Union Budget 2026 Allocates ₹3.75 Lakh Crore for Polavaram, Amaravati Revival
In a significant announcement impacting Andhra Pradesh’s long-standing development priorities, the Union Budget 2026–27 has earmarked a combined allocation of ₹3,75,209 crore for two of the state’s biggest infrastructure priorities — the Polavaram Irrigation Project and the Amaravati capital city development — underscoring the Central government’s renewed focus on regional growth and water security.
The Polavaram project, a multipurpose irrigation and water-resource initiative spanning several districts, has been a strategic ambition for Andhra Pradesh due to its potential to irrigate millions of acres and transform agricultural prospects. Central funding injections aim to accelerate construction, improve water-storage capacity and push the project towards timely completion, thereby enhancing agrarian stability and drinking water access across the region.
The allocation for Amaravati, the state’s planned capital city, plays an equally pivotal role in Andhra Pradesh’s development plans. The funding underscores Delhi’s commitment to re-energising infrastructure development, reviving stalled construction and supporting urbanisation plans for what state leaders describe as a future smart city and administrative hub. Amaravati’s development is seen as central to the state’s economic vision, potentially catalysing investment, jobs and urban growth when fully realised.
The budget provision comes amid mixed political responses. While state leadership has welcomed the Centre’s emphasis on flagship projects, industry groups and political figures alike have called for clarity on disbursement timelines, project milestones and the balance between central support and state execution. Analysts note that such a large allocation reflects not just physical infrastructure support but also political signalling towards Andhra Pradesh’s long-term development trajectory.
As both projects move into their next phases of execution, stakeholders from farmers to urban planners will be watching closely how these substantial funds translate into on-ground progress.
