Union Government announced 850 crore rupees

development package for Andhra Pradesh

05-FEB-2015
Who: 850 crore rupees development package for Andhra Pradesh
What: Announced by Union Government
When: 4 February 2015

Union Government on 4 February 2015 approved a development package and ad hoc support of
850 crore rupees for Andhra Pradesh.
The development package was provided for the development of backward areas and Rayalaseema
and North Coastal region of the State. Under Sections 46 (2) and 46(3) of the Andhra Pradesh
Reorganisation Act, 2014, Union government is committed to provide the development package.
Out of the total 850 crore rupees, 350 crore rupees will be provided for the development activities in
seven backward districts of the State and 500 crore rupees will be provided as an ad hoc support for
bridging the resource gap that might have arisen in the Union Budget 2014-15.
Besides this, the Union government also decided to provide tax sops to promote industrialization and
economic growth in both Andhra Pradesh and Telangana. These are:

The manufacturing industries set up in the backward region will be given 15 percent
additional depreciation on new plant and machinery in the first year of installation.

An additional investment allowance of 15 percent would be given to industries set up in the

backward regions.

The additional depreciation allowance and investment allowance will be provided without
insisting on an investment of above 25 crore rupees.