The government on Friday approved a further â€˜special assistanceâ€™ of Rs.1,000 crore to Andhra Pradesh during the current financial year.
According to the finance ministry, the assistance includes Rs.350 crore for the development of seven backward districts covering Rayalaseema and north coastal regions.
An additional Rs.350 crore has been provided to develop the new capital.
The assistance for development of the new capital will be used to build the complex housing the Raj Bhawan, high court, government secretariat, legislative assembly and council and other essential infrastructure.
As per the ministry, Rs.300 crore goes for the Polavaram Irrigation Project. A tax incentive has also been provided in the Finance Act, 2015.
Earlier, Rs.4,403 crore was released to Andhra Pradesh in 2014-15.
The ministry said the central government was required to make appropriate grants, benefits and incentives in the form of special assistance to the backward areas of the two states of Telangana and Andhra Pradesh.