BREAKING | ₹15,000 Crore For Andhra Pradesh's New Capital: Nirmala Sitharaman Announces in Budget

New Delhi:  In her seventh consecutive budget presentation, Finance Minister Nirmala Sitharaman announced big financial assistance for Andhra Pradesh. Speaking in the Lok Sabha, Sitharaman confirmed that the state (AP) will receive ₹15,000 crore in support for the development of its capital. “Andhra Pradesh Reorganisation Act- Our govt has made efforts to fulfil the commitments in the Andhra Pradesh Reorganisation Act. 

Recognising the state's need for capital, we will facilitate special financial support through multilateral agencies. In the current FY, Rs 15,000 crore will be arranged with additional amounts in future years”, Sitharaman said.

Moreover, she stated, “Under the AP Reorganisation Act, for promoting industrial developments, funds will be provided for essential infrastructure such as water, power, railways, and roads and also grants for backward regions of Rayalaseema, Prakasam North coastal Andhra Pradesh, as stated in the Act will be provided.”

Without specifying the magnitude of funds or a timeline, the finance minister observed that the Centre is "fully committed" to financing and early completion of the Polavaram Project and termed it as the lifeline of Andhra Pradesh and its farmers. According to Sitharaman, the Polavaram Project, a mega-irrigation project on the Godavari River, will also facilitate food security for the country.

As part of the industrial development of the southern state under the Andhra Pradesh Reorganisation Act, 2014, she said funds will be provided for essential infrastructure such as power, water and railways in Kopparthi node of the Visakhapatnam Chennai Industrial Corridor.

Sitharaman said a similar impetus will be extended to the Orvakal node of the Hyderabad Bengaluru Industrial Corridor. Further, she emphasised that additional allocation will be provided this year towards capital investment for economic growth, without mentioning the specifics.

The finance minister promised grants as mentioned in the Andhra Pradesh Reorganisation Act, 2014 for backward regions in Rayalaseema, Prakasam and North Coastal Andhra regions.

Andhra Pradesh Minister Nara Lokesh welcomed the Central government’s budgetary proposals providing support to Amaravati and Polavaram Irrigation project. "Thanks to the Central government which announced that it will provide full support for the completion of the projects of Amaravati, the capital of Andhra Pradesh, and Polavaram project, the lifeline of AP.

"On behalf of the people of the state, we express our gratitude to the NDA government for committing to the reconstruction of Andhra Pradesh by allocating Rs 15,000 crore in the budget," he added.