In a historic reversal of his long-standing position, Public Works Minister Malladi Krishna Rao has officially supported the demand for statehood for Puducherry, citing a drastic decline in Central grants.

  • Minister Malladi Krishna Rao reversed his decades-long opposition to Puducherry's statehood.
  • Central funding dropped from 90% to 23% of the total budgetary outlay.
  • Expectation of ₹300-₹400 crore annual devolution via the Finance Commission.
  • Demand for the protection of non-contiguous enclaves like Yanam, Karaikal, and Mahe.

In a surprising political development, the Minister for Public Works, Malladi Krishna Rao, has for the first time extended his support for the demand to grant statehood to the Union Territory of Puducherry. Mr. Rao, a veteran legislator representing the Yanam region in the Godavari delta of Andhra Pradesh, had consistently opposed this move throughout his extensive career as a Minister and lawmaker.

The shift in stance occurred during Monday's assembly session while replying to the demand for grants for his departments within the AINRC-BJP Cabinet. Mr. Rao explained that his previous objections were rooted in fears regarding the stability of Central assistance and the administrative status of the Yanam enclave.

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Why This Matters

BozokMedia analysis shows that this is a strategic pivot driven by fiscal desperation. For years, Puducherry relied on a grant-based model where the Centre provided 90% of its funding. However, with this support plummeting to 23%, the territory faces a severe budgetary crunch. By transitioning to a State, Puducherry would move from a 'grant-recipient' to a 'tax-sharing' entity under the Finance Commission's devolution formula, potentially securing an additional ₹300 to ₹400 crore annually.

"The transition from a Union Territory to a State is no longer just about political autonomy; it is about securing the financial future of the region."

A critical point raised by the Minister is the unique geography of Puducherry. Unlike most states, Puducherry is not geographically contiguous. Mr. Rao emphasized that any move toward statehood must include ironclad guarantees that the interests of the enclaves—Karaikal, Yanam, and Mahe—are protected and that they remain an integral part of the state.

Historically, Mr. Rao had been a lightning rod for criticism, often remaining neutral or abstaining during government resolutions urging the Centre to grant statehood. This sudden alignment with the popular demand has been warmly welcomed by Chief Minister N. Rangasamy and the Pro-tem Speaker.

Did You Know?: Puducherry is one of the few administrative units in the world with territories spread across three different neighboring states (Tamil Nadu, Kerala, and Andhra Pradesh).

Frequently Asked Questions

1. Why did Minister Malladi change his position now?
He cited the drastic reduction in Central grants (from 90% to 23%) and the potential for higher funding through Finance Commission devolution.

2. What is the concern regarding the enclaves?
The Minister wants to ensure that Yanam, Karaikal, and Mahe remain part of Puducherry even after it achieves statehood, given their non-contiguous geography.