With its hands tied over the grant of special category status after the recommendations of the 14{+t}{+h}Finance Commission, the Central government has been treating Andhra Pradesh as a special state, Andhra Pradesh BJP president and MP K. Haribabu has said.
The Finance Commission categorically states that there cannot be any discrimination between “special category” and other states.
SCS will only bring in 90 per cent funds from the Central government with the State government footing the remaining 10 per cent in Central government-sponsored projects. For other states the ration will be 60:40.
In the package, the Central government has announced that the 30 per cent difference would be calculated and funds earmarked to that extent for externally-aided projects, Mr. Haribabu said.
The Centre was ready to make good the loss that the State would suffer if SCS was not granted and in fact was ready to give even more, the MP said. The Central government was also ready to bridge the revenue gap for the term of the 14{+t}{+h}Finance Commission.
As per the Reorganisation Act, Polavaram had been declared a national project, ordinance on mandals facing submersion given and in the last two financial years Rs.850 crore released. The entire cost of the project since its announcement as national project in June 2014 would be borne by the Central government.
Though the 13{+t}{+h}Schedule of the A P Reorganisation Act clearly states that the assistance can be extended over a period of 10 years, in mere two years a number of Central educational institutions and infrastructure projects were sanctioned, the MP said in a statement here.
A total of 12 national-level institutions, including AIMS, IIT, NIT, Petroleum University, that would cost Rs.7000 crore to set up have been sanctioned, Mr. Haribabu said. Construction of School of Planning and Architecture in Vijayawada is nearing completion.
Besides several infrastructure and other projects and assistance for the new capital, in the next five years the State would get funds of Rs.2,06,819 crore, the MP said.
