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Andhra Pradesh has received significantly higher support from the Union government under the Scheme for Special Assistance to States for Capital Investment (SASCI) since the Telugu Desam Party (TDP)-led coalition came to power than it did under the previous YSR Congress Party (YSRCP) government, Union Finance Minister Nirmala Sitharaman told the Lok Sabha on Monday, August 3.
Replying to a question from YSRCP MP PV Midhun Reddy on Andhra Pradesh's access to 50-year interest-free capital loans under the SASCI scheme, Sitharaman shared details of the funds released to the state from 2020-21 until August 1, 2026.
According to the Minister, the Union government released Rs 31,005.47 crore to Andhra Pradesh under the scheme during this 6.5-year period.
Of this, Rs 11,386 crore was released during the four financial years from 2020-21 to 2023-24, when the YSRCP was in power, averaging about Rs 2,846 crore per year.
In contrast, since the TDP-led coalition assumed office, the Union has released Rs 19,619 crore over the past 2.5 years, averaging roughly Rs 7,847 crore annually.
Responding to Midhun Reddy's question on whether conditions imposed by the Union government had delayed the disbursal of these loans, Sitharaman said funds under the SASCI scheme are released only after the state government submits complete proposals in accordance with the scheme's guidelines.
She also clarified that no portion of the scheme has been earmarked exclusively for the construction of Amaravati. However, she said, the Andhra Pradesh government is free to propose any capital project, including those related to the development of Amaravati, within the allocation available under the scheme.
The Andhra Pradesh government has maintained that the higher allocation of SASCI loans during the TDP government's tenure reflects "stronger Centre-state ties."
