Andhra Pradesh gets Rs 12,476 crore special assistance

Union minister of state for home Hansraj Gangaram Ahir said the central and the AP governments have been working together to implement the provisions made in Andhra Pradesh Reorganisation Act, 2014 which include establishment of several institutions and launch of certain projects, as mentioned in Schedule XIII of the Act.

“Government of India has released a total amount of Rs 12,476.76 crore as special assistance to the state of Andhra, which includes Rs 2,500 crore for establishment of the new capital city of AP,” he said in a written reply in Rajya Sabha. 

NDA constituent TDP has pulled out its two ministers, Ashok Gajapathi Raju and Y S Chowdary, from the central government over failure to grant special category status to Andhra Pradesh. 

Ahir said the Andhra Pradesh government has also communicated to the central government on the release of development grants, resource gap and Polavaram project among other issues apart. 

It has also communicated on implementation of apportionment of assets and liabilities and division of employees in respect of institutions listed in Schedule IX and X and continuity of services in respect of institutions listed in Schedule X of the APR Act. 

“The 14th Finance Commission, without making a distinction amongst states, recommended an enhanced devolution of 42% of the central government’s tax revenues to states to cover the resource gap. 

“In case of Andhra Pradesh, the Commission recommended that the central government would provide revenue deficit grant of Rs 22,113 crore for a period of five years, in addition to the enhanced tax devolution. Funds have been released to AP on this account for 2015-16 and 2016-17,” he said. Work related to Schedule IX and X and XIII of the AP Reorganization Act is under progress in consultation with both the state governments, Ahir said.