FM Announces Rs 15,000 Crore for Amaravati capital development

Vijayawada: AP got a bonanza of Rs 15,000 crore for the capital city works in Amaravati through the Union Budget-2024 presented by finance minister Niramala Sitharaman in Parliament on Tuesday.

This would give a major fillip to development of the capital, which lay neglected in the last five years. The Telugu Desam-led alliance in the state has been making a series of efforts to revive Amaravati in a big way.

Sitharaman stated in her budget speech, “Our government has made concerted efforts to fulfill the commitments in the Andhra Pradesh Reorganisation Act. Recognising AP’s needs for a capital, we will facilitate special financial support through multilateral development agencies. This fiscal, an allocation of `15,000 crore will be done, with additional amounts in the coming years.”

“Our government is fully committed to financing early completion of the Polavaram irrigation project, which is the lifeline for AP and its farmers. This will facilitate our country’s food security as well,” she said.

“Under the bifurcation act, there exists a provision for providing central funds to the new states for promoting industrial development and for essential infrastructure such as water, power, railways and roads in Kopparthy node on Hyderabad-Bengaluru Industrial Corridor. An additional allocation will be provided this year towards capital investment for economic growth.”

“Grants for backward regions of Rayalaseema, Prakasam and North Coastal Andhra, as stated in the Act, will also be provided,” the finance minister said.

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While the TD-JS-BJP alliance won 164 of the 175 assembly seats in the recent general elections, chief minister Chandrababu is facing a tough challenge to mobilise funds for development of Amaravati and completion of the Polavaram irrigation project.

The central support of `15,000 crore and special financial support through multilateral agencies would help develop Amaravati and complete the works on the Polavaram irrigation project.

The speeding up of the works in Amaravati would give a big boom to the construction industry and generate employment. Several central agencies and private firms would set up their establishments in the new capital.

Once the Polavaram project is completed, it will help in the cultivation of huge tracts of land and ensure supply of water for industrial use and drinking purposes.

As the TD-led alliance with 21 MPs is a major support to the BJP-led NDA at the Centre, the government of Prime Minister Narendra Modi is seen as being generous in extending additional financial support to AP.