Centre will fulfil all the promises as per the AP Reorganisation Act till the state becomes revenue surplus. It has to be supported and taxation incentives will be given, said Arun Jaitley, Finance Minister
Finance minister Arun Jaitley on Sunday said the Centre will extend help to the Andhra Pradesh government in its developmental activities, as the state is reeling under severe financial crisis post bifurcation.
Inaugurating the 22nd CII Partnership Summit in Vizag, Jaitley said the Centre will fulfil the promises as stipulated in the AP Reorganisation Act, 2014.
“The Centre will fulfil all the promises as per the AP Reorganisation Act till the state becomes revenue surplus. The state has to be supported and taxation incentives will be given,” Jaitley said, supporting a strong investment pitch made by N Chandrababu Naidu, chief minister of Andhra Pradesh, to investors.
Naidu has sought all kinds of assistance in building a greenfield capital city in Amaravati and is looking at various options for revenue mobilisation to build the state from the scratch.
“Despite all the problems, AP has started off with 11% growth rate which is a very good start for a new state. With more of port-led developmental activities and focused investments into manufacturing, the state is poised to become one of the key manufacturing states in the country,” he said. “We expect Andhra Pradesh to report double-digit growth and become one of the key engines of growth of the country.”
The state is still staring at a deep financial crisis. It has received about Rs 1,850 crore as special assistance till date from the central government. The state government has sought financial assistance to the tune of Rs 57,109 crore in the coming five years. The wish list includes Rs 20,000 crore for state capital, Rs 12,109 crore to fill revenue deficit, Rs 5000 crore for industrial parks, Rs 5,000 crore to establish institutions lost to Telangana under Schedules 9 and 10, subsidies in taxes similar to that of Uttarakhand, and funds for completion of Polavaram by 2018.
Jaitley said Andhra Pradesh has two great features which make it an ideal destination for investments. “One is the high standard of entrepreneurship qualities having a lot of appetite for taking risk and the other essence is the leadership qualities of chief minister Naidu,” he said.
The state government has embarked on balanced growth and development wherein the state would turn into a ‘Haritandhra Pradesh’.