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GOVERNMENT of ANDHRA PRADESH
FINANCE DEPARTMENT
Previous Budget Speeches

PREVIOUS ECONOMIC TRENDS 1979-80

 
Economic Survey 1979-80

The year 1979-80 commenced against a back drop of significant economic progress during 1978-79. In the year 1978-79 the State Income of Andhra Pradesh at constant prices had risen by 7..7 per cent over 1977-78. Agricultural production recorded a substantial increase with the food grains production reaching an all time record of 106.67 lakh tonnes. This level of production had surpassed the earlier record of 94.28 lakh tonnes achieved in 1975-76. However, during the year 1979-80 the seasonal conditions were generally unsatisfactory and many parts of the state experienced severe drought conditions due to the inadequate rainfall in the South West Monsoon period. The position has improved some what with the rains received in September, though the over all agricultural production in 1979-80 had been affected by the earlier drought conditions and the production in the current year may be markedly less than that in 1978-79. On the other hand, the overall industrial production in the State showed a substantial increase. The average index number of industrial production during 1979 with base 1970=100 increased by 9.2 per cent compared to the previous year. The labour situation was more or less similar compared to the preceding year while the employment situation was, however, some what unsatisfactory and there was some increase in price levels.

STATE INCOME

1. The State Income of Andhra Pradesh at current prices was Rs. 5,301.28 crores in 1978-79 against Rs. 5,032.08 crores in 1977-78. On the other hand, the State Income at constant (1960-61) prices, which reveals the real growth in the goods and services produced within the State, had gone up from Rs. 1,672.35 crores in 1977-78 to Rs. 1,800.33 crores in 1978-79 or an increase by 7.7 percent. This order of growth in State Income at constant prices was largely contributed by the primary sector which rose to Rs. 851.27 crores (at constant 1960-61 prices) in 1978-79 against Rs. 770.13 crores in 1977-78 recording an increase of 10.5 percent. The income from the secondary and tertiary sectors increased by 9.5 and 2.7 per cent respectively.

2. The per capita income at current prices increased from Rs. 999 in 1977-78s to 1,027 in 1978-79 while the per capita income at constant (1960-61) prices increased from Rs. 332 in 1977-78 to Rs. 349 in 1978-79 or an increase by 5.1 per cent.

AGRICULTURE

1. Since 1973-74, the State has been able to make a significant break-through in agricultural production, which but for the adverse seasonal conditions in some of the years has been showing a steep upward trend. The previous record production of foodgrains was achieved in 1975-76 when it reached the level of 94.28 lakh tonnes. The rice production in that year, which was also a record was 64.51 lakh tonnes. Though this level of production could not be achieved in 1976-77 and 1977-78 due to the cyclones and other adverse seasonal conditions, the year 1978-79 turned out to be another year of record foodgrains production of 106.67 lakh tonnes. The production of foodgrains in 1978-79 was 12.39 lakh tonnes more than the previous best year of 1975-76, showing an increase by 13.1 per cent over the production in that year. The rice production in 1978-79 was also a record at 74.32 lakh tonnes against 64.51 lakh tonnes in 1975-76, or an increase by 15.2 per cent. This record production in 1978-79 could be achieved partly due to the favourable seasonal conditions.

2. Though the south-west monsoon had set in time during June, 1978, it became some what weak over several part5s of the State upto 13 th June, 1978. Due to the formation of a depression in the Bay of Bengal, the monsoon, however, became active and vigorous in the third week of June, 1978 and heavy rains fall occurred in many parts of the State. During the subsequent months also, there w3as excess rainfall in most of the districts of the State and all the districts, excepting Nellore and Anantapur, recorded excess rainfall during the south-west monsoon period compared to their respective normals. The seasonal conditions in the year 1978-79 were thus by and large good in all the districts. This resulted in the cultivation of rice and other principal crops extensively.

3. Due to favourable seasonal conditions, the area under all the food grains crops, excepting Ragi, Korra, Varagu, Samai and Bengal gram increased during 1978-79 , compared to the preceding year. The total area under foodgrain crops during 1978-79 was 96.51 lakh hectares compared to 92.55 lakh hectares during 1977-78, showing an increase by 4.3 per cent.

4. As a result of the favourable seasonal conditions in 1978-79, the foodgrains production surpassed the previous record production of 94.28 lakhs tonnes achieved in 1975-76. The foodgrains production during 1978-79 amounted to 106.67 lakh tonnes as against 89.85 lakh tonnes in 1977-78 recording an increase of 16.82 lakh tonnes or 18.7 per cent.

5. In the current year i.e., 1979-80, however, the south-west monsoon was erratic affecting adversely the sowings of the dry crops also the transplantation of paddy in large parts of the State. The south-west monsoon set in late by 15 days with some rain in the last week of June, 1979 . The monsoon weakened immediately thereafter and the position deteriorated rapidly into long dry spells. There was a prolonged dry spell of 26 days from 26th June, 1979. Again there was another dry spell of 23 days from 7th August , 1979.

6. In June, 1979, there was deficit rain fall in almost all the districts, excepting the districts of Srikakulam, Visakhapatnam, Vijayanagaram, Kurnool, Anantapur, Mahaboobnagar and Adilabad,. In July, 1979 all the districts except Srikakulam and Chittoor recorded a deficit rain fall. In the month of August, 1979, the State received an average rainfalls of 95 m.ms against the normal rainfall of 157 m.ms thereby recording a deficit of 40 per cent over the normal. All the districts in the State without exception recorded deficit rain fall when compared to their respective normals . However, the monsoon became active in September, 1979 due to which the State received an average rainfall of 216 m.ms against the normal rain fall of 168 m./ms or an excess of 29 percent over the normal . All the districts in the State with the exception of Cuddapah and Adilabad received excess rainfall over their respective normal during September, 1979.

7. The total rainfall received by the State during the south-west monsoon i.e. from 1st June to the end of September, 1979 was 516 m.ms, against the normal rain fall of 602 m.ms, i.e., a deficit of 14 per cent over the normal. The total rain fall received during this period was 500 m.ms against the normal of 567 m.ms., in Coastal Andhra, 363 m.ms, against the normal of 368 m.ms. in Rayalaseema and 591 m.ms., against the normal of 726 m.ms, in Telangana region.

8. Therefore more than an overall deficiency in rainfall, the erratie pattern of the receipt of rainfall and the long dry spells during this period were mainly responsible for acute drought conditions in the State During Kharif season. As a result, the early sown Kharif dry crops were affected and the normal areas under various dry and wet crops could not be sown during Kharif 1979-80.l

9. In November, 1979, there were heavy rains in the State which affected to some extent the rice crop ready for harvest in the delta districts. There was shedding of grain and some discoloration.

10. As a result of these unfavourable seasonal conditions, a decline in the agricultural production in Kharif 1979-80 was expected . To offset this decline to some extent, the State Government have taken measures to increase Rabi production. These measures include the raising of Hybrid Jowar crop in additional area of 1.10 lakh hectares and groundnut crop in an additional area of 1.09 lakh hectares. These measures, however, cannot fully offset the substantial decline observed in Kharif season. The estimates of production of principal crops indicate that the foodgrains production during 1979-80 might be of the order of production observed in 1977-78.

INDUSTRIES

1. The industrial activity which revived significantly in 1974 continued to show buoyancy in the subsequent years also. The easy availability of raw materials, power and improved transport facilities contributed to the speedy growth in the industrial sector. The index number of industrial production (adjusted for seasonality) with 1970 as base, recorded more than 11 per cent increase in 1976 over that of 1975. There were further increase of 4.6 per cent and 11.6 per cent in 1977 and 1978. In the current year i.e., in 1979 the average index (adjusted for seasonality) recorded an increase of 9.2 per cent over the index of 1978.

2. Out of the 17 industry groups, there was increase in the indices of 10 groups. Leather and leather products recorded the highest increase of 61.4 per cent follow3ed by Basic Metal Products (41.3 per cent). Transport Equipment (27.2 percent), Electrical Machinery (25 per cent) and Miscellaneous Industry group (24 per cent) . The increase in the index varied between 5 to 18 per cent in the case of Chemical and Chemical products, Tobacco and Tobacco products, Generation of electricity, Metal products except Machinery and Transport equipment and Mining and Quarrying.

3. There was however, decline, in the indices of 7 groups. The highest decline of 21.6 per cent was recorded in the case of Food Group followed by 10.9 per cent in the case of petroleum and petroleum products and 10.3 per cent in the case of Beverages group. While the decline was marginal and less than 3.,9 per cent in the case of paper and paper products (3.9 per cent),,Non-Metallic Mineral products (1.9 per cent) Machinery except Electrical Machinery (1.7 percent) and Textiles (0.8 per cent).

4. Considering the quantum of Industrial production in the State, the production in the year 1979 recorded an increase in respect of 27 out of the 43 selected industries compared to the production in 1978. A significant increase in production was noticed in the case of Tanning (90.4 per cent) followed by Heavy Electricals (51.6 per cent) Motor Vehicles (Body Building) (45.6 per cent), M.S. Rounds, Bars, Flats etc., (36.5 per cent) Drugs and Pharmaceuticals (33.4 per cent_ House Service Meters (24 per cent) and Acetic Acid (23.1 per cent). The increase varied between sd5.1 to 18.3 per cent in respect of Diesel Engines, Motor-cycles, Water Coolers, Electronic Equipment, Oxygen , Cigarettes, Dry Cells/Dry Battery Cells, Machine tools, Generation of Electricity, Detonators and Coal. The percentage increase was marginal in the case of D/Acetylene, Rayon yarn, Instant Coffee packed, Transformers, Cotton yarn , Asbestos Cement, Forgings, Chemical Fertilisers and Jute.

5. Out of the sixteen industries which recorded decline in production, the highest decline was noticed in respect of Sugar (31.2 percent) followed by Ball and Roller Bearings (30.3 percent) and Glass (24.9 percent). The decline in production varied between 5 to 16.4 per cent in the case of Refrigerators, petroleum products. Bakery. Wines and Rectified spirits, Rayon Fabrics, Electrical Cables, Ferro Alloys, Conventional Coffee packed, Cotton fabrics and Tea packed. The decline was 1.1 to 3.9 per cent in respect of Paper, Vanaspathi and Cement.

6. Although the electricity generated in the State also increased during 1979 by 9.5 per cent, it fell short of the original programme due to the low water levels in the reservoirs due to the failure of the monsoon and partly due to the unsatisfactory performance of two of the Thermal Units. Simultaneously, however, the demand increased partly due to the drought conditions experienced by the State in Kharif 1979 which increased the demand for electricity from the agricultural sector. Consequently, a cut of 30 per cent had to be imposed on the H. T. consumers with a view to ensure adequate supply of power to agricultural sector. The difficult power situation may continue for another few months after which it is expected to ease with the commercial operation of Vijayawada 210 M. W. Unit and the commissioning of Nagarjuna Sagar Reversible Unit.

Labour Situation

The labour situation in the State during 1979 was more or less similar to that in 1978 with the number of strikes and lockouts and workers involved showing a marginal decline while the number of mandays lost showed a marginal increase. The number of strikes and lock outs declined from 69 in 1978 to 63 in 1979 while the workers involved declined from 35,220 in 1978 to 31,643 in 1979. The mandays lost, however showed a slight increase from 2.64 lakhs in 1978 to 2.83 lakhs in 1979.

EMPLOYMENT SITUATION

The employment situation in the State was some what unsatisfactory in 1979 as the total number of vacancies notified to the Employment Exchanges recorded a decline by 5.1 per cent from 66,879 in 1978 to 63,480 in 1979.

PRICE SITUATION

An upward trend in prices was noticed since April 1979. The increase was observed both in wholesale and retail prices.

WHOLESALE PRICES

The average index number of wholesale prices of agricultural commodities in Andhra Pradesh with base 1970-71=100 for 1979 was 169.8 against 160.1 during 1978 showing an increase of 6.1 per cent. Considering group-wise, the index showed a substantial increase in the case of sugarcane (55.6 per cent) which was mainly attributable to change in the sugar policy. There was an increase of 22.9 per cent in the index of vegetables group followed by 13.5 per cent in the case of oil seeds.

CONSUMER PRICES

The average Consumer Price Index Number for industrial workers for eight selected in the State increased from 329 in January to 358 in October 1979 or an increase by 8.8 per cent. During the same period the All-India Average Index of Consumer Prices for industrial working class had risen from 332 to 365 or an increase by 9.9 per cent.

ANNUAL PLAN FOR 1980-81

The outlay of the Annual Plan for 1979-80 included in the budget was Rs. 450 crores. The outlay as approved by the Planning Commission was however Rs. 421.50 crores. As a result of the decision of the National Development Council in February, 1979 certain schemes were deleted from the list of Centrally Sponsored Schemes, and certain others were transferred to a category for which only 50 per cent Central Assistance would be forthcoming. Consequent on this an outlay of Rs. 19 crores had to be provided in the current year for transferred Centrally Sponsored Schemes of this type. It also became necessary to increase the outlay for Sriramsagar Project as also for certain other schemes. Taking into account all these changes the revised outlay for 1979-80 comes to Rs. 450.83 crores.

We presented a Draft Plan for 1980-81 for an outlay of Rs. 543 crores. The official level Working Groups which examined these proposals recommended an outlay of Rs. 473 crores. The discussions of the Chief Minister with the Planning Commission to finalise the size of the State's Annual Plan could not take place as yet. It was therefore decided to tentatively fix the size of the State's Plan for 1980-81 at about the same level as for 1979-80. The following Statement will indicate the sector-wise outlay for the Annual Plan for 1980-81.

Head of Development

Annual Plan

1979--80

Annual Plan

 

 

Budget

Revised

1980-81 Budget

1.

Agriculture and Allied Services

3,955.68

4,864.03

4,799.71

2.

Co-operation

406.39

605.39

381.00

3.

Irrigation and Power:

 

 

 

 

(a) Nagarjunasagar Project

4,500.00

4,500.00

4,500.00

 

(b) Sriramsagar Project

2,450.00

3,450.00

3,500.00

 

(c) G odavari Barrage

1.020.00

750.00

850.00

 

(d) Other Major and Medium Irrigation Schemes

4,531.02

4,471.00

4,315.00

 

(e) (i) Flood Control

35.00

35.00

}

 

....(ii) Drainage

450.00

450.00

} .............485.00

4.

POWER

 

 

 

 

(a) Srisailam

4,000.00

2,983.00

2,200.00

 

(b) A.P.S.E.B.

13,000.00

11,900.00

13,532.00

 

(c) Chief Engineer Srisailam

300.00

300.00

200.00

 

Water and power development

30,286.02

28,839.00

29,582.00

5.

Industry and Minerals

1,397.55

1,162.05

1,173.50

6.

Transport and Communication

2,646.00

2,898.00

3,857.00

7.

Social and Community Service

6,134.33

6,547.40

6,285.38

8.

Economic Services

14.51

14.51

22.00

9.

General Services

152.00

152.00

152.00

 

Total :

45,002.48

45,083.38

46,225.69


The substantial increase in allocations for the A.P.S.E.B. and the A.P.S.R.T.C. is due to an improvement in their internal resources consequent on Tariff and Fare revisions. Barring these two, for other sectors the current year's level has been more or less maintained. The reductions in some cases are explained subsequently.

The statement given in Annexure shows the details of the allocations in the current year and the amount that will be provided in the Plan Budget for 1980-81.

In the Annual Plan for 1979-80 Rs. 14.71 crores were earmarked for backward areas. In the 1980-81 Plan of Rs. 462.25 crores an allotment of Rs. 295.82 crores has been made for Irrigation and Power Sectors. Of the balance amount 10% funds to be allotted for the backward areas comes to Rs.16.64 crores. It is now proposed to earmark this amount for identified backward areas in the State.

AGRICULTURE


In the Revised Plan for 1979-80 the allotment made for Agriculture was Rs. 1,923.00 lakhs. Against this the outlay provided for 1980-81 is Rs. 1,748.00 lakhs. The decline is mostly due to Centrally Sponsored Schemes to be assisted 50% by Government of India for which provision is made based on likely allocation by Government of India. The allocation comprises Rs. 65.00 lakhs for Agricultural University, Rs. 171.51 lakhs for Director of Agriculture, Rs. 10.00 lakhs for the Warehousing Corporation and Rs. 1,500.00 lakhs for Rural Development Schemes. So far as the D.P.A.P. blocks are concerned as per the revised pattern of financial assistance prescribed by the Government of India from 1979-80 onwards the 76 D.P.A.P. blocks in the State would get a total allotment of Rs. 11.40 crores at Rs. 15 lakhs per block to be shared by the State and Central Governments on 50:50 basis. The share of the State Government is Rs. 5.70 crores and this has been provided in the Plan Budget. The S.F.D.A. programmes are being implemented in the State in 137 blocks. The outlay for 137 S.F.D.A. blocks at the rate of Rs. 2.50 lakhs per block comes to Rs. 342.50 lakhs of which the State's share comes to Rs. 171.25 lakhs. In addition to this, for meeting the cost of Engineering Staff on the I.A.A.P. pattern in certain S.F.D.A. blocks and also to meet the cost of the staff at Headquarters which is to be met by the State, a provision of Rs. 25 lakhs is made. Besides this, an outlay of Rs. 65.75 lakhs is provided for taking up Minor Irrigation Programmes outside the special programme area specially meant for meeting the needs of the medium farmers. Thus the total outlay towards State's share provided for the S.F.D.A. programme is Rs. 262.00 lakhs. For the IRDP a provision of Rs. 668 lakhs has been made towards the State's share.

Due to favourable seasonal conditions the area under all the foodgrains crops excepting Ragi, korra , Varagu and Bengalgram increased during 1978-79 compared to the previous year. The total are under foodgrains crops during 1978-79 was 96.51 lakh hectares compared to 92.55 lakh hectares during 1977-78. The foodgrains production during 1978-79 was a record 106.67 lakh tonnes as against 89.85 lakh tonnes in 1977-78. However during 1979-80 the seasonal conditions were generally unsatisfactory and many parts of the State experienced severe drought conditions due to the failure of the South-West Monsoon. The position improved a little with the rains received in September, 1979-80 has still been affected by conditions of drought. The preliminary estimates of production of principal crops indicate that the foodgrains production during 1979-80 might be of the order of 90.00 lakh tonnes.

Minor Irrigation

The provision for Minor Irrigation in the revised estimate for 1979-80 is Rs. 925.88 lakhs. A provision of Rs. 900 lakhs has been made for the next year. Of this an allotment of Rs. 688 lakhs is for surface irrigation consisting of Rs. 655 lakhs for the Chief Engineer ( Minor Irrigation ) and Rs. 13 lakhs for the Chief Engineer (Panchayati Raj). Under the Schemes implemented by the Chief Engineer ( Minor Irrigation) , it is proposed to create an irrigation potential of 7,640 hectares of new ayacut as against the anticipated achievement of 6,350 hectares in the current year. In the Annual Plan for 1980-81, government have provided a sum of Rs. 200 lakhs towards the 25 per cent share capital contribution to the A.P. Irrigation Development Corporation. As per debt equity ratio laid down for this Corporation 75 per cent of the cost of the schemes should be met from Institutional sources. The ARDC have agreed to finance the schemes of this Corporation to the extent of 75 per cent of the cost of each scheme through various commercial banks. The banks also give land development and crop loans to beneficiaries. Under the Lift Irrigation and Ground Water Programmes implemented by the Irrigation Development corporation, it is proposed to create an additional irrigation potential of 22,100 hectares and 13,000 hectares, respectively.

Soil Conservation

Against the allotment of Rs. 26.50 lakhs made in 1979-80, the allotment proposed for 1980-81 is Rs. 42.00 lakhs. Out of this an amount of Rs. 30.00 lakhs is for the Soil Conservation Programme of the Agriculture Development and Rs. 12.00 lakhs for schemes on non- agricultural and implemented through the C.C.F. The total area covered under the Soil Conservation Programme at the end of 1979-80 is 4.48 lakh hectares. It is proposed to cover an extent of 5,000 hectares in the next year taking the total area under Soil Conservation Programme at the end of 1980-81 to 4.53 lakh hectares.

Area Development

The allotment made in 1979-80 is Rs. 674.94 lakhs and the same allotment is repeated for the next year also. A provision of Rs. 262.80 lakhs is made for the roads programme under the N.S.P. is the next year. According to the agreement entered into with the World Bank, ayacut roads to a length of 1,576 K.Ms. are to be laid in the N.S.P. command area at an estimated cost of Rs. 17.70 crores. The Intensive Agricultural Extension Programme is also one of the important aspects of the World Bank Programme. The new extension methodology known as Training and Visits system ha been introduced to educate the farmers in modern agricultural technology. This programme is proposed to be taken up over an areas of 10.64 lakh hectares in a phased manner over a period of 5 years commencing from 1976-77. So far an extent of 8.29 lakh hectares has been covered. During 1980-81 , this programme will be extended to an additional area of 2.35 lakh hectares. An amount of Rs. 108.76 lakhs has been proposed for this programme in the Annual Plan for 1980-81.

Animal Husbandry

The provision made in 1979-80 is Rs. 91.45 lakhs. The allotment proposed in 1980-81 is Rs. 111.51 lakhs. Considering the various demands from the livestock breeders and the infrastructure facilities already built up the strategy of the Department during 1980-81 is to improve important institutions qualitatively by providing higher technical services. The accent in Animal Husbandry is on; the provision of extension facilities and an improvement in the existing stock of cattle. As a result of implementation of Cattle Development Programme, the likely production of milk is expected to increase from 22.60 lakh tonnes in1979-80 to 23.50 lakh tonnes in 1980-81 . Egg production also will increase from 1,080 million in 1979-80 to 1,160 million in 1980-81.

Dairy Development

The provision made in 1979-80 is Rs. 170.00 lakhs. The same outlay is provided for the next year also. It has been proposed to establish a Milk Products Factory at Rajahmundry at a total cost of Rs. 5.00 crores. The State Government has to meet 33% of the cost by means of equity participation which comes to Rs. 165 lakhs. For the next year, a provision of Rs. 25.00 lakhs is made for this in the Plan. Similarly, for the 2nd Spray Drying Plant at Vijayawada which expected to cost Rs. 150.00 lakhs, the state's share comes to Rs. 49.50 lakhs has been made towards equity participation for this. Other programmes proposed to be taken up by the Corporation in the next year relate to strengthening of the Milk Products factory at Hyderabad at a cost of Rs. 25.00 lakhs and purchase of road tankers at a cost of Rs. 35.00 lakhs.

Fisheries

A provision of Rs. 200.00 lakhs has been made in the Plan for 1979-80 while for the year 1980-81 the provision made is Rs. 300.00 lakhs. Out of this, a major part will be to meet the State's share for the Integrated Marine Project, an important project for which financial assistance is coming from the World Bank.

Forests

A provision of Rs. 134.12 lakhs has been made for the year 1979-80. Taking into account the need for continuing the Farm forestry schemes such as raising of shelter belts and mixed plantations the allotment for the next year has been fixed at Rs. 150.00 lakhs.

Investment in Agricultural Financial Institutions

An amount of Rs. 400.00 lakhs has been provided in the Revised Plan for 1979-80. The target of long term loans of Rs. 55.00 crores set for 1979-80 is expected to be fully achieved. For 1980-81 the State has a target of Rs. 10.00 crores under ordinary loans and Rs. 50.00 crores under special A.R.D.C. schemes making a total of Rs. 60.00 crores. For the debentures to be floated by the Land Development Banks, the amount to be contributed by the State comes to Rs. 4 crores . This has been provided in the plan for 1980-81.

Rural Works Programme

Under the Food for Work Programme rice is being supplied by the Government of India free of cost which has to be matched in the State Budget. The foodgrains will be utilized to the maximum extent as labour component. The main object of this scheme is to generate maximum employment opportunities in the rural areas. During the year 1979-80 a sum of Rs. 220.00 lakhs has been provided in the State's Plan to meet the cash component of the programme. The same amount has been provided in 1980-81 also. This amount is proposed to be utilised as detailed below:-

Buildings

Rs.. 30.00 Lakhs

Roads

Rs.140.00 Lakhs

M.I.

Rs.. 50.00 Lakhs

Total :

Rs.220.00 Lkahs


Buildings

Under this programme, it is proposed to undertake construction of elementary school buildings, high school buildings and buildings for primary health centres. During the next year the overall programme to be taken up under this programme is estimated to cost Rs. 50.00 lakhs. The labour component of the buildings, will be of the order of 40% out of Rs. 50.00 lakhs, that is , Rs. 20.00 lakhs, while the material component to be provided in the State's Plan comes to Rs. 30.00 lakhs. This is provided in the Plan.

Roads

Under this programme, it is proposed to undertake construction and improvement of Katcha roads and cart-tracks. It is proposed to take up in the next year a programme envisaging an outlay of rs.2.8 crores for rural roads. In the case of this programme, the labour component will be 50% . on this basis, a provision of Rs. 140.00 lakhs towards materiel component is provided in the Plan.

Minor Irrigation

It is proposed to undertake a programme for restoration of Minor Irrigation sources of the order of Rs. 250.00 lakhs. In respect of Minor Irrigation works, the labour component will be 80% while the material component will be 20%. On this basis, for an overall programme of Rs. 250.00 lakhs the amount to be provided towards material component comes to Rs. 50.00 lakhs which is provided in the Plan.

Co-operation

The provision made under co-operation in the Annual Plan for 1979-80 is Rs. 606.39 lakhs while in the Annual Plan for 1980-81 this has been reduced to Rs. 381.00 lakhs. The reduction in the outlay in the next year is partly due to the fact that while under stabililsation fund a sum of Rs. 200.00 lakhs has been made in 1979-80, in the next year it is proposed to provide Rs. 100.00 lakhs. Similarly under borrowings from Reserve Bank of India, while in the current year a provision of Rs. 264.00 lakhs was made, in the next year this will be Rs. 183.00lakhs.

Nagarjunsagar Project

In the devised Plan for 1979-80 an amount of Rs. 4,500.00 lakhs was made for N.S.P. In the Annual Plan for 1980-81 also the same provision is being made. A total area of 5.92 lakh hectares Ws given irrigation facilities upto the end of June, 1979. It is proposed to create an additional irrigation potential over an extent of 69,000 hectares by June, 1980 taking the cumulative potential at the end of June 1980 to 6.61 lakh hectares. During 1980-81 an additional irrigation potential over an extent of 1.19 lakh hectares will be created taking the cumulative potential at the end of June, 1981 to 7.80 lakh hectares.

Sriram Sagar Project

In the Revised Plan for 1979-80, an amount of Rs. 3,450.00 lakhs was provided for this project. In the Annual Plan for 1980-81 an amount of Rs. 3,500.00 lakhs has been provided. The earth dam of the right flank is completed. Left earth dam is raised to an overall height just about 2 feet below the tip level, except for a gap left over for the Saraswati canal. The non-spillway portion of masonry dam is completed. The work of raising of piers, north canal regulator, intake chamber, manufacturing and erection of radial gates are in progress. The area that has been provided with irrigation facilities at the end of June, 1979 is 1.17 lakh hectares. It is proposed to create an additional irrigation potential over an extent of 27,000 hectares by June, 1980 taking the cumulative potential at the end of June, 1980 to 1.44 lakh hectares. It is proposed to create an additional irrigation potential over an extent of 35,000 hectares by June, 1981, taking the cumulative potential at the end of June, 1981 to 1.79 lakh hectares.

Godavari Barrage

An amount of Rs. 750.00 lakhs has been provided in the Revised Plan for 1979-80 for this project, while in the Annual Plan for 1980-81, an amount of Rs. 850.00 lakhs has been provided.

Other Major and Medium Irrigation Schemes Including Flood Control and Drainage:

In the Revised Plan for 1979-80, a provision of Rs. 4,471.00 lakhs has been made for Major and Medium Irrigation Schemes while the provision made in 1980-81 for the purpose is Rs. 4,315.00 lakhs. In addition to this, an amount of Rs. 485.00 lakhs is available for Flood Control and Drainage Schemes in the next year. With this outlay, it is proposed to create an additional irrigation potential over an extent of 1.6 lakh hectares during 1980-81.

Power

The provision made for this sector in the Revised Plan for 1979-80 is Rs. 15,183.00 lakhs including Rs. 2,983.00 lakhs for Srisailam Project and Rs. 300.00 lakhs for payment to Orissa Government as our Government's share of Balimela Project. In the Annual Plan for 1980-81 this sector has been allotted an amount of Rs. 15,932.00 lakhs. Of this , an allotment of Rs. 2,200.00 lakhs is for Srisailam Project and Rs. 200.00 lakhs is towards State Government's contribution in respect of Balilmela Project. The balance amount of Rs. 13,522.00 lakhs is for the Electricity Board.

The installed capacity at the beginning of March, 1979 was 1,678 M.W. During 1979-80 the first unit of 210 M.W. of Vijayawada Thermal Station (Stage-I) was synchronised with the grid on 1-11-79. The first unit of the 100 M.W. N.S. Pumped Storage Scheme is in advanced stage of installation and will be commissioned by March/April 1980. The second unit of Vijayawada Thermal Scheme (Stage-I) is expected to be on trial by March 1980. During the next year with; the commissioning of the second and third units of the N.S. Pumped Storage Scheme generating an additional 200 M.W. the likely installed capacity; at the end of 1980-81 would be 2398 M.W. Out of the 27,221 villages in the State 15,453 villages forming 56.7 per cent were electrified and 3,45,302 pumpsets were energised by March, 1979. During 1979-80 it was proposed to electrify 1,160 more villages and energise 42,000 more pumpsets and against this,526 villages have been electrified and 28,370 pumpsets energised by the end of 31-12-1979. In 1980-81 it is proposed to electrify 1,650 villages and energise 48,000 pumpsets.

Industries and Minerals

The provision for Industries and Minerals in the original Plan for 1979-80 was Rs. 1397.55 lakhs. Subsequently, this has been reduced to Rs. 1,162.05 lakhs mainly because the provision for Nagarjuna Fertilisers was deleted. However, allotments for the District Industries Centres as well as for the Director of Handlooms and Textiles has been increased mainly to provide for the State's share for the Centrally Sponsored Schemes implemented by them. In the Annual Plan for 1980-81, a provision of Rs. 1,173.50 lakhs has been made for this sector. The approach was to maintain the current year's level in respect of this sector for the next year also while making marginal increase in the case of Village and Small Scale Industries sector.

Transport and Communications

The original provision for this sector for the year 1979-80 was Rs. 2,646.00 lakhs. During the course of the year, on account of improvement in the resources of the A.P.S.R.T.C., it has become necessary to provide an additional allotment of Rs. 252.00 lakhs to the Corporation. Thus, the allotment to the A.P.S.R.T.C. has been increased from Rs. 1,651.00 lakhs to Rs. 1,903.00 lakhs. Taking the resources improvement of the A.P.S.R.T.C. into consideration, the outlay provided in the revised estimates for 1979-80 for this sector is Rs. 2,898.00 lakhs. The allotment for the A.P.S.R.T.C. has been increased further to Rs. 2,847.00 lakhs in 1980-81 ,on account of further improvement of its resources. To meet the increasing traffic needs in the twin cities, it is proposed to make an allocation of Rs. 25.00 lakhs for effecting improvements in traffic control in the Twin Cities.

Social and Community Services

The original provision for this sector in the Annual Plan for 1979-80 was Rs. 6134.33 lakhs. Subsequently, as a result of reclassification of certain Centrally Sponsored Schemes in the sector into 50% category, it has become necessary to increase the ceiling for the Public Health sector by about Rs. 439.00 lakhs. As a result of this, the revised outlay for this sector in the current year's Plan has come to Rs. 6,547.40 lakhs. In so far as the next year is concerned, the approach in respect of this sector has, by and large, been to maintain the current year's level. In the case of Urban Development and Urban Water Supply and Drainage Schemes however the Central Working Group itself has recommended a lesser outlay and this has been adopted for the next year. The Annual Plan outlay for 1980-81 for this sector is Rs. 6285.38 lakhs.

Economic Services

An amount of Rs. 14.51 lakhs has been provided in the Revised Plan for 1979-80 , while the allotment proposed for the next year is Rs. 22.00 lakhs

General Services

An amount of Rs. 152.00 lakhs has been provided in the Annual Plan for 1979-80 for construction of buildings for various Governments offices. The provision proposed for the next year is Rs. 125.00 lakhs.

 
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