Planning Commission had just delivered a shocker to the new Andhra Pradesh. The commission made it clear that the state does not meet the National Development Council criteria for special category state. The criteria include hilly and difficult terrain; low population density and or sizeable share of tribal population; strategic location along borders with neighbouring countries; economic and infrastructure backwardness and non-viable nature of state finances. But Seema Andhra does not meet the criteria.
Usually Center assists a state 30% by grants (loans with out interests) and 70% by loans. But under Special Category status, Center assists a state with 90% grants and 10% loans.
It is known that previous Prime Minister Manmohan Singh made an announcement of 5 years Special status to Andhra Pradesh in Rajya Sabha during the state bifurcation. Later on BJP in its manifesto has promised 10 years of Special status to the state. We have currently 11 states that have special category status in the country and we will have to see how Modi lead BJP will keep its promise for the newly divided state Andhra Pradesh.
