Centre okays Rs.500 Cr grant , Rs.350 Cr development fund to AP

Hyderabad, Feb 5, 2015: Instead of declaring special status for Andhra Pradesh as per the announcement of the then Prime Minister Manmohan Singh in the Parliament when the AP Bifurcation Bill was adopted, the Modi Government on Wednesday announced an ad hoc grant of Rs.500 Cr to AP to meet the big financial gap it has been facing after the bifurcation. The Centre had also announced a financial package of Rs.350 Cr towards development of the seven backward districts of North coastal Andhra and Rayalaseema in AP. It has announced constitution of an inter-ministerial joint committee to asses the resources of the state and make proper recommendations on resource mobilizations. The Finance Ministry , which made the announcement, said tax concessions would also be granted to both AP and Telangana to attract new investments.