Minister for Public Works Malladi Krishna Rao has for the first time extended support for Puducherry’s Statehood demand in the Assembly.The Minister, who represents Yanam region situated in the delta of Godavari River in Andhra Pradesh for the sixth time, has always taken an opposite stand on the demand for Statehood during his long career as a legislator and Minister of the Union Territory.He made the remark welcoming Statehood for the first time on Monday during his reply to the demand for grants pertaining to the departments he handles in the AINRC-BJP Cabinet. Mr. Rao, who belongs to the AINRC, said he had earlier objected to the Statehood demand due to apprehensions over getting Central assistance and maintaining the status of Yanam as a part of Puducherry. “Earlier, we used to get 90% of the funds as grant from the Centre. I opposed Statehood apprehending reduction in funding. Though we remained a Union Territory all these years, the grant from the Centre has come down. Now, the grant from the Centre was only 23% of the total budgetary outlay. But if we were a State now, we would have got ₹300 crore to ₹400 crore by way of devolution of fund every year as per the recommendations of the Finance Commission. So, I feel we will be better off financially with Statehood,” he said.The Minister said the Centre should at least consider including Puducherry under the ambit of the recommendations of the Finance Commission. The Central assistance was must for taking up development and welfare schemes in the Union Territory, he added.“Puducherry is not geographically contiguous. Whenever Statehood was accorded, the interests of the enclaves of Karaikal, Yanam and Mahe should be protected. We want the enclaves to be part of Puducherry even after its elevation as a State,” the Minister said.Mr. Rao had faced criticism in the past when he used to remain neutral or abstain during adoption of government resolution urging the Centre to accord Statehood to Puducherry. After Mr. Rao spoke on Monday, Chief Minister N. Rangasamy and Pro-tem Speaker welcomed the change in his stand. Published - August 31, 2026 07:00 pm IST