Lok Sabha Question No. 287 (STARRED), answered on 2023-03-21
Subject: Special Category Status to Andhra Pradesh
Ministry: HOME AFFAIRS
Asked by: Lavu Sri Krishna Devarayalu, Balashowry Vallabbhaneni

## GOVERNMENT OF INDIA MINISTRY OF HOME AFFAIRS

## LOK SABHA STARRED QUESTION NO. *287

TO BE ANSWERED ON THE 21 ST  MARCH, 2023/ PHALGUNA 30, 1944 (SAKA)

SPECIAL CATEGORY STATUS TO ANDHRA PRADESH

*287.     SHRI LAVU SRI KRISHNA DEVARAYALU: SHRI BALASHOWRY VALLABHANENI:

Will the Minister of HOME AFFAIRS be pleased to state:

(a)  the  criteria  adopted  for  granting  Special  Category  Status  (SCS)  to States  and  the  reasons  for  not  granting  SCS  to  the  State  of  Andhra Pradesh;

(b) whether the Government has promised to grant SCS to Andhra Pradesh in light of the financial burden faced by the State after bifurcation in 2014;

(c) if so, the details thereof along with the Union Government assurances completed  and  those  which  are  pending  as  per  the  Andhra  Pradesh Reorganization Act, 2014 along with the reasons for delay;

(d) whether it is true that the Government has agreed to fund all externally aided projects in Andhra Pradesh in the 90:10 ratio;

(e) if so, the details thereof and the steps taken by the Government in this regard;

(f)  whether the Union Government has received any communication from the  State  Government  of  Andhra  Pradesh  requesting  SCS  for  Andhra Pradesh during the last six months; and

(g)  if  so,  the  details  thereof  and  the  time  by  which  SCS  is  likely  to  be granted to Andhra Pradesh?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS (SHRI NITYANAND RAI)

(a) to (g):    A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 287* FOR ANSWER ON 21.03.2023

(a) to (g): The  Government  has  received  requests  for  according  Special Category  Status  from  certain  States  including  Andhra  Pradesh.  Special Category  Status  for  plan  assistance  was  granted  in  the  past  by  the National Development Council to the States, that are characterized by a number  of  features  necessitating  special  consideration.  These  features included:  (i)  hilly  and  difficult  terrain  (ii)  low  population  density  and/or sizeable  share  of  tribal  population  (iii)  strategic  location  along  borders with neighbouring countries (iv) economic and infrastructural backwardness  and  (v) non-viable nature of State finances. Special Category  Status  was  granted  based  on  an  integrated  consideration  of these criteria.

The Fourteenth Finance Commission (FFC) had not made any distinction between  General  Category  States  and  Special  Category  States  in  the horizontal distribution of shareable taxes amongst the States. As per the recommendations  of  the  FFC,  the  Union  Government  had  decided  to increase the share of net shareable taxes to the States from 32% earlier to 42%  for  the  period  2015-20.  The  same  has  also  been  retained  by  the Fifteenth Finance Commission at 41% (1% adjusted on account of creation of UT of J&K) for the period 2020-21 & 2021-26. The objective has been to

fill  the  resource  gap  of  each  State  to  the  extent  possible  through  tax devolution. Also, Post-Devolution Revenue  Deficit Grants have  been provided to States where devolution alone could not cover the assessed gap.

However, the Central Government has agreed to give special assistance to the State of Andhra Pradesh to make up for the additional Central share the State might have received during 2015-16 to 2019-20, if the funding of Centrally Sponsored Schemes would have been shared at the ratio of 90:10 between  the  Centre  and  the  State.  The  special  assistance  is  to  be provided by way of repayment of loan and interest for the Externally Aided Projects  (EAPs)  signed  and  disbursed  during  2015-16  to  2019-20  by  the State. Accordingly, based on the request received from the State Government of Andhra Pradesh, the Central Government has released an amount  of  Rs.  15.81  crore  in  2018-19  towards  repayments  of  interest liabilities  of  EAPs  signed  and  disbursed  by  the  State  during  2015-16  to 2017-18.

A number of provisions of Andhra Pradesh Reorganisation (APR) Act, 2014 have been implemented and the remaining provisions of the APR Act, 2014 are at various stages of implementation. Some of the provisions relating to infrastructure  projects  and  educational  institutions  have  long  gestation period for which a time period of ten years has been prescribed in the Act.

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