Centre mulls new Act on special status to AP

Centre mulls new Act on special status to AP
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Faced with legal and political implications in implementing the assurance of granting special status category to Andhra Pradesh, the Centre is likely to bring in a new legislation which would be applicable only for Andhra Pradesh.

Hyderabad: Faced with legal and political implications in implementing the assurance of granting special status category to Andhra Pradesh, the Centre is likely to bring in a new legislation which would be applicable only for Andhra Pradesh. The new legislation will be aimed at providing “Special disbursement” to the residuary state. An executive order to the effect would be issued by the centre according to a senior official who attended the meeting on special status category that was held here on Wednesday.
Union Ministers from AP, Ashok Gajapati Raju and  Sujana Chowdary, with Commerce and Industry Minister  Nirmala Sitharaman in New Delhi on Wednesday
According to sources, the process, however, is not very easy and the government is of the opinion that according special status category to AP has certain legal hurdles. It is seeking a way to implement the promise made by the then PM. Sources told The Hans India that once the modalities of the special disbursement scheme are finalised, the Centre would give 90 per cent funds as grant and 10 per cent as loan. It will then become easy for them to help the state in industrial promotion.

A final shape to the proposals would take at least another three to four months and implementation would be only after the BJP government introduces the budget for the year 2015-16. This is said to be the broad decision that was arrived at the meeting held wherein Union Minsiters Ashok Gajapati Raju and Sujana Chowdary had with Nirmala Sitharaman in New Delhi on Wednesday.

Raju and Chowdary told the media later that the meeting was only exploratory in nature and things would become clear only after another three or four round of meetings. They said there were many issues that need to be discussed in depth before arriving at any conclusion. They, however, exuded confidence that the Centre would do everything to implement all the promises that were made in the AP State Re-Organisation Act 2014 which includes tax incentives and to help meet the revenue deficit.

Asked if the issue of funds for construction of new capital city figured in the meeting, they said it did not figure as the state government was yet to finalise its report on how much the new capital city would cost. The Centre would examine the issue only after it received the report from the state government, they added.

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