For Level-Playing Field, Telangana Assembly Resolution Demands Special Category Status

Anxious to avoid a skewed investment climate that could be in place if neighboring Andhra Pradesh is assigned the special category status, Telangana assembly passed a resolution that the centre should assign the same status to Telangana if Andhra gets it.

Stating that eight of the 10 districts in Telangana were backward districts according to the Planning Commission, 85 percent of the population of Telangana comprised weaker sections including 11 percent of tribals, chief minister K Chandrasekhar Rao said Telangana has all the qualifications to be given the special state status, moving the resolution. “Our state has poor infrastructure and most of the agricultural land is dependent on rains for irrigation. Hence it should be given special category status, Telangana has all the qualifications to be given the special state status. The Centre should treat both Telangana and Andhra Pradesh on equal basis,” Chief Minister K Chandrasekhar Rao said here, moving the resolution. Leaders of other parties supported it.

Special category status would not just increase grants for states but would get them special incentives in taxes like excise. This could attract investors from neighboring states, which in the case of Andhra, would be Telangana. Andhra’s gain would be at the expense of Telangana. Telangana with it’s resolution demanded a level-playing field in the investment climate of 2 Telugu States.