No special status for Bihar, but can consider for Rajasthan, says Modi government

Government on 31 July ruled out granting special category status to Bihar for increased central assistance, though there was a proposal to provide the state a special package.

"There is no proposal as of now to grant special status to any state. There is a proposal to give special package," Minister of State for Planning Rao Inderjit Singh said in Lok Sabha during in response to a supplementary question posed by Bihar MP Rajesh Ranjan.

Bihar Chief Minister Nitish Kumar has been pressing for special category status to his state for a long time now. The demand has also been supported by JD-U, BJP and its ally LJP in the past.

In response to another question, Singh said if Rajasthan government sends a proposal to provide special package, the central government may consider it.

Special category states are provided special plan assistance for projects (90% grant) and special central assistance grants.

Assistance for externally-aided projects flows to special category states as 90% grant whereas for general category states, it flows as back-to-back loans, he said.

"Special packages for different sectors have been sought by some states in past. In 2015-16, Bihar and Odisha have sought special packages for their overall socio-economic development for different sectors," he said.

The Centre has ruled out granting special category status to Bihar for increased central assistance.

-PTI