Union Budget 2024: Rs 15,000 Cr allocated to Andhra Pradesh for Capital development

Amaravati: The Central government will provide Rs 15,000 crore financial assistance for Andhra Pradesh for the purpose of development of Amaravati, Union Finance Minister Nirmala Sitharaman said on Tuesday.

Presenting the Budget for 2024-25 in the Lok Sabha, she further said the NDA government at the Centre is fully committed to financing and early completion of Polavaram Irrigation project, which is considered as a lifeline for Andhra Pradesh and its farmers.

"Our government has made concerted efforts to fulfil the commitments in Andhra Pradesh Reorganisation Act. We are recognising the state's need for a capital. We will facilitate special financial support through multilateral development agencies. In the current financial year, Rs 15,000 crore will be arranged with additional amounts in future years," she said.

Sitharaman further said under the AP Reorganisation Act, for promoting industrial developments, funds will be provided for essential infrastructure such as water, power, railways, and roads and also grants for backward regions of Rayalaseema, Prakasam North coastal Andhra Pradesh, as stated in the Act will be provided.

The Telugu Desam Party (TDP) said "special allocations" were made to Andhra Pradesh in the Union Budget after five years, citing "commitments" announced for the Polavaram Project, industrial corridors and others.

Minister Nara Lokesh welcomed the Central government’s budgetary proposals providing support to Amaravati and Polavaram Irrigation project.

"Thanks to the Central government which announced that it will provide full support for the completion of the projects of Amaravati, the capital of Andhra Pradesh, and Polavaram project, the lifeline of AP. On behalf of the people of the state, we express our gratitude to the NDA government for committing to the reconstruction of Andhra Pradesh by allocating Rs 15,000 crore in the budget," he said.

Budget 2024 AP highlights:

1. States in Eastern parts including Andhra Pradesh, Bihar Odisha, and Jharkhand to be benefited under scheme "Purvodaya".

2. Andhra to get special financial support of Rs 15,000 crore for development of Capital.

3. Committed to finace for the Polavaram Irrigation Project.

4. Made efforts to expedite Andhra Pradesh Reorganisation Act.

5. Special financial support via multilateral agencies.

Ahead of the budget presentation today, Chief Minister N Chandrababu Naidu made a couple of visits to the national capital where he met Prime Minister Narendra Modi and Home Minister Amit Shah, presenting various requests to them.

Specific allocations after long time

Ahead of the budget presentation today, Chief Minister N Chandrababu Naidu made a couple of visits to the national capital where he met Prime Minister Narendra Modi and Home Minister Amit Shah, presenting various requests to them.

The allocations in the budget for Andhra Pradesh underscore the NDA government's reliance on crucial support from the Telugu Desam Party, which holds 16 Lok Sabha seats, and actor Pawan Kalyan-led Janasena, with two seats.

The substantial aid earmarked for Amaravati is expected to bolster the TDP-led NDA government’s morale in the state, jumpstarting the stalled capital project after a hiatus of five years under the YSRCP government led by Y S Jagan Mohan Reddy, which had pushed a three-capital theory.