Broke AP to Halt All Projects Taken up Before June 2

Published: 13th September 2014 06:00 AM  |   Last Updated: 12th September 2014 11:14 PM   |  A+A-


HYDERABAD: Faced with resource crunch and revenue deficit, the cash-starved Andhra Pradesh Government issued a circular directing all departments to halt projects taken up before June 2, the day state was bifurcated.

According to sources, the Finance Department directed all departments, especially Irrigation, Panchayat Raj and Housing, not to take up projects grounded before June 2.

This, in effect, means that the government has imposed a blanket ban on all the projects taken up by the previous Congress Government.

According to officials, only those viable projects which were announced after June 2 will now be entertained.

The government has also asked the heads of various departments to review all projects which have been completed up to 25 per cent and further directed them to sanction funds only to those projects whose works are progressing on schedule.

In an interesting development, the state government has also asked officials to stop works being taken up under the National Rural Employment Guarantee Scheme (NREGS) in the state.

According to sources, the decision will affect the works relating to about 7.95 lakh houses.

It is learnt that the government also has to make payments to the tune of `450 crore to contractors involved in the construction of houses under various schemes.

The payment will further be delayed due to the decision.

With respect to irrigation schemes, the state has 54 under-construction schemes.

With the Budget showing a revenue deficit of `6,064 crore, Chief Minister N Chandrababu Naidu is left with no other option but to stall projects which do not improve the state’s financial position.

Stay up to date on all the latest Andhra Pradesh news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp