"The issue of special status for Andhra Pradesh is still under consideration by Union government," Rao, national general secretary, told reporters here on way to Guntur.
His statement came within days of Union minister Rao Inderjit Singh telling the Parliament in reply to a question by a member from Bihar that the special status would not be given to any state any more.
Accusing the Congress of playing politics on the issue, Muralidhar Rao said, "the Modi government is keen on strengthening federalism. NDA government believes in cooperative federalism and is committed to provide financial assistance to residual Andhra Pradesh."
In a public rally organised yesterday at the temple town of Tirupati, Congress had criticised the BJP for not acting upon its election promise of granting special status to the state. A 40-year-old Congress worker had even attempted self-immolation at the rally over the issue.
Responding to a query, he said the Centre was allocating more funds to States for implementation of the welfare and developmental programmes.
"Union government gives priority for devolution of funds as per the recommendations given by the 14th Finance Commission," the leader said.
He said about 1.5 million party members from the state would be trained to take messages on various developmental schemes of government, to people.
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