Spl category status for Seemandhra

Prime Minister Manmohan Singh on Thursday announced a six-point development package for successor states of Andhra Pradesh, including special category status to Seemandhra.

Amid unprecedented din in the Rajya Sabha, the prime minister announced the sops to assuage the opposition parties after they moved several amendments to the bill demanding clarification from the government. Besides, many MPs also raised questions on sharing of assets, including water, power between two states.

Congress MPs formed a human chain around Manmohan Singh to protect him from protestors, including members from Seemandhra region and those belonging to the TMC and the Shiv Sena, who stormed the Well. TMC members went a step ahead as they tore down papers.

Intervening in the debate, the prime minister said special category status will be extended to the successor state (Seemandhra) of Andhra Pradesh comprising 13 districts, including the four districts of Rayalaseema and the three districts of north coastal Andhra for a period of five years. This will put the state’s finances on a firmer footing, he said.  
Rayalaseema and North Coastal Andhra Pradesh’s districts will get special developmental package on the lines of packages being provided to K-B-K (Koraput-Bolangir-Kalahandi) region in Odisha and the Bundelkhand area in Madhya Pradesh and Uttar Pradesh.
He also assured the members that tax incentives will be provided to the successor states in order to promote industrialisation and economic growth in both the states.

While reiterating that the Centre will execute Polavaram project, Singh said, “If any further amendments are needed to facilitate smooth and full Rehabilitation & Resettlement (R&R) for the Polavaram project, they will be given effect to at the earliest.”
He said the appointed day for the formation of the new state will be so fixed in relation to the notified date so as to enable preparatory work relating to personnel, finance and distribution of assets and liabilities to be completed satisfactorily.

If a resource gap is reported in the successor state of Andhra Pradesh in the very first year, especially during the period between the appointed day and the acceptance of the 14th Finance Commission recommendations by the Government of India, it will be compensated in the Regular Union Budget for 2014-15, he said.