According to official sources, the Andhra Pradesh government has requested immediate financial assistance from the central government to revive the state’s economy. Although no official estimates have been released, the assistance sought could range between ₹10,000 crore and ₹15,000 crore or more.

The state government prefers the support to come in the form of a central grant, though a soft loan from the Centre would also be acceptable, according to official sources. “We are seeking a deferment, not a default,” stated a state government official.

Sources indicate that the immediate priority is to restart irrigation projects, particularly the Polavaram project, for which fiscal assistance has been requested. Andhra Pradesh has also reportedly sought a higher borrowing limit to address its immediate financial strain. Officials mentioned that with the new government taking charge, the state’s fiscal numbers are being revised, so determining the exact amount of “immediate financial assistance” required will take a few more days.

While these are some of Andhra Pradesh’s immediate concerns, official sources emphasize that they have a short- and medium-term plan to revive the state’s economy and restart industrial investments. The medium-term plan spans from one to three years, and they are seeking the Centre’s support to achieve this.

Detailing some of the state’s fiscal issues, official sources noted that power dues from the past five years total around ₹60,000 crore, while unpaid industry incentives amount to another ₹9,000 crore. Officials also mentioned that 5–6 White Papers, including one on State Finances, are expected to be released by July 18. Following this, Andhra Pradesh will opt for a Vote on Account, with a new budget presentation planned for next year.

The state’s immediate priority is to restart the economic engine, which officials claim was completely stalled by the previous government.