AP Govt Settles for Special Package, Hopes For an Early Announcement

New Delhi: If the Union Minister and TDP leader Sujana Chowdary’s utterances are any indications, then AP is all set to get a financial package with benefits equal to what Special Category Status (SCS) gives. Chowdary has made the AP government’s stand clear that it would readily accept any special financial package provided all benefits accrued for Special Category Status are included.

He told mediapersons that the TDP is expecting the announcement of a special package for the AP from the Centre. He further said that AP can’t achieve the desired growth without the benefits of SCS being guaranteed. Special category status will ensure 90 per cent of finances are borne by the Central government.

“Since the Centre is saying that it cannot grant special status in the wake of 14th Finance Commission restrictions, we will accept special package if it sanctions 90 per cent finances for all the projects,” he said.

Chowdary said: “There are good signs this time from the Centre over granting of a special package for AP. TDP is also hopeful of good days ahead for the State with the package that is expected to be announced in another week’s time.”

AP Chief Minister N Chandrababu Naidu is also expected to visit New Delhi for negotiations on the proposed special package only if accorded the same benefits like SCS for which all political parties and the AP government have been insisting on.

“Once we get the clarity from the Centre on the financial package, then our party will decide on the future course of action. What we want is to get a package that gives the same benefits as special status,” said Chowdary.

Centre to Release Rs 800 cr, not Rs1,976cr

The Centre is releasing Rs 800 crore as against the promised financial assistance of Rs1,976 crore to Andhra Pradesh. Rs 1,176 crore was planned for bridging the revenue gap for 2014-15 financial year, Rs 350 crore for development of backward districts and Rs 450 crore for construction of Amaravati capital city. But, it’s learnt that the Centre is releasing only Rs 800 crore to AP.

According to a letter to AP Chief Secretary, funds wouldn’t be released as promised earlier citing the reasons that AP needs to fulfill certain norms. The Union Finance Ministry is believed to have asked AP for submitting expenditure bills and also found several gaps in the funds utilization as well.

AP May Go for ‘Diaspora Bonds’

AP Chief Minister N Chandrababu Naidu is planning to raise funds through Diaspora Bonds. The state government will raise funds from Andhra non-Resident Indians (NRIs). In addition to this, AP Government is also exploring ways to borrow money with an option of prepayment. The AP finance department is planning to raise funds by Diaspora Bonds under Masala bonds, under which Indian entities can raise money from overseas markets in rupee, not foreign currency.