According to a written reply by Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha on Tuesday, Kerala has requested the central government for special financial assistance of Rs 2,400 crore. The Kerala finance minister detailed the request in a letter dated June 27, 2024, news agency PTI reported.
Kerala has also sought special capital investment of Rs 5,000 crore for development of the Vizhinjam port area.
Financial assistance requests from Andhra Pradesh and Bihar
Andhra Pradesh has also made significant financial demands, seeking Rs 15,000 crore for the development of the state capital Amravati and Rs 17,144.06 crore for various departments, including the Polavaram irrigation project. The state has also sought funds for industrial development and incentives for infrastructure investment.
Bihar has sought around Rs 7,850 crore for various projects, including funds for development of infrastructure projects, increasing borrowing limits, social welfare initiatives (Rs 3,753.5 crore), airports, health infrastructure, education, sports (Rs 4,135 crore), water resources and rural development.
Minister Chaudhary emphasised that the Central Government has provided significant funding to States, including Kerala, through Finance Commission Recommended Grants, Central Sector Schemes, Centrally Sponsored Schemes and Special Assistance for Capital Investment (Grant-in-Aid) Scheme. Further, the Department of Economic Affairs (DEA) has approved a Feasibility Gap Funding (VGF) grant of Rs 8,178 crore for the development of the Vizhinjam International Multipurpose Seaport Terminal Project under the DEA’s VGF Scheme.
Finance Minister Nirmala Sitharaman, in her Budget speech for 2024-25, said the Central government will facilitate special financial assistance through multilateral development agencies for the construction of the Andhra Pradesh capital. Rs 15,000 crore has been arranged for the current financial year and additional amount is expected in future.