Kerala has requested a special financial package of Rs 24,000 crore from the Centre, according to a written reply by Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha on Tuesday. The Finance Minister of Kerala sent a letter dated June 27, 2024, detailing this request, PTI reported.
Kerala has also sought a special capital investment of Rs 5,000 crore to develop the Vizhinjam Port region.
Financial requests by Andhra Pradesh, Bihar
Andhra Pradesh has also made significant financial requests, seeking Rs 15,000 crore for the development of its state capital, Amravati, and Rs 17,144.06 crore for various sectors, including the Polavaram irrigation projects. The state has also requested funds for incentives for industrial development and infrastructure investment.
Bihar has requested approximately Rs 785 crore for various projects. This includes funds for infrastructure projects, an enhanced borrowing ceiling, social welfare initiatives (Rs 375.35 crore), and the development of airports, health infrastructure, education, sports (Rs 410.35 crore), water resources, and rural development.
Minister Chaudhary highlighted that the Centre provides substantial resources to states, including Kerala, through Finance Commission Recommended Grants, Central Sector Schemes, Centrally Sponsored Schemes, and Special Assistance (Grant) schemes for Capital Investment. Additionally, the Department of Economic Affairs (DEA) has approved a Viability Gap Funding (VGF) grant of Rs 817.80 crore for the development of the Vizhinjam International Multipurpose Seaport Terminal Project under the VGF Scheme of the DEA.
In her 2024-25 Budget speech, Finance Minister Nirmala Sitharaman stated that the Centre will facilitate special financial support through multilateral development agencies for building the capital of Andhra Pradesh. For the current financial year, Rs 15,000 crore will be arranged, with additional amounts expected in the future.