There has been a mixed response to the allocations made for Andhra Pradesh in the budget. Critics argue that significant funds have been allocated only to the Polavaram Project and Visakhapatnam Steel Plant, while other areas have been neglected.
Published Feb 01, 2025 | 5:51 PM ⚊ Updated Feb 01, 2025 | 5:59 PM
Union Budget 2025: Rs 5936 crore allotted to centre's ally TDP for Polavaram project
The central government has allocated ₹5,936 crore for Polavaram Project in the 2025-2026 Union budget for NDA-led Andhra Pradesh. The Bharatiya Janata Party (BJP) is a junior partner in Chief Minister Chandrababu Naidu’s government.
Additionally, a balance grant of ₹12,157.53 crore has been sanctioned, besides approving the revised estimate for ₹36,436.96 crore.
The allocations are as follows:
Approval of the revised project cost of ₹36,436.96 crore.
Allocation of ₹5,936 crore in the current budget.
Sanction of a balance grant of ₹12,157.53 crore.
Allocation of ₹54 crore for the Polavaram Project Authority.
Approval for water storage up to a height of 41.15 meters.
In the previous fiscal year (2024-2025), the central government released only about ₹2,400 crore for Polavaram, which did not fully reflect the promised allocations. However, due to the lack of clarity from the YSRCP government regarding the utilisation of these funds, the central government is understood to have halted further releases.
In the 2023-2024, the central government announced substantial allocations for Polavaram. It consented to grant ₹12,911 crore to Andhra Pradesh to complete the first phase of the project.
Gorantla Buchaiah Chowdary, TDP MLA from Rajamahendravaram Rural, commented, “When asked for expenditure details for the construction of the Polavaram Project, the then YSRCP government did not provide proper accounts. Suspecting misappropriation of the funds, the central government halted further releases. Due to the negligence of the YSRCP, the project works faced obstacles. Now, we thank the NDA for allocating funds to Polavaram once again.”
Recently, a special package of ₹11,440 crore was announced for the steel plant. Additionally, ₹730 crore has been allocated for the development of Visakhapatnam Sea Port.
Other allocations for Andhra Pradesh include:
₹162 crore for strengthening health systems.
₹186 crore for natural farming.
₹375 crore to support the Learning Transformation Operation.
₹240 crore for the construction of roads and bridges in the state.
₹242.50 crore for the second phase of the AP Irrigation Livelihood Improvement Project.
There has been a mixed response to the allocations made for Andhra Pradesh in the budget. Critics argue that significant funds have been allocated only to the Polavaram Project and Visakhapatnam Steel Plant, while other areas have been neglected. Although support for the construction of the capital city, Amaravati, was mentioned, no specific allocations were made, leading to dissatisfaction among the people of Andhra Pradesh.
Malireddy Venkataratnam, a retired Employment Joint Director from Kakinada, expressed concern, “The central government has not considered the provisions of the Andhra Pradesh Reorganisation Act. Special funds should be allocated for the construction of Amaravati. Is it enough to say they will provide funds?”he asked.
(Edited by Ananya Rao)
