Govt rules out special status for Bihar sought by JD(U)

NEW DELHI: The BJP-led central government has ruled out special category status in the case of Bihar, rejection of the demand of the JD(U) ally, this decision will have an impact on a similar demand of another ally, TDPfor Andhra Pradesh.
The position was made by Deputy Finance Minister Pankaj Chaudhary in a written reply to JD(U) MP Rampreet Mandal. Calling the term “special category” a Planning Commission term, LJP’s Shambhavi Choudhary said states had availed special packages instead.
Center ruled out granting special category status to Bihar, rejecting ally BJP’s demand JDU, This decision will also have an impact on the similar stand of another coalition partner, TDP, on Andhra Pradesh.
While the decision is significant given the crucial importance of the Lok Sabha results for the TDP and JDU for the Modi government, it is a reaffirmation of the known position of the central government, was expected and is unlikely to pose any political risk; at least not in the near future.
The central government’s stand, conveyed by deputy finance minister Pankaj Chaudhary in a written reply to JDU member Rampreet Mandal, is based on the recommendation of the 14th Finance Commission, which cited an increase in central fund transfers to states — from 32% to 42% — and called for the abolition of the special category status scheme, a measure aimed at supporting backward states with incentives like tax breaks for industries willing to invest in their jurisdictions.
Both the TDP and the JDU, it seems, have factored this into their political calculations. In an interaction with the BJP, Andhra CM and TDP chief N Chandra Babu Naidu seemed more focused on central aid for projects like the development of Amaravati as a new capital to replace Hyderabad and the Polavaram dam project. At an all-party meeting on Sunday, TDP representative Lavu Sri Krishna Devarayalu did not raise the issue, much to the obvious annoyance of the Congress, which apparently urged the party not to lower the stakes on the issue.
At the same meeting, JDU president and Rajya Sabha MP Sanjay Jha reiterated Bihar Chief Minister Nitish Kumar’s demand for a special category and also expressed empathy with the party’s stand at the Centre and suggested that his party could agree to central aid to combat the floods.
Predictably, Lalu Prasad’s RJD used the Centre’s position to mock the JDU. “Nitish Kumar had given special status to Bihar. Since the Centre refused, he should resign immediately,” Lalu said.
However, Union Minister Giriraj Singh responded by pointing out that Lalu was silent when the UPA denied Bihar SCT. “When the RJD raises this issue, it makes me laugh. When Lalu bhaiya was called a ‘king killer’ and was playing in the lap of the Congress, he could have got SCT for Bihar,” Singh said.
In a written reply, Pankaj Chaudhary said that special category status has been granted by the NDC in the past to certain states with a number of features requiring special consideration, including — hilly and rugged terrain, low population density or significant tribal population, strategic location along borders with neighbouring countries, economic and infrastructural backwardness and fragile fiscal condition of the state.
The Minister said that the decision was made after considering all the above-mentioned factors and taking into account the specific situation of the country.
LJP (RV) MP Shambhavi Choudhary said, “Special status was a term that existed till the Planning Commission came into being. After the formation of Niti Aayog, nothing was given to anyone under special category status, but the states were definitely given a special package which will accelerate development…”