Shocker: No special category for Andhra Pradesh

Planning Commission had just delivered a shocker to the bifurcated Andhra Pradesh. The commission made it clear that the state does not meet the National Development Council criteria for special category state. In a presentation given to Planning Minister Inderjit Singh Rao the commission made it clear the Andhra Pradesh did not met the norms to have special status.

According to commission the criteria include hilly and difficult terrain; low population density and or sizeable share of tribal population; strategic location along borders with neighbouring countries; economic and infrastructure backwardness. But Seema Andhra does not meet the criteria.

It is known that ex-Prime Minister Manmohan Singh made an announcement of 5 years Special status to Andhra Pradesh in Rajya Sabha during the state bifurcation. With this decision AP is going to lose the benefits from central government. Special Category Status deals with economic, administrative and financial aspects.

Usually for all states Central assist 30 per cent as grant and 70 per cent as loan but special category states receive 90 per cent plan assistance as grant and just 10 per cent as loan.At present there are 11 States that enjoy Special Status and Special Category Status: Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand.

We will have to see how Modi lead BJP will take this forward as the state in dire need of getting financial benefits from center.