What led to TDP-BJP break up

File photo of Chandrababu Naidu. Photograph:( Zee News Network )

WION Web Team New Delhi, Delhi, India Mar 08, 2018, 06.27 AM (IST)

BJP and Chandrababu Naidu's Telugu Desam Party (TDP) are locked in a bitter battle ever since the Union budget was announced. Chandrababu Naidu's Telugu Desam Party (TDP), besides demanding special category status (SCS) to Andhra Pradesh, has been asking the Centre that all the remaining points in AP Reorganization Act should be implemented. While the Centre fulfilled some of the promises, the demand for special category status resulted in BJP-TDP break up.What are the other reasons for the break-up? 

Andhra Pradesh state government claims that state has a revenue deficit of Rs 16,000 crore. The Centre dismisses this saying the amount is less; it also says that Andhra Pradesh was given Rs 4,000 crore and only Rs 138 crore is pending.

The state government's insistence on special category status would have eased the financial burden of Naidu government. Under special category status, a state gets Centre's assistance in the ratio of 90:10 (Union:State) for all centrally sponsored schemes. 

One such project is the Polavaram dam project which is estimated to cost Rs 33,000 crore. Around Rs 7,500 crore has been spent till now on it. The Centre has released around Rs 5,000 crore for the dam's construction and assured the state government of more funds.

After splitting from Telangana in 2014, Andhra Pradesh began construction of its new capital at Amaravati which is likely to cost Rs 33,000 crore. The Centre has given Rs 2,500 crore, including for Guntur and Vijayawada. But the TDP wants the Centre to bear the entire cost saying it didn't ask for bifurcation.

At the time of bifurcation, the then Prime Minister Manmohan Singh had promised "special assistance" for five years. TDP is alleging that Andhra Pradesh is being denied what was promised to it. Jaitley cited Finance Commission recommendation as the constitutional limitation for accepting TDP's demands.

There is also the difference in the way TDP and BJP-led central government calculate the money that Andhra Pradesh may get. According to TDP, Andhra Pradesh should get Rs 20,000 crore additional funds for its various projects. However, Jaitley made it clear that under the existing formula, Andhra Pradesh can't get more than Rs 1,600 crore, an amount that TDP considers insufficient.

TDP government in Andhra Pradesh accuses the Centre of delaying new railway zone, which is opposed by Odisha. The state government wants to fund from the local agencies such as Hudco and Nabard while the Centre proposes funding in the form of loans from external agencies like World Bank.