Amaravati, March 7: Andhra Pradesh Chief Minister N Chandrababu Naidu today indicated that the Telugu Desam would take a "right decision at the right time", amid speculation that the party may pull out of the Narendra Modi government. Naidu lashed out at the Centre saying it was "insulting the sentiments" of the people of the state by not honouring the promises made in the AP Reorganisation Act, 2014, and also in Parliament.

"I know what is in your hearts and also the people's hearts. There is no compromise in protecting the state's interests. Let us bear whatever difficulty, but we will take a right decision at the right time," the chief minister told his party MPs during a teleconference this morning. The Telugu Desam Party chief warned the Centre that it would not bode well if people's sentiments were ignored.

"We have to stand by the people and step up our fight to fulfil their aspirations. We are not asking for anything more than that is enshrined in the Reorganisation Act," he pointed out. Naidu expressed displeasure over reports that the Centre was not ready to concede the state's demands, particularly the grant of special category status and bridging the revenue deficit (for 2014-15 fiscal). "You step up your agitation till the Centre specifically addresses all our issues. Let it come clear on the promises made during bifurcation," he told the MPs.

Meanwhile, state finance minister Yanamala Ramakrishnudu said the atmosphere in New Delhi did not indicate that the Centre was ready to resolve AP's issues despite such a serious agitation by the state MPs in Parliament. Ramakrishnudu, who held talks with Union Finance Minister Arun Jaitley in the last two days, claimed that no effort was being made to resolve the crisis.

"We are basically pressing for three things - the grant of special category status, an extension of industrial incentives on par with 11 other states and bridging of revenue deficit for 2014-15. The Centre says special category status is not possible," he told reporters during an informal chat in the Assembly lobbies today. On the industrial incentives, he said the NITI Aayog initially said it would consider the issue, but subsequently, there were reports from New Delhi that it was not possible.