Hyderabad: The Modi government did not agree to give any special status to Andhra Pradesh as was demanded by the state, but agreed to provide monetary benefits to the state equivalent to special category status. Andhra CM N Chandrababu Naidu demanded that the Centre gives clarity and implement its promises in a time-bound manner after Union finance minister Arun Jaitley made the announcement in Delhi. Jaitley announced that the state would get monetary advantage equivalent to what it would have got if it was accorded the special category status.
Jaitley said that then Prime Minister Manmohan Singh's statement made in Rajya Sabha on Feb 20, 2014 for according special status to Andhra Pradesh can't be implemented as the 14th Finance Commission has recommended that the special category status can be given to only hill states and North-Eastern states. "We have decided to give a special assistance measure for the state of Andhra Pradesh wherein an amount equivalent to what they would have got if that statement could have been implemented, will be compensated to the state by virtue of externally aided projects," he said without giving any figure.
Jaitley said this special assistance would be for five years – 2015-2020. On Polavarm irrigation project, he said from April 1, 2014 when it was declared a national project, the entire funding will be met by the Centre. The Finance Minister said the issues of a railway zone, steel plant, delimitation of assembly constituencies and assistance for Chennai-Bengaluru and Visakhapatnam-Chennai corridors were under consideration of the concerned ministries.
He promised that the Centre would honour in letter and spirit every commitment made in Andhra Pradesh Reorganisation Act. Jaitley said the Centre already released £397.5 million towards revenue deficit of 2014-15 and balance will be released in instalments. "We have already given £250 million as support for the state capital. A further amount of £105 million has been given for backward area grants," he said.
Naidu, whose TDP is a partner in BJP-led NDA government at the Centre, said while he still wants special category status, the Centre has at least come forward to declare that it would provide equivalent compensation. Naidu said if he had insisted on special category status, the delay would further damage the state's interests. He admitted that there was no alternative. This was obvious reference to political reality as National Democratic Alliance government is not dependent on TDP's support.
