• UGI USER
  • Nov 23, 2023
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SPECIAL CATEGORY STATUS

Why in the News?

  • The Bihar Cabinet passed a resolution urging the Centre to grant the state a special category status.
  • The move follows Chief Minister Nitish Kumar’s recent threat of launching a movement if the demand for special status remains unmet.
Source: Times of India

Significance of Special Category Status

  • Geographical and Socio-economic Disadvantages: States facing challenges like international borders, hilly terrain, tribal populations, or economic backwardness are typically granted special category status.
  • Higher Central Funding: Such states receive an increased share of Central funding to address developmental needs.
Special Category States

·  States with SCS receive benefits such as:

o    90% central funding for centrally sponsored schemes.

o    Concessional loans from the Centre.

o    Relaxation in the criteria for availing of central assistance.

·  As of 2023, 11 states have SCS: 

Arunachal Pradesh, Assam, Himachal Pradesh,Telangana, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand.

·  Special Category Status (SCS) differs from special status by focusing on economic and financial aspects, distinct from the latter, which involves heightened legislative and political rights.

 Chief Minister’s Rationale

  • Welfare Measures for Poor Families: Chief Minister Nitish Kumar highlighted that special status would secure approximately ₹2.50 lakh crore over the next five years, aiding welfare schemes for around 94 lakh poor families.
  • Caste Survey Findings: The demand aligns with the findings of a caste survey conducted by the Bihar government, justifying the need for special status.

Welfare Measures and Assistance

  • Increased Quotas and Assistance: The state government raised caste-based job and education quotas to 65%, alongside providing financial assistance to families in poverty.
  • Economic Activity Support: Plans include providing ₹2 lakh in instalments to one member of each eligible family for economic activities.
  • Housing Initiatives: The government aims to provide permanent houses to about 39 lakh families currently living in huts.