Andhra CM writes to Jaitley seeking grant via NABARD

Amaravati (Andhra Pradesh) [India], Jan 10 (ANI): Andhra Pradesh Chief Minister N Chandrababu Naidu wrote a letter to Union Finance Minister Arun Jaitley requesting that certain projects be funded in the form of "grant" by the Centre through the National Bank For Agricultural and Rural Development (NABARD), instead of loans from the external agencies.

Naidu suggested that a "special dispensation amount" be provided to the state for specified projects from the NABARD instead of loans from external agencies.

"It was announced that the special assistance measures for Andhra Pradesh will be given by way of special dispensation in funding of Externally Aided Projects(EAP) and the Central Government will provide Special Assistance Measure (SAM) to Government of Andhra Pradesh, which would make up for the additional Central share the State might have received during 2015-16 to 2019-20, if the funding of Centrally Sponsored Schemes (CSS) would have been shared at the ratio of 90:10 between the Centre and the State", the letter reads.

The letter further stated that the special assistance will be provided by way of repayment of loan and interest for the Externally Aided Projects (EAPs) signed and disbursed during 2015-2016 to 2019-20 by the state.

Hence, the Chief Minister requested that special assistance at 90:10 ratios for the Externally Aided Projects as being given to special category states may also be awarded to Andhra Pradesh.

"This should be applied to all the ongoing projects and projects to be signed till 2019-20", he added. (ANI)