Keeping in sync with coalition politics and the key demands of the NDA allies TDP and JD(U), finance minister Nirmala Sitharaman announced special package for Bihar and Andhra Pradesh.
The FM announced Rs 15,000 crore for Andhra Pradesh's new capital, in her Budget speech. She added that the government is committed to financing and completing the Pollavaram irrigation project, which is considered the lifeline for Andhra Pradesh and its farmers. Additional allocations will be provided this year to support capital investment for economic growth.
Similarly, Nirmala Sitharaman stated that the request from the Bihar government for external assistance from multilateral development banks will be expedited. Close on the heels of the Centre ruling out any plan to grant Bihar a Special Category Status, a longstanding demand of the JDU, Sitharaman announced multiple development projects for the state.
Reacting to the budgetary announcements, Andhra Pradesh CM N Chandrababu Naidu tweeted: "On behalf of the people of Andhra Pradesh, I thank the PM Modi and Union Finance Minister Nirmala Sitharaman, for recognising the needs of our State and focusing on a Capital, Polavaram, industrial nodes and development of backward areas in AP in the union budget of FY 24-25. This support from the Centre will go a long way towards rebuilding Andhra Pradesh. I congratulate you on the presentation of this progressive and confidence-boosting budget..."
In the days leading up to the Union Budget, the govt indicated that it is favourably inclined towards AP and Bihar (allies of Modi 3.0) demanding a special package, people in the BJP said the party leadership is keen to maintain equilibrium in the alliance and smooth ties with the allies.
The BJP-led NDA government’s stability rests on support from the allies, the TDP and the JDU, that together have 28 lawmakers in the Lok Sabha.
The announcement comes a day after the Centre on Monday rejected the JD(U)’s request for ‘special category’ status for Bihar during the all-party meeting. No new states are being awarded ‘special category’ status at present, as the Indian Constitution does not accommodate such classification.
Allocation for roads and expressways and power projects as well as other infrastructure projects in states of Andhra Pradesh such as 15,000 cr for current year and planned allocation for future years and Bihar (26,000 cr road projects and 21,000 cr for power projects) is positive for South based construction players like NCC, KNR Constructions as well as other prominent infra EPC players like L&T and PNC Infratech Bharat Gianani, Research Analyst, Moneycontrol Pro.
The FM proposed supporting the development of corridors at Vishnupad Temple and Mahabodhi Temple, following the model of the Kashi Vishwanath Temple.
Additionally, the government will back the development of Nalanda in Bihar as a tourist center. Finance Minister Sitharaman also announced that an economic policy framework will be introduced to usher in next-generation reforms aimed at boosting economic growth. Furthermore, the government will provide assistance to Odisha for the development of tourism, as stated by the FM in Lok Sabha."
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