Why the Centre cannot grant special status to Andhra Pradesh

Why the Centre says it cannot grant special status to Andhra Pradesh Why the Centre says it cannot grant special status to Andhra Pradesh Chief Minister Chandrababu Naidu and Finance Minister Arun Jaitley agree that Andhra Pradesh has suffered financially since bifurcation in 2014. Yet, the Centre is unwilling to grant the state a Special Category Status tag. Here’s why. By: Express Web Desk | New Delhi | Updated: March 8, 2018 2:27 pm Finance Minister Arun Jaitley meets Andhra Pradesh Chief Minister Chandrababu Naidu at the Finance Minister in New Delhi. (Express Photo/Anil Sharma/File)
Regional parties in Andhra Pradesh are trading charges with the Centre over granting special category status for the state. At the time of bifurcation in 2014, this was a promise made by the then government, headed by former prime minister Manmohan Singh . However, the BJP-led government has ruled this out now. Union Minister Arun Jaitley on Wednesday offered to provide the “monetary equivalent” but said the state could not be given “special status”.
Telugu Desam Party (TDP) leader and Andhra Pradesh Chief Minister Chandrababu Naidu, addressing the press on Wednesday night, said the party would withdraw from the central government for not granting the special category status to Andhra Pradesh. Naidu reiterated that Andhra has suffered financially since bifurcation.
Jaitley agrees with Naidu that Andhra, which was unwilling to bifurcate, has suffered in terms of resources since 2014.
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So why can’t the Centre grant Andhra special status?
Under the 14th Finance Commission recommendations, the “special status” categorisation has been removed. It is now restricted only to the northeastern and three hilly states. The recommendations were accepted in 2015, a year after the Andhra was bifurcated. Also read: What do states with the Special Category Status receive?
“One of the promises was that at that time (of bifurcation), a special category status could be given to Andhra Pradesh. At that time, the concept of special category states did exist,” Jaitley said yesterday. “Such a treatment is now ‘constitutionally’ restricted to just the north-eastern and three hilly states.”
Explained | ‘Broken promise’, funds crunch: Why Andhra CM N Chandrababu Naidu is angry
What has the Centre offered instead?
The Centre has offered to provide “special assistance” to Andhra for five years. Equivalent to the Special Status Category, it has offered 90:10 funding for all centrally sponsored schemes — which adds up to about Rs 20,010 crore of central assistance.
Further, while the state pegs Rs 16,000 crore as its revenue deficit, the Centre, which has already paid Rs 4,000 crore, says it will release pending amount of Rs 138 crore. The TDP also wants funds from local agencies like Hudco and Nabard, while the Centre has proposed funding in the form of loans from external agencies like the World Bank.
For the Polavaram project, the state has said the Centre must bear the total expense, including the cost of land acquisition, relief and rehabilitation, amounting to Rs 33,000 crore. The Centre, which has paid Rs 5,000 crore, assured more funds at a later point.
For the state capital of Amaravati, the state wants Rs 33,000 crore. The Centre has already disbursed Rs 2,500 crore, including Rs 500 crore each of Guntur and Vijayawada. For all the latest India News , download Indian Express App © IE Online Media Services Pvt Ltd M Maz Mar 9, 2018 at 1:40 am Massive corruption in construction of Amravati and Pallavaram projects – that is why this CHOR Babu wants to get Center to pay for it. AP people talk as if they did India a favor by bifurcating AP into Telangana and AP. Wasnt it because they were constantly fighting with each other that it was bifurcated ? Why should rest of India build AP’s new capital for them ? When states like Bihar , MP etc are poorer than divided AP – why should AP get “special category ” ? (4) (6) Reply Mar 9, 2018 at 1:04 pm Because it was promised by prime minister in 2014. AP people are asking to implement “AP bifurcation Act 2014 ” which was passed in Indian Parliament. (0) (0) Prasad Kolluri Mar 9, 2018 at 1:34 pm Please dont make baseless allegations of corruption. If you have any details, please file a case. Corruption or not is a secondary issue. The primary issue is that the state has been promised by the central government of the day that it will be grated special status. Years have passed by, Hyderabad has been committed to Telangana, the state continues to suffer significant resource loss. All CBN is asking for is to basically meet the promises that were made. Who else but for the CM of the state do you expect to raise those questions to Centre, especially when the centre has missed it’s commitment? (0) (0)

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