In keeping with its commitments to support the development of backward areas of Telangana, the Central Government has provided a further “Special Assistance” of ₹ 450 crore to the state for 2016-17. Andhra Pradesh Reorganisation Act, 2014 entrusts the Central Government to support the programmes for the development of backward areas in the successor States, including expansion of physical and social infrastructure. The Central Government had accordingly released ₹ 450 crore during 2015-16 for the development of 9 backward districts of Telangana. The backward districts which are being supported with this development fund are Adilabad, Nizamabad, Karimnagar, Warangal, Medak, Mahbubnagar, Rangareddy, Nalgoda and Khammam. Cumulatively, the Central Government has so far released ₹ 900 crore to the State for this purpose.

These additional resources from the Central Government would enable the State to devise and implement schemes best suited for mitigation of backwardness and alleviation of poverty. The developmental activities would improve the physical and social infrastructure bringing these districts at par with the more developed districts of the state.

Special assistance under the reorganisation act enables targeted development of backward districts through central funding and state schemes. Central government provision of additional special assistance to the State of Telangana pursuant to reorganisation statute provisions supports targeted development of nine designated backward districts by funding expansion of physical and social infrastructure and enabling state-devised schemes to mitigate regional backwardness and alleviate poverty, supplementing a prior allocation to create cumulative central support for this purpose.