New Delhi: The Centre has reportedly turned down Andhra Pradesh chief minister N Chandrababu Naidu's request for Rs 20,000 cr financial assistance to construct a world-class capital in the state.
The NDA government has informed the Andhra Pradesh that it does not have the required amount sought by the state for construction of the new capital, a report published in The Times of India suggests. However, the central government said it will finance the building of key structures like the assembly and secretariat.
AP has made such a request last week stating that it urgently required Rs 20,000 crore by the end of the current financial year as it wants to perform the 'bhoomi puja' in June this year.
"Give us a list of key structures that need to be constructed in the new capital. We will give funds for the same. A blanket release of Rs 20,000 crore as asked for by AP is not possible in view of the financial crunch," the Centre reportedly informed the state.
According to the sources, the CM is now worried as to how the denial of 'special status' will have a cascading effect on his other development plans.
Naidu is expected to raise the issues with the Prime Minister and other Union ministers during his two-day stay in Delhi from Sunday.
The denial of the 'special status' might also hold back new investors as special incentives act as a major attraction for them.
