Lok Sabha Question No. 2675 (UNSTARRED), answered on 2017-03-17
Subject: Development of Andhra Pradesh
Ministry: FINANCE
Asked by: MURALI MOHAN MAGANTI, MEKAPATI RAJAMOHAN REDDY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE LOK SABHA UNSTARRED QUESTION NO. 2675

TO BE ANSWERED ON Friday, March 17, 2017/Phalguna 26, 1938 (Saka)

## Development of Andhra Pradesh

## 2675. Shri M. Murali Mohan & Shri M. Raja Mohan Reddy:

Will the Minister of FINANCE be pleased to state:

- ( a)  whether  the  Government  has  initiated  action  to  fulfil  the  assurances  made  in  the  Andhra Pradesh Reorganisation Act, 2014 of granting special category status and by allocating funds for infrastructural, Industrial projects, Educational Institutions, construction of Capital city, Secretariat and development of Polavaram river project;
- (b) if so, the details and the present status thereof along with the funds released for the above projects as on date;
- (c)  the  reasons  for  delay  in  establishing  Railway  zone  at  Visakhapatnam,  new  Port  Trust  at Duggirajupatnam, Nellore and setting up new Steel Plant at Kadapa district; and
- (d) the other steps taken/being taken by the Government to fulfil all the provisions made in the Act?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE

(SHRI ARJUN RAM MEGHWAL)

(a)  to  (d):  Yes.  The  Central  Government  has  already  initiated  action  to  fulfil  the  assurances made  in  the  Andhra  Pradesh  Reorganisation  Act,  2014.  Since  bifurcation  of  the  State, Rs.10,461.04 crore has been released to the State in terms of provisions made under the Act. This  includes  releases  of  Rs.3979.50  crore  for  resource  gap  of  2014-15,  Rs.1050  crore  for development  of  7  backward  districts  of  Andhra  Pradesh,  Rs.2500  crore  for  development  of essential infrastructure in new Capital city and Rs.2932.54 crore for Polavaram Irrigation Project. It  has  further  been  decided  to  provide100%  of  the  remaining  cost  of  irrigation  component  of Polavaram Project for the period starting from 1.4.2014, to the extent of the cost of irrigation component on that date. The Asian Development Bank (ADB) has approved Rs.4165 crore in loans  and  grant  for  infrastructure  development  along  the  Vizag-Chennai  Industrial  Corridor. Acquisition  of  land  for  setting  up  AIIMS  at  Mangalagiri  in  the  State  has  been  done  and  preinvestment activities  have  been completed at the site.  The academic sessions in most of the educational  institutions  have  commenced  from  the  temporary  campuses  set  up  with  central support provided by the respective line Ministries and actions are being taken by them for early establishment  of  such  institutions.  Further,  in  order  to  support  the  developmental  efforts  of Government of Andhra  Pradesh  the  Central  Government  will  also  provide  special  assistance measure to Government of 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 Externally Aided Projects (EAPs) signed and disbursed during 2015-2016 to 2019-20 by the State. In respect of the establishment of Railway zone at Visakhapatnam, new Port Trust at Duggirajupatnam,  Nellore  and  new  Steel  Plant  at  Kadapa  district  of  the  State  the  concerned Ministries in coordination with the State Government of Andhra Pradesh and other stakeholders are in the process of considering the feasibility issues for setting up of these establishments. The Central Government is committed to fulfil the provisions made in the Act.

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