Residuary Andhra Pradesh state has been promised to accord special category status by the previous UPA government. However, even after two months of state formation, the promise was not implemented by the successor government. The technicalities in according the special status to AP state is said to be the reasons behind the delay. As a result the state is losing several big industries to neighboring states.

Union Minister for Planning Indrajit Singh replying to a question in the Rajyasabha said though there is no provision in the AP Reorganization bill-2014 to accord special status to Andhra Pradesh, planning commission has formed a special cell headed by deputy chairman of the commission to chalk out special package for the development of backward areas of AP. He said the special cell is planning to accord Bhundelkhand type package to the state. He said Rayalaseema and north coastal Andhra districts are identified for allotting special package. He said the cell is awaiting proposals from the state government. However, National Development Council chaired by Prime Minister, his cabinet colleagues and all the Chief Ministers of the states have to approve the planning commission’s proposal to accord special category status to the state.