 bill no  201 of  2017 the andhra pradesh reorganisation (amendment) bill, 2017 by shri jayadev galla, mp a billfurther to amend the andhra pradesh reorganisation act, 2014be it enacted by parliament in the sixty-eighth year of the republic of  india as follows:—6 of 2014amendment of section 462 in section 46 of the andhra pradesh reorganisation act, 2014 (hereinafter referred to as the principal act), for sub-section (2), the following sub-section shall be substituted, namely:—5"(2) notwithstanding anything in sub-section (1), the central government shall make necessary grants and also ensure that adequate benefits and incentives in the form of special development package on the lines of bundelkhand area and kbk districts in odisha are given to the backward areas of successor state of andhra pradesh"insertion of new part v a103 in the principal act, after part v, the following new part and sections thereunder shall be inserted, namely:— "part v a special development package to the successor state of andhra pradesh1546a notwithstanding anything contained in any other law for the time being in force, the successor state of andhra pradesh shall be granted special development package with effect from the 1st day of january, 2015 for a period of ten yearsspecial development package to the successor state of andhra pradesh46b the central government shall bear the entire expenditure of externally-aided projects in respect of successor state of andhra pradesh with effect from 1st day of january, 2015 for a period of ten yearscentral government to bear expenditure of externallyaided projects20concessions with regard to taxes and grants46c notwithstanding anything contained in any other law for the time being in force, the successor state of andhra pradesh shall, by virtue of being granted special development package, be provided, in particular, the following concessions with regard to tax revenues and grants—39 of 2003 25(i) fixation of limt under the fiscal responsibility and budget management act,2003, for successor state of andhra pradesh at five per cent of state gross domestic product with effect from the 1st day of april, 2015 for a period of ten years;(ii) concessions in investment allowance, accelerated depreciation, industrial incentives and other tax concessions in line with himachal pradesh and jammu and kashmir within three months from the date of coming into force of this act; and30(iii) exemption in capital gains tax on the sale of developed land in the capital region of amaravati"amendment of section 904 in section 90 of the principal act, after sub-section (4), the following sub-section shall be inserted, namely:—35"(5) the central government shall bear the entire cost of the project including expenditure on rehabilitation and resettlement and reimburse to the successor state of andhra pradesh, the expenditure incurred by it till 31st day of march, 2014"5 in thethirteenth schedule to the principal act, under the heading "infrastructure", for paragraph (8), the following paragraph shall be substituted, namely:—amendment of thirteenth schedule"(8) indian railway shall, within six months from the coming into force of this act, establish a new railway zone at vishakhapatnam in the successor state of andhra pradesh" statement of objects and reasonsthe union finance minister announced a special development package for andhra pradesh on 7th september, 2016, and also made a statement that 'government of india will support andhra pradesh to the hilt'there is no doubt that special development package includes full funding of polavaram project, tax concessions, special assistance, apart from other fiscal measures to the state of andhra pradesh but, the demand and the need of the hour for a level-playing field to the state of andhra pradesh can only be achieved if industrial incentives and other tax concessions are given at par with himachal pradesh and jammu and kashmirclause 2 of the bill talks about giving special package for development of backward districts of andhra pradesh but, the assurance of the prime minister on the floor of parliament is that special package to ap would be given on the lines of bundelkhand region and kbk districts of odisha this was missing in the ap reorganisation act hence, it is proposed to include this in this bill to fulfill the assurance given by the prime ministersecondly, andhra pradesh is given development package due to immense loss it has suffered aftr bifurcation and, financial/development packages with different nomenclatures were announced to various states and regions earlier and everybody knows the fate of such announcements so, looking at the past experience, people of andhra pradesh are apprehensive that this development package may also meet the same fate in view of this, there have been demands from various quarters and also from the chief minister and the finance minister of andhra pradesh for giving legislative backing to the entire special development package announced on 7th september, 2016, and also to implement the package in a fixed time-framein view of the above, there is a need to amend the andhra pradesh reorganisation act,2014, to give legislative backing to the special development package to legitimize the announcement made by government of india the union  finance minister also assured that he would take steps to exempt capital gains tax on the sale of developed land in the capital region of amaravatihence this billnew delhi;jayadev gallafebruary 1, 2017________ president's recommendation under articles 117(1), 274(1)  and 1173(3) of the constitution ________[copy of letter no 16017/01/2017-sr dated 1 november, 2017 from shri hansraj gangaram ahir, minister of state in the ministry of home affairs to the secretary general, lok sabha]the president, having been informed of the subject matter of the andhra pradesh reorganisation (amendment) bill, 2017 (amendment of section 46, etc) by shri jayadev galla, mp, has recommended under articles 117(1), 274(1) and 117(3) of the constitution for introduction and consideration of the bill in lok sabha, respectively financial memorandumclause 2 of the bill seeks to make available necessary grants for the backward areas of the successor state of andhra pradesh clause 3 seeks to provide a special development package to the successor state of andhra pradesh clause 4 provides that the polavaram project shall be funded by the union government entirely as the sums of moneys will be given to the successor state of andhra pradesh as special development package concessions and grants by appropriation, by law, made by parliament, it is not possible to give the estimates of recurring expenditure, which would be involved out of the consolidated fund of india at this stageno non-recurring expenditure is likely to be incurred from the consolidated fund of india annexureextract from the andhra pradesh reorganisation act, 2014(6 of 2014)46 (1)    distribution of revenue(2) notwithstanding anything in sub-section (1), the central government may, having regard to the resources available to the successor state of andhra pradesh, make appropriate grants and also ensure that adequate benefits and incentives in the form of special development package are given to the backward areas of that state(3)    90 (1)    (2)    (3)    polavaram irrigation project to be a national project(4) the central government shall execute the project and obtain all requisite clearances including environmental, forests, and rehabilitation and resettlement norms     the thirteenth schedule            (8) indian railway shall, within six months from the appointed day, examine establishing a new railway zone in the successor state of andhra pradesh and take an expeditious decision thereon;     lok  sabha———— a billfurther to amend the andhra pradesh reorganisation act, 2014————(shri jayadev galla, mp)gmgipmrnd—4681ls(s3)—10-11-2017