In the Union Budget, ₹15,000 crore has been allocated for Andhra Pradesh’s capital, Amaravati. However, there is ambiguity regarding whether this amount is being provided as a loan or as direct funds.
Finance Minister Nirmala Sitharaman addressed the media in New Delhi today after her budget speech. During the briefing, a representative from a Telugu channel questioned her about the allocations for Amaravati and the Polavaram project.
She clarified, “Amaravati is included in the AP Reorganisation Act, which mandates that the Centre assist in the construction of Andhra Pradesh’s capital. Accordingly, we are borrowing ₹15,000 crore from the World Bank for Amaravati. Subsequent allocations of funds will follow. We will consult with the state government on how to repay this loan and assess whether the state can cover its share given its financial condition. If necessary, the Centre may provide their share as a grant, pending discussions with the AP government.”
She further emphasized, “Ten years have passed without a capital for Andhra Pradesh. A state in India should have a capital, yet Andhra Pradesh currently lacks one. While I do not wish to delve into the reasons for this situation, the central government is fully committed to building the capital.”
Nirmala Sitharaman also addressed the Polavaram project, stating, “Polavaram is a national project, and the Centre is responsible for it. Typically, the Centre constructs national projects, but in this case, the state is handling the construction. Therefore, the Centre will cooperate with the state on the Polavaram issue.”