Andhra Pradesh is working to unlock another ₹3,525 crore in incentives under the Special Assistance for Capital Investment (SASCI) scheme in 2026-27, with the State government asking departments to complete a set of prescribed reforms by December 1 to qualify for the funds.
The issue came up for a detailed review at the Collectors’ conference during a session on “Restructuring of Finance – Creative Approach”.
Finance Principal Secretary Piyush Kumar and Secretary D. Ronald Rose said the State had the potential to secure ₹8,226 crore under SASCI during the current financial year. Of this, ₹3,486 crore had already been received, including ₹1,923 crore in unconditional capital funds, ₹266 crore towards the State’s share in Central schemes and ₹1,297 crore as an incentive for increasing capital expenditure.
Mining reforms could fetch another ₹950 crore. These include integrating the mining portal, constituting a pre-auction committee and finalising an annual auction calendar. Another ₹250 crore is available under the telecom Right of Way component, subject to portal integration and expediting BharatNet permissions.
The State could earn ₹1,450 crore under AgriStack by digitising fertilizer distribution, procurement at support prices, village mapping and satellite-based mapping of survey numbers. Reforms in the livestock sector could bring ₹250 crore, while implementation of the SNA-SPARSH system could fetch ₹450 crore. A further ₹175 crore is available through implementation of a compressed biogas policy.
Public health-related performance could bring up to ₹650 crore, including incentives linked to reducing infant and maternal mortality, securing NQAS certification for government hospitals and reducing TB deaths.
Variations in use of funds
The Finance Department’s push for reforms comes amid wide variations in utilisation of Central scheme funds. Andhra Pradesh is implementing 86 Centrally-Sponsored Schemes in 2026-27, with ₹25,304 crore allocated by the Centre. Of the ₹10,552 crore received so far, the State has utilised ₹8,694 crore, or 47%, as of September 7. Including previous balances and adjustments, ₹18,516 crore is currently available with implementing departments.While the BC Welfare Department has utilised 99% of its available funds, Panchayat Raj and Rural Development has spent 38%, Housing 26% and Water Resources only 6%. District-wise, Chittoor topped utilisation at 87%, while Vizianagaram was at the bottom with 52%.
Officials also reviewed the matter related to ₹135 crore lying in SNA accounts and directed departments to close 88 inactive SNA accounts across 20 departments. Interest earned on the Centre’s share is to be remitted to the Centre through PFMS and the remaining balances utilised before account closure.
Restoration of funds
The State is also pursuing the restoration of ₹116.98 crore in cancelled mother sanctions, with departments instructed to take up the matter with the respective Union Ministries.The conference chaired by Chief Minister N. Chandrababu Naidu also reviewed four projects taken up with SASCI funds during 2023-25. Against ₹516.35 crore sanctioned, ₹313.27 crore has been released and ₹173.17 crore spent so far. Officials were directed to ensure faster implementation and close coordination with the Centre.
The departments have been instructed to complete all prescribed SASCI reforms by December 1 and share every communication sent to the Union Ministries with the State Finance Department and the Andhra Pradesh Bhavan in New Delhi.
