A.P. Budget highlights three City Economic Regions, renewable and infra projects

The Budget for 2026-27 financial year, presented in the Andhra Pradesh Legislative Assembly by Finance Minister Payyavula Keshav on Saturday, unveiled the government’s plan to develop three City Economic Regions around Visakhapatnam, Amaravati and Tirupati as key regional growth engines of the State, for which NITI Aayog was roped in to lend the expertise. 

The proposals (including the metro rail project for approximately ₹28,000 crore) were already submitted to the Centre in respect of the Visakhapatnam Economic Region (VER), which covers Srikakulam, Parvathipuram-Manyam, Vizianagaram, Anakapalli, Visakhapatnam, Alluri Sitharama Raju, Polavaram, Kakinada, East Godavari, and Konaseema districts.

Similarly, the government is focused on the development of Amaravati Economic Region, spreading across NTR, Krishna, Eluru, Guntur, West Godavari, Prakasam, Palnadu, Bapatla and Markapuram districts. 

As far as Amaravati is concerned, Mr. Keshav said in his speech that the State government was thankful to Prime Minister Narendra Modi for supporting the development of the greenfield capital city and initiating the process of introducing legislation in the Parliament to accord statutory status to it (Amaravati) as the permanent capital of Andhra Pradesh.

A sum of ₹6,000 crore has been allocated for Amaravati, where a total of 97 works costing ₹57,868 crore were in various stages of implementation, he mentioned, while putting forth an allocation of ₹14,539 crore to the Municipal Administration & Urban Development Department.

The Panchayat Raj & Rural Development Department, headed by Deputy Chief Minister K. Pawan Kalyan, was allocated ₹22,942 crore, with sizable allocations to the Jal Jeevan Mission and rural road connectivity.

Green cover

Besides, an allocation of ₹714 crore was proposed for the Environment, Forest and Science & Technology Department to achieve goals such as increasing the State’s green cover to 37% by 2030 and 50% by 2047, combating desertification, halting and reversing land degradation, and building a Wall of Green Cover. 

Mr. Keshav expressed the government’s intention to revive the State Public Sector Enterprises (PSEs) and make them implement bill discounting through the TReDS digital platform in line with the the Central government’s policy.

‘Mother of all deals’

On the investment front, the Finance Minister called the government’s agreement with Google for the establishment of an AI-powered data centre in Visakhapatnam with $15 billion as ‘A.P.’s mother of all deals’, and listed out the ArcelorMittal Nippon Steel plant, the bulk drug park at Nakkapalli, the green aluminium project at Kakinada and a semiconductor manufacturing facility at Orvakal as major projects on the anvil.

It was mentioned that significant progress has been achieved in the construction of Ramayapatnam, Mulapeta, Machilipatnam and Kakinada SEZ ports and the fishing infrastructure was being modernised through harbours that were under construction with support from the Central government under Sagarmala 2.0.

The Finance Minister announced an allocation of ₹13,934 crore to the Energy Department, while asserting that the government has stabilised the sector through higher generation and by rationalising the procurement of power. 

Clean Energy Policy

A.P. is fast emerging as a hub for renewable energy, and 55 renewable energy projects worth ₹2.88 lakh crore covering 15.56 GW solar, 4.86 GW wind, 17.7 GW pumped storage and 1 MMTPA green hydrogen were taken up under the Integrated Clean Energy Policy, he added.