Union Budget 2024: NDA key allies in Bihar, Andhra gets major infrastructure pie

Finance Minister Nirmala Sitharaman’s Union Budget announcement on Tuesday aimed to please key allies, as the Bihar-based Janata Dal (United) and the Andhra Pradesh-based Telugu Desam Party (TDP) – both crucial allies of the BJP-led NDA government – received significant infrastructure allocations.

Although the government did not grant special status to Bihar, it announced infrastructure projects worth ₹59,000 crore to support the state's development. Andhra Pradesh was allocated ₹15,000 crore for development work.

TDP MLA Nara Lokesh, son of Andhra Pradesh Chief Minister N. Chandrababu Naidu, thanked the central government for the ₹15,000 crore package. “We appreciate the central government’s commitment to supporting the completion of projects in Amaravati, the capital of Andhra Pradesh, and Polavaram. On behalf of the people of the state, we express our gratitude to the NDA government for allocating ₹15,000 crore in the budget to help reconstruct Andhra Pradesh,” he posted on X.

Sitharaman announced several road connectivity projects for Bihar, including the Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, and roads connecting Bodhgaya, Rajgir, Vaishali, and Darbhanga. An additional 2-lane bridge over the Ganga River at Buxar will be constructed, with a total cost of ₹26,000 crore. Power projects, including a new 2400 MW power plant at Pirpainti, Bhagalpur, will be undertaken at a cost of ₹21,400 crore. New airports, medical colleges, and sports infrastructure will also be developed in Bihar, as detailed in the budget speech.

For the Amritsar-Kolkata Industrial Corridor, the government announced support for the development of an industrial node at Gaya to boost industrial growth in the eastern region. "An additional allocation for capital investments will be provided, and the Bihar Government’s requests for external assistance from multilateral development banks will be expedited,” said Sitharaman.

Mohammad Athar (Saif), Partner and Leader of Capital Projects and Infrastructure Development at PwC India, stated that the funding support for key nodes in the Amritsar-Kolkata and Vizag-Chennai Industrial Corridors represents a significant boost. “Additionally, the budget emphasizes developing new industrial parks and ecosystem enablers for manufacturing,” he said.

Considering frequent floods, the government announced financial support for projects totaling ₹11,500 crore under the Accelerated Irrigation Benefit Programme and other sources. This includes the Kosi-Mechi intra-state link and 20 other ongoing and new schemes for barrages, river pollution abatement, and irrigation projects.

For Bihar, comprehensive development initiatives will focus on the Vishnupad Temple Corridor and the Mahabodhi Temple Corridor, modeled after the successful Kashi Vishwanath Temple Corridor, to transform them into world-class pilgrimage and tourist destinations. A comprehensive development plan for Bihar’s historic Rajgir city will also be undertaken.

In Andhra Pradesh, Sitharaman noted the state’s need for capital and pledged special financial support through multilateral development agencies, with ₹15,000 crore arranged for the current financial year and additional amounts in future years. “Our government is fully committed to financing and expediting the completion of the Polavaram Irrigation Project, which is crucial for Andhra Pradesh and its farmers, and will also contribute to the country’s food security,” she said.

The budget also includes funds for essential infrastructure such as water, power, railways, and roads in the Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and the Orvakal node on the Hyderabad-Bengaluru Industrial Corridor. “An additional allocation will be provided this year for capital investments to spur economic growth. Grants for the backward regions of Rayalaseema, Prakasam, and North Coastal Andhra, as stipulated in the Act, will also be provided,” the minister added.