The Chief Minister, who was in a buoyant mood after reports of the World Bank approving the project reached here, told a press conference that the Rs 3,300 crore project would radically alter the economic scenario in the state. Substantial investments were envisaged in key sectors such as education (Rs 670 crore), primary health (Rs 280 crore), irrigation (Rs 1129 crore), rural roads (Rs 727 crore) and nutrition (Rs 439 crore).

According to him, the Rs 4,000 crore power sector reforms project and the Rs 2,700 crore water supply improvement project did not come up for consideration before the World Bank board at Thursday's meeting. He, however, hoped that the two projects would also be cleared soon.

The approval for APERP, the firstmajor project cleared since imposition of sanctions, became possible as the bank was convinced of the state's capacity to bring about comprehensive economic reforms, Naidu said. He thanked the World Bank officials, both in Delhi and Washington, and the Union Finance Minister for their role in getting the project cleared. Some of the major programmes to be taken up in the various sectors include construction of buildings for 650 primary health centres (PHCs), creating irrigation potential over 20 lakh acres and improving rural roads. Three districts in the backward Telangana region -- Warangal, Karimnagar and Warangal -- would be allocated Rs 100 crore each for rural roads while the remaining amount would be spent on R & B and panchayat roads in other parts of the state.