Amid the push for special category status, the NDA government at the Centre may consider providing special economic assistance to six states that fall short on the development index, sources said.
Bihar is one of the six states that may get consolidated special economic allocations in the next budget for sector-specific development. According to authorities, the other states anticipated to get similar payments include Andhra Pradesh, Jharkhand, Chhattisgarh, and Odisha, as well as the Union Territory of Jammu and Kashmir.
The JD(U), one of the NDA's core partners, is pushing for special status for Bihar, which is set to have assembly elections next year. Andhra Pradesh Chief Minister N Chandrababu Naidu, who was in Delhi on Tuesday, is said to have argued for special economic assistance to help his state finish certain large-scale development projects.
Bihar's low economic situation and the fact that a large portion of the state is flood-prone have long been cited as reasons for the desire for special status.
"After the NITI Aayog established some criteria, it is no longer possible to grant any state special status. However, the NDA-III administration at the Centre is devoted to the development of all states, including Bihar and Andhra Pradesh. The possibility of special economic incentives to 5-6 states cannot be ruled out in the next budget," stated an official.
The Centre has solicited budget proposals from all states. As part of this, certain states have applied for special economic assistance. A senior source intimated that Jammu and Kashmir, which is slated to have assembly elections this year, may also receive a combined economic package for overall growth.
"Other states like Bihar and Andhra, which have been pitching for special economic supports in the form of special status, may also get strong economic grants for sectorwise development like road, industry, power, employment and agriculture," according to an official.
"While formal acknowledgment of special status may not be feasible under current guidelines, extending substantial economic grants to five or six states in the imminent budget is likely," stated the minister.
'NITI Aayog standards are not for special status'
Bihar, which has been requesting special category status, might get consolidated special economic grants.
Other states anticipated to get funds include Andhra Pradesh, Jharkhand, Chhattisgarh, Odisha, and the Union Territory of Jammu and Kashmir.
Andhra Pradesh Chief Minister Chandra-babu Naidu is said to have advocated for special economic assistance for his state to finish massive development projects.
Officials added that since the NITI Aayog issued some guidelines, special status for any state is no longer conceivable.
