AP will get Special Category Status in another form

​New Delhi: The Centre is considering extending all financial benefits to AP which would accrue to it under the category of a Special Category Status although it is unable to accord the Status as has been demanded by the TDP Government and the Opposition.

As the very Special Category Status is abrogated by the provisions of the 14th Finance Commission which came into effect after the bifurcation of the united Andhra Pradesh, the Centre plans to extend its assistance to Andhra Pradesh and continue its 'hand-holding" through this manoeuver.

Special Category Status entitles States falling under the category, like the North Eastern states and Jammu Kashmir at present, to various provisions for their development including sharing of the funding of Central schemes, in a 90:10 basis with the Centre funding 90 per cent of the cost involved and the states bearing the remaining 10 per cent.

In case of non-Special Category Status states, this would come down to 60:40 share with the states taking a 40 per cent burden and the Centre giving the remaining 60 per cent.

As the Centre is unable to extend the Special Category Status to AP, it is now chalking out a draft plan to increase Central assistance to bridge the gap in funding of Andhra Pradesh which would remain a non-Special Category Status State.

Armed with this 'clarity', Union Minister of State for Science and Technology Y S Chowdary along with his party MPs, R Sambasiva Rao and K Narayana, said all those seeking the SCS and the media should understand that even though the Status was not possible under the law, the Centre was working on a financial benefit for AP.

But, the State government and Chief Minister N Chandrababu Naidu, were insisting on the Status as ever and that should be borne in mind, he added. One should not politicise the issue and keep the interests of the State and its people on top of everything.

He said the Centre was keen that Status could be accorded to AP but the constraints under the changed scenario (after the 14th Finance Commission) were creating hurdles. But the Centre which had undertaken an exercise of late to fulfill the promises made to AP is looking at alternate ways to compensate the State instead.

This meant that it was planning to sanction the financial benefitsand to even out the loss it would suffer in the absence of the Status right now.

That ranged from Rs 350 crore funding for backward districts for six years instead of five as provided for in the AP Reorganisation Act and 90 per cent funding of Polavaram project.

For industrial development, the Centre was preparing to sanction special assistance so that even the FRBM limits could be pushed to match the amount.

This would be possible because of the GST which was in place now. The State government had begun construction of the Polavaram project on its own so that it would not get delayed.

Similarly, general funding of various schemes - 60:40 per cent at present could go up to 90:10 too, he said. The Revenue deficit was also being met fully.

All this meant that every benefit that would accrue to the State under the SCS would materialise now without being granted the special category.