N Chandrababu Naidu said the centre has not allowed Andhra Pradesh to use the money to clear loans
The Andhra Pradesh government sees no "immediate benefit" from the special assistance to be provided by the centre under the externally-aided projects (EAPs) after the union government turned down its plea to let it use the money to clear outstanding loans, Chief Minister Chandrababu Naidu said today.
"The government... much to our disappointment, intimated that the special assistance will be provided by way of repayment of loan and interest for the EAPs signed and disbursed during the five years and they will not provide support to clear outstanding loans," Mr Naidu said.
"It is also intimated that EAP loans will be released to the state in the present procedure as loan only... It is difficult to understand the immediate benefit that would accrue to the state which is struggling to put its finances in order," he said.
In a note tabled in the state assembly today for a short discussion on the implementation of the AP Reorganisation Act, 2014 and the Special Central Assistance, the chief minister said the anticipated amount under the special package was Rs 20,010 crore as assistance from the centre.
"The state government may not be able to spend this amount on EAP projects in the stipulated five years. Hence we requested the centre to allow the state to clear other outstanding loans towards EAPs, small savings and Nabard," Mr Naidu said.
He said he has taken up the matter with Finance Minister Arun Jaitley and a "decision of the government is awaited."
The centre on September 8 last year announced a special assistance to Andhra Pradesh for five years. It was to be in the form of central government funding for EAPs "signed and disbursed during these years", Finance Minister Arun Jaitley had said, while announcing the package.