Budget 2024-25: Centre allocates Rs15,000 cr to build Andhra's capital city; promises Polavaram push

New Delhi, Jul 23 (PTI) In a significant budget largesse for Andhra Pradesh, Finance Minister Nirmala Sitharaman on Tuesday announced a Rs 15,000-crore allocation for the development of the state capital, Amaravati, besides committing to expediting the Polavaram Irrigation Project.

Chief Minister Chandrababu Naidu, whose TDP is a key constituent of the ruling National Democratic Alliance, had been pushing the Centre to address the long-standing commitments under the Andhra Pradesh Reorganization Act to the state which is without a capital city even a decade after bifurcation.

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

The funds will be facilitated through multilateral development agencies this fiscal year, with the promise of additional amounts in the future.

The finance minister also committed to expediting the Polavaram Irrigation Project, describing it as "the lifeline for Andhra Pradesh and its farmers" and linking its completion to national food security.

The budget includes allocations for infrastructure development in Kopparthy (Vishakhapatnam-Chennai Industrial Corridor) and Orvakal (Hyderabad-Bengaluru Industrial Corridor), besides grants for backward regions of Rayalaseema, Prakasam, and North Coastal Andhra.

In a post-budget press conference, Sitharaman expressed concern over the delay in establishing Andhra's capital.

"Ten years passed without a capital city in the state. As per the Act, there should have been a capital. I am not getting into who didn't do it. The Centre is committed to building the capital city," she emphasized.

Regarding the nature of the Rs 15,000 crore fund, Sitharaman clarified that it would be facilitated as a loan from the World Bank, with discussions pending on counterpart funding arrangements between the state and the Centre.

On the Polavaram project, the finance minister acknowledged emerging challenges and pledged full support for its completion.

"We will discuss with the state and provide full support for whatever is required for resolving the current problems facing the project and its completion," she stated.

The budget announcements were welcomed by the TDP with Andhra Pradesh Chief Minister Naidu saying that it will go a long way towards building the state.

Union Civil Aviation Minister Ram Mohan Naidu hailed the measures for bringing a "new breeze of life to five crore people in the state." He emphasised the importance of the NDA alliance in renewing faith among the people of Andhra Pradesh and fulfilling promises made to the state.

The Opposition termed it as a "kursi bachao budget" driven by political compulsions and claimed that it ignored opposition-ruled states in a bid to "appease" BJP's allies.

Criticising the budget, Congress' Andhra Pradesh unit president YS Sharmila said it made no mention of the special category status for the state and alleged that the BJP-led NDA government at the Centre has cheated it again.

The YSRCP also slammed the Centre and said it has given a 'zero' to Andhra Pradesh in the budget. PTI LUX RT RT