WHITE PAPER ON IMPLEMENTATION OF ANDHRA PRADESH

REORGANISATION ACT, 2014 AND THE CONNECTED ASSURANCES

23 DECEMBER 2018

1. The Andhra Pradesh Reorganisation Act, 2014 (Act 6 of 2014) was notified on
the first of March, 2014. 2nd June 2014 was notified as the Appointed Day, the day
on which the State of Andhra Pradesh was bifurcated into the State of Telangana
and the State of Andhra Pradesh.

2. Government in the white paper “The impact of State Reorganisation” released

on 17.08.2014 had put forth before the 5 crore people of Andhra Pradesh, the
contradictions, commissions, omissions and inadequacies of the Andhra Pradesh
Reorganisation Act, 2014 and tremendous financial, infrastructural, educational and
employment disadvantage Andhra Pradesh was put to.At the end of nearly 4 ½
years, the present white paper seeks to place on record the status of implementation
of assurances made in the Andhra Pradesh Reorganisation Act, 2014 as well as the
assurances / announcements of the Hon’ble Prime Minister on the floor of Rajya
Sabha on 20.02.2014.

Unscientific Division of Andhra Pradesh State

3. Lack of adequate and serious consultations with the key stakeholders, absence
of consensus amongst key political parties, lack of transparency and cloak and
dagger mode of drafting the Bill characterised the process of enactment. Despite
series of agitations from the people, scant regard was shown to their feelings /
aspirations. Lack of transparency surrounding the reorganisation process and the
frenetic pace with which the process was carried out by the then UPA led central
government had caused serious disenchantment amongst people of Andhra
Pradesh.

4. The bifurcation of State resulted in Andhra Pradesh losing the economic

powerhouse and capital Hyderabad developed by successive Governments for
nearly 7 decades, lack of large scale industrial base, absence of central institutions
and left a deep sense of hurt and anguish in the 5 crore population of Andhra

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Pradesh. Andhra Pradesh was slated to be created without a Capital, facing a
severe resource crunch and people losing faith in sense of justice and fair play.

Andhra Pradesh Reorganisation Act 2014 – Injustices done to Andhra Pradesh

5. The inconsistencies in the Re-organisation Act and the actions of the
Government of India causing injustice to the state of Andhra Pradesh are:.
 The state received only 46% of the estimated revenues of the combined
State while accounting for the 58% of its population which was also
confirmed by the 14th Finance Commission.

 Assets were allocated on location basis whereas debt liabilities were

distributed on population basis.

 In power sector, power consumption has been adopted as the basis of

distribution which is detrimental to AP state.

 Refund of taxes is to be shared between Andhra Pradesh and Telangana

on population basis (58.32 : 41.68) whereas deferred tax collections have
been allocated on location basis. This has caused a loss of about Rs.3,800
Crores.

 No capital city for the residuary State of Andhra Pradesh

 Undivided loan liability of more than Rs.33,478Cr. has been put in the
books of accounts of Andhra Pradesh, burdening the State with discharge
of liability along with interest, pending division. This has adversely impacted
FRBM limits of Andhra Pradesh as well.

 Despite Singareni Collieries being a Schedule IX Company, Telangana

State has been allocated 51% equity of the company on location basis.

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6. Status of Implementation of Provisions of the Andhra Pradesh
Reorganisation Act 2014
a) Main Sections of the Andhra Pradesh Reorganisation Act, 2014
There are 14 assurances in the main sections of the Andhra Pradesh
Reorganisation Act, 2014.
i) Fully implemented – 0
ii) Partly implemented –5 (Special Development Package for 7 districts;
Polavaram; Educational Institutions and Infrastructure Projects; Tax
incentives, Support for Capital)
iii) Not implemented –9 (Greyhounds; APLA seats; Division of properties of
A.P. Bhavan; Apportionment of Tax arrears, loans and refunds;
Government of India reference under Sec. 66; Apportionment of
Schedule IX Government Companies and Corporations; Bifurcation of
Schedule X Institutions; Bifurcation of Schedule X Institutions; River
Management Boards)

­ Establishment of Greyhounds Training Centre [Section 9]

Detailed proposal costing Rs.858.37 crore sent to Ministry of Home Affairs,
Government of India for replication of existing Greyhound infrastructure and
training facilities in Andhra Pradesh. Ministry of Environment, Forest and Climate
Change (M/o E,F&CC), Government of India granted In-Principle approval of the
Stage –I Clearance for diversion of 2087.09 hectares of land for establishment of
Greyhounds Training Centre etc.State Government has sent compliance report
for the diversion land to M/o E,F&CC, Government of India. The M/o E,F&CC,
Government of India was requested to accord early approval for Stage-II, since it
is said that Government of India will release the approved amount of Rs.
Rs.219.16 crore after handing over possession of the land.

­ Increase of Seats in A.P. State Legislative Assembly [Section 26]

Section-26 of the Andhra Pradesh Reorganisation Act, 2014 provides for
increase of existing seats from 175 to 225 in the A.P. Legislative Assembly.
Proposals were furnished on 29.09.2016. This issue is pending for a long time
with Government of India.Changing its stand that constitutional amendment is in

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 process the Government of India has now informed that till the year 2026 this
increase cannot be done.

­ Development Grant for 7 backward districts of the State covering

Rayalaseema and North Coastal Region [Section 46(2) & (3) and 94(2)]
The then Hon’ble Prime Minister assured on the floor of Rajya Sabha on
20.02.2014 for providing backward areas of Andhra Pradesh, a special
development package on the lines of K-B-K and Bundelkhand model. A proposal
for Rs.24,350 crores was submitted to Govt. of India in October 2014, after
consultations with the then Planning Commission, implementable for 5 years.
However, the Govt. of India has agreed to give Rs.350 crores every year @
Rs.50 crore per each of the 7 districts. The Government of India has so far
released Rs.1050 crores for the years 2014-15, 2015-16 and 2016-17. Govt. of
India had released Rs.350 crores on 09.02.2018 but took back the same
unilaterally on 15.02.2018 without consulting State Government. Further, No
funds under Special Development Package have been released to Andhra
Pradesh in 2017-18 and 2018-19 so far, in spite of specific request made by
Govt. of Andhra Pradesh for release of Rs.700 crore for the years 2017-18 and
2018-19 and recommendation from NITI Aayog to Union Finance Ministry (vide
OM No.O14015/18/2015-SP-S, dt.08.11.2018) to release the same, to keep up
the pace of works already grounded.

The Government of India has recently released Rs.450 crores to Telangana

Government under Special Development Package. Government of India was
requested to immediately release the Rs.700 crores for the years 2017-18 and
2018-19 to keep up the pace of works already grounded, as 25,007 works
costing Rs.1641.50 cr. are taken up, of which 14,512 are completed, 5,364
works are in progress and Utilisation Certificates for an amount of Rs.1049.34
crores are submitted to Government of India.

­ Polavaram Project [Section 90]

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 Polavaram is the life line of AP People and as of now, 62.53 percent of the work
has been completed and strenuous efforts are being made to complete the
project by 2019. Total expenditure incurred on Polavaram project under National
Project upto 15th December 2018 is Rs.10,069.66 Crores. Out of this, an amount
of Rs.6727.26 Cr has been released to Govt. of Andhra Pradesh by Government
of India. The balance amount of Rs.3,342.40 Cr. is still to be reimbursed by the
Government of India. No funds are released for the last four months by
Government of India towards reimbursement of funds already spent by the State
Government resulting in strained State finances. As per the orders issued by the
Ministry of Finance, Government of India Vide F.No.1(2)/PF-1/2014(pt),
Dt.30.09.2016, revised cost of the Project at the price level as on 01.04.2014 has
been submitted to Central Water Commission (CWC) on 16.08.2017.
Government of India in reply to Rajya Sabha Question No.788 has answered on
17.12.2018 that “As informed by the Central Water Commission, State
Government had submitted the second revised Estimate of Polavaram Irrigation
Project (PIP) amounting to Rs.57940.86 crore at 2013-14 PL. Land Acquisition,
Rehabilitation and Resettlement (LA, R&R) are part of irrigation component of
the Project. Provision for LA, R&R in revised estimate of the project is based on
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013. Actual rise in cost on account of LA and R&R over
previously approved cost depends upon finalisation of revised cost estimates of
the project.” Government of India has been requested to approve revised cost
estimates for Rs.57,940.86 crores expeditiously and ensure seamless
reimbursement of money spent by the State Government to avoid interest
burden.

­ Tax incentives [Section 94 (1) and (2)]

A proposal seeking special package of incentives , to promote industrialisation
and economic growth was submitted to Govt. of India under Section 94(1) of AP
Reorganisation, Act 2014 on 26.06.2014 and till date no action is taken on this.

Government of India vide CBDT Notification issued in September 2016, notified

seven districts for availing tax incentives - 15% of higher additional depreciation
and 15% of investment allowance on the cost of plant and machinery acquired

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 under section 32(1)(iia) and section 32AD of the Income-tax Act, in respect of
any manufacturing undertaking set up during the period from 01.04.2015 to
31.03.2020. However, these incentives come under Section 94 (2) of the
Andhra Pradesh Reorganisation Act, 2014. These benefits given under Income
tax Act have been extended for development of backward areas across various
States like Telangana (9 Districts) West Bengal (11 Districts) and Bihar (17
Districts), that too before giving the benefit to 7 backward districts of Andhra
Pradesh. Moreover, it is common knowledge that these incentives do not attract
industrial investments and the orders issued by Government of India are mere
eyewash.

State Government requested Government of India to give Tax incentives

proposed in letters of Hon’ble Chief Minister addressed to Union Finance
Minister and Union Commerce Minister separately on 26.06.2014, to ensure
speedy industrial growth and give fillip to economy. These incentives include 1.
GST-Reimbursement up to the extent of Central Govt. share of CGST and IGST
for 5 Years; 2. Reimbursement of Centre's share of income tax for first 5 years;
3. 30% of the investment in Plant & Machinery with an upper limit of Rs.5 Crore;
4. 3% on working capital credit advanced; 5. Reimbursement of 100% insurance
premium on insurance for 5 years; and 6. Transport and Employment subsidy
etc. These incentives are being provided to all the 11 Special category States.
There is no positive response so far from Government of India.

­ Central Support for creation of new Capital City [Section 6 and 94(3) & (4)]
Under a unique ‘Land Pooling Scheme’ devised by Government of Andhra
Pradesh, farmers handed over 33,000 Acres of land valued at more than
Rs.50,000 Cr. for the construction of greenfield capital Amaravati. Provisional
estimates indicate that it would require about Rs.1,09,023 Cr. to construct
Greenfield Amaravati City including the Raj Bhavan, Secretariat, High Court,
Legislative Assembly and Council along with trunk infrastructure and land
development. Detailed Project Report for the Amaravati Government Complex
and Infrastructure including the Legislative Assembly, High Court, Raj Bhavan,
residential quarters for Ministers, Secretariat, Government housing for
employees and other infrastructure for a total of Rs.39,937 Cr. was submitted to
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Government of India, for release of funds under Section 94(3) of Andhra
Pradesh Reorganisation Act, 2014. Currently, 56 projects costing Rs.48,115
crores are taken up in the Capital City region and 32 projects costing Rs.26,600
crores are under execution, 6 projects costing Rs.10,167 crores are at tendering
stage and 18 projects costing Rs.11,352 crores are at pre-tender stage.
Government of India has released Rs.1,500 Cr. during the years 2014-17 and no
funds were released in 2017-18. Even the assured amount of Rs.1000 crores
more is not released so far. State Govt. submitted utilisation certificates for
Rs.1632.48 Cr. Government of India was requested to provide adequate funds
for the development of Capital city of Amaravati as there is a statutory duty cast
on it under section 94(3) of the Andhra Pradesh Reorganisation Act, 2014.

The Director (State AP), NITI Aayog vide File No.M-13040/64/ 2017-S-S,
dt.14.06.2018 has
 stated that Director (State-AP), NITI Aayog visited Andhra Pradesh State on
5th and 6th June, 2018 and visited work sites for spot assessment of works;
that it is observed that the works are in brisk progress on each site and
thousands of workers, engineers from executing agency as well as the
engineers from State Govt. are working in the whole Capital Region; that he
was informed that approximately 25 executing agencies are working
simultaneously at present in the whole New Capital region of Amaravati; that it
was observed by him from the records of the State Government that the
APCRDA has paid the Bills amounting to Rs.1632.48 Cr. to the Executing
Agencies.

 recommended to Department of Expenditure, Ministry of Finance,

Government of India for release of an amount of Rs.666 Cr. @ Rs.333 Cr. per
year for 2017-18 and 2018-19 to Government of Andhra Pradesh out of the
amount of Rs.1000 Cr. to be released to Andhra Pradesh for the purpose of
creation / development of essential infrastructure in the New Capital City of
Andhra Pradesh State during the year 2018-19.

b) Schedule XIII – Educational Institutions

 Status of 11 Institutions

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  5 Institutions (IIT, NIT, IIM, IISER and IIITDM) are functioning from
temporary campuses since 2015-16.

 2 Institutions (IIPE and NIDM) are functioning from temporary

campuses since 2016-17.

 2 Institutions (Central University and AIIMS) are functioning from

temporary campus from 2018-19.

 One Institution i.e. Tribal University is not yet established.

 As per the provisions of the Andhra Pradesh Reorganisation Act,

2014, Government of India should have established a Central
Agricultural University but this is not done. Instead Government of
India has released Rs.135 crore to existing Acharya N.G. Ranga
Agricultural University.

 Contribution of Government of Andhra Pradesh for the 11 Institutions-

- 2909.17 Acs. of land allotted
­ Rs.131.33 croresanctioned for protection of land and land
acquisition
­ The State Government has appointed District Collectors as Nodal
Officers for resolving issues that may arise in establishing these
institutions.

 As against the Rs. 12,746.38 crore required for setting up 11

Institutions Government of India has released Rs.845.42 crore
(6.63% of required funds), during 2014-19. At this rate of funding, it
would take 20 to 30 years to establish the 11 educational institutions,
in a full-fledged manner.

 State Government requested Government of India to ensure full-

fledged establishment of these 11 institutions and appointment of
regular faculty in a time bound manner.

c) Schedule XIII – Infrastructure Projects

 Eight (8) Infrastructure projects are assured in Schedule XIII – read with
Section 93

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  Five (5) projects are not implemented, namely establishment of
Dugarajapatnam Port, Establishment of Integrated Steel Plant,
establishing Greenfield crude oil refinery and petrochemical complex,
establishing a new railway Zone, Metro rail facility in Visakhapatnam and
Vijayawada-Guntur-Tenali.

 Three (3) projects are at initial stages of implementation. These are

establishing Vizag-Chennai industrial corridor, expanding existing
Visakhapatnam, Vijayawada and Tirupati Airports to international
standards and establishing rapid rail and road connectivity from new
Capital.

­ Establishment of Dugarajapatnam Port

The Ministry of Shipping, Government of India issued notification for setting up a
Port at Dugarajapatnam vide Gazette Notification No.G.S.R.641(E),
dt.16.09.2013. Further, there is very clear provision in the Andhra Pradesh
Reorganisation Act, 2014 making it mandatory for Government of India to
develop a new major port at Dugarajapatnam with a target to complete phase-I
by the end of 2018. In spite of such a clear and emphatic provision in the Act, it
is surprising to note that Niti Aayog has said that major port at Dugarajapatnam
is not feasible. Since this is a mandatory assurance in the Act, Government of
India shall ensure that the assurance is implemented fully.

­ Establishment of Integrated Steel Plant at Kadapa

The State Government provided promptly all the information requested by
Government of India and by MECON Limited including the recent queries w.r.t.
land for locating Steel Plant and iron ore availability etc. Further, AP Govt. has
also agreed to extend various incentives like providing captive iron ore mines,
power subsidy, subsidised land, external infrastructure for the proposed plant. In
July, 2017, MECON has submitted a preliminary feasibility report indicating a
pre-tax IRR of 18.95%, which implies that the steel plant is highly feasible. M/o
Home Affairs in their Lr. dt.22.10.2018 have stated that Govt. of AP already

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 shared the information w.r.t. data for preparation of feasibility report by MECON.
Hon’ble Chief Minister, AP addressed a letter to Hon’ble Prime Minister on
06.11.2018 suggesting 3 options for establishing Integrated Steel Plant at
Kadapa and response from Government of India is awaited. However, State
Government itself has decided to establish the Steel Plant at its end.

­ Establishment of Cracker and Petroleum Complex in Kakinada

A Cracker and Petrochemical Complex is proposed to be established by
the GAIL-HPCL consortium at Kakinada as per Schedule XIII of the Andhra
Pradesh Reorganisation Act, 2014.

i) The 1 MMTPA complex with feedstock of Ethane, Naphtha and Propane is

estimated to cost Rs.32,900 crore. The GAIL-HPCL consortium after
discussions with Government of Andhra Pradesh suggested a viability gap
funding of Rs.1,238 crores per annum for 15 years from zero date, to be
provided by the State Government, repayable over the next 15 years. On
net present value basis it amounts to onetime payment of Rs.5615 crores.
It is pertinent to note that this amount was quantified at 14% IRR whereas
in some other projects done by public sector units and supported by
Government of India, 9% IRR has been norm.
ii) The estimated gross tax revenue to the Government of India would be
Rs.1,750 crores per annum, which includes CGST of Rs.350 crore and
retained IGST of Rs.1,400 crore.
iii) The estimated forex savings due to import substitution of the
petrochemicals produced in this complex, would be to the tune of USD 1 Bn
or Rs.6,500 crore.
iv) Government of Andhra Pradesh agreed to subsidize power (Rs 577 Cr. per
annum), water (Rs. 51Cr. per annum) and all external infrastructure
support.

In the meeting taken by the Union Home Secretary on 12.03.2018 to review

implementation provisions of Andhra Pradesh Reorganisation Act, 2014, Home

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 Secretary has directed that the matter of viability gap funding be taken up at an
appropriate level in M/o Finance. This is still pending.

Therefore the Government of India is requested to fund the viability gap as the
project was promised by Government of India to the residuary State of Andhra
Pradesh (Sch.XIII)

­ Establishment of Vizag-Chennai Industrial Corridor (VCIC)

Asian Development Bank (ADB) is partnering with the Government of Andhra
Pradesh in developing the VCIC. Government of India was requested to consider
VCIC also under the purview of National Industrial Corridor Development and
Implementation Trust (NICDIT) to leverage and benefit from the experience and
expertise of planning and developing industrial corridors in India and avail
financial assistance from Government of India, and the matter is pending with
Government of India since June, 2017. State Government requests development
of VCIC on the lines of DMIC through 100% grant funding by NICDIT.

­ Expanding the existing Visakhapatnam, Vijayawada and Tirupati airports to

international standards
Government of Andhra Pradesh has handed over an extent of 698 Acs. at
Vijayawada and 732Acs. at Tiruapti to Airports Authority of India for expansion
and necessary funds have also been released for relocation of utilities. For
Vijayawada and Tirupati airports, new terminals have been constructed and
runways are expanded. However, international operations are yet to commence.

Various Airlines are being persuaded by the State Government for starting
International flights from Vijayawada and Tirupati. International flights from
Vijayawada to Singapore under VGF model from Government of Andhra
Pradesh commenced from 4th December, 2018. The flights will be operated twice
a week by Indiigo Airlines. International flights have not commenced from
Tirupati Airport.

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 Ministry of Civil Aviation, Government of India has been requested to accord
status of ‘Port of Call’ to Vijayawada and Tirupati airports by including them in
existing bi-lateral agreements

­ Establishment New Railway Zone

The assurance relating to establishment of a new Railway Zone in the successor
State of Andhra Pradesh remained unfulfilled so far. The Government of Andhra
Pradesh has requested the Govt. of India for formation of a new Railway Zone
with Visakhapatnam as headquarters.

Railway Board constituted a committee to examine the issue and the committee
has submitted its report. The matter is pending with Ministry of Railways. This is
a long pending decades old demand and hence, there is an immediate need to
fulfil this assurance.

­ Establishment of Rapid Road & Rail Connectivity from New Capital Rail
Connectivity
State Government has requested Government of India in 2014 to initiate action
for establishing rapid rail connectivity from new capital to Hyderabad and other
important cities of Telangana. Government of India have constituted a committee
comprising Senior Administrative Grade (SAG) Officers to examine the issues
contained in the Andhra Pradesh Reorganisation Act, 2014. The Detailed Project
Report prepared is pending with Ministry of Railways. A revised Detailed Project
Report was submitted by SC Railway on 09.07.2018.

The Chief Engineer, Constructions-II, SC Railway vide letter dt.25.10.2018 has

informed that Railway Board vide letter dt.14.06.2018 approved Errupalem-
Nambur via Amaravati single line (56.53 Km) and to consider other links later.
Further, Railway was advised to submit revised Detailed Project Report for
approval. Detailed Estimate vetted by Finance for Rs.1732.56 crores was sent to
Railway Board on 06.07.2018 and sanction is awaited.

In the meeting taken by the Union Home Secretary on 12.03.2018 to review

implementation provisions of Andhra Pradesh Reorganisation Act, 2014,
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 representative of M/o Railways informed that projects to the tune of Rs.40,000
crore were in the pipeline, which includes many projects for improving rail
connectivity in AP and Telangana. After deliberation, Home Secretary has
mentioned that Andhra Pradesh would benefit by improved connectivity and
directed that work should be completed within a definite time frame by M/o
Railways.

Road Connectivity
Government of Andhra Pradesh has requested Government of India on
25.08.2014 to initiate action for establishing rapid road connectivity from new
capital to Hyderabad and other important cities of Telangana. Government of
Andhra Pradesh has proposed five projects and two of the five projects are at
Detailed Project Report stage.
1) Hyderabad-Suryapeta-Kodada-Nandigama-Vijaywada / Amaravati (NH-65) –
275 Km
2) Hyderabad-Nagarjunasagar -Macharla (Covered by NH-565)-Rentachintala-
Dachepalli-Piduguralla-Sattenapalli-Perecharla-Guntur-Amaravati– 290 Km
3) Amaravati/Vijayawada–Ibrahimpatnam–Tiruvuuru- Bhadrachalam- Jagdalpur
(NH-30)- 171 Km uptoBhadrachalam
4) Anantapuramu -Amaravati Express way (Greenfield Expressway).
5) Amarvati Outer Ring Road– 180 Km

State Government requested for expeditious completion of the assurance of

providing rapid rail and road connectivity to Capital Amaravati.

­ Establishment of Metro Rail Facility in Visakhapatnam and Vijayawada

Detailed Project Reports submitted by Andhra Pradesh for the Vijayawada and
Visakhapatnam Metro Rail projects were given in-principal approval in 2015.
However, Government of Andhra Pradesh has been asked to resubmit new
Detailed Project Reports under new Metro Policy of 2017. Under the new Metro
Policy of 2017, burden of raising funds for the project will be on Government of
Andhra Pradesh. State Government requests that Vijayawada and
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Visakhapatnam Metro Projects should be given viability gap funding and fast
track approvals.

d) Schedule IX – Government Companies and Corporations

 There are 89 Institutions listed under Schedule IX.

 Expert Committee headed by Ms. Sheela Bhide is constituted to give

recommendations on demerger.
 Two more state level institutions which were not included under Schedule-
IX were entrusted to the Expert Committee for giving recommendations on
demerger with the consent of Govt. of Telangana.

 Ms. Sheela Bhide committee term extended up to 31st December, 2018.

 Expert Committee has given recommendation for division of assets and

liabilities for 85 institutions and division of employees for 60 Institutions.
Out of these 60, Government of Andhra Pradesh issued orders for division
of assets, liabilities and employees in respect of 41 institutions accepting
the recommendations of the Expert Committee and Govt. of Telangana
has been requested to communicate consent. Expert Committee has
been requested to revise recommendations of 13 institutions duly pointing
out certain deficiencies. Remaining 6 are under examination at
Government level.

 The assets of the Schedule IX institutions are tentatively valued at

Rs.1,58,508 crore.

 However, no institution is so far bifurcated due to non-cooperation from

Government of India and Govt. of Telangana.

e) Schedule X - State Institutions

 There are 142 Institutions in Schedule X.

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  The Hon’ble Supreme Court on 18.03.2016 in Civil Appeal Nos.3019-
3021 of 2016 arising out of SLP (C) Nos.14705-14706 of 2015 has
ordered that all assets and liabilities of Schedule X institutions are
divisible on population basis.

 The Additional Secretary (LWE), Government of India in the orders

Dt:18.04.2017 among other things has decided that all immovable and
movable properties such as land and all stores, articles and other goods
etc., will be apportioned on location basis in view of the provisions of
Section 48(1) read with Section 48(4) of A.P. Reorganization Act, 2014.

 Since the above order is not in accordance with the judgment of Hon’ble
Supreme Court of India in Civil Appeal Nos.3019-3021 of 2016 arising
out of SLP (C) Nos.14705-14706 of 2015 dated 18.03.2016.
Government of Andhra Pradesh has addressed Government of India to
withdraw its order and pass fresh order in tune with the orders of
Supreme Court and the matter is pending with Government of India.

 Since there is no response from Government of India, APSCHE had to

file W.P.No.34949 of 2018_in High Court challenging the orders of the
Government of India.

 The assets of the Schedule X institutions are tentatively valued at

Rs.38,772.85 crore.

 The issue regarding division of 142 State institutions remained unsettled

till datedue to non-cooperation from Government of India and Govt. of
Telangana.

f) Schedule XI – River Management Boards

 Government of India has not yet issued notification with regard to
jurisdiction of Krishna River Management Board and Godavari River
Management Board.

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  The headquarters of the Krishna River Management Board which is
presently in Telangana State has to be shifted to Andhra Pradesh, in
tune with the provisions of the A.P. Reorganisation Act.

 Krishna River Management Board and Godavari River Management

Board are not given assistance of the Central Industrial Security Force.

g) Division of properties of A.P. Bhavan, New Delhi

 The issue relating to apportionment of properties of A.P. Bhavan, New
Delhi remained unsettled for over 4 years in spite of persistent efforts of
Government of Andhra Pradesh. Chief Secretary, Andhra Pradesh vide
D.O.Lr.No.4052/GAD/SR/ 2015, dt.11.05.2017 has referred to
Government of India under Scetion-66 of the Andhra Pradesh
Reorganisation Act, 2014 for resolution of pending issues, including the
issue of apportionment of assets & liabilities of properties located at New
Delhi. A Joint Committee was constituted by both the States on
22.09.2017. Two options to divide the properties were put forth before
Govt. of Telangana by Govt. of Andhra Pradesh. Govt. of India also
requested Govt. of Telangana on 19.03.2018 and 15.06.2018 to give
views on the two options. The issue is still pending resolution.

7. Removal of Anomaly in Taxation Matters

A new anomaly which did not exist in the earlier reorganisation legislations crept into
Andhra Pradesh Reorganisation Act 2014, regarding matters dealing with taxation
(Section-50, 51 & 56 of A.P. Reorganisation Act). Government of Andhra Pradesh
has requested Government of India to amend relevant provisions to rectify the
anomaly and action in this regard is still pending. If the amendment is not made to
the Act immediately, the state would be put to a loss of Rs. 3820crores. In the
meantime, the matter was taken up with Govt. of Telangana as suggested by Govt.
of India. The Govt. of Telangana did not agree to settle the matter keeping the spirit
of “uniformity of principle” in view. This has been reported to Government of

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Indiawith a request to either amend the Act or compensate Government of Andhra
Pradesh.

8. Reference by Government of Andhra Pradesh under Section 66

A reference has been made through D.O. Letter NO.4052/GAD/SR/2015, Dt:
11.05.2017 of the Chief Secretary on apportionment of assets and liabilities of
Schedule-IX institutions, Schedule-X institutions, institutions not mentioned
anywhere in the Act, apportionment of A.P. Bhawan properties at New Delhi and
correction of anomaly in Taxation matters as contained in Section-50, 51 & 56.
Further, another reference was made in D.O. Letter No.4052/GAD/SR/2015, Dt:
30.05.2017 of the Chief Secretary regarding apportionment of assets pertaining to
Singareni Collieries. Govt. of India is requested to take expeditious action on the
reference made under Section-66. The action in this regard is awaited.

9. Prime Minister’s assurances – Status on implementation including

Special Category Status
There are six assurances made on the floor of Rajya Sabha by the then Prime
Minister on 20.02.2014.
 Fully implemented – 0
 Partly implemented – 5 (Tax Incentives; Special Development Package;
Polavaram; Personnel, Assets & Liabilities distribution; Resource Gap)
 Not implemented – 1 (Special Category Status)

­ Special Category Status (SCS)

Hon’ble prime Minister has assured on the floor of Rajya Sabha on 20.02.2014
that “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.”

Union Cabinet passed resolution for SCS in Mar’14 and forwarded to Planning
Commission.

After lot of pressure from State Government for according Special Category
Status to Andhra Pradesh, Government of India on 08.09.2016 has announced

17
Special Assistance Measure to Andhra Pradesh. The press note issued by the
Ministry of Finance, GoI on 08.09.2016 states that “following the
th
recommendations of the 14 Finance Commission, the class of special
category states ceases to exist. However, the Central Government has agreed
to give a special assistance measure for Government of Andhra Pradesh for
five years, which would make up for the additional Central share the State
might have received during these years, i.e. 2015- 16 to 2019-20, as envisaged
in the then Prime Minister’s statement dated 20.2.2014.”

Sri Arun Jaitley, Union Finance Minister also stated in the press conference
on 08.09.2016 that “As far as the Andhra Pradesh Reorganisation Act is
concerned, the government has decided that every commitment made in the
Act will be fulfilled since the state, as a result of bifurcation, has lost revenue
potential and also in terms of industrialisation. The NDA Government, will
attempt to deliver on promise made by then Prime Minister Manmohan Singh.”

The Union Cabinet approved Special Assistance Measure on 15.03.2017 and

in the Press Information Bureau release dt.15.03.2017 it was stated that
“Central Government will provide special assistance measure to Government of
Andhra Pradesh, which would make up for the additional Central share the
State might have received during 2015-16 to 2019-20, if the funding of
Centrally Sponsored Schemes (CSS) would have been shared at the ratio of
90:10 between the Centre and the State.”

However, the earlier press release dt.08.09.2016 of the Ministry of Finance,

Government of India covered extension of central assistance as envisaged in the
then Prime Minister’s statement dt.20.02.2014 on the floor of Rajya Sabha, i.e.
both Centrally Sponsored Schemes (CSS) and Externally Aided Projects (EAPs)
at 90% grant and industrial incentives. The cabinet resolution dt.15.03.2017
limits it to CSS only. Thus, the union cabinet diluted the earlier statement
dt.08.09.2016.

Citing constraints of 14th FC’s recommendations, Union Finance Minister

announced Special Assistance Measure (SAM), stating that all ingredients of

18
SCS would be made available with SAM. It was informed to the State Govt. that
after introduction of GST, the Assistance & Incentives offered to SCS States
would lapse. Government of Andhra Pradesh expected that SAM would be
implemented in letter and spirit by Government of India on par with other Special
Category States (N.E. and Hill States).

However, Government of India has extended Central Assistance measures &

Incentives to Special Category Status States in Aug’17. A new industrial
incentive package has been given to North East States in Mar’18. The same was
not extended to the State of Andhra Pradesh.

Union Cabinet approved to grant SAM to AP in Mar’17 to provide sanctity.

Initially, for providing SAM, the EAP mechanism was suggested by Government
of India. But, no orders were issued. AP Govt. requested to at least provide SAM
through NABARD/ HUDCO / Banks. But Government of India proposed
formation SPV and has put the burden of borrowing limit on State. However, no
written communication given till date.

For providing Central Assistance to SCS States, formation of Special Purpose

Vehicle (SPV) was never sought, where as in the case of AP, SPV is being
insisted upon

Hon’ble Chief Minister has requested on 28.02.2018 the Minister for Commerce
& Industry, Government of India that Andhra Pradesh may also be extended
financial incentives necessary for industrialisation, as well as the compensatory
mechanism towards refund of SGST and IGST in line with the special
consideration provided to the erstwhile special category states, to promote
industrialisation and economic growth in the State of Andhra Pradesh.

Union Cabinet on 21.03.2018 has approved the North east Industrial

Development Scheme (NEIDS), 2017 with financial outlay of Rs.3,000 crore up
to March, 2020. NEIDS is a combination of the incentives covered under the
earlier two schemes with a much larger outlay. Under the Scheme, the following
incentives shall be provided to new industrial units set up in the North eastern
States including Sikkim:

 Central Capital Investment Incentive for Access to Credit (CCIIAC)

19
  Central Interest Incentive (CII)
 Central Comprehensive Insurance Incentive (CCII)
 Goods and Services Tax (GST) Reimbursement
 Income-Tax (IT) Reimbursement
 Transport Incentive (TI)
 Employment Incentive (EI)

Sri Y.V. Reddy, Chairman of the 14th Finance Commission has stated on
08.01.2017 that the Finance Commission has no role to play in recommending
Special Category Status to any State.

Sri M. Govinda Rao, Member, 14th Finance Commission has stated on

11.03.2018 that it’s misleading to blame 14th Finance Commission for not
according Special Category Status to States and nowhere the FFC has referred
to the issue of desirability or of according Special Category Status in its report.

15th Finance Commission during its interaction with Government of Andhra

Pradesh at A.P.Secretariat, Velagapudi on 11thOctober, 2018 has clearly stated
that the issue of Special Category Status does not come under the 15th Finance
Commission.

No communication is received by Government of Andhra Pradesh w.r.t. Special

Purpose Vehicle, the Government of India is speaking of and no
operationalisation guidelines are issued in this regard.

In the above backdrop and as benefits under Special Category Status were
extended to existing 11 Special Category States, Government of India is duty
bound to extend Special Category Status to Andhra Pradesh for a period of 10
years.

­ Resource gap [Section 46(2)]

As per the assurance of the then Hon’ble Prime Minister on the floor of the Rajya
Sabha on 20-02-2014, the resource gap in the successor State of Andhra
Pradesh from 1st year, especially during the period between appointed day and
the acceptance of the 14th Finance Commission recommendations by the

20
Government of India has to be compensated in the regular union budget for the
year 2014-15.

The Comptroller and Auditor General of India (CAG) has furnished the audited
finance accounts for 2014-15 financial year, indicating a revenue deficit of Rs.
13,775.76 Cr.. This is after excluding the grant of Rs.2,303 Cr. received from
Government of India for 2014.15. Therefore, the total revenue deficit comes to
Rs. 16,078.76 Cr.

Towards resource gap, Government of India released so far Rs. 3,979.50 Cr.
(Rs. 2,303 Cr. in 2014-15, Rs. 500 Cr. in 2015-16 and Rs. 1,176.50 Cr. in 2016-
17).

Government of India announced on 08.09.2016 that in the Andhra Pradesh

Reorganisation Act, 2014, the commitments for the resource gap for the year
2014-15 is being met on the basis of “standardised expenditure” for that year.
The resource gap has been tentatively quantified subject to further adjustment
on account of figures relating to certain pension schemes. It was further stated
that a part of the resource gap compensation amounting to Rs. 3,979.50 Cr. was
paid and the balance is being paid in annual instalments.

The Hon’ble Union Finance Minister on 04.05.2017 intimated the Hon’ble Chief
Minister that Rs. 138.39 Cr. more will be released to the Andhra Pradesh which
was arrived after disallowing certain expenditure incurred by the State treating
them as new schemes. It is also intimated that PRC arrears will not be
considered.

A team of Government of Andhra Pradesh officials held discussions with

Secretary (Expenditure), Ministry of Finance on 07.02.2018 and requested to
allow the claim for Rs.16,078.76 Cr., as certified by the C&AG, duly explaining
the reasons to consider disallowed expenditure and it has been indicated that
large number of bills were not paid in 2014-15, besides non-payment of PRC
arrears due to paucity of funds. The revenue bills for Rs.3194 Cr. were pending
on 31.03.2015 and the Pay Revision Commission arrears payable to
21
 Government employees for the period 02.06.2014 to 31.03.2015 were Rs.3920
Cr.

On 06.03.2018 the Union Finance Minister has stated that the revenue deficit
would be arrived on the basis on the deficit indicated by 14th Finance
Commission for the year 2015-16 and the said deficit would be proportionately
allowed for the year 2014-15.

The above contention of the Government of India that Resource Gap for 2014-15
is being met on the basis of standardized expenditure for that year is against the
provision of Section 46 (2) and also the assurance of the Prime Minister on the floor of
Rajya Sabha on 20.02.2014.

Further, the amount of Rs.3979.50 crore released to Government of Andhra Pradesh

has been done during the years 2014-15, 2015-16 and 2016-17, whereas as per the
assurance, the said amounts ought to have been released in 2014-15.

State Government requested the Parliamentary Standing Committee of Ministry of

Home Affairs, Government of India that amendment be made to the A.P.
Reorgnaisation Act, 2014 to incorporate assurance of the Hon’ble Prime Minister
in Rajya Sabha on 20.02.2014; that entire resource gap of the successor state of
Andhra Pradesh for the period between the appointed day and 31.03.2015 as
certified by the C&AG be provided by Government of India.

10. Utilisation Certificates

Government of India has released an amount of Rs.14,259.32 Cr. to Government of
Andhra Pradesh under various provisions of the Andhra Pradesh Reorganisation
Act, 2014 and Utilisation certificates have been submitted for an amount of
Rs.13,620.79 Cr.

11. Initiatives taken by Andhra Pradesh for implementation of Andhra

Pradesh Reorganisation Act, 2014
 Hon’ble Chief Minister made 29 visits to New Delhi and made personal
representations to the Hon’ble Prime Minister and other Union Ministers.
22
 The Hon’ble Chief Minister has addressed a number of representations to
Hon’ble Prime Minister and other Union Ministers for implementation of
various provisions of A.P. Reorganisation Act and for early settlement of
issues and implementation of assurances.

 The Andhra Pradesh Legislative Assembly has unanimously adopted

resolutions on 01.09.2015, 16.03.2016, 13.03.2018 and 19.09.2018
requesting Government of India to honour the commitments made to Andhra
Pradesh in the Andhra Pradesh Reorganisation Act, 2014 and the
assurances of the Prime Minister given on the floor of Rajya Sabha on 20th
February, 2014.

 The Andhra Pradesh Legislative Council has unanimously adopted

resolutions on 03.09.2015, 16.03.2016 and 16.03.2018 requesting
Government of India to honour the commitments made to Andhra Pradesh
in the Andhra Pradesh Reorganisation Act, 2014 and the assurances of the
Prime Minister given on the floor of Rajya Sabha on 20th February, 2014.

 Number of committees were constituted for resolving the issues under A.P.
Reorganisation Act.
i) Sheela Bhide Committee to recommend the bifurcation of assets and
employees of Schedule-IX institutions.
ii) Kamalanathan Committee to divide the allocable State level
employees.
iii) A ministerial committee of Sri Yanamala Ramakrishnudu, Sri K.
Atchannaidu and Sri Kalva Srinivasulu has been constituted to hold
discussions with Telangana counterpart before the Hon’ble Governor.
iv) A committee with Sri C. Kutumba Rao, VC, APSPB, Sri S.
Balasubramanyam, IAS (Retd.), Consultant, AFRC and Sri L.
Premachandra Reddy, IAS (Retd.), E.O. Prl. Secretary (SR) to Govt.,
GAD has been constituted to closely monitor the bifurcation issues at
regular intervals.

23
 v) The Chief Secretaries of Andhra Pradesh and Telangana States have
been meeting regularly to sort-out the issues.

 When the assets of X-Schedule institutions were frozen by Telangana Govt.,

the A.P. Govt. filed SLP in Supreme Court and obtained favourable orders.

 41 GOs are issued approving the recommendations of the Expert Committee

on bifurcation of the assets, liabilities and employees of Schedule IX
institutions so far.

 Constituted a Joint Committee of officials of Andhra Pradesh and Telangana

to amicably divide properties of AP Bhavan.

 An extent of 33,000 acres has been procured for capital development

through land pooling system.

 Development of designs and drawings to the Capital City without adequate

assistance from Government of India.

 Government of Andhra Pradesh has so far mobilized Rs.6,610 crore so far,

for the construction of Capital Amaravati whereas the Government of India
gave only Rs.1,500 crore during 2014-17.

 All the pending issues relating to division of assets were referred to

Government of India for early resolution as per section 66 of the A.P
Reorganisation Act. The matter is pending with Government of India.

 When an amount of Rs.5732.40 crore is due by Telangana DISCOMs to AP

GENCO for the power supplied by APGENCO, the issue was taken up with
the Govt. of India. Till today this has not been resolved. APGENCO filed a
case in National Company Law Tribunal, Hyderabad in this regard.

24
 The assets and liabilities of IX Schedule institutions and Schedule-X
institutions amounting to Rs1,97,000 crore are not divided between A.P. and
Telangana States and the request for division of these institutions was
referred to Government of India under Section 66 and the same is pending.

 Dharma Porata Diksha is being organized every month at each district

headquarter.

 Nava Nirmana Deeksha is being organized every year on 2nd June to

rededicate all people for the cause Andhra Pradesh State building.

 The State Government has patiently waited and relentlessly pursued with
Government of India for fulfilment of various assurances covered under A.P.
Reorganisation Act,2014 and the Prime Minister’s assurances. The Chief
Minister, Ministers concerned, MPs and officials have pursued with Prime
Minister, Union Ministers and officials.

 Government of India did not make any reference to Andhra Pradesh much
less to Amaravati or allocation of funds to it, in 2018-19 budget, which is last
full budget for the current Lok Sabha.

 Indefinite fast was undertaken for 11 days in June 2018, by Sri C.M.
Ramesh, Member of Parliament and Sri Ravi, MLC demanding establishment
of Integrated Steel Plant at Kadapa District.

 Telugu Desam Party MPs agitated in both houses of Parliament and the
entire budget session was a washout because of the adamant attitude of
Government of India. Representatives of Telugu Desam Party in the Central
Council of Ministers resigned their posts. Telugu Desam Party withdrew its
support to the NDA Government and moved no-confidence motion in Lok
Sabha on 20.07.2018 against the NDA Government.

25
  During the discussion on No-confidence motion in Lok Sabha and during
short discussion in Rajya Sabha, the MPs of Telugu Desam Party had
exposed to the country at large, the wilful and intentional neglect of Andhra
Pradesh and its 5 crore people by the NDA Government.

 In a democracy power rests with the people at large and the State
Government has decided to take wilful injustice done to Andhra Pradesh by
NDA Government to the notice of 5 crore population. Print & electronic
media are conveying the anguish of the people. Public opinion is being
mobilised to build pressure on Central Government by organising Dharma
Porata Deeksha in various districts, rallies and other modes of peaceful
protests are resorted to.

12. Utter disrespect shown to constitutional machinery / authorities by NDA

Govt.
Parliament is the highest constitutional body in the country. The assurances made
on the Floor of the Rajya Sabha by the then Prime Minister on 20.02.2014 are given
a go by and not even a single assurance is implemented totally till now. We are
fighting for special category status for the past 4 ½ years.

The Hon’ble Supreme Court of India, yet another Constitutional Authority, had clearly
ordered that all assets and liabilities of Schedule-X institutions are divisible on
population ratio in APSCHE case. But the Union Home Ministry has passed a
different order allocating assets on location basis. This shows utter disrespect to the
Supreme Court by Modi Government.

Another Constitutional Authority namely Comptroller and Auditor General has clearly
certified the revenue deficit at Rs.16078.76 crore for the year 2014-15. This was not
acted upon and the bureaucrats at the Finance Ministry in New Delhi arbitrarily cut
the deficit without proper authority.

Other constitutional bodies namely A.P. Legislative Assembly and Legislative

Council passed resolutions requesting for special category status and
26
implementation of various provisions of the Andhra Pradesh Reorganisation Act,
2014 but the Govt. of India till now has not acted upon them.

13. Broken Promises by NDA Government

During passage of A.P. Reorganisation Bill, Sri ArunJaitley, who was then Leader of
Opposition in Rajya Sabha, argued for special status for ten years. After coming to
power, the NDA Government has taken a 360 degrees turn and has not given
special category status to A.P. State so far.

BJP in its Seemandhra Manifesto 2014 has promised to extend Special Status to 10
years instead of 5 years promised by UPA Govt. Now it says that Special Category
Status cannot be given.

In the BJP manifesto for the State both assurances i.e. reimbursement of revenue
deficit and sanction of backward areas development package on KBK and
Bundelkhand models were included. In fact, the then Prime Minister on the Floor of
Rajya Sabha announced the assistance to the backward regions of the States on the
lines of KBK and Bundelkhand packages. When under Bundelkhand package, the
per head cost of release was Rs.4,115/- whereas in respect of A.P., it is hardly
Rs.428/. This shows the discriminatory attitude of NDA Government towards A.P.

Hon’ble Prime Minister Shri Narendra Modi during election campaign at the feet of
Lord Venkateswara at Tirupati and also in the meeting held at Nellore promised
special category status for 10 years. This has not been implemented.

When the State Government took up the issue of special category status, the Union
Finance Minister Shri Arun Jaitley said that in view of the recommendations of 14th
Finance Commission, it is not possible to give special category status to any of the
State and announced special assistance measure. However, in recent budget of
Union Government, the benefits under special category status have been extended
to North-Eastern States, thereby violating its own statement.

While computing resource gap for the year 201415, according to the pension rates
fixed by the Government of India, the pension amount for 10 months would be Rs.
27
946.90 crore. However, Government of India calculated this entitlement at Rs. 93.34
crore only.

For backward areas development, the NDA Government released Rs. 350 crore on
09.02.2018 but immediately within a week i.e. on 15.02.2018 the funds were
unilaterally taken back.

It is alleged number of times that utilization certificates were not submitted for the
funds released so far under various heads under A.P. Reorganisation Act. When
these statements are proved to be wrong, it is again alleged that these are self-
certifications. In fact, utilization certificates were endorsed by the NITI Aayog and
hence these allegations are nothing but false.

Utter disregard is shown to the provisions of A.P. Reorganisation Act and Modi
Government which is statutorily bound to sort-out the issues/disputes arising out of
A.P. Reorganisation Act between Andhra Pradesh and Telangana States has not
sorted-out one issue or settled one dispute. The division of A.P. Bhavan is a classic
example in this regard.

Though NDA Government established 10 out of 11 institutions in the State, they

have hardly given substantial amount for establishing the infrastructure. Against the
requirement of nearly Rs. 12,746 crore, they have so far released around Rs. 845
crore which comes to 6.63% of the expenditure. At this rate it would take a minimum
of 20 years for completion of the infrastructure for the projects. On the other hand,
the A.P. State has allotted an extent of 2909 acres of valuable land and released an
amount of Rs.131 crore for their protection.

When an amount of Rs.5732.40 crore is due by Telangana DISCOMs to AP GENCO

for the power supplied by APGENCO, as per the provisions of Andhra Pradesh
Reorganisation At, 2014 the issue was taken up with the Govt. of India. Till today
this has not been resolved.

28
The assets and liabilities of IX Schedule institutions and Schedule-X institutions
amounting to Rs1,97,280 crore are not divided between A.P. and Telangana States
due to negligence of Central Government.

For Amaravati city an amount of Rs.1,500 Cr. was released and no further amounts
are sanctioned. For installation of Sardar Patel Statue and Shivaji Statue substantial
amounts have been spent. For Mega ArdhKumbh to be held in January, 2019 in
Uttar Pradesh, Government of India recently has sanctioned Rs.1,200 Cr. Dholera is
being developed as 2 times the size of Delhi and Six times that of Shanghai and
initial funding of Rs. 3,000 crore given by Government of India. Mumbai–Ahmedabad
high-speed rail corridor is being executed at a cost of Rs.1.10 lakh crore. A huge
amount of nearly Rs. 27,000 crore is allocated by Government of India, for a
Convention Centre at Dwaraka.

For the development of Delhi – Mumbai Industrial Corridor, an amount of Rs.17,500

Cr. was contributed by Government of India as equity through National Industrial
Corridor Development and Implementation Trust (NICDIT) and had also approved an
additional corpus of Rs.1000 Cr as grant-in-aid to carry out project development
activities. The funds are released to the SPVs formed between the Centre and the
respective State Governments. But in the case of AP, no concrete steps taken by
Government of India to fast-track VCIC works and its request for inclusion of VCIC in
NICDIT is pending with Government of India.

The NDA Government and its representatives often say that huge funds have been
allotted to Andhra Pradesh under A.P. Reorganisation Act. But no funds are extra
allocated to Andhra Pradesh other than those released based on Finance
Commission recommendations and under various Government of India schemes.

14. Government of India which is obligated to release the following funds to Andhra
Pradesh as per various provisions of the Andhra Pradesh Reorganisation Act, 2014
and assurances made by the then Hon’ble Prime Minister on the floor of RajyaSabha
on 20.02.2014 has done a great injustice by not releasing these amounts to the
State.

29
 S.No. Section Item Amount
(Rs. in crores)
1 2 3 4
1 PM’s assurance Resource Gap (16078.76 – 3979.50) 12099.26
2 94 (3) (4) Financial Support for new Capital (39937 –1500) 38437.00
– Phase I
3 46 (2) (3) and Special Development Package (24350 – 1050) 23300.00
PM’s assurance
4 PM’s assurance Special Category Status (difference in share of 16447.00
CSS @ 90% instead of 60% for 5 years)
Total 90283.26

Recognition of efforts of Government of Andhra Pradesh

15. In spite of all the above adversities, the State made good progress due to the
hard work of its leaders, officers, employees and the support and participation of the
people of Andhra Pradesh.
(a) Global Recognition
Andhra Pradesh has been adjudged as No.1 State in India for Ease of
Business for the year 2018, on 10.07.2018, in the ranking conducted by
DIPP, Ministry of Commerce & Industry, Government of India and World
Bank.

(b) Performance of Andhra Pradesh in 54 Key Centrally Sponsored and

Central Sector Schemes in 2018-19 (up to November, 2018)
In spite of the wanton non-cooperation from Government of India in
honoring the assurances made to Andhra Pradesh in the Andhra Pradesh
Reorganisation Act, 2014 and the assurances made by the then Hon’ble
Prime Minister on the floor of Rajya Sabha, the State has made every
effort to develop against all odds. AP’s performance in 54 key
Government of India schemes stands testimony to the grit and
determination of Government of Andhra Pradesh and 5 crore people of
Andhra Pradesh, to excel even in adverse conditions.

30
  Ranks 1st in 14 Schemes [MGNREGA, National Rural Livelihood
Mission-DDUGKY, PMAY-U, National Urban Livelihood Mission,
AMRUT, Pradhan Mantri Krishi Sinchayi Yojana – Per Drop More Crop,
Rashtriya Krishi Vikas Yojana, National Project on Soil Health and
Fertility, National Mission on Oil Seed and Oil Palm, Assistance to
Voluntary Organisations for Programmes relating to Aged, Pradhan
Mantri Matru Vandana Yojana, Development of PVTGs, PRASAD and
National Health Mission]

 Ranks 2nd to 5th in 28 Schemes [RashtriyaGokul Mission, One Stop

Centre, Promotion of Electronics & IT Hardware Manufacturing,
Swadesh Darshan, Integrated Development of Fisheries, Smart Cities
Mission, Pradhan Mantri Gramin Sadak Yojana, Agricultural
Marketting, Rainfed Area Development and Climate Change,
Paramparagat Krishi Vikas Yojana, Sub-Mission on Agriculture
Mechanisation, National Livestock Mission, Scheme for Adolescent
Girls, National Nutrition Mission, National Mission on Horticulture,
Integrated Scheme on Agriculture Census and Statistics, National
Programme for Dairy Development, National AYUSH Mission, Special
Central Assistance to ST Sub Plan, National Rural Drinking Water
Mission, SBM Urban, National Food Security Mission, Har Khet Ko
Pani, Livestock Health and Disease Control, RUSA, Ajeevika,
Anganwadi and HRIDAY]

 Ranks 6th to 10th in 4 Schemes [SBM Rural, Shyama Prasad

Mukherjee Rurban Mission, Livestock Census and Integrated Sample
Survey and Pradhan Mantri Jan Vikas Karyakram (PMJVK) (MSDP)]

Way Forward
16. The State Government is taking the following measures for implementation of
Andhra Pradesh Reorganisation Act, 2014 and the assurances of the then Hon’ble
Prime Minister made on the floor of the Rajya Sabha on 20.02.2014:

31
  Continue to put pressure on Government of India till all provisions of the
Andhra Pradesh Reorganisation Act, 2014 and the assurances of the
Hon’ble Prime Minister are achieved.

 Ensure completion of Polavaram Irrigation Project, which is lifeline of Andhra

Pradesh, by 2019.

 Ensure completion of Greenfield Capital City - Amaravati

 Establish an Integrated Steel Plant at Kadapa

 Ensure establishment of Railway Zone at Visakhapatnam

 Through active support and cooperation of other political parties in the

Country, would pressurize Government of India for implementation of APR
Act and Assurances in totality, in a time bound manner.

17. The Government believes that, in a democracy, people are the ultimate
decision makers. The Government invites constructive suggestions and valuable
advice from all sections of the society as well as political parties in ensuring that all
the commitments made to Andhra Pradesh in the Andhra Pradesh Reorganisation
Act, 2014 and the assurances made by then Hon’ble Prime Minister on the floor of
Rajya Sabha on 20.02.2014 are implemented, in a specified time frame. These
inputs would help the Government strategise its way forward.

32