Centre announces Rs 1000-cr special assistance to AP

The Centre has announced a further 'Special Assistance' of Rs 1000 crore to Andhra Pradesh during 2015-16 as per its decision to continue to support the programmes for the development of backward districts of the state.
The funds will also be used to provide assistance for creation of the new capital, including the Raj Bhavan, High Court, Government Secretariat, Legislative Assembly, Legislative Council, and such other essential infrastructure.
This includes special assistance of Rs 350 crore at the rate Rs 50 crore per district for the development of seven backward districts covering Rayalaseema and North Coastal region, Rs 350 crore for the new capital of the state and Rs 300 crore for Polavaram irrigation project, a Central government release said today.

A tax incentive has also been provided in Finance Act, 2015.
The Andhra Pradesh Reorganisation Act, 2014 bifurcated the state, and the state of Telengana came into being, effective from June 2, 2014. Having regard to the resource availability, the Centre is required to make appropriate grants and also provide adequate benefits and incentives in the form of special assistance to the backward areas of states, it said.
Accordingly, an amount of Rs 4,403 crore was earlier released to the successor state of Andhra Pradesh during 2014-2015 which included Rs 350 crore at the rate of Rs 50 crore per district for the development of seven backward districts covering Rayalaseema & North Coastal region, Rs 2,303 core for bridging resource gap, Rs 1500 crore for construction of Raj Bhavan and for creating infrastructure facilities in the new capital and Rs 250 crore for Polavaram irrigation project, it said.