The Centre today approved financial assistance for bifurcated Andhra Pradesh by way of special dispensation in funding of externally aided projects (EAPs) and also the irrigation component of Polavaram project.
The special assistance approved by the Cabinet will be provided to the state towards repayment of loan and interest for EAPs signed and disbursed during 2015-16 to 2019-20, an official release said.
The Centre will also fund 100 per cent of the irrigation component of the Polavaram project starting from April 1, 2014, it said further.
"This support for capital expenditure by way of repayment of EAP loans would help and assist the newly formed state of Andhra Pradesh to put the State's finances on a firmer footing and promote economic growth," it said.
The Centre while fulfilling its commitments under Andhra Pradesh Reorganisation Act 2014, has already provided 'Special Assistance' of Rs 1,976.50 crore to the state during 2016-17.
Besides, the Ministry of Water Resources has also provided Rs 2,081.54 crore for the Polavaram Irrigation Project during the current financial year.
"Thus the Central Government, after the enactment of the Reorganisation Act, has provided central assistance of Rs 10,461.04 crore to the state of Andhra Pradesh which includes Rs 4,403 crore released during 2014-15, Rs 2,000 crore released during 2015-16 and Rs 4,058.04 crore in 2016-17.
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