Lok Sabha Question No. 35 (STARRED), answered on 2019-11-19
Subject: Andhra Pradesh Reorganisation Act, 2014
Ministry: HOME AFFAIRS
Asked by: Srinivas Kesineni, M V V Satyanarayana

## GOVERNMENT OF INDIA MINISTRY OF HOME AFFAIRS

## LOK SABHA STARRED QUESTION NO. *35

TO BE ANSWERED ON THE 19 TH NOVEMBER, 2019/ KARTIKA 28, 1941 (SAKA )

ANDHRA PRADESH REORGANISATION ACT, 2014

*35. SHRI KESINENI SRINIVAS:

SHRI M.V.V. SATYANARAYANA:

Will the Minister of HOME AFFAIRS be pleased to state:

- (a) whether the Government has taken stock of the financial needs of Andhra Pradesh (AP) after its bifurcation in 2014 and if so, the details thereof;
- (b) the details of the funds released for the construction of new capital city at  Amaravati  including  High  Court,  Secretariat  and  funds  released  as resource  gap,  during  the  last  five  years  to  the  State  of  Andhra  Pradesh  in view of the provisions in the AP Reorganisation Act, 2014;
- (c)  the  details  of  the  provisions/  assurances  fulfilled/completed  by  the Government  so  far  including  assurances  for  establishment  of  new  Railway Zone  at  Visakhapatnam,  funds  released  for  setting  up  of  various  premier educational institutions like IIT, IIM, AIIMS, Girijana University, Tribal University and Central University;
- (d) the reasons for non-fulfilment with regard to the construction of new Steel Plant  at  Kadapa,  new  port  Trust  at  Duggirajupatnam  and  other  identified places; and

(e)whether the Government has initiated any action for enhancing Assembly Seats in Andhra Pradesh and Telangana as stated in the AP Reorganisation Act, 2014 and if so, the details thereof?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS (SHRI NITYANAND RAI)

(a) to (e):      A statement is laid on the Table of the House.

## STATEMENT IN REPLY  TO THE  LOK SABHA  STARRED  QUESTION  NO.  *35 FOR 19.11.2019

(a) & (b): Details  of  funds  released  to  the  State  of  Andhra  Pradesh  in pursuance  to  the  provisions  of  the  Andhra  Pradesh  Re-organisation  (APR) Act, 2014 including assistance for capital city during the last five years are given in Annexure. Further an amount of Rs. 19,613 crore has been released as Post Devolution Revenue Deficit Grant during the year 2015-19 as against Rs.22,113  crore  recommended  by  14 th   Finance  Commission  for  the  period 2015-20.

(c): A large number  of provisions of  the  APR  Act,  2014  have  been implemented. The remaining provisions of the APR Act, 2014 are at various stages  of implementation. There  are some issues  between Andhra Pradesh and  Telangana,  which  require  mutual  agreement  between  the  two  States. Efforts  are  made  to  build  consensus  between  the  two  States  to  resolve bilateral issues amicably.

Some of the provisions relating to setting up of infrastructural projects and  educational  institutions  have  long  gestation  period  for  which  a  time period  of  ten  years  has  been  prescribed  in  the  Act.  As  per  information available, an amount of Rs. 1638.34 crore has been released for setting up of various educational institutions in Andhra Pradesh.

## LS.S.Q.NO. 35 FOR 19.11.2019

The  Government  has  also  approved  setting  up  of  a  new  South  Coast Railway (SCoR) Zone with its headquarter in Visakhapatnam.

(d): As  per  APR  Act,  2014,  Steel  Authority  of  India  Limited  (SAIL)  was  to examine  the  feasibility  of  establishing  an  integrated  steel  plant  in  YSR Kadapa District. SAIL conducted the feasibility study and reported that the feasibility of setting up of integrated steel plant of the proposed configuration was prima-facie not found financially viable.

The proposal for setting up of a major port at Duggirajupatnam was not found viable due to strong competition from nearby ports. Hence, the Government of Andhra Pradesh has been requested to suggest alternate site(s) for development of major port in the State.

(e): As per Article 170(3) of the Constitution, the total  number of seats in the  Legislative  Assembly  of  each  State  shall  not  be  re-adjusted  until  the relevant  figures  for  the  first  census  taken  after  the  year  2026  have  been published.

*******

## Releases made to the Successor State of Andhra Pradesh post bifurcation are given below:

(Rs. in crore)

| Provisions of APRA, 2014                                                                 | Items identified for providing 'Special Assistance'                                                  | Releases   | Releases   | Releases   | Releases   | Releases   | Total upto FY 2018-19   |
|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------|------------|------------|------------|------------|-------------------------|
| Provisions of APRA, 2014                                                                 | Items identified for providing 'Special Assistance'                                                  | 2014-15    | 2015-16    | 2016-17    | 2017-18    | 2018-19    | Total upto FY 2018-19   |
| Section 46(2)                                                                            | Resource gap                                                                                         | 2303.00    | 500.00     | 1176.50    | -          | -          | 3979.50                 |
| Section 46(2) & (3) and 94 (2): special for backward areas.                              | Development Grant for 7 backward districts of the State covering Rayalaseema and North Costal Region | 350.00     | 350.00     | 350.00     | -          | -          | 1050.00                 |
| Section 6 & 94 (3 & 4): Central support for creation of new capital city                 | Assistance for Capital City for Development of essential infrastructure etc.                         | 1500.00*   | 550.00     | 450.00     | -          | -          | 2500.00                 |
| Section 90(1) Polavaram Irrigation Project is hereby declared to be a National Project** | Polavaram National Project on Irrigation                                                             | 250.00#    | 600.00^    | 2514.70 #  | 2000#      | 1400#      | 6764.70+                |
| Sub Total                                                                                | Sub Total                                                                                            | 4403.00    | 2000.00    | 4491.20    | 2000.00    | 1400       | 14294.20                |
| Special Assistance Measure                                                               |                                                                                                      |            |            |            |            | 15.81 $    | 15.81                   |
| Grand Total                                                                              | Grand Total                                                                                          | 4403.00    | 2000.00    | 4491.20    | 2000.00    | 1415.81    | 14310.01                |

$: Repayment of interest for the Externally Aided Projects (EAPs) signed and disbursed from 2015-16 to 2017-18 by the State.

#: Provided by Department of Water Resources, River Development and Ganga Rejuvenation (DoWR,RD&GR).

^: Includes grant of Rs. 200 crore released by Department of Expenditure.

**: Funding of 100% of the remaining cost of irrigation component only of the project for the period starting from 01.04.2014, to the extent cost of the irrigation component on that day would be provided.

*: including Rs.1000 crore released by Ministry of Urban Development.

+: DoWR,RD&GR has been allowed on 08.11.2019 to fund the Polavaram Project for an additional amount of Rs. 1850 crore from LTIF with NABARD in FY 2018-19 for the time being as an interim measure pending finalization/audit of Expenditure figures by competent authority.

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