Arun Jaitley
Indian Devence Minister Arun JaitleyReuters

Union Finance Minister Arun Jaitley has allocated three prestigious national-level institutes, industrial corridors and a hardware industrial hub to Andhra Pradesh, while giving a horticulture university to the new state Telangana.

In his maiden Union Budget on Thursday, Jaitley also assured to fulfill all promises made in AP Re-organisation Act 2014 for the development of both states.

Telangana was carved out from united AP on 2 June. And BJP, which heads the ruling NDA government, has promised both residuary AP and the new state of development in all key sectors.

The three premiere institutes promised to AP are: All India Institute of Medical Sciences (AIIMS), Indian Institute of Technology (IIT) and Agriculture University.

The Budget has set aside ₹500 crore for AIIMS in AP. A hardware industrial hub will be set up in Kakinada, one of the port cities of AP. The Budget also proposes to establish an industrial corridor between Visakhapatnam and Chennai.

The Budget has also proposed establishment of National Excise and Customs Academy in Hindupur in the drought-prone Anantapur district. Developing Krishnapatnam port city as an industrial smart city is another provision made in the Budget.

Referring to Telangana, Jaitley said that a horticulture university will be set up at ₹200 crore. He added that the government is committed to addressing issues relating to the development of Andhra Pradesh and Telangana. Provision has been made by various ministries/departments to fulfill the obligation of Union government for both states, he added.

However, K Kavita, MP from Nizamabad and daughter of Telangana Chief Minister K Chandrasekhar Rao, described the Union Budget as "non-inclusive". The Budget has left Telangana people "uncertain and insecure", she deplored.

Drawing a contrast between the development projects announced to AP and Telangana, Kavita expressed displeasure over the Centre for not allocating an IIT or AIIMS, which the new state has been demanding for a long time.

N Chandrababu Naidu-led Telugu Desam Party (TDP), the ruling party of AP, allied with BJP and came to power by winning the last general and Assembly polls in the state. On its part, BJP has also gained considerably in the last elections in AP, where only TDP and Congress only ruled so far.

While campaigning for the polls, both Naidu and Prime Minister Narendra Modi, flanked by popular actor Pawan Kalyan, had promised the Hyderabad-deprived residuary state that it would be developed into a state on the lines of Gujarat.

Union Urban Development Minister M Venkaiah Naidu, who is also from Andhra Pradesh, has announced plans to develop smart cities in the state. Venkaiah Naidu has also reiterated to give equal prominence to the development of Telangana as well.