4 important Visakhapatnam-based projects overlooked in Union Budget 2024

The 2024 Budget, presented by Finance Minister Nirmala Sitharaman on 23 July, was, in many ways, a win for Andhra Pradesh. With Rs 15,000 crores allotted to the development of Amaravati as the State’s capital, and funds granted for the Polavaram Project, Vizag-Chennair Industrial Corridor, and more, the Budget will aid Andhra Pradesh’s future development in a big way. However, Visakhapatnam residents have expressed their dissatisfaction, as there was no mention of support for any integral projects for the city in the Budget 2024. Here are some of them:

Visakhapatnam Metro Rail

In 2014, under the Andhra Pradesh Reorganization Act, it was decided that a sophisticated, swanky and modern Metro Rail system would be developed in the city of Visakhapatnam spreading to the prospective routes in the VMRDA area. The Light Metro Rail System will be of a total length of 79.91 KM (Corrected to 76.90Km) consisting of 4 corridors.

Steel Plant Jn. to Kommadi on NH-16 (34.23 km)
Gurudwara to Old Post Office (5.28 km)
Thatichetlapalem to Chinna Waltair (RK Beach) (6.91 km)
Kommadi to Bhogapuram Airport (30.48 km)

The metro rail project was conceived as a transformative project for the city’s transportation infrastructure about a decade ago.

As of the last update, it was mentioned that plans were being made by the present NDA-led Government to make changes in the DPR and move the metro rail project forward. Unfortunately, no mention was made in the Union Budget regarding this.

SCoR zone

While the Centre has allocated Rs 9,151 crore for railway projects in Andhra Pradesh, it is unclear whether the funds will be used to establish the new South Coast Railway zone in Visakhapatnam. In a press conference announcing the railway budget allocation, the Union Finance Minister, Ashwini Vaishnav, pointed out that land acquisition issue was delaying the project. “Once the issue is sorted out, work on the zone will gain pace,” he observed hinting at further delay.

In a report by The Hindu, Visakha Steel Executives Association general secretary K.V.D. Prasad said, “Both the Union and the State governments forgot the steel plant. Visakhapatnam has been completely ignored in the Union Budget without any sanctioning any project such as railway zone, metro rail apart from our steel plant. We are deceived.”

Visakhapatnam Steel Plant

Saving the Visakhapatnam Steel Plant has been a priority for the city since the privatization debacle. Last month, Union Steel Minister H D Kumaraswamy had visited RINL and implied that there was no question of privatization, and the plant would continue to operate at 100% capacity. However, VSP is still on the brink of financial exhaustion, and it was expected that the Centre would allocate some funds in the Budget.

CITU state general secretary CH Narasinga Rao questioned why the BJP-led central government failed to include a package for the Visakhapatnam Steel Plant (VSP) in the union budget, despite previous promises to revive the facility. He noted that VSP staff had anticipated budgetary support, yet no funds were allocated to the plant. Rao called for a Rs 5,000 crore allocation and captive mines for VSP to enable it to operate at full capacity.

Vizag-Bhogapuram Airport 6 Lane Coastal Highway

In 2023, the Centre sanctioned a six-lane road connecting Visakhapatnam with the upcoming Greenfield International Airport at Bhogapuram. The project was to include an iconic Bridge on the Gostani River. With the land acquisition costs for this project alone projected to cost Rs 4,000 crore, it goes unsaid how necessary Central funding would be for this project.

The high costs involved, political uncertainties, and challenges in funding have all played a role in hindering the progress of these capital-intensive projects. The 2024 Union Budget also did not mention any of these Visakhapatnam projects in the proposals, though most of them were penned down in the Andhra Pradesh Reoganization Act, 2014. Only time will tell how future developments will be undertaken by authorities.

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