Rs 15,000 Crore Boost for Andhra Pradesh's Development

Finance Minister Nirmala Sitharaman announced a Rs 15,000 crore allocation for the development of Andhra Pradesh’s capital, Amaravati, in the 2024-25 Budget. The plan includes additional funds for the Polavaram Irrigation Project, infrastructure developments in industrial corridors, and grants for backward regions as per the Andhra Pradesh Reorganization Act.

Finance Minister Nirmala Sitharaman on Tuesday announced a Rs 15,000 crore allocation for developing Andhra Pradesh's capital city this fiscal year, addressing crucial commitments under the Andhra Pradesh Reorganization Act.

Unveiling the 2024-25 Budget, Sitharaman presented a detailed plan to tackle post-bifurcation issues faced by Andhra Pradesh. The finance minister committed to securing further funds for Amaravati's development in future years. She also vowed to fund and expedite the Polavaram Irrigation Project, and allocated resources for infrastructure in key industrial corridors, alongside grants for backward regions.

''Our government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganization Act,'' Sitharaman said, recognizing the state's need for a capital.

The allocated Rs 15,000 crore will be sourced through multilateral development agencies this fiscal, with additional funds planned for coming years, she added.

Describing Polavaram as ''the lifeline for Andhra Pradesh and its farmers,'' Sitharaman linked its completion to national food security. She also announced infrastructure funds for Kopparthy (Vishakhapatnam-Chennai Industrial Corridor) and Orvakal (Hyderabad-Bengaluru Industrial Corridor).

Grants for the backward regions of Rayalaseema, Prakasam, and North Coastal Andhra, as stipulated by the Reorganization Act, were also included in the package.

The announcements were made amid demands from BJP ally Telugu Desam Party (TDP) for Central support to address post-bifurcation issues and rebuild the state.