New Delhi: Finance Minister Nirmala Sitharaman in her budget speech announced the monetary allocation of Rs 15,000 crore for Andhra Pradesh in FY25 for the development of its capital. Under the Centre's plan, Rs 15,000 crore will be allocated for the development of Amravati as Andhra Pradesh's capital. Sitharaman further said money will be raised from multilateral funding agencies and routed through the Centre.
On efforts made to fulfil the commitments in Andhra Pradesh Reorganisation Act, the FM said. "Recognising the state's need for capital, we will facilitate special financial support through multilateral agencies." In the current FY, Rs 15,000 crore will be arranged with additional amounts in future years. Rs 15,000 crore was allocated for the development of Amravati as AP's capital.
Narendra Modi-led government's emphasis on Andhra Pradesh is significant as the Telugu Desam Party (TDP) emerged as a 'kingmaker' ally in the NDA coalition post the Lok Sabha elections.
The Finance Minister also stated that the central government is committed to financing and early completion of the crucial Polavaram project in Andhra Pradesh as it facilitates food security in the country. "Our government is fully committed to financing and early completion of the Polavaram irrigation project, which is the lifeline for Andhra Pradesh and its farmers. This will facilitate our country's food security as well," Sitharaman said.
On providing funds for the development of essential infrastructure in the state, Sitharaman said, "Under the Andhra Pradesh Reorganisation Act, for promoting industrial development, funds will be provided for essential infrastructure such as water, power, railways and roads."
The Finance Minister also announced additional allocation for capital investment on the Visakhapatnam-Chennai Industrial Corridor and the Hyderabad Chennai Industrial Corridor.
"In the Koparthy node on the Visakhapatnam-Chennai Industrial Corridor and the Orvakal node on the Hyderabad Chennai Industrial Corridor, an additional allocation will be provided this year towards capital investment for economic growth," she said. Sitharaman also acknowledged the need for giving grants to backward regions in the state as stated in the Andhra Pradesh Reorganisation Act.
"Grants for backward regions of Rayalseema, Prakasam, and North Coastal Andhra as stated in the Act will be provided," she said.
The big-scale announcement in the Budget comes at a time when the National Democratic Alliance has been recently elected to power in Andhra Pradesh, with the Telugu Desam Party being a crucial alliance partner in the government both at the state and the Centre.
