Andhra Pradesh   

Andhra Pradesh bags huge Central grant

Special Correspondent

Rs. 1,051.35-cr. for development of infrastructure in towns

HYDERABAD: Giving a fillip to infrastructure development works, the Central Government has sanctioned 44 projects, with an estimated Rs. 1,314.19 crore, to Andhra Pradesh under the Urban Infrastructure Development Scheme for Small and Medium Towns and released Rs. 304.87 crore as part of the scheme.

The entire Central share of Rs. 1,051.35 crore has been announced as grant, while the Government and the 31 urban local bodies, in which the project would be implemented, would share the balance equally.

The grant is against the Rs. 700 crore the State could secure as loan from HUDCO over the past 10 years involving an interest of nine per cent for taking up drinking water schemes.

Terming the allocation as a windfall, Chief Minister Y.S. Rajasekhara Reddy on Sunday said infrastructure, including amenities like drinking water, sewerage and roads, would be developed in two-tier towns. Directing the officials to release the State's share of Rs. 131.42 crore for the project, Dr. Reddy wanted them to create a special cell to monitor effective utilisation of Central funds.

Since the funds had been made available, the officials should initiate efforts to provide daily drinking water in the 31 municipalities.

Dr. Reddy asked Municipal Administration Minister Koneru Ranga Rao to convene a meeting of the Mayors, chairpersons and commissioners of all municipal corporations and municipalities on April 11 to apprise them of the Central sanctions for urban development.

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