Bihar, Andhra Pradesh’s demand for special category status | Explained

• Bihar and Andhra pradesh demand for special category status (SCS) for their States Andhra Pradesh and Bihar.

Key highlights

• Special Category Status for plan assistance was granted in the past by the National Development Council to the states that were characterised by a number of disadvantages necessitating special consideration.
• These disadvantages included:
  • Hilly and difficult terrain
  • Low population density and/or sizeable share of tribal population; strategic location along borders with neighbouring countries
  • Economic and infrastructural backwardness; and non-viable nature of state finances.
• Special category status was granted based on an integrated consideration of these criteria.
• However, the distinction among states was done away with starting the Fourteenth Finance Commission, and abolition of the Planning Commission by government.
• Any state that is relatively poor and has special requirements may ask for it.
• If many states ask for it, and if the government wants to make a systematic arrangement, then the matter should be handed over to the Niti Aayog and it may be given some special window to finance such states through some criteria