Answer: 

Article 239AA was inserted by 69th Amendment Act, 1991which conferred the special status on Delhi following the recommendations of the S Balakrishnan Committee that was set up in 1987 to look into Delhi’s demands for statehood. 

Despite the special status granted to Delhi, it did not attain the full-fledged status of a state. Consequently, a persistent conflict exists between the Union government and the Government of the National Capital Territory of Delhi (GNCTD) over the distribution of powers.

Significance of providing statehood to Delhi 

1. Democratic Representation: Statehood for Delhi would mean that its residents would have greater representation in Parliament with elected Members of Parliament (MPs).  

1. Administrative Autonomy: Statehood would empower the government to make decisions on various issues including law and order, land and public order. 

1. Better Governance: With statehood, Delhi could have more control over its police force and administrative machinery which can enable it to address local issues more effectively.  

1. Fiscal Autonomy: States have more control over their finances including the ability to generate revenue through taxation. Delhi's statehood could provide it with more financial independence.

Issues with giving statehood to Delhi 

1. Statehood to Delhi  may raise concerns about the central government's control over key institutions and the need for a secure and stable environment in the capital. 
2. Security Concerns: Delhi is a high-profile target for security threats as it is the political and administrative hub of the country.  
3. Land Acquisition and Control: The central government currently has control over land in Delhi. Granting statehood could lead to complexities in land acquisition and control. 
4. International Diplomacy: The central government manages international relations and the presence of foreign embassies and diplomatic missions is a central government responsibility. Statehood might impact these diplomatic functions. 

Way Forward 

1. Establish a Committee, which has representatives from the central government, Delhi government and other relevant stakeholders to study the implications, challenges and benefits of granting full statehood to Delhi. 
2. Public Consultation: Engage in a transparent and inclusive public consultation process to gather the opinions and feedback of Delhi residents.  
3. Define Clear Jurisdiction of the central government and the state government in Delhi to avoid conflicts.  
4. Phased Transition: Allowing for a gradual transfer of powers and responsibilities from the central government to the state government.  

To ensure coherent and appropriate urban planning, the democratically elected government of Delhi should be granted extensive authority over matters of policy and municipal administration. Maintaining the public interest and carrying out efficient governance should be based on concerted efforts. Before changing the present condition, the central and state governments should sit together to solve this issue in a peaceful manner.