Inflow of Central Funds Spurs CM Chandrababu’s Aggressive Development Push in AP

At present, Andhra Pradesh is said to be receiving a large amount Central Funds from the Central Government, which in turn opens the way toward at least the initiation of important projects for the state. The state government of Andhra Pradesh headed by the Chief Minister Chandrababu Naidu is all set to embark upon a number of big ticket infrastructural projects due to adequate funding which is being extended by the Central government.

Andhra Pradesh has laid the foundation and now it is ready to get Rs 15,000 crore for the construction of new capital Amaravati, Rs 12,000 crore for the irrigation project Polavaram, and further Rs 40,000 crore for the implementation of metro systems in Visakhapatnam as well as Vijayawada. These Central Funds are believed to act as major sources for funding the state as well as improving the facilities within it.

Leveraging 15th Finance Commission Funds

In addition, the Chief Minister has also prioritized the development of utilising the money from the 15th Finance Commission to increase the growth rate of infrastructure and industrial corridors in the state. The support from the Central Government is considered a breath of fresh air for Andhra Pradesh, more so with the double engine government at work both at the center and the state who are taking affirmative actions to take forward such key projects. The coalition government has the goals well defined and is deliberately mapping and implementing the appropriate actions that are required for the achievement of such projects.

Commitment to Bifurcation Promises

The latest budget session and some of the parliamentary decisions show how the Central Government is willing to meet the needs of Chief Minister Chandrababu Naidu as regards the promises made during the bifurcation of Andhra Pradesh. In her budget speech the Union Finance Minister Nirmala Sitharaman made an announcement that Amaravati would be given a loan of Rs. 15000 crore and requisite amount would be arranged as and when needed.

Let out the funds of these projects and schemes this CM Chandrababu Naidu has been meeting with the senior officials in Delhi. As requested, officials from the World Bank and the Asian Development Bank came to the state, made field inspections and in principal, they acknowledged the release of the required amount.

Fast-Tracking the Polavaram Project

The other important object of the interest of the state government is the Polavaram project, the progress with which has also been notable. The first part of the project completed at cost of Rs 25,000 crore still has said Rs 12,000 crore money amount outstanding. During his recent meetings with the Prime Minister, Home Minister and Water Resources Minister, CM Chandrababu Naidu got assurance for early funding for Polavaram.

The outcome of the Central Cabinet meeting held on Wednesday was that the issues relating to for the Polavaram project was on the agenda which resulted in the following payment schedule. The Union Cabinet has proposed in the current year Rs 6,000 crore has been proposed and Rs 6,157 crore in the next year. With these funds, the State government has planned to achieve the aim of completing Polavaram project by 2029.

In the short term the government is looking to complete the last metre of the diaphragm wall of the dam within the next two construction seasons at an outlay of Rs 990 crore. The Council of Ministers has also resolved to accord top priority for taking drinking water supply to Visakhapatnam and in case needed for supplying water for industrial requirements through lifting arrangements.

Metro Rail Development in Visakhapatnam and Vijayawada

During the formation of SPSR, another major assurance given by the Central Government was setting up of Metro Rail transport in Visakhapatnam and Vijayawada cities of the state. Recently the Centre is asking the state government to provide financial costing of these projects.

This has been done with great efficacy from the side of the state government which prepared detailed project reports (DPRs) for both cities. The aggregated project cost estimated for the Metro projects is forty thousand crore rupees , out of which for Amaravati twenty six thousand crore rupees have been planned and for Visakhapatnam, seventeen thousand crore rupees. These estimates are expected to be fine tuned and presented to the Centre by the state government in the next ten days.

Establishment of New Industrial Corridors

Moreover, establishment of three new industrial corridors announced at the Centre is soon to cause positive impact in Andhra Pradesh. Among them are Visakhapatnam – Chennai, Hyderabad – Chennai and Hyderabad – Bangalore corridors, all of which will greatly boost the industrial development in the state. Formation of clusters in Orvakal, in Kurnool District and Kopparthi in Kadapa district involving an investment of approximately Rs 5,000 crore shall generate employment opportunities in excess of 120000. These clusters are also expected to lead to massive investment for the advantage of the state’s economy. The Central Government has assured that it has no problem in setting out the required funds for the above projects without further delay.

Infrastructure Development and Financial Disbursement

Besides, these projects, the Centre has earmarked Rs 2,400 crore outlay for infrastructural development in Andhra Pradesh and the capital region. Of this amount Rs 1500 crore has already been spent. In the wake of the freshly received Rupees 1,450 crore from the 15 th Financial Commission, the state administration has distributed the funds to all the Gram Panchayats to ensure the state’s development reaches every nook and corner.

Future Outlook

That is why; the Andhra Pradesh government with this enormous fund in its disposal has started undertaking number of developmental activities without any delay. This challenge is clear and the state is on the move with such a plan in mind in the aim of achieving these projects one by one in the next four years. For this reason, the flood of central funds is expected to alter the very landscape and the indicted industrial base making for Andhra Pradesh and preparing it for future growth and prosperity.

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