Grant Rs 40,543 cr to fill resource gap: CM to 15th Finance

: Noting that Andhra Pradesh is facing financial imbalances due to bifurcation, Chief Minister Y S Jagan Mohan Reddy on Thursday requested the 15th Finance Commission to recommend a Rs 40,543 crore grant to fill the resource gap as there is a critical need to rebuild the state.

He also wanted the Commission to recommend grant of Special Category Status and also industrial incentives and tax concessions to the state to enable it to attract investments, a release from the Chief Minister's Office said.

Jagan observed that the wounds inflicted by the bifurcation of the state in 2014 continued to trouble AP and growth, cutting across various sectors had been the biggest casualty.

The Chief Minister, at a high-level meeting with the visiting members of the Commission, headed by its Chairman N K Singh, wanted Central loans and National Savings Institute advances amounting to Rs 22,733 crore waived in view of the the state's 'precarious' financial position.

Jagan listed out the various freebies introduced by his government in the name of 'Navaratnalu' and sought a recommendation from the Commission for appropriate financial assistance from the Centre.

The Chief Minister referred to the various projects proposed in the AP Reorganisation Act, 2014, like the development of a major port, establishment of an integrated steel plant in Kadapa district, and wanted the Commission to ensure they were fulfilled.

He wanted a special machinery at the Centre to ensure implementation of the promises made in the Act.

Referring to the multipurpose Polavaram project, the Chief Minister said the Centre was yet to approve the revised estimates for Rs 55,548 crore.

"In the next financial year, the Centre should release at least Rs 16,000 crore for Polavaram works, including rehabilitation and resettlement.

Please recommend that funds be released for the project immediately.Otherwise, there will be trouble in going ahead with the project works, Jagan said.

Finance Commission Secretary Aravind Mehta, Andhra Pradesh Chief Secretary Nilam Sawhney and other top officials attended.