The Union Budget of 2024-25 came out to be positive for Andhra Pradesh and even more so for one of the key BJP allies and the chief minister, Nara Chandrababu Naidu. This catered to most of Naidu's key demands and focused much on the state capital's development plan at Amaravati and the Polavaram project.
Naidu, whose TDP is an important constituent of the BJP-led NDA government at the Centre, stated he was satisfied with provisions in the budget. Union Finance Minister Nirmala Sitharaman announced Rs 15,000 crore to be provided towards Amaravati, stating it was a special financial support through multilateral development agencies. "Responding to the requirement of the state in respect of its capital, we will support it through multilateral development agencies in a special manner. In the current financial year, Rs 15,000 crore shall be arranged, with additional requirements in future years," Sitharaman said while presenting the budget.
Naidu welcomed the Centre's nod to his proposals and said that even a trickle of funds would go a long way in restarting the development of the state capital. He reminded that at Amaravati, work was at a standstill since 2019, when the YSR Congress Party decided to pursue the three capitals policy. The Chief Minister hoped the new funding would reactivate the development projects.
He also added that the funds would trigger economic activity and the state would get additional tax revenue. He hoped that the Centre would sanction more funds through its development agencies, which would be repaid within 30 years. Naidu also said the Centre would also give collateral for these loans and hoped that capital development would get more grants from the Modi government.
Another priority of Naidu, the Polavaram project, also got a mention in the budget. Sitharaman assured the government's support to funding and completion of this highly essential irrigation project for Andhra Pradesh's agriculture and food security. "Our government is fully committed to financing and early completion of the Polavaram Irrigation Project, which is the lifeline for Andhra Pradesh and its farmers. This will facilitate our country's food security as well," Sitharaman declared.
Although the quantum of funds for Polavaram was not mentioned in the budget, Naidu welcomed the Centre's commitment to its completion by virtue of its national project status.
The Finance Minister also mentioned grants for backward regions of Rayalaseema, Prakasam and North Coastal Andhra as per the Andhra Pradesh Reorganisation Act. Naidu hoped that the grants would be on the lines of the Bundelkhand package and could even include industrial incentives.
She said funds would be provided for water, power, railways and roads at major industrial nodes like Kopparthy on the Visakhapatnam-Chennai Industrial Corridor, and Orvakal on Hyderabad-Bengaluru Industrial Corridor. An additional capital investment allocation was also announced to support economic growth.
Naidu had, in his meeting with Prime Minister Narendra Modi on July 4, demanded financial assistance from the Centre to tide over resource crunch. He sought support for the Polavaram National Irrigation Project, comprehensive financial backing for Amaravati's government complex and infrastructure, and incentives for industrial development. The Chief Minister also asked the Prime Minister to consider additional allocations under the Scheme for Special Assistance to States for Capital Investment and support for the development of Duggirajupatnam port, apart from the backing for backward regions in Andhra Pradesh on lines of the Bundelkhand package.
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