The government may opt to circumvent the National Development Council (NDC) to accord “special category status” to Seemandhra for a period of five years.
Sources said the Planning Commission has readied a Cabinet note proposing the status for Seemandhra, even though experts say the state won’t qualify for the same under the current criteria. Friday’s Cabinet meeting is likely to consider the Plan panel’s proposal, given the urgency with which the proposal has to be implemented as the electoral code of conduct could come into play anytime now.
The eleven states which are now classified as “special category states” have got the status after approval by the NDC, which consists of chief ministers of all states, besides the Centre. The Centre has so far been resisting the demands from Bihar, Odisha and Rajasthan for the special category tag, and insisted that such proposals would need the NDC approval.
Seemandhra, the region that would remain after the formation of the new state of Telangana from Andhra Pradesh, is getting different treatment as it is politically important for the ruling Congress party to give it special status. Special category states receive 90% Central assistance as grant and just 10% as loan as against the composition of Plan assistance of 30% grant and 70% loan for non-special category states.
The selection of special category states have been made on the basis of various criteria including hilly and difficult terrain, low population density and/or sizeable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructure backwardness and non-viable nature of state finances. Under most of these, Seemandhra is unlikely to qualify for the status.
“As per the norm, special category status of states is not given for a particular time frame. In case of Seemandhra, the status (being given) is for a period of five years and this the Centre can do by taking Cabinet approval for change of use of funds released as Central assistance to the state plan,” said a source in the Planning Commission. That essentially means that rather than the