To appease TDP, Jaitley speaks of special aid for Andhra

Amid severe strain in TDP-BJP ties over absence of any special allocation for Andhra Pradesh in the Central budget, Finance Minister Arun Jaitley on Saturday said issues concerning the state  post bifurcation was being dealt separately.

"The budget is not the place where such issues are dealt with. Hence, it is not there. In fact, the Centre's assistance for Andhra Pradesh (following the bifurcation of the state into Telangana and Andhra Pradesh) is being handled separately," Jaitley said in TV interviews on the budget.

Responding to questions on the TDP's threat to walk out of the NDA, the finance minister said, "In the last three years, as far as Andhra Pradesh is concerned, every commitment we've made, I stand by every word. We have given several institutions to the state which are in various stages. Polavaram is being supported by NABARD. An amount equal to Special Status is being given in the form of EAPs."

Jaitley said, "We have done a fair bit for Andhra Pradesh and we will do whatever else we can as we believe Andhra Pradesh is at disadvantage because of the state's division." Last month, Andhra Pradesh Chief Minister N Chandrababu Naidu  rushed a letter to Jaitley reminding him of the "unfulfilled promises" made in State Reorganisation Act.
He had suggested that a special dispensation amount be provided to Andhra Pradesh  from NABARD for specified projects, instead of loans from external agencies. Six projects required a total funding of Rs 16,725 crore.

State blamed

Central officials, for their part, said  the state government had not submitted the mandatory utilisation certificates (UCs) for funds released by the Centre under various schemes, resulting in freezing of over Rs 800 crore in additional grants.

On January 18, Naidu sounded hopeful after a meeting with Jaitley and said that the Centre had responded positively to the state government's request for Rs 16,000 crore from NABARD, HUDCO and commercial banks, instead of EAP (externally-aided projects).

"The state was to be reimbursed Rs 16,000 crore of revenue deficit, but till date, only Rs 4,000 crore has been released. Recently, Rs 7,500 crore was promised. I reminded the Finance Minister of the same," he had said and added that the matter was  before  the PMO.

TDP leaders' grouse is that, barring a sum of Rs 400 crore allocated for the Kotipalli-Narasapuram railway line in the two Godavari districts, and roughly Rs 250 crore for 11 central educational institutions in the state, including the IIT and IIM sanctioned during the past four years, there were no other specific allocations in the Budget.