In Vijayawada, Union Finance Minister Nirmala Sitharaman revealed on Tuesday that the Centre has earmarked Rs 15,000 crore for the development of Amaravati, the capital city of Andhra Pradesh. This financial support underscores the Centre's commitment to the completion of the Polavaram Project as well.
"We recognize the state's need for a capital. We will facilitate financial support with Rs 15,000 crore initially arranged, and additional funds in subsequent years," Sitharaman declared during the Union Budget 2024 announcement.
She emphasized the Centre's dedication to fulfilling obligations outlined in the AP Reorganisation Act, which includes the Polavaram Project crucial for agricultural activities.
This announcement has provided significant support to the TDP-led NDA government in Andhra Pradesh, which has prioritized the construction of Amaravati after it was sidelined by the previous YSRC administration.
At a time when state resources are limited, the Centre's pledge has come as a relief to the Chandrababu Naidu-led government. Additionally, Sitharaman unveiled plans for industrial development, including the Visakhapatnam-Chennai Industrial Corridor and the Orvakal-Hyderabad Industrial Corridor, further enhancing economic prospects in the region.