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What Will Key Benefits If AP Gets Special Status?

As part of the Special Package, Centre increased AP's share in Central Aided Projects (CAP) and External Aided Projects (EAP) from existing 60 percent to 90 percent. Funding AP would receive from Centre in the form of CAP & EAP Schemes:

Centre agreed to compensate Rs 7,336 crore for 2015-16 & 2016-17 financial years.

2017-18 Financial Year: Rs 4,139 crore

2018-19 Financial Year: Rs 4,760 crore

2019-2020 Financial Year: Rs 5,475 crore

2020-2021 Financial Year: Rs 6,296 crore

AP Government sought an 15 percent annual increase in funding of CAP and EAP on grounds of Inflation. Instead, Centre agreed to bear the foreign exchange fluctuation on the foreign loans. This measure would guarantee an additional benefit of Rs 2,000 crore. About Rs 42,000 crore EAP Schemes were proposed by AP Government. So far, Centre has issued clearances for projects worth Rs 28,000 crore.

AP Government needn't worry about the repayment of obtained from foreign banks as Centre would bear 90 percent of the loan. CBN is keen to use this provision for majority of the infrastructure projects in Amaravati. Actually, States weren't allowed to raise additional loans from foreign financial institutions after Centre fixed the loan raising limit to 3 percent of Gross State Domestic Product. Announcement of Special Package came as a blessing in disguise for AP as this rule doesn't apply. EAP and CAP schemes doesn't come under FRBM Rules.

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