crisis” within three weeks. Surprisingly, matters have moved remarkably fast.

When the bill becomes law, it will be another historic capital shifting case though not in the Tughlakian style. Amaravati is not yet constructed to be a full-fledged capital city. Nor is it similar to shift between Moscow and St. Petersburg as part of a revolution. Recalling those cases is only to bring home the fact that location of capital is a politically sensitive subject in all forms of government.  

In October 2015, Prime Minister Narendra Modi laid the foundation for the Amaravati project when TDP, an ally of NDA was in power. The interim secretariat, an Assembly complex, and interim High Court are all presently located in Amaravati.

A capital city has a special status in any country though it is not the biggest or the richest. It is political power centre at the national capital as well as at State capital. Location of the capital and distribution of “capital functions” between two or more cities are matters relating to distribution of power and resources besides all-round infrastructure development.

The reason behind promoting three capitals given by the Jaganmohan Reddy is the “strong need to decentralise development” in all the three regions of the State. It is stressed in the report of the BCG titled “Strategy for Balanced and Inclusive Growth in Andhra Pradesh.” It seems to have taken a cue from the experiences of the green-field capitals elsewhere and suggests that the reconsideration on the capital city is part of over-all development plan of the State.

Under the three capital formula, Amaravati would remain the legislative capital, while Kurnool in Rayalaseema would become the judicial capital, and Visakhapatnam in north-coastal region the executive capital. The last mentioned being a well-developed city and has good infrastructure and may not need much investment to be the executive capital. Choice of Kurnool for judiciary in a relatively backward region seems to be in accordance with an old commitment made in 1937 in the Sribagh Agreement between Rayalaseema and coastal Andhra.

Unified capital at Amaravati is now practically abandoned as a huge financial misadventure and environmentally unsustainable. A budget of one lakh crore was made for Amaravati, and 33,000 acres of agricultural land from private farmers and 26,000 acres from other sources were obtained by the TDP government.

The BCG report has also divided the State in six regions – Uttarandhra, Dakshinandra, Godavari, and Krishna deltas, and East and West Rayalaseema – each of them assigned with specific field for development.

Such changes affect normal life of many people and mean total dislocation for many professionals. Protests have risen in many places particularly against the proposal to shift the capital of capitals (secretariat) from Amaravati. Farmers, villagers, professionals such as advocates, women’s groups are in the forefront of protests. The National Commission for Women (NCW) has taken suo moto cognisance of reports of attacks on women and is sending a team to ascertain the truth. TDP President Chandrababu Naidi and 17 MLAs were taken into police custody for violating prohibitory orders.

Farmers have a genuine grievance over the proposal to diminish the status of Amaravati.  Protesting farmers said they voluntarily gave up about 32,000 acres of fertile land for building the capital. TDP is supporting the farmers disappointed by the government’s decision.

A brief survey around the world to recall the experiences in various places in shifting the capital city doesn’t yield any pleasant picture. Several countries have voluntarily and under compulsion of circumstances have changed their capital cities and several of them who did this in the last century were democracies as well.

Planned construction of capitals is not many. Noteworthy among the few are Washington D.C., (US), New Delhi (India), Ottawa (Canada), Canberra (Australia), Quezon City (The Philippines), Islamabad (Pakistan), and Dhaka (Bangladesh). They are all national capitals. In India, planned State capitals include Gandhinagar (Gujarat), and Chandigarh (Punjab and Haryana).

The model of South Africa which has three capital cities – Pretoria for administration, Cape Town for legislature, and Bloemfontein for judiciary – seems to have inspired AP. In fact, several countries have developed two or multiple capitals. For the Netherlands, de jure capital under the Constitution is Amsterdam, but The Hague is the seat of government. For Chile, San Tiago is administrative and judicial capital and Valparaiso legislative capital. Kuala Lumpur and Putrajaya are the two capital cities of Malaysia. Colombo houses the national executive and the judiciary in Sri Lanka but the legislature is in Sri Jayawardenepure Kotte. Russia has undergone two major shifts – from Moscow to St.Petersburg and from there back to Moscow for political reasons.

Chhattisgarh, Kerala, Madhya Pradesh and Uttarakhand have not concentrated legislative, executive, and judicial functions in one city. J&K and Ladakh have the need for separate summer and winter capitals. AP can also distribute capital functions in multiple cities without creating chaotic conditions.

The State government has to ensure that the three capital formula does not enhance expenditure or result in wastage of time, effort and expenditure already incurred. Nation cannot afford to be making expensive experiments or “brilliant mistakes” beyond our affordability when neeru, nidhulu and paripalana (water, funds and administration) for all as mentioned by the Chief Minister have to be our priorities.---INFA

(Copyright, India News & Feature Alliance)