The Centre has already announced Rs 500 crore financial grant to AP
Andhra Pradesh Chief Minister N. Chandrababu Naidu
Hyderabad: The Centre is soon going to earmark Rs 1,000 crore to build the new capital of Andhra Pradesh. This grant will be included in the supplementary grants for the current financial year. A key source in the Centre disclosed this to this newspaper on Saturday. He said that immediately after AP Chief Minister N. Chandrababu Naidu met Prime Minister Narendra Modi recently in Delhi, the PM instructed the finance ministry to implement provisions in the AP Reorganisation Act that mandate the Centre to finance the AP capital.
“Whatever provisions are there in the Act that mandates the Centre to finance the residuary state of AP, will be made in the current Budget itself,” said the source. The Centre has already announced Rs 500 crore financial grant to AP to bridge the revenue deficit in the state Budget and Rs 350 crore for developmental schemes in seven backward districts of AP.
“This is not the end of special grants from the Centre, but we had to make few provisions and create separate heads so that regular flow of funds is ensured even in coming years,” the source added. Meanwhile, the PM also discussed the issue of creating a new railway zone for the residuary state and according to sources it will be announced in the Railway Budget at the end of this month, sources said. The Expert Committee constituted by the Railway Board did not recommend creation of new Zone as they felt it would not be economically viable due to no chances of increasing the passenger or fright traffic in the residuary State.
AP Reorganisation Act says after examining the feasibility Board should take an expeditious decision in this regard. However during the latest meeting Prime Minister had with Railway Minister Suresh Prabhu reportedly gave green signal for establishing new Railway Zone for AP.
( Source : dc correspondent )
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