AP wants Centre to step up support to Amaravati, Nallamala Sagar

Vijayawada: Finance minister Payyavula Keshav has urged the Central government to significantly step up financial support for the construction of Amaravati, river-linking projects and the comprehensive development of the Rayalaseema region, submitting a series of proposals to Union Finance Minister Nirmala Sitharaman at the pre-Budget meeting.

Keshav said the revival of Amaravati construction has begun with the Rs 15,000 crore assistance extended by the Centre last year, and pressed for the release of additional funds from agencies such as HUDCO and NAFED in the second phase. He underlined that sustained central support is critical to ensure uninterrupted progress of the capital city works.

Keshav also sought immediate budgetary allocation for the Polavaram–Nallamala Sagar Link Project, describing it as vital for addressing drinking water shortages and industrial needs in drought-prone regions. Drawing a comparison with the Centre’s Rs 40,000 crore river-linking initiative covering 11 rivers in Rajasthan, he appealed for similar backing for the Andhra Pradesh project, which carries a preliminary cost estimate of Rs 58,700 crore.

Highlighting regional development priorities, the finance minister called for Rs 5,000 crore in the upcoming Union Budget for the Visakhapatnam Economic Regional Development Centre.

He further requested financial assistance for river connectivity projects and demanded that Andhra Pradesh be granted the highest level of revenue deficit grants.

With the recommendations of the 16th Finance Commission set to take effect from April 1, 2026, Keshav said substantial tax devolution, along with enhanced revenue grants, should be ensured. He welcomed the Centre’s decision to extend special assistance for capital investment under the SASK scheme and urged that higher allocations be continued next year as well. He also sought effective implementation of the Purvodaya programme in alignment with projects linked to education, health, agriculture and livelihoods.

Referring to provisions in the State Bifurcation Act, the finance minister pressed for a special development package for backward areas, with a sharp focus on Rayalaseema. He said horticulture-led development plans worth Rs 41,000 crore over the next three years could transform the region into an international horticulture hub if adequately funded.