Rs 1,000 crore for Andhra Pradesh capital

Rs 1,000 crore is soon to be embarked by the Centre to build the new capital of Andhra Pradesh and for the current financial year, this grant will be included in the supplementary grants. A key source in the Centre disclosed that immediately after AP Chief Minister N. Chandrababu Naidu met Prime Minister Narendra Modi in Delhi, the finance ministry was instructed by the PM to implement provisions in the AP Reorganization Act that authorize the Centre to finance the AP capital.

Already Rs 500 Crore financial grant to AP was announced by the Centre to bridge the revenue deficit in the state Budget along with developmental schemes in seven backward districts of AP for which Rs 350 crore was granted.

Meanwhile, PM held discussions on creating a new railway zone for the residuary state and is said to be announced in the Railway Budget at the end of this month. Creation of new Zone was not recommended by the Expert Committee constituted by the Railway Board as they felt it would not be economically viable as the chances of increasing the passenger traffic in the residuary State were nil.

After examining the feasibility, Board should take an expeditious decision in this regard says AP Reorganization Act. However, green signal was given reportedly for establishing new Railway Zone for AP during the latest meeting Prime Minister had with Railway Minister Suresh Prabhu.