Plan Panel gets down to business

Hyderabad: Moves are afoot for setting up of a special cell by the Planning Commission for implementing the special category status assured for the residuary State of Andhra Pradesh. The special status would accorded initially for a period of five years as was the case with Uttarakhand. The Group of Ministers was recently apprised of the progress on this front by the officials of Union Finance department. The Planning Commission informed the GoM that the exact amount of normal Central assistance and other assistance consequent on the grant of special category status can only be quantified after June 2, 2014, when the resource position of Andhra Pradesh will be known.

It was also informed that the endorsement of National Development Council (NDC) is required to give the special category status. The GoM was also informed that the approval of the Cabinet is required for making a reference to the Fourteenth Finance Commission to apportion the devolution of sharable taxes to both the States. Under the special category status, central assistance comprises 90 per cent grants and 10 per cent loans. A special category State gets preferential treatment in federal assistance and tax breaks.

Chief Secretary P K Mohanty was informed about the decisions to be taken by the Government of India at a meeting held in Delhi on Friday. He was also asked to submit the required reports to the Government of India. The officials of Union Railway Ministry contended that the establishment of a new railway zone for Andhra Pradesh is not possible now. They are also not in favour of setting up a rail coach factory in Telangana. They said, “Rail coach to Telangana is not needed as the existing and planned capacity is sufficient for future needs.” On the feasibility of Metro Rail in Visakhapatnam, railway officials requested the State government for a feasibility report. The Central government officials also did not respond favourably so far on the setting up of a petroleum university and greenfield refinery in Andhra Pradesh.

Likwise, the GoM was informed that the study on feasibility of Visakhapatnam- Chennai industrial corridor was underway. There was no progress pertaining to the establishment of IIT, NIT, IIM, Central University, Agricultural University and Tribal University in AP. There was also no response on the establishment of a Horticulture University in Telangana.