Even as the government is releasing plans and policies envisaging accelerated industrial development in the State, it is keeping its fingers crossed over the special category status as promised by the Centre at the time of the passage of the Andhra Pradesh Reorganisation Act 2014.
States categorised under the special category status would receive central assistance in the form of 90 per cent grants and 10 per cent loans, while the ratio between grants and loans would be 30:70 in case of other States. In addition, the States which are put under the category would also enjoy tax concessions in excise and customs duties, income tax and corporate tax rates.
Given the advantages offered by the conferment of the status, the State government had pinned its hopes on the BJP-led Centre to fulfil its promise made on the floor of the Parliament so that industrialists are attracted to set up their units in the State.
Close to a year since the State was bifurcated, there has been no movement on the issue in spite of umpteen visits of Chief Minister N. Chandrababu Naidu to New Delhi.
Adding to the confusion are the frequent statements made by the Union Ministers, the latest being by Union Planning Minister Rao Inderjit Singh, which did not specify whether or not the State would get the coveted status.
Senior TDP leaders are sore that the BJP leadership appears to be in no hurry to accord the special status and that the party was looking at the political benefits that would accrue with the announcement of the status.
The recent sops announced for Bihar and West Bengal, where elections are slated in the near future, clearly reflected the political calculations that are involved in the grant of the status.
The State, according to the TDP leaders, is landed in a paradoxical situation. While the State was anxiously waiting for an announcement on the status at the earliest which could put the ruling dispensation in good stead by next elections, the Centre was willing to extend other benefits keeping the announcement of the status on hold till the next elections.
“They (the Central Ministers) are not saying no to the special category status, but are insisting on other packages. There is no clarity yet on the issue and the delay is taking a toll on the flow of investments into the State,” lamented a senior TDP leader.
