Being CBN - andhranation.files.wordpress.com · having access to healthy food, eat this kind of food,” he says. Assuring the banker that his government would do everything to

industry sector

2.16%

ime: 9:00 am, Venue: Jubilee Hills, HyderabadIt’s a hushed cool morning in Hyderabad and Andhra Pradesh chief minister N Chandrababu Naidu has already been up for five hours. His yoga session is over, the morning papers read and a simple breakfast consisting of organic fruits and milk is done with. Outside the chief min-ister’s personal residence a hum of activ-ity begins — security personnel readying to escort Naidu, a team from the AP de-partment of information and public rela-tions ready with their cameras to record the chief minister’s day, Naidu’s person-al photographer, ministers and advisors all await the appearance of the CM. A lone woman, the additional director gen-eral of police (intelligence) of the new Andhra Pradesh, AR Anuradha, gives the chief minister a detailed brief on matters of security.

Time 9:40 am, Venue: Jubilee Hills, HyderabadThe 10 minute meeting between the chief minister and the ADGP (intelligence) is

done with and out comes Naidu. A posse of film producers waiting outside the briefing room is among his first visitors. After exchanging courtesies the film pro-ducers talk shop: “Sir you must help us, support us,” says one producer. “They are discriminating against us now in Hy-derabad. We need to set up a separate film industry,” he says. Naidu responds: “They will do that, it is expected, they will harass you for the next one year at least. You have my government’s support in all your endeavours, we are with you.”

Naidu is on the move now. The walkie-talkie crackles: “Charlie Mike A [CM-A as the security agencies refer to him on their talkbacks] is ready to roll!”

Much later, Naidu would speak frankly to ET Magazine on this issue that invades life, government and the homes of every Telugu person in the two states. “From the beginning, I have been saying, both re-gions are one community, they are Telugu people, don’t divide them,” he says. “Boundaries can be divided but don’t di-vide their hearts, this is not correct. Today, I want to unite Telugu people again.”

Time 10:15 am, Venue: Hotel Taj Krishna, Banjara HillsFirst up on the agenda is a Nabard Credit Seminar for Andhra Pradesh. Nabard has promised to lend ̀ 1 lakh crore to the state agriculture sector and Naidu delivers a customary speech to bankers. “I’m not here to give you a lecture,” he concludes. “All of you are free to ask me questions, so please go ahead.” One banker questions the CM about why he was not doing more to promote millets in Andhra Pradesh. “Do you eat millets?” quips Naidu. “Yes, once a day, but I eat rice more often,” answers the banker. “That’s the problem. Do you have diabetes?” laughs Naidu. The banker an-swers in the affirmative. “See, I knew that,” goes on Naidu. “Our people are eat-ing double polished rice — it has to be white otherwise they won’t eat it. We need to change the mindsets of the people. Rich people eat healthy food, the poor, despite having access to healthy food, eat this kind of food,” he says. Assuring the banker that his government would do everything to help promote millets, Naidu tosses catch-phrases around.

“We have to identify the low-hanging fruit first,” he says. “You are better edu-cated than me, more knowledgeable and you are working in this sector. I want a so-lution. We are not discussing how to solve the problem of agriculture — if nothing else works, we blame nature,” he says.

Naidu wants tangible growth in the agri-culture sector. Despite a rainfall deficit of 36% last year, agriculture grew by 11.32% he points out. He wants to increase irriga-ble lands from one crore acres to two crores in this fiscal. He wants a 10% in-crease in ayacuts. He sets a target for his team and the bankers — 20-25% contribu-tion to GSDP from agriculture this year. “Is it not possible?” he asks.

ET Magazine gets a rare exclusive peek into a day in the life of Andhra Pradesh CM Chandrababu Naidu and the challenges that he battles in steering a brand new state

special feature24

:: Sandhya Ravishankar

T

Being CBN

FEBRUARY 15-21, 2015

AP’S FINANCIAL POSITION

Source: AP Budget 2014-15

GSDP (provisional estimates)

For 2014-15 For 2014-15

(These figures are inclusive of anticipated additional assistance

from central government of `14,500 crore)

Proposed Expenditure of Estimated revenue deficit at

fiscal deficit at non-plan expenditure at

plan expenditure at

Revised estimates of 2013-14 show fiscal deficit at 2.87% of

GSDP at

a 13.46% growth

services sector

7.25% `24,487cr

`1,11,824cr `6,064cr

`12,064cr`85,151cr

`26,673cr

4,75,8594,19,3912013-142012-13

Figures in ` croreRevised estimates of 2013-14 show

revenue surplus of

`1,023cragriculture sector

grew at

6.94%

In 2013-14

1

4

5

3

2

P H O T O S : S A N D H YA R AV I S H A N K A R

Naidu 2.0 is one that has upgraded from mistakes made in the past. The “High Tech CM” is visibly reaching out to farmers. A farm loan waiver scheme promised in the runup to the elections has already begun rolling out — `4,665 crore has been released by the state government to banks in the first tranche. His speeches are peppered with references to the powerful “raitu” (farmers) votebank which brought him down fatally in 2004 as he pur-sued his dreams of a “high-tech Hyderabad” at the cost of the rural poor.

“Technology is something that should be useful to all sectors,” Naidu told ET Magazine. “Even today, I’m number one in the country in terms of using technology in government. How do you use digitalisation in agricultural economy? How do you change the lives of ru-ral poor by technology? For example, I can tell you — if I get all maternity cases online and also infants up to the age of five years, I can nurture all women who are pregnant as well as all children up to the age of five. I can then reduce infant mortality and maternal mortal-ity. That’s the benefit I am looking at,” he says.

Time 11:30 am, Venue: Sikh Village, SecunderabadIt’s the wedding of the son of former member of Parliament Chada Suresh Reddy at the Im-perial Gardens in Secunderabad. Naidu’s visit is short — he hands a pair of bouquets to the young couple, blesses them and obliges his guests by posing for photographs. He readily agrees to a selfie with a young man in the crowd that has gathered around him. Naidu’s is still the final word in the Telugu Desam Par-ty (TDP). Although governance takes priority, running a party of the size of the TDP is no easy task and Naidu juggles both efficiently, with the help of his son Nara Lokesh and his daughter-in-law, both MBA grads, who were instrumental in helping Naidu strike the right pitch to victory in the 2014 elections.

Time 12:00 pm, Venue: L-Block, SecretariatA Japanese business delegation is at his office. Serious business is afoot as investors make a beeline to meet the CM and discuss invest-ments in the cash-strapped state. Naidu ar-rests the attention of this small Japanese busi-ness delegation sitting in front of him. He says all the right things: “I am looking into this per-sonally”, “I am the one who built Hyderabad and you know how this city is today”, “I want to model our new capital on Singapore”, “You will have the best infrastructure in this state” and so on. He then promises that his govern-ment would roll out the red carpet for them.

Naidu needs the Japanese and just about

anybody willing to come set up shop in the state. In December 2014, Naidu stated that there was no money to pay even government salaries, an indication of the precarious finan-cial position of the state. Borrowings are help-ing the state limp along but real investments need to kick in to bring Andhra back from the brink. A grim Naidu says that the Centre is not helping, despite the TDP being part of the rul-ing alliance. “Because they (Centre) are hav-ing some trouble they are not moving,” he says. “But we are having deep problems. I am facing them now.”

YSR Congress Party’s senior leader Mysoora Reddy is a staunch critic of Naidu de-spite having worked with him for eight years. “The financial situation is because of the promises made by both CMs in both states,” says Reddy. “Now they are forced to tell the people that they are unable to fulfill the prom-ises. The 2014 vote on account of the com-bined state said revenues of `1.4 lakh crore were available. Now, AP will get `80,000 crore and Telangana gets `70,000 crore so there is technically no loss. The problem is the tall promises made by both CMs,” he opines.

Reddy also says that Naidu has played his cards all wrong. “Industrial incentives to be paid to industries were pending for the past five years but Naidu has gone ahead and paid them all in one installment,” he explains. “Whereas for farmers, payments are fixed in five installments. He is squandering the avail-able money. He wants to empty the excheq-uer and go to GoI and say there is no money to pay salaries ,” he says.

Time 12:30 pm, Venue: L Block, SecretariatA bowl of muskmelon is offered to the chief minister’s guests. Naidu has changed gears yet again. “In my last stint as chief minister, I was very keen on information technology, I was talking only about that,” says Naidu in between bites of organic muskmelon. “Now, IT is over. In this term, I am interested in data science,” he says, exciting his guests, repre-sentatives of American firm Dragonfly Data Factory no end. “Yes, yes, yes sir, that’s what we are talking about,” says the representa-tive as he flaps his arms, thrilled. “I want data on soil analysis in every village, every dis-trict,” continues Naidu.

The American firm wants to set up a data factory with over 16,000 data scientists col-lating data and making sense of numbers for the government as well as for international clients. “You can set it up in Vizag, it will be the knowledge hub of the new state,” says Naidu. “I want the Internet of Things to hap-pen. Aadhaar accounts need to be linked to

special featureFEBRUARY 15-21, 2015

25

1. Chandrababu Naidu meeting with a Telugu

film producer at his residence; 2. Naidu

leaving his residence to begin the day’s work;

3. The AP CM’s convoy; 4. Blessing the young

couple at the wedding of the son of former

MP Chada Suresh Reddy; 5. Selfie time with a

guest at the wedding; 6. Meeting with

Japanese firm Gakking Holdings; 7. Naidu

welcomed at Nabard Credit seminar at Hotel

Taj Krishna 8. Tying up investments with

Takashi Shimada of Indo-Japan Business Cen-

tre; 9. Officials make presentations on the sta-

tus of Andhra Pradesh’s treasury; 10. Naidu

demands better delivery from officials;

11. Naidu poses with guests at the wedding

of daughter of Mallampati Gandhi at Nagole,

Hyderabad; 12. Naidu addresses bankers at a

Nabard Credit seminar at Hotel Taj Krishna

AP VS TELANGANAAndhra Pradesh state began with

a revenue deficit of

while Telangana acquires revenue surplus of

(Telangana state has tax to GSDP ratio of 9.7)

Expenditure of AP based on population ratio is

Excise of new state to be

Revenue sales tax is

Overall revenue share of new

state to be

that of united Andhra’s

of united Andhra’s

Tax to GSDP ratio of

of united Andhra’s

of united Andhra’s

while Telangana loan burden at

for 2014-15

`15,691cr

58%

55%

6.8

47%

47%

`61,000cr

`3,555cr

Source: Assocham

Source: AP Budget 2014-15

Andhra Pradesh loan burden at

`85,000cr

6

9

7 8

10

11

mid-day meals, school attendance, land ownership, education, employment, every-thing. I need to be able to analyse human resources with qualifications, mineral wealth, infrastructure, everything. And I don’t want human intervention in all of this. I want the Internet of Things and then link it up to Artificial Intelligence,” he says with a flourish. “I am prepared to spend money,” says Naidu, something which he does not have much of at the moment. “Let us start with data on public satisfaction, give me a report immediately and I will ask all my de-partments to liaise with you,” he finishes along with the bowl of melons.

YSR Congress leader Mysoora Reddy is skeptical. “They [the TDP government] can-not deliver anything concrete,” he opines. “The problem is that the Opposition is also weak.”

Time 1:00 pm, Venue: L Block, SecretariatAndhra Pradesh Secretariat employees file into the chief minister’s office demanding a pay hike on a par with their Telangana coun-terparts. Naidu listens but demurs. “You too need to improve your performance,” he tells them. “Our capacity is still not up to speed. I have to consider the public too, what will they

think? I will see, let me look into it,” he says. In the subsequent weeks, however, Naidu would sign off on a 43% hike in pay for govern-ment employees, despite a finance crunch.

Time 1:30 pm, Venue: Lunch hall, SecretariatThe chief minister is behind on his appoint-ments and a working lunch is in order. Or-ganic millets, boiled organic vegetables and fruits are served by one of only two men who are allowed to cook and serve Naidu’s food. Manickam is on duty until lunch and he does the honours as his boss talks shop with a team of doctors.

Time 2:30 pm, Venue: Conference Hall, SecretariatA presentation follows the working lunch and then yet another set of Japanese investors, this time from the Indo Japan Business Cen-tre. Naidu’s key men sit with him, updating him and the Japanese on the progress of pa-perwork in various government offices. Promises are made of a task force and a high powered committee to look solely into Japa-nese investments.

Naidu then takes five minutes to review building plans of the new secretariat coming up near Vijayawada.

Time 4:00 pm, Venue: Conference Hall, SecretariatAfter this troop in about 25 officials. They are bureaucrats from the revenue earning de-partments of the state — commercial taxes, excise, mines, transport, registrations and forests. Naidu never raises his voice but his words cut deep. A dressing down is in order. “You are all aware that we have a problem but not facing it,” he says in ominous tones. He picks on an error — “This is not inevitable but an oversight,” he says. Apologetic and nerv-ous bureaucrats quickly showcase power-point presentations. Naidu is relentless — picking up errors, quizzing his team on data, asking for more data and pooh-poohing the available information. “I want a scientific ap-proach from now onwards,” he tells his team. “I don’t want to keep telling the public that we are in a helpless situation. I will meet the fi-nance minister and talk to him as well,” he says. His focus is on Telangana, Tamil Nadu and Karnataka. “Are they [Telangana] effi-cient or are we inefficient?” he asks. “Are there leakages? I want to analyse,” he says.

Naidu’s public spats with his Telangana counterpart K Chandrashekar Rao (KCR) are part of ugly folklore. KCR has called him a “thief”. Naidu has called KCR’s leadership “visionless”. “He was my follower. I nurtured him, handholded him, why should I call him names?” says Naidu to ET Magazine. “He is not a stranger, he was no entity at that time. My father-in-law was the party president and chief minister. At that time, he [KCR] was my follower. I built him. He may talk it’s okay, that is his headache, why should I bother about that? I nurtured and developed so many peo-ple like that.”

Mysoora Reddy is critical of the power games between the two. “Both CMs are play-ing to the galleries and not behaving like statesmen,” says Reddy. “Statesmanship is the need right now.”

Time 7:30 pm, Venue: Nagole, HyderabadNaidu sets off for yet another wedding, this time that of the daughter of Mallampati Gan-dhi at Nagole in Hyderabad. During the drive, Naidu tells ET Magazine that the problems are many but they do not give him sleepless nights. “No. I will work for as long as I can work, then I will go and sleep happily,” he smiles. When quizzed about whether he plans to follow the Tamil Nadu policy of state monopoly in liquor marketing and distribu-tion, Naidu is thoughtful. “We are studying all models,” he explains. “It is after all alcohol, we should not promote it. We must be careful about it and at the same time we should regu-late and restrict as far as possible,” he says.

Time: 9:00 pm, Venue: Madhapur, Hyderabad It is a time for political camaraderie as Naidu graces the occasion of a political rival’s family wedding. The grandiose affair in Hi-Tex Con-vention Centre is the wedding of the grand-son of former Congress MP and industrialist Subbarami Reddy. Naidu is there for a couple of minutes. A quick photo op later, he heads back home to Jubilee Hills where his assistant Umapathy awaits him with more organic fruits and vegetables. Just another day in the life of the chief minister. �

(The writer is a freelance journalist based in Chennai)

special feature26FEBRUARY 15-21, 2015

for building a new capital city (Demands put forward to the 14th Finance Commission)

Special Category status unlikely, alternative special

package possible

`41,500cr(Demands put forward to the

14th Finance Commission)

Special grant-in-aid of

`1.02lakh cr

`4,665cr

`3,600cr

to banks towards farmer loan waiver

scheme, needs

for second phase of disbursements

Has released

Inter-linking of rivers

`1,000crto be released by Centre towards building of new

capital city

70% grants and

30% loans for

externally aided projects

3%interest waiver on capital investment and working capital for new industries

15%income-tax discount on

capital allowance

Exclusive venture capital fund likely for

the state

`20,000crcapital for construction of new Secretariat and other govt buildings over a 5-year period

WHAT NAIDU WANTS

NAIDU PROPOSES, CENTRE DISPOSES

11