In a move to keep one of its most prominent allies, TDP, happy, Union Minister Nirmala Sitharaman, announced several projects for Andhra Pradesh on Tuesday while presenting the Union Budget 2024 in Lok Sabha. This comes amid the TDP chief raising the demand for a special category status for Andhra with renewed vigour.
The BJP-led NDA government at the Centre had to, as predicted by many, take this step towards Andhra as it heavily depends on Chandrababu Naidu's TDP to keep the govt floating.
In a significant move, Sitharaman announced that three Andhra districts will be provided with a backward region grant and said that the government is committed to the completion and financing of the Polavaram irrigation project.
In addition to this, in a much-anticipated move, the FM also said that the Centre will facilitate special financial support for the development of Andhra's capital city, Amaravati.
Andhra Pradesh Reorganisation Act- Our govt has made efforts to fulfil the commitments in 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," said Sitharaman.
The TDP after the announcements said "special allocations" were made to Andhra Pradesh in the Union Budget after five years, citing "commitments" announced for the Polavaram Project, industrial corridors and others.
In a post on 'X', the ruling party noted that Rs 15,000 crore funds were allocated for the reconstruction of Andhra Pradesh in fiscal 2024-25.
"Rs 15,000 crore for reconstruction of Andhra Pradesh this fiscal, additional funds for Polavaram (Project) lifeline, funds for Vizag Chennai Industrial Corridor this year and special funds for seven backward districts," said the party in the post.
Presenting the Budget for 2024-25 in the Lok Sabha, Union Finance Minister Nirmala Sitharaman said that the NDA government at the Centre has "made concerted efforts to fulfil the commitments" in the Andhra Pradesh Reorganisation Act, 2014.
Sitharaman said, "special financial support" will be facilitated by the Union Government through multilateral agencies.
"Recognising the state's need for the capital, we will facilitate special financial support through multilateral development agencies. In the current financial year, Rs 15,000 crore will be arranged with additional amounts in future years," she said.
Announcement without a timeline or magnitude of funds
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 similar impetus will be extended to the Orvakal node of 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.
