VIJAYAWADA: For the first time since the bifurcation of Andhra Pradesh in 2014, the Centre has announced major financial assistance for the State in the form of support to build Amaravati capital city and completion of the Polavaram Irrigation Project at the earliest.
Finance Minister Nirmala Sitharaman, who tabled the Union Budget on Tuesday, announced Rs 15,000 crore for the current financial year and additional amount in the future for building Amaravati. Asserting that the BJP-led NDA government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganization Act, she said, “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.”
Terming the Polavaram Irrigation Project the lifeline of Andhra Pradesh and its farmers, Sitharaman said, “Our government is fully committed to financing and early completion of the Polavaram Irrigation Project. This will facilitate our country’s food security as well.”
Further, she announced that funds will be provided for essential infrastructure such as water, power, railways and roads in Koparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor.
Funding for capital city will increase economic activity: Naidu
An additional allocation will be provided this year towards capital investment for economic growth. Additionally, as stated in the AP Reorganization Act, the Centre will provide grants for backward regions of Rayalaseema, Prakasam and North Coastal Andhra.
Later in the day, during an interaction with journalists, Sitharaman said the Centre will provide assistance to the State in the construction of Amaravati capital city as it is mandated under the AP Reorganisation Act.
She clarified, “The Rs 15,000 crore we have announced will be given through World Bank and other agencies. The State, too, will have to fund the project. Considering the present financial position of the State and whether it can extend the counterpart funding or not or whether the Centre would give the sum as a grant, a call will be taken later after discussion with the World Bank.”
The Finance Minister noted that Andhra Pradesh was the only State in the country without a capital.
Welcoming the Union Budget, Chief Minister N Chandrababu Naidu expressed happiness that his requests for aid, made to the Union Ministers during his visits to New Delhi, had been accepted.
In a brief interaction with mediapersons in the Assembly lobby, he remarked, “Funding for the capital city construction will increase economic activity, as people will be assured that the Centre is supporting the State. This in turn will increase revenue from the taxes. Funds to the State in any form will be beneficial only.”
On the Polavaram project, he said though the exact figure was not given, the Centre has assured that it is its responsibility to ensure completion of the project, which is all that is needed.
Naidu said they are expecting financial support for backward districts along the lines of the Bundelkhand package, which will also ensure industrial incentives.
In a post on X, Naidu said, “On behalf of the people of Andhra Pradesh, I thank the Hon’ble Prime Minister, @narendramodi Ji and Hon’ble Union Finance Minister, @nsitharaman Ji, for recognising the needs of our State and focusing on a Capital, Polavaram, industrial nodes and development of backward areas in AP in the union budget of FY 24-25. This support from the Centre will go a long way towards rebuilding Andhra Pradesh. I congratulate you on the presentation of this progressive and confidence-boosting budget. #APBackOnTrack”.
Speaking in the State Assembly while replying to the Governor’s address, Naidu remarked, “Good days have come again for Amaravati.”
Meanwhile, in a jab against the TDP, the YSRC sought to know why the Chief Minister was thanking the Centre.
In a series of posts on X, YSRC MP V Vijayasai Reddy said, “TDP lost a golden opportunity but settled for Rs 15,000 cr. that will be ‘arranged’ meaning it will be a loan on AP. Bihar gets Rs 26,000 cr. ‘allocated’ and we get Rs 15,000 crore ‘arranged’. As expected Tokenism from Token Development Party (TDP).”
Amaravati: The story so far
Following the bifurcation of the State, the TDP-led NDA formed the government in residual Andhra Pradesh in 2014. The government had taken up construction of interim Secretariat at Velagapudi, Legislative Assembly, High Court complex and started the Seed Access Road. At the time, the Centre, on its part, released Rs 2,500 crore for the construction of Amavarati.
As per Naidu’s proposal, the capital city - to be constructed between Vijayawada and Guntur - with 33,000 acres land pooled from farmers was planned in an extent of 217 square kilometres. It was to have six clusters.
However, when the YSRC won the elections and formed government in 2019, the then Chief Minister, YS Jagan Mohan Reddy, proposed that the State would have three capitals - Legislative capital in Amaravati, Executive capital in Visakhapatnam and Judiciary in Kurnool.
With the TDP-led NDA coming back to power in the State, activity in Amaravati has resumed. Chief Minister N Chandrababu Naidu had made a couple of visits to Delhi and sought budgetary allocations for the State, particularly for Amaravati and Polavaram.
Counterpart funding
Later, Sitharaman clarified, “The Rs 15,000 crore we have announced will be given through World Bank and other agencies. The State, too, will have to fund the project. Considering the present financial position of the State and whether it can extend the counterpart funding or not or whether the Centre would give the sum as a grant, a call will be taken after discussion with the World Bank.”