Andhra Pradesh Demands Special Category Status (SCS)
History of the Dispute
The Andhra Pradesh Reorganisation Act of 2014 divided the state into two, but did not grant SCS to the remaining Andhra Pradesh.
In 2014, then Prime Minister Manmohan Singh promised SCS for five years, but the new NDA government under Modi did not follow through.
The Centre argued that Andhra Pradesh did not qualify for SCS due to norms and the dissolution of the Planning Commission.
What is SCS?
Introduced in 1969, SCS provides special grants and benefits to states with socioeconomic issues and geographical disadvantages.
It is currently enjoyed by 11 states including Arunachal Pradesh, Assam, and Meghalaya.
Why Doesn't Andhra Pradesh Qualify?
The 14th Finance Commission did away with SCS and offered general category status to all states.
Andhra Pradesh doesn't meet the strict criteria for SCS, such as having a tribal majority or hilly terrain.
Special Package Offered Instead
The Centre offered Andhra Pradesh a special package (SP) including funding for the Polavaram irrigation project and tax breaks.
This was seen as a betrayal by the opposition who accused the then-CM Chandrababu Naidu of succumbing to pressure.
Can Andhra Pradesh Still Get SCS?
The 15th Finance Commission chairman said the Centre can decide on granting SCS.
The current NDA government, reliant on Andhra Pradesh MPs, might be more receptive to the demand.
Why is SCS Back in Focus?
Andhra Pradesh faces a revenue deficit and stalled development projects.
With the TDP back in the NDA fold, there's hope that SCS can be achieved to aid the state's development.
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