Vijayawada: Following the division of Andhra Pradesh in 2014, the Central government has announced significant financial assistance for the state, marking the first such support since the bifurcation. Finance Minister Nirmala Sitharaman, presenting the Union Budget, unveiled a commitment of Rs 15,000 crore for the current fiscal year towards the development of Amaravati as the capital city and the expedited completion of the Polavaram Irrigation Project.
Emphasizing the government's adherence to the Andhra Pradesh Reorganization Act, Sitharaman underscored the necessity of a dedicated capital for the state and pledged special financial aid through international development institutions. The initial disbursement of Rs 15,000 crore is set to be supplemented in subsequent years.
The Finance Minister clarified that the funding for Amaravati's construction would involve collaboration with entities like the World Bank, with discussions ongoing regarding the nature of funding—whether as a grant or with counterpart contributions from the state, taking into account its current financial standing.
Acknowledging Andhra Pradesh's unique status as the sole state without a designated capital, Sitharaman assured continued support for comprehensive development initiatives, including infrastructure enhancements in key industrial nodes and assistance for economically disadvantaged regions as outlined in the AP Reorganization Act.
In response, Chief Minister N. Chandrababu Naidu expressed gratitude for the Centre's recognition of the state's needs and its commitment to fostering economic growth through strategic investments. He highlighted the potential economic benefits of central funding for Amaravati's development, stressing its role in stimulating revenue generation and overall prosperity in the region.
As discussions progress, stakeholders anticipate further clarity on the financial modalities and the timeline for implementing these transformative projects aimed at revitalizing Andhra Pradesh's economic landscape.