More Stories

Informist, Tuesday, Jul 23, 2024

 

--Special fincl support for Andhra via multilateral agencies

--Will provide 150 bln rupees to Andhra in FY25

--Will provide more fincl support to Andhra in future

--Fully committed to financing of Polavaram project in Andhra

--Made efforts to expedite Andhra Pradesh Reorganisation Act

--To provide grants for Rayalaseema, north coastal Andhra

 

HYDERABAD - Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget for 2024-25 (Apr-Mar) today, announced a 150-bln-rupee special financial assistance for Andhra Pradesh via multilateral agencies to facilitate the state's development plan for a new capital. This is in line with Andhra Pradesh Chief N. Chandrababu Naidu's request. Naidu's Telugu Desam Party is a key ally of the Bharatiya Janata Party-led National Democratic Alliance and its support helped the NDA form a government at the Centre after the General Election this year.

 

"Recognising the state's need for a (sic) capital, we will facilitate special financial support through multilateral development agencies. In the current financial year, 15,000 crore (150 bln rupees) will be arranged, with additional amounts in future years," Sitharaman said in her Budget speech. The additional amounts will be provided to complete the capital city, Amaravati, the finance minister added.

 

Andhra Pradesh has been demanding special category status and adequate financial assistance as part of the Andhra Pradesh Reorganisation Act, 2014. In 2014, the then Naidu-led government selected Amaravati to be the state capital and drew up an ambitious plan to develop a greenfield city. However, the plan was set aside after Naidu lost power in 2019.

 

With Naidu back as chief minister, the development of Amaravati has taken centre stage. The new government has presented its plan to develop the city and sought funds from the Centre as the state is debt-ridden. Central assistance is key for Naidu to implement the plan.

 

Sitharaman said that as part of the government's commitment towards expediting the Andhra Pradesh Reorganisation Act, 2014, the Centre will further support the state's development with funds. The Finance Minister said the government will provide adequate grants for the development of the Rayalaseema and north coastal Andhra regions. The government will continue to support the Polavaram irrigation project and is committed to its early completion, she added. 

 

"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," she said. The Polavaram project is fully funded by the Centre while the state government is executing it. Around 70% of the construction work is complete.

 

Under the Act, the government will promote industrial development and provide funds for the development of essential infrastructure such as water, power, railways, and roads in Kopparthy node on the Vishakhapatnam-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 of the state, she added. The government will also provide grants for backward regions of Rayalaseems, Prakasam, and north coastal Andhra, she said.  End 

 

Reported by Narayana Krishna

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.