PM MODI 3.0: From 2014 until now, the Modi government has consistently refused to grant “Special State Status” to Andhra Pradesh. However, the political landscape has shifted, and what was once considered a burden has now become a compulsion. With Chandrababu Naidu rejoining the NDA, conceding to his demands may become inevitable for Modi.
PM MODI 3.0: Why does Andhra Pradesh Demand Special Status
Andhra Pradesh has been demanding Special State Status for the past decade, a plea that the central government has repeatedly ignored. The demand, often dismissed as baseless, was a significant factor in Chandrababu Naidu’s departure from the NDA. Now, his re-entry into the alliance presents a unique opportunity to press this issue.
Political Dynamics and the Finance Commission
The Modi government previously postponed the issue, citing recommendations from the Finance Commission and downplaying it as a mere formality. However, with Naidu’s strategic position in the NDA, the government may be forced to reconsider. Naidu’s return to the fold might compel the government to fulfill this long-standing demand to ensure political stability.
Criteria for Special State Status
Special State Status, although not provided for in the Indian Constitution, was recommended by the Fifth Finance Commission in 1969 to aid the development of underprivileged states. Factors considered included hilly terrain, low population density, significant tribal populations, border security concerns, and economic conditions.
Abolishment of Special State Status by the 14th Finance Commission
Over the years, the central government granted Special Status to several states. However, based on the 14th Finance Commission’s recommendations, this provision was abolished. The commission advocated for increased tax devolution from 32 percent to 42 percent to reduce disparities among states. For states with special status, the central government covers 90% of the costs for centrally sponsored schemes, compared to 60% or 75% for other states.
Demands from Andhra Pradesh and Bihar
Both Andhra Pradesh and Bihar have sought Special State Status. Bihar, with its economic challenges, has made a similar plea. Andhra Pradesh’s demand stems from the bifurcation in 2014, which led to the creation of Telangana. The loss of Hyderabad, the state’s most developed city, significantly impacted Andhra Pradesh’s revenue.
Political Developments Post-Bifurcation
Following the bifurcation, the central government promised Andhra Pradesh special status to mitigate economic losses. However, the BJP’s rise to power in 2014, with Naidu as Andhra Pradesh’s Chief Minister until 2019, saw this promise unfulfilled. From 2019 to 2024, YS Jagan Mohan Reddy’s tenure also witnessed appeals to the Center for special status, all in vain.
Current Political Scenario
The 2024 election results have created a unique scenario where the BJP, lacking a majority, relies on Naidu’s TDP to form the government. This dependency could compel the Modi administration to grant Special Category Status (SCS) to Andhra Pradesh. The Congress has pledged to grant SCS if it comes to power, adding pressure on the BJP. However, granting SCS to Andhra Pradesh while excluding states like Bihar and Odisha will pose significant challenges.
The next five years will be critical for the Modi government. With Chandrababu Naidu back in the NDA, the demand for Special State Status for Andhra Pradesh could take center stage. How the government navigates this challenge remains to be seen.
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