TPN | Sumanth Jangam
Amaravati: The Andhra Pradesh Reorganisation Act of 2014 bifurcated the erstwhile state into Andhra Pradesh and Telangana, designating Hyderabad as the joint capital for both states for 10 years, until June 2, 2024. During this period, Andhra Pradesh was permitted to use Hyderabad’s Secretariat and government offices while developing its new capital in Amaravati. However, with the transition to a temporary Secretariat in Amaravati, over 8,200 Secretariat and Heads of Departments (HoD) employees were required to relocate from Hyderabad. To ease this shift, the state introduced special benefits, which, despite the completion of new office buildings in Amaravati and the expiration of the 10-year agreement, continue to burden the state’s finances, raising questions about their necessity.
The Andhra Pradesh government implemented a range of benefits to support relocating employees, including a five-day workweek, a 24% House Rent Allowance (HRA) as per the latest Pay Revision Commission (PRC), subsidized train travel for weekend commutes to Hyderabad, and 146 hostel rooms in premium locations like Raintree Park in Gollapudi and Ibrahimpatnam. These measures were designed to address the challenges of moving to Amaravati, which initially lacked urban infrastructure. However, with modern office buildings now operational in Amaravati, the continued provision of these benefits—costing the state an estimated hundreds of crores annually—has sparked debate. Many employees, having established lives in Hyderabad, resist permanent relocation, citing inadequate housing, schools, and healthcare facilities in Amaravati as reasons for retaining these incentives.
The persistence of these benefits, even after the 10-year agreement’s end and the establishment of new office infrastructure, highlights a disconnect. The government’s investment in Amaravati’s administrative facilities was expected to encourage employees to settle in the new capital, yet many prefer to commute, relying on the five-day workweek and train subsidies to maintain ties with Hyderabad. The 146 hostel rooms, while helpful, indicate a temporary mindset rather than a commitment to making Amaravati home. Financial analysts argue that the state’s budget, already stretched by capital development and welfare programs, cannot sustain these benefits indefinitely, especially when office infrastructure is no longer a barrier.
The government’s decision to continue these costly incentives suggests a reluctance to enforce full relocation, possibly to maintain employee morale or avoid administrative disruptions. However, this approach raises concerns about fiscal responsibility, as Andhra Pradesh grapples with the challenge of developing Amaravati into a fully functional capital. With modern office buildings in place and the Hyderabad agreement expired, why is the government still footing the bill for these extra benefits?
