Union Finance Minister Nirmala Sitharaman announced on Tuesday that the Central government will allocate Rs 15,000 crore for the development of Amaravati in Andhra Pradesh. While presenting the 2024-25 Budget in the Lok Sabha, she emphasized the NDA government’s commitment to the timely financing and completion of the Polavaram Irrigation project, deemed vital for the state and its agricultural community.

“The government has been dedicated to meeting the obligations set out in the Andhra Pradesh Reorganisation Act. Acknowledging the state’s requirement for a capital, we will ensure special financial assistance through international development agencies. This fiscal year, we will secure Rs 15,000 crore, with additional funds to follow in subsequent years,” she said.

Sitharaman also mentioned that, as per the AP Reorganisation Act, funds for critical infrastructure development in industries, including water, power, transport, and roads, will be provided, along with grants for the underdeveloped areas of Rayalaseema, Prakasam, and North coastal Andhra Pradesh.

The Telugu Desam Party (TDP) is a significant ally of the BJP at the Centre. Naidu serves as the Chief Minister of Andhra Pradesh. Since 2014, political parties from Andhra Pradesh have repeatedly protested, demanding special category status for the state. Allegedly, Naidu left the NDA in 2018 because of the failure to award special category status to Andhra Pradesh.

Special category status designates regions or states for special assistance by the central government, including tax incentives and financial aid, to foster regional development.