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Centre had wanted AP to pitch in

Centre had wanted AP to pitch in
Andhra Pradesh government logo

HYDERABAD: The AP government has requested the Central government to sanction Rs 10,000 crore more for the construction of the capital city Amaravati.
But the Centre, in a reply, said that for the construction of government buildings such as Secretariat, High Court, Assembly and other buildings, the state government would require about `2,500 crore.

The Centre had reiterated that the Union Urban Development Department had calculated the fund requirement for the construction of government buildings in the new capital city of Amaravati. Accordingly the Centre had released Rs 1,500 crore to the state government. Apart from this, the Centre has released Rs 1,000 crore to Guntur and Vijayawada Municipal Corporations (Rs 500 crore) each for infrastructure development in the Amaravati area.

The Centre has said that if the state government sent utilisation certificates for Rs 1,500 crore, the balance Rs 1,000 crore would be released. To get the balance amount, the AP government has sent the expenditure sheet on the construction of the temporary Secretariat building at Velagapudi. But the Central government categorically said that it would give funds only for the construction of government buildings in Amaravati and the expenditure for the construction of temporary Secretariat has to be borne by the state government.

After the recent meeting between the Prime Minister Mr Narendra Modi and the AP CM, Mr Naidu, the Prime Minister’s Office (PMO) directed NITI Aayog to send a letter to the AP government to send status reports on implementation of AP Reorganisation Act. Accordingly AP government is sending the status reports, department wise.

In the report on capital city construction, AP government asked the Centre to sanction Rs 10,000 cr in addition to the already sanctioned Rs 2500 cr. The State Government has attached the letter written by CM Naidu in the past to the report requesting Rs 30,000 cr for the construction of Amaravati capital city.