Special status continues to elude AP

With Andhra Pradesh completing one year in June since its bifurcation and the creation of Telangana, the special category status promised by the UPA government is yet to be implemented.

A number of visits to New Delhi and petitions by Chief Minister N Chandrababu Naidu to the Narendra Modi-led NDA government have not yielded results so far.

Union Finance Minister Arun Jaitley’s recent statement that while the special category status could not be announced now due to some procedural issues, necessary funds would be provided to the State casts a shadow over the State ever getting the status.

If the special category status is accorded, apart from receiving additional funds from the Centre, the State would be able to attract more investors as it would entitle industries to additional benefits such as extended tax rebates.

Unveiling the Master Plan for new capital city presented by the Singapore government, Naidu said he would continue to press for special status. “Everyone knows how the division has been forced on people and how Andhra Pradesh has been put to irreparable loss and hardship,” he said.

“The focus would be on ensuring we get adequate funds to take up various developmental works, including building the capital city of Amaravati. The accent is on securing special status and ensuring necessary funds till we have a level playing field with the others,” he said.

While Jaitley has promised that the financial commitments to AP would be fulfilled and the special status considered later, he alluded to the observations made by the 14{+t}{+h} Finance Commission on the issue. The government will have to explore other options, and consider either granting special status later or find ways to fund the requirements of Andhra Pradesh, including for the Polavaram multipurpose project, which has been granted national project status.

The Centre has so far released ₹250 crore for Polavaram special purpose vehicle and last week announced another ₹900 crore for the project.

Union Parliamentary Affairs Minister M Venkaiah Naidu has repeatedly made it clear that all aspects of AP Reorganisation Act made during the passage of the Bill would be ensured. However, he has said that it might take some more time.

The special category status has no mention in the Act and granting such a status in the backdrop of several other States, including Telangana, making similar demands, it would be a tough nut for the Modi government to crack. According to a senior bureaucrat, it is one of the main reasons for the Centre dragging is feet over the issue.