In a significant announcement during the Union Budget 2024 presentation, Finance Minister Nirmala Sitharaman declared a substantial allocation of ?15,000 crore for the development of Andhra Pradesh's new capital. Speaking in the Lok Sabha, FM Sitharaman emphasized the Centre's commitment to fulfilling the promises made in the Andhra Pradesh Reorganisation Act and addressing the developmental needs of the state's emerging capital.
?Andhra Pradesh Reorganisation Act- Our govt has made efforts to fulfil the commitments in Andhra Pradesh Reorganisation Act. Recognising the state's need for capital, we will facilitate special financial support through multilateral agencies. In the current FY, ?15,000 crore will be arranged with additional amounts in future years,? said Sitharaman.
The Finance Minister highlighted that the central government would provide special financial support through multilateral agencies to aid the capital development project. This move aims to bolster the state's infrastructure and promote industrial development by funding essential infrastructure such as water, power, railways, and roads.
?Under the Andhra Pradesh Reorganisation Act, for promoting industrial development, funds will be provided for essential infrastructure such as water, power, railways, and roads,? Sitharaman stated.
Additionally, Sitharaman acknowledged the need to support backward regions within the state. "Grants for backward regions of Rayalseema, Prakasam, and North Coastal Andhra as stated in the Act will be provided," she added.
This announcement aligns with the demands of the Andhra Pradesh government, led by the NDA ally Telugu Desam Party (TDP), which has been advocating for ?15,000 crore to develop Amaravati as the new capital. The TDP has been a crucial ally for the National Democratic Alliance, playing a significant role in the Lok Sabha elections.
Following the bifurcation of Andhra Pradesh and Telangana in 2014, Hyderabad was designated as the common capital for both states for ten years under the Andhra Pradesh Reorganisation Act. However, as of June 2 this year, Hyderabad ceased to be the capital city of Andhra Pradesh.
The allocation of ?15,000 crore marks a crucial step in supporting Andhra Pradesh?s infrastructure development and fulfilling the central government's commitments under the Reorganisation Act. This financial boost is expected to significantly contribute to the growth and development of the state's new capital.
