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AP House rocked by World Bank official's statement

Syed Amin Jafri in Hyderabad

The controversial remarks of World Bank president James Wolfensohn on the reforms in the power sector and power tariff hike in Andhra Pradesh rocked the state legislative assembly on Tuesday, with the entire opposition accusing the Chandrababu Naidu government of bartering the state's interests to the bank.

The House witnessed an acrimonious debate on the issue for nearly four hours with the Congress, Bharatiya Janata Party, Majlis-e-Ittehaadul Muslimeen and left parties lashing out at the government for accepting the World Bank's condition's for availing a billion dollar loan.

Leader of the Opposition Dr Y S Rajasekhar Reddy, Congress legislator Dr M V Mysoora Reddy, BJP floor leader N Indrasena Reddy, MIM floor leader Asaduddin Owes, Communist Party of India-Marxist member N Narasimhaiah and CPI-ML (New Democracy) legislator Gummadi Narsaiah condemned World Bank president James Wolfensohn's remarks. They said that he had no business to advise the Andhra Pradesh government.

Wolfensohn had announced in Washington on Saturday that his institution was responsible for the hike in power tariff in the state.

Towards the fag-end of the heated discussion, two left legislators squatted on the steps of the Speaker's podium raising slogans while Congress and MIM legislators demanded that the government table copies of the World Bank project appraisal report, loan agreement and other documents pertaining to the loan for the power sector. Amidst noisy scenes, M V Krishna Rao, who was on the chair, adjourned the House for the day.

The opposition parties termed the remarks of James Wolfensohn at a media conference on September 2 as 'gross interference in the policies of the state government and an affront to the self-respect of the people of the state'. The BJP, an ally of the ruling Telugu Desam, was equally vitriolic in its criticism of the state government.

Earlier, replying to the discussion, Minister for Power Kothapalli Subbarayudu defended the reforms and listed the steps taken to develop of the power sector to enable it to 'provide uninterrupted and quality power to the people'.

However, Subbarayudu refused to table the documents pertaining to World Bank loan saying that they were available on the Internet.

Referring Wolfensohn statement, the minister said, "There is no evidence of any intention on the part of the World Bank to interfere in the affairs of Andhra Pradesh. The tenor of the statement is general in nature, outlining the economic philosophy of lending by multilateral lending institutions like the World Bank with regard to the recovery of costs in utilities, with particular reference to electricity utilities. The mere expression of views with regard to the state of the tariff situation and recovery of costs cannot be construed as an interference in the affairs of a state or a state government."

The minister also tabled the transcript of the statement made by Wolfensohn.

"The government will not brook any interference from any quarter, leave alone the World Bank, nor will the government lose sight of the interests of the people of the state. It is fully committed to the welfare of the people of Andhra Pradesh and viability of the power sector, which is so essential for the overall economic growth of the state," the minister asserted.

EARLIER REPORT
WB chief's statement sparks fresh row on AP power tariff hike

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