The waiting game for the promised substantial assistance continues for Andhra Pradesh even as June 2 marks the completion of the second year after bifurcation.

The release of funds so far under the provisions of the AP State Reorganisation Act either for resource gap compensation, backward districts development or capital city construction had only been a trickle in relation to the proposals submitted by the State government.

However Dr.P.V. Ramesh, Development Commissioner and an ex officio Principal Secretary to Chief Minister for the subjects and issues pertaining to State Reorganisation Act and pending with the Union Government, said now that the NITI Ayog submitted its report to the Centre on the quantum of special assistance , clarity would emerge soon.

However, sources said the State had no clue what the NITI Ayog had recommended to the Centre as it did not share a copy of it with the State. There was also no in depth discussion between it and the State apart from a general meeting.

Giving a recap on the promises made in the SR Act, Dr. Ramesh said here on Wednesday the Centre in the last two years had released Rs.2,300 crore towards resource gap compensation against Rs.16,078 crore sought by the State and certified by the CAG. Under the Capital City assistance, the State had sought Rs.20,000 for construction of government buildings like Raj Bhavan, Legislature, Secretariat but the Centre released Rs.1,050 crore and another Rs.1,000 crore for upgrading infrastructure in Guntur and Vijayawada.

Package

The State sent a proposal seeking a package on the lines of Bundelkhand, Bolangir, Kalahandi with Rs. 24,300 crore for the seven backward districts — three North Andhra districts and four Rayalaseema districts. The Centre sanctioned Rs.700 crore so far.

While the Act said the Centre would reimburse the expenditure on Polavaram incurred after April 1, 2014, it released Rs.840 crore so far and Rs.1,400 crore was due. Prior to that the State had spent Rs. 6,000 crore and discussions were on with the Centre to bear that amount too as Polavaram was declared national project.

On industrial incentives promised to both Telangana and A.P. in the Act, the Act was not clear on the incentives and the Centre extended 15 per cent additional depreciation and 15 per cent capital allowance.

To a query from the Centre, the State said the incentives would be extended to all the 13 districts. The Central Board of Direct Taxes would have to notify these 13 districts to get the above benefits.

The Centre however sanctioned nine out of 11 institutions under the 13{+t}{+h}Schedule and seven more institutes not included in the Act, the funds for feasibility studies for Vijayawada, Vizag and capital city were under process and Railway zone for Visakhapatnam was under advanced stage of consideration. Steel plant by SAIL and a major port at Dugarajupatnam were the other promises.

Clarity soon as the panel has submitted its report to the Centre