According to sources Andhra Pradesh state government has convinced the Centre to its reasonable demands. The Union Government has conceded to fill the AP's deficit budget and implement the promises it made in AP Reorganization Act 2014.
Meanwhile five days after the protests of Andhra Pradesh MPs, particularly from TDP, and CM Chandrababu Naidu's repeated statements, BJP-led government agreed to immediately release the financial assistance for the 10 months in 2014-15 owing to the recommendations of 14th Finance Commission.
Moreover in lieu of the Special Category Status,
Jaitley agreed to give financial assistance to AP. It's reliably learnt that the
Special Package funds would be adjusted towards the gap in funds for the
Externally Aided Projects (EAPs). Apart from these, the Union Government has
also agreed to set up the Petro Chemical Complex in AP. In its latest promise,
the Centre has also agreed to build Integrated Steel Plant in Kadapa based on
natural iron ore available in the region.
