1. Special Category Status

Special class status was guaranteed for a long time in Parliament by the PM and affirmed by UPA bureau. BJP felt free to said that they would additionally expand the status by 5 years once they are in power.Special classification states get portions as 90% awards and 10% loans,Concession on extract obligation and so forth

2. Special Package/Incentive

The parliament and UPA cabinet passed the implementation of a special package for the 7 backward districts for the state on the lines of other packages implemented in the past in Bundelkhand, MP, Orissa.15% additional depreciation on new plant and machinery setup in backward region. 15% investment allowance for industries setup in backward region. This is applicable for 5 years (2015-2020). The above allowance is futile, as the industry will only benefit once it becomes profitable

3. Revenue Deficit in 2014-15

Parliament and BJP guaranteed to satisfy the resource gap in first year budget before the fourteenth Finance commission suggestions were endorsed. The state has an income shortage of Rs 9,736 crore till end of Jan 2015. The State asked for a measure of Rs 15,691 crore. There was no allocation made in the 2014-15 union budget. Apparently Rs 50 cr each for 7 backward districts was approved in Feb 2015 for the year 2014-15 but in the budget 2015-16 it wasn’t even mention about the allocation. Moreover, the Backward Regions Grant Fund (BRGF) scheme is now discontinued and state has to bear this burden

4. Polavaram Project

This multi-purpose dam on godavari waterway would inundate 7.2 lakh sections of land and give 80+ TMC water for the drinking purposes and industry purposes. In 2009 National water commission affirmed the venture at an expected cost of Rs 16,010 crore which has soar to Rs 20,000 cr by 2015. Since 2004 the state government has spent Rs 5,700 crore on the task. AP Reorganization act proclaimed Polavaram as a national venture. 50% of the canal work has been completed till date and the reservoir work has to start. Here, an ordinance was passed to merge villages from 7 mandals of Telangana to Andhra Pradesh before the appointed day(June 2nd 2014). ‘Polavaram Project Authority’ was setup and Dinesh Kumar was appointed as CEO in Dec 2014. After all of it no commitment has been made on the funds spent by the state government.


For more information, visit http://ggiandhra.com/the-hunt-for-the-special-category-status-chapter-4/

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