AP Depts. said to speed up reforms and demanded more than ₹ 3,500 cr. within the central system
District Collectors and senior officials who will attend the Collectors Conference at the Secretariat in Amaravati on Thursday. | Photo credit: SPECIAL ARRANGEMENT
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Andhra Pradesh is working to release an additional ₹3,525 crore in Special Assistance for Capital Investment (SASCI) incentives in 2026-27, with the state government asking ministries to complete a set of prescribed reforms by December 1 to qualify for the funds.
This topic was reviewed in detail at the Collectors conference in the section “Financial Restructuring – A Creative Approach”.
Finance Principal Secretary Piyush Kumar and Minister D. Ronald Rose said the state has the potential to secure ₹8,226 crore under SASCI during the current financial year. Of this, ₹3,486 crore has already been received, including ₹1,923 crore in unconditional capital funds, ₹266 crore for state share in central schemes and ₹1,297 crore as incentive to increase capital expenditure.
Mining reforms could bring in an additional ₹950 crore. These include the integration of the mining portal, the establishment of a pre-auction committee and the finalization of the annual auction calendar. An additional ₹ 250 crore is available under the Telecom Right of Way component, subject to portal integration and acceleration of BharatNet entitlements.
The state could earn ₹ 1,450 crore under AgriStack by digitizing fertilizer distribution, purchase at support prices, village mapping and satellite mapping of survey numbers. Reforms in the livestock sector could bring in ₹250 crore, while implementation of the SNA-SPARSH system could bring in ₹450 crore. An additional ₹ 175 crore is available through the implementation of the compressed biogas policy.
Public health-related performance could yield up to ₹650 million, including incentives linked to reductions in infant and maternal mortality, securing NQAS certification for government hospitals and reductions in TB deaths.
Variation in the use of funds
The Treasury’s push for reforms comes amid wide disparities in the use of central system funds. Andhra Pradesh is implementing 86 centrally-sponsored schemes in 2026–27, with the Center allocating ₹25,304 crore. Of the ₹10,552 crore received so far, the state has utilized ₹8,694 crore or 47% as of September 7. Including previous balances and adjustments, ₹ 18,516 crore is currently available with the implementing departments.
While the BC Welfare Department utilized 99% of its available funds, Panchayat Raj and Rural Development spent 38%, Housing 26% and Water Resources only 6%. In terms of districts, Chittoor peaked at 87% utilization while Vizianagaram was at the bottom with 52%.
Officials also reviewed the matter of ₹135 crore lying in SNA accounts and directed the department to close 88 inactive SNA accounts in 20 departments. The interest earned on the centre’s share is to be remitted to the center through PFMS and the remaining balances are applied before the account is closed.
Recovery of funds
The state is also seeking recovery of ₹116.98 crore in canceled maternity penalties, with the department directed to take up the matter with the Union ministries concerned.
The conference, presided over by Chief Minister N. Chandrababu Naidu, also reviewed four projects started from SASCI funds during 2023-25. Against ₹516.35 crore that was sanctioned, ₹313.27 crore has been released and ₹173.17 crore has been spent so far. Officials have been asked to ensure speedy implementation and close coordination with the Centre.
Departments have been instructed to complete all prescribed SASCI reforms by December 1 and share every communication sent to Union ministries with the state finance ministry and the Andhra Pradesh Bhavan in New Delhi.
Published – 10 Sep 2026 19:54 IST