Ten years after bifurcation, Andhra Pradesh on Tuesday got a substantial allocation in the Union Budget with Finance Minister Nirmala Sitharaman announcing Rs 15,000 crore for the development of its greenfield capital city, Amaravati, and assured that it was committed to the completion of Polavaram dam. However, the other Telugu state, Telangana, was left in the lurch.

TDP which leads the ruling coalition in Andhra Pradesh is a key ally of the NDA government in Delhi with 16 MPs after BJP fell short of majority. AP is currently teetering at the brink of financial bankruptcy and chief minister Chandrababu Naidu has been making the rounds of Delhi to ensure central funds for the state.

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Since his return to office, Naidu has emphasized on completing Amaravati and Polavaram dam in his current tenure. The state government has also decided to present a fulltime budget only after deliberations.

Presenting the Union Budget, Sitharaman said the Centre recognizes AP’s need for a capital city. “Recognizing the state’s need for capital, we will facilitate special financial support through multilateral agencies. In the current financial year, Rs 15,000 crore will be arranged with additional amounts in future years,” she announced.

She assured that the NDA government was committed to fulfilling promises under AP Reorganization Act, 2014. She also said, “Our government is fully committed for completion and financing of the Polavaram irrigation project.”

Andhra Pradesh along with Bihar, Odisha and Jharkhand will benefit from the newly introduced Purvodaya scheme. Funds will also be provided for setting up industrial nodes at Kopparthy area on the Vizag-Chennai corridor and Orvakal area on the Hyderabad- Bangalore corridor.

The Union finance minister also promised grants for developing backward regions such as Rayalaseema and Prakasam districts of the southern state.