Union Finance Minister Nirmala Sitharaman ruled out the possibility of granting the Special Category Status (SCS) to Andhra Pradesh (A.P.) and some other States.
Ms. Sithraman clarified in the Lok Sabha on Monday that the Central government was receiving requests for grant of the SCS from Odisha, Rajasthan, Bihar, Telangana, Jharkhand, Chhattisgarh and A.P. but there was no such proposal under its consideration.
In a written reply to a question by Janata Dal member from Bihar— Kausalendra Kumar— Ms. Sitharaman said that the SCS for plan assistance was granted in the past by the National Development Council (NDC) to some States characterised by a number of features necessitating a special consideration.
‘No industry link’
These features include: hilly and difficult terrain, low population density and/or sizeable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructural backwardness and non-viable nature of State finances. SCS was granted on an integrated consideration of those criteria.
She also de-linked the SCS and industries and categorically said that SCS does not provide for any specific measure for growth of industries.
Mr. Kumar asked whether Bihar, A.P. and certain economically backward States have been demanding SCS and what were the reasons for considering their demand as genuine or otherwise.
CM’s key demand
Ms. Sitharaman’s statement in the LS comes against the backdrop of Chief Minister Y.S. Jagan Mohan Reddy’s resolve to press for grant of the SCS.
In fact, he raised the matter during his interactions with Prime Minister Narendra Modi and Home Minister Amit Shah just a few days after taking charge and instructed his MPs to highlight the State’s demand in Parliament.
He has also raised the issue at the NITI Aayog meeting and political parties presidents’ meeting convened by the Centre to discuss “One nation, one elections.”