BJP's betrayed Andhra Pradesh, TDP quitting central government: Chandrababu Naidu

AMRAVATI/NEW DELHI: Attacking the BJP government for "betraying" Andhra Pradesh, Telugu Desam Party (TDP) on Wednesday decided to pull out two of its ministers in the central government, marking the first crack in the BJP-led coalition four years after it stormed to office with a massive mandate.


TDP boss and AP chief minister Chandrababu Naidu announced that the two ministers would resign on Thursday. "We have taken the decision to pull out two TDP ministers, civil aviation minister P Ashok Gajapati Raju and Union minister of science and technology Srujana Chowdary, from the Union cabinet as all our efforts to get special category status failed. It was a last resort decision," he said.

BJP ministers in the Andhra government are also expected to put in their papers in Amaravati on Thursday morning.

In a late-night tweet, Naidu said, "I tried reaching out to the Prime Minister to inform him about our decision. But sadly, he was unavailable."



Naidu's decision came within hours of a press conference by FM Arun Jaitley, in which he said the Centre could not accommodate TDP's demands for "special category" status or tax relief for the state.

Naidu did not spell out whether TDP would also pull out of the BJP-led NDA. But his sharp attack on the Centre suggested that it only is a matter of time before the allies break up. "We may be put into trouble after pulling out of the Central government. But we took the decision keeping in view the interests of the state," he said.

"BJP demanded special category status for AP when it was in the Opposition. Now, it says special status to AP is not possible. It is wrong on the part of the Centre to say that if special status is given to AP, other states like Bihar will demand it," the CM added.

Naidu had made the "betrayal" remark twice during the day before his late evening press conference. Speaking in the assembly, he also referred to Congress chief Rahul Gandhi's support for the demand for "special category" and complained that he had not received similar backing from BJP even when it is an ally.

Naidu could wait for a few more days, perhaps the end of the budget session of Parliament before breaking off from the BJP and perhaps forging new alliances ahead of next year's general and assembly elections in the state, said TDP sources.

The walkout of TDP, which has 16 members in the Lok Sabha and another 4 in Rajya Sabha, comes at a time when there is no let-up in the muscle-flexing by restive ally Shiv Sena or the opposition which has stepped up attacks on the government. Even parties like BJD which had so far been soft on the government have joined forces with Congress-led opposition's protest in Parliament on the Nirav Modi scam. BJP still has a majority in the Lok Sabha on its own with 274 members.

The Centre appeared to have sensed that Naidu was set to get out of a partnership which had increasingly soured. In his press conference, Jaitley refuted the charge of betrayal and reaffirmed what he called a commitment to help AP, but ruled out conceding demands for "special category" for the state for reasons beyond Centre's control.

In the first public response to Naidu's increasingly dire ultimatums to press his demand for AP to be classified as a Special Category State, Jaitley said while the Centre would keep its promise to give assistance equivalent to Special Category status, the designation itself cannot be conferred because it has ceased to exist after the implementation of the recommendations of the 14th Finance Commission.

Talking to media, Jaitley denied that the Centre had backtracked on its promises. "The Centre is committed to providing advantage to Andhra Pradesh in a 90-10 ratio. I have a positive attitude towards the state as it has suffered due to bifurcation. The Centre has not once said it would not give money," he said.

"AP has suffered because of bifurcation and whatever support is required because of that (we will give)," Jaitley said, adding all issues have to be resolved within the framework of Centre-state relations.

Jaitley was also forthright in detailing the Centre's constraints in accepting AP's demands for "special category" status and tax concessions. On tax concessions, Jaitley said states like Bihar and Jharkhand had equally strong claims for similar relief.

Jaitley said the Centre was committed to help with the development of AP, but also underlined its constraints, making it clear that it has its limitations which cannot be overcome because of political pressure from the southern ally. Asked about the pullout threat, he said: "Political issue cannot increase the quantum of money because Centre has no free floating fund."

"Every state in India has the right to Central funds in the same manner. Sentiment does not decide quantum of funds, it is the constitutional award of the Finance Commission which decides on the quantum of funds that the states get," the finance minister said.

Asked about Rahul's support for the "special category" tag, Jaitley bluntly said, "I still have to follow constitutional award of the 14th Finance Commission."

The finance minister detailed steps taken by the Centre to help with the construction of AP's capital at Amaravati and also for setting up institutions. But he said Naidu's idea that the financial assistance to AP be routed through NABARD was not a good one since it will add to the Centre's fiscal deficit. "Now if NABARD gives directly to the central government, it gets added to the fiscal deficit. If it gives to the state government, it will get added to the state's fiscal deficit, and therefore reduces the borrowing capacity of the state," Jaitley said.

He explained the concern about the increase in fiscal deficit was why Centre had proposed that AP set up a special purpose vehicle but it was yet to hear from Naidu. "We are awaiting a response and hope that it will be a positive one," said Jaitley.

But Naidu's late night decision to withdraw his ministers crushed any hope the Centre possibly had entertained despite growing differences with the AP CM.

Earlier, Naidu accused the Centre of insulting the sentiments of AP by not honouring 19 key commitments, including "special category" designation for the state.

Speaking in the assembly, Naidu expressed unhappiness over "step-motherly" attitude of the Narendra Modi government towards the state. Recalling PM Modi's remarks that Congress successfully delivered the baby (Telangana), but killed the mother, Naidu said the Centre is now stifling Andhra Pradesh by choking funds flow. "I visited Delhi 29 times, requesting the PM to hand-hold Andhra Pradesh, but to no avail. The funds flow for the new capital city and Polavaram project are meagre and promise of separate railway zone for Vizag remains unfulfilled," he said, reiterating his demand that all 19 promises in the Andhra Pradesh Bifurcation Act be honoured.