Andhra Pradesh Eyes Rs. 13,934 Cr Energy Allocation in 2026–27 Budget

Andhra Pradesh has been fast emerging as a hub for renewable energy since June 2024. Under the Integrated Clean Energy Policy, 55 projects worth Rs. 2.88 lakh crore have been allotted, covering 15.56 GW of solar, 4.86 GW of wind, 17.7 GW of PSP, and 1 MMTPA of green hydrogen, among others.

Andhra Pradesh Finance Minister Payyavula Keshav proposed an allocation of Rs. 13,934 crore to the Energy Department for 2026–27 during his budget speech. Overall, the minister proposed a total expenditure of Rs. 3,32,205 crore, with revenue expenditure estimated at Rs. 2,56,143 crore and capital expenditure at Rs. 53,915 crore for the financial year 2026–27.

The estimated revenue deficit is around Rs. 22,002 crore, while the fiscal deficit is around Rs. 75,868 crore. The revenue deficit is estimated at around 1.11%, and the fiscal deficit at around 3.84% of GSDP.

In the current year, the government has released more than Rs. 11,000 crore towards agriculture power subsidies, benefiting over 22.5 lakh farmers, and Rs. 890 crore towards aqua tariff subsidies, supporting more than 48,500 aqua consumers, in addition to concessional tariffs for several Below Poverty Line (BPL) occupational groups.

Securing Investment

The minister also spoke about the state securing investments, building projects like an Integrated Solar Cell Project, 500 CBG Plants, Green Aluminium Project in Kakinada, Semi-conductor facility in Orvakal, among others. 

He also mentioned current government steps in stabilising the sector through efficient power procurement and higher own generation, which has enabled tariff rationalisation and allowed financial benefits to be passed on to consumers.

The minister also spoke about securing its largest single FDI investment ($1.45 bn) and the state's success in securing a $15 billion deal, i.e., Rs. 1.35 lakh crore investment in AI-Powered Data Centre by Google in Visakhapatnam, amongst stiff international and national competition.