Cabinet clears special assistance for EAPs in AP

The Cabinet has approved financial assistance for bifurcated Andhra Pradesh by way of special dispensation in funding of externally aided projects (EAPs) and also the irrigation component of Polavaram project. A decision to this effect was taken at a Cabinet meeting yesterday. 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 Centre will also fund 100 per cent of the irrigation component of the Polavaram project starting from 1st of April, 2014.

The Andhra Pradesh Government will execute the project on behalf of the Centre. However, overall



coordination, quality control, design issues, monitoring and clearance related issues are to be dealt by the Polavaram Project Authority of the Ministry of Water Resources. The assistance will help and assist the newly formed State of Andhra Pradesh to put the State's finances on a firmer footing and promote economic growth.

The Centre while fulfilling its commitments under Andhra Pradesh Re-organisation Act 2014, has already provided 'Special Assistance' of over 1,975 crore rupees to the state during the current financial year. Besides, the Ministry of Water Resources has also provided over 2,000 crores for the Polavaram Irrigation Project.