Expert group suggests three options to Centre on special category to State

VISAKHAPATNAM:  The Uttarandhra Charcha Vedika, which has been spearheading protest in Delhi as part of its ‘Rail Jana Ghosha Yatra’, on Thursday released a status report on the Centre’s assurances given to Andhra Pradesh when the AP Reorganisation Bill was passed in Parliament. The 114-page report, published by the Foundation for Democratic Reforms based on the findings by an independent group of experts, was released at Ambedkar Auditorium at AP Bhavan in New Delhi. The report detailed how the bifurcated State lost out on social, economic and infrastructural potential gains due to the Centre’s intransigence to implement the promises.

With regard to special category status (SCS), the expert group suggested three options to the Centre. They are: concessions to backward areas, extending significant tax benefits to the State beyond what was promised and identifying backward areas across the country and extending full tax benefits to them, including to those in the State. “In addition, massive infrastructural projects need to be taken up in AP with 100 per cent contribution from the Centre in a time bound manner,” the report stated. All 11 nationally important projects promised to AP should be fully established by 2024, it said. “Only `842 crore i.e. 6.63 percent of the total project cost of Rs 12,746 cr has been released by the Centre. About 93 per cent is still remaining,” it said.

On the promised development assistance to backward areas, it said, “the Centre should take steps on a priority to implement the special package for ` 24,350 crore in a time bound manner within five years.” Stating that the AP Reorganisation Act’s provisions should be liberally interpreted by the Centre to fund the capital city, the report said, “In addition to the government complex, basic infrastructure of roads, storm water drainage, flood proofing, sanitation and sewerage, drinking water, rapid connectivity and mass rapid transport system should be reg a rd e d a s e s s ent i a l infrastructure”. It said the Centre may constitute a committee of urban planning experts to identify essential facilities, review cost estimates among others based on which the Centre could extend assistance to the State.

The IGE report said after taking into account various issues, it said `8,660 crore is the resource gap and asked the Centre to take an appropriate decision. “As most companies have their corporate offices in Hyderabad, the arrears go mostly to TS, while refund is borne by both States. Net loss to AP on account of the anomaly is Rs 3,820 crore. This should be compensated by the Centre, as the anomaly was a result of flawed provisions,” it said. The report stated `16,447 cr was due from the Centre in lieu of 90 per cent in Centrally sponsored schemes. “The Externally Aided Projects is insufficient to extend this special assistance. The disbursements so far are miniscule,” it said.