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Economic Survey 1974-75


The year 1974-75 commenced against a background of a substantial recovery made in the economy of Andhra Pradesh during the year 1973-74. However, inspite of a record level of foodgrains production during 1973-74, the State economy during 1974-75, was under some strain due to inflationary pressures observed in the country. Although the long dry spells in the early part of the kharif season in the current year had some effect on the overall kharif production still, with the encouraging Rabi prospects, it is now estimated that the overall foodgrains production in the State in the current year may be of the same order as in the previous year. In the industrial sector, there are encouraging trends with the easing of the power situation and a number of industries picking up production. Some selected indicators of the economy are given in Table-1.

State Income

The State Income (partially revised) estimates at constant (1960-61) prices increased to Rs.1,449.93 crores in 1973-74 from 1,270.81 crores in 1972-73, or an increase of the order of 14 per cent. In the current year, since agricultural production is likely to be atleast of the same order as in 1973-74 and since industrial production has been picking up, it is expected that the State Income will continue to register growth.


The Agricultural season 1974-75 started against a background of a record level of foodgrains production during 1973-74. The State received good pre-monsoon showers in the Month of May, 1974, particularly in Telangana and Rayalaseema regions, which helped the cultivators in taking up the preparatory tillage operations of Kharif dry crops. But the rainfall received during the month of June, 1974 was scanty, uneven and erratic. During the month of July also the South-West monsoon continued to be weak throughout the month. The monsoon was active during the first week of August 1974 and there were good rains throughout the State. However, from 10th August the rainfall was scanty and practically a prolonged dry spell upto the first week of the September 1974 was observed. Though the rainfall received during the month of September 1974 was surplus in the Coastal Andhra and Rayalaseema regions, it was deficient in all the districts of the Telangana region.

Considering the South-West Monsoon period as a whole, the rainfall received during the period from 1st June to end of September 1974 was 516.0 MM. for the State as a whole as against the normal rainfall of 593.4 MM.. The deficit in rainfall in the South-West monsoon period as a whole was 13 per cent for the State. The Telangana Region recorded a heavy deficit of 25 per cent and Coastal Andhra Region a marginal deficit of 3 per cent while Rayalaseema region recorded a surplus of 9 per cent. The monsoon was however very active throughout the State during the month of October 1974 and this period considerably in the revival of the standing dry crops and in taking up rabi crops.

According to preliminary estimates, the area under foodgrains during Khariff 1974-75 is estimated at 58.29 lakh hectares as against 63.56 lakh hectares during the corresponding season of 1973-74 which shows a decrease in area by about 8 per cent in the State. The total area under major cereals and millets, viz., Rice, Jowar, Bajra, Maize and Ragi during the current Kharif season is estimated to be 46.34 lakh hectares as against 49.19 lakh hectares as against 49.19 lakh hectares (actuals) during the previous year or a decrease in area of about 6 per cent. The production of Rice during the current Kharif season, according to the second forecast report, is estimated at 38.01 lakh tonnes as against 41.77 lakh tonnes during 1973-74 representing a decrease in production by 9 percent. The fall in production is due to decline in yield rates in Srikakulam, Kurnool and in most of the districts of Telangana region.

The production of the 5 major crops viz., Rice, Jowar, Bajra, Ragi and Maize in the State based on the preliminary results of crop cutting experiments works out to 52.50 lakh tonnes in the Kharif season of the current year as against 56.15 lakh tonnes during the year 1973-74 accounting for a decrease in production of about 7 per cent.

Rabi Prospects

The area and production of Rice in the State during the Rabi season of 1973-74 were 8.94 lakh hectares and 14.07 lakh tonnes respectively.

The transplantation of Rabi Paddy during 1974-75 is still in progress. In view of adequate supplies of water in all irrigation sources in the State except Minor Irrigation Sources in Srikakulam, Nellore, Chittoor, Nalgonda and Medak districts, the normal area under Rice is expected to be covered during the Rabi season 1974-75. Apart from this normal area an additional extent of about 3 lakh hectares is proposed to be brought under paddy of this additional area, the deficit in Rice production during Kharif season is expected to be made good during Rabi season.

Dry Crops

The showings of all Rabi dry crops during the current season were completed in all the districts in the State and the condition of the standing crops is reported to be generally satisfactory in all the districts except in Srikakulam, Nellore and Nalgonda districts.

With the generally good rabi prospects, the overall foodgrains production in the State during 1974-75 may be of the same order as that in 1973-74.

Industrial Production

After a serious dip in industrial production during 1973, signs of industrial revival are again visible during 1974.

The monthly average production of coal during 1974 has registered an increase of 10 per cent over that in 1973. Similarly, the production of Sugar, which registered a decline during 1973, revived in 1974. The increase in production of Sugar during 1974 was of the order of 11 per cent over 1973. The monthly average production of cotton yarn registered an increase of 14 per cent and that of cotton fabrics 13 per cent over 1973.

The production of Cement, which received a severe set back during 1973, partially recovered, registering a growth of 5 per cent during 1974 as compared to 1973. The monthly average production of paper has also increased by 5 per cent during 1974 as compared to 1973. The monthly average production of Chemical fertilizers has registered a marginal increase of 1 per cent during 1974 compared to 1973. The monthly average production of cigarettes has also registered a marginal growth of 1 per cent during 1974 over 1973.

The other industries that have registered marked recovery during 1974 are—Vanaspathi (70 per cent), Machine Tools (23 per cent), Rayon Fabrics (11 per cent), Chemical Industries-Oxygen (18 per cent) and D. Acetylene (15 per cent). However Asbestos Cement (-10 per cent) and Rayon yarn (-7 per cent) registered a decline in production.

The industrial recovery is mainly attributable to the easing of the power situation and improvement in the supply position of industrial raw materials.

Labour Situation

The number of labour disputes during the period April-December, 1974 was only 47 as against 82 in the full year 1973-74. However, the workers involved were 26,375 against 30,173 in 1973-74 while the man-days lost during April-December, 1974 were 3.34 lakhs against 1.71 lakhs in 1973-74.

Employment Situation

The number of placements made through the employment exchanges during the period April-December, 1974, was 19,460 against 30,613 in the full year 1973-74. The number of placements made during April-December 1974 in State Government sector was 8,188 followed by Quasi-Government sector with 7,300 placements, Central Government sector with 3,213 placements and Private Sector with 759 placements.

Wholesale Prices

The inflationary trends, which are observed throughout the country have affected the prices of major commodities in the State also. There was an increase in the wholesale prices of all foodgrain inspite of a good crop during 1973-74. The increase in wholesale prices of Rice I sort in December 1974 was 31.6 per cent over the corresponding price in December 1973 and the corresponding rise in prices of Rice II sort was 34.7 per cent. Among pulses, the wholesale prices of Redgram has almost doubled between December, 1973 to December, 1974. The wholesale prices of other pulses such as Green gram, Black gram, etc., increased only moderately by 13.5 to 28.7 per cent. Among oilseeds, Groundnut (pods) had registered an increase of 12.6 per cent whereas the other oilseeds have actually registered a decline. Among condiments, chillies (dry) registered an increase of 73.2 per cent. The wholesale price of sugar registered an increase of 19.8 per cent. However, the wholesale price of Tobacco declined by 14.6 per cent, during the same period.

Consumer price Index Numbers

The substantial increase in the wholesale prices was reflected in the retail prices and in the general consumer price indices. The average consumer price Index Number during April-December 1974 for Hyderabad Centre was 20.6 per cent. The increase in consumer prices in the State however, was generally of a lower order than in All India where the average Index of consumer prices for April-November 1974 went up by 28.7 per cent when compared to the average Index during the corresponding period of 1973.



The only originally approved by the planning Commission for the Annual Plan 1974-75 was Rs.127.39 crores comprising Central assistance of Rs.48.75 crores and State’s resources of Rs.78.64 crores. However in the vote-on-account Budget an outlay of Rs.128.39 crores was provided. The difference of Rs.1.00 crore represents the resources raised by surcharge on vehicles of the Road Transport Corporation, which was decided to be reinvested in the Road Transport Corporation itself. The Plan outlay has been further increased to Rs.132.73 crores in the final budget, due to unspent balances revalidated under special development schemes of Coastal Andhra, Rayalaseema and Telangana and also additional funds provided for certain schemes. Subsequently in the discussions held at new Delhi by the officials of the Union Ministry of Finance with the State Government officials on 30-8-1974, the State Plan outlay for 1974-75 has been indicated as Rs.137.78 crores. The difference between this plan and the plan provision in the final budget is Rs.5.05 crores (Rs.137.78 crores - 132.73 crores) and out of this Rs.1.75 crores is provided for Power Sector and Rs.3.30 crores for L.I.C loans of Rs.3.30 crores for Housing and Water Supply schemes include Rs.1.10 crores of direct loan for Housing Board and according to latest indication this will not be forthcoming. Therefore the final approved plan outlay for 1974-75 on the basis of reassessment of resources will be Rs.136.68 crores.

However, the revised Plan outlay for 1974-75 now provided comes to Rs.142.33 crores. The main reason for this increase in plan outlay is an additional amount of Rs.4.50 crores allocated for Nagarjunasagar Project. Besides this the State Government have also sanctioned additional funds of Rs.120.38 lakhs for clearing the rebate claims under Handlooms, Rs.30.00 lakhs for payment for compensation for lands acquired for the Industrial Development areas, Rs.40.00 lakhs for Gajuladinne Project and Rs.10.00 lakhs for investigation of Visakhapatnam Water Supply scheme and Jurala Project, Under the Prime Minister’s Five-Point Formula additional educational facilities were created in the Twin Cities during the year 1973-74. For continuance of these facilities during 1974-75 Rs.32.56 lakhs have been provided. An additional of Rs.22.27 lakhs has been provided for a number of other schemes. As against these additional allocations totaling to Rs.705.21 lakhs there were also savings under various Heads anticipated at Rs.140.50 lakhs. Thus the net increase in the plan outlay was Rs.564.71 lakhs raising the total plan outlay for 1974-74 to Rs.142.33 crores. Against this outlay, the expenditure incurred till the end of November 1974 (and in the case of some departments only till the end of September-October 1974) is Rs.66.54 crores. In a number of cases, release have to be made to various institutions, etc., and the working season starts from November onwards. It is, therefore, anticipated that there will be no significant shortfalls in the Annual Plan 1974-75.


The Planning Commission held discussions with the State officials at New Delhi on the 20th and 21st November 1974, to finalise the resources available for the Plan for 1975-76. In these discussions the resources available for the plan for 1975-76 have been estimated at Rs.131.36 crores. This includes Central assistance of Rs.48.75 crores which is the same as this year. However taking into account the requirement of funds for the Irrigation and Power Sectors and for essential programmes in other sectors, Draft Plan proposals for an outlay of Rs.189.84 crores were submitted to the Planning Commission. Discussions were held with the Planning Commission a official level on the 12th and 13th December 1974. Based on these discussions and pending finalisation of the plan it was decided to prepare the Plan for an outlay of Rs.153.68 crores for inclusion in the Budget. The Plan for 1975-76 has accordingly been prepared and included in the Budget. The statement below will indicate the major Head-wise details of the outlays for the Annual Plan 1974-75 and 1975-76.


Annual Plan Annual Plan

1974-75 1975-76

Major Head Budget Revised (Budget)

(2) (3) (4)

Agriculture and Allied 1,346.38 1259.17 1,206.00


Co-operation 257.50 257.50 215.00

Irrigation: 3,270.00 3765.00 3,800.00

Nagarjunasagar Project 500.00 950.00 1,000.00

Pochampad Project 1,450.00 1450.00 1,450.00

Tungabhadra Project 240.00 240.00 240.00

High level Canal State-II

Other Major & Medium 630.00 675.00 760.00

Irrigation projects.

Flood Control and Drainage 450.00 450.00 350.00

Power 4,808.87 4983.87 5,400.00

Industry and Minerals 470.00 620.38 453.00

Transport and Communications 988.90 988.90 1,786.00

Social and Community Services 2,120.35 2349.89 2,497.00

Economic Services 11.00 8.00 11.00

--------------------------------------- Total: 13,273.00 14,232.71 15,368.00 -----------------------------------------------------------

The Head of Development and Department-wise details of the above allocations for 1974-75 and 1975-76 are given in the Annexure.

Ten per cent of the original Plan outlay for 1974-75 of Rs.128.39 crores which works out to Rs.12.84 crores had been earmarked for schemes under various Heads of Development to be taken up in the Backward areas at Rs.2.57 crores for Coastal Andhra Rs.3.85 crores for Rayalaseema and Rs.6.42 crores for Telangana. A similar amount has been earmarked for the same purpose in the Plan for 1975-76 also.


The original provision for 1974-75 was Rs.481.00 lakhs. This has been reduced to Rs.373.43 lakhs due to savings anticipated under debenture participation schemes. The outlay provided for 1975-76 is Rs.402.00 lakhs comprising of Rs.55.00 lakhs to the Agricultural University, Rs.56.00 lakhs to the Director of Agriculture, Rs.140.00 lakhs for ordinary and special debenture participation schemes, Rs.5.00 lakhs for Marketing, Rs.12.00 lakhs to the Warehousing Corporation, Rs,100.00 lakhs for D.P.A.P., S.F.D.A. & M.F.A.L.D.A. Programmes and Rs.34.00 lakhs for continuance of Survey and Settlement staff in the agency areas. The physical targets and achievements for the year 1974-75 and the targets proposed for 1975-76 for 1975-76 for some of the important programmes under Agriculture are given below:



--------------------- 1975-76

Item Unit Targets Likely Targets


Food grains 000 tonnes 8,400.00 8,400.00 8,700.00

Sugar cane Do 12,200.00 12,200.00 12,700.00

Oil seeds Do 1,450.00 1,450.00 1,540.00

Tobacco Do 215.00 215.00 229.00

Cotton 000 bales 285.00 370.00 390.00

Jute and Mesta Do 330.00 330.00 355.00

Gross Cropped Area Lakh Hectares 136.00 136.00 138.00

Area Under H.Y 000 Hectares 2,147.00 2,417.00 2,586.00


Consumption of 000 tonnes 450.00 439.00 565.00


Fertilizers (total)

Minor Irrigation

The revised outlay for Minor Irrigation for 1974-75 was Rs.332.89 lakhs. This includes revalidated funds of Rs.56.59 lakhs under Special Telangana Development Schemes for P.W.D Minor Irrigation. The provision for other schemes therefore is Rs.276.30 lakhs. The provision made for 1975-76 is Rs.270.00 lakhs comprising of Rs.45.00 lakhs for Ground Water Development, Rs.210.00 lakhs for P.W.D. Minor Irrigation and Rs.15.00 lakhs for Irrigation the target for 1974-75 is stabilization of 24,000 acres and bringing new area under Irrigation for 38,000 acres. The target for 1975-76 is also same. The P.R.Minor Irrigation Schemes will bring in additional area under irrigation of 3,000 acres for 1974-75 and another 3,000 acres for 1975-76.

Soil Conversation

The provision for Soil Conservation for 1974-75 is Rs.45.10 lakhs and for 1975-76 it is Rs.40.00 lakhs. The additional of Rs.5.10 lakhs provided in 1974-75 was due to funds revalidated under special Rayalaseema Development Schemes.

Command Area Development

Provision in 1974-75 is Rs.175.00 lakhs and the same amount is provided for 1975-76 also.

Animal Husbandry

The provision for 1974-75 is Rs.52.37 lakhs including Rs.7.37 lakhs revalidated under the Special Development schemes of Rayalaseema and Telangana. The provision made for Animal Husbandry in the Plan for 1975-76 is Rs. 65.00 lakhs.

Dairy Development

The original provision in the Plan for 1974-75 was Rs.105.00 lakhs. This has been reduced to Rs.85.00 lakhs by diverting Rs.20.00 lakhs to the Fisheries Corporation. The reduced provision of85.00 lakhs has only been provided for 1975-76 also.


The original provision for 1974-75 was Rs.44.00 lakhs. This has been increased to Rs.66.00 lakhs by diverting Rs.20.00 lakhs from Dairy Development for Fisheries Corporation and also allotting additional funds of Rs.2.00 lakhs for intensive development to Fisheries in selected villages of Kolleru Lake Area. The provision made for 1975-76 is Rs.44.00 lakhs which was the original provision in 1974-75.


The original provision for 1974-75 was Rs.65.00 lakhs. This has been increased to Rs.69.38 lakhs by providing an additional amount of Rs.4.00 lakhs for survey of Forest and Bamboo resources by remote sensing technique and revalidation of Rs,0.38 lakh under special Telangana Development schemes. The provision made for 1975-76 is Rs.65.00 lakhs.

Community Development

The provision in the plan for 1974-75 is Rs.60.00 lakhs and the same amount is provided for 1975-76 also.


The provision for Cooperation in the plan for 1974-75 is Rs.257.50 lakhs inclusive of Rs.135.00 lakhs of borrowings from R.B.I., Rs.115.00 lakhs for other Co-operation schemes and Rs.7.50 lakhs revalidated under special Rayalaseema Development schemes. The provision made for 1975-76 is Rs.215.00 lakhs out of which Rs.100.00 lakhs is R.B.I. borrowings and the balance Rs.115.00 lakhs is for other Co-operation schemes.


Nagarjunasagar Project

In the original Plan for 1974-75 Rs.5.00 crores were provided for Nagarjunasagar Project. The Government of India have been addressed for additional assistance of Rs.10.00 crores for this Project in 1974-75. Pending sanction of additional assistance, Rs.4.50 crores extra have already been released bringing the total provision for the Project during 1974-75 to 9.50 crores. The provision made for 1975-76 is Rs.10.00 crores. During the year 1974-75 under Right Canal the works in the reach from M.57/0 to 66/3 and distributories in Blocks 11 (p)and 12 were completed by August 1974 and an additional Irrigation potential of 7,892 acres was created in these end of 1974-75 under Right Canal to 7.46 lakh acres. During the year 1975-76 the works in the reach from M.66/3 to 73/5 will be completed to the extent necessary for creation of additional Irrigation potential of 20,211 acres in Block 13 part bringing the cumulative Irrigation potential to 7.66 acres under the Right Canal. Under Left Canal during 1974-75 the works on Main Canal. Under Left Canal during 1974-75 the works on Main Canal upto M.85/2 including distributory system upto Block 15 have been completed and water has been let out for an extent of 26,867 acres. In addition to this an Irrigation potential of 10,000 acres under Lift Irrigation Schemes has been created. The cumulative Irrigation Schemes has been created. The cumulative Irrigation potential created by 1974-75 under Left Canal is 3.08 lakh acres in additional to 17,000 acres under Lift Irrigation. During 1975-76 works on Main Canal upto M.103 and in Blocks 16 to 19 will be kept in progress during the year. Besides this the committed works on Main Canal upto M.111, including the embankments to be done by field machinery Unit and the box culvert and Railway aqueduct on the 21st Main Branch Canal and the excavation of earth work in M.14 and 15 of the 21st Main Branch Canal will also be in progress during the year. Efforts will be made to under flow irrigation in block 17 and 18 and another 10,000 acres under Lift Irrigation potential under Left Canal to 3.16 lakh acres under flow Irrigation and 27,000 acres under Lift Irrigation.

Pochampad Project

Work on the Pochampad Project which has been accelerated under arrangements with I.D.A. is progressing briskly. The Plan provision for 1974-75 for the project is Rs.14.50 crores. The Main Canal excavation and masonary works have been completed upto M.51(KM.82) Branch Canals under Distributory 53 have been completed and under Distributory 83 are in progress. Almost all Distributories except for a small length have been completed upto KMs 68. Irrigation potential has been created for 1.16 lakh acres (cumulative) by July 1974. Work on the lining of the main Canal is expected to be started in February 1975. For the year 1975-76 a provision of Rs.14.50 crores has been made. It is programmed to create further Irrigation potential for 0.36 lakh acres by July 1975 (cumulative 1.52 lakh acres) by completing balance works on branches and field channels upto K.M. 82 covering Distributory 64. Other works would be kept in progress upto KM 116.

Major & Medium Irrigation

Under other Major & Medium Irrigation schemes including Drainage and Flood Control the provision made for 1974-75 is Rs.1365.00. This is inclusive of Rs.40.00 lakhs additional provided for Gajuladinne Project and Rs.10.00 lakhs for investigation of Visakhapatnam Water Supply Scheme and Jurala Project. Besides this, Rs.50.00 lakhs additional have since been provided to Vamsadhara Project bringing the total provision for this project during 1974-75 to Rs.129.40 lakhs. In the Annual Plan 1975-76 a sum of Rs.13.50 crores has been provided for Major and Medium Irrigation Schemes. The break-up of this allocation is Rs.2.40 crores for T.B.P.H.L.C. Stage-II, Rs.99.40 lakhs for Vamsadhara, Rs.298.90 lakhs for Godavari Barrage, Rs.99.89 lakhs for improvements to Nizamsagar Project, Rs.3.50 crores for Drainage & Flood Control, Rs.239.20 lakhs for other continuing Medium Irrigation Schemes and Rs.22.61 lakhs for Investigation and Research.


The original provision for Power sector in the Annual Plan 1974-75 was Rs.4808.87 lakhs, comprising of Rs.40.00 lakhs for the A.P. Power House at Balimela, Rs.11.00 crores for Srisailam Civil Works and the balance Rs.3,668.87 lakhs for the A.P.S.E.B. Works. This has been increased to Rs.4983.87 lakhs due to additional funds of 175.00 lakhs provided by the Government of India for Vijayawada Thermal Station and Upper Sileru Hydro Electric Scheme Stage-II. The provision made for Power Sector in the Plan for 1975-76 is Rs.54.00 crores as detailed below:



Rs. Lakhs

A.P. Power House at Balimela


Kothagudem Stage-III


Lower Sileru Hydro Electric Scheme


Srisailam H.E. Scheme Civil Works


Nagarjunasagar Hydro Electric Scheme


Kothagudem Stage-IV


Vijayawada Thermal Station


Transmission and Distribution


System improvement schemes


Rural Electrification




Total :


The Plan for 1974-75 envisages the commissioning of 220 MW generating capacity of Kothagudem Stage-III, continuing the tempo of work on the two major schemes of Lower Sileru and Srisailam Hydro Electric Schemes, starting civil works and ordering the generating equipment for Nagarjunasagar, and starting construction works on two thermal Projects Kothagudem Stage-IV and Vijayawada. Under the transmission scheme, the completion of Kothagudem-Hyderabad 220 KV line, and Humpi Gotty 220 KV Inter-state link was programmed while work would be in progress on Lower Sileru-Bommeru 220 KV line and Ennore-Nellore 220 KV Inter-State link. The first 110 MW set at Kothagudem Thermal Station was commissioned on 13-8-1974. Kothagudem-Hyderabad 220 KV line has been completed at 132 KV on 10-1-1975. Hampi-Gotty 220 KV line will be completed by March 1975.

During the year 1975-76, the first Unit of Lower Sileru Hydro Electric scheme is proposed to be commissioned by August 1975 adding 100 MW capacity to the Grid. The second and third machines will be under erection. Under Kothagudem Stage-IV, the supply and erection of 2 nos. 110MW turbo generators and boilers will be in progress. The Civil Works necessary at Nagarjunasagar Project will be completed and the EOT Craned erected in the Power House to start the assembly and erection of the 110 MW generating set. The preliminary civil works, Railway siding and works connected with cooling water system will be in progress at Vijayawada. Under Transmission scheme, the Lower Sileru-Bommur and Ennore-Nellore(Inter-State) 220KV lines will be completed. Work will be in progress on 220 KV receiving Stations at Hyderabad, Nellore and Bommur while the Gooty 220 K.V.S.S. will be commissioned. A number of 132 KV lines and receiving stations will be brought into beneficial use. The likely achievements for 1974-75 and the targets for 1975-76 are given below:


Likely Targets

achievements for 1974-75 1975-76

Additional installed Capacity(MW) 220 100

Energy generated (Million KWH) 3,190 4,385

Energy sales (Million KWH) 2,635 3,140

Additional Villages electrified (nos). 380 350

Additional Pumpsets energised (nos) 11,000 6,000
Industry and Minerals

The original provision in the Annual Plan for 1974-75 for Industries was Rs.470.00 lakhs. This has been increased to Rs.620.38 lakhs due to additional funds of Rs.120.38 lakhs provided to clear rebate claims under Handlooms and Rs.30.00 lakhs provided towards compensation for the lands acquired for Industrial Development areas. The provision for 1975-76 is Rs.453.00 lakhs, out of which Rs.304.00 lakhs are for Large Industries, Rs.119.00 lakhs for village and Small Industries including Handlooms and Rs.30.00 lakhs for Mineral Development. The Major allotment under Large Industries is Rs.100.00 lakhs to the A.P.I.D.C. and Rs. 100.00 lakhs for contribution to the Singareni Collieries.

Transport & Communications

The provision for Transport and Communications in the Plan for 1974-75 is Rs.988.90 lakhs. The break-up of this is Rs.10.00 lakhs for Minor Ports, Rs.203.90 lakhs for P.W.D.Roads, Rs.105.00 lakhs for P.R.Roads Rs.665.00 lakhs for A.P.State Road Transport Corporation and Rs.5.00 lakhs for Tourism. The provision made for 1975-76 is Rs.1786.00 lakhs. The Major allotment out of this provision is Rs.1521.00 lakhs fir The A.P.S.R.T.C. This includes Rs.998.00 lakhs internal resources on Motor Vehicles proposed to be reinvested in the Corporation and Rs.300.00 lakhs for passenger amenities. Out of the balance provision of Rs.265.00 lakhs under this Head, Rs.10.00 lakhs are for Minor Ports, Rs.200.00 lakhs for P.W.D. Roads, Rs.50.00 lakhs for P.R.Roads Roads and Rs.5.00 lakhs for Tourism.

Social and Community Services

The original provision in the Annual Plan 1974-75 for Social and Community Services was Rs.2120.35 lakhs. This has been increased to Rs.2349.89 lakhs mainly due to additional L.I.C loans of Rs.1.96 crores anticipated for Water Supply Schemes of Municipalities and additional funds of Rs.32.56 lakhs provided for continuance of additional educational facilities created in the Twin Cities during 1973-74 under the Prime Minister’s Five Point Formula. The provision made in the Plan for 1975-76 for Social and Community Services is Rs.2497.00 lakhs. The increase over the current year’s revised Plan is only in the case of Water Supply and Housing. Under Water Supply against a provision of Rs.845.56 lakhs in the revised Plan for 1974-75, the provision made in the Plan for 1975-76 is Rs.145.00 lakhs for Water Supply Schemes of the Municipalities and Rs.120.00 lakhs for Protected Water Supply Schemes in Rural areas. Besides these funds, the provisions made for 1975-76 are Rs.28.00 lakhs state’s share for Water Supply Scheme Stage-II, Rs.40.00 lakhs for Mehadrigedda Water Supply Scheme and Rs.200.00 lakhs for Rural Water Supply Schemes. Under Housing the provision made in 1975-76 is Rs.515.00 lakhs against a provision of Rs.365.00 lakhs in the current year. The increase in outlay under this Head is entirely due to additional funds anticipated from L.I.C. The allocations for other sectors under Social and Community Services in the Plan for 1975-76 are more or less same as in the current year’s plan.

Economic Services

Only two items i.e., Evaluation and Planning Machinery and Statistics come under this Head. The provision made in the Plan for 1975-76 is Rs.6.00 lakhs for Evaluation and Planning Machinery and Rs.5.00 lakhs for Statistics as in the current year’s plan.

Special assistance for accelerated development of Backward areas under the Six-point Formula.

The Government of India have agreed to provide special assistance of Rs.90.00 crores during the Fifth Plan period at the rate of Rs.18.00 crores per year for the accelerated development of the backward areas in the State. This amount is to be utilised among the three regions of Telangana, Rayalaseema and Coastal Andhra in the ratio of 5:3:2. The State Government decided to provide out of the above allocation, 75 per cent for district programmes and 25 percent for regional schemes of Higher Education and Large Scale Industries. The proposals have accordingly been formulated by the three Planning and Development Committees and sent to the Government of India with the recommendations of the State Planning Board and the State Government. The sector-wise details of the proposals submitted to the Government of India for Rs.18.00 crores for 1974-75 are given below.

In addition to the above, Government of India indicated an assistance of Rs.1.00 crore for Development of Twin Cities during 1974-75. Proposals were sent by the State Government to the Government of India who have since accepted them.

A sum of Rs.18.00 crores for the backward areas and Rs.1.00 crores for development of Twin Cities have been provided in the revised estimate 1974-75 based on the proposals approved by the State Planning Board mentioned above. In the Budget estimates for 1975-76 also provision has been made under different Heads following the sector-wise break-up of the 1974-75 proposals. These are intended to be tentative allocations and will be modified in accordance with the proposals that would be finalised in the year 1975.76.


57. Our Government accords highest priority for the development of power sector in the State. The present installed capacity in the state is 14,047 MW. All the existing gas based power projects have become fully operational with the commencement of supply of gas from the D6 block of KG basin. The stage 4 unit of VTPS has also been operational recently. With this, APGENCO’s installed capacity has reached 7587.9 MW, accounting for 40% of total energy requirement of the State.

58. Keeping in view, the future power demand of the State, the Government has allowed the APGENCO to take up massive capacity addition programme of adding 17,558 MW. Of this APGENCO is already in the process of implementing 10 projects with a total installed capacity of 3946 MW. Besides, 10 more projects with a capacity of 13612 MW are also planned. APGENCO has bagged the “Indian Power Award-2009” instituted by Council of Power Utilities for overall utility performance in thermal generation.

59. High Voltage Distribution System has also been implemented in 5.85 lakh Agricultural services with a total expenditure of Rs.1,838 crores for reduction of losses and improvement of voltage profile.

60. The State Government is implementing Backward Regions Grant Fund (BRGF) with Central Government assistance. The main objective of the programme is to correct regional imbalances in development by providing funds for bridging critical gaps in local infrastructure. This programme is being implemented in thirteen backward districts in the State. An amount of Rs.383 crores is allocated for this scheme in the 2010-11 budget.


61. Our Government accords highest priority to provide pure and sufficient drinking water to people residing in rural areas of the State. There are 72147 habitations, of which 51222 habitations have achieved full coverage. 16316 habitations are partially covered, 3571 habitations are uncovered while the balance 1038 habitations still have water quality problems.

62. During the year 2009-10, 13,375 works were taken up with a cost of Rs.3019.75 crores to cover 9,513 habitations covering fluoride affected habitations in rural areas and schools, with safe drinking water facilities. Out of the targeted coverage of 8500 habitations, works in 6259 habitations have been taken up with an estimate of Rs.414.00 crores.

63. The State Government is implementing the first year of the National Rural Drinking Water Programme (NRDWP), a flagship programme introduced by Government of India with an aim to provide adequate drinking water to every person in rural areas on a sustainable basis.

64. The State Government have recently concluded a loan agreement with the World Bank to take up CPWS, PWS, solid and liquid waste management schemes in 6 Districts at a cost of Rs.864 crores. An amount of Rs.595 crores is allocated for Rural Water Supply in 2010-11 budget.


65. Many policy decisions and initiatives have been taken to facilitate holistic growth of urban areas. The Government has taken initiatives to access funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The State has so far been sanctioned 268 projects with an estimated cost of Rs.12,525.45 crores. “Andhra Pradesh Municipal Development Project” is being launched with an objective to improve the civic infrastructure, particularly roads, drainage and water supply in the urban areas of the state at a projected cost of Rs.1670 crores with World Bank loan.

66. Our Government has completed the P.V. Narasimha Rao Expressway project with a cost of Rs.600 crores to connect the new International Airport with Hyderabad. Works are afoot for construction of Outer Ring Road (ORR) which is estimated to cost about Rs.6786 Crores.

67. Our Government has been giving top priority to provide protected drinking water in all urban local bodies by strengthening the existing infrastructure and service levels. During last five years, 140 water supply schemes with an estimated cost of Rs.3320.21 crores have been taken up so as to achieve the per capita water supply as per norms in urban areas by 2010-11. The Government is also committed to bring in the Godavari waters to meet current and future demands of Greater Hyderabad.

68. Our Government, besides planning infrastructure improvement in cities and towns has worked towards making them inclusive and pro-poor. Under Indira Kranti Patham - Urban, urban poor families are being organized into 1.80 Lakh self-help group in slums and were provided over Rs.2000 crores bank credit in the last two years to help them achieve better quality of life and to come out of poverty.

69. Due to the growing number of vehicles and migration from surrounding rural areas, Vijayawada and Visakhapatnam Cities are likely to face congestion if pro active measures are not taken quickly. Therefore, Government have decided to implement Bus Rapid Transit System (BRTS) under JNNURM in Vijayawada and Visakhapatnam Cities. The cost of providing required infrastructure for BRTS in Vijayawada and Visakhapatnam cities has been estimated at Rs.152.64 crores and Rs.452.93 crores respectively. An amount of Rs.4313 crores is allocated for urban development in Budget Estimates 2010-11.

70. Our Government believes that, the employees are the pillars of the administration. The State Government have considered the recommendations of Ninth Pay Revision Commission and after due deliberations, allowed a fitment benefit of 39% to all State Government employees and pensioners.

71. The resources in the proposed budget have been estimated realistically. However, since the recommendations of the Thirteenth Finance Commission regarding devolution of central taxes and fiscal deficit limits to be observed by the State Governments are yet to be announced by the Government of India, those inputs could not be incorporated into the proposed budget as of now. Consequently the State Government has restricted the fiscal deficit to 3% of GSDP for the year 2010-11 in accordance with the provisions of Andhra Pradesh Fiscal Responsibility and Budget Management Act, 2005.


72. The final accounts of 2008-09, show a revenue surplus of Rs.1004 crores. The fiscal deficit during 2008-09 was Rs.12406 crores which is 3.34% of GSDP and well below the limit of 3.5% of GSDP, as allowed by the Government of India for the year 2008-09.

ACCOUNTS 2008-09

73. The final accounts of 2008-09, show a revenue surplus of Rs.1004 crores. The fiscal deficit during 2008-09 was Rs.12406 crores which is 3.34% of GSDP and well below the limit of 3.5% of GSDP, as allowed by the Government of India for the year 2008-09.


74. Transactions as per the revised estimates of 2009-10 indicate a revenue surplus of Rs.2942 crores against the budgeted revenue surplus of Rs.2406 crores. The fiscal deficit is estimated at Rs.14282 crores which would be 3.60% of GSDP as against the limit of 4% of GSDP allowed by Government of India for the year 2009-10.


75. The Estimated Revenue for 2010-11 is Rs.113675 crores out of which State share in revenue is Rs.62702 crores, State share in central taxes is taken at Rs.14505 crores and central grants at Rs.13441 crores. Expected capital Receipts for 2010-11 is Rs.23027 crores.

76. For the financial year 2010-11, an expenditure of Rs.113660 crores is proposed out of which Rs.73347 crores is under non-plan and Rs.40313 crores under Plan. It is estimated that the revenue surplus would be Rs.3548 crores. The fiscal deficit is estimated to be Rs.12983 crores, which would be 2.97 percent of GSDP.

77. Sir, with these words, I now commend the Budget to the House for approval.


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