The Centre has announced a special assistance of R1,000 crore to Andhra Pradesh during the current financial year for the development of backward districts of the state.
Of the total allocation for the fiscal, R350 crore would be earmarked for the development of seven backward districts, which include three in north coastal Andhra and four in Rayalaseema at R50 crore each, a government release stated.
An equal amount has been earmarked for the construction of new capital Amaravati, while R300 crore would be released towards the Polavaram project that has been declared a national project.
Besides, a tax incentive has also been provided in the Finance Act, 2015.
Earlier, chief minister N Chandrababu Naidu had said that injustice was done to the state after bifurcation and that it was the central government’s mandate to provide the necessary handholding to the new state which had to build everything from scratch. Accordingly, it is learnt that Prime Minister Narendra Modi has, in principle, accepted the state’s request to lay the foundation stone for the new capital on October 22.
The Centre has decided to continue to support the programmes for development of backward districts of Andhra Pradesh and provide assistance for creation of new capital of Andhra Pradesh, including the Raj Bhawan, high court, government secretariat, legislative assembly, legislative council, and such other essential infrastructure.
The Andhra Pradesh Reorganisation Act, 2014 bifurcated the state and Telangana came into being with effect from June 2, 2014. Having regard to the resource availability, the central government is required to make appropriate grants and also provide adequate benefits and incentives in the form of special assistance to the backward areas of states.
Accordingly, an amount of R4,403 crore was released to Andhra Pradesh during 2014-2015 which included R350 crore at R50 crore per district for the development of seven backward districts covering Rayalaseema and north coastal region, R2,303 core for bridging resource gap, R1,500 crore for construction of Raj Bhavan and for creating infrastructure facilities in the new capital of the state and R250 crore for Polavaram irrigation project.