Lok Sabha Question No. 3143 (UNSTARRED), answered on 2018-03-14
Subject: Special Economic Package
Ministry: PLANNING
Asked by: BHARATI DHIRUBHAI SHIYAL

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA UNSTARRED QUESTION NO. 3143 TO BE ANSWERED ON 14.03.2018

## SPECIAL ECONOMIC PACKAGE

## 3143. DR. BHARATIBEN D. SHYAL:

Will the Minister of PLANNING be pleased to state:

- (a) the names of the States provided with special economic package during the last four years;
- (b) the policies and guidelines followed by the Government while announcing these special economic packages;
- (c) whether the Government is contemplating to provide special economic package; and
- (d) if so, the details thereof, State-wise?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (RAO INDERJIT SINGH)

(a) During the last four years, 2013-14 to 2016-17, special packages provided to different States are as under:

(i) Andhra Pradesh: Special Development Packages for Andhra Pradesh as per the provisions of Andhra Pradesh Reorganisation Act, 2014 (i) Rs.350 crore for development activities in seven backward districts of Andhra Pradesh consisting of four districts of Rayalseema and three districts of North Coastal Region of Andhra Pradesh (ii) Rs.500 crore for the construction of Raj Bhawan and Assembly, etc. and (iii) Rs.1000 crore for creation of essential urban infrastructure for the new capital region of Andhra Pradesh for Storm water drainage scheme at Vijaywada city (Rs.460 crore) and Comprehensive underground sewerage scheme at Guntur city (Rs.540 crore). The Polavaram project was accorded investment clearance for Rs.10,151.04 crore (at 2005-06 price level) in 2009. As per the press release of the Ministry of Finance dated 08 September, 2016 it has been decided to fund the Polavaram irrigation project. The Central Government will provide 100% of the remaining cost of the irrigation component only of the project for the period starting from 1.4.2014, to the extent of the cost of the irrigation component on that date.

- (ii) Telangana: Special Development Package of Rs.450 crore per year for 9 backward districts of Telangana from 2015-16.

(iii) Bihar: A package of Rs.1.25 lakh crore was approved in 2015 for development of the State. The said amount has to  be  provided  for  implementation  of  infrastructure  projects  in  the  areas  of  Farmer's  Welfare,  Education,  Skill Development,  Health,  Electricity,  Rural  Roads,  Highways,  Railways,  Airports,  Digital  Bihar,  Petroleum  &  Gas, Tourism.  The projects approved under the package would be implemented by respective line Ministry(s) in phased manner over a period of 2 to 5 years depending upon commencement of work.

(iv) Jammu & Kashmir: A Prime Minister's Development Package (PMDP) for Jammu & Kashmir of Rs.80,068 crore was approved  in 2015 for new initiatives/ projects as well as for on-going and existing projects. PMDP includes projects to be implemented by the various Ministries.

(b) Special Package to a State is given to address the special problems for development of the State. The State-specific need  based  special  dispensations  are  made  as  and  when  warranted  through  existing  programmes/  schemes.  The respective State Government identifies the schemes/ projects/ sectors.

(c) & (d) Special packages to different States are considered by the Central Government based on need of the different States. Further, as per the recommendation of the Fourteenth Finance Commission, share of States in the proceeds of the Union tax revenues have been increased from 32% earlier to 42% for the period 2015-20. This would provide more untied resources to the States. The objective has been to fill the resource gap of each State to the extent possible through tax devolution. Also, post-devolution revenue deficit grants have been provided to States where devolution alone could not cover the assessed gap.

---------