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GOVERNMENT of ANDHRA PRADESH
FINANCE DEPARTMENT
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PREVIOUS ECONOMIC TRENDS 1977-78

 
Economic Survey 1977-78

Introduction

The year 1977-78 commenced against the backdrop of mixed gains recorded during the year 1976-77. In 1976-77, the industrial production showed an encouraging rate of growth of 10.6 per cent, but the agricultural production showed a substantial decline due to the drought conditions and the three cyclones that hit parts of the State during November, 1976, and the consequent breach to the Dowleswaram anicut and damage to the standing crops, especially paddy. As a result, the total production of foodgrain in 1976-77 declined to about 74.79 lakh tonnes against 94.28 also started with the monsoon being inactive over large parts of Telangana and upland taluks of Coastal districts in the early part of the season and subsequent failure of the monsoon in September, 1977. In November, 1977, the Coastal districts experienced a severe cyclone and tidal which caused heavy loss of human and animal life and loss of property and crops. However, latest estimates of production in the different sectors of the State economy indicate that the overall performance of the economy may be better than that during 1976-77. The production of foodgrains in the State during 1977-78 is excepted to be higher than the low level of 74.79 lakh tonnes in 1976-77 but may be somewhat lower than the level of 94.28 lakh tonnes obtained in 1975-76. This higher level of production programmes. On the industrial front, the index number of industrial production showed a rise of 4.5 per cent over that in 1976. There was also marked improvement in the installed capacity of electricity in the State. The installed capacity which was 1117.9 M.W. at the end of 1976-77 has now come upto 1563 M.W. and will further go upto 1678 M.W. and will further go upto 1678 M.W. by end of March 1978. The number of placements effected through employment exchanges in 1977, also recorded a small increase over the corresponding placements in the previous year.

However, some pressure on prices was witnessed during the year under review. The price levels showed that the average annual wholesale price index of agricultural commodities in the State in 1977 was 11.7 per cent higher as compared to the position a year ago.

State Income

The estimates of State Income at constant prices would reveal the real growth in the goods and services produced within the State, free from the effects of the price changes. The State Income of Andhra Pradesh at (1960-61) constant prices increased from Rs.1,507 crores in 1973-74 to Rs.1,566 crores in 1974-75 or an increase by 3.9 per cent over 1973-74. In the succeeding year i.e.,1975-76, this increased further to Rs.1,601 crores or an increase by 2.3 per cent. During the year 1976-77, the State Income at constand prices, however, declined to Rs.1,499 crores or a decline by 6.4 per cent. An analysis of the State Income at constant prices derived from primary, secondary and teritary sectors reveals that the income from the primary sectors reveals that the income from the primary sector covering agriculture, animal husbandry, forestry and logging, fishing and mining and quarrying was responsible for this decline. The income from this sector which was Rs.814 crores in 1975-76 declined to Rs.676 crores in 1976-77 on account of the adverse seasonal conditions in the year which affected the Agricultural production. On the other hand, there was notable improvement in the income derived from the other two sectors. Thus, in respect of secondary sector covering manufacturing, construction, electricity, gas and water supply, there was a steady increase in the income from year to year. The income from this sector increased from Rs.228 crores in 1973-74 to Rs.259 crores in 1974-75, Rs.285 crores in 1975-76 and to Rs.310 crores in 1976-77. Similar trend was observed in the case of teritary sector covering transport and communications, trade, real estate and community and personal services. The income from this sector increased from Rs.456 crores in 1973-74 to Rs.479 crores in 1974-75, Rs.502 crores in 1975-76 and to Rs.513 crores in 1976-77.

The per-capita income at constant prices, which was Rs.328 in 1973-74, increased to Rs.333 during the year 1974-75 and 1975-76. This declined to Rs.305 in 1976-77. In the current year i.e., 1977-78, the State Income of Andhra Pradesh is expected to show an increase compared to that in the preceding year inspite of the adverse seasonal conditions and the severe cyclone experienced by some parts of the State during the year.


Agriculture

The State made a significant breakthrough in agricultural production during 1973-74 when the total production of foodgrains reached the high level of 86.70 lakh tonnes as against 67.08 lakh tonnes in 1972-73. In the succeeding two years, this upsurge in foodgrains production was kept up with a production of 90.86 lakh tonnes in 1974-75 and 94.28 lakh tonnes in 1975-76 was an all time high and this was achieved despite the decline in the yields of principal crops viz., Jowar and Rice in some of the districts due to the heavy rains in October,1975. Likewise the production of rice reached a record of 64.51 lakh tonnes in 1975-76 against 57.01 lakh tonnes in 1974-75. During 1976-77, the monsoon played truant and the State experienced erratic seasonal conditions. In June 1976, the South-west monsoon arrived more or less intime. But, suddently it became inactive for a period of three weeks due to which several districts experienced large deficit in rainfall, resulting in considerable delay in sowing of early kharif crops. Again, in the month of November, 1976, the delta districts of Andhra Pradesh and Prakasam and Nellore districts and parts of Chittoor and Cuddapah districts experienced severe cyclones due to which there was extensive damage to the standing crops. The breach to the Dowleswaram Anicut also affected substantially sowings of Paddy in the Rabi season in East and West Godavari districts. As a result the foodgrains production declined to 74.79 lakh tonnes in 1976-77.

1977-78

During the year 1977-78, the South-West Monsoon had set in the first week of June but continued to be somewhat weak over several areas in the State upto the middle of July, 1977. However, the monsoon revived towards the end of July, 1977 and became active especially in the Telangana region, as a result of which most of the Telangana districts received good amount of rainfall. In August,1977,almost all the districts, except Warangal, received normal to near normal rainfall.

The monsoon failed in September 1977 throughout the State except in Srikakulam. Due to the continuous dry spell during September,1977, most of the standing dry crops suffered heavy damage and most of the minor irrigation sources did not receive any water and the sources having meagre supplies of water went dry. Consequently, the paddy crop was also hit by the long dry spell. The long dry spell during the month of September,1977 affected the standing kharif crops in the upland taluks of Coastal Andhra districts, and most of the Telangana districts. In Kurnool district also, the long dry spell affected the standing groundnut crop adversely and delayed the transplantation of tobacco.

During the month of October, 1977 the North-East Monsoon had set in intime. These rains in October 1977 helped the standing crops in Rayalaseema districts and in Nellore, Prakasam and Guntur districts.

There was a severe cyclone storm accompanied by tidal waves which caused unprecedented loss of human life, property, crops, livestock and communications etc. Divi and Bandar taluks of Krishna district were badly affected by the tidal waves. As a result of this cyclone, five of the Coastal districts, viz., Krishna, Guntur, Prakasam, West Godavari and East Godavari were severely affected while Srikakulam, Visakhapatnam, Nellore and Khammam districts were partially affected. The standing crops of Paddy, Sugarcane, Banana, Betal-leaves, Tobacco, Cotton, Chilies and Areca-nuts were badly damaged.


RABI Prospects

In order to compensate the loss in Kharif production due to cyclone and prolonged drought in September,1977, Government have localised large areas additionally for second crop paddy under Godavari and Krishna delta systems. Water has been provided to about five lakh hectares in the districts of East Godavari, West Godavari, Krishna and Guntur under rabi paddy as against the normal area of 3.00 lakh hectares. Massive assistance programmes to the agriculturists has been taken up not only to rejuvenate the affected kharif crops but also for raising second crop paddy and other rabi crops in the cyclone affected districts through supply of short-term loans and inputs like fertilizers, seeds and pesticides. Subsidies at 33.3 per cent to marginal farmers and 25.0 per cent to small farmers were given. The excessive rains received in November,1977, have also improved the rabi prospects of dry crops which were gloomy due to the prolonged dry spells in SEptember, 1977 and October, 1977. As a result of these, it is expected that the loss in production in Kharif season will be compensated to some extent by the additional production in rabi season. The latest estimates of crop production would indicate that the overall foodgrains production in the current year will be higher than that in 1976-77 though they may still be lower than the level reached in 1975-76.


Industrial Production

The industrial activity in the State which revived significantly in 1974 showed buoyancy in the last three years. The easy availability of raw materials and power and improved transport facilities contributed to these gains in the industrial sector.

The index numbers of industrial production (adjusted for seasonality) with 1970 as base revealed more than 11 per cent increase each during 1975 and 1976. During 1977, there was a further increase of 4.5 per cent in the index when compared to that in the preceding year. Out of the 17 industry groups for which index numbers are being compiled, there was increase in the case of 7 industry groups which ranged between 3.7 per cent to 21.4 per cent. This was however, partly offset by a decline in the index numbers in respect of 10 groups ranging between 0.7 per cent to 38.6 per cetn.

Among the 7 industry groups which recorded increase in the index in 1977 over 1976, 5 groups showed an increase of more than 10 per cent. They are Chemical and Chemical Products (21.4 per cent), Paper & Paper products (12.4 per cent) and Miscellaneous Manufacturing industries (10.1 per cent). In the case of the other two groups viz., Petroleum products and Electricity, the increase was 9.0 per cent and 3.7 per cent respectively.

Among the 10 groups which showed decline in the index number in 1977 compared to the year 1976, the maximum decline was recorded in the case of Leather & Leather products (38.6 per cent). The percentage decline was 16.5 in respect of Machinery except Electrical Machinery, 10.7 in the case of Textiles 10.6 in respect of metal products except machinery and transport and 9.8 in respect of Basic Metal products. In the case of the other five groups viz., Food Beverages, Tobacco & Tobacco products, Non metallic mineral products and Transport equipment, the percentage decline varied between 0.7 to 3.0.

Considering the quantum of industrial production in the State during the year 1977, there was increase in the production in respect of 25 out of 43 selected industries compared to the production in 1976. The maximum percentage increase of 58.0 was noticed in the case of Glass followed by 41.4 in respect of Bakery products and 27.5 in the case of Detonators. The percentage increase was 10 to 20 in respect of Coal, Conventional Coffee packed, Cotton fabrics, Rayon yarn, Rayon fabrics, Paper, Diesel Engines, Refrigrators, Dry cells/Dry battery cells Heavy electricals and House Service Meters. However, there was decline in respect of 18 industries. The maximum decline of 55.3 per cent was noticed in respect of Water coolers followed by 30.7 per cent in respect of M.S.Rounds, Bars etc. The other industries which recorded more than 10 per cent decline were Sugar, Tanning, D.Acetylene, Ferro Alloys, Machine Tools and Motor Cycles.

Labour Situation

There was deterioration in the labour situation during the year 1977. The number of workers involved in labour disputes were 50,400 in 1977 as against 15853 in 1976 and the number of mandays lost was 5.48 lakhs as against 1.02 lakhs.

Employment Situation

There was improvement in the employment situation during the year 1977. The total placements effected through Employment Exchanges in 1977 were 51,702 as against 50,539 in 1976 or an increase was accounted by better placements by agencies viz., Central Government, State Government and Quasi Government bodies.

Price Situation

The inflationary trends which gripped the economy throughout the country in 1973 and 1974 were reversed in the later half of 1975. The downward trend in the prices continued till the early part of 1976. Subsequently, however the prices showed an upward trend but still were at a lower than the peak reached in 1975.

Wholesale Prices

The index numbers of wholesale prices of agricultural commodities in Andhra Pradesh with 1970-71 as base reached the peak level of 186.8 in June, 1975. Subsequently, the index steadily decreased till March, 1976 to 140.6 or a decrease by 24.7 per cent. From April, 1976, the index of wholesale prices of agricultural commodities showed an upward trend and by December, 1976, stood at 171.2. In the year 1977, the index number of wholesale prices of agricultural commodities ranged between 167.2 to 178.0, lower than the peak of 186.8 reached in June, 1975.

The annual average index of 1976 was 154.9 against the corresponding average of 178.3 in 1975. Thus the annual average index of wholesale prices of agricultural commodities in the State during 1976 showed a decline of 13.1 per cent compared to the average in 1975. The average index of wholesale prices of agricultural commodities in 1977 was 173.0 or an increase by 11.7 per cent compared to the index number of wholesale prices of food articles in All-India with base 1970-71=100. The annual average during 1977 increased by 12.2. per cent over 1976.

Considering group-wise, the average index of wholesale prices of agricultural commodities in Andhra pradesh in 1977 was higher than the respective group index in 1976 in respect of all the groups except Sugarcane (Gur). The percentage increase was 45.2 in respect of vegetables 42.9 in the case of oilseeds and 41.2 in the case of pulses. It was 22.7 per cent, 16.6 per cent, 11.8 per cent, 6.1 per cent and 5.4 per cent in the case of Condiments and speices, Drugs and Narcotics, Fibres, Cereals and Fruits respectively. The decline in respect of Sugarcane (Gur) was 14.3 per cent.

Consumer Prices

The above trends in the wholesale prices were reflected in the consumer prices. The annual average consumer index numbers for industrial working class at 8 selected centres in the State revealed that the average index during 1976 was lower than that in 1975. The simple average of the Consumer Price Index Numbers for these 8 centres, with base 1960=100, stood at 290 in 1976 as against 315 in 1975 showing a decline of 7.9 per cent. In the year 1977, the simpel average of Consumer Price Index Numbers of these 8 centres worked out to 317 or an increase by 9.3 per cent over 1976. It will be observed that these trends were comparable to the trends in the All India Consumer Price Index Number for industrial working class. The All-India Consumer Price Index Number recorded a decline of 7.8 per cent in 1976 over 1975 and an increase of 8.4 per cent in 1977 over 1976.

An analysis of monthly index numbers would reveal that the Consumer Price Index Numbers for the industrial working class declined till March, 1976 both in the State as well as in All-India and thereafter showed a rising trend.

Annual Plans 1977-78

For the year 1977-78, the Planning Commission approved a Plan of Rs.365.75 crores. In the vote on Account budget, the outlay on the Annual Plan for 1977-78 was Rs.365.75 crores compared to Rs.290.73 crores in 1976-77. This outlay has further been stepped up to Rs.380.38 crores so as to increase the allocation for the core sectors of Power and Irrigation on the one hand and for programmes for the Weaker Sections on the other. The major increase are by way of a further allocation of Rs.5.00 crores for Rural Electrification, Rs.4.00 crores for Medium Irrigation, Rs.1.00 crore for Andhra Pradesh State construction Corporation and Rs.2.90 crores for schemes to the Welfare of Scheduled Castes, Scheduled Tribes and Backward Classes, Women Welfare and other Weaker Sections of the population. In the final Budget presented in June, 1977, the outlay on the Annual Plan has been indicated at Rs.380.38 crores. Subsequently, during the course of implementation of the Plan, it has become necessary to increase the outlay still further in respect of certain sectors. The outlay for Somasila has been increased by Rs.1.00 crore. Under Handlooms, an allocation of Rs.1.10 crores has been made towards payment of subsidy on Handlooms Cloth as well as Rebate. Similarly an additional allotment of the order of Rs.55.00 lakhs has been made for under taking dredging operations in Kakinada Port. Some marginal increase have also been made under other Heads of Developments. Taking all these changes into account, the revised outlay for 1977-78 is Rs.Rs.384.12 crores. It is hoped that this plan effort will not be too much affected by the disastrous cyclone in the coastal districts in November '77 for meeting which the Government of India has offered advance Plan assistance.

Annual Plan 1978-79


Keeping in view the guidelines sent by the Planning Commission for the Annual Plan for 1978-79 and having regard to the envitable commitments under core sectors of development such as Major and Medium Irrigation, Power and Agricultural programmes, a plan of Rs.455.35 crores was prepared for the next year 1978-79.

After the Annual Plan was discussed by the Chief Minister with the Deputy Chairman and Members of the Planning Commission on 2 nd February 1978, the Planning Commission finally approved a Plan outlay of Rs.449 crores. This amount is now being provided in the Budget. The statement below indicates the Head of Development wise outlays in the Annual Plan for 1978-79.

The Head of Development and Department-wise break up to the above allocations in 1977-78 and 1978-79 are given in the Annexure.

An amount of Rs.12.84 crores will be earmarked for identified backward areas in the State in the Plan for 1978-79 as was done in the previous years.

Agriculture

The provision for Agriculture in the Budget as well as in Revised Estimates for 1977-78 is Rs.690.00 lakhs. Against this the outlay provided for 1978-79 is Rs.1,114.00 lakhs comprising Rs.110.00 lakhs for Agricultural University, Rs.136.00 lakhs to the Director of Agriculture, Rs.7.00 lakhs to the Director of Marketing, Rs.10.00 lakhs to the Andhra Pradesh State Warehousing Corporation, Rs.826.00 lakhs to the D.P.A.P. and Rs.25.00 lakhs to the S.F.D.A. and M.F.A.L.D.A.

In 1976-77 agricultural production showed substantial decline due to the drought conditions that prevailed in the early part of the Agricultural season and three cyclones that hit parts of the State during November, 1976, and the consequent breach to the Dowleshwaram Anicut and damage to the Standing crops, especially paddy, As a result, the total production of foodgrains in 1976-77 has declined to about 74.79 lakh tonnes against 94.28 lakh tonnes, during 1975-76. The agricultural season 1977-78 also started with the monsoon being inactive over large parts of Telangana and upland taluks of Coastal Andhra Districts in the early part of the season and subsequent failure of the monsoon in September, 1977. In November, 1977 however the Coastal Districts experienced a severe cyclone and tidal waves which caused heavy loss of human and animal life and loss of property and crops.

However despite this, the production of food-grains in the State during 1977-78 is expected to record a rise from the low level of 74.79 lakh tonnes in 1976-77, partly due to intensive Rabi production programmes, though it may be somewhat lower than the record level in 1975-76.

Minor Irrigation

The provision for Minor Irrigation in Budget Estimates and Revised stimates 1977-78 is Rs.863.00 lakhs and Rs.898.00 lakhs respectively. The provision made in 1978-79 is Rs.963.00 lakhs. For surface Water schemes a provision of Rs.703.00 lakhs has been made, comprising Rs.688.00 lakhs for Chief Engineer (Minor Irrigation) and Rs. 15.00 lakhs for Chief Engineer (Panchayat Raj).

As the Lift Irrigation schemes implemented by the Irrigation Development Corporation is found to be a very useful programme also attracting additional institutional financial assistance from A.R.D.C., and as the Corporation is experiencing constraint of resources due to lack of equity for mobilising ade3quate institutional investment it has been proposed to make an allotment of Rs.2.00 crores to be the Corporation.

Soil Conservation

In the Annual Plan 1977-78 an amount of Rs.52.00 lakhs has been provided for Soil Conservation. Out of this an amount of Rs.40.00 lakhs is meant for Soil Conservation schemes of Agriculture Department and Rs.12.00 lakhs for schemes on Non-Agricultural lands implemented through the chief Conservator of Forest. The same provision has been made in the Annual Plan for 1978-79. It is targetted to cover 9000 hectares under Soil Conservation programme. The schemes implemented by the Forest Department are for raising of Minor forest produce and silver oak plantations, Bursara Plantations and pasture Development.

Area Development

An amount of Rs.360.00 lakhs was provided for 1977-78 for the purpose of on farm development, provision of extension services primarily in the field of Agriculture, provision of credit facilities and creation of infrastructure in the selected Command areas through the Command Area Development Department and its Project Administrations in the four Major Irrigation Project viz., Pochampad, Nagarjunasagar Right Canal, Nagarjunasagar Left Canals and Thungabhadra High and Low Level Canals as well as K.C. Canal. As per the commitment given to the World Bank adequate provision has to be made for Ayacut roads under this programme in respect of Nagarjunasagar and Pochampad Project. With a view to making adequate provision for ayacut road programme the allotment in the next year has been increased to Rs.603.00 lakhs.

So far the designing and planning of on Farm Development works has been completed for an area of about 33,000 hectares and field channels have been constructed in an area of 55,000 hectares. Next year it is proposed to take up on Farm Development works in an area of about 40,000 hectares and the construction of field channels would cover an area of about 90,000 hectares.

Animal Husbandary

The provision made in 1977-78 is Rs.132.00 lakhs for the five year 1978-79, a provision of Rs.149.00 lakhs has been made. The aim of the Animal Husbandry programme is to expand the Animal Welfare activities in the rural areas with ultimate objective of increasing the production potentials in the rural areas. The accent in Animal Husbandry is on provision of "extension facilities and improvement of the existing stock of cattle. Provision has also been made towards share capital contribution for Meat and Poultry Development Corporation which will be concentrating on building up production and marketing of meat and poultry products.

Dairy Development
In the Plan for 1977-78 an amount of Rs.116.00 lakhs has been made. In order to provide for the expansion of the Dairy Plants at Hyderabad, Kurnool and Vijayawada and also for strengthening the haulage capacity of the Corporation and processing capacity through Milk Powder Plants at Proddatur and Chittoor in Rayalaseema, the total provision for the next year has been increased to Rs.170.00 lakhs.

Fisheries

A provision of Rs.80.00 lakhs has been made in the Plan for 1977-78. This has been increased to Rs.135.00 lakhs in the next year with a view to meeting the State's share for the integrated Marine Project which has been posed to the World Bank for financial assistance and also to strengthen the capital base of Andhra Pradesh Fisheries Corporation which is taking up schemes for the benefit of Fishermen like Cold storage, which also attract institutional finances.

Forests

A provision of Rs.110.00 lakhs has been made for Forests in the Annual Plan 1977-78. Taking into the programmes of the Forest Department as also the requirements of the Forest Department Corporation which has already attracted A.R.D.C. assistance for the projects, it has been proposed to make a provision of Rs.150.00 lakhs in the next year.

Investment In Agricultural Financial Institutions

An amount of Rs.260.00 lakhs has been provided in the Annual Plan 1977-78. The loaning programme for 1977-78 is Rs.10 crores under ordinary debentures and Rs.35.00 crores under Special debentures. On the basis of the lending programme of Rs.55.00 crores envisaged by the State Government for the next year, for diversified lending to various sectors like Ground Water utilisation, Land Development, Mechanisation of Farm Operations, Dairying, Sheep and Poultry rearing, horticulture, etc., with I.O.A. support, outlay to be provided in the Plan towards debenture support comes to Rs.400 lakhs. This has been provided in the Plan for the next year.

Co-Operation

The provision under Co-operation in the Annual Plan 1977-78 is Rs.650.00 lakhs. The same provision has been repeated for the next year also. Of this, an amount of Rs.335.00 lakhs is for the Co-operative Sugar Factories.

Nagarjunasagar Project

The original provision in the Annual Plan 1977-78 for Nagarjunasagar Project was Rs.3750.00 lakhs. This was reduced to Rs.3670.00 lakhs during the course of the year, by diverting an amount of Rs.80.00 lakhs to the Andhra Pradesh State Construction which has been undertaking works in the Project area. In the Annual Plan 1978-79 an amount of Rs.4500.00 lakhs has been provided.

The work on Nagarjunasagar Project Right Canal has been completed upto M.57/0 in all respects and upto M.83/2 for releasing water upto Block 14. On the Left Canal, the work on the main canal upto 165 K.M. has been completed by June, 1977. The Irrigation Potential for 44,000 hectares is proposed to be added by the end of June, 1978.

Pochampad Project

Originally an amount of Rs.20 crores was provided for Pochampad Project in the Annual Plan 1977-78. But this provision was reduced to Rs.1920.00 lakhs during the course of the year, by diverting a sum of Rs.80.00 lakhs to the A.P.State Construction Corporation which has undertaken works in this Project area also. In the Annual Plan for 1978-79 the provision made for this project is Rs.2450.00 lakhs. It is programmed to complete excavation of canals upto K.M. 116 to create an additional Irrigation Potential of 2400 hectares by the end of June, 1978 bringing the total potential created from commencement to 1.03 lakh hectares.

Godavari Barrage Project

An amount of Rs.1100.00 lakhs has been provided in the Annual Plan 1977-78 for the Godavari Barrage Project. In the Annual Plan 1978-79 an amount of Rs.1020.00 lakhs has been provided for this project. In the year 1977-78, the entire substructure work of the Barrage will be completed ensuring that there is no damage to the Anicut.

Other major and medium irrigation schemes including flood control and drainage:

In the Annual Plan 1977-78, the provision for other Major and Medium Irrigation Schemes including Flood Control and Drainage was Rs.4267.00 lakhs, consisting of rs.3782.00 lakhs for other Major and Medium Irrigation Schemes, Rs.35.00 lakhs for Flood Control and Rs.450.00 lakhs for drainage. During the course of the year, an additional amount of Rs.5.26 lakhs was provided for the development of Kolleru Lake area. In the Annual Plan 1978-79, the provision for other Major and Medium Irrigation Schemes excluding Flood Control and Drainage is Rs.4545.00 lakhs. The provision for Flood Control and Drainage is Rs.485.00 lakhs.

In the Annual Plan 1977-78, an amount of Rs.100.00 lakhs was originally provided for Andhra Pradesh State Construction Corporation. This has been subsequently increased to Rs.350.00 lakhs by diverting funds from Nagarjunasagar, Pochampad and Srisailam Projects. No separate provision has been made for this Corporation for the next year, 1978-79 but diversion of funds from Projects where the corporation has undertaken works will be considered. The additional irrigation potential targeted for 1978-79 is 2.01 lakh hectares comprising 77,000 hectares under Nagarjunasagar, 18,000 hectares under Pochampad, 21500 hectares under T.B.P.H.L.C. Stage-Ii and the balance from other Medium Irrigation Projects.

Power

The provision made for Power Sector in the Plan for 1977-78 is Rs.14500.00 lakhs including rs.3200.00 lakhs for Srisailam Project. An amount of Rs.90.00 lakhs was diverted to the Andhra Pradesh Construction Corporation from Srisailam Project. The provision made for power sector in the Plan for 1978-79 is Rs.18,000.00 lakhs including Rs.4,000.00 lakhs for Srisailam.

The third unit of Lower Sileru was commissioned on 13 th November 1977. The fourth unit is expected to be commissioned by March, 1978. The first 110 M.W. unit under Kothagudem Stage-IV was synchronised with the grid on 10 th March 1977 and the second unit under Stage-IV has been brought into commercial service in January, 1978. The Nagarjunasagar Unit has since been commissioned. The installed capacity in the State has come upto 1563 M.W. and will further go upto 1678 M.W. by the end of March, 1978.

During 1978-79, the first unit of 210 M.W. at Vijayawada Thermal Station is proposed to be commissioned. The total number of inhabited villages and towns is 27,445 (224 of these being towns. All towns are electrified and out of 27,221 villages 14,131 have been electrified to the end of January, 1978. During 1977-78, the State has electrified 661 villages plus 184 hamlets and energised 19,541 Agricultural services to the end of January 1978. During 1978-79, it is programmed to electrify 1600 villages. In respect of release of Agricultural Services, it is programmed to energise 40,000 pumpsets in 1978-79.

Industry and Minerals

The provision for Industries and Minerals sector in the Annual Plan 1977-78 was Rs.1,127.12 lakhs. This has been increased to Rs.1,238.42 lakhs during the course of the year, by providing additional sum of Rs.110.00 lakhs to Handlooms towards rebate and subsidy to Handlooms Industry and the remaining Rs.1.30 lakhs to Andhra Pradesh State Finance Corporation.

In the Annual Plan for 1978-79, a provision of Rs.1153.75 lakhs has been made for the sector. The reduction in outlay is on account of the fct that under handlooms, the current year's level as originally provided has been maintained.

Transport and Communications

The original provision for this sector in the Annual Plan 1977-78 was Rs.2837.00lakhs. During the course of the year an additional amount of Rs.65.00 lakhs was given to the Director of State Ports for meeting the expenditure on dredging operation at Kakinada Port. Thus, the allocation for the sector was raised to Rs.2902.00 lakhs.

In the Annual Plan 1978-79, an amount of Rs.2900.00 lakhs is provided for this sector. Considering the importance of communications, the allocation for Roads has been increased from 880.00 lakhs in 1977-78 to Rs.980.00 lakhs in the next year.

Social and Community Services

The original provision for Social and Community Services in the Annual Plan 1977-78 was Rs.4,756.09 lakhs. This has been increased to Rs.4,846,95 lakhs by increasing a provision by Rs.6.50 lakhs to the Director of Higher Education, Rs.60.37 lakhs for Medical and Public Health Schemes, Rs.8.00 lakhs for Water Supply Schemes, Rs.8.44 lakhs for Craftsmen Training Schemes and the remaining Rs.7.55 lakhs for other miscellaneous schemes.

In the Annual Plan 1978-79 the provision for this sector is Rs.5,168.09 lakhs i.e., an increase of Rs.322.00 lakhs over the current year's level. This consists of Rs.769.00 for Education including Technical Education, Rs.557.00 lakhs for Medical and Public Health, Rs.1650.00 lakhs for Water Supply both Rural and Urban, Rs.1,083.00 lakhs for Housing and Urban Development,Rs.17.00 lakhs for Information and Publicity, Rs.44.09 lakhs for Labour and Labour Wellfare, Rs.832.00 lakhs for Schemes for welfare of S.Cs, S.Ts and other B.Cs and Rs.216.00 lakhs for Social Welfare, Nutrition and other Social and Community Services.

Economic Services

An amount of Rs.40.41 lakhs was originallay provided for this in the Annual Plan 1977-78, which was increased to Rs.42.41 lakhs during the course of the year. A provision of Rs.40.41 lakhs has been made in the Annual plan 1978-79 for this sctor.

General Services

An amount of Rs.152.00 lakhs was provided in the Annual Plan 1977-78 for construction of buildings for various Government Offices. The same provision of Rs.152.00 lakhs has been repeated in the Annual Plan 1978-79 for this purpose.

Special Assistance For Accelerated Development

OF BACKWARD AREAS AND THE SIX POINT FORMULA

The Government of India have agreed to give special assistance of Rs.90 crores during the Fifth Plan period at the rate of Rs.18 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, Rayalaseems and Coastal Andhra in the ratio of 5:3:2. The State Government decided to provide, our of the above allocation, 75 per cent for district programmes and 25 per cent for regional schemes of Higher Education and Large Industries. Detailed schemes for 1977-78 were drawn up 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 said schemes were cleared by the Planning Commission.

During the years 1974-75 to 1977-78 the Planning Commission released central assistance of the order of Rs.63 crores against the total programme of Rs.72 crores sent to them. Under this programme, an expenditure of Rs.67.49 crores was incurred till December, 1977 and it is anticipated that the balance amoount will be spend during the current Financial Year.

Advance action has been initiated for finalising the programme for 1978-79. Reports from all the Collectors were obtained. In respect of schemes pertaining to Rayalaseema Region, the same was placed before the Rayalaseema Planning and Development Committee in the first week of January, 1978. In respect of ;schemes pertaining to Coastal Andhra and Telangana the same could not be placed before the respective Planning and Development Committees of these regions, as the Committees could not meet on account of cyclone and elections.

However, tentative allocations conforming to the outlay of Rs.18 crores were made to the Heads of Departments, for the purpose of making provision n the budget for the next year. It may be mentioned that these allocations are purely tentative, which have to be modified subsequently with reference to the recommendations of the Regional Planning and Development Committees and the State Planning Board.

The region-wise and the sector-wise outlays of the 1977-79 and the tentative outlays for 1978-79 under Six Point Formula programmes, are given in the Annexure.

Besides the above, the Government of India have alsoagreed to give assistance of the order of Rs.10 crores during the Fifth Plan period, for the development of twin cities. Under this programme the Government of India have so far released an assistance of Rs.2.41 crores till 31 st March 1977 and they have promised to release an assistance of Rs.4 crores in the course of the current year. For the next year a provision of Rs.3.58 crores has been made in the budget for this purpose.

 
 
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