No clarity over special category status for Andhra Pradesh

There is still no clarity as to whether the Central government will accord special category status to Andhra Pradesh or not.

Union minister of state for science and technology YS Chowdary said that special category status has been the foremost demand of the state government and yet there were no clear indications that it is in the pipeline.

He said since it was not a part of the AP Reorganisation Act 2014, there are certain legal and technical difficulties and the Central government is working out a best solution to overcome them.

“We have been asking the Centre time and again that state was put at a disadvantage after the unified Andhra Pradesh was bifurcated and since it needs a level playing field, the special category status has to be given,” he told mediapersons in Delhi on Thursday.

Unified Andhra Pradesh was never a non performing state, but now it has been put at a disadvantage position and need handholding. Special category status should be given at least for five years, if not for 10 or 15 as asked earlier, he added.

According to him, since there are legal and technical problems, the Central government

is working out what the state would get if the special category status is given and how best to compensate it in the event of decision against special category status. With regard to revenue deficit, Chowdary said the Central government had agreed to honour the commitment made in the Act.

He said it also agreed to provide Rs.350 crore per year to the seven backward districts of the state for a period of six years, of which it had already given the funds for two years. With regard to capital city development, the Central government has been giving funds, and gave a clarity that it will consider funding once the  DPR for the capital city is submitted.

Asked about Polavaram, he said as per the NABARD provisions, funding for any national project will be in 70:30 ratio, but in case of Polavaram, the provisions of the XI Finance Commission, that is funding in 90:10 percent is being considered, which will benefit the state. He clarified that construction work is being done under supervision

of Polavaram Development Authority and the funding will be done by NABARD.

He said all the clearances for the project have been deemed to have been given, there is no ambiguity in that aspect. He further said NABARD is appraising the latest cost estimate including expenditure to be incurred on R&R package. On separate railway zone for the state, he said the issue is still under discussion and clarity on the issue might emerge in three or four days.

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