•The Andhra Pradesh Reorganisation Act, 2014, bifurcated unified Andhra Pradesh (A.P.) into two States, A.P. and Telangana.
•The Act did not mention of giving a Special Category Status to A.P.
•However, then Prime Minister Manmohan Singh had said that “SCS would be extended to Andhra Pradesh for a period of five years”.
•It is argued that A.P. does not qualify for SCS, firstly as per norms and secondly due to dissolution of Planning Commission in 2014.
•However, the Centre offered Andhra Pradesh a special package (SP).
•The SP included the recognition of the Polavaram irrigation project as a national project with full funding from the Union Government, tax concessions and special assistance.
•Debts of A.P. have shot up enormously. Most of its projects and development have come to a standstill including building for a new greenfield capital at Amaravati which is pending and needs funding.