The Andhra Pradesh government is in dire straits as the central government, which announced Rs 1,976 crore to the state, with an additional Rs 450 crore for Amaravati is yet to release the amount.
According to a report in the Deccan Chronicle, the finance ministry has asked the Capital Region Development Authority (CRDA), which is responsible for the construction of Amaravati to send the utilisation certificates, which it is yet to receive.
The report quotes a communication from the central government as saying, "Release of Rs 450 crore has also been approved as assistance for the capital city. However no utilisation certificate has been submitted for the funds of Rs 500 crore in 2014-15 and Rs 550 crore in 2015-16 released for construction of capital city."
"As part of its commitment to the people and compensate the financial impact arising out of the bifurcation of the state, the central government has decided to give Special Assistance of Rs 1,976.50 crore to Andhra Pradesh during 2016-17," the Finance Ministry had earlier said in a statement.
The amount includes Rs 1,176.50 for resource gap, Rs 350 crore for development of seven backward districts covering Rayalaseema & North Coastal region and Rs 450 crore as assistance for the capital city, the statement added.
The statement further said that with the current sanction of funds, the central government has so far provided central assistance of Rs 8,379.50 crore to Andhra Pradesh which includes Rs 4,403 crore released during 2014-15 and Rs 2,000 crore released during 2015-16 in terms of the provisions under the Andhra Pradesh Re-organisation Act, 2014.
It said that cumulatively from the enactment of the Re-organisation Act from June 2, 2014 till 2016-17, Rs 3,979.50 crore has been released to the successor state of Andhra Pradesh for bridging the resource gap for the financial year 2014-2015.