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Why Central government is hesitating to give Special Status to Andhra Pradesh

Date: 31 Jul 2016   Posted By: krishna     Group: Opinion About    Category: Miscellaneous   

Two days ago, there was a discussion in Rajya Sabha about granting Special Status to the State of Andhra Pradesh. On behalf of the Government,the Finance minister clarified that we are helping the state of Andhra Pradesh in all ways possible . But, he is not ready to accept the special status .
In 2014, the then Central government has divided the State of Andhra Pradesh into two States Andhra Pradesh and Telangana. Hyderabad has gone to Telangana, and Andhra Pradesh has no Capital and it is in severe Revenue deficit.
Why Central government is hesitating to give Special Status to Andhra pradesh?
Awaiting response.

Want to know how state division is handled by the government? Interested in knowing why government is hesitating to give special status to Andhra Pradesh? Check out responses from experts here.

Author: Venkiteswaran.    01 Aug 2016      Member Level: Diamond     Points : 2  (Rs 2)    Voting Score: 0

The lack of readiness of central government in not giving Andhra Pradesh special status is due to many reasons( as I guess).

1. If AP is given, then there will be pressure and agitation for getting similar status from other states. It will open a Pandora's box.

2. The ruling party may wait for further political signals from AP and other states to secure its weak position in Rajya Sabha. There may be some indirect background quid pro quo suggestions.

3. Technicalities: AP may not strictly come under the existing eligibility for special status. If any deviation or exemptions given for AP, then that will open floodgates. Special status also affects the revenue for central government at the same time have to give funds to the state. That is why central government promise all support, but not special status.

4. Special status may make the state lazy and may not enthuse to come with customised developmental plans and projects.

Author: Partha Kansabanik    02 Aug 2016      Member Level: Diamond     Points : 3  (Rs 3)    Voting Score: 0

Before going to discuss the main question, let us first understand 'special status' given to a state. This so-called 'special status' is not a very coveted thing. This status helps a state by deferring its obligation of payment of loan and aid. It also waives off the interest in some cases.
Such grant of 'special status' to a state may cause various problems. Many states would start demanding this status on various excuses. The Central Government would not get back its due. The development projects would be stalled. Moreover, the states which pay back the loans and aids in a proper manner, would feel deprived.
The economists and administrators don't support grant of 'special status' to the states, except under extreme natural or man-made calamity.

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