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Introduction to AP Welfare Schemes

Andhra Pradesh in numerics: (collected from Lok Satta’s “JANA BALAM” [Strength of People], the Telugu Monthly magazine-January 2006 edition)

Area of the State (Sq. KMs) : 2,75,045
Density of population (per Sq. KM) : 277
No. of families                                
: 1,70,04,305
No. of Districts                              
: 23
Total population                             
: 7,62,10,007
: 3,85,27,413
: 3,76,82,594
Scheduled Tribes percentage        
: 6.59
Scheduled Casts percentage      
: 16.19
Literacy percentage                       
: 60.47
Literacy percentage in Men:         
: 70.37
Literacy percentage in Women:         : 50.43

Population in Gram Panchayats of various States:


Sl.  Name of the State         Village              No. of Gram     No. of   |  Average population

No.                                     Population         Panchayats       Villages|  in Gram Panchayat


  1. Rajasthan                      43,267,678         9,188                41,353               4.709
  2. Bihar                            74,199,596         12,181               45,113               6,091
  3. Assam                          23,248,994         2,489                26,247               9,341
  4. West Bengal                 57,734,690         3,360                40,793               17,183
  5. Orissa                           31,210,602         5,254                51,349               5,940
  6. A. P.                            55,223,944         21,944               28,123               2,517
  7. Karnataka                     38,814,100         5,659                29,483               6,859
  8. Kerala                          23,571,484         991                   1,364                23,786



Andhra Pradesh is at the threshold of a  landmark movement  of   infrastructure development   transforming  the  state into a choicest   investment destination of  global  industrial and  IT majors  but also providing  benefits of economic reforms to the poorest of poor.

Over the past  four years  the  state has been  taking giant  strides in fulfilling the  dreams of  farmers, educated youth,  women, minorities, SC and ST’s  and also  BC’s  to achieve saturation levels  economic , Social and political growth.

Under the able and dynamic leadership of the chief minister Dr.Y.S.Rajasekhara Reddy the state government unleashed multifarious program to bring about a comprehensive and sustained development of infrastructure in villages and owns to stop migration of poor and also to provide gainful employment to one and all eligible persons.

Unlike  in the previous  regimes  , the  Rajasekahra Reddy has achieved  stellar  growth rate of 12 percent in GSDP in the current year and has set froth the path of high frequency economic activity with an all time high record  budgetary outlay of  Rs.1,00,346 crore  fir  2008-09.

The scale of development, investments in industry, Housing program, Irrigation projects,  production, IT exports , social welfare  initiatives,  farmers  welfare initiatives have ushered in an unprecedented levels of economic activity in the state  unheard  off  in the last   60 years.

Thanks to various steps of financial discipline, accountability in administration  and  corrective measures  that  the once  a state  of heavy  public debt  has now turned around to become a role model state in investment and social welfare  with a human face.

The result of the hard toil and timely steps  are already visible  in the record production of  180 lakh tonnes  of food grain , 6 lakh  acres of  land distribution to landless ,  provision of  irrigation  to  14 lakha acres,  construction of  nearly  12 lakh INDIRAMMA  houses , free power   to 27 lakh agri pump sets,   17,000 life saving operations under Arogyasr, 20,000  Kalyanamastu marriages for  poorest of the poor.

“Never I have witnessed  such  a strong  will  for development of the state   and provision of  benefits to the poor in the  history of  Andhra Pradesh as under  leadership of  Y S Rajasekahra Reddy“   says  veteran bureaucrat  in  the state.


The State achieving the growth rate  of  12 percent  and clocked spectacular  GSDP of  Rs.229461 crores  as against the all India  GDP of just  8.37 percent  at  Rs.3114450 crore.

The state had also achieved a per capita income of Rs.33970 at 14.83 percent in 2007-08 as against the national average of Rs.33131 at 11.77 percent.


The farm sector in the state is on up-swing street with cropping operation in record 82 lakh hectares and projected production 190 lakh metric tones of food grains and pulses in the current khariff season.

AP has improved its position in food grain from the 6th position to 3rd position. Oil seeds production is expected to be 29 lakh metric tones, a growth of 61.80 percent. As for crop productivity, this years kharif season recorded the highest ever productivity in rice, maize and groundnut.

The UPA Government initiative of farmers loan waiver announced in the Union budget will help nearly 60 lakh small and marginal farmers in Andhra Pradesh to the tune of Rs.12000 crore. The farmers are already beneficiaries of a special interest waiver scheme of the Prime Minister in 2005-06 to the tune of Rs.1962 crore.

In the 2008-09 budget the state government has provided an allocation of Rs.1666 crore for agriculture (257 percent increase) besides a Rs.2723 crore allocation for the Agriculture and allied sector (against Rs.116 crore of last year) registering a 144 percent increase over previous year.

They include provision of easy and low cost agriculture credit at 3 percent interest to agriculture sector (PAVALA VADDI) and a sum of Rs.310 crore allocated during the year 2008-09.

The objective is to achieve a four percent growth in agriculture and allied sector. Rashtriya Krishi Vikas Yojana is being implemented with a fund of Rs.400 crore. A unique Pasu Kranti scheme to promote livestock with Rs.200 crore allocation has been launched in state to distribute one lakh milch animals.  A centre for advance research on livestock at Pulivendula, Kadapa district over 644 acres with Rs.100 crore also being grounded in the current year.


Andhra Pradesh has a role model state in the country in exploiting the opportunities available in the Information Technology for employment generation and also low cost and efficient delivery of citizen services to the common man.

IT industry friendly policies have attracted large investments from IT giants like – Microsoft, Oracle, Dell, Motorola, Genpat, Amazon, UBS, UTKS, Delloit and HSBC. While there were only 909 IT companies during TDP regime the number rose to 1234 by 2007. AP also joined the billion dollar club by clocking a software exports worth Rs.18,582 crore in 2006-07, an 48 percent growth as against  just Rs.5025 crore in 2003-04. AP is geared to cross the Rs,26,000 crore in software exports by March 2008.

As against 85,945 software engineers employed in between 1998-2003 a record 1,01,505 IT jobs were created by 2006-07 totaling to 187450 .This was possible due to the initiatives for improving the soft skills of graduates from rural and urban areas through the Jawahar Knowledge centers (JKC) promoted in almost every third  educational institution at all district headquarters in the state.

The IT sector in AP had attracted  an investment  of Rs.3533 crore till 2003-04 but the pro-active policies of the present  government had succeeded in  procuring  Rs.10,442 crore investment in the IT sector in the last four years. “A record Rs.7000 crore investment were made in 2007-08 alone“ says the chief minister.

As part of its  promotion of the IT sector the state Government has given land to 95 IT giants which have so far provided employment of  1,47,264 persons since 2004. The proposed employment potential in the sector in the next three years is expected to be 3,13,962 besides indirect employment to 12 lakh persons.

The massive  infrastructure program in IT sector  envisaged creation of 50 million sft., infrastructure to provide five lakh jobs through 40 IT SEZ’s (10 in Government sector) and 10 private IT parks as part of blue print to make AP as the choicest destination of IT/ITES and BPO destination.

The state government took up measures to not only to attract   multinational IT companies  to Hyderabad from Bangalore  but also to promote ITES units in  tier-2  and tier-3 cities of the State to absorb the talented youth  in rural areas.


Andhra Pradesh has ushered in a massive urban and infrastructure program to make it attractive for investors and also comfortable for the urban and rural poor. It has unleashed major infrastructure initiatives in Hyderabad and select cities like Visakhapatnam, Vjayawada etc., to make the state an investors’ destination in the entire Asian continent.

The proactive initiatives of Dr.Y.S. Rajasekhara Reddy government had resulted in catapulting the state into an investor friendly state. In 2007 AP has  been adjudged by the RBI as the No-2 state in the country to attract industrial investments  of Rs.25,173 crore  next only to Gujarat  and the latest  CII  survey has designated AP as the best performing state in the manufacturing sector among the  southern states.

Now termed as Greater Hyderabad the Andhra state capital is a hot destination of investors in IT, BT and automotive sector from across the globe and is the focus of massive urban infrastructure development.

Hyderabad is the focus of an Rs.26,257 crore (over five billion dollar) infrastructure program including Greenfield international airport, elevated express highway, Metro rail, fly-overs, Outer ring road, state of art drinking water systems etc, Charminar Pedestrian project, and rejuvenation of lakes .


Andhra Pradesh has clocked a record food production of 190 lakh tonnes in 2007-08 as against   132 lakh tone s of   2003-04.

Such a feat has been possible because of state Government’s  initiatives  in Agriculture like  free power, Adarsha Rythu , Palle bata, institutional credit to agriculture and subsidies in seeds, fertilizers and massive irrigation  under JALAYAGNAM.


The state has pioneered in provide saturation level of comforts to the poorest of the poor in both rural and urban areas. Under the   INDIRAMMA (Integrated Development of Rural Areas and Model Municipal Areas) aims to provide basic amenities like pucca roads, electrification, protected drinking water, flush-out toilets, schools, hospitals and anganwadis, pensions to old and widows. The major component of housing is expected to reach a minimum of 75 lakh families of homeless in the state.

The government has built nearly 12 lakh houses and also allocated a budget of Rs. 5850 for housing program which included building of affordable homes for middle class families s under the Rajiv Swagruha scheme.


Under the JALAYAGNAM program the objective of the Rajasekhara Reddy  government is  to  bring 1,22,84,151 acres of parched land under irrigation by  constructing Irrigation projects on various major and minor rivers such as  Krishna, Godavari, Vamshadhara and Pranahita  at a cost of Rs. One lakh core.

By achieving provision of irrigation to 14 lakhs acres already the mission of JALAYAGNAM to resurrect the glory of AP as a rice bowl of India –Annapurna - is not far away.

The state government has provided for an allocation of Rs.16500 crore in the current year budget for JALAYAGNAM.


Since 2005 the state government has facilitated free heart surgery in corporate hospitals for infants with heart ailments from the poor families in Andhra Pradesh. So far nearly 7000 little hearts have been operated.

AP is the first state to launch the rural health insurance scheme of Rajiv Arogyasri facilitating all BPL families insurance coverage up to Rs.Two lakhs. The Rajiv health mission provides the free ambulances services in rural areas through toll free helpline of 108 and free medical counseling and information on the toll-free helpline 104.

Till now  under the Aroyagree scheme  nearly 18,000 operations have been conducted and the  EMTRI  service of  ambulances  under  toll free phone  now  108 has also saved  over 20,000  lives  since  its inception in 2005.


The unique experiment of differential interest rate loans to rural woman under the Self Help Groups have succeeded in transforming the rural women into growth engines in villages.  Nearly 85 lakh women have formed 7 lakh groups to benefit from the corpus of Rs.3000 crore and raised so far Rs.7000 crore from the banks in the form of Pavala vaddi loans.

The state Government proposes to provide the subsidy of Pavala VAddi to nearly Rs.10,000 crore bank loans during the current year.


Andhra Pradesh has pioneered provision of free power to farmers as a agricultural input. The chief minister Y S Rajasekahra Reddy signed on the free power file as he was sworn in for the office on May 15 2004.  He also waived power dues of Rs.1200 crore of farmers on the same day.

The power allocation to the agricultural sector, which was 13,398 MU in the year 2004-05, touched the peak of almost 15,538 MU by 2006-07.

The state government has provided Rs.2385 crore towards power subsidy including domestic, industry and free power to farms in the 2008-09 budget as against Rs.2425 crore in the previous year.

Government has provided a subsidy of Rs.1929 crores, Rs.2063 crores and Rs.3745 crores power subsidy to agricultural sector from 2004-05 to 2006-07 respectively. Apart from this an additional subsidy of Rs.2600 crores was allocated for additional power purchases for financial year 2007-08. During 2008-09 the AP Government has announced free power for the raising of nurseries as well.

As against the installed capacity of 12,339 MW, the Government plans to add another 13,661 MW (APGENCO-7109 MW, 2650 MW-central sector, 993 MW-private sector-gas, 309 MW non-conventional and 1600 MW through Ultra mega projects) will be completed in the 11th plan period.

As against the 183.78 lakh consumers the per capita consumption has reached 673 kWh per individual.

It has to be noted that  the  T&D losses have been reduced   to 18.51 percent  as  against  19.82 percent and during the  current  year  3204 habitations and  8,00,452 house-holds  would be electrified under the Rajiv Grameena Vidhudikarana Yojana.

During the year the electricity charges for the industrial sector have been reduced to Rs.3.56 per unit from Rs.3.70.

To meet the ever-growing demand for power the State Government has initiated measures to generate 277 MW in 2007-08 and totally add 7029 MW in the 11th plan period. APGENCO has plans to add 288 MW of power to the grid by the end of 11th five-year plan. During 2007-08 one unit of 210 MW of Rayalaseema thermal power project was commissioned and plans are to add another 288 MW thermal and 78 MW Hydel.

There has been no hike in power tariff for the 1.47 crores domestic power consumers in Andhra Pradesh despite the spiraling fuel cost and power purchase cost. AP has joined the club of states, which have lowest domestic tariff of Rs.2.30 per unit in the country. It has also staggered tariff to industrial sector from Rs.4.26 to Rs.3.56 per unit in a novel measure to attract investment and promotion of industrial infrastructure in the state. The government has announced Rs.1.00 per unit rebate for the food processing industries.


AP is in the forefront in implementing rural employment guarantee scheme unique for its social safety net as it is right-based and demand –driven. It is presently implemented in 19 districts covering 43,30,719 households and 66.90 lakh wage laborers provided work and wages through their postal savings accounts . During 2007-08 APREGP has created 12.67 man days at an expenditure of  Rs.1313 crore.

During 2008-09 the scheme will be extended to another three districts to provide 100 days guaranteed work to eight million rural households at an proposed cost of Rs.3000 crore of which the state share of Rs.300 crore is provided in the state budget for the current year. 


Micro Irrigation is making a big headway in Andhra Pradesh. While for over 10 years i.e. prior to 2004-05, 30 schemes were taken up under normal plan at the cost of Rs.65 crore  only  under  minor irrigation,  in the last three years alone 74 new works were taken up at the cost of Rs.219 crore.

Andhra Pradesh can boast of 77,391 sources under minor irrigation with 42,49,138 acres of  cultivation. While the total area under minor irrigation till 2003-04 was only 8.47 lakh acres it shot to 17.50 by 2007-08.


Under the dynamic leadership of Dr.Y.S.Rajasekhara Reddy Andhra Pradesh has achieved its past glory as a progressive and industrially advanced state.

As per Reserve Bank of India Report (Aug 2007) Andhra Pradesh Ranks 2nd among the States in the country in attracting industrial investments worth  Rs.25,173 crores during  2006-07, next only to Gujarat.

Similarly the recent survey of CII AP has been adjudged as the BEST PERFORMING STATE in the manufacturing sector among the southern states.

A recent survey by the CII has projected AP as the choicest destination for investment in manufacturing sector with a 10-15 percent growth annually.

The index of industrial production as of November 2007 has shown a growth of 15.1 percent in Andhra Pradesh as against an 9.2 percent growth  at the national level.

As per the latest Economic Survey submitted to the AP Legislative Assembly on February 16th, the growth rate in the manufacturing sector has reached 10.20 percent in 2006-07 as against 6.09 percent in 2004-05. The state has also received  an industrial investment of Rs. 12,350 crore in the last  three and half years  and also generated  employment  to  1,72,616 persons.

The state budget projected an investment of Rs.38,671 crore in the next two–three years and creation of 1,30,458 jobs.

AP has promoted 71 Special Economic Zones (SEZ) of which 52 have been notified by the Government of India with a potential of investment of 35,000 crore and creation of employment for 25 lakh persons.  AP is promoting more and more product specific SEZ’s like Food Processing, Pharmaceuticals, Textiles, Leather, Biotechnology, Gems & Jewelry. Of the total, 31 SEZ’s are being developed in the private sector.

The state has taken initiative to revive seven cooperative sugar factories with financial assistance from the National Cooperative Development Corporation.


An unprecedented silent revolution is being rolled out in Andhra Pradesh to infuse quality education in the present academic system in the state from the grass root level.

The state government led by dynamic chief minister Y S Rajasekhara Reddy has plans to introduce quality education methods and institutions all over the state with an investment of Rs.30,000 crore  in the next  six years.

The state has earned yet another niche globally in its quality education programs. It is a matter of pride that AP has been ranked No-1 in the 5th joint review mission of the World Bank for the Technical education quality improvement program (TEQIP).

For the first time in the country Andhra Pradesh has pioneered the promotion of EBC (economically backward classes) irrespective of caste and creed with scholarships. In the current budget for 20078-09 a sum of Rs.25 crore is provided for catering to this sector.

In the current budget the allocation for BC and Minorities has been increased to Rs.423 crore (as against Rs.287 crores of previous year). Similarly the tuition fee reimbursement allocations have also been increased from Rs.50 to Rs.185 crore for all sections of the society.

For improving the quality of education and infrastructural facilities in 636 residential schools in government sector a project with an outlay of R.5350 crore is taken up for which Rs.400 crore is provided in the current budget.

The allocation for the school education department has been increased to Rs.8655 crore from the present Rs.6181 crore, a 40 percent increase.

The Government has set up three new Indian Institute of Information Technologies (IIIT) - each at Idupulapaya (Kadpa), Basara (Adilabad) and Nuziveedu (Krishna) district with an allocation of Rs. 320 crore in the current years budget.

The state school education minister says that the literacy rate in AP was only 60.47 percent as against the national average of 64.28 percent Andhra Pradesh accounted for 96277 schools and a total of five lakh teachers of which only ten percent were in private sector. There were nearly 65,317 vidya volunteers.

By end of 2006-07 the total enrolments in schools stood at 1.44 crore students. The school drop outs has also reduced from 4.64 lakh students in 2004-05 to 1.36 lakh in the current year. As per a recent official study Andhra Pradesh produced 1.26 lakh Engineers and Pharmacy graduates, 4.26 lakh general graduates, 46,212 post-graduates, 4100 Medicine graduates, 10,800 Law, 38,529 – B.Ed, 16,875 –MBA and 21,850- MCA’s every year (source 2006-Official Records of Higher Secondary Education). There were 282 engineering colleges, 112 B.Phamacy, 273 MCA, 197 MBA, 142 Polytechnics in the state.


For the year 2008-09 the State Government has provided Rs. 1293 crore as against Rs.826 crore (an increase of 57 percent) in the social welfare budget for the benefit of the communities which account for nearly 65 percent of the state population (50 percent BC, SC/ST-15 percent).

AP has taken lead to provide scholarships and educational benefits to the EBC category in the state on par with the other socially backward sections. The budget for the social sector has gone up to a record Rs.4057 crore in 2008 as against only Rs.860.54 crore during 2004.


The state government has plans to provide nearly 50 lakh old age and widows by 2009 in fulfiment of its assurances to the people.

As part of its welfare initiatives the YS government has hiked the old age pension from a meager Rs.75 of TDP period to Rs.200 and has shouldered the responsibility for proper and timely disbursement of all pensions including that of physically handicapped to the village committees and SHG’s.

The chief minister Dr.Y.S.Rajasekhara Reddy has very recently announced the government policy to provide a quantum jump in pensions to the aged and widows and physically challenged persons in the state. Presently a sum of Rs.861.85 crore was disbursed annually in the form of pensions to the 31, 22,847 rural poor in the state.


The state government has provided an comprehensive and multi purpose NEW ration cards to nearly 50.58 lakh families as against only 12.20 lakh cards issued by the 9 year regime of TDP.

In all nearly 1.82 crore BPL families have been provided white ration cards which will enable them for housing under INDIRAMMA, LPG gas. Presently there were nearly 95  lakh families  having the  white ration card which makes them eligible for several benefits like housing, house pattas, cheap rice  and kerosene. Another 20 lakh families have pink ration cards meant for the upper middle classes. “We have issued multipurpose cards with Iris eye–identification so that the cards become basic ID for future “says the civil supplies minister Kasu Krishna Reddy.


Andhra Pradesh is endowed with 50.24 lakh tribal population over six percent of the state population of which while 30-47 lakhs lived in notified tribal areas, 19.53 lakhs lived in plains.

Since 2004 a total sum of  Rs.2988.24 crore have been spent on  the   integrated tribal development plans and programs on education, health, sanitation and  housing programs for the poor in the state   under  both the  plan and  non-plan categories  and an additional allocation of  Rs.63.03 crore has been made  during the  2007-08.

The state government has provided   Rs.440 crore for tribal development in the budget of 2008-09 registering an increase of 39 percent against Rs.317 crore of previous year. A sum of Rs. 41 crore was provided towards scholarships for the tribal students alone.


The focus of the Youth Services Department is to encourage students to take up vocational training and also skill development programs.  While the Jawahar Knowledge Centres helped the educated youth to   learn soft skills to be easily absorbed in IT, ITES jobs, the youth services took up the task of training semi-educated sections of the society.

In the current budget  for  2008-09 the  state government  provided  Rs.175 crore  as against  Rs.140 crore of  last year  for the Rajiv Yuva shakti program.

In the current budget for 2008-09 the state government has provided Rs.130 crore for the Rajiv Udyogasri  program aimed  at  promoting skills among  rural and semi urban youth  and  make them compatible for  new economy  jobs.

Under the SUCCESS scheme the state government has provided Rs.250 crore (25 percent state share) for the Rs.1000 crore centrally sponsored scheme to improve the level of education and skills of students  in rural  schools.

Under the Indira Kranti patham – urban so far 71,000 groups are linked to banks with an amount of Rs 340.97 crores which had helped to reduce the interest burden on each of the urban poor family from Rs.1644/- to Rs.137/- per family per annum. It is proposed to link another 80,000 groups with Rs.400 crores in this year 2007-08.

The AP Government has formulated an innovative scheme called UPADHI (Urban Programme for Advancement of Household Income) with a vision to focus and provide livelihoods to the poorest of the poor in slum areas under the 100% placement–cum training program.

The goal is to provide the potential livelihood options for poor urban youth between the age group of 18-35 through skills building as per market requirements. So far 37,950 youth are trained and 29,750 are given placements.

NAC – National Academy of Construction:

The Government provided skill development and training to the BPL youth under NAC in world-class construction standards in skilled workmanship and productivity with an assured 100 percent placement. 2752 persons have so far been trained and 1509 are given placements. Placement linked training to about 10,000 construction workers in towns are contemplated in the next one year.


With an ambition to reduce the vulnerability of the challenged urban poor by organising them into SHG, the AP government invested in building their capacities, providing them bank linkages, and sustainable livelihoods. In the last one year 15,407 disabled persons are organized into 3529 SHGs, of which 896 groups are linked to banks with an outlay of Rs.402 lakhs. Further proposed to form another 4000 groups in the next two years to accrue all the above benefits and provision of barrier free environment in public institutions.

The Government launched the Rajiv Yuva shakti to empower the youth through self-employment schemes and capacity building and financial assistance in the form of subsidies and facilitate them with bank loans.

Under the scheme  loans  upto Rs. five lakhs were provided to set up ,06,690 units covering 1,25,997 youth with an outlay of Rs.754.20 crore.

Under the Employment Generation and Marketing Mission (EGMM) of the Department of Rural Development works in a focused manner to provide employment/ employability for the rural youth from the economically and socially under- privileged rural poor.

As part of the mission 191 training institutes have been set up in sectors ranging from services, construction to textiles, with a focus on tribal and remote areas. As of now 77,425 youth have been trained in the last two and half years and 17,500 youth are currently in the classrooms. 80% of the youth trained have been linked to entry level private sector jobs with annual salaries ranging from Rs.45,000 upwards in metros and Rs.24,000 upwards in semi-urban areas.


The congress rule is a god-send for the Minorities, both Muslims and Christians in Andhra Pradesh.

For the first time in decades the State Government has provided the e poor Muslims and Christians opportunity of unique instrument of development through the PAVALA VADDI scheme in the state.

The budgetary allocation for minority welfare had been enhanced in the last three years of Congress rule by over 25 percent. While in the nine years of TDP rule an amount of Rs.148.70 crore were spent on Minority welfare, in the three years of Congress regime a sum of Rs.118.70 crore has already been spent.

In the year 2007-08 the Chief Minister Dr. Y.S.Rajasekhara Reddy leadership has been allocated an amount of Rs.120.00 crore.

“Promotion of education is the only route for eradication of poverty among the middle and lower income groups in the community”, the Chief Minister said while formalizing the poll promise to provide Muslims a five percent quota in both educational institutions and also government jobs.

The  AP government has provided  Rs.177 crore for minority welfare  in the budget for  2008-09   as against  Rs.120 crore of previous  year  resulting in an  47 percent increase in the allocations. It has provided Rs. Five crore towards mass marriages for mass marriages among Muslims and Rs.Two crore for Christian pilgrimages to Israel.


The predicament of the Handloom weaver in Andhra Pradesh was manifold. As the lobbies of the power loom sector took over his livelihood, the official patronization also dwindled gradually leading him to the dire straits of suicides. The steep hike in prices of yarn and dyes added to his misery and drove him to starvation and his women to flesh trade for the sake of feeding two morsels to their children.

That was the state of affairs of weavers in the TDP regime wherein nearly 189 handloom weavers committed suicides till 2004. “It was sad that the rural artisans like handloom weavers had no place in the growth module of Andhra Pradesh”  said the chief minister Dr.Y.S.Rajasekhara Reddy who directed the officials to workout a  master plan for promotion of handloom and also give relief to the weavers revive their economies.

Early this month the chief minister took a momentous decision to facilitate the handloom weavers with PAVALA VADDI loans at just   three percent interest loans. Government will implement Pavala Vaddi Scheme to nearly 2.60 lakh weavers covered under the  Weavers Co-Op Societies  and also those outside it   at a cost of  Rs  20.16 crore.

The state government has plans to extend the PAVALA VADDI and Health Insurance schemes for the weavers during 2008-09 a sum of Rs.16.09 crore  is provided  in the  budget towards the PAVALA VADDI for the  weavers. It has provided a financial assistance of Rs.34.40 crore in .budget to train and provide infrastructure support for the handloom sector.


Hyderabad, the fifth largest metropolis of India, is no more just a city of Nawabs or the Charminar.  It is now a hot destination of investors in IT, BT and automotive sector from across the globe. Very recently it has been upgraded into Greater Hyderabad Municipal Corporation and has been the focal of massive urban infrastructure development programs to match with its pace of economic activity.

The Greater Hyderabad Municipal Corporation was formed by merging 12 municipalities and 600 villages around Hyderabad to provide a central security system and civic infrastructure to the scores of R&D, Key Defense and scientific institutions, multinational IT conglomerates, global financial companies that have sprung up around Hyderabad need to be secured and monitored.

“I am glad that  Hyderabad is the centre of an  Rs.26,257 crore   (over five billion dollar) infrastructure program including Greenfield international airport, elevated express highway, Metro rail fly-overs, Outer ring road, state of art drinking water systems etc.,” said the Chief Minister Dr.Y.S.Rajasekhara Reddy in an recent media interview.


Andhra Pradesh Government has taken lead to provide food security to the poorest of the poor in the state to ensure against migrations, starvation deaths and suicides.

Hailing the food security as one of the hall marks of his administration the chief minister Dr.Y.S.Rajasekahra Reddy said that provision of  two square meals  a day , shelter , and  medical aid  to all the poor  was  a priority task of his  government. After  months of  preparations , the AP government  plans to introduce the  Rs.two Kg rice to the  nearly  1.82 crore  BPL families   with white ration cards  in the state  from  the Ugadi day, on April  7, 2008. The scheme will cost an additional burden of Rs. 1980 crore to the exchequer as against Rs.720 crore in the previous year.  All BPL families will be provided 25 Kgs of rice at just Rs. Two per Kg while the state absorbed the   huge margin of over Rs.12 per kg.

The government has now decided to sell dal and edible oils also in the fair price shops at subsidized rates.


Andhra Pradesh m with a 970 km long coast line and abundant water, power and mineral resources in addition to talented pool of man power has become a role model for the setting up of Special Economic Zones.

IN view of the highly stable political scenario and natural resources, the Government of India has sanctioned  71  SEZ’s of which  46 have been notified and 19 have been formally approved and five others have received in-principle approvals.

The SRI City SEZ is a multi product facility located 75 kms from Tirupati over   1023 hectares, is just 65 kms from the major port of Chennai and 40 kms from Ennore and 65 Kms from Krishnapatnam ports.

The Kakinada SEZ spread over 1000 acres of 16 villages aims to provide a petro-chemical refinery is aided by a deep sea port operated by a private operator.

The IFFCO has set up a food processing SEZ (KISSAN SEZ) over 2700 acres in Nellore District with an investment of Rs.500 crore. The Visakha SEZ spread over 2206 acres at Achutapuram has HPCL participation.

The FAB city SEZ in Hyderabad spread over 1200 acres aims to provide infrastructure for hardware industry, micro chips is just 8 kms from the new international airport. A SemIndia and Solar semiconductor has already   promoted the SEZ.  Nearly Rs.2200 crore spent on infrastructure as on date.

As of now 71 SEZ have been formally approved, of which 43  are IT and ITES,  21 are specific products like, leather, apparel, pharma, food processing etc.,  five  are multi-product and only one SEZ is in the category of multi-use.

As of now total acreage under SEZ in Andhra Pradesh is of the order of 16,288 acres and all of them put together are expected to generate an employment for 25 lakh persons.

The Andhra Pradesh Industrial Infrastructure  Corporation, the nodal agency for  all projects including  IT parks,  Biotech Parks, Apparel Parks and  SEZ in the state has, from  2003-04  to  2007-08 realized a revenue of Rs.4040 crore and spent  Rs.3832 crore on land development.

In all 83503 acres of land have been acquired by the government for  Industrial parks (291)  - 55866  acres, SEZ( 39) -19637 acres and major PSUs and Oil  industrial units – 8000 acres.


Andhra Pradesh is thus the state bustling with hi-tech and manufacturing sector generating huge employment opportunities for all educated and skilled workers  in the state.

Under the leadership Dr.Y.S.Rajasekahra Reddy the government has taken up initiatives for sustained development of all the three regions with focus on employment generation, irrigation, education, health and infrastructure. In spite of its commitment to infrastructure development, the state government has not lost its sight on social welfare activities to benefit the BPL families.  it has  unleashed a slew of schemes to provide them health insurance( Rajiv Arogyasri), employment (Rajiv Udyogsri),  Indira prabha (land distribution to landless)   besides pensions to aged,  scholarships to students and,  PAVALA VADDI  loans to rural women.

To put it in the words of the chief minister  “ We have  struggled to provide  jobs for the jobless,  infrastructure for   enterprising  entrepreneurs,  cheaper loans to   women, food security to  BPL families,  and  comprehensive and sustainable  development   in both villages and  towns”.

In brief:-


  1. a)    Education Loan Scheme:- for students pursuing post-graduation, professional and technical courses: Amount loaned Rs. 2,50,000/- for 5 year Course, at Rs. 50,000/- per annum.

Loan can be utilized for Tuition Fee, Books, Exam fee, Boarding and Lodging etc,.

Annual income of Parent/Guardian:

  1. not to exceed Rs. 40,000/- in rural areas, and
  2. not to exceed Rs. 55,000/- in urban areas

Rate of interest @ 3% per annum.

Repayment: 60 monthly installments, commencing 6 months after completion of Course or, obtaining employment.

Condition: One surety of Government Employee or, any collateral security or, security of house property.

Achievement during 2006-07: 861 students received Rs. 3.0 Crores.=

  1. Incentive Scholarships: Given to 1st Rankers of Classes 1 to 10, from each District. Also, first 10 ranks in SSC and Intermediate Exams.  Similarly for graduation, post-graduation and professional Courses.
  1. Training and Employment: Minority youth are sponsored for undergoing training in (a) Para Medical, (b) Plastic processing technology, (c) Cell Phone repairing, (d) Heavy Motor Driving and (e) Vehicle mechanism.  Fees is paid to the Training Institution.   A stipend of Rs. 350/- is given to local students and Rs. 1,000/- for non-locals

Achievement during 2006-07: 1,716 beneficiaries, at a cost of Rs. 50 Lakhs.

Scholarship Schemes:

  1. Pre Matric, - for Students of Classes 7 to 10. Parents income not to exceed Rs. 20,000/- in rural and Rs. 24,000/- in urban areas.  Amount Rs. 600/- per annum for Classes 7 and 8 and Rs. 800/- per annum for Classes 9 & 10.
  1. Post Matric – Eligibility: for students pursuing studies from Intermediate to post-graduation, professional and Diploma Courses. 

Parents Income: not to exceed Rs. 33,500/- for general courses, Rs. 44,500/- for professional courses. 

Scholarship Amount: from Rs. 2,500/- to Rs. 5,250/- per annum.

Achievement during 2006-07: 55,348 students received Rs. 20.48 Crores.

  1. Reimbursement of Tuition Fee: for post-matric level courses, up to Rs. 10,000 (paid directly to Institution).

Pre Matric Hostels: 12 Hostels, including 6 for girls, established in different Districts.

Post Matric Hostels: 12 Hostels for boys and girls to be set up separately.

Opening new Residential Schools and Junior Colleges:  These proposals are under finalisation.

Schemes of the A. P Urdu Academy,:

Total budget allocated in 2007-08 Rs. 17.5 Crores.  Schemes include ‘Best Students Awards’,

School Infrastructure: grants to improve infrastructure of Urdu Schools.

Vocational Training of six months in 43 Computer Training Centres. Computers provided to Deeni Madrasas: Budget Rs. 1 Crore.