AP special-category: Amid spar, TDP pulls out ministers from Center
In what might signal the beginning of an intense battle, the Telugu Desam Party (TDP) has decided to pull out both of its ministers from the Central NDA government. Since 2014, the two parties have been at loggerheads over Special Category Status (SCS) to Andhra Pradesh: though the BJP has offered other sops, Andhra CM Chandrababu Naidu is adamant about receiving SCS. Here's more.
What is SCS?
SCS was awarded by the National Development Council to disadvantaged regions. Factors considered include difficult terrain and infrastructural backwardness. These states got 90% funds for centrally-sponsored schemes. But the 14th Finance Commission "constitutionally" ruled out SCS anymore. Instead, divisible pool to all states was increased from 32% to 42%. Devolution includes variables like "forest cover," which could benefit the northeast previously under SCS.
Why is AP demanding SCS?
Under the AP Reorganisation Act, 2014, as its capital Hyderabad moved to the new Telangana, AP was assured SCS due to the resultant revenue loss. Former PM Manmohan Singh had said that SCS would be "extended to AP's successor state...for a period of five years."
What has happened now?
Yesterday, FinMin Arun Jaitley ruled out SCS for AP, saying it's now restricted to northeastern and Himalayan states. However, agreeing that AP is suffering, he assured the Center would provide "monetary equivalent" to AP; thus, it would give 90% funds to all its programs. Rs. 4,000cr has also been granted for revenue deficit, he said, adding AP would get special package, just not SCS.
What is the TDP planning now?
An angry TDP has asked its two ministers in the NDA government, Aviation minister Ashok Gajapati Raju and Science and Technology MOS YS Chowdhury, to quit. Naidu said he had called the PM to inform him about the move, but he wasn't available. Whether TDP remains in NDA will depend on whether the Center accepts its demands now, he added.
Does the BJP have anything to fear?
The BJP enjoys majority in both Houses, so TDP pulling out its ministers won't affect the NDA government. But its two ministers in the Naidu government (Health Minister Kamineni Srinivas and Endowments Minister P Manikyala Rao) will have to quit if TDP separates from BJP. On the other hand, Congress President Rahul Gandhi has promised SCS for AP "after coming to power in 2019."
And how does it impact the TDP?
Meanwhile, TDP is facing extreme pressure ahead of state and national elections. Opposition parties are blaming it for not ensuring SCS despite being partners at the Center. Main rival YSR Congress, which won eight seats in 2014, has made SCS a major election issue. But a breakup with the BJP won't directly hurt the Naidu government, as TDP won 102 of 175 assembly constituencies.
How are others reacting?
Jagan Mohan Reddy, YSR Congress chief, has threatened that his party MPs will resign from parliament on April 6, the last day of the budget session, if SCS isn't granted to AP till then. The BJP government's next move will decide what happens.
