Aligning with the key demands of Andhra Pradesh, Finance Minister Nirmala Sitharaman announced a significant allocation of ₹15,000 crore for the development of the State’s new capital. This funding addresses a major request from the state government for the construction and advancement of Amaravati as its sole capital.
Sitharaman highlighted the Centre’s support, stating, “The government will arrange ₹15,000 crore this fiscal year and in future years for the development of the capital city of Andhra Pradesh,” with assistance to be provided through multi-lateral development agencies.
After Andhra Pradesh and Telangana bifurcation in 2014, Hyderabad served as a shared capital for a decade under the Andhra Pradesh Reorganisation Act, 2014. However, as of June 2 this year, Hyderabad is no longer the capital of Andhra Pradesh.
Just days later, on June 11, Chief Minister Chandrababu Naidu confirmed that Amaravati would be the sole capital, dismissing the previous administration’s proposal for three capitals: Visakhapatnam as the executive capital, Amaravati as the legislative capital, and Kurnool as the judicial capital.
Naidu also advocated for Visakhapatnam to be developed as the financial capital and sought substantial fund allocation in the Union Budget to address the State’s financial issues. He met with Home Minister Amit Shah last week, stressing the need for support to mitigate the ongoing effects of the 2014 bifurcation and the challenges posed by previous governance.
