News Arena

Join us

Home
/

fresh-lease-of-life-for-ap-s-special-status-demand

NAI Exclusive

Fresh lease of life for AP’s special status demand

Special Category states would get funds from the centrally-sponsored schemes and external aid in the ratio of 90 per cent grants and 10 per cent loans, while other states get 30 per cent of their funds as grants. Besides, they would be given tax breaks and excise duty concessions to attract industries.

News Arena Network - Hyderabad - UPDATED: June 8, 2024, 06:42 AM - 5 mins read

PM Modi and Chandrababu Naidu during an election campaign rally.

Fresh lease of life for AP’s special status demand

PM Modi and Chandrababu Naidu during an election campaign rally.


In March, 2018, the Telugu Desam Party, headed by N Chandrababu Naidu, had walked out of the NDA over the denial of Special Category Status to Andhra Pradesh which was undergoing the pangs of bifurcation. 

 

Six years later, Naidu has now emerged as the kingmaker of the NDA 3.0 and his support is crucial to the stability and longevity of the coalition government. The TDP, with 16 Lok Sabha seats in its kitty, is the largest ally of the NDA.

It is widely expected in political circles that Naidu will revive the demand for Special Status for AP, along with other items on his party’s wish list.

 

What is Special Category Status?

 

When Andhra Pradesh was divided to carve out a separate Telangana state in 2014, an oral assurance was given on the floor of the Parliament by the then Prime Minister Manmohan Singh that the residual AP would be given Special Category status for a period of five years to tide over the problems.  This was mainly to compensate for the loss of revenue, and of Hyderabad, where much of the development was concentrated.

 

It was supported by BJP which included the promise in the manifesto. The idea was to handhold the successor AP since it would lose a significant amount of revenue as a result of Hyderabad going to Telangana, the new state that came into existence on June 2, 2014.

 

Special Category states would get funds from the centrally-sponsored schemes and external aid in the ratio of 90 per cent grants and 10 per cent loans, while other states get 30 per cent of their funds as grants. Besides, they would be given tax breaks and excise duty concessions to attract industries.

 

The SCS states enjoy special industrial incentives such as Income-tax exemptions, custom duty waivers, reduced excise duty, corporate tax exemption for a certain period, concessions and exemptions relating to GST, and lower state and central taxes

 

An irrelevant privilege now?

 

However, the 14th Finance Commission did away with the distinction between general and special category states since it had taken into account the level of backwardness of states in the proposed transfer of funds to states. It recommended higher devolution of central taxes to the states.

 

The idea was that adequate resources would be allocated through tax devolution and grants to address interstate inequalities. The special category status was therefore restricted to the three hill states of Jammu and Kashmir, Himachal Pradesh and Uttarakhand and those in the Northeast.

 

 It was also decided that a revenue deficit grant would be provided for certain states for which devolution alone would be insufficient. AP was one of the states that were to be given a revenue deficit grant.

 

While ruling out special status to AP in the light of the 14th Finance Commission report, the then Finance Minister Arun Jaitley, however, said the Centre was committed to granting the monetary equivalent of a special status to Andhra and would bear 90 per cent of the share of schemes sponsored by the Centre.

 

Andhra’s contention

 

AP argues that the undivided state was bifurcated in an unjust and inequitable manner — the successor state inherited nearly 59% of the population, debt, and liabilities of the original state, but only 47% of its revenues. For example, of the Rs 57,000 crore of software exports from AP for the year 2013-14, Hyderabad city — with Telangana after the bifurcation — alone accounted for Rs 56,500 crore.

 

Today’s AP is essentially an agrarian state, with low economic buoyancy, leading to huge revenue disabilities.

 

The 2024 verdict has brought in a new set of vulnerabilities for the BJP which has failed to get a majority on its own. While it cannot outrightly reject Naidu’s demand, it cannot afford to be selective either. Giving Naidu what he wants to the exclusion of other states — notably Bihar and Odisha — will be difficult.

 

Also, the 14th Finance Commission had stated that SCS was a burden on the Centre’s resources — this has been used by the NDA to reject Naidu’s pleas since 2014.

 

Related News
New Delhi: Haryana Chief Minister Nayab Singh Saini felicitates former Haryana Congress leaders Kiran Choudhry (second from left) and her daughter Shruti Choudhry after joining BJP, in New Delhi, Wednesday.

Kiran's switch alters Haryana's electoral dynamics

June 19, 2024, 07:55 AM - 4 mins read

It will be for the first time in the last three General Elections that the Congress is in a position to claim the position of the Leader of the Opposition, for which a party needs 10 per cent members of the total strength, which comes to 55.

With Rahul reluctant, Cong searching for LS leader

June 18, 2024, 07:22 AM - 4 mins read

Rahul Gandhi while addressing a press conference.

Rahul-upcoming minority icon in Lalu-Mulayam mould

June 15, 2024, 08:20 AM - 7 mins read

Right time for Naidu to bring SCS to Andhra?

Right time for Naidu to bring SCS to Andhra?

June 14, 2024, 07:09 AM - 5 mins read

Heavy security deployment in Jammu.

Shift of ‘terror-theatre’ to Jammu from Kashmir

June 13, 2024, 08:51 AM - 6 mins read

Students in Kerala, protesting against discrepancies in the NEET-UG exam.

Explained: What the NEET controversy is all about

June 13, 2024, 04:30 AM - 5 mins read

SAD Chief Sukhbir Badal. File Photo.

Sukhbir Badal; desperate for political relevance

June 12, 2024, 05:06 AM - 6 mins read

Nara Chandrababu Naidu. File photo.

Naidu 4.0 marks start of collaborative governance

June 12, 2024, 01:27 AM - 5 mins read

Khadoor Sahib winner Amritpal Singh(left), Faridkot seat winner Sarabjeet Singh Khalsa(right).

Khadoor Sahib, Faridkot verdict; reading it wrong

June 11, 2024, 05:51 AM - 5 mins read

Prime Minister Narendra Modi chairs the first meeting of his new Cabinet, attended by the newly-inducted ministers, at the prime minister's 7, Lok Kalyan Marg residence, in New Delhi on Monday, June 10, 2024.

Modi 3.0 portfolio allocation ensures continuity

June 10, 2024, 08:28 AM - 4 mins read

Ravneet Singh Bittu takes oath as a union minister at the Rashtrapati Bhavan.

Rise of Ravneet Bittu; minister despite losing

June 10, 2024, 03:50 AM - 5 mins read

https://www.instagram.com/thelaughclubofficial/
https://www.instagram.com/burraahhh_/

Opinion

See All
New Delhi: Haryana Chief Minister Nayab Singh Saini felicitates former Haryana Congress leaders Kiran Choudhry (second from left) and her daughter Shruti Choudhry after joining BJP, in New Delhi, Wednesday.

Kiran's switch alters Haryana's electoral dynamics

June 19, 2024, 07:53 AM - 4 mins read

Upset over her daughter being denied the Bhiwani-Mahendergarh Lok Sabha seat, Kiran Chaudhary reportedly boycotted campaigning for Congress's Rao Dan Singh, who lost to BJP's Dharambir Singh by 41,510 votes.

Read more
It will be for the first time in the last three General Elections that the Congress is in a position to claim the position of the Leader of the Opposition, for which a party needs 10 per cent members of the total strength, which comes to 55.

With Rahul reluctant, Cong searching for LS leader

June 18, 2024, 07:22 AM - 4 mins read

It will be for the first time in the last three General Elections that the Congress is in a position to claim the position of the Leader of the Opposition, for which a party needs 10 per cent members of the total strength, which comes to 55.

Read more
Rahul Gandhi while addressing a press conference.

Rahul-upcoming minority icon in Lalu-Mulayam mould

June 15, 2024, 08:20 AM - 7 mins read

Gandhi’s campaign was moulded in a particular way to appeal to the same segment of voters, with minorities, mostly the Muslims being the main focus, to be cultivated. During his campaign speeches, Gandhi would often allude to his “ninety per cent” theory, which he claimed had been marginalised and sidelined by the “ten per cent” elite.

Read more
Right time for Naidu to bring SCS to Andhra?

Right time for Naidu to bring SCS to Andhra?

June 14, 2024, 07:09 AM - 5 mins read

It was 2018 when Naidu left the NDA coalition, a year ahead of the 2019 general elections, in demand of Special Category Status for Andhra Pradesh. And, this time, the situation appears like a double-edged sword for him.

Read more
Heavy security deployment in Jammu.

Shift of ‘terror-theatre’ to Jammu from Kashmir

June 13, 2024, 08:51 AM - 6 mins read

The terrorists involved in these attacks are believed to be non-locals who have infiltrated from across the border/line of control. Summer is the ideal time for the ISI and Pakistan to push the infiltrators into the state as the snow melts down and the hilltops are relatively less difficult to cross. 

Read more
Students in Kerala, protesting against discrepancies in the NEET-UG exam.

Explained: What the NEET controversy is all about

June 13, 2024, 04:30 AM - 5 mins read

Last year, two students shared the top rank. Students have been alleging the marks have been randomly reduced or increased for several candidates, affecting their ranks. The grace marks awarded to over 1,500 students to compensate for loss of time due to delays in exams at six centres are also under scanner.

Read more
SAD Chief Sukhbir Badal. File Photo.

Sukhbir Badal; desperate for political relevance

June 12, 2024, 05:06 AM - 6 mins read

Sukhbir’s party does not have any political bargaining power at the centre. With just one MP, it hardly could. Added to that is the comfortable majority the National Democratic Alliance (NDA) got on its own without needing any additional members or supporters. 

Read more
Nara Chandrababu Naidu. File photo.

Naidu 4.0 marks start of collaborative governance

June 12, 2024, 01:27 AM - 5 mins read

In his four decades of public life, Naidu has shown his acumen as an able administrator and a man with vision and ideas that translate into practical betterment for all. 

Read more
Khadoor Sahib winner Amritpal Singh(left), Faridkot seat winner Sarabjeet Singh Khalsa(right).

Khadoor Sahib, Faridkot verdict; reading it wrong

June 11, 2024, 05:51 AM - 5 mins read

Khadoor Sahib is known as a constituency dominated by ‘panthic’ sentiments, which identify with the Sikh community. Earlier, this sentiment was identified with the traditional Shiromani Akali Dal-Badal, now being led by Sukhbir Singh Badal. 

Read more
Former Punjab CM Beant Singh(left), and former Indian PM Indira Gandhi with her assassin Beant Singh (right).

Punjab’s two ‘Beant Singhs’ with separate legacies

June 10, 2024, 09:58 AM - 5 mins read

In Punjab’s era of militancy, there were two ‘Beant Singhs’, both of whom have left their mark on history. Depending on which side of the ideological fence one is, each ‘Beant Singh’ is treated in a different way.

Read more
Prime Minister Narendra Modi chairs the first meeting of his new Cabinet, attended by the newly-inducted ministers, at the prime minister's 7, Lok Kalyan Marg residence, in New Delhi on Monday, June 10, 2024.

Modi 3.0 portfolio allocation ensures continuity

June 10, 2024, 08:25 AM - 4 mins read

By retaining the core team of ministers handling crucial portfolios from his previous team, he has signalled that there will be no significant departures from his last government's economic, political, and strategic roadmap despite the failure to secure a simple majority in the Lok Sabha.

Read more
Ravneet Singh Bittu takes oath as a union minister at the Rashtrapati Bhavan.

Rise of Ravneet Bittu; minister despite losing

June 10, 2024, 03:50 AM - 5 mins read

Although Bittu did not win as an MP, he did lead in five of the nine assembly segments, all of these urban. Inducting him as a minister conveys an important message to the electorate and the people that their choice was respected.

Read more

TOP CATEGORIES

  • Nation

QUICK LINKS

About us Rss FeedSitemapPrivacy PolicyTerms & Condition
logo

2024 News Arena India Pvt Ltd | All rights reserved | The Ideaz Factory