The proposals relate to laying a network of roads and bridges on the inter-State borders that had been converted into “shelter zones” by Maoists. Mr. Rosaiah said that though there was gradual decline in extremist violence in the border districts of AP, there was a sharp increase in naxal violence in adjoining districts of the three States.

Speaking at the National Development Council meeting in New Delhi on Saturday, the Chief Minister said seven inter-State border districts of AP adjoining Chhattisgarh, Orissa and Maharashtra faced the risk of relapsing into extremism on account of their contiguity with the naxal-affected districts in these States. If the State had to sustain the gains of controlling extremism, it was imperative to categorise all these seven districts under the Special Development Plan (SDP).

Mr. Rosaiah said the State suffered a shortfall of revenue of about Rs. 20,000 crore between October 2008 and March 2010 due to the global recession.

The Centre should allow the State governments with better repayment capacity and whose debt was less than 35 per cent of the GSDP to borrow more funds by relaxing the Fiscal Responsibility and Budget Management (FRBM) norms.

The Chief Minister also urged the Centre to review its proposal to withdraw incentives and benefits provided to developers and units under the Special Economic Zones Act after the Direct Tax Code comes into effect from April 1 next year.

The developers had approached the government highlighting the negative impact the decision would have on the investment climate in the State and the investor confidence.