The story so far: Impressive performances by Chandrababu Naidu’s Telugu Desam Party (TDP) and Nitish Kumar’s Janata Dal United (JD(U) in the 2024 Lok Sabha elections have renewed interest in the leaders’ demands for special category status (SCS) for their States Andhra Pradesh and Bihar.
Bihar Chief Minister Nitish Kumar’s Cabinet had in November 2023 passed a resolution seeking SCS for the State. Andhra Pradesh’s incoming Chief Minister Naidu has also raised demands for SCS for the State in the past, stating that it is only difference he has with the Bharatiya Janata Party (BJP).
What is Special Category Status?
Special Category Status is a classification granted to some States by the Centre to assist development, based on geographical and socio-economic disadvantages. The scheme was introduced in 1969 on the recommendation of the Fifth Finance Commission.
Five factors that are considered before granting SCS to a State:
- Hilly and difficult terrain
- Low population density and/or sizeable share of tribal population
- Strategic location along international borders
- Economic and infrastructural backwardness
- Non-viable nature of State finances
Currently, 11 States in India — Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand — have SCS.
SCS States receive Centre-State funding from centrally sponsored schemes in the ratio of 90:10, which is more favourable than general category States. They also receive other benefits like tax concessions etc.
Why is Bihar demanding Special Category Status?
Bihar’s per capita net state domestic product for 2022-23 stood at ₹31,280, which was among the lowest in the country.
Bihar was also India’s poorest State according to the National Family Health Survey 5, with 33.76% of the State’s population being multidimensionally poor.
After the Bihar Cabinet resolution was passed in 2023, Chief Minister Kumar said in a letter, “Today in the Cabinet meeting, a proposal has been passed to request the Central government to give special category status to Bihar. I request, keeping in mind the interest of the people of Bihar, the Central government should immediately give special State status to Bihar.”
Approximately ₹2.50 lakh crore would be needed to implement the schemes prepared by the State government in the interest of the people, Mr. Kumar said.
Mr. Kumar has raised the demand for Bihar’s SCS in the past as well, including at a rally at Gandhi Maidan in Patna in November 2012 and at Ramlila Maidan in Delhi in March 2013. He has also slammed former Prime Minister Manmohan Singh for not fulfilling this demand. “On our demand, the then Central government had also formed the Raghuram Rajan Committee and its report was published in September 2013, but even at that time the then Central government did not do anything about it. In May 2017 also, we had written a letter to the Central government for granting the status of special State,” Mr. Kumar said.
Why is Andhra Pradesh demanding Special Category Status?
Andhra Pradesh demands SCS based on loss of revenue after the 2014 bifurcation of the State which led to the formation of Telangana under the A.P. Reorganisation Act on February 20, 2014. Former Prime Minister Singh had said that SCS would be “extended to the successor State of Andhra Pradesh ... for a period of five years”, and this oral statement has been the basis of the State’s claim for SCS.
Andhra Pradesh has also seen multiple protests in the past years to demand special status for the State.
