Previous Budget Speeches


Economic Survey 1980-81

Andhra Pradesh along with the rest of the country passed through a difficult year in 1979-80 due to short falls in both the major commodity producing sectors viz., Agriculture and Industry. The agricultural output in the State as well as in the country was seriously affected by drought conditions that prevailed in that year while the industrial production was affected due to the power shortages that developed consequent on inadequate water supplies in Hydel reservoirs. These adverse economic conditions persisted both in the State as well as the Country till the middle of 1980. Subsequently, however, the conditions started improving partly due to the generally favourable seasonal conditions in wholesale prices since about August 1980 while the industrial production also showed signs of recovery.

The 1979-80 was a difficult year for the country as a whole due to adverse seasonal conditions in many parts of the country and consequent decline in agricultural production. Production in some other sectors also showed decline during the year.

Against this background of a general set-back in the economic situation of the country as a whole during 1979-80, Andhra Pradesh State also experienced a set-back in its economy and the State Income at constant (1970-71) prices declined by 2.9 per cent compared to the preceding year. The foodgrains production during 1979-80 was 95.3 lakh tonnes against a record production of 106.7 lakh tonnes during 1978-79. However, during the current year 1980-81, the foodgrains production in kharif season is estimated to be 72 lakh tonnes, despite the drought conditions in parts of Rayalaseema and Telangana regions. In the industrial sector, there was a pick-up in production from August 1980. The index number of industrial production which declined by 6.1 per cent during January-July, 1980 compared to the corresponding period of 1979 showed a rise of 4.7 per cent during August-December 1980 over the corresponding period of previous year. The labour situation during the first ten months of the year 1980 showed a marked improvement compared to the position which obtained during the corresponding period of the previous year. The employment position, however, continued to be unsatisfactory during 1980. The increasing trend in wholesale prices of agricultural commodities in 1979 continued upto August 1980, after which there was some stabilisation during the subsequent months.


During 1979-80 the State Income increased to Rs. 5,910.18 crores from rs.5,360.70 crores in 1978-79 recording a growth rate of 10.3 per cent. On the other hand, the State Income at constant (1970-71) prices, which revels the real growth in the goods and services produced within the State, had come down to Rs. 3,256.02 crores cording a decline of (-) 2.9 per cent. This decline is mainly due to a fall in agriculture production cons3quent on the adverse seasonal conditions in the State during 1979-80.

The primary sector is the major contributor to the total State Income both at current and constant (1970-71) prices. During 1979-80, the primary sector contributed Rs. 1,598.79 crores against Rs.1,770.28 crores in 1978-79 at constant (1970-71) prices. This decline is mainly due to a fall in the agricultural production during the year. The secondary and tertiary sectors have contributed Rs.544.27 crores and Rs.1,112.96 crores in 1979-80 against Rs. 507.31 crores and Rs. 1,075.08 crores respectively during 1978-79 recording growth rates of 7.3 percent and 3.5 per cent respectively. The per capita income at current prices increased from RS. 1,083 to Rs. 1,176 in 1979-80. At constant (1970-71) prices, however it declined from Rs. 678 in 1978-79 to rRs,648 in 1979-80.

During the current year i.e., 1980-81 it is expected that inspite of the severe drought conditions in parts of Telangana and Rayalaseema regions, the State Income and per capita income will show substantial increases over 1979-80.


The State made a significant break through in agricultural production since 1973-74, the average annual output of foodgrains having risen from 74 lakh tonnes in the quinquennium ending 1973-74 to 91 lakh tonnes in the quinquennium ending 1978-79, a rise of 23 per cent. The output of 106.7 lakh tonnes of foodgrains including 74.3 lakh tonnes of rice in 1978-79 surpassed the previous record levels of production of 94.3 lakh tonnes of foodgrains including 64.5 lakh tonnes of rice achieved in 1975-76.

The erratic behaviour of the monsoon during 1979-80 led to a decline in the output of foodgrains during 1979-80 which stood at 95.3 lakh tonnes, a decline of 10.7 per cent in comparison to the previous year. This output of 95.3 lakh tonnes in 1979-80 was, however, larger than the output in any other year except 1978-79, showing thereby that as a result of our extension programmes, the base of our Agricultural Production had been so strengthened that it could better withstand the effects even of adverse weather conditions.

During the current year, the monsoon had set in on time in June and brought widespread rains allover the State excepting Chittoor and Nellore districts. The rainfall was normal in the Rayalaseema region and the excess of normal in the Coastal Andhra and the Telangana regions as well as in the State as a whole. It was inactive for over two weeks from the third of July 1980 but revived and continued to be active in the first half of August 1980. During July, 1980 the rainfall was little over normal in Coastal Andhra and below normal in Rayalaseema and Telangana as well as in the State as a whole while in August it was more than normal in Coastal Andhra and Telangana and below normal in Rayalaseema. While the rain the August helped the crops in parts of Telangana to some extent, there were dry spells elsewhere and the continuing deficit in rainfall in Rayalaseema caused widespread anxiety for the standing dry crops and also delay in the transplantation of rice. The monsoon was inactive in September resulting in large deficit in rainfall in all districts excepting Srikakulam and Vizianagaram. The rainfall was less than normal in all the three regions of the State during this month. This failure of rains for the third successive month in Rayalaseema resulted in the withering away of standing crops. In Telangana also as a result of long dry spells the condition of standing crops was affected specially in Nalgonda, Rangareddy, Mahabubnagar and Adilabad Districts and parts of Medak, Karimnagar, Warangal and Nizamabad districts. In Srikakulam, on the other hand, there were flash floods in the river Vamsadhara which inundated 187 villages causing loss of life, cattle and property including standing paddy crop in an area of 67,000 acres and sand-casting of over 11,000 acres.

While the rainfall in the South-West monsoon period as a whole was more than normal in Coastal Andhra, near normal in Telangana and deficit in Rayalaseema its spacing and the long dry spells adversely affected crops even in areas where the total rainfall might appear to be near normal. The average rainfall in the State was 633 mms., against a normal of 602 mms.

During October and November, 1980 also, the North-East monsoon failed generally allover the State excepting Srikakulam, Vizianagaram, Visakhapatnam, and East Godavari districts during October and Prakasam, Nellore, Chittoor and Cuddapah districts during November. The November rains helped to revive the crops in Nellore district and in parts of Chittoor and Cuddapah districts. During the month of December, the State received rainfall of 12mm., against normal of 14m ms. I.e., a deficit of 14 per cent. During the entire North-East monsoon period (October to December 1980) the State received deficit rainfall in all the regions.

Inspite of these adverse seasonal conditions in parts of Telangana and Rayalaseema regions, the preliminary estimates of crop production show that the production of foodgrains in the current Kharif season of 1980-81 will be of the order of 72 lakh tonnes, including 53 lakh tonnes of rice. This has been made possible due to the immunization of agriculture to some extent from the vagaries of the monsoon, brought about by the various developmental programmes in the previous years.

The present indications are that the total food grains production in the current year in the State will be over 100 lakh tonnes. This satisfactory level of output is however so distributed that it does not mitigate the distress caused by drought in parts of Rayalaseema and Telangana drought relief works have therefore been taken up in these regions, but also to create additional employment to the agricultural labour and marginal farmers besides tackling the problems of acute scarcity of drinking water and fodder.


Industrial Production faced a serious set-back during January to July 1980 due to power shortages in the State and the decline in the index number of industrial production during the period January to July 1980 was 6.1 percent as compared to the average index during the corresponding period of last year. The power supply position improved after the timely onset of monsoon which helped the revival of industrial activity in the State. Consequently, while the monthly indices of industrial production for January to July 1980 were consistantly lower than the corresponding indices for 1979, the indices for August to December 1980, (barring September) were consistantly higher than those of 1979. In September 1980, the index was almost the same as in September 1979. As a result of the pick-up in the industrial production from August 1980, the average index of industrial production for August to December 1980 was 4.7 per cent higher than that for the corresponding months of 1979. Due to the larger decline in the index in the first seven months, the average index for the calendar year as a whole was about 1.8 per cent lower than that in 1979.

During the year 1980 out of seventeen industry groups, there was a decline in the indices of ten industry groups, compared to the indices of last year. The maximum deceleration in the index was observed in the case of Leather and Leather products (42.5 per cent), followed by Transport Equipment (18.7 per cent), Beverages (14.7 per cent), Basic Metal products (10.5 per cent), Paper and Paper products (9.2 per cent), Non-metallic Mineral products, Chemical and Chemical products (7.7 per cent), Food (6 per cent), Electrical Machinery (2.4 per cent) and Miscellaneous industry group (2.2 per cent). On the other hand, an increase in indices was noticed in respect of seven groups. The highest increase in the index was noticed in the case of Metal products except Machinery and Transport Equipment (29.6 per cent) followed by Machinery except Electrical Machinery (17.6 per cent), Generation of Electricity (4.6 per cent), Petroleum and Petroleum products (3.7 per cent), Mining and Quarrying (3.5 per cent), Textiles (3.4 per cent) and Tobacco and Tobacco products (1.8 per cent).

The total production during the year 1980 recorded an increase in respect of 20 industries compared to previous year. A discernible increase in production was noticed in the case of Bakery products (103.7 per cent) followed by Ball and Roller Bearings (54.6 per cent), Refrigerators (50.8 per cent), Water Coolers (50.7 per cent), Diesel Engines (23 per cent), and Dry Cells/ Dry Battery Cells (20.3 per cent). The increase in production ranged, between 3.5 to 19.1 per cent in respect of Machines Tools, M. S. Rounds, Bars, Flats etc., Motor Cycles, Jute, Transformers, Vanaspathi, Electrical Cables, Conventional Coffee packed, Generation of Electricity, Petroleum products, Coal and Forgings. The increase in production was marginal in the case of Heavy Electricals and Cigarettes.

In respect of 23 industries, there was a decline in the production during the year 1980 compared to the production of last year. The maximum deceleration in production was observed in the case of Glass (64.3 per cent) followed by Acetic Acid (62.2 per cent). The decline in the production in Glass was partly sue to lay-off in one unit and absentism in another Unit and in the case of Acetic Acid due to Alcohol shortage in one Unit during January, February and April 1980, in another unit in July 1980 and in both units in August and October 1980 and power shortage during April-June 1980. A decline of 36.3 per cent was observed in the case of Tanning (due to fewer orders on hand) followed by Motor Vehicles (body building) (31.5 per cent) due to shifting of Labour from Bus body building unit to refrigerator wing in January 1980 and short supply of Chassis during May and June 1980. The decline in production ranged between 4.2 to 20.6 per cent in respect of Sugar (20.6 per cent) followed by Rayon yarn (18.5 per cent), Wines and Rectified Sprits (14.6 per cent), Detonators (14.3 per cent), Ferro Alloys (12.1 per cent), Cotton Fabrics (11.9 per cent), Paper (9.2 per cent), Rayon Fabrics (6.8 per cent), Cement (5.1 per cent) and Instant Coffee packed (4.2 per cent). The decline in production of Sugar was due to decline in area under Sugarcane in 1979-80 as compared to the previous year, attack of pests, large scale diversion of Sugarcane to Khandasari Factories in view of higher prices offered to the growers etc. The decline in production varied between 0.4 to 3.3 per cent in the case of Cotton Yarn , Drugs and Pharmaceuticals, Tea packed, Chemical Fertilisers, Oxygen, House Service Metres, D/Acetylene, Asbestos Cement and Electronic Equipment.


Electricity generated in the State had gone up by 4.6 per cent in 1980 compared to 1979. However , this increase in power generation is less than the increase during the previous year due to failure of monsoon during the year 1979-80 which adversely affected the Hydel power generation in the summer season of 1980. There was a revival in generation of power since August 1980 partly due to recommissioning of the first unit of 210 M.W. at Vijayawada Thermal Station and commissioning of second unit of 210 M.W. in the month of November 1980.

Labour Situation

The mandays lost during January to November 1980, declined to 1.87 lakhs as compared to 2.57 lakhs during the corresponding period of 1979, due to a lesser number of industrial disputes, thus indicating an improvement in the labour situation in the current year.

Employment Situation

The employment situation in the State was some what unsatisfactory in the year 1979 compared to 1978 since the total number of vacancies notified to the Employment Exchanges recorded a decline of 5.1 per cent from 66,879 in 1978 to 63,480 in 1979. During the year 1980 also the vacancies notified to the Employment Exchanges declined by 15.4 per cent i.e., from 63,480 in 1979 to 53,725 in 1980. Thus, the employment situation continued to be unsatisfactory.

Wholesale Prices

The index number of wholesale prices of agricultural commodities in the State increased from 183.2 in January 1980 to 219.4 in August 1980 or by 19.8 per cent.

In September 1980, however, there was a decline in the index which came down to 215.3. Though the index number fluctuated slightly during the subsequent two months, the index never touched the peak level noticed in August 1980 and touched the lower level of 213.5 during December 1980. Compared to December 1979, the general index of wholesale prices of agricultural commodities in the State during December 1980 rose by 13 per cent. Group-wise, Drugs and Narcotics (32.8 per cent), oil Seeds (22.5 per cent), Sugarcane (Gul.) (22.3 per cent), Pulses (16.2 per cent ), Cereals (10.3 per cent) and Condiments and Spices (7.9 per cent) showed an increase in December 1980 over that in December 1979. On the other hand, Vegetables (43.3 per cent), Fibres (20 per cent) and Fruits (18.4 per cent), showed a decline in wholesale prices in December 1980 over those prevailing a year ago.

Consumer Price Indices

During the year (upto the end of November) 1980, the average consumer price index number for eight selected centres of the State was 374 (with base shifted to 1960=100) against the All-India average of 388. The figures for the corresponding period of the previous year were 339 for the State and 348 for All-India. Thus, the average consumer price index number during the eleven months period showed an increase of 10.3 per cent in the State against 11.5 per cent in All-India when compared to the corresponding period of last year.


The outlay of the Annual Plan for 1980-81 included in the Budget was Rs. 462.25 crores. This outlay provided in the Budget was a tentative one as by the time of the presentation of the Budget, the discussions with the Planning Commission had not taken place and it was decided to repeat in 1980-81 the same outlay as in 1979-80 with some marginal adjustments. Subsequently, in August 1980, discussions were held with the Planning Commission when it was decided to fix the revised outlay for 1980-81 at Rs. 501.00 crores. Out of the increased outlay of Rs. 38.75 crores, agreed to by the Planning Commission, as much as Rs.20.20 crores were allocated to Social & Community Services which are intoned for intensification of efforts for the development of the weaker sections and for provision of basic amenities in rural areas. Rs. 11.43 crores were allocated for Industry & Minerals, Rs. 4.10 crores for Transport & Communications and Rs. 1.90 crores for Agriculture and Allied Services.


A basic paper, entitled "Sixth Five-Year Plan 1980-85 A Framework " prepared by the Planning Commission after its reconstitution in April, 1980 was presented to the National Development Council at its 34th meeting held on August 30 and 31, 1980. The council considered this paper and directed the Planning Commission to proceed with the preparation of the final Draft of the Sixth Plan. The State Government also prepared draft proposals for the Sixth Five-Year Plan 1980-85 in accordance with the broad guidelines indicated by the Planning Commission and after discussion by various Working Groups set up at the State level. These draft proposals which were presented to the Planning Commission and which have been separately circulated to the Hon’ble Members of the Legislature envisaged a total outlay of Rs. 4,100.00 crores. These were considered by the official Working Groups set up by the Planning Commission in which officials of the Central Ministries, Planning Commission and the State Government participated. The Working Groups, after considering these draft proposals, recommended an outlay of Rs.3,270.00 crores for the State’s Sixth Five-Year plan. These proposals were subsequently discussed by our Chief Minister and Minister (Finance and Planning) with the Deputy Chairman, Planning Commission on 10th December, 1980. Taking into account the available resources, it was decided at this meeting, that the size of the State’s Sixth Five-Year Plan should be fixed at Rs. 3,100.00 crores. The financing pattern of this outlay is as shown below :

    Rs. Crores

State's own resources .. ..


Central assistance .. ..


Addl. Market borrowings .. ..

4. Addl. Resources mobilization .. .. 150.00


The Central assistance shown above has been arrived at, on the basis of the modified Gadget Formula approved by the National Development Council.

The additional Market borrowings have also been allocated to our State as it is one of the States whose per capital income is below the All India average.

The draft proposals for the Sixth Five-Year Plan submitted to the Planning Commission also included the outlay envisaged for the second year of the Plan i.e., 1981-1982. Of a total outlay envisaged for the Five-Year Plan of Rs.4,100.00 crores, the outlay envisaged for 1981-82 was Rs.609.00 crores. The Central Working Groups while considering the Sixth Plan proposals also considered the proposals from1981-82 and recommended an outlay of Rs.547.00 crores for that year. However, at the discussions held between the Deputy Chairman, Planning Commission and the Chief Minister, it was agreed that the outlay in 1981-82 would be Rs.531.41 crores taking into account the resources position. Despite considerable increases in Non-Plan commitments such as D.A., concessions regarding loans etc., there will be an improvement of the State’s own resources for 1981-82 compared to 1980-81. However, the Central assistance envisaged for 1981-82 is only Rs.176.38 crores compared to Rs.200.20 crores. Even in 1980-81 the Central assistance originally agreed to was only Rs.173.00 crores, but additional central assistance of Rs.27.00 crores was agreed to by the Planning Commission at the time the outlay was raised to Rs.501.00 crores. The Central assistance for next year has been based on the modified Gadgil Formula and the State’s share of Central assistance on this basis for the Sixth-Five Year Plan. The Plan for 1980-81 also took credit for drawal of reserves originally of the order of Rs.15.00 crores. For 1981-82, it is difficult to envisage at this stage what corresponding credit can be taken. The outlay for the Plan 1981-82 had, therefore, to be fixed on the basis of the available resources taking all these factors into account. The Budget includes an Annual Plan outlay of Rs.538.29 crores as against the outlay of Rs.531.41 crores agreed to at the discussions with the Planning Commission. This level of outlay of every Department is maintained in 1981-82 at least at the level of 1980-81 and also to ensure that there is some step up in the case of sectors like Welfare of Scheduled Castes and other weaker sections. The following statement will indicate the sector-wise outlay for the Annual Plan for 1981-82.


( lakhs)


Head of Development --------- -------------------------------- Annual

Provided in Revised Plan

The Budget 1981-82 Budget

(1) (2) (3) (4)

1. Agriculture and Allied Services 4,799.71 4,975.11 6,028.91

2. Co-operation . . . . 381.00 446.00 446.00

3. Irrigation:

(a) Nagarjunasagar Project . . . . 4,500.00 4,200.00 4,200.00

(b) Sriramsagar . . . . 3,500.00 3,800.00 3,800.00

(c ) Godavari Barrage .. . . 850.00 850.00 850.00

(d) Other Mojor and Medium

Irrigation Schemes . . . . 4,315.00 4,315.00 4,650.00

(e) Flood control Drainage . . . . 485.00 485.00 500.00

4. Power:

(a) C.E. (Srisailam) . . . . 2,200.00 2,200.00 2,350.00

(b)A.P.S.E.B. . . . . 13,532.00 13,532.00 12,903.00

(c) C.E.(Elec. Project-Balimela) . . . . 200.00 200.00 300.00

WATER AND POWER DEVELOPMENT . .. . . . . 29,582.00 29,582.00 29,553.00

5. Industries and Minerals . . . . 1,173.50 2,316.50 2,317.00

6. Transport and Communications . . . . 3,857.00 4,267.00 5,142.00

7. Other Social and Community . . . . 6,285.38 8,305.38 9,998.78


8. Economic Services . . . . 22.00 45.00 102.00

9. General Service . . . . 125.00 163.00 241.00

------------- ----------------------------------------------------- -------------

Total 46,225.29 50,099.99 53,828.69

To outlay of Rs.538.00 crores fixed for the next year envisages an increase in outlay over the current year, chiefly under the following items:

Rs. Crores.

1. Welfare of Backward Classes . . . . 7.39

2. National Rural employment Programme . . 10.00

3. Yeleru Reservoir . . 2.50

4. General Education . . 2.05

5. Medical and Public Health . . 1.33

6. Rural and Urban Water Supply . . 3.12

7. Acquisition of house-sites and construction . .

of houses for weaker sections. . . 2.00

8. Women Welfare . . 0.41

9. Youth Welfare . . 0.33

10. Road Transport Corporation . . 8.75

In the case of Road Transport Corporation , an additional outlay of about Rs.8.75 crores has been proposed taking into account their additional resources mobilization. In the case of National Rural employment Programme, the State Government has to provide 50% as its share from next year onwards and as such an outlay of Rs.10.00 crores has been made towards the State’s share. The outlay for Yeleru Reservoir Project has been stepped up mainly for the purpose of ensuring supply of water to the Visakhapatnam Steel Plant.

The statement in the annexure shows the details of the allocations in the current year and the amount that will be provided in the Plan Budget for 1981-82.

In the Annual Plan for 1980-81, Rs.16.64 crores was allotted for backward areas. Taking into account the increase in outlay in the current year to Rs.501.00 crores, it is proposed to increase this provision to Rs.29.51 cores in 1980-81’. In the 1981-82 plan of Rs.538.29 crores, an allotment of Rs.295.53 crores has been made for Irrigation and Power sectors. Of the balance amount, the 10% funds to be allotted for the identified backward areas, comes to Rs.24.27 crores. It is now proposed to earmark this amount for identified backward areas in the State for 1981-82 .


The outlay provided for 1981-82 is Rs.1897.00 lakhs. The allotment for Crop Husbandry has been slightly increased. The allocation comprises of Rs.65.00 lakhs for the Agriculture University, Rs.320.00 lakhs for the Director of Agriculture, Rs.10.00 lakhs for Warehousing Rs.1500.00 lakhs for Rural Development schemes. So far as the D.P.A.P. blocks are concerned as per the revised pattern of financial assistance prescribed by the Government of India from 1979-80 onwards the 76.D.P.A.P. blocks in the State would get a total allotment of Rs.11.40 crores at Rs.15.00 lakhs per block to be shared by the State and Central Government on 50.50 basis. The share of the State Government is Rs.5.70 crores and this has been provided in the plan Budget.

With effect from 2nd October, 1980, I.R.D.P. is extended to all the blocks in the State with an outlay of Rs.5.00 lakhs per block during 1980-81, Rs.6.00 lakhs per block during 1981-82 and at Rs.8.00 lakhs per block per year during the last three years of Sixth Plan period to be shared by the State and Government of India on 50.50 basis. The programmes like SFDA, Trysem outside IRDP and minor irrigation outside special programme areas are merged with IRDP. However, the schemes for providing infrastructural facilities under Trysem and construction of Rural Godowns continue to be implemented. In addition the cost of extension staff on I.A.A.P. Pattern, Engineering staff given to the Rural Development Agencies, Assistant Hydrogeologist given to the Branches of Ground Water Department and cost of establishment at establishment at Secretariat lakhs is proposed in the Budget towards State share towards implementing the above schemes.

Minor irrigation

The provision for Minor Irrigation in 1981-82 is Rs.900.00 lakhs. Of this, and allotment of Rs.668.00 lakhs is for surface irrigation consisting of Rs.655.00 lakhs for Chief Engineer (Minor Irrigation) and Rs.13.00 lakhs for the Chief Engineer (P.R.). Under the scheme implemented by the C.E. (M.I.) it is proposed to create an irrigation potential of 6920 hectares of new ayacut in 1981-82 as against the anticipated achievement of 7640 hectares in the current year. In the Annual Plan for 1981-82, Government have provided a sum of Rs.200.00 lakhs towards 25% share capital contribution to the A.P. Irrigation Development Corporation. As per the debt equity ratio laid down for this Corporation, 75% of the cost of the schemes should be met from Institutional Finances. The A.R.D.C. have agreed to finance the schemes of this corporation to the extent of 75% of the cost of each Scheme through various commercial banks. The banks also give land development and crop loans to the beneficiaries. Under the Lift Irrigation and ground water programmes, implemented by the Irrigation Development Corporation, it is proposed to create an additional irrigation potential of 13,324 hectares in 1980-81.

Soil Conservation

The allotment proposed for 1981-82 is Rs.62.00 lakhs. Out of this, an amount of Rs.50.00 lakhs is for the Soil Conservation programmes of the Agriculture Department and Rs.12.00 lakhs for the schemes on non-agricultural lands implemented through the Chief Conservator of Forests. The total area covered under Soil Conservation programmes, at the end of 1980-81 programmes is 5.44 lakh hectares. It is proposed to cover an extent of 24,000 hectares in the next year taking the total area under Soil Conservation programmes at the end of f1981-82 to 5.68 lakhs hectares. The plan also covers for strengthening of training activities for Soil Conservation as also for Soil testing Laboratories.

Area Development

The objective of the Command Area Development is to bridge the gaps between the creation of irrigation potential and its utilisation as well as to promote better efficiency in water use. Land Development programmes backed up by extension services are critical in0puts in this sector. Under Systematic Land Development, so far an extent of 75,000 hectares of land is developed, while in 1981-82, it is proposed to develop an extent of 37,000 hectares. For provision of the required inputs and for Systematic Land Development, credit facilities are arranged from the Co-operative Agricultural Development Banks and the Commercial banks. Under long term credit, an amount of Rs.760.25 lakhs has been disbursed till the end of November 1980, while under short term credit for essential agricultural operations, an amount of Rs.3363.81. lakhs has been disbursed. Under the Integrated Water Management system, it has been proposed to take up each distributory as an unit divided into convenient Zones and supply water to each zone during certain prescribed periods for equitable sharing of the available water upto the pipe outlet. Integrated Water Management has been introduced in 106 majors covering an area of 60,000 hectares during 1980-81, and the Warabandhi programme has been taken up in an area of 37,000 hec. In the current season. During 1980-81, it has been programmed to implement the Integrated Water Management programme in an area of 80,000 hec. And Warabandhi programme in an area of about 50,000 hec.

According to the revised programme formulated, ayacut roads in Nagarjunasagar Project over a stretch of 953 Kms. Has to be completed by 1984-85. So far 600 K.Ms. of road works have been taken up out of which 466 K.Ms. were completed by December, 1980. It has been proposed to take up 77 K.Ms. of new road works during 1981-82. A similar road programme has also been taken up in Sriramsagar Project command area over a length of 460 K.Ms. and so far about 406 K.Ms. of roads have been completed till end of December, 1980. It has been programmed to clear the balance length of 54 K.Ms. of roads during the subsequent years. As against the allotment of Rs.674.94 lakhs in the current year, the allotment proposed in the next year is Rs.750.00 lakhs. Out of this, as much as Rs.400.00 lakhs is set apart for ayacut roads in Nagarjunasagar Project area and Rs.36.00 lakhs for ayacut roads in Sriramsagar Project area.

Animal Husbandry

The provision made in 1981-82 is Rs.149.51 lakhs of which Rs.20.00 lakhs is towards share capita contribution to the A.P. State Meat & Poultry Development Corporation and the balance of Rs.129.51 lakhs is for Animal Husbandry programmes. The objectives of the Animal Husbandry programmes are to improve the animal health, facilities to ensure adequate provision of milk through cattle development programmes, to increase the production of animal proteins in the form of meat and eggs through sheep, piggery and poultry development programmes and to design these programmes in a manner to benefit to a maximum extent the poorer sections among the farmers and the S.CS. and S.T. in particular. As a result of the implementation of Animal Husbandry programmes, it is anticipated that the milk production would go up from 23 lakh tonnes in 1980-81 to 24 lakh tonnes in 1981-82. Similarly, the egg production is also expected to increase from 1280 millions in 1980-81 to 1500 milli9ons in 1981-82.

Dairy Development

The provision made in 1981-82 for Dairy Development is Rs.100.00 lakhs. Under ‘Operation Flood II Programme’, which would be implemented in 16 districts, the A.P.D.D.C. will be undertaking programmes for expansion of the milk production programmes on Cooperative basis. The programmes proposed under the Plans are for production and Marketing of milk in districts not covered by operation Flood II. Hence an outlay of Rs.100.00 lakhs is proposed for the next year.


A provision of Rs.325.00 lakhs has been made in the Plan for 1981-82. Out of this, an amount of Rs.250.00 lakhs is made for the Integrated Marine Fishing Projects at Kakinada and Nizampatnam. This is an important project for which financial assistance is coming from the World Bank. Another provision of Rs.20.00 lakhs is made in the next year for Fishing Harbour at Bhavanapadu for which matching assistance will be available from the Government of India. Towards development of Inland Fisheries, a sum of Rs.23.02 lakhs is made in the next year. Towards share capital contribution to the A.P. Fisheries Development Corporation, a sum of Rs.13.00 lakhs is made in the Plan. As a result of implementation of Fisheries Development programmes, fish production is proposed to be increased from 1.40 lakh tonnes in 1980-81 to 1.55 lakh tonnes in 1981-82 under Inland Fisheries. While under Marine fisheries, fish production is proposed to be increased from 1.20 lakh tonnes in 1980-81 to 1.23 lakh tonnes in 1981-82.


Forests programme is an important one not only because it has sources of industrial raw-material and of energy but also from the ecological point of view. The forestry development plan aims at increasing economic plantation, particularly of teak and tropical pines. Introduction of social forestry in a big way is also contemplated through a massive programme of free distribution of seedlings of suitable species. Under mixed plantations, it is proposed to raise bulk plantations of trees species capable of yielding fuel, fodder and fruits on village waste lands, road-sides and canal bunds etc. A provision of Rs.150.00 lakhs has been made for forestry programmes in the 1981-82 Plan.


The provision made under Co-operation in the Annual Plan for 1981-82 is Rs.446.00 lakhs. The programmes under Co-operation are intended for implementation of Short Term and Medium Term Credit programmes, besides assistance to Marketing, Consumers etc. While the Agricultural Credit Societies and Co-operative Banks aim at providing production Credit to farmers, the agricultural inputs like chemical Fertilisers, pesticides and agricultural implements, etc. The consumer Co-operatives are geared up to participate in the public distribution system effectively and to provide consumer and essential commodities to the rural and urban folks with particular preference to slum dwellers and weaker sections of the ameliorate the living conditions of the weaker sections through self-employment by organising suitable co-operatives to the professional members like Barbers and Washermen and also to the non-professional weaker sections like Rickshaw pullers, bullock cart drivers, destitute women, hawkers etc. Suitable provisions have also been earmarked for the welfare of Scheduled Castes and Scheduled Tribes.

Under the Short Term and Medium Term credit programme during the year 1980-81, it is anticipated to achieve disbursement of loans to agriculturists to the tune of Rs.107.50 crores while the target fixed for the next year is Rs.140.00 crores.

Nagarjunasagar Project

In the Plan for 1981-82, an allotment of Rs.4200.00 lakhs has been made. The concept of irrigation potential created underwent a change in 1979 as consequence of which potential can be said to be created only if field channels are excavated upto 5 hectares limit of the last survey number whichever is less. As per this new definition of potential created, upto end of June 1980, the area for which potential was created was 5.80 lakh hectares. By end of June 1981 an additional area of 151 thousand hectares is proposed to be given irrigation facilities taking the cumulative irrigation potential to 7.31 lakh hectares by end of June 1981. During 1981-82 (upto end of June 1982), additional irrigation potential of 29,000 hec., is proposed to be created brining the total irrigation potential to 7.60 lakh hectares.

Sriramasagar Project

In the Plan for 1981-82, an allotment of Rs.3800.00 lakhs has been made. In this case also, isa result of the change in concept of irrigation potential created, the area that has been provided with irrigation facilities upto the end of June 1980 was 1.26 hectares. It is proposed to create an additional irrigation potential over an extent of 35.000 hec., by July 1981, taking the cumulative irrigation potential at the end of July 1981 to 1.61 lakh hectares. It is proposed to crate an additional Irrigation potential of 35,000 hec., by July 1982, taking the cumulative potential at the end of July 1982 to 1.96 lakh hectares.

Godavari Barrage Project

An amount of Rs.850.00 lakhs has been provided in the Plan for 1980-81 and the same amount has been allotted for the year 1981-82 also.

During the year 1981-82, an outlay of Rs.46.50 crores has been made for other Major and Medium Irrigation schemes to create an additional irrigation potential of 23,340 hectares by end of June1982. Out of the above total outlay, an amount of Rs. 2.90 crores has been set apart for 6 medium irrigation schemes under Tribal Sub-Plan during 1981-82. During the year 1981-82, three major projects viz., Jurala Project, Polavaram Barrage and Srisailam Right Bank Canal are proposed to be taken up for execution for which a token provision of Rs. 45.00 lakhs has been made during the year 1981-82.


In the Annual Plan 1981-82, this sector has been allotted an amount of Rs.15,553.00 lakhs. Of this, an allotment of Rs.2,350.00 lakhs is for Srisailam Project and Rs.300.00 lakhs is towards State Government’s contribution in respect of Balimela Project. The balance amount of Rs.12,903.00 lakhs is for the Electricity Board.

The installed capacity at the end of March 1980 was 1,888 M.W. During 1980-81, an addition of 410 M.W. has been added. This achievement has been made possible by commissioning the first Nagarjunasagar Pumped Storage unit of 100 M.W. which is the first of its kind in the country during April 1980 and the second unit in January 1981. The second unit of 210 M.W. of Vijayawada Thermal Power Station was synchronised with the grid on 10-10-1980. The present installed capacity of the grid is 2,298 M.W. During the next year with the commissioning of third and fourth units of 100 M.W. each of Nagarjunasagar pumped Storage Scheme and first and second units of 110 M.W. each of Srisailam Project and 25 M.W. unit of Donkaraya Power House the likely installed by the end of March 1980. During 1980-81, it is proposed to electrify 1,200villges and energise 36,000 pumpsets and against this 829 villages have been electrified and 24,024 pumpsets energised by the end of December 1980. In 1981-82, it is proposed to electrify 1,600 villages and energise 49,000 pumpsets.

Industries & Minerals

An amount of Rs.2317.00 lakhs has been provided in the Plan for 1981-82. With a view to encouraging the location of more industrial projects in the State, incentives in the form of investment subsidy, interest free sales tax loan, interest subsidy to technocrats, concession in power tariffs etc., are being given. This scheme covers both large and medium industries in the State. An amount of Rs.150.00 lakhs has been provided in the next year. The major thrust of the operations of the A.P. Industrial Development Corporations is on equity investments in industrial projects either as promoter’s contribution in joint sector assisted concerns or as under-writers. It also undertakes term lending under the I.D.B.I refinance scheme, and provides bridge loans to industries. A provision of Rs.450.00 lakhs towards share capital contribution to the Corporation has been made. Provision has also been made for providing contribution of Rs.81.50 lakhs to A.P. Industrial Infrastructure Corporation and Rs.50.00 lakhs to A.P. State Financial Corporation. Towards State’s equity contribution for the Nagarjuna Fertiliser and Chemicals Limited, another provision of Rs.150.00 lakhs has been made in the plan for the next year. Provision to the extent of Rs.135.00 lakhs has also been provided for making contribution to Co-operative Sugar Factories towards cane development, so as to ensure adequate cane supply to the Cooperative Sugar Factories.

Since Handlooms and Sericulture have a vital role to play in alleviating the economic conditions of the weaker sections of the population, an allocation of Rs.285.00 lakhs for Handlooms and Rs.80.00lakhs for sericulture has been made. Towards State’s contribution for the A.P.S.S.I.D.C., an amount of Rs.95.00 lakhs is made.

Transport & Communications

In the Annual Plan for 1981-82, an outlay of Rs.5142.00 lakhs has been made for this sector against the outlay of Rs.5142.00 lakhs has been made for this sector against the outlay of Rs.4267.00 lakhs in the revised estimates for 1980-81. While in the case of Roads & Bridges, the current year’s level in the outlay has been maintained. In regard to R.T.C. , it has been proposed to make a provision of Rs.3822.00 lakhs on account of further improvement of its resources.

Social & Community Services

In the Annual Plan for 1981-82, an allotment of Rs.9,998.78 lakhs has been made for this sector. In keeping with the policy of the State Government to give necessary fillip to schemes intended for the welfare of the weaker sections of the population, increased allotment of Rs.739.00 lakhs has been made for the welfare of weaker sections, taking the outlay in the next year to Rs.1726.00 lakhs. Similarly, towards supply and provision of house sites for weaker sections of the population, the provision in the next year has been increased to Rs.1500.00 lakhs as against the provision of Rs.1300.00 lakhs in 1980-81. Under General Education, the allotment has been increased to Rs.990.00 lakhs in the next year from Rs.785.00 lakhs in 1980-81. Out of this allotment, Rs.388.00 lakhs is made for Elementary Education and Rs.219.00 lakhs for Secondary Education. Under Higher Education also, the allotment in the next year has been increased from Rs.270.00 lakhs in 1980-81 to Rs.347.00 lakhs in the next year. The programmes to be taken up under this head relates to giving of grants-in/aid of Rs.21.00 lakhs to Kakatiya and Nagarjuna Universities and Rs.10.00 lakhs to Jawaharlal Nehru Technological University. Towards maintenance of the nine Government Colleges started during 1979-80 as also the 20 Government Junior Colleges started in 1980-81, a provision of Rs.64.45 lakhs has been made. It is also proposed to start one Government Junior College in the next year at Warangal. Similarly, towards maintenance of Government Degree College, started in 1979-80 and 1980-81, a provision of Rs.23.84 lakhs has been made. It is also proposed to start one Government College for Women in the next year. Towards intensification of youth activities in the state, a provision of 50.00 lakhs in the next year is made as against the existing provision of Rs.17.00 lakhs in the current year. Under Medical & Public Health also, an outlay of Rs.1100.00 lakhs has been made in the next year. A major allotment to the extent of Rs.372.00 lakhs is proposed in the next year for undertaking the construction and strengthening of Primary Health Centres in the State.

Towards augmenting drinking water facilities both in rural and urban areas, the allotment in the next year has been increased to Rs.2,500.00 lakhs from Rs.2,188.00 lakhs in 1980-81.

Economic Services

An amount of Rs.102.00 lakhs has been made in the next year. Of this, an allotment of Rs.25.00 lakhs is made for the Bureau of Economics & Statistics. Another provision of Rs.50.00 lakhs is made in the next year’s Plan toward strengthening of machinery at the district level for the formulation of Plans at that level.

General Services

An amount of Rs.200.00 lakhs has been made in the Annual Plan for 1981-82 for construction of Government Buildings. An amount of Rs.41.00 lakhs has also been made in 1981-82 for strengthening of the Government Printing Press.