An amount of Rs 1,803 crore was released on Wednesday, while Rs 500 crore was provided earlier as an ad-hoc grant, the Finance Ministry said in a statement.

The government has "decided to provide financial support of Rs 2,303 crore to Government of Andhra Pradesh to bridge the resource gap of the Financial Year 2014-15", it added.

Last year, Andhra Pradesh was bifurcated to create India's 29th state Telangana. Earlier this week, the Finance Ministry had said it had provided Rs 1,500 crore as a budgetary support to Andhra Pradesh for forming its new capital city.

This included Rs 1,000 crore for support to essential amenities for the new capital of Andhra Pradesh and another Rs 500 crore exclusively for construction of Raj Bhavan, State Secretariat, State Assembly and High Court.

The budgetary support was in consonance with Andhra Pradesh Reorganisation Act, 2014, under which the Government of India had agreed to provide special financial support for
essential facilities for the new Capital of Andhra Pradesh including construction of Raj Bhavan, State Secretariat, State Assembly and High Court, among others.

 

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