AP allocates Rs.300 Crore in State Budget 2015-16 for Metro Rail projects in Vijayawada & Visakhapatnam

The budgetary allocation of Rs. 300 crore for Metro Rail projects in Vijayawada and Visakhapatnam and Rs. 3,168 crore for capital infrastructure are expected to give the much-needed boost to development, according to the industry.

Courageous gesture

The budget manifests the focus of cash-crunched Andhra Pradesh, according to industry pundits. “Given the scenario, the allocation of more than Rs. 3,000 crore for the capital is a serious and courageous gesture of the government. In fact, we did not expect an allocation of Rs. 300 crore for Metro Rail projects in Vijayawada and Vizag.

It will give a boost to development in the capital region, besides contributing to the industrial ecosystem,” said Suresh Rayudu Chitturi, chairman of the Confederation of Indian Industries, Andhra Pradesh.

The announcement of the industrial policy will further speed up the development process according to him.

Thanks to the allocations, corporate companies will be interested in setting up units in the capital region, said T. Pardha Saradhi, president of AP Small Industries Association.

World-class capital

“This was how industrial development took place in Hyderabad. I am sure the same will be replicated here,” he added.

However, the total allocation is much less compared to the requirements. The State is pinning its hopes on the expected Central grant of Rs. 1,00,213 crore for capital construction and Rs. 41,253 crore for other critical infrastructure requirements.

A definitive assurance to this effect has not yet come from the BJP, the TDP’s alliance partner at the Centre.

Bifurcation necessitated an immediate need for building a world-class capital reflecting the aspirations of the people of the State.

The new capital will be a place for creativity and innovation, according to the budget statement.

Speaking to media on the immediate use of funds, Capital Region Development Authority Commissioner N.Srikanth said: “Funds will be utilised for a Detailed Project Report, development of land for farmers and construction of offices and building infrastructure.”