Central Government has Decided to Provide Further ‘Special Assistance’ of ₹ 1000 crore to State of Andhra Pradesh During the Current Financial Year 2015-16 Including ₹ 350 crore (@Rs. 50 crore per District) for the Development of 7 Backward Districts Covering Rayalaseema & North Coastal Region, ₹ 350 crore for New Capital of the State and ₹ 300 crore for Polavaram Irrigation Project; a Tax Incentive has also been Provided in Finance Act, 2015; Earlier, ₹ 4403 crore was Released to State of Andhra Pradesh During 2014-2015

The Central Government has decided to continue to support the programmes for the development of backward districts of Andhra Pradesh and provide assistance for creation of New Capital of Andhra Pradesh including the Raj Bhawan, High Court, Government Secretariat, Legislative Assembly, Legislative Council, and such other essential infrastructure. Accordingly, the Central Government has announced a further ‘Special Assistance’ of ₹ 1000 crore during the current Financial Year 2015-16. The Central Government will provide special assistance of ₹ 350 crore (@Rs. 50 crore per district) for the development of 7 backward districts covering Rayalaseema & North Coastal region, ₹ 350 crore for new capital of the state and ₹ 300 crore for Polavaram Irrigation Project. 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 with effective from 2^nd June, 2014. Having regard to the resource availability, the Central Government 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.

Accordingly, an amount of ₹ 4403 crore was released to the successor State of Andhra Pradesh during 2014-2015 which included ₹ 350 crore @ ₹ 50 crore per district for the development of 7 backward districts covering Rayalaseema & North Coastal region, ₹ 2303 core for bridging resource gap, ₹ 1500 crore for construction of Raj Bhavan & for creating infrastructure facilities in the new capital of the State and ₹ 250 crore for Polavaram irrigation project.

Special assistance to Andhra Pradesh continues as funding allocated for backward districts, new capital infrastructure and major irrigation project. Central Government announced a further Special Assistance allocation for Andhra Pradesh in 2015-16 comprising targeted funding for development of seven backward districts, infrastructure for the new state capital (including key government buildings), and financing for the Polavaram irrigation project, accompanied by a tax incentive in the Finance Act, 2015, and situated within post reorganisation grant support to address resource gaps.