(MENAFN- IANS) Amaravati, July 23 (IANS) The announcements made for Andhra Pradesh in the Union Budget 2024-25 brought cheer to the BJP's key ally, Chief Minister Nara Chandrababu Naidu as they met most of his main demands, especially for the development of the state capital Amaravati and the Polavaram project.
Naidu, whose Telugu Desam Party (TDP) is a key partner in BJP-led NDA government at the Centre, hailed the announcement to "arrange" Rs 15,000 crore for Amaravati, his dream project.
"Recognising the state's need for a capital, we will facilitate special financial support through multilateral development agencies. In the current financial year, Rs 15,000 crore will be arranged, with additional amounts in future years," said Union Finance Minister Nirmala Sitharaman while presenting the Budget in the Parliament.
Chief Minister Naidu was happy that the Centre accepted most of his proposals. He told media persons that no matter how the funds come, they will be very useful for resuming state capital development works.
As the development of the state capital had come to a standstill in 2019 with the then YSR Congress Party government announcing the three capitals policy, he hoped that the Centre's announcement would help in resuming the works.
Naidu, who is also the TDP chief, said the flow of funds would spur economic activity and the state would also get tax revenues. He hoped that depending on the requirements, the Centre would make more funds available through agencies. He also claimed that the funds to be made available through agencies in the form of loans are to be repaid only after 30 years.
He said the state would get the loans with the Centre giving the collateral. He hoped that the Modi government would also give grants for the capital development.
As the Polavaram project is the second priority of Naidu, he welcomed the announcement made in the budget.
"Our government is fully committed to financing and early completion of the Polavaram Irrigation Project, which is the lifeline for Andhra Pradesh and its farmers. This will facilitate our country's food security as well," the Finance Minister said in her budget speech.
Naidu said though the Centre did not announce the quantum of funds, it took the responsibility of completing the project, which was already declared a national project.
Finance Minister Sitharaman also announced that grants for backward regions of Rayalaseema, Prakasam and North Coastal Andhra will also be provided, as stated in the Andhra Pradesh Reorganisation Act.
Naidu said he had information that the funds for backward districts would be on the lines of the Bundelkhand package. Industrial incentives are likely to be included in this assistance.
"Under the Act, for promoting industrial development, funds will be provided for essential infrastructure such as water, power, railways and roads in the Kopparthy node on the Visakhapatnam-Chennai Industrial Corridor and Orvakal node on the Hyderabad-Bengaluru Industrial Corridor. An additional allocation will be provided this year towards capital investment for economic growth," the Finance Minister said.
During his meeting with Prime Minister Narendra Modi on July 4, Naidu had sought financial handholding by the Centre to tide over the "acute scarcity of resources". he had also sought the Centre's support in the commissioning of the Polavaram National Irrigation Project, comprehensive financial support for the completion of the government complex and trunk infrastructure of the capital city of Amaravati, and incentives for industrial development.
The Chief Minister also urged the Prime Minister to consider an additional allocation under the Scheme for Special Assistance to States for Capital Investment, targeting essential sectors such as roads, bridges, irrigation and drinking water projects. He also sought support for the backward regions of Andhra Pradesh along the lines of the Bundelkhand package and support for the development of Duggirajupatnam port.
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