Union Budget 2024 | Bonanza for Andhra with funds for Polavaram project, backward districts and industrial nodes

Besides, the government will take up setting up of power projects, including a 2,400 MW power plant at Pirpainti in Bihar at a cost of Rs 21,400 crore.

Hyderabad: In a significant announcement that had brought cheers to the NDA's important ally, the TDP, union finance minister Nirmala Sitharaman, in her budget speech on Tuesday, said the Centre would facilitate funding for the development of Amaravati capital city through multilateral development agencies.

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To start with this financial year, Rs 15,000 crore will be arranged, along with additional amounts in future years. Without mentioning the quantum of funds, she had also assured the Centre's commitment to the early completion of the Andhra Pradesh lifeline Polavaram multipurpose project. Both the Amaravati and Polavaram projects have been the mainstays and requests of the Andhra Pradesh chief minister, N Chandrababu Naidu, to the Centre.

In his two visits to the national capital in the last 20 days, Naidu, submitted a wish list to the Centre. During his visit to Delhi in the first week of July, Naidu met the prime minister, Narendra Modi, and half a dozen union cabinet ministers including Nirmala Sitharaman. On July 16, he again visited Delhi and met Union Home Minister Amit Shah.

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“Recognising the state’s need for 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. 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,” said Nirmala Sitharaman.

The Andhra Pradesh Reorganisation Act had found special mention in the budget speech of Nirmala Sitharaman.

“Our government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganisation Act. Under the Act, for promoting industrial development, funds will be provided for essential infrastructure such as water, power, railways, and roads in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on the Hyderabad-Bengaluru Industrial Corridor. An additional allocation will be provided this year towards capital investment for economic growth. Grants for the backward regions of Rayalaseema, Prakasam, and North Coastal Andhra, as stated in the Act, will also be provided,” she said.

Other requests overlooked

However, other big-ticket projects like Outer Ring Road (ORR) in Amaravati, an Aqua Park, and other requests by Naidu for short-term hand holding of state finances and industrial incentives were overlooked.

Naidu was also critical and particular about the announcement of the proposed BPCL refinery for Andhra Pradesh in the budget itself. This request was also ignored.

Stating that Andhra Pradesh is back on track and terming it a red letter day in the history of the state, IT minister Nara Lokesh thanked Nirmala Sitharaman for the allocations to Andhra Pradesh in the union budget.

“I am extremely delighted and grateful for the Union Finance Minister’s announcements today in the budget. These will go a long way towards helping Andhra Pradesh achieve its development and social objectives. It’s a matter of great pride for the people of Andhra Pradesh that our struggle has been recognised, and a special and holistic package has been provided covering all important areas like industrial growth, infrastructure, irrigation, and HRD. I would like to make a special mention of the generous contribution made towards Amaravati and Polavaram. Today will be marked as a red-letter day in the new state’s history. This is the first step towards our march together towards building the state of our dreams,” said Lokesh.

Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.