Huge central package coming, says CM Naidu

HYDERABAD: Andhra Pradesh will be granted a financial package in a month’s time for three international airports, 17 central institutions, national highways and power projects, chief minister Chandrababu Naidu said in New Delhi on Thursday.
Naidu said this was conveyed to him during his meeting with Union ministers Arun Jaitley, Rajnath Singh and Uma Bharati.
Naidu was informed that the Centre would announce the package before Prime Minister Narendra Modi’s visit to Andhra Pradesh on October 22 for the foundation stone laying ceremony for the capital city.
Arun Jaitley is said to have informed Naidu that he would finalise the package and submit it to the PM in a fortnight. Niti Ayog vice-chairman Aravind Panagariya, who is giving final touches to the package was out of station and Jaitley informed Naidu that as soon as he returns, the package will be given the final shape.
According to top sources in the government, the package consists of huge financial assistance to three north coastal and four Rayalaseema districts.
Building of three international airports, Tirupati, Vijayawada and Visakhapatnam, developing Amaravati – Kurnool–Anantapur road as a national highway and sanctioning of 17 central government institutions, including tribal, agriculture universities for the state, are all part of the package.
The Centre will also announce release of funds for the development of Dugarajpatnam port as a major port along with Machilipatnam, Vodarevu and Bhavanapadu ports.
The package will bridge the fiscal deficit arising out of the bifurcation of the state, sources said. While the AP Reorganization Act had assured a one-time financial assistance for the year 2014-15, the NDA government was convinced with the argument presented by Naidu that the state requires assistance for five years. The Centre has agreed to spend an amount of Rs 10,000 crore to develop 25 institutes of excellence in Andhra Pradesh of which seven have already started functioning from the current academic year.
The Centre also agreed to reimburse Rs 400 crore spent by the state government for the construction of Polavaram dam and to expedite release of more funds to the national project. Union ministers complimented Naidu for completing the Godavari–Krishna river-linking in record time and assured him full cooperation for the irrigation projects taken up by the AP government.
“We have asked the Centre to lend a helping hand till the state gets the strength to compete with our neighbouring states which are sound financially. We want the Centre’s help for taking up new projects, develop road and waterways. We have also asked financial help as we lost Hyderabad city and need to spend lot of money to construct new capital city,” said Naidu.
During his meeting with Rajnath Singh, Naidu suggested to put in place a dispute resolution mechanism to settle issues between Telangana and Andhra Pradesh. “There are several issues between two states for which we require mediation of the Centre,” added Naidu.