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NEW DELHI FEBRUARY 4:

The Centre on Wednesday provided a Special Development Package for the lesser developed
areas of Andhra Pradesh (AP).
In addition, it will also provide appropriate fiscal measures such as tax incentives to promote
industrialisation and economic growth in both AP and Telangana.
In a statement, the Finance Ministry said the Centre is committed to support Andhra Pradesh,
providing a special development package to backward areas and the Rayalaseema and North
coastal regions of the State. It has now been decided that funds amounting to 350 crore
(50 crore per District) in seven Backward Districts of Andhra Pradesh may be provided to
Government of Andhra Pradesh during 2014-15 for its development activities, it said.
An inter-ministerial joint committee constituted by the Home Affairs Ministry is also taking
stock of the situation in the state and will recommend measures to bridge the resource gap in
the upcoming Budget. Meanwhile, an ad-hoc support of 500 crore for the current financial
year will be provided to the State, pending recommendations of the committee, the statement
added.
The Centre has decided to extend fiscal incentives to both Telangana and Andhra Pradesh.
The incentives include an additional depreciation allowance and an investment allowance
without insisting on an investment above 25 crore.
It has decided to extend 15 per cent additional depreciation on new plant and machinery in
the first year of installation for manufacturing industries in the backward regions.
Also an additional allowance of 15 per cent will be given to industries set up in backward
regions for investments made in new plant and machinery in any of the five years for which
the additional concession is notified. Even if the investment is made in the fifth year, the
allowance would be available, the statement added.
(This article was published on February 4, 2015)

Special package for seven A.P. districts


J. S. IFTHEKHAR

Package to cover 7 districts of Seemandhra. Officials feel similar package can also be
considered for Telangana where the social indicators are very poor in districts like
Mahbubnagar, Adilabad, Warangal, Nalgonda and Khammam.
It may be another two weeks for bifurcation of the State, but, plans are already in place for
giving a thrust to the successor state of Andhra Pradesh.
In tune with Prime Minister Manmohan Singhs assurance of a special package to address the
concerns of Seemandhra, authorities have identified seven backward districts of Rayalaseema
and North Coastal Andhra for a special development package. The proposed package is on
the lines of the KBK (Koraput-Bolangir-Kalahandi) special plan in Odisha and the
Bundelkhand plan in Madhya Pradesh and UP.
The districts of Kurnool, Anantapur, Chittoor, Kadapa, Srikakulam, Viskhakaptnam and
Vizianagaram will have focused development in agriculture, watershed, irrigation, drought
mitigation, health, nutrition, education and industrial sectors.
The project envisages accelerated development of the region in two plan periods.

The basic framework is ready. The project cost and other details will be finalised once the
new government is in place, officials in the planning department said.
Officials feel similar package can also be considered for Telangana where the social
indicators are very poor in districts like Mahbubnagar, Adilabad, Warangal, Nalgonda and
Khammam. Though the Act doesnt mention about a special package for Telangana but the
backwardness of these areas deserved special consideration, it is said.
There are some 18 indicators for backwardness as per the Raghuram Rajan committee. They
pertain to income, education, health, household amenities, poverty ratio, female literacy rate,
percentage of SC, ST population, urbanisation, financial inclusion and physical connectivity.
As per the Raghuram panel methodology, Odisha ranks among the most backward state in the
country followed by Bihar.
A cell is already set up in the Planning Commission to collect data on key parameters for
identifying the backward areas.
Another such cell is being set up in HRD ministry for higher education institutions. Tuhin K.
Pandey, joint secretary, Planning Commission, is coordinating with officials here, it is said.
The Rs. 5,527-crore KBK package in Odhisha covers eight districts in the sectors of drought
proofing, livelihood, connectivity, health and education.
The Bundelkhand plan costing Rs. 7,266 crore focuses on drought mitigation strategies and
covers seven districts in UP and six in Madhya Pradesh.
The best thing about special package is that the state gets 90 per cent grant and 10 per cent
loan as against 30 per cent grant and 70 per cent loan in the general category.
The incentives also include promotion of new industries and substantial expansion of the
existing units.
Besides 100 per cent excise duty exemption for 10 years, 15 per cent investment subsidy for
plant and machinery and 100 per cent income tax exemption to all new units for initial period
of five years.
Soon after the new chief minister of Seemandhra is in office after the Appointed Day, the
special package plan would be presented to him and then the matter would be placed before
the National Development Council for approval, it is said.

Press Information Bureau


Government of India
Ministry of Finance
04-February-2015 19:58 IST
Special Development Package to Andhra Pradesh and Tax Incentives to Successor
States
In terms of Section 46 (2) and Section 46 (3) of the Andhra Pradesh Reorganisation Act,
2014, the Union Government is committed to support Andhra Pradesh, providing Special
development package to backward areas and Rayalaseema and North coastal region of the
State. It has now been decided that funds amounting to Rs.350 crore (@ Rs.50 crore per
District) in seven Backward Districts of Andhra Pradesh may be provided to Government of
Andhra Pradesh during 2014-15 for its development activities.
Besides, an inter-ministerial Joint Committee, constituted by Ministry of Home Affairs, is
also taking stock of the situation of Government of Andhra Pradesh to make
recommendations to bridge the likely resource gap in the Central Budget 2014-15. However,
an adhoc support of Rs. 500 crore for current financial year will be provided to Andhra
Pradesh, pending recommendations of the Committee
.
In terms of Section 94(1) of the Andhra Pradesh Reorganisation Act, 2014, the Union
Government has to provide appropriate fiscal measures, including offer of tax incentives, to
the successor States, to promote industrialisation and economic growth in both the States. In
this regard following decisions have been taken
:
i. The manufacturing industries set up in the backward region, as notified, would be given
15% additional depreciation on new plant and machinery in the first year of installation
.
ii. An additional investment allowance of 15% would be given to industries set up in the
backward regions, as notified, for investments made in new plant and machinery in any of the
5 years for which additional concession would be notified. Even if the investment is made in
the 5th year, the investment allowance would be available
.
iii. The additional depreciation allowance, and investment allowance will be provided without
insisting on an investment of above Rs. 25 crore
.
Several other proposals including proposals of Department of Industrial Policy & Promotion
(DIPP) are under examination.
*************

Other States Blocking Spl Status to AP


By Express News Service
Published: 06th February 2015 06:00 AM
Last Updated: 06th February 2015 06:00 AM
VIJAYAWADA: Civil aviation minister and senior TDP leader P Ashok Gajapathi Raju has
said observed that former prime minister Manmohan Singh had announced special category
status to the state though such a provision was not made in the AP Reorganisation Act.
At an interactive meeting with mediapersons at Vijayawada Airport on Thursday, he said,
The elderly man had made several assurances and the special status was one of them. All
MPs from the state, including myself, are asking the Union government for it but many states
are opposing it, he said.
The TDP leader said that post bifurcation, when special status was demanded for the state,
Tamil Nadu chief minister Jayalalithaa had opposed it, fearing all industries in Tamil Nadu
would relocate to Andhra Pradesh whose chief minister N Chandrababu Naidu is a pro-active
leader.
The chief ministers of Jharkhand and Telangana are not in favour of special status to AP. O
Panneerselvam, the new CM of Tamil Nadu, will continue the policy of his predecessor
Jayalalithaa for obvious reasons, he said. The minister blamed the previous UPA regime at
the Centre for the present financial crisis in Andhra Pradesh. He said those who had made
promises are no longer there. Now, the present government has to translate those
commitments into action. It is studying their economic implications, he said.

Pharma Industry awaits special status to AP from Centre to get a boost for
growth
Our
Bureau,
Wednesday, October 29, 2014, 08:00 Hrs [IST]

Hyderabad

The Pharma industry in the newly carved Andhra Pradesh is awaiting Special status category
state from central government so as to get a new boost for its growth in the state.

At present, the pharma sector in Andhra Pradesh is facing a lot of problems such as
availability of quality power, lack of well developed affluent discharge facilities and head
blocks from regulatory and environmental authorities for new clearance and expansions in the
state. Moreover with the recent devastating Hudhud cyclone things have turned all the more
worst for the industry. The cyclone alone had brought a loss of more than Rs.200 crore for the
industry.
In fact after bifurcation, the pharma sector in Andhra Pradesh has become a considerably
reduced sector with the major chunk of the industrys base has remained in Telangana.
Hyderabad and the surrounding districts of Ranga Reddy, Mahabubnagar, Medak and
Nalgonda hold more than 500 major pharma companies in addition to thousands of smaller
SMEs, while in Andhra Pradesh, altogether there are only about 150 pharma companies
concentrated in coastal districts of Vijayanagaram, Srikakulam, Vizag and Nellore. Among all
Vizag has the biggest cluster holding more than 50 per cent pharma companies
.
Of late, pharma investors are looking to invest in the unexplored districts of Chittoor,
Ananathapur, Vijayawada and Guntoor districts. According to industry sources, majority of
the investors are looking for the Centers decision to declare Andhra Pradesh as a special
category state and if this happens hundreds and thousands of new investors will flood in AP.
Already, the industry in Telangana is facing severe power shortage and is incurring huge
losses. The TS government has also officially declared two day power holiday for the
industry, because of this situation most of them are looking to shift their base to alternative
destinations. Andhra Pradesh could become the best option for many, but they are all awaiting
for a special status category so that industry can benefit in terms of subsidies, tax exemptions
and easy land availability in addition to availing other infrastructure facilities at affordable
prices from the government, said, Sudarshan Reddy, chariman of DSR labs.

Recently, the DSR Labs has invested about Rs.15 crore for its formulations unit in Chittoor
district at Tirupathi. The company is expecting full-fledged production from January next
year, informed the chairman.
The pharma industry in Telangana is already at a saturation level, while the sector in Andhra
Pradesh has a huge void. To fill this void, the Chief Minister of AP, Nara Chandra Babu is
leaving no stone unturned to attracting new investments in the state. As the AP government
has already declared City of Vijayawada as future capital of the newly carved AP, many
leading investors are buying land nearby the city and in the next 5-10 years, the pharma
sector will be able to give a tough competition to Telangana state, revealed sources in the
industries department of AP.
Dr.JP unveils formula for resolving AP crisis

Lok Satta Party national President and Member of the Andhra Pradesh Legislative Assembly
Dr. Jayaprakash Narayan today unveiled a comprehensive solution that addresses the
concerns of all the three regions in the State.
In his address to the Assembly on the Andhra Pradesh Reorganization Bill and interaction
with media personnel and party supporters later, Dr. JP expressed his unequivocal support for
the formation of Telangana.
Dr. JP pointed out that Andhra Pradesh has lost a decade because of bickering over
Telangana. Enough is enough. We should not let others make us fight like cats and dogs.
Years of strife and stress have cost the State dearly. We cannot have another decade of
paralysis and decline.
Dr. JP reiterated that the manner in which the Union Government sought to divide Andhra
Pradesh is dictatorial and unilateral and that almost all parties have been guilty of exploiting
the political crisis for narrow political gains, unmindful of peoples interests. Now, that
Telangana formation is round the corner, it is necessary for all political parties to focus their
energies on ensuring justice to all the three regions in the State.
Dr. JPs comprehensive solution calls for addressing revenue deficits of Seemandhra and firm
and time-bound commitments for Telangana development.
Dr. JPs formula for Seemandhra development calls for making commitments to
infrastructure mandatory, firm and charged to the Government of India, setting up of
educational institutes (IIT/IIM/AIMS/IIIT/Tribal University) within a stipulated time frame
and guaranteed commitment to Polavaram irrrigation project and Ramayapatnam port.
The formula seeks Special Category Status to Rayalaseema region which will be badly
impacted in terms of revenue by the States bifurcation. While Hyderabad city had Rs.13,000
crore revenue surplus Rayalaseema had Rs.7,000 crore deficit (4 districts, 15 million
population)during 2012-13. The proposed pay revision this year would take Rayalaseemas
deficit to Rs.9,000 crore. The region will not have enough revenue to pay even staff salaries.

The Special Category status will turn Rayalaseema into a tax haven in that there will be
Central excise and corporate income tax exemptions. Although there are 11 Special Category
States in India, there is none in the peninsular India. Being on the Chennai-Bangalore
corridor, the resource-poor Rayalaseema can be the new Dubai attracting investments from
all southern and western States. All Telugu-speaking people and the entire peninsular India
will gain.
But sadly no political party is remotely worried or concerned about these issues. As Lok
Satta rightly believes, this is not the time for playing out political games for petty
considerations. The only solution out of this mess created by the UPA at the Centre and all
other political parties in the State who are only interested in their political gains, is significant
focus towards development of both Seemandhra, including Rayalaseema, and Telangana. A
big part of this can get solved by converting Rayalaseema from a deficit- ridden region into a
land of opportunity, said Dr. JP.
Dr. JPs formula calls for firm and time-bound Central commitments for Telangana
development.
Dr. JP said that the formula he has outlined will create a win-win situation for all the three
regions of the State and facilitate their socio-economic growth.
Dr. JP said that the AP Bifurcation Bill carries provisions which are patently unconstitutional.
Its provisions for residuary Andhra Pradesh are vague and non-binding. He would move
amendments when the Assembly takes up clause-by-clause discussion.
Dr. JP underlined that a change in the boundaries of States should not undermine economic
growth or adversely affect social intercourse among people of different regions. States may
be many, but Telugu people will remain as one
A change in the States boundaries or the capital will not improve peoples lives unless core
problems like the very nature of politics, centralization of power, corruption and poor service
delivery are addressed.
The Lok Satta Party, he said, is ready to shoulder the responsibility of ushering in change and
unveiling a new dawn in peoples lives if only they devote their time and resources for
strengthening the party to face the upcoming elections.

Ramachandraiah for more focus on Rayalaseema

He warns of another separatist movement if the CM goes ahead with his


biased approach. The Congress leader demanded a CBI or CID inquiry
into the irregularities and corruption in the A.P. Mineral Development
Corporation, rather than penalise pulverising units and deprive its workers
of their livelihood.
Hit hard by scanty rainfall and droughts, not to mention neglect by successive governments,
the backward Rayalaseema is craving for greater attention from the government, Opposition
Leader in the A.P. Legislative Council C. Ramachandraiah said on Friday.
Chief Minister N. Chandrababu Naidus bias towards the region, owing to a sense of
resentment that the TDP was not patronised in the elections, could lead to another separatist
movement, he warned.
Disputing the governments claim that the State had no sick industries, Mr. Ramachandraiah
said the Cuddapah Cooperative Sugars Ltd. at Chennur, Proddatur Milk Foods factory at
Proddatur and Allwyn unit at Nandalur had turned sick and were closed down decades ago.
Of late, as many as 174 pulverising mills in Mangampet that provided direct employment to
20,000 people and indirect employment to 12,000 more were also closed down. The mills
had deposited Rs. 165 crore for material supply, but the government had stopped raw material
supply to pulversising units, threatening their existence, he alleged.
Stating that the government was calling global tenders for excavation of barytes, he suggested
supply of raw material to pulverising units at the existing rates and collection of revised rates
after calling global tenders.
The government is not taking initiative to set up a steel plant in Kadapa district, though SAIL
officials, following their visit to the district, had stated that the land on which an integrated
steel plant was taken up by Bramhani Steels Ltd. was ideal for the project, he said. The

DRDO unit that was proposed in Kadapa is being shifted to Chittoor, while the AIIMS, High
Court, electronic and IT industries are mooted in coastal Andhra.
The Congress leader demanded a CBI or CID inquiry into the irregularities and corruption in
the A.P. Mineral Development Corporation, rather than penalise pulverising units and deprive
its workers of their livelihood. The government should complete the pending works between
Pothireddipadu head regulator and Gandikota reservoir in Kadapa district, which required an
investment of more than Rs. 200 crore and expedite works on Handri Neeva Sujala Sravanthi
to boost irrigation in Anantapur district.
Mr. Chandrababu Naidu should press the Centre to grant special status and funds to Andhra
Pradesh, he said and added that Guntakal should be made a railway zone and Kadapa airport
works should be completed. Urdu university was announced in Kadapa, but a rift was created
between Kadapla and Kurnool districts, he alleged. He also wanted clearance to the Somasila
backwater scheme to cater to drinking water needs of Kadapa town.

Will AP Ever Get Special Status?


At the time of bifurcation, it was widely reported that Andhra Pradesh would be accorded
special status given the circumstances under which it was formed. Venkaiah Naidu promised
that all would be well and that Centre would provide special status to residual Andhra
Pradesh. Later, it was reported that Telangana would also be accorded special status alongside
Andhra Pradesh. Though its been quite a few months since such stories emerged, AP hasnt
been accorded special status. In fact, for now, the Centre seems to be in no mood to oblige
Andhra Pradesh by providing special status to it. Recently, Arun Jaitley presented the union
budget, but no special provisions were made for the state. However, it was later announced
that the Planning Commission was considering the matter. Closer home, AP government has
shown promising figures which indicate that the state is well off financially. In fact, it has
been seen that the government did not face any major hurdles while paying salaries to
employees in the past two months. On the other hand, AP finance minister Yanamala
Ramakrishnudu has announced that he will be presenting the budget soon. Lets consider a
scenario where he will present a budget where he will propose investments up to Rs 1,00,000
crore. But if he shows such a large amount, it will entail there will be equally huge deficit.
Since deficit budget is no good budget, it would be better if Yanamala clarifies how he
intends to tackle the deficit. Also, deficit budget means more taxes and Yanamala surely
would not want to levy more taxes at this point in time. So, we come back to the question of
how will finance minister present Rs 1,00,000 crore budget? One would assume that the state
is generating such revenue. But if Andhra Pradesh has the capacity to generate an humungous

amount to the tune of Rs 1,80,000 crore, then the Planning Commission and Centre would
think twice to accord special status to Andhra Pradesh. In fact, they have a genuine problem
as much smaller states than Andhra Pradesh would demand for special status if AP is
accorded one. Keeping all these factors in mind, the Centre is said to be contemplating
announcing special packages for Rayalaseema and Uttarandhra instead of according special
status to the state of Andhra Pradesh. If that happens, then poor Venkaiah Naidu is bound to
lose face. - See more at: http://www.greatandhra.com/politics/gossip/will-ap-ever-get-specialstatus-58716.html#sthash.dWBNKTEK.dpuf

Forget Spl Status, Centre Gives AP Spl Peanut Package


HYDERABAD: Almost eight months after division of united Andhra Pradesh, the Central
government on Wednesday announced a special package to the residuary State of Andhra
Pradesh and tax incentives for it as well as Telangana State.
However, much to the chagrin of the Andhra Pradesh government, the package is far short of
special category status and other boons promised by the Centre and offered in the AP
Reorganisation Act-2014. The Union Finance Ministry, in a statement late in the evening,
said, Union Finance Minister announced Special Development Package to Andhra Pradesh
and tax incentives to successor States. Tax incentives will encourage industrialists to come
and invest in Andhra Pradesh and Telangana State.
It reiterated that in respect of Section 46(2) and Section 46(3) of the AP Reorganisation Act,
the Union government is committed to support Andhra Pradesh by providing special
development package to backward areas and Rayalaseema and North coastal region of the
State.
As per the package, `350 crore (`50 crore for each district) may be provided for the seven
backward districts in Andhra Pradesh (Rayalaseema and North Andhra) during 2014-15 for
development activities.
Besides this, an inter-ministerial joint committee, constituted by the Ministry of Home
Affairs, is also taking stock of the situation to make recommendations to bridge the resource
gap in Andhra Pradesh. However, temporary support of `500 crore for the current financial
year will be provided to the State, pending recommendations.

PM Manmohan Singh announces special package for Seemandhra


India Today Online Nre Delhi, February 20, 2014 | UPDATED 20:44 IST

Prime Minister Manmohan Singh on Thursday said special status will be


given for five years to Seemandhra region - the residual state of Andhra
Pradesh following creation of a separate Telangana.
Speaking in the Rajya Sabha on the bill to create a separate Telangana
state, the prime minister said that the bill already stipulates that the
central government shall take appropriate fiscal measures, including offer
of tax incentives to the successor states in order to promote
industrialization and economic growth in both the states."These incentives
will be along the lines extended to some other states."
"For purposes of central assistance, Special Category Status will be
extended to the successor state of Andhra Pradesh comprising 13
districts, including the four districts of Rayalaseema and the three districts
of north coastal Andhra for a period of five years. This will put the state's
finances on a firmer footing," the prime minister said.

The prime minister read his statement in house amid din and slogan
shouting by members opposing the bill to create the new state.

Some members of Congress had made a protective ring around the prime
minister as he spoke to shield him from the protesters.
Read full text of Manmohan Singh's speech

"Mr. Chairman Sir


:
I have listened very carefully to the views expressed by the Leader of
Opposition and all the other members who have spoken, especially those
from Andhra Pradesh. The Home Minister has already mentioned the
specific steps our Government will take to address the concerns of all
regions of the state, particularly of Seemandhra. I would like to make a
few further announcements in this regard.
First, for purposes of Central assistance, Special Category Status will be
extended to the successor state of Andhra Pradesh comprising 13
districts, including the four districts of Rayalaseema and the three districts
of north coastal Andhra for a period of five years. This will put the state's
finances on a firmer footing.
Second, the Bill already stipulates that the Central Government shall take
appropriate fiscal measures, including offer of tax incentives to the
successor states in order to promote industrialization and economic
growth in both the states. These incentives will be along the lines
extended to some other states.
Third, the Bill already provides for a special development package for the
backward regions of the successor state of Andhra Pradesh, in particular
for the districts of Rayalaseema and North Coastal Andhra Pradesh. This
development package will be on the lines of the K-B-K (Koraput-BolangirKalahandi) Special Plan in Odisha and the Bundelkhand special package in
Madhya Pradesh and Uttar Pradesh.
Fourth, I would like to reassure Honourable Members that if any further
amendments are needed to facilitate smooth and full Rehabilitation &
Resettlement(R&R) for the Polavaram project, they will be given effect to
at the earliest. Our government will execute the Polavaram project--let
there be no doubt about it.
Fifth, the appointed day for the formation of the new State will be so fixed
in relation to the notified date so as to enable preparatory work relating to
personnel, finance and distribution of assets and liabilities to be
completed satisfactorily
.
Sixth, the resource gap that may arise in the successor state of Andhra
Pradesh in the very first year, especially during the period between the
appointed day and the acceptance of the 14th Finance Commission
recommendations by the Government of India, will be compensated in the
Regular Union Budget for 2014-15.

Sir, I hope these additional announcements will demonstrate our steadfast


commitment to not just the creation of Telangana but also to the
continued prosperity and welfare of Seemandhra."

Read
more
at: http://indiatoday.intoday.in/story/pm-manmohan-singhannounces-special-package-for-seemandhra/1/344650.html

Sarpanches up in arms against Transco


They stage dharna protesting against disconnection of power supply
Sarpanches from various gram panchayats in Krishna District staged a dharna in front of office of
the Superintendent Engineer of AP Transco here on Monday, protesting against disconnection of
power supply by AP Trancso in major and minor panchayats, despite GO 80 being in force that
refrains the transmission company from disconnecting power for non-payment of power dues.
Leading the dharna, former MLC Y.V.B. Rajendra Prasad said as per GO 80 issued on January 17,
2009, AP Transco has no right to cut the power in the panchayats for non-payment of electricity
bills by the individual panchayats, as it was being paid centrally by the department of Panchayat
Raj and Rural Employment at Hyderabad. Gram panchayats come under the AP Panchayat Raj
Act of 1994, where in the government is obliged to provide the basic amenities such a
streetlighting, sanitation and water supply. And in such circumstances the disconnection of
power without notice was illegal. And what is happening between the departments is not of our
concern, the former MLC said.
Mr. Rajendra Prasad told The Hindu that owing to non-availability of power for 15 days,
accidents and incidents of snake bites increased in the panchayats. We demand immediate
restoration of power and cases that were put up against a few Sarpanches by AP Transco be
immediately withdrawn, he said.

Govt to meet power bills of major panchayats


Published: Thursday, March 27, 2008, 22:02 [IST]

Hyderabad, Mar 27 (UNI) Andhra Pradesh Chief Minister Y S Rajasekhara Reddy


today agreed to meet the power bills towards street lights of all major panchayats also
as was being done in the case of minor panchayats in the State.
This would be implemented in about 15 to 20 days so as to follow certain
administrative procedures. It was also decided to pay the pending power bills of the
major Gram Panchayats amounting to Rs 3.50 crore.
He was reviewing issues relating to major Gram Panchayats in the State with Minister
for Panchayat Raj J C Diwakar Reddy.
The decision was taken in the backdrop of the representation made in the recent past
by Sarpanches of major Gram Panchayats to the Chief Minister stating that a lot of
amount was being spent on providing drinking water and street lights from their
meagre resources.
They requested the government to meet the electricity bills of major Panchayats also
on par with the minor panchayats.
UNI BR GM ADB2140

Other articles published on Mar 27, 2008

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