Photo Credit: Sansad TV
Finance Minister Nirmala Sitharaman unveiled a ₹15,000 crore financial package for Andhra Pradesh aimed at advancing the construction of its capital city, Amaravati, and bolstering overall state development. Addressing Parliament during the budget session, Sitharaman underscored the government’s commitment to fulfilling obligations outlined in the Andhra Pradesh Reorganisation Act.
Highlighting the state’s imperative for a capital city, Sitharaman noted the facilitation of special financial support through international development agencies. She outlined plans to secure ₹15,000 crore in the current fiscal year with additional funding provisions for subsequent years. The Finance Minister emphasized the government’s resolve to accelerate the completion of the Polavaram Irrigation Project, critical for the state’s agricultural sustainability and national food security.
Additionally, under the Andhra Pradesh Reorganisation Act, funding will be allocated for essential infrastructure projects along the Vishakhapatnam-Chennai and Hyderabad-Bangalore industrial corridors to stimulate industrial growth. Sitharaman also announced supplementary funds earmarked for capital investments aimed at bolstering economic expansion, along with grants for underdeveloped districts.
The allocation comes months after the Telugu Desam Party (TDP), in alliance with the Bharatiya Janata Party (BJP), joined the National Democratic Alliance (NDA) government formed in June. The BJP-led coalition, with support from the TDP and Nitish Kumar’s JDU, currently governs at the Centre.
Since 2014, political parties in Andhra Pradesh have consistently pressed for special category status, seeking enhanced central assistance through tax benefits and developmental aid. Following Sitharaman’s budget announcement, the Congress criticized the TDP, led by Chandrababu Naidu, for securing “special financial support” instead of the coveted special category status.
“In 2018, Chandrababu Naidu quit the NDA due to the Prime Minister’s failure to grant Special Category Status to Andhra Pradesh. Six years later, at a time when his party supports the government, all he has managed is ‘special financial support’ for Amaravati,” remarked Congress leader Jairam Ramesh.
