AP CM urges Centre to set up High Power Committee to resolve outstanding matters between sibling states

It may be recalled that several issues including the division of assets and state level enterprises, river waters are not yet conclusively settled between the two states

Andhra Pradesh chief minister N Chandrababu Naidu has requested Prime Minister Narendra Modi to constitute a high power committee to facilitate early and amiable resolution of all outstanding matters related to the AP Reorganisation Act, 2014.

"The people of Andhra Pradesh deserve an environment of progress and development without avoidable tensions arising from the residual matters relating to the Reorganisation Act," Naidu said in his 13 page letter which he personally handed over to Prime Minister Modi in Delhi on Tuesday.

The chief minister's request for the constitution of high power committee comes within the provision of the Act, which authorises the Centre to intervene and give its decision on any particular matter if the two sibling states fail to resolve the same within a year from the date of bifurcation.

It may be recalled that several issues including the division of assets and state level enterprises, river waters and employees are not yet conclusively settled between the two states.

Recent developments including the cash-for-vote case filed against the members of the Naidu's party by the Telangana government only widened the rift between the two states. AP government also wrote a letter to the Centre objecting to the construction of certain irrigation projects on upstream of Krishna river in Mahabubnagar district by the sibling state.

"I request your pro active support in resolving the outstanding unresolved issues and fulfilling the commitments made in the AP Reorganisation Act and assurances made in the Parliament, which could strengthen the confidence of the people in our government," Naidu said.

Tax exemptions for industries in capital region

Naidu also requested specific tax incentives to industries and other economic activities in the capital city region. These include 100 per cent excise duty exemption for a period of 10 years from the date of commencement of production, 100 per cent Income Tax exemption for 5 years and thereafter 30 per cent exemption to industries and 25 per cent to other companies.

The chief minister also requested the Centre to approve an annual grant of Rs 1,000 crore for the next five years to develop industrial townships, estates and parks to initially incentivise the establishment of green-field manufacturing units.