Budget 2024-25: Rs 15,000 Cr for Andhra Pradesh Capital

New Delhi, Jul 23 (PTI) Finance Minister Nirmala Sitharaman on Tuesday announced Rs 15,000 crore for the development of Andhra Pradesh's capital city this fiscal, addressing long-standing commitments under the Andhra Pradesh Reorganization Act.

Presenting the Budget for 2024-25, Sitharaman outlined a comprehensive plan that addressed key issues faced by Andhra Pradesh post-bifurcation.

The minister promised to facilitate additional funds for development of the capital Amaravati in coming years. She also gave a commitment to finance and expedite the Polavaram Irrigation Project, allocation for infrastructure in industrial corridors, and grants for backward regions.

"Our government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganization Act," Sitharaman said, acknowledging the state's need for a capital.

The Rs 15,000 crore will be facilitated through multilateral development agencies this fiscal, with additional amounts in future years, she added.

Terming Polavaram "the lifeline for Andhra Pradesh and its farmers," Sitharaman linked its completion to national food security.

She also announced funds for infrastructure in Kopparthy (Vishakhapatnam-Chennai Industrial Corridor) and Orvakal (Hyderabad-Bengaluru Industrial Corridor).
Grants for backward regions of Rayalaseema, Prakasam, and North Coastal Andhra, as mandated by the Reorganization Act, were also part of the package.

The announcements come amid demands from BJP ally Telugu Desam Party (TDP) for Central support to address post-bifurcation challenges and rebuild the state.