Andhra Pradesh chief minister N Chandrababu Naidu on Wednesday night asked his party's two central ministers to resign amid the growing strain in ties between his TDP and the BJP.

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The Telugu Desam Party (TDP) on Wednesday night announced its decision to pull out of the Narendra Modi government in protest against refusal of the Centre to grant Special Category Status to Andhra Pradesh, saying the Centre has done injustice to the state.

TDP chief and Andhra Pradesh chief minister N Chandrababu Naidu announced to the media that the two TDP ministers — P Ashok Gajapathi Raju (Civil Aviation) and YS Chowdary (Minister of State for Science and Technology) — will tender their resignations on Thursday morning.

Granting special category status was a promise made by the previous UPA government at the time of bifurcation of Andhra Pradesh and creation of Telangana, which all the parties in the state are seeking now.

Jaitley did not make any new commitment except for reiterating that the Centre had extended all possible help to the bifurcated state.

Chandrababu Naidu's announcement came hours after Union Finance Minister Arun Jaitley in New Delhi told the media that granting of special status to Andhra Pradesh was not possible after the 14th Finance Commission recommendations.

The drastic decision of the TDP may not have come as a shock to the BJP, which has already conveyed to its two ministers in the Andhra Pradesh cabinet to be ready to quit any moment.

"They (the Centre) are predetermined not to help the state. In the interest of our state, we have taken the decision," he said. I tried to inform the prime minister for courtesy's sake. But, he did not come on line. My OSD informed the prime minister's OSD."

Chandrababu Naidu said a decision on TDP's continuation in the NDA would be decided after talking party-to-party (BJP and TDP). "This (quitting the cabinet) is the first step," he said.

Decision to quit is for benefit of people of Andhra Pradesh, says Chandrababu Naidu

“This is too little and too late. The TDP has been an ally of the BJP for four years now and has done nothing to protect the interests of Andhra Pradesh," senior Congress leader from Andhra Pradesh and former union minister MM Pallam Raju said.

The Congress on Wednesday said that the TDP's decision to pull out of the NDA government at the Centre was "too little, too late" as it "has done nothing" to protect the interests of Andhra Pradesh in the past four years.

Congress says decision to pull out of NDA 'too little, too late'

BJP spokesperson GVL Narasimha Rao said the Modi dispensation worked to ensure that Andhra Pradesh got full resources in the infrastructure and industrial sector after the bifurcation of the state.

The BJP, on Wednesday night, rejected Andhra Pradesh chief minister and TDP leader N Chandrababu Naidu's charge that the Modi government neglected the state, saying the Centre not only fulfilled all its obligations, but also had went out of its way to help the state.

'Centre went out of its way to help Andhra Pradesh,' says BJP

Meanwhile finance minister Arun Jaitley has said that the Centre has already provided the state (Rs 4,000 crore) with funds. "Only Rs 139 crore is remaining," he said.

According to the Telugu Desam Party (TDP), this deficit has been taking place due to the bifurcation of the state into Telangana and Andhra Pradesh. The party feels that the Centre must compensate for these losses. However, as per the India Today report, there is an another line of argument that the state has such a high revenue deficit because of the Rs 10,000 crore given as farm loan waiver.

If the state receives the special category status, it will considerably ease the financial burden on Naidu's government. Under the special category status, a state receives financial assistance in the ratio of 90:10 (Union: State) for externally aided and centrally sponsored projects, which is much higher than the Finance Commission mandated 60:40 ratio.

The reason Andhra Pradesh, led by chief minister Chandrababu Naidu, is clamouring for more funds is that the state has been facing a continued massive revenue deficit since 2014 - Rs 16,000 crore (2014-15), Rs 4,598 crore (2016-17) and Rs 14,682 crore (2017-18), according to India Today .

"TDP is not for power but for self-respect. We decided there is no point in continuing in the government," he added.

He said the promises on statehood and other financial demands of the state have not been honoured by the BJP and he could not make any compromise on the state's interest.

Chief Minister Chandrababu Naidu said at the time of making the alliance, the BJP had said it backed the demand for grant of special category status for Andhra Pradesh but now it was singing a different tune.

All parties in the state, including the ruling TDP and the main opposition YSR Congress Party, have been agitating in Delhi demanding grant of special status. Agitations are also going on across the state.

YSR Congress chief Jagan Mohan Reddy has extended his support to TDP for demanding the special category status for Andhra Pradesh, reported India Today TV. He also suggested that TDP should move a "no trust motion" against Prime Minister Narendra Modi.

'Not a good move, but unavoidable,' says TDP MP and MoS YS Chowdary on Chandrababu Naidu's decision to quit NDA govt

BJP MLAs to resign from TDP Cabinet; no state has received as many favours as Andhra Pradesh, says BJP leader

Naidu made it clear that the promise of the special category status was the only reason behind the TDP-BJP alliance and added that the saffron party had shown double standards on keeping its promises.

Miffed with the Centre's inaction over providing the special category status to Andhra Pradesh, Chief Minister Chandrababu Naidu asked in the Assembly on Wednesday why the BJP wasn't responding to the needs of its alliance. "Rahul Gandhi is saying they will give ‘special category status’ to AP if they come to power. Why are you (BJP) not responding to the needs of your alliance partner?” Naidu had asked, according to this Indian Express report .

'Rahul Gandhi has promised us special category status; why is BJP not paying attention to state's needs': Chandrababu Naidu

It was a performance targeted at the domestic audience in Andhra Pradesh, to tell the voters that if not for the BJP, he would have achieved all that he promised four years ago.

On Wednesday, when Naidu started speaking, it did not seem like it will be the endgame. Naidu's tone during his speech in the Assembly was one of hurt and beseeching, of someone left in the lurch.

Naidu's style of doing realpolitik is to never do anything in a hurry. In 1995, when he staged the coup to overthrow NT Rama Rao, it came on the back of several days of secret meetings with his camp followers. Likewise in 1998, when he had to take the decision on whether or not to support the Vajpayee-led NDA, he took over a week to do so. This manner of doing politics is with an eye to keep the window of dialogue open, to use the pressure to force the other side to climb down and to make it appear as a well thought-out decision arrived at after consulting everyone.

Timing the departure was not easy. The TDP procrastinated ever since the Union Budget 2018 completely ignored Andhra Pradesh, argues TS Sudhir in this Firstpost article . It was then that Naidu for the first time made his displeasure public and started the process of consultations to divorce BJP.

Chandrababu Naidu makes BJP look bad over special status row, but gambit may only pay off if Andhra buys sob story

Andhra Pradesh would have been granted special status if UPA was in power: Karnataka Congress leader Dinesh Gundu Rao

Both are set to address the Rajya Sabha and Lok Sabha respectively.

BJP leader Kamineni Srinivas was among those who submitted their resignations. He said that the differences between BJP and TDP "have pained us all", reported CNN-News18.

Speaking about TDP chief Chandrababu Naidu's decision to quit the NDA government, Shiva Sena leader Manisha Kayande told ANI : "Even before TDP, Uddhav Ji had clarified his stance. Two ministers from TDP are about to resign. BJP should've thought about it. Former NDA leaders had kept the alliance together. Now it's overconfident. 2019 will be challenging for BJP."

Speaking to ANI, Union minister Ramdas Athawale said that it was not a good move to break away from the NDA government and appealed to Andhra Pradesh chief minister Chandrababu Naidu to think about his decision again. "I want to appeal to Andhra Pradesh chief minister N Chandrababu Naidu that he must think over this decision once again for development of people of Andhra Pradesh. They should stay with NDA," he said.

TV reports have confirmed that Andhra Pradesh chief minister N Chandrababu Naidu has accepted the resignations of the two BJP ministers in the state cabinet.

Among these, the special status issue took centrestage, as parties and leaders found themselves dipped in an inkpot of emotion in Andhra Pradesh. Public sentiment started to grow over the issue, which directly impacted a slew of grievances, including losing state capital Hyderabad to Telangana. Politicians also made it a prestige issue.

But just when things started appearing peaceful again, the 2018 Union Budget upset Naidu again. The BJP didn't agree to any of Andhra Pradesh's demands: Special status for the state after the creation of Telangana to tide over resultant loss of revenue; financial support in establishing a new state capital at Amaravati; and the Polavaram project.

The break-up happened on Wednesday, but seeds of discord were sown two years ago, after the Narendra Modi government didn't react to the TDP's demand — that all commitments made at the time of Andhra Pradesh's bifurcation be realised, argues this Firstpost article . Political compulsions forced Finance Minister Arun Jaitley to extend the TDP an olive branch, offering them the promise of a special package instead of special status to Andhra Pradesh, and Naidu reluctantly agreed to it.

After Andhra Pradesh chief minister Chandrababu Naidu directed two TDP ministers at the Centre to resign, party leader Srinivas told ANI that the bifurcation process itself was done in an unscientific and unjust manner. "No one from Andhra Pradesh was willing to bifurcate. All resources related to generation of employment were in Hyderabad. Bifurcation was not done in a scientific way and injustice done with the Andhra Pradesh," he said.

TDP MPs and Union Civil Aviation Minister Ashok Gajapathi Raju and MoS Science and Technology YS Chowdary will submit their resignation to the Cabinet after 4 pm, reported CNN-News18.

With no strong local leaders in the coastal and Rayalseema region, BJP's fortune is invariably linked with TDP's. Moreover, the saffron party was comparatively stronger in the Telangana region, which now is the state of Telangana.

TDP, as a matter of fact, is the only ally of the BJP south of Vindhyas. For a party which aspires to form state governments in the south, an uncharted territory except for Karnataka, BJP needs TDP in order to survive in the bifurcated state .

"Whoever signs the Special Category Status file will get our support," Reddy told the media in Prakasam district. He said both the Congress and the Bharatiya Janata Party (BJP) had cheated Andhra Pradesh by promising but not granting the SCS. - IANS

YSR Congress chief YS Jagan Mohan Reddy on Thursday said the party would support whoever promises Andhra Pradesh the Special Category Status (SCS).

Merely a day after TDP chief Chandrababu Naidu directed its ministers at the Centre to resign over the special category status row for Andhra Pradesh, rebel leader from JD(U) Pavan Verma began demanding special category status for Bihar, reported CNN-News18.

The two TDP MPs and Union ministers YS Chowdary and Ashok Gajapathi Raju will be meeting Prime Minister Narendra Modi on Thursday evening to submit their resignations, reported CNN-News18. Raju added that they were not meeting Modi to solve the problem but just to hand over their resignation. Currently, Modi is in Rajasthan to attend an International Women's Day event in Jhunjhunu and will return to New Delhi in the evening.

"They (the Centre) are predetermined not to help the state. In the interest of our state, we have taken the decision," he said. I tried to inform the prime minister for courtesy's sake. But, he did not come on line. My OSD informed the prime minister's OSD."

Tried to call Modi, but he didn't come on line, says Chandrababu Naidu

When Andhra Pradesh was created, people did not want to be treated like residue material: TDP MP and Union minister Ashok Gajapathi Raju

Congress, BJP given several chances to run this country, did not fulfill expectations: KT Rama Rao, Telangana minister

Speaking to ANI , RJD spokesperson Manoj Jha said that Chandrababu Naidu took a historical step by quitting the Narendra Modi government. "Why did our chief minister take a step back? The letter was written to him to create pressure over issue of special status to Bihar. This is much needed especially with the kind of disparities here. The chief minister should muster up at least 1 percent of Naidu's courage," Jha said.

The chief minister, in turn, complimented the BJP members, saying they had discharged their duties well.

They thanked him for having inducted them into the state Cabinet.

Health minister Kamineni Srinivas and Endowments minister P Manikyala Rao met the chief minister at the state Assembly and submitted their resignations.

Two BJP ministers in the Chandrababu Naidu Cabinet in Andhra Pradesh today resigned after the Telugu Desam Party (TDP) decided to pull out of the Narendra Modi government.

The state claims it suffered heavy losses when it was bifurcated in 2014 to form Telangana. It not only lost its capital but a heavily industrialised urban hub when Hyderabad was made a part of the new state. It has been demanding Centre's support to regain those losses.

Presenting his last full budget in the election year, finance minister Yanamala Ramakrishnudu said the state's fiscal deficit was expected to touch Rs 24,205 crore, which would be over Rs 3,000 crore less than 2017-18.

Andhra Pradesh government today presented a Rs 1.91-lakh-crore budget, with a projected revenue surplus of Rs 5,235 crore, for financial year 2018-19, vowing to make "every citizen in this state a happy person".

Then there's the question of severe fund crunch. AP faced a revenue deficit of Rs 16,000 crore in 2014-15, Rs 4,598 crore in 2016-17, and almost a similar amount in 2017-18. Finance Minister Yanamala Ramakrishnudu said the state's fiscal deficit was expected to touch Rs 24,205 crore this year. The deficit arose after the state’s bifurcation in 2014, and AP wants the Centre to compensate for its losses, The Indian Express reported.

"The contribution of agriculture to state GDP is higher for Andhra than its neighbouring states. In fact, today it is arguably the highest in South. This is also a reflection of a lower level of industrialization and along with it a lower per capita income and again, the lowest in South," an article in the Business Today explains.

When boundaries of Andhra Pradesh were redrawn, the state lost its urban centres, hence industries, to Telengana and became an agriculture-centric state.

"In 2018, one year before the elections again, he (Naidu) withdraws conveniently. The very reason for his withdrawal is to ensure that the BJP does not grow by itself and acquire equity, politically, in Andhra Pradesh," Rao told PTI.

"BJP considers it as a classic case of opportunistic politics by Chandrababu Naidu. It's also politics of convenience," Telangana BJP spokesperson Krishna Saagar Rao said.

The TDP's decision to exit the NDA government at the Centre is a "classic case of opportunistic politics" by its president and Andhra Pradesh Chief Minister N Chandrababu Naidu, a Telangana BJP leader alleged today.

The Finance Minister attributed his inability to fulfill the Manmohan Singh government's promise to the 14th Finance Commission recommendations, under which the “special status” categorisation has been removed. It is now restricted only to the northeastern and three hilly states. The recommendations were accepted in 2015, a year after the Andhra was bifurcated.

While Jaitley acknowledged that Andhra's demand for Centre's assistance is reasonable and just, he also said the Centre could not accommodate TDP's demands for "special category" status or tax relief for the state.

Arun Jaitley on Wednesday categorically denied to grant special status to Andhra, at the cost of losing an NDA ally and upsetting the state's electorate in an election year — a statement which was termed "the last straw" in TDP-BJP ties.

Centre's take on Andhra Special status explained: Why is BJP reluctant to give state its 'promised right' despite heavy political costs

"Demand of special status to Bihar is a unanimous decision of the state assembly. Our demand is still active. Bihar development is our prime focus, said Neeraj Kumar, JDU spokesperson Neeraj Kumar said.

After TDP pulled out of the central government demanding special status for Andhra Pradesh, JD(U)'s Pavan Verma has now said that a special category status for Bihar was also needed.

After TDP, strains appear in BJP-JD(U) ties as party says special status denied to Bihar too

Nitish's government has been demanding Bihar's special status for long and we've got a special package which is monetarily as beneficial as special status. But, despite this some people are not satisfied and to them I will just say that India can only grow in NDA's regime: Ram Vilas Paswan told ANI.

India can only grow under NDA regime: Ram Vilas Paswan on demands of special status for Bihar

BJP spokesperson G V L Narasimha Rao said the Modi dispensation worked to ensure that Andhra Pradesh got full resources in the infrastructure and industrial sector after the bifurcation of the state. "Centre has offered the state all benefits without giving this tag," Rao told reporters.

The BJP rejected Naidu's charge that the Modi government neglected the state, saying the Centre not only fulfilled all its obligations, but also went out of its way to help the state.

Centre went out of its way to help Andhra Pradesh, says BJP; rejects Chandrababu Naidu's charge that Modi government neglected state

Now, however, with the election year for both Lok Sabha and Andhra Pradesh Assembly approaching next year, the timing is apt to pose once again as the crusader of Andhra's right and give up power for the sake of the people's right. Its noteworthy that neither BJP nor TP lose majority in the Centre and state govts respectively. Plus its not like Naidu has snapped ties with NDA, it has only come out of the government. This gives out the right political message but also leave enough room for a hurried patch-up post 2019 if need be.

This backdrop of 2014 was, perhaps, the reason behind Naidu not raising a storm of protest for last four years despite Modi government not so kind to the state. But, this has created a strong perception that Naidu is compromising the interests of the state for his political purpose. Though the opposition leader, Reddy tried hard to expose this, his tirade over Naidu failed to give him that much sympathy as he failed to be critical of Modi dispensation, a Firstpost article, written at a time when strains had already begun to surface, argued.

Chandrababu Naidu demonstrated consummate political skills by arriving at an early understanding with the Narendra Modi-led National Democratic Alliance (NDA) in 2014 and converted the threat of losing relevance in a newly formed state into an opportunity.

Its anybody's guess that if Modi would have chosen to intervene before Naidu went public with his threat to leave NDA, the headlines today may have been different.

"We wanted to convey the information about pulling out from the government to Prime Minister Narendra Modi out of courtesy, but he could not be contacted... My OSD has conveyed it to the PM's OSD," Naidu said.

"I went to Delhi 29 times, met Prime Minister and Central Ministers and requested them to fulfil our demands," Naidu said. He also expressed anguish over the fact that his efforts to reach Modi on call went unanswered.

Yesterday, even as Naidu announced his party would walk out of the government, he said "but party-to-party issue (of ties with the BJP) will be decided later. He also said he would like to "watch BJP's reaction" before deciding the next step.

It is noteworthy that a BJP source had told PTI that all is still not lost between his party and the TDP and that they will see how things unfold in the coming days. Meanwhile, Naidu had also given signals that he doesn't want to burn all bridges yet.

One of the points made by Naidu in his presser was that he was unable to reach the prime minister when he wanted to inform him of his decision out of courtesy. Modi has decided to return that call now and the TDP Union ministers are also scheduled to meet PM in an hours time.

"The manner in which Mr. Jaitley spoke yesterday was very unfortunate. He spoke in a very humiliating manner. He asked should we cut the defence budget and give you funds. We felt insulted by such statements," Babu said.

Babu speaking to NDTV said that he doesn't see much scope for a possible thaw in the relationship with BJP, adding that it is perhaps too late for reconciliation now.

In the roughly 10 minute long phone call, Naidu explained Modi his reasons to exit the central government, as he reasserted that there is no turning back at least from the Union ministers resignation, CNN-News 18 reported. The TV chancel reported that the phone call was apparently a "no go" and the TDP ministers will submit their resignations when they meet the prime minister at 6 pm.

Naidu explains reason of exit to Modi, says no other way left: Reports

The political situation is such that TDP cannot hold on to the national alliance for too long while they are criticising the Centre's stance on Andhra's special status.

Sources told CNN-News18 that the Andhra chief minister is currently meeting senior TDP leaders in the state to decide whether the party should also walk out of the NDA or not.

TDP considering whether to quit NDA too, or not: Reports

Rayalaseema is the southern part of Andhra Pradesh consisting of four districts — Kurnool, Kadapa, Anantapur, and Chittoor — which is considered more backward than the coastal Andhra patch.

"The aim is to put Naidu on the back foot and make him defensive. If TDP can attack the Modi government for not providing for Andhra in the Union Budget, BJP wants to show that TDP has done precious little for Rayalaseema in successive state budgets."

However, as this Firstpost article argues, the party may already be prepping plan B. "The Rayalaseema Declaration that consists of 16 demands, is proof that BJP has decided to ride the resentment feeling against Naidu that his focus is entirely on Amaravati region in coastal Andhra, ignoring Rayalaseema. The meeting of BJP representatives from Rayalaseema was significantly held in Kurnool, the capital of the then Andhra state between 1953 and 1956. Kurnool felt shortchanged when it was not made the capital after bifurcation in 2014"

After not receiving Chandrababu Naidu's call yesterday, Prime Minister Narendra Modi today reached out to the Andhra CM and reportedly tried to pursuade him to not walk out of the government.

​Even as PM reached out to Naidu, is BJP already looking at life beyond TDP

Yet, the moot question is whether Naidu will continue his alliance with BJP or not and how will people react to Naidu's political moves," a Firstpost article points out.

"With this, while disarming the opposition, the TDP wants to benefit from any eventuality. If the Modi government concedes to the demands of Andhra Pradesh, Naidu will get the credit for making the Centre bow before its pressure. In case, Modi government fails to yield, the TDP would successfully blame it on the BJP. Thus, it will be a win-win situation for the TDP.

As political pundits are guessing, Chandrababu Naidu's move to walk out of the government seems more inspired by domestic political needs than by anger towards the BJP. What this clever political move of quitting the government while still retaining the alliance has done is safeguarded Naidu's interests in state while keeping the window for alliance in 2019 open in any eventuality.

"Considerable amount of time has elapsed (for the NDA to take decision on Andhra Pradesh). In these circumstances, unless we hear the people's voices, it doesn't make sense. As per direction of TDP chief Chandrababu Naidu, we have taken the decision. Because we don't belong to BJP, we have to go as per our party president. I will serve for the people of Andhra Pradesh. Now probably, by being independent, we will have better freedom," TDP's YS Chowdary said at a press conference.

Will serve for people of Andhra Pradesh, says YS Chowdary after submitting resignation to Narendra Modi

"We are continuing as part of NDA, but the problems are there. From being Andhra Pradesh, we have become the "residuous state of Andhra Pradesh". There are different ways to look at it (the bifurcation issue). Our party has directed that we resign and continue being part of NDA. We hope that a solution will come," he added.

"We (BJP and TDP) have worked together and were able to work cohesively. This was an opportunity that I partly gave up. It's our courtesy that we call on him (Narendra Modi)," said Ashok Gajapathi Raju who submitted his resignation to Modi along with YS Chowdary on Thursday.

Ashok Gajapathi Raju says TDP directed the ministers to resign but stay as part of NDA

The politeness was noticeable in the press conference as CHoudhary said: "I don't think it's fair on our part to expect PM to deal with these issues. It's for the concerned ministries to take up, already considerable amount of time has lapsed."

Raju in his resignation letter expressed gratitude towards the PM, while Choudhary said that he was thankful for the experience under the PM's guidance.

As the two Union ministers conveyed their resignation to the Prime Minister, they also thanked him for giving the opportunity to work with them.

YS Choudhary said that the issue of special category status was very emotive for Andhra Pradesh but the Centre did not address it and added that even the special package was not adequate. Choudhary, however, said that it would be unfair to say that the Centre did nothing for the state.

Rayalaseema is the southern part of Andhra Pradesh consisting of four districts — Kurnool, Kadapa, Anantapur, and Chittoor — which is considered more backward than the coastal Andhra patch.

"The aim is to put Naidu on the back foot and make him defensive. If TDP can attack the Modi government for not providing for Andhra in the Union Budget, BJP wants to show that TDP has done precious little for Rayalaseema in successive state budgets."

However, as this Firstpost article argues, the party may already be prepping plan B. "The Rayalaseema Declaration that consists of 16 demands, is proof that BJP has decided to ride the resentment feeling against Naidu that his focus is entirely on Amaravati region in coastal Andhra, ignoring Rayalaseema. The meeting of BJP representatives from Rayalaseema was significantly held in Kurnool, the capital of the then Andhra state between 1953 and 1956. Kurnool felt shortchanged when it was not made the capital after bifurcation in 2014"

After not receiving Chandrababu Naidu's call yesterday, Prime Minister Narendra Modi today reached out to the Andhra CM and reportedly tried to pursuade him to not walk out of the government.

​Even as PM reached out to Naidu, is BJP already looking at life beyond TDP

Yet, the moot question is whether Naidu will continue his alliance with BJP or not and how will people react to Naidu's political moves," a Firstpost article points out.

"With this, while disarming the opposition, the TDP wants to benefit from any eventuality. If the Modi government concedes to the demands of Andhra Pradesh, Naidu will get the credit for making the Centre bow before its pressure. In case, Modi government fails to yield, the TDP would successfully blame it on the BJP. Thus, it will be a win-win situation for the TDP.

As political pundits are guessing, Chandrababu Naidu's move to walk out of the government seems more inspired by domestic political needs than by anger towards the BJP. What this clever political move of quitting the government while still retaining the alliance has done is safeguarded Naidu's interests in state while keeping the window for alliance in 2019 open in any eventuality.

I don't think it's fair on our part to expect PM to deal with these issues. It's for the concerned ministries to take up, already considerable amount of time has lapsed: YS Choudhary,TDP pic.twitter.com/tAt0Tu4iBs

"Considerable amount of time has elapsed (for the NDA to take decision on Andhra Pradesh). In these circumstances, unless we hear the people's voices, it doesn't make sense. As per direction of TDP chief Chandrababu Naidu, we have taken the decision. Because we don't belong to BJP, we have to go as per our party president. I will serve for the people of Andhra Pradesh. Now probably, by being independent, we will have better freedom," TDP's YS Chowdary said at a press conference.

Will serve for people of Andhra Pradesh, says YS Chowdary after submitting resignation to Narendra Modi

"We are continuing as part of NDA, but the problems are there. From being Andhra Pradesh, we have become the "residuous state of Andhra Pradesh". There are different ways to look at it (the bifurcation issue). Our party has directed that we resign and continue being part of NDA. We hope that a solution will come," he added.

"We (BJP and TDP) have worked together and were able to work cohesively. This was an opportunity that I partly gave up. It's our courtesy that we call on him (Narendra Modi)," said Ashok Gajapathi Raju who submitted his resignation to Modi along with YS Chowdary on Thursday.

Ashok Gajapathi Raju says TDP directed the ministers to resign but stay as part of NDA

That is between those two parties, we have nothing to say on that, you can ask them: YS Choudhary,TDP MP on possibility of BJP-YSRCP alliance pic.twitter.com/1VaABL0HeD

The politeness was noticeable in the press conference as CHoudhary said: "I don't think it's fair on our part to expect PM to deal with these issues. It's for the concerned ministries to take up, already considerable amount of time has lapsed."

Raju in his resignation letter expressed gratitude towards the PM, while Choudhary said that he was thankful for the experience under the PM's guidance.

As the two Union ministers conveyed their resignation to the Prime Minister, they also thanked him for giving the opportunity to work with them.

YS Choudhary said that the issue of special category status was very emotive for Andhra Pradesh but the Centre did not address it and added that even the special package was not adequate. Choudhary, however, said that it would be unfair to say that the Centre did nothing for the state.

Special Category Status for Andhra Pradesh Updates: After submitting their resignations to Prime Minister Narendra Modi, the two TDP ministers said that they will continue to be a part of NDA but would no longer hold ministerial positions.

In the roughly 10 minute long phone call, Naidu explained Modi his reasons to exit the central government, as he reasserted that there is no turning back at least from the Union ministers resignation, CNN-News 18 reported. The TV chancel reported that the phone call was apparently a "no go" and the TDP ministers will submit their resignations when they meet the prime minister at 6 pm.

As all eyes remained on TDP-BJP ties, politicos reading between the lines of all the political posturing say that nothing is unexpected of Naidu —known for striking the best political bargains — until a final deal is done. BJP sources also told PTI that they believe all is not lost with TDP.

Two BJP ministers in the Chandrababu Naidu Cabinet in Andhra Pradesh today resigned after the Telugu Desam Party (TDP) decided to pull out of the Narendra Modi government. Health minister Kamineni Srinivas and Endowments minister P Manikyala Rao met the chief minister at the state Assembly and submitted their resignations.

Responding to the ongoing political tussle between the BJP and TDP, senior Congress leader Ghulam Nabi Azad said that the saffron party made false promises to the Telugu Desam Party to make them an ally in 2014, reported CNN-News18.

Chandrababu Naidu said that he tried to speak to Narendra Modi on phone as a courtesy to inform him about the decision to pull out of the government. "It is my responsibility as a coalition partner to inform the prime minister about our party decision. My OSD spoke to his OSD but the prime minister did not come on line," he said.

Amid the ongoing tussle between BJP and TDP over granting special category status to Andhra Pradesh, JD(U) demanded the same for Bihar.

The Telugu Desam Party (TDP) on Wednesday night announced its decision to pull out of the Narendra Modi government in protest against refusal of the Centre to grant Special Category Status to Andhra Pradesh, saying the Centre has done injustice to the state.

TDP chief and Andhra Pradesh chief minister N Chandrababu Naidu announced to the media that the two TDP ministers — P Ashok Gajapathi Raju (Civil Aviation) and YS Chowdary (Minister of State for Science and Technology) — will tender their resignations on Thursday.

The TDP is second-largest party after the Bharatiya Janata Party (BJP) in the National Democratic Alliance (NDA).

In the Lok Sabha, the TDP has 16 members and in the Rajya Sabha six. It is the first pre-poll partner of the BJP to pull out of the Modi government after being part of it for nearly four years.

His announcement came hours after Union Finance Minister Arun Jaitley in New Delhi told the media that granting of special status to Andhra Pradesh was not possible after the 14th Finance Commission recommendations.

Jaitley did not make any new commitment except for reiterating that the Centre had extended all possible help to the bifurcated state.

Granting special category status was a promise made by the previous UPA government at the time of bifurcation of Andhra Pradesh and creation of Telangana, which all the parties in the state are seeking now.

Naidu said a decision on TDP's continuation in the NDA would be decided after talking party-to-party (BJP and TDP). "This (quitting the cabinet) is the first step," he said.

"They (the Centre) are predetermined not to help the state. In the interest of our state, we have taken the decision," he said. I tried to inform the prime minister for courtesy's sake. But, he did not come on line. My OSD informed the prime minister's OSD."

The drastic decision of the TDP may not have come as a shock to the BJP, which has already conveyed to its two ministers in the Andhra Pradesh cabinet to be ready to quit any moment.

Dr. Kamineni Srinivas (Medical and Health) and P Manikyala Rao (Endowments) quit Naidu cabinet on Thursday morning, hours before the budget presentation by Finance Minister Y Ramakrishnudu in the assembly.

Naidu held consultations with the party's MPs, ministers and important leaders before taking the decision and making it public.

The MPs, including the two ministers, expressed a unanimous opinion that Jaitley's statement on the demands of Andhra Pradesh was disappointing and discouraging.

All parties in the state, including the ruling TDP and the main opposition YSR Congress Party, have been agitating in Delhi demanding grant of special status. Agitations are also going on across the state.

Naidu said at the time of making the alliance, the BJP had said it backed the demand for grant of special category status for Andhra Pradesh but now it was singing a different tune.

He said the promises on statehood and other financial demands of the state have not been honoured by the BJP and he could not make any compromise on the state's interest.

"TDP is not for power but for self-respect. We decided there is no point in continuing in the government," he added.

Naidu said Jaitley's comments suggest that Andhra Pradesh is asking for too much. He also slammed the finance minister for saying "sentiments will not decide the quantum of funds".

He said he made 29 trips to Delhi, met the Prime Minister and other ministers and tried to do his best to do justice for the state. "I am not angry with anybody," he added.

With inputs from IANS