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350 cr Central aid for AP

350 cr Central aid for AP
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The Centre on Wednesday announced a special development package for backward areas, including Rayalaseema and North Coastal regions of Andhra Pradesh. The Union Government, as per the Andhra Pradesh Reorganisation Act, has decided to allocate funds amounting to Rs 350 crore for the seven backward districts of Andhra Pradesh with each district getting Rs 50 crore during 2014-15 for development.

Hyderabad:The Centre on Wednesday announced a special development package for backward areas, including Rayalaseema and North Coastal regions of Andhra Pradesh. The Union Government, as per the Andhra Pradesh Reorganisation Act, has decided to allocate funds amounting to Rs 350 crore for the seven backward districts of Andhra Pradesh with each district getting Rs 50 crore during 2014-15 for development.

  • Special package to develop Rayalaseema and North Coastal regions
  • 7 districts fall in these regions
  • Ministerial panel to suggest measures to bridge resource gap in Budget

Besides, an inter-ministerial joint committee, constituted by the Ministry of Home Affairs, is taking stock of the situation of the Government of Andhra Pradesh to make recommendations to bridge the likely resource gap in the Central Budget 2014-15. However, an ad hoc support of Rs 500 crore for current financial year will be provided to Andhra Pradesh, pending recommend- ations of the Committee.

It may be mentioned that while passing the Andhra Pradesh Reorganisation Act, 2014, the Union Government had committed to provide appropriate fiscal measures, including offer of tax incentives, to the successor States, to promote industrialisation and economic growth in both the States.

Hence the government has decided to give 15 per cent additional depreciation on new plant and machinery in the first year of installation if the manufacturing industries are set up in the backward region. An additional investment allowance of 15per cent would be given to industries set up in the backward regions, as notified, for investments made in new plant and machinery in any of the 5 years for which additional concession would be notified.

Even if the investment is made in the 5th year, the investment allowance would be available. The additional depreciation allowance and investment allowance will be provided without insisting on an investment of above Rs 25 crore. Several other proposals, including proposals of the Department of Industrial Policy and Promotion (DIPP) are under examination.

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