AP CM Requests ₹1 Lakh Crore Aid from Centre for State Reconstruction.

Andhra Pradesh Chief Minister Chandrababu Naidu, a key ally of Prime Minister Narendra Modi, has demanded substantial financial support from the Centre to help "reconstruct" the state, which is facing acute fiscal challenges and stalled infrastructure projects. Naidu’s Telugu Desam Party (TDP) has 16 Lok Sabha MPs supporting the Modi-led government.

Discussions on the financial aid, estimated to be over ₹1 lakh crore, were held during Naidu's meetings with various Central ministers on Friday. He met Finance Minister Nirmala Sitharaman at North Block, followed by separate meetings with Defence Minister Rajnath Singh, BJP President, Health Minister J.P. Nadda, and Chairman of the 16th Finance Commission, Arvind Panagariya. Additionally, he met six other Union Ministers: Amit Shah (Home Minister), Nitin Gadkari (Road Transport and Highways Minister), Piyush Goyal (Commerce Minister), Shivraj Singh Chouhan (Agriculture Minister), and Hardeep Singh Puri (Petroleum Minister).

These meetings come ahead of the first Budget of the Modi 3.0 government in the third week of this month.

During his meeting with Sitharaman, Naidu presented a detailed memorandum on the state’s precarious financial position and the rationale behind the demand for the Centre's short-term support of state finances. Key demands include allowing Andhra Pradesh to raise the fiscal deficit ceiling by 0.5% of State GSDP, capital support of about ₹50,000 crore for building a new capital at Amaravati, and a commitment of ₹12,000 crore for the Polavaram irrigation project.

Naidu also sought the Centre’s support for the development of Duggirajupatnam Port and additional allocation under the Scheme for Special Assistance to States for capital investment targeting roads, bridges, irrigation, and drinking water projects. Furthermore, he requested support for Andhra Pradesh's backward regions similar to the Bundelkhand package and advocated for more oil refineries to be located in the state.

“We will work with the goal of rebuilding Andhra Pradesh in five years. We will bring investments to Andhra Pradesh. The state has suffered irreparable damage in the last five years,” Naidu told the media after meeting Sitharaman.

Despite focusing on monetary assistance, Naidu confirmed that no demands were made for Cabinet posts or the Deputy Speaker's post from the Centre. A TDP source mentioned that the party is content with the current ministerial positions and did not expect additional posts.

During his meeting with the Home Minister, Naidu addressed issues arising from the bifurcation of Andhra Pradesh and sought resolutions for pending matters. TDP sources indicated that the state government aims to complete the permanent assembly, secretariat, and high court buildings within the next five years.

Naidu assured domestic and global investors that his government would strive to create a business-friendly environment in the state. He also announced plans to attend the World Economic Forum meeting in Davos to attract investors and expedite the state's economic resurgence.

Naidu referred to an upcoming meeting with Telangana Chief Minister Revanth Reddy on July 7, emphasizing that they will work in the interest of both states.

HBL