High profile sources in the Union Government informed APHerald.com that Central government is mulling over the Special Status promised to Andhra Pradesh during the state bifurcation. Earlier Planning Commission had said that Andhra Pradesh do not qualify for the granting of Special Status as per the rules. The criteria include hilly and difficult terrain; low population density and or sizeable share of tribal population; strategic location along borders with neighbouring countries; economic and infrastructure backwardness and non-viable nature of state finances.
Center then formed a six member party to study possibilities of according Special Status to the state.The committee is going to submit its final report today or tomorrow. They will be holding a review meeting on August 25 and the possibility of the announcement on the special package is high after that. A Minister from Andhra Pradesh said the announcement of the Special Status will come by the end of this month.
Usually Center assists a state 30% by grants (loans with out interests) and 70% by loans. But under Special Category status, Center assists a state with 90% grants and 10% loans. It is known that previous Prime Minister Manmohan Singh made an announcement of 5 years Special status to Andhra Pradesh in Rajya Sabha during the state bifurcation. BJP has committed to 10 years Special Status to AP in its manifesto. Telugu Desam Party led Andhra Pradesh government is demanding the Special Status for 15 years.
