Is Special Category status to Andhra Pradesh proving to be a mirage? It appears so going by the indications given by a Union Minister here on Friday.
Though not in so many words, Union Minister of State for Science and Technology, Y.S. Chowdhary said the Centre would soon come out with an alternative scheme in view of the delay in granting Special Category status.
There was delay as granting such status would have to be approved by the National Development Council comprising Chief Ministers and the Niti Ayog that has replaced the Planning Commission.
He said under the alternative scheme, Andhra Pradesh would get funds under Centrally-sponsored schemes and externally-aided projects in the form of 70 per cent grants and 30 per cent loans. The fiscal incentives to be given to Andhra Pradesh include 15 per cent income tax discount on capital allowance and three per cent interest waiver on capital investment and working capital for new industries.
Rs. 1,000 crore fund
Mr. Chowdhary said the Centre would release an amount of Rs.1,000 crore towards building the new capital of Andhra Pradesh in the next 15 days and is likely to announce fiscal incentives and an exclusive venture capital fund for the State shortly.
As per the AP Reorganisation Act, the Centre would fund building of the Secretariat, Raj Bhavan, Assembly, High Court, officers colony, among others in the new capital. Since the State government was planning a world class capital and the estimates for core capital could be around Rs. 20,000 crore, he said the Centre was being requested to provide the funds over a five-year period. An amount of Rs.2,000 crore could be expected in the near future, he added.
The Centre would also be coming out with Special Development Package for three North Andhra and four Rayalaseema districts, he said. Regarding Centre bridging State’s revenue deficit of about Rs.16,000 crore this year, he said the exact amount was being worked out.
Replying to a question on State’s finances, Advisor (Communications) Andhra Pradesh government, Parakala Prabhakar denied that Chief Minister N. Chandrababu Naidu had stated there was no money to pay salaries. He said Mr. Naidu only observed that the State could face problems in future if there was no flow of Central funds.
Principal Secretary P.V. Ramesh said an amount of Rs.750 crore as compensation for CST was expected from the Centre shortly, besides Rs.2,700 crore under the 13{+t}{+h}Finance Commission.
