Andhra Pradesh Seeks Central Aid With Updated Costs For Amaravati, Polavaram Projects

The newly elected Andhra Pradesh government is set to submit a report to the Union Finance Ministry, seeking Central assistance to resume the development of the proposed state capital, Amaravati, and the Polavaram irrigation project.

This report will include inflation-adjusted costs from 2014 to 2019. "A revised detailed project report is being prepared. The rates between 2014 and 2019 will change, and after calculating all estimates, the extent of the financial assistance from the Centre will be known, after which the proposal will be submitted to them," a government official stated.

Amaravati was selected as the new capital city of Andhra Pradesh due to its strategic location which lies between the two nodal urban centres of Vijayawada and Guntur in the capital region (8,600 sq/km).

The Polavaram Irrigation Project is a multipurpose project located on the river Godavari. This project aims to develop a total irrigation potential of 436,825 ha, generate 960 MW of hydropower, provision of drinking water to a population of 28.50 lakh in 611 villages, and diversion of 80 TMC of water to the Krishna river basin. It has been designated a National Project under the Andhra Pradesh Reorganisation Act, 2014.

The N Chandrababu Naidu-led government plans to submit the proposal to restart payments under the Andhra Pradesh Reorganisation Act, which bifurcated the erstwhile Andhra Pradesh into Telangana and the residual Andhra Pradesh. The act includes provisions obligating the Centre to support the newly created Andhra state.

Payments were halted during the YSR Congress rule after the previous government allegedly stopped work on some of the projects initiated by Naidu, reports Money Control.

Naidu declared Amaravati as the capital of Andhra Pradesh in 2015. Most government offices, including the secretariat, were moved to Amaravati. Naidu’s vision included transforming Amaravati into a world-class capital, complete with modern infrastructure and global investments.

The TDP's ambitious plans faced challenges when the Yuvajana Sramika Rythu Congress Party (YSRCP), led by Jagan Mohan Reddy, came to power in 2019 and proposed a three-capital model for decentralised administration.