 bill no 256 of  2016 the andhra pradesh reorganisation (amendment) bill, 2016 byshri yv subba reddy, mpa billfurther to amend the andhra pradesh reorganisation act, 2014be it enacted by parliament in the sixty-seventh year of the republic of india as follows:—1  (1) this act may be called the andhra pradesh reorganisation (amendment) act, 2016short title and commencement(2) it shall come into force with immediate effect "part xa special category status to the successor state of andhra pradesh594a notwithstanding anything contained in any law for the time being in force, the successor state of andhra pradesh shall be deemed to have been conferred the status of special category state from the date of commencement of this act for a period of fifteen years or till it becomes a revenue-surplus state, whichever is later:special category status to the state of andhra pradeshprovided that the central government may, if it considers necessary, by order, publish in the official gazette, extend the period of special category status after the expiry of the said period of fifteen years1094b the successor state of andhra pradesh shall, by virtue of being a special category state, be provided the normal central assistance, the additional central assistance and the special central assistance according to the gadgil mukherjee formula and, in particular, the following benefits as long as the state enjoys the special category status with regard to distribution of tax revenues and grants—15special central assistance and other concessions, grants and subsidies to the state of andhra pradesh(i) concession in excise and customs duties as prescribed by the union ministry of finance to industries and units set up in the successor state of andhra pradesh on or after the commencement of this act;(ii) concessions in income tax and corporate tax rates, as determined by the union ministry of finance;20(iii) forty per cent subsidy shall be given on working capital to industries and units which are set up to expand their industries and units in the successor state of andhra pradesh on or after the commencement of this act; and25(iv) forty per cent concession to all existing industries and units set up on or after the appointed day in electricity charges for fifteen years in the successor state of andhra pradesh 94c notwithstanding anything contained in any other law for the time being in force, the fiscal responsibility and budget management limit in respect of the successor state of andhra pradesh shall be fixed at five per cent of state gross domestic product"fiscal responsibility and budget management limit to be fixed at five per cent of state gross domestic product statement  of  objects  and  reasonswhile considering the andhra pradesh reorganisation act, the then honourable prime minister assured on the floor of rajya sabha in no uncertain terms that once the state is bifurcated, state of andhra pradesh would be accorded the special category status for five years and, while speaking on the bill, the present honourable urban development minister had demanded for extending the period further and declared that if they came to power special category status would be extended to ten yearsthe andhra pradesh reorganisation act was passed in february, 2014 and on1st march, 2014, the union cabinet had also approved special category status for andhra pradesh it is already more than two years since assurance was given but, so far, there is not even a single move from the union government to confer special category status on andhra pradeshthe raghuram rajan committee report on 'evolving a composite development index of states' points out three sets of factors that influence state's development needs and performance—local environmental factors, institutional capacity and infrastructure and, notably, according to the national development council criteria for according special category status, 'economic and infrastructure backwardness and non-viable nature of finances' are the two important factors for declaring any state as special category andhra pradesh qualifies both the criteria—it has no institutional capacity, it is backward in economic and infrastructure and has low resource base and hence not in a position to mobilize resources for its developmental needsalthough fourteenth finance commission did not make a distinction between special category states and general category states while determining the norms and recommendations, it did take into account the cost disability and fiscal capacity of the states and, the union government has not abolished the distinction between special category states and the general category states it is evident from the report of the 14th finance commission that andhra pradesh would be the only state, other than special category states, which would be with revenue-deficit at the end of the fourteenth finance commission period ie, 2019-20, and, potentially, afterward, at a time when bihar, odisha, rajasthan and similar other backward states would be thriving with revenue surplus so, andhra pradesh will continue to be the most fiscally disadvantaged state in the countryin view of the above, it is all the more necessary to confer special category status on andhra pradesh to provide a level-playing field to the state and help it in growing along with others and be a part of the growth story of the countryhence this billnew delhi;yv  subba reddyfebruary  10, 2016 president's  recommendation  under  articles  117(1)  and  117(3) of the constitution[copy of letter no 16017/02/2016-sr dated 26 april, 2016 from shri haribhai parathibhai chaudhary, minister of state in the ministry of home affairs, to secretary general,  lok sabha]the president, having been informed of the subject matter of the andhra pradesh reorganisation (amendment) bill, 2016 (insertion of new part xa) by shri yv subba reddy, mp, has recommended under articles 117(1) and 274(1) for introduction and under article 117(3) of the constitution for the consideration of the bill in lok sabha financial memorandumclause 2 of the bill seeks to provide special category status to the successor state of andhra pradesh by providing certain concessions, subsidies and other assistance to the successor state of andhra pradesh the bill, therefore, if enacted, will involve expenditure from the consolidated fund of india for conferring special status to the successor state of andhra pradesh as the sums of money which will be given to the successor state of andhra pradesh as concessions and subsidy by appropriation, by law, made by parliament, cannot be stated now it is not possible to give the estimate of recurrring expenditure which would be involved out of the consolidated fund of indiano non-recurring expenditure is likely to be involved out of the consolidated fund of india———— a billfurther to amend the andhra pradesh reorganisation act, 2014————(shri yv subba reddy, mp)gmgipmrnd—2940ls(s3)—09112016