Center's package upsets AP Govt
HYDERABAD: Almost eight months after division of united Andhra Pradesh, the Central government on Wednesday announced a special package to the residuary State of Andhra Pradesh and tax incentives for it as well as Telangana State.
However, much to the chagrin of the Andhra Pradesh government, the package is far short of 'special category status' and other boons promised by the Centre and offered in the AP Reorganisation Act-2014.
The Union Finance Ministry, in a statement late in the evening, said, 'Union Finance Minister announced Special Development Package to Andhra Pradesh and tax incentives to successor States. Tax incentives will encourage industrialists to come and invest in Andhra Pradesh and Telangana State.'
It reiterated that in respect of Section 46(2) and Section 46(3) of the AP Reorganisation Act, the Union government is committed to support Andhra Pradesh by providing special development package to backward areas and Rayalaseema and North coastal region of the State.
As per the package, `350 crore (`50 crore for each district) may be provided for the seven backward districts in Andhra Pradesh (Rayalaseema and North Andhra) during 2014-15 for development activities.
Besides this, an inter-ministerial joint committee, constituted by the Ministry of Home Affairs, is also taking stock of the situation to make recommendations to bridge the resource gap in Andhra Pradesh. However, temporary support of `500 crore for the current financial year will be provided to the State, pending recommendations.
News Posted: 6 February, 2015
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