The Centre tonight announced a financial package for Andhra Pradesh that includes full funding of Pollavaram irrigation project, tax concessions and a special assistance, but stopped short of giving the state a special category status.
Andhra Pradesh, which financially suffered because of creation of separate state of Telengana in June 2014, will get a railway zone as also all cost incurred on the irrigation part of Pollavaram project from the date it was declared a National Project on April 1, 2014 will be funded by the Centre. The state government will, however, implement the project, Finance Minister Arun Jaitley at a late night press conference hours before the Andhra Pradesh Assembly is to meet.
"We have decided to give a special assistance measure for 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," he said without giving any figure.
Jaitley, who was accompanied by central ministers M. Venkaiah Naidu and Y.S. Chowdary, said this special assistance will be for five years -- 2015-2020.
The Finance Minister said the issues of a railway zone, steel plant, delimitation of assembly constituencies and assistance for Chennai-Bengaluru and Visakhapatnam-Chennai corridors were under consideration of the concerned ministries.
He promised that the Centre will honour in letter and spirit every commitment made in Andhra Pradesh Reorganisation Act.
Jaitley said the Centre already released Rs 3,975 crore towards revenue deficit of 2014-15 and balance will be released in instalments. "We have already given Rs 2,500 crore as support for the state capital. A further amount of Rs 1,050 crore has been given for backward area grants," he said.
He noted that 14th Finance Commission also made some recommendations with regard to revenue deficit from 2015 till 2020. "Revenue deficit for first two years paid up to date and of course 42 per cent share is also being paid.
It was a disappointment for 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. TDP president and Andhra Pradesh Chief Minister N. Chandrababu Naidu went into a huddle with his cabinet colleagues and top party leaders in Vijayawada
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