Seeking to put a lid on the debate in Andhra Pradesh, the Government today said the system of according Special Category Status for states has gone out of vogue following the recommendations of the 14th Finance Commission.
The central government, however, has agreed to give special assistance to Andhra Pradesh for five years which would make up for the additional funds the state might have received between 2015-16 and 2019-20 in pursuance of the promise made by former Prime Minister Manmohan Singh at the time of bifurcation, an official release said.
Meanwhile, not satisfied by the financial package announced by the Centre last night, Andhra Pradesh Legislative Assembly in Hyderabad today witnessed an uproar with Opposition YSR Congress stalling proceedings over denial of special category status to the state.
On the promise of former Prime Minister to accord special category status to Andhra Pradesh, the Finance Ministry release said, "...Following the recommendations of the 14th Finance Commission, the class of special category states ceases to exist."
It further said that the additional assistance "will be in the form of central government funding for externally added projects for Andhra Pradesh signed and disbursed during these years."
Referring to the financial package announced yesterday, the ministry said: "The government of India is thus honouring and shall honour all commitments made under the AP Reorganisation Act.
The package includes full funding of Pollavaram irrigation project, tax concessions and a special assistance.
Andhra Pradesh, which financially suffered because of creation of separate state of Telangana in June 2014, will get a railway zone as also all cost incurred on the irrigation part of Polavaram project from the date it was declared a National Project on April 1, 2014, will be funded by the Centre.
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