Seemandhra to get special category status, says PM

Prime Minister Manmohan Singh Thursday said special status will be given for five years to Seemandhra region - the residual state of Andhra Pradesh following creation of a separate Telangana.

Speaking in the Rajya Sabha on the bill to create a separate Telangana state, the prime minister said that the bill already stipulates that the central government shall take appropriate fiscal measures, including offer of tax incentives to the successor states in order to promote industrialization and economic growth in both the states.

"These incentives will be along the lines extended to some other states."

"For purposes of central assistance, Special Category Status will be extended to the successor state of Andhra Pradesh comprising 13 districts, including the four districts of Rayalaseema and the three districts of north coastal Andhra for a period of five years. This will put the state's finances on a firmer footing," the prime minister said.

The prime minister read his statement in house amid din and slogan shouting by members opposing the bill to create the new state.

Some members of Congress had made a protective ring around the prime minister as he spoke to shield him from the protesters.