Special Package: A Riddle Wrapped in Mystery Inside Enigma

In a significant announcement, The Union Finance Ministry said though a special state status could not be given mainly due to the objections raised by the 14th Finance Commission, Andhra Pradesh would be given equivalent advantage through externally aided project. This equivalent advantage would be for a period of five years ie., 2020.

Andhra Pradesh would be given equivalent advantage through externally aided project. This equivalent advantage would be for a period of five years ie., 2020.

Giving details of the special package, Union Finance Minister Arun Jaitley said helping Andhra Pradesh would be a continuous process and that the state would need hand-holding as the division of the state was done in an arbitrary manner.

He said the state has already been given Rs 3975 crore to address revenue deficit and the balance amount would be given in installments. Similarly, Rs 2050 crore have been given for the capital construction and Rs 1050 crore for backward area development. Similarly, 20 institutions would be set up as per the provisions of the AP Reorganisation Act.

On the issue of Railway Zone, the minister said a decision would be taken soon by the Railway Ministry. On the Steel Plant in Kadapa, he said a feasibility report would be studied and a decision would be taken. As for the tax incentives sought by the State Government, he said the Central Board of Direct Taxes would take a decision.

The Finance Minister said Polavaram project’s irrigation component has been declared a national project and its funding would be met by the Centre. He said the details of the package would be uploaded in the finance ministry’s website on Thursday.

On the issue of Railway Zone, the minister said a decision would be taken soon by the Railway Ministry. On the Steel Plant in Kadapa, he said a feasibility report would be studied and a decision would be taken. As for the tax incentives sought by the State Government, he said the Central Board of Direct Taxes would take a decision.

Union Minister M Venkaiah Naidu said the Centre would help Andhra Pradesh, as long as the state needs hand-holding. The Centre has given Rs 64000 crore through the Ministry of Surface Transport to build national highways in the state and the petroleum ministry will give Rs 52000 crore for petroleum industry development.