News Brief
Andhra Pradesh CM Chandrababu Naidu
In a significant boost to Andhra Pradesh, the Union government has accelerated key financial and infrastructure commitments under the Andhra Pradesh Reorganisation Act, 2014.
These commitments were announced in July last year by Finance Minister Nirmala Sitharaman in Budget 2024, shortly after the general elections, after the Telugu Desam Party (TDP) emerged as a crucial ally for the BJP in government formation at the Centre.
With the support of Andhra Pradesh proving decisive, the state secured bumper financial allocations and project approvals in return, marking a turning point in its post-bifurcation development.
The implementation report of announcements made in Budget 2024 was released alongside the Budget Report of 2025 by the Ministry of Finance today.
It highlighted that under the Special Assistance to States for Capital Investment (SASCI) 2024-25, Rs 3,950.31 crore has been approved for Andhra Pradesh, of which Rs 3,685.31 crore has been released as of 24 December, 2024.
Since June 2015, the Centre has provided a total of Rs 35,491.57 crore as "Special Assistance (Grant)" to the state.
A major highlight of the implementation is the Polavaram Irrigation Project, often termed the lifeline for Andhra Pradesh’s farmers.
Recognising the role of industrial infrastructure in economic expansion, the Kopparthy node on the Visakhapatnam-Chennai Industrial Corridor and the Orvakal node on the Hyderabad-Bengaluru Industrial Corridor received approval from the Cabinet Committee on Economic Affairs (CCEA) on 28 August 2024.
A detailed connectivity assessment has been conducted for these industrial nodes, identifying 62 new road and rail infrastructure gaps.
The Ministry of Railways has also initiated work on key railway projects under the National Industrial Corridor Development Programme (NICDP).
Similarly, the Ministry of Road Transport and Highways has begun four and six-lane expansion works in the Orvakal and Kopparthy industrial areas to bolster connectivity and investment potential.
The Union Cabinet has also sanctioned Rs 2,136.51 crore for Kopparthy Industrial Area and Rs 2,786.10 crore for Orvakal Industrial Area, demonstrating a robust financial push.
Furthermore, under the special development package for seven backward areas in the state, Rs 1,750 crore has been released as of now, with the remaining Rs 350 crore contingent to be released post NITI Aayog’s assessment of the state's fund utilisation.