Budget Bonanza: ₹15,000 Crore Allocated to Develop Andhra's Amaravati

Budget Bonanza: ₹15,000 Crore Allocated to Develop Andhra's Amaravati

New Delhi, July 23, 2024 - In a significant boost to Andhra Pradesh, Union Finance Minister Nirmala Sitharaman has announced a financial allocation of ₹15,000 crore for the development of the state's capital, Amaravati. This announcement was part of the Union Budget 2024-25, which aims to address the financial challenges faced by the bifurcated state.

Key Announcements

1. Financial Support for Amaravati: The Finance Minister emphasized the central government's commitment to developing Amaravati as the capital of Andhra Pradesh. This substantial allocation is aimed at facilitating the construction and development of necessary infrastructure in the new capital.

2. Polavaram Project: Ms. Sitharaman reiterated the government's pledge to ensure the early completion of the Polavaram multipurpose irrigation project, which is considered the lifeline of Andhra Pradesh. The project is crucial for ensuring the state's water security and supporting its agricultural sector.

3. Industrial Development and Infrastructure: The budget also includes provisions for promoting industrial development and enhancing essential infrastructure such as roads, water, power, and railways. The Kopparthy Industrial Node and the Chennai-Vizag industrial corridor are set to be developed on a priority basis. Special grants have been allocated for the backward regions of Rayalaseema, Prakasam, and North Coastal Andhra Pradesh.

4. Purvodaya Plan: The Finance Minister introduced the 'Purvodaya' plan, aimed at the overall development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. This plan is expected to facilitate special financial support through multilateral agencies, benefiting various development projects across these states.

Political Reactions

Chief Minister Chandrababu Naidu: Andhra Pradesh Chief Minister and Telugu Desam Party (TDP) leader N. Chandrababu Naidu expressed his gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman. He lauded the budget as progressive and confidence-boosting, highlighting that the allocations would significantly contribute to rebuilding the state.

Opposition Congress Criticism: The announcement did not sit well with the opposition. Senior Congress leader Jairam Ramesh criticized the budget allocations, pointing out that despite past demands for special category status for Andhra Pradesh, the state has only received "special financial support" for Amaravati. He took a jibe at Naidu, referencing his previous departure from the NDA in 2018 over unmet promises.

Implications for Andhra Pradesh

The financial boost comes at a crucial time for Andhra Pradesh, which has been grappling with financial instability and developmental challenges since its bifurcation. The allocation for Amaravati is expected to accelerate the capital's development, making it a modern city with robust infrastructure. The focus on the Polavaram project and industrial development will further strengthen the state's economy and enhance its growth prospects.

Conclusion

The Union Budget 2024-25 has brought significant financial support to Andhra Pradesh, addressing key developmental projects and infrastructure needs. While the political reactions have been mixed, the allocations mark a step forward in the state's efforts to overcome financial hurdles and achieve sustainable development. The implementation of these projects will be closely watched as Andhra Pradesh strives to build a prosperous future.