The central NDA government on yeterday announced financial and special development package for Andhra Pradesh .It also includes concessions for the industrial sector for both AP and Telangana.
Centre released total Rs 850 Crs package for AP which include Rs 500 crore as ‘ad hoc support’ to bridge the resource gap for the current financial year as well as Rs 350 crore as special development package for the backward areas in Rayalaseema and north coastal districts.
With reference to AP state officials,the release of funds came prior to Chandrababu Naidu’s visit to Delhi on February 8 where he was expected to rake up the issue of non-release of central grants for AP despite the elapse of six months since the bifurcation of the state. “The release of the funds by the Centre on Wednesday is a welcome step but AP is expecting much more.”
The Rs 350 crore has been released to support to AP in providing a special development package to the backward areas in the Rayalaseema districts of Anantapur, Chittoor, Kadapa and Kurnool in Rayalaseema and three districts of Visakhapatnam, Vizianagaram and Srikakulam in north coastal Andhra will get Rs 50 crore each for development activities for 2014-15.
Centre has to provide tax incentives to the bifurcated states to promote industrialisation and economic growth in both AP and Telangana.