Will Andhra Pradesh Get Special Category Status?

June 11, 2024

Since the 2024 Lok Sabha elections, there has been a strong push for Andhra Pradesh to be given Special Category Status (SCS). Even though the Andhra Pradesh Reorganisation Act, 2014, which split the state into Andhra Pradesh and Telangana, didn’t say anything about SCS, the argument has continued. The statement was made by Prime Minister Manmohan Singh in 2014, but it wasn’t given as much attention by Prime Minister Narendra Modi’s government because later assessments found that Andhra wasn’t meeting the requirements for such status.

Historical Background and Shift in SCS Eligibility Criteria

Following the Fifth Finance Commission’s suggestions, the idea of SCS was created in 1969, mainly to help states that were having trouble with geography and socioeconomic issues. Later, though, it was decided that Andhra Pradesh did not meet the requirements because it had a lot of native people and difficult terrain, so it was not included. The 14th Finance Commission’s review of the SCS provision and the dissolution of the Planning Commission in 2014 made things even more complicated. The benefits of the SCS provision were moved into a more general framework, and instead, special packages were suggested.

Introduction of Special Package Instead of SCS

If Andhra Pradesh’s request for SCS was turned down, the Central Government gave the state a special package. This was started by Chandrababu Naidu, the first Chief Minister of the remaining state from the Telugu Desam Party (TDP). The package included reduced taxes, special help, and full funds for the Polavaram irrigation project. Andhra Pradesh’s interests were seen as betrayed when the special package over SCS was accepted, which caused a lot of political fallout and the TDP’s ultimate departure from the NDA alliance in 2018.

Possible Renewal of SCS for Andhra Pradesh

Recent developments show that the SCS conversation for Andhra Pradesh might start up again. With ongoing financial problems, a lot of debt, and slow growth, especially in the form of the stopped building of Amaravati’s capital city, the SCS could help a lot. The 15th Finance Commission played a very important part because it never said that Andhra Pradesh would not get SCS, which showed that the decision lies with the Central Government.

Current Political Influence and SCS Demand

Since the Central Government depends on Andhra MPs, the return of TDP to the NDA coalition gives those pushing for SCS a strategic edge, especially when the coalition doesn’t have a strong majority. People think that this new push for SCS is very important for the state’s general economic and infrastructure growth. This complicated web of politics, policy choices, and regional needs shows the story behind Andhra Pradesh’s Special Category Status. It includes both old problems and new political issues related to money.

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