‘Will fulfil provisions of A.P. Reorganisation Act’

CM conveys people’s disappointment over the Special Development Package announced by Centre

Union Finance Minister Arun Jaitley on Sunday promised Chief Minister N. Chandrababu Naidu that the Centre would fulfil all provisions of the A.P. Reorganisation Act and “work out” on pleas for bridging the State’s budget deficit and funding for the construction of the new capital.

Earlier, after the Niti Aayog meeting in New Delhi, Mr. Naidu raised the issue of implementing the assurances in the AP Reorganisation Act with Prime Minister Narendra Modi.

The Prime Minister reportedly asked the CM not to be anxious, and that Mr. Jaitley would give him clarity on the issue, sources told

The Hindu from Delhi. The State government has been repeatedly urging the Centre to meet the entire budget deficit of Rs.16,000 crore this year, grant Special Category Status and a Special Development package of Rs. 24,500 crore, apart from granting funds for the new capital.

During his meeting with the Finance Minister, Mr. Modi reminded him of the promise given by former Prime Minister Manmohan Singh on the floor of Parliament as also the statement made by Mr. Jaitley himself during the passage of the AP Reorganisation Bill in the Rajya Sabha that Seemandhra would face adverse economic impact, and that there was a need to compensate for it, sources added.

Raises package issue Mr. Naidu also conveyed the disappointment of the people of the State and intelligentsia over the recent Special Development Package announced by the Centre. He sought specific assurances on the provisions pertaining to Section 46 in the AP Reorganisation Act. Sources said the Chief Minister had reminded Mr. Jaitley that people in the State had reposed confidence in the TDP in AP and the NDA at the Centre with the hope that their problems would be redressed.

In his reply to the CM, Mr. Jaitley said every promise in the Act and assurances made on the floor of Parliament would be honoured, according to Parakala Prabhakar, Advisor (Communications) to AP Government.

‘Concessions just the beginning’ Mr. Prabhakar said the Union Finance Minister also told the CM that the concessions announced recently were just the beginning, and that the Centre would go beyond the provisions of the Act in helping AP.

Following the assurance by Mr. Jaitley, the State government is hoping that the Centre will grant special category status, which was also taken up by Mr. Naidu. Meanwhile, Mr. Naidu sought an appointment with the Prime Minister on February 10. He will showcase investment opportunities in the State during the meeting.