In what is considered as the first major achievement by AP Chief Minister Chandrababu Naidu, Central government has finally come forward to allot funds to the state which is going through a financial crunch. According to news reports from Delhi, Centre has agreed to allot Rs 1000 Crore for AP Capital as an immediate effect and another Rs 1000 Crore for Polavaram Project.
It may be recalled that Centre had earlier asked for AP to send a detailed project report on the funds needed for setting up basic infrastructure facilities for AP Capital and AP government sent a proposal for Rs 1500 Crore. Acting on it, Centre budged to release Rs 1000 Crore with an immediate effect. Given that Rs 100 Crore announced to Polavaram Project in the budget didn't meet the expectations, Centre agreed to dole out another Rs 1000 Crore for the national irrigation project. Union Finance Minister Arun Jaitley informed the same to CM Chandrababu Naidu on Tuesday morning. It is learnt that Union Urban Minister M. Venkaiah Naidu has played pivotal role in this sudden movement from Centre.
Considering positive and healthy reaction from Centre, Chandrababu has sought separate help from Finance Minister to meet the deficit budget of the new state of AP. Jaitley had reportedly told Naidu that the shortage funds would reach AP government by the end of this month and apparently asked Naidu to keep trust on him.