Andhra Denied Special Status, Will Just Get Monetary Compensation
The Centre said that special status could be accorded only to hill states and North-Eastern states.
Making it clear that Andhra Pradesh will not be accorded special category status, the Centre on Wednesday said the state will nevertheless be provided monetary compensation through externally-aided projects.
After a day-long suspense and hectic consultations in the national capital, Union Finance Minister Arun Jaitley announced on Wednesday night that the state will get a monetary advantage equivalent to what it would have gotten if it was accorded special category status.
Jaitely made it clear that the then Prime Minister Manmohan Singh’s statement made in the Rajya Sabha on 20 February 2014 – to accord 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 special assistance to 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.Arun Jaitley, Finance Minister
Jaitely, who was accompanied by Central Ministers M Venkaiah Naidu and YS Chowdary, said this special assistance will be for five years – from 2015-2020.
The announcement came after the day-long consultations Chowdary and other leaders of Telugu Desam Party (TDP) had with Jaitley, Venkaiah Naidu and other Central ministers.
It was a disappointment for the TDP, a part of the BJP-led NDA government at the Centre. The party was expecting a massive financial package for the state, if not the special category status.
(Published in an arrangement with IANS)
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