The BJP on Saturday said it was in talks with angry ally Telugu Desam Party (TDP) to sort out demands over allocation of funds to Andhra Pradesh under the State Reorganisation Act.
Speaking at a press briefing, BJP State chief and Vishakapatnam MP, K. Hari Babu said meetings in Delhi between Union Finance Minister Arun Jaitley, party president Amit Shah and TDP MP and Minister of State for Science and Technology Y.S. Chowdary had resolved at least two issues in the TDP government’s list of demands.
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Payments’ schedule
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“Prime Minister Narendra Modi is fully committed to and sincere in implementing the States Reorganisation Act,” Mr. Hari Babu said.
“Issues related to additional funds to address the revenue deficit in the State have been addressed. Revenue deficit for the first year (2014-15) is not covered under the 14th Finance Commission. Under insistence of the BJP in the Rajya Sabha, the then Prime Minister (Dr. Manmohan Singh) gave an assurance. Now NDA government has paid ₹3,979.5 crore. A resolution with regard to the final balance amount is being discussed with the government of Andhra Pradesh,” he said.
“Along with this, the Centre will bear all the revenue deficit of the entire period of the 14 Finance Commission, a total of ₹22, 113 crores to be paid to Andhra Pradesh for the five year period,” the MP added.
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“Following the recommendations of the 14th Finance Commission, the class of special category State ceases to exist, but the NDA government, to bridge the funds deficit with regard to Centrally Sponsored Schemes (CSS), which is upto 30% of such schemes, will be paid out. This is being worked out and will be announced soon,” Mr. Hari Babu said.
Venkaiah’s outreach
Sources told The Hindu that on Friday, before the Finance Minister’s reply to the debate on the Union Budget in the Upper House, Chairperson Venkaiah Naidu had called a meeting with Mr. Chowdary, Mr. Jaitley and Mr. Shah as continued protests by the TDP MPs had marred House proceedings. Mr. Chowdary facilitated a telephonic conversation between Mr. Shah and Andhra Pradesh Chief Minister N. Chandrababu Naidu following which Mr. Jaitley’s speech proceeded without interruption.
Mr. Chandrababu Naidu, however, reportedly told party MPs to keep a close watch on assurances given and their delivery. Sources added that modalities for a separate railway zone for Andhra Pradesh as promised under the State Reorganisation Act was “on the verge of being resolved.”