Union budget: Polavaram project allocated ₹5,936 crore, RINL gets ₹2,995 crore

Andhra Pradesh has nothing much to cheer about in the Union Budget 2025-26, barring the allocation of ₹5,936 crore for the Polavaram project and ₹2,995 crore for Rashtriya Ispat Nigam Limited (RINL), the holding company of Visakhapatnam Steel Plant.

In her budget speech, which lasted for one-and-a-half hours, Finance Minister Nirmala Sitharaman did not make even a passive mention of A.P., contrary to expectations that the Budget would give substantial financial support to the State.

It was stated in the ‘Expenditure Budget’ document that the revised cost of the Polavaram project amounted to ₹30,436.95 crore, and the State government has been allowed to store water up to 41.15 meter. The balance of the Central grant for the project has been limited to ₹12,157.53 crore.

The ‘provision’ is for the construction of a dam and canal system for reaping the benefits of new ayacut stabilisation and to supply drinking water. The sum allocated (₹5,936 crore) is shown as a part of the total outlay for new and select schemes with allocations exceeding ₹1,000 crore in the Budget Estimates 2025-26.

As for RINL, the sum of ₹2,995 crore was shown as ‘capital’ in the Ministry of Steel’s Demands for Grants. It was stated that the infusion of funds in the form of investment in the equity capital of RINL would be provided by the the Ministry of Finance.

This apart, five Externally Aided Projects (EAPs) relating to A.P. were incorporated in the ‘expenditure profile’. They are A.P. Climate Resilient Zero Budget Natural Farming Project (₹186.44 crore), A.P. Irrigation and Livelihood Improvement Project (₹242.50 crore), A.P. Health Systems Strengthening Project (₹162.41 crore), Supporting Andhra’s Learning Transformation Operation (₹374.18 crore) and A.P. Roads and Bridges Reconstruction Project (₹239.30 crore).