Centre approves special assistance to AP

​New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday given its statutory approval for the special assistance measure for Andhra Pradesh by way of special dispensation in funding of externally aided projects (EAPs) and funding of irrigation component of Polavaram project.

According to the modalities for providing central assistance to Andhra Pradesh, the central government will provide special assistance measure to Andhra Pradesh, which would make up for the additional central share the state might have received during 2015-16 to 2019-20, if the funding of centrally-sponsored schemes (CSS) would have been shared at the ratio of 90:10 between the Centre and the state.

The special assistance will be provided by way of repayment of loan and interest for the EAPs signed and disbursed during 2015-2016 to 2019-20 by the state. Centre to fund 100% of the remaining cost of the irrigation component of the Polavaram project for the period starting from April 1, 2014 to the extent of the cost of the irrigation component on that date.

Andhra Pradesh government will execute the project on behalf of Government of India. However, the overall coordination, quality control, design issues, monitoring and clearances-related issues are to be dealt by the Polavaram Project Authority of the Ministry of Water Resources, River Development & Ganga Rejuvenation.
The Polavaram Project Authority will also assess the cost of the irrigation component as on April 1, 2014 in consultation with the Department of Expenditure, Ministry of Finance.

This support for capital expenditure by way of repayment of EAP loans would help and assist the newly- formed state of Andhra Pradesh to put the state's finances on a firmer footing and promote economic growth. Further, the central funding of the irrigation component of the Polavaram irrigation project and its execution by the state government shall expedite completion of the project and the increase irrigation prospects in the state benefiting the people at large.

It may be recalled that the Government of India, while fulfilling its commitments under the Andhra Pradesh Reorganisation Act 2014, has already provided "Special Assistance" of Rs 1,976.50 crore to the state during 2016-17. The amount includes Rs 1,176.50 for resource gap, Rs 350 crore for the development of 7 backward districts covering Rayalaseema and north coastal region and Rs 450 crore as assistance to the capital city.

Apart from this the Ministry of Water Resources, River Development and Ganga Rejuvenation has also provided Rs 2,081.54 crore for the Polavaram Irrigation Project during the current financial year. Thus the central government, after the enactment of the Reorganisation Act, has provided central assistance of Rs 10,461.04 crore to the state of Andhra Pradesh which includes Rs 4,403 crore released during 2014-15, Rs 2,000 crore released during 2015-16 and Rs 4,058.04 in released in 2016-17.

Welcoming the move, Union Ministers M Venkaiah Naidu and Y S Chowdary told media that it was the resolve of the Centre that was on display in the present approval. They said the Centre was committed to the development of Andhra Pradesh and the hand-holding would continue till it was fully developed. They thanked Narendra Modi for honouring the commitment given.