State Reorganisation - Union's Commitment - Status Report
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<strong>Status</strong> <strong>Report</strong> - Union’s <strong>Commitment</strong> to Andhra Pradesh<br />
3. Special Assistance in lieu of 90% Union Funding<br />
for Centrally Sponsored Schemes<br />
<strong>Commitment</strong>s of Government of India:<br />
Andhra Pradesh <strong>Reorganisation</strong> Act, 2014<br />
“Section 46 (2) Notwithstanding anything in sub-section (1), the Central<br />
Government may, having regard to the resources available to the<br />
Successor <strong>State</strong> of Andhra Pradesh, make appropriate grants and also<br />
ensure that adequate benefits and incentives in the form of special<br />
development package are given to the backward areas of that <strong>State</strong>.”<br />
“(3) The Central Government shall, while considering the special<br />
development package for the Successor <strong>State</strong> of Andhra Pradesh, provide<br />
adequate incentives, in particular for Rayalaseema and north coastal<br />
regions of that <strong>State</strong>.”<br />
“Section 94(1) The Central Government shall take appropriate fiscal<br />
measures, including offer of tax incentives, to the Successor <strong>State</strong>s, to<br />
promote industrialisation and economic growth in both the <strong>State</strong>s.”<br />
“(2) The Central Government shall support the programmes for the<br />
development of backward areas in the Successor <strong>State</strong>s, including<br />
expansion of physical and social infrastructure.”<br />
Prime Minister’s <strong>State</strong>ment - dated 20 February 2014<br />
“First, for purposes of Central assistance, Special Category <strong>Status</strong> will be<br />
extended to the Successor <strong>State</strong> of Andhra Pradesh comprising 13 districts,<br />
including the four districts of Rayalaseema and the three districts of north<br />
coastal Andhra for a period of five years. This will put the state’s finances<br />
on a firmer footing.”<br />
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