Centre Gives AP Special Grant Of Rs. 1,000 Crores

The central government, which has decided to continue to support the programs for the development of the backward districts of Andhra Pradesh and provide assistance for the creation of its new capital, today announced a further "Special Assistance" of Rs. 1,000 crores during the current financial year of 2015-16.

According to a press release at New Delhi, the central government will provide a special assistance of Rs. 350 crore (at Rs. 50 crores per district) for the development of seven backward districts covering Rayalaseema & the north coastal region, Rs. 350 crores for the new capital of the State, and Rs. 300 crores for the Polavaram irrigation project. A tax incentive has also been provided in the Finance Act, 2015.

An amount of Rs. 4,403 crores had also been released to Andhra Pradesh during 2014-2015, which included a similar Rs. 350 crores at Rs. 50 crores per district for the development of the same seven backward districts, Rs. 2,303 crores for bridging the resource gap, Rs. 1,500 crores for the construction of a Raj Bhavan and for creating infrastructure facilities in the new capital of the State, and Rs. 250 crores for the Polavaram irrigation project, the release added.