Centre admits it has not released Backward district development grants to Telangana for three years

Centre on Monday admitted in the Lok Sabha that it has not released the annual grant of Rs 450 crore for three financial years

Hyderabad: The Centre on Monday admitted in the Lok Sabha that it has not released the annual grant of Rs 450 crore for three financial years totalling to Rs 1,350 crore, mandated under the Andhra Pradesh Reorganisation Act, 2014 for the development of backward areas in Telangana.

Replying to a question raised by BRS member Nama Nageshwara Rao, Minister of State for Finance Pankaj Chaudhary, said the Centre under Section 94(2) of the AP Reorganisation Act and recommendation of NITI Aayog had released Rs. 2,250 crore in five installments of Rs. 450 crore at the rate of Rs. 50 crore per district to the Telangana government for the development of 9 backward districts of the State.

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The Minister said Rs.450 crore annual grant was released to the State for five years from 2015-19 and 2020-21. The amount was however not released during the years 2019-20, 2021-22, 2022-23. The grant was released based on the recommendation of the NITI Aayog and submission of Utilization Certificate by the State government and subject to availability of resources with the union Government, he said.

Last year, Finance Minister T Harish Rao had written a letter to union Finance Minister Nirmala Sitharaman,urging her to release Rs 900 crore funds immediately towards the development of backward districts, but so far there is no response from her.

Adilabad, Nizamabad, Karimnagar, Warangal, Medak, Mahbubnagar, Ranga Reddy, Nalgonda and Khammam were declared as backward districts by the Centre.