The Central Government of India has announced special assistance of Rs.1,000 Cr to the new state of Andhra Pradesh during the current financial year of 2015-16.
Out of the total, Rs.350 crore will be allotted for the development of seven backward districts – three in north Coastal Andhra and four in Rayalaseema – each at a budget of Rs.50 crore each. Rs 350 Cr had been announced for the construction of the new capital Amaravati while Rs.300 crore would be released towards the Polavaram project, which has been declared a National Project.
The announcement of special assistance came in after CM Sri N. Chandrababu Naidu made a two-day visit to New Delhi, where he met several Union Ministers and stressed on the need for providing liberal assistance to the State.
Mr. Naidu stated that injustice was done to the new State of Andhra post bifurcation and the Central Government should handhold while building everything from scratch.
The funds that have been sanctioned are in addition to Rs.4,403 crore released to the State during the previous financial year. This included Rs. 350 crore for the seven backward districts, Rs. 2,303 crore for bridging the resource gap, Rs.1,500 crore for creating infrastructure facilities in the new capital and Rs.250 crore for Polavaram Project.
The Union Finance Ministry said in a press release that the assistance for the capital construction would include construction of the Raj Bhavan, High Court, Secretariat, Legislative Assembly, Legislative Council and other essential infrastructure.
Union Minister of State for Science and Technology Y. Satyanarayana (Sujana) Chowdary said he was confident that funds would be released within a week. He said that the Niti Ayog was positive to the State’s request for grant of special category status and the vice-chairman is actively holding talks with different departments on the issue. He hoped that there would be clarity on the issue before October 22nd, the foundation laying day for Amaravati.