Capital report triggers doubt on Special Status to Andhra Pradesh

In its voluminous report submitted to the Union home ministry last week, the Committee said it couldn’t be automatically assumed that the commitment of conferment of Special Category status will be activated immediately.

The Committee also comes to a conclusion that Andhra Pradesh cannot be declared a Special Category state before the 14th Finance Commission finalises its report.

“The statement of the former Prime Minister in the Rajya Sabha on 20th February 2014, is not a commitment made in the Act. It will need to be ratified by the present administration. Without a doubt, granting of Special Category status is justified, desirable and would go a very long way in making the fiscal position of Andhra Pradesh compatible with present challenges before the state, including importantly the resources necessary to create a Capital,” the report said.

The Committee also contended that AP might get some sympathy, but is unlikely to generate “affirmative support” from the states, which are also demanding the status.

“The Central government will need to affirm its approval for the status and will then have to consult the National Development Council to ratify such. There is a political risk that such ratification will not be straightforward, given that several states other than Telangana have also demanded Special Category status,” the report said.

The observations made by the Capital Committee are significant given the fact that the NDA government had indicated more than once that it will implement all the commitments made by the previous UPA government with regards to Andhra Pradesh.