I had earlier participated in a discussion on this issue. Instead of giving a general reply, I will try to give specific information on this issue.
Special Category status is granted to some regions (not necessarily states) that have historically been at a disadvantage compared with the rest of the country. This decision was taken by the National Development Council (NDC), a body of the earlier Planning Commission, and was based on various parameters which are indicated below:-
1. Hilly and difficult terrain
2. Low population density
3. Low resource base
3. Strategic location along the borders of the country
4. Economic and infrastructure backwardness
5. Non-viable nature of the state's finances; and
6. A sizable share of tribal population in the state
At present eleven states have been given special status. These are: At present, there are eleven states have been Special Status. These are: Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand. The next state in line to get Special Status is Orissa.
If Special Status is granted, the state gets various advantages like:
Preferential treatment in getting central funds assistance
Concession on excise duty to attract industries to the state
Availing the benefit of debt swapping and debt relief schemes
Tax breaks to attract investment, etc.
Now, why Andhra Pradesh has not got Special Status? The answer must be clear. It does not satisfy most of the parameters mentioned above. The administration does not run on emotions, illogical promises, rather it runs on pre-defined parameters and ground-level realities.
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