Govt pushes for 'special category status' for Seemandhra with Plancom proposal

Feb 27 2014, 18:24 IST
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SummaryThe government may opt to circumvent the National Development Council (NDC) to accord special category status to Seemandhra for a period of five years.

if comes to power at the Centre, the term of the special category for Seemandhra would be extended for a period of 10 years.

Planning Commissions deputy chairman Montek Singh Ahluwalia on Tuesday had said that based on the prime ministers statement (in Rajya Sabha), the Commission may move a Cabinet note on the issue. 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), Montek had said.

In addition, a few special category states are also permitted by the Centre to provide tax holiday to the industry to give a boost to industrialisation. Seemandhra would have to wait for the finance ministrys approval separately to get this benefit.

The state could also be offered higher allocation from the Backward Region Grants Fund as was done in the case of Bihar last year, which failed to secure a special category status.

The allocation for the 12th (2012-13 to 2016-17) BRGF programme stands at R29,306.00 crore.

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