The Planning Commission, which had disapproved of Bihar's demand for seeking a special status for itself, interestingly is in favour of addressing problem areas of such backward states which require urgent attention by providing special packages for them.
As an apex policy plan body of the country, it is the panel's mandate to cater to all the states' demands, however in the recent past it has been focussing on dealing with problem areas which have been troubling several states, especially the backward ones.
A senior official of the panel said that out of Bihar's 37 districts, 36 are covered under Backward Regions Grant Fund (BRGF). The panel is set to double special plan allocation for Bihar in the 12th Plan period (2012-17).
likewise, the panel is also considering Rajasthan Chief Minister Ashok Gehlot's demand of Rs55,000 crore needed for irrigation sector in the state in the 12th Plan.
Planning Commission Deputy Chairman Montek Singh Ahluwalia is learnt to be in agreement of Gehlot's demand and will hold a meeting on the same in Jaipur some time soon.
The official added that the panel is of the view that this is a better way as it will cater to the specific needs of the backwards states. As it is the special category status needs National Development Council (NDC) approval which may prove to be a difficult task considering political rivalry between states.
In few other such instances, some time back, the Cabinet approved a Special Plan for the Kalahandi-Bolangir-Koraput (KBK) districts of Odisha in 2012-13, with an allocation of Rs 250 crore. The panel also doled out a Rs1,400 crore package for Bundelkhand region of Uttar Pradesh and Madhya Pradesh.
The official said that the panel is already reworking the parameters to define backwardness for eligibility of BRGF funds. The new parameters would be based on illiteracy, unemployment and other deprivations. The wider ambit to define backwardness would result in Bihar getting around Rs12,000 crore in the 12th plan period as compared to Rs5,568 crore it got in the 11th plan. Of the proposed allocation for 12th plan, Bihar has already received around Rs 1,500 crore in the first year of the plan, that is 2012-13, and would be getting Rs2,000 crore in the second year.
The panel has submitted a Cabinet note on Bihar's special plan for the 12th plan to Prime Minister's Office for final approval. Kumar had sought Rs 20,000 crore, but the present approach of the panel could be the best panacea for the special category status demand from the other states like Rajasthan, Chhattisgarh, Jharkhand and others.
In principle, the thinking is to give a special plan rather than special status. Under the special plan, the Central Government gives a certain amount of money for districts selected under BRGF. The special category states get exemption from imposing of Central taxes on industry for a limited time period and the states have to provide only 10 per cent of the matching grant to utilise Central financial assistance.