Union Government on 4 February 2015 approved a development package and ad hoc support of 850 crore rupees for Andhra Pradesh.
The development package was provided for the development of backward areas and Rayalaseema and North Coastal region of the State. Under Sections 46 (2) and 46(3) of the Andhra Pradesh Reorganisation Act, 2014, Union government is committed to provide the development package.
Out of the total 850 crore rupees, 350 crore rupees will be provided for the development activities in seven backward districts of the State and 500 crore rupees will be provided as an ad hoc support for bridging the resource gap that might have arisen in the Union Budget 2014-15.
Besides this, the Union government also decided to provide tax sops to promote industrialization and economic growth in both Andhra Pradesh and Telangana. These are:
When: 4 February 2015