Naidu’s Three Demands To The Center

It is more or less confirmed that the central government is keen on granting a special package rather than special category status to the State. The announcement may happen after Prime Minister Narendra Modi returns from his trip to Vietnam and China. Media reports suggest that the State could get an additional assistance of Rs. 6,000 crore to Rs. 7,000 crore this year.

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This is in the form of Central grants during the current fiscal year, basically for the approved externally aided projects as well as the centrally sponsored schemes. The state is keen on three issues. The first one is that 90 per cent central grant in all the centrally sponsored schemes like National Health Mission.

The second one is that converting 90 percent of loans to be raised for Externally Aided Projects (EAP) as a central grant. The state wants the center borrow from the external agencies such as World Bank, JICA, Asian Development Bank etc., and release 90 percent of the amount as a grant to the State. With that, AP’s FRBM limits will not be affected. The third demand is that extending 15 per cent additional depreciation allowance and 15 per cent additional capital allowance to all the 13 districts instead of seven districts. It will help a profit making industry in the State to avail itself of 30 per cent tax exemption.