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Newslaundry
Newslaundry
National
NL Team

Team Modi makes up for lack of special status with special help for Andhra, Bihar in budget

Some called it a budget for only Andhra Pradesh and Bihar and social media was flooded with memes after the first Union budget of the new NDA government announced a slew of schemes and support measures for the two states governed by BJP allies.

This came following days of speculation about sops for these states. 

The JD-U, which has 12 MPs, has been demanding special status for Bihar for several years. The TDP, which has 16 MPs, had earlier pulled out of the NDA government over the Narendra Modi government’s refusal to grant special status to Andhra Pradesh. For the BJP to hold power at the Centre despite its shrunk tally, support from the JD-U and TDP remains crucial. There were reports that the Modi government was facing demands from its coalition allies Chandrababu Naidu and Nitish Kumar to allot more funds to the two states. 

At an all-party meeting ahead of the budget, three regional parties had repeated the demand for a special status – the JD-U for Bihar, the BJD for Odisha, and the YSRCP for Andhra Pradesh. The YSRCP, which was voted out of power in the Andhra Pradesh assembly polls last month, said the TDP had compromised with the issues of the people as it was not raising the issue of special status anymore.

On Tuesday, after the budgetary announcements, the Bihar assembly session saw disruptions by the parties of the opposition alliance. RJD chief Lalu Prasad had earlier sought Bihar CM Nitish Kumar’s resignation for a failure on the special status demand, with BJP leaders hitting back at the RJD and asking why it did not pursue the matter when it was in power in the state.

Bihar is set to hold assembly elections next year.

The TDP, on the other hand, posted on X a list of the budget announcements for the state, crediting “Naidu’s visits to Delhi”.

Then came the special assistance

Despite the budget announcing a plan called Purvodaya focussing on five eastern states, including Bihar, Andhra Pradesh, Odisha, Jharkhand, and West Bengal, the allocation appeared to be skewed in favour of projects in the first two states.

For Bihar, Union finance minister Nirmala Sitharaman proposed to allocate Rs 26,000 crore for highways – for routes such as Patna-Purnia and Bodhgaya-Rajgir-Vaishali-Darbhanga – and to expedite the requests of the JD-U government for loans from multilateral banks. The minister also announced proposals for new airports, medical colleges and sports infrastructure.

HAM-S chief and former Bihar deputy CM Jitan Ram Manjhi, who had earlier sought the Centre’s help in boosting tourism in the state, was all smiles as Sitharaman announced comprehensive development programmes for Vishnupad temple in Gaya and Mahabodhi temple in Bodhgaya. 

“Vishnupad temple at Gaya, and Mahabodhi temple in Bodhgaya, are of immense spiritual importance. Comprehensive development of Vishnupad temple corridor and Mahabodhi temple corridor will be supported, modelled on the successful Kashi Vishwanath corridor to make them a world-class pilgrim and tourist destination,” she said.

Sitharaman also proposed more power projects for Bihar, including a 2400 MW power plant at Pir Payanti that will be taken up at Rs 21,400 crore.

“We will formulate Purvodaya for all-round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh,” the Finance Minister said, saying that this project will focus on human resources development, infrastructure push and generation of economic opportunities in these states. The aim, she said, was to make this region an engine for attaining the goal of Viksit Bharat.

Meanwhile, for Andhra Pradesh, the minister announced that Rs 15,000 crore will be arranged in the current financial year for the state’s development and its need for a capital as part of commitments made under the AP Reorganisation Act. 

“Under the Act, for promoting industrial development, funds will be provided for essential infrastructure such as water, power, railways and roads in Kopparthy node on the Visakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor.  An additional allocation will be provided this year towards capital investment for economic growth.”  

Grants for backward regions in Rayalaseema, Prakasam, and north coastal Andhra Pradesh have also been promised, along with a special mention of the Polavaram Dam project. It did not specify the magnitude of the funds.

Bloomberg had reported that Naidu might have asked for more than Rs 1 lakh crore allocation for Andhra Pradesh while Nitish Kumar was said to be demanding Rs 30,000 crore.

‘Last bid to save power’

Mamata Banerjee’s Trinamool Congress called it the Andhra-Bihar budget and the “last attempt at saving power”.

Samajwadi Party chief Akhilesh Yadav also said that special schemes had been given to Andhra and Bihar to save the government.

“There is an English proverb which says that the tail wags the dog, and that's the political message of this Budget," Congress leader Manish Tiwari said. “It has political compulsions written all over it.”

Congress leader Jairam Ramesh, who had attended the all-party meeting, earlier said the TDP had “strangely” kept quiet on the issue of special status for Andhra Pradesh.

Addressing the media after the meeting, YSRCP Rajya Sabha MP Vijaisai Reddy had said the party had raised eight issues, with the first one being special category status for Andhra Pradesh.

“It has been our demand right from the day it was promised by then prime minister Manmohan Singh on the floor of the Rajya Sabha. Even today, we demand that the special category status is the only solution. The TDP is completely ignoring the issue... it is compromising with the interests of the people of the state,” he said.

Newslaundry is a reader-supported, ad-free, independent news outlet based out of New Delhi. Support their journalism, here.

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