Hello and welcome to the Current Affair's Portal of ExamPundit.in. The Union Cabinet on 15 March 2017 approved a special financial assistance for bifurcated Andhra Pradesh. This financial assistance will be provided by special dispensation in funding of Externally Aided Projects (EAPs.
The financial assistance will be also provided for the irrigation component of Polavaram project.
The special assistance will be provided to the state towards repayment of loan and interest for EAPs signed and disbursed from 2015-16 to 2019-20. The decision to this effect was taken at a Union Cabinet meet chaired by Prime Minister Narendra Modi.
Modalities for implementation of the decision:
Externally Aided Projects: Andhra Pradesh will be provided with a special assistance measure by the Union Government. Under this measure, the centre would make up for the additional central share the state might have received during 2015-16 to 2019-20. This will be done is the funding of the
Centrally Sponsored Schemes (CSS) would have been shared at the ratio of 90:10 between the Centre and the State.
In addition to this, the special assistance will be provided by way of repayment of loan and interest for the Externally Aided Projects (EAPs) signed and disbursed during 2015-2016 to 2019-20 by the State.
This support in repayment of the EAP loans will help Andhra Pradesh to put its finances on a firmer footing and promote economic growth.
Polavaram project: The Union Government will also fund 100 per cent of the irrigation component of the Polavaram project starting from 1 April 2014. Completion of the Polavaram project will help in increasing irrigation prospects in the state.
Team Exam Pundit