The Union government today said that it will provide a special assistance of Rs 1,000 crore during the current financial year for development of Andhra Pradesh. The funds will be utilized for the development of backward districts of Andhra Pradesh and creation of its new capital, including the Raj Bhawan, the High Court, the Secretariat, the Legislative Assembly, the Legislative Council, and other essential infrastructure. This will include Rs 350 crore for development of seven backward districts covering Rayalaseema and North Coastal region, Rs 350 crore for the new capital and Rs 300 crore for Polavaram irrigation project. The government had in Budget 2015-16 provided tax incentives to the state. During 2014-15 the Centre was released Rs 4,403 crore to Telangana, the successor state of Andhra Pradesh.