Union Ministry of Finance approved 1500 crore rupees for AP Capital construction
The funds will be utilized to construct essential amenities and administrative buildings in the proposed capital area of Andhra Pradesh.
Union Ministry of Finance on 30 March 2015 allocated 1500 crore rupees to Andhra Pradesh (AP) for the construction of necessary infrastructure in the new capital.
Out of the 1500 crore rupees sanctioned 1000 crore rupees are meant for essential amenities and 500 crore rupees for administrative buildings.
The Special Financial Support (SFS) is in tune with the section 94(3) of the Andhra Pradesh Reorganization Act, 2014 which mandates the Union Government to extend financial support to Andhra Pradesh to construct essential infrastructure including Raj Bhawan, High Court, Government Secretariat, Legislative Assembly and Legislative Council.
The AP Reorganisation Act, 2014 mandates Hyderabad as a common capital for Telangana and Andhra Pradesh for a period of ten years.
The new capital of AP is proposed to be constructed in the Vijayawada-Guntur-Tenali-Mangalagiri (VGMT) area on the banks of Krishna river and is named as Amaravathi.