NEW DELHI: The Planning Commission is set to move a Cabinet note to grant special category status to Seemandhra soon.
The UPA government's urgency reflects the Congress's anxiety to regain lost ground in Seemandhra region as the party is expecting to make gains in Telangana after Parliament approved separate statehood for the region.
A source said, "The commission is expected to move
Cabinet note very soon." He added the proposal may be placed before the
Cabinet on Friday.
The commission is rushing through procedures to grant the coveted status to Seemandhra, but a similar request from Bihar was referred to an inter-ministerial group to look into whether the state meets the set of norms required to grant special status. The group later rejected the request Bihar and states such as Odisha and Rajasthan were also told that special category status was accorded by the National Development Council (NDC) based on consideration of a set of criteria.
The move to push for special category status for Seemandha reflects UPA's changing political priorities considering the 2014 Lok Sabha polls. Keeping the focus on the residuary state that is aggrieved at the division of AP, Congress leader Digvijay Singh held a meeting with state ministers from Seemandhra, seeking their views on what the Centre should do to help the region.
"The prime minister has said that for the purpose of central assistance, it (Seemandhra) will be treated like a special category state. That just requires a Cabinet (approval)," Planning Commission deputy chairman Montek Singh Ahluwalia said after a meeting with Union minister Jairam Ramesh, a key member of the group of ministers that drafted the Telangana bill.
"We will also set up a unit in the commission to look into the need for special category state," he added.
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 major states (non-special category states).
Similarly, special category states receive favoured treatment from the Finance Commission in respect of devolution of central tax revenues.
According to the Gadgil formula for devolution of central assistance for state plans, 30% of the total funds is earmarked for special category states which meets the set of norms such as 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.
Planning Commission is also considering proposal for giving special package for Seemandhra region.
The UPA government's urgency reflects the Congress's anxiety to regain lost ground in Seemandhra region as the party is expecting to make gains in Telangana after Parliament approved separate statehood for the region.
The commission is rushing through procedures to grant the coveted status to Seemandhra, but a similar request from Bihar was referred to an inter-ministerial group to look into whether the state meets the set of norms required to grant special status. The group later rejected the request Bihar and states such as Odisha and Rajasthan were also told that special category status was accorded by the National Development Council (NDC) based on consideration of a set of criteria.
The move to push for special category status for Seemandha reflects UPA's changing political priorities considering the 2014 Lok Sabha polls. Keeping the focus on the residuary state that is aggrieved at the division of AP, Congress leader Digvijay Singh held a meeting with state ministers from Seemandhra, seeking their views on what the Centre should do to help the region.
"The prime minister has said that for the purpose of central assistance, it (Seemandhra) will be treated like a special category state. That just requires a Cabinet (approval)," Planning Commission deputy chairman Montek Singh Ahluwalia said after a meeting with Union minister Jairam Ramesh, a key member of the group of ministers that drafted the Telangana bill.
"We will also set up a unit in the commission to look into the need for special category state," he added.
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 major states (non-special category states).
Similarly, special category states receive favoured treatment from the Finance Commission in respect of devolution of central tax revenues.
According to the Gadgil formula for devolution of central assistance for state plans, 30% of the total funds is earmarked for special category states which meets the set of norms such as 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.
Planning Commission is also considering proposal for giving special package for Seemandhra region.
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