Jaitley assures solution on special assistance to Andhra

Finance Minister Arun Jaitley on Friday said that a solution will soon be arrived upon regarding the Centre's agreement to provide special assistance to the state of Andhra Pradesh.

"Central government had agreed to give special assistance measures to Andhra Pradesh for five years. Earlier, this assistance was to be given by externally aided program. However, in month of January, the state government suggested alternative methods, and solution is likely to be finalised soon," Jaitley said in his address at the Rajya Sabha.

The topic had become a cause for rift between the ruling Bharatiya Janata Party (BJP) and its ally in the state Telugu Desam Party (TDP), after the Union Budget presented on February 1 did not reflect the agreement.

Upset with the lack of adequate funds allocated for the state, Andhra Pradesh Chief Minister Chandrababu Naidu had also called a meeting with party members to review ties with the BJP.