The Central government has announced a special package for Andhra Pradesh in the national capital on Wednesday.
Finance Minister Arun Jaitley addressing the media in Delhi said, The state has lost industrialization and revenue potential due to bifurcation. The state is entitled to center assistance based on four documents.
1. AP Reorganization Act
2. 14th finance commission
3. Former Prime minister assurances in Rajya sabha
4.Recommendations with regard to the assistance to the state by Niti Aayog
He said, Every commitment made in the AP Reorganisation act will be implemented in letter and spirit by the present government. Over the past two years, 3975 crore were given to the state to fill the financial deficit, center helped in construction of state capital and gave 1050 crore for state backward areas.
As on 1.4.14 from which date it (Polavaram Project) becomes national project, funding from that date onwards is going to be met by Centre.Process of funding will be decided. One process is that NABARD would fund it and we would return it to NABARD.On behalf of Centre , we will authorise state Govt to do construction part because the state has an interest in the project ,said Jaitley.
He said, recommendations regarding revenue deficit paid for first two years and remaining balance will be paid in instalments
Regarding Former PM Manmohan Singh assurance given on the floor of Rajya sabha on 20th feb 2014, FM said, The 5 assurances are already in the act and will be implemented. The six and the key assurance “Special category status” cannot be implemented after 14th Financial commission came into existence.
He said, According to 14th Finance commission, Only Hill states and North Eastern states are eligible for Special status while other states will get special assistance.
He said, We have decided to give a special assistance measure for the state of Andhra Pradesh. this will be in form of externally aided projects. In a spirit to honour the former PM’s statement. Since the Special category status was recommended by former PM for 5 years, This special assistance measure will go for 5 years.
The other promises like steel plant, Railway zone are under consideration of respective ministries. The Railway zone location will be decided by Railway minister Suresh Prabhu., said Jaitley.