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Why Andhra’s aid package is better than any special status

NEW DELHI: The Centre on Friday said that the financial package for Andhra Pradesh was significant for boosting growth and it was unfortunate the debate has turned

Updated on: Sep 10, 2016, 07:47:43 IST
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NEW DELHI: The Centre on Friday said that the financial package for Andhra Pradesh was significant for boosting growth and it was unfortunate the debate has turned towards the state not getting a “special category status” instead of the merits of the package.

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HT Image

The NDA government on Wednesday announced a special financial package for the development of Andhra Pradesh in lieu of the special category status promised by the previous UPA government at the time of bifurcation of combined AP in June 2014.

The Centre has argued that the recommendations of the 14th finance commission do not according special category status. “Following the recommendations of the 14th Finance Commission, the class of special category states ceases to exist. However, the Central Government has agreed to give a special assistance measure for Government of Andhra Pradesh for five years,” a finance ministry statement said.

“Political parties are unfortunately sticking on to this label, special status, and making an issue out of it,” commerce and industry minister Nirmala Sitharaman said on Friday.

“I will appeal to them to please do some homework on what exactly the central government has extended to Andhra Pradesh. Whether this will be of significance for kick-starting the economy and making it vibrant or not should be debated on facts rather than just on emotions,” she told reporters here.

She was speaking after meeting the BJP leadership of Andhra Pradesh.

The Congress has launched an attack on the Modi government for not keeping the promise of granting special category status to Andhra Pradesh, a commitment that was given by previous UPA regime.

“I would appeal to everybody to please look at the details (of the package) and look at the facts, see what commitments have been made,” Sitharam said.

Andhra Pradesh, which financially suffered because of creation of separate state of Telangana in June 2014, will get a railway zone as also all cost incurred on the irrigation part of Polavaram project from the date it was declared a National Project on April 1, 2014, will be funded by the Centre.

The central government has also given in-principle approval for the establishment of a major port at Dugarajapatnam in Andhra Pradesh on PPP basis, subject to feasibility.