Highlight the areas of central assistance to Andhra Pradesh under the provision of Andhra Pradesh Reorganization Act and Fourteenth Finance Commission?
In short
Under the Andhra Pradesh Reorganisation Act, central assistance covers a new capital, the Polavaram project, industrial nodes like Kopparthy and Orvakal, and special assistance grants, while the Fourteenth Finance Commission raised devolution. Over ₹35,000 crore in special grants flowed since 2015, and the states' share rose from 32% to 42%.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 245 words
Capital Formation Assistance
₹15,000 crore arranged for Amaravati’s development, supported by multilateral agencies.
Polavaram Irrigation Project
Fully funded by the Centre, vital for agrarian economy and national food security.
Industrial Infrastructure Development
Funds allocated for water, power, railways, and roads in Kopparthy on Vishakhapatnam-Chennai Industrial Corridor and Orvakal on Hyderabad-Bengaluru Industrial Corridor.
Special Assistance Grants
₹35,000 crore released since 2015 to cover revenue deficits and capital investments.
Capital Expenditure Approvals
Nearly ₹4,000 crore approved and released under SASCI till December 2024.
External Financing
USD 1,600 million secured from World Bank and ADB for development projects.
FFC Enhanced Devolution
States’ share in central divisible pool increased from 32% to 42%, benefiting Andhra Pradesh.
Special Category Status Demand
Not granted, but FFC’s grants partly compensate; state continues to seek additional support.
Strengthen Capital Infrastructure Financing
Continue multilateral funding to expedite Amaravati’s completion.
Enhance Project Monitoring
Use transparent frameworks and technology for projects like Polavaram.
Address Fiscal Deficit
Balanced revenue deficit grants and capital support aligned with FFC.
Consider Special Development Packages
To address backward areas like Rayalaseema.
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This chapter in the exam
Resource mobilization in Andhra Pradesh20 questions
Asked in 8 of 8 sittings since 2008
Most tested: Andhra Pradesh’s revenue sources, central transfers, and resource allocation/resource gap after bifurcation.
- 2025Explain the major sources of budgetary resources for Andhra Pradesh. What are the key challenges the state faces in mobilising adequate financial resources?
- 2023Briefly discuss the impact of bifurcation on the economy of Andhra Pradesh with respect to sectoral changes and resource gap. Provide a brief note on the steps taken by the Government of Andhra Pradesh to mobilize resources.
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Question from the official APPSC Group-I Mains 2020 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.