Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged the Union government to extend enhanced financial support to the State under key central schemes, highlighting the need for targeted investments to accelerate infrastructure development, agricultural transformation, and long-term water security. In a formal request to Union Finance Minister Nirmala Sitharaman, the Chief Minister sought greater allocations under the Purvodaya Special Assistance to States for Capital Investment (SASCI) framework, alongside focused budgetary support for region-specific development initiatives.

At the centre of the request is a proposal for an allocation of ₹10,054 crore under the SASCI scheme for the financial year 2025-26, which the State government argues is essential to sustain capital investment momentum and unlock economic growth across Andhra Pradesh.

Purvodaya and SASCI: Strengthening Capital Investment

The Purvodaya initiative, along with the SASCI scheme, has been designed by the Centre to support States through enhanced capital investment, enabling them to undertake large-scale infrastructure projects without excessive fiscal stress. Andhra Pradesh, which continues to face structural financial challenges following bifurcation, has been a strong proponent of increased central assistance under these frameworks.

Chief Minister Chandrababu Naidu emphasised that timely and adequate SASCI funding would allow the State to invest in critical sectors such as:

• Transport and logistics infrastructure

• Urban and rural connectivity

• Irrigation and water management

• Industrial corridors and economic clusters

By seeking ₹10,054 crore for FY 2025-26, the State aims to maintain a steady pipeline of capital expenditure projects that can generate employment, improve productivity, and strengthen long-term revenue capacity.

Rayalaseema as a Global Horticulture Hub

A major component of Naidu’s request relates to Rayalaseema, a historically drought-prone region that has been identified as a potential global horticulture hub. The Chief Minister asked the Union government to make specific provisions in the Union Budget to support large-scale horticulture development in the region.

Rayalaseema is currently home to the cultivation of around 18 different horticultural crops, making it uniquely positioned for:

• High-value agriculture

• Export-oriented crop production

• Agro-processing and cold-chain infrastructure

• Farmer income diversification

With adequate central support, the State government believes Rayalaseema can emerge as an international centre for horticulture, boosting rural incomes while reducing regional disparities within Andhra Pradesh.

Polavaram-Nallamala Sagar Project: Addressing Water Scarcity

Another key demand placed before the Finance Minister was support for the Polavaram-Nallamala Sagar project, a strategic water diversion initiative aimed at redirecting surplus Godavari floodwaters to drought-affected areas.

The project is envisioned to:

• Mitigate chronic water scarcity in Rayalaseema and adjoining regions

• Stabilise irrigation for agriculture

• Improve drinking water availability

• Enhance climate resilience remembering erratic rainfall patterns

Chief Minister Naidu underscored that water security is fundamental to sustainable development, particularly in regions that frequently experience drought conditions. Central funding for the project, he argued, would have long-term economic and social benefits far exceeding the initial investment.

Fiscal Needs of Andhra Pradesh

Since its bifurcation, Andhra Pradesh has repeatedly highlighted the need for special financial support to rebuild its economic base and infrastructure. While the State has pursued reforms and investment-driven growth, leaders have consistently pointed out that central assistance remains crucial for bridging fiscal gaps.

Naidu’s latest request aligns with this broader strategy of leveraging Purvodaya and SASCI mechanisms to accelerate development without compromising fiscal stability. The Chief Minister also stressed the importance of cooperative federalism, urging the Centre to partner with the State in achieving shared development goals.

Union Budget Expectations and Political Significance

The demands come ahead of crucial Union Budget deliberations, making Andhra Pradesh’s proposals politically and economically significant. Analysts note that allocations under SASCI and targeted project funding could shape the State’s development trajectory over the next decade.

Enhanced support would not only address regional imbalances but also strengthen Andhra Pradesh’s role in national agricultural exports, water management innovation, and infrastructure-led growth.

Conclusion: Seeking Partnership for Long-Term Growth

Chief Minister Chandrababu Naidu’s appeal to Finance Minister Nirmala Sitharaman reflects a push for strategic, long-term investment rather than short-term relief. By focusing on capital investment, horticulture-led growth, and water security, Andhra Pradesh is positioning itself for sustainable development driven by productivity and resilience.

The Centre’s response to these requests will be closely watched, as it could determine how effectively Andhra Pradesh navigates its development challenges while contributing to broader national economic objectives.

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