The 'Special Status' to Andhra Pradesh state is likely to get more delayed. Yesterday Minister of state for Ministry of Commerce and Industry, Nirmala Sitharaman along with A Union ministers Ashok Gajapathi Raju and Sujana Chowdary held discussions regarding the special status but the talks were not conclusive. The AP Reorganisation Bill and then Prime Minister Manmohan Singh's statements in Rajya Sabha were also discussed in this meeting.

However for the implementation of PM's promises such as tax incentives, special status needed more in-depth analysis, so that they wouldn't face any hurdles in the future. Tax holiday to AP state might get revolt from neighbouring states and the government wants to wait till, BJP has sufficient backing in the National Development Council. The Union government is also looking for other options to grant AP few incentives which could put less burden on the state's financial matters.

The Centre has advised the AP government to identify zones for tax incentives but this would indirectly put pressure. So the Union ministers have declined this proposal but said, they would consider this option. Ministers opined that if incentives are granted to all the 13 districts, investors can establish wherever they want.

(AW: Vamshi)