Record funds likely for railway projects in Andhra Pradesh
The Railways made a study and came to the conclusion that a new railway zone in AP will not be viable.
Hyderabad: Both new and ongoing railway projects in AP will get funds at a record high level in the coming financial year 2016-17. The Centre has communicated to the state government that, in the up-coming Railway Budget, it would allot Rs 540 crore for new and ongoing railway projects.
The Centre has also directed the state to make a provision of an equal amount — Rs 540 crore — in the coming state Budget exclusively for railway projects. In other words, the expenditure on railway projects will be shared by the Centre and state governments on a 50-50 basis.
It is also imperative that, to get the Rs 540 crore from the Centre, a provision for an equal amount from the state is made in the AP Budget.
The state government has decided to provide Rs 200 crore in addition to the Rs 540 crore towards land acquisition for railway projects. The total would work out to Rs 1,280 crore.
A senior official said that the united AP itself never got more than Rs 300 crore for railway projects. Now, AP consists of only 13 districts and as high as Rs 1,280 crore is available for railway projects.
Meanwhile, the state department dealing with railway affairs has sent a proposal to finance department seeking to make a provision of Rs 740 crore in the Budget exclusively for Railway projects.
When finance officials expressed some doubts as regards allotment of Rs 740 crore for railway projects, chief secretary S.P. Tucker intervened and recommended that this be done.
However, it is learnt that the Centre might not agree to create a new railway zone for AP as was requested by the state. The Railways made a study and came to the conclusion that a new railway zone in AP will not be viable.
AP to go for public borrowings
The AP government wo-uld go for public borrowings of Rs 1,000 crore on February 23. Including this in the current financial year, the state government’s public borrowings will touch a high of Rs 15,040 crore.
The Centre gave its nod to the state for the borrowing last month. The state says it has a facility to borrow Rs 3,200 crore this financial year, whi-ch will end over a month. Sources said the Centre may, however, not give its permission for further borrowings this financial year.
Meanwhile, AP is expecting more funds from the Centre in March. The Centre has released '2,303 crore the previous financial year against AP’s plea for Rs 16,079. The state is requesting the Centre to release the outstanding due of about Rs 13,000 crore.