Andhra Pradesh wants Special category Status Why


Andhra sought special category status, since it would lose a significant amount of revenue as a result of Hyderabad going to Telangana.
The benefits that a state gets under the provision of being a ‘special state’ are –
· Preferential treatment in getting central funds assistance
· Concession on excise duty to attract industries to the state
· A significant 30 per cent of the Centre’s gross budget goes to the special category states
· These states can avail the benefit of debt swapping and debt relief schemes
· In the case of centrally sponsored schemes and external aid, special category states get
it in the ratio of 90 per cent grants and 10 per cent loans, while other states get 30 per
cent of their funds as grants.
· Tax breaks to attract investment

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