Centre Said This About Special Status To Bihar
The Prime Minister Narendra Modi-led central government has ruled out ally and Bihar Chief Minister Nitish Kumar’s demand of Special Category Status for Bihar.
The Minister of State for Finance, Pankaj Chaudhary, addressed questions from Lok Sabha MP Ramprit Mandal in parliament today regarding the demand for Special Category Status for Bihar.
Janata Dal (United) MP Mandal from Bihar’s Jhanjharpur asked the Finance Ministry if the central government had a plan for giving Bihar and other most backward states special status to promote economic growth and industrialization.
In a written reply in the first day of the Lok Sabha’s Monsoon session, Minister of State for Finance Chaudhary explained, “The Special Category Status for plan assistance was granted in the past by the National Development Council (NDC) to some states characterized by features necessitating special consideration. These features included hilly and difficult terrain, low population density and/or sizeable share of tribal population, strategic location along borders with neighboring countries, economic and infrastructural backwardness, and the non-viable nature of state finances.”
He further noted that an Inter-Ministerial Group (IMG) had previously reviewed Bihar’s request for Special Category Status and submitted its report on March 30, 2012.
“The IMG found that based on existing NDC criteria, the case for Special Category Status for Bihar is not made out,” Chaudhary stated.
Meanwhile, Nitish Kumar’s JD(U), a key ally of Prime Minister Modi, is reportedly pressing for a Rs 30,000 crore infusion into Bihar’s projects.
For the JD(U), the demand for the special status for Bihar has been longstanding. The NDA ally also raised the demand at the all-party meet held yesterday.
Read Also: PM Modi’s Key Ally Nitish Kumar Seeks Rs 30,000 Crore Aid For Bihar: Report
During a pre-budget meeting with Finance Minister Nirmala Sitharaman last month, the Bihar Chief Minister’s government made the demand, according to Bloomberg. However, the allocation for this fiscal year remains undecided.
First introduced by the 5th Finance Commission in 1969, the Special Category status ensures that a state receives more central support, funding, and concessions in taxes. The status helps fasten the growth and development of backward states. So far, Jammu and Kashmir (now a UT), Himachal Pradesh, Uttarakhand, and northeastern states have received a special status so far.
