VIJAYAWADA: The State government has allocated a substantial sum of Rs 18,019 crore for the Water Resources Department in the 2025-26 Budget, emphasising its commitment to critical irrigation and water projects across the State.
In his budget speech, Finance Minister Payyavula Keshav highlighted the importance of irrigation projects, particularly the Polavaram, which had been neglected during the previous YSRCP regime. Keshav referred to the deterioration of crucial dams under the previous administration, with no efforts made to repair them. However, he pointed out the contrast when the Tungabhadra Dam—an Inter-State project—was damaged; Chief Minister N Chandrababu Naidu acted swiftly, sending experts to protect the State’s water resources.
Keshav also addressed the backlog of over Rs 10,000 crore in pending bills inherited from the previous government, including withheld Neeru-Chettu bills. He assured that the State government has already cleared Rs 4,600 crore in outstanding payments, with plans to settle the remaining bills soon. Regarding the Polavaram Project, Keshav announced that the State government’s persistent efforts resulted in the Union government sanctioning Rs 12,157 crore for the first phase, set for completion by 2027.
To further bolster water management, the State has proposed a Polavaram - Banakacherla River Interlinking Project aimed at capturing an estimated 2,000 TMC of water currently wasted into the sea. This initiative is expected to make the State drought-proof in the coming years.
Minister Keshav likened the situation to the devastation of Hiroshima and Nagasaki and expressed optimism about Andhra Pradesh’s recovery, stating that, like those cities, the State would eventually overcome the challenges and move forward.
Green Energy hub by 2030
Additionally, the Energy Department has been allocated Rs 13,600 cr, with a focus on positioning Andhra Pradesh as a green energy hub by 2030. The budget outlines plans for establishing Renewable Energy Manufacturing Zones, which are expected to attract investments worth Rs 10 lakh crore and create about 7.5 lakh jobs.
