Finance Minister Niramala Sitharaman in an interview with Times of India said that every demand of Andhra Pradesh mentioned in the Andhra Reorganisation Act 2014 would be fulfilled.
This comes after the Union Budget allocated Rs 15,000 crore to develop the state’s capital Amaravati. The statement also comes amid political controversy from INDIA bloc over allocation of funds to Bihar and Andhra Pradesh over other states, an allegation that Sitharaman has vehemently denied.
Andhra Reorganisation Act
The Andhra Reorganisation Act was passed when Andhra Pradesh and Telangana were bifurcated in 2014.
The Act mentioned several developmental projects to be undertaken by the Centre and government-owned companies in both the states.
The Act pledged several initiatives, infrastructural development projects, and establishment of a new capital for Andhra Pradesh after 10 years of bifurcation.
Amaravati was announced as the capital city of the state on June 2, days before Chandrababu Naidu’s Telugu Desam Party was voted to power.
While demands such as establishing an IIT, IIM, AIIMS, IISER, and industrial corridors have been fulfilled, many promises remain to be catered to.
The Act said that funds would be released to develop backward areas of both the states. However, the Andhra Pradesh government has alleged that it has not received sufficient funds. The state’s HRD Minister Nara Lokesh prior to the announcement of the Budget had demanded that the funds be released.
Sitharaman, in her Budget speech announced that the state will get funds for development of seven backward regions, completion of Polavaram irrigation project, infrastructure development in the Visakhapatnam-Chennai industrial corridor.
“The AP Reorganisation Act must be honoured. We have been doing it since 2014. That is why backward districts funds had to be given for backward district development in both Telangana and Andhra Pradesh,” Sitharaman told TOI.
“Many institutions, AIIMS, IIIT, IIT, have been set up there. In some cases, there has been some delay like Polavaram. Now the first cabinet approval has been honoured; because it is a national project, we will have to give money for it,” she said.
“Similarly, Andhra Pradesh is the only state without a capital, we will give money. These are additions but it is not as if they never existed. They need to be honoured now because 10 years have passed,” Sitharaman added.
Delays in fulfillment of demands?
Further demands by Andhra Pradesh include the establishment of the National Institute of Disaster Management, developing Dugarajapatnam port, establishing oil refineries and petrochemical complex, expanding the existing Visakhapatnam, Vijayawada and Tirupati airports to international standards, introducing rapid rail and road connectivity from Amravati to Hyderabad and other parts of the states.
The state is yet to get a petroleum university, agriculture university, and National Institute of Disaster Management.
ET recently reported that state-run refiner BPCL is planning to set up a new refinery with an investment of around Rs 50, 000 crore. Andhra Pradesh is among the three locations being evaluated.
Further the rapid rail connectivity between Hyderabad and parts of Andhra Pradesh has not yet been initiated, Deccan Chronicle reported recently.
Metro work in Visakhapatnam is underway, but the pace has been slow, Lokesh had said. The Vijayawada-Guntur-Tenali metro is also progressing slowly.
The Indian Railways was supposed to set up a new railway zone in Andhra but Despite multiple commitments during the bifurcation process, operationalization of the South Coast Railway (SCoR) zone has faced numerous delays.
Sitharaman, in her speech, announced that the state will be provided with capital investment towards economic growth, without mentioning the specifics.
