By Bizodisha Bureau, Bhubaneswar, March 3, 2016 : In a major blow to Odisha, a motion to accord special category state (SCS) status to the state on March 3 fell through in the Lok Sabha.

Moved by BJD parliamentary party leader Bhartruhari Mahtab in the Lok Sabha, the motion was rejected in a division vote. While 76 members of the lower house of the Parliament cast their vote in favour of the motion, 222 MPs voted against the motion.

On the other hand, the BJD claimed it as a major victory for the party since many have supported its long standing demand for according special category status to Odisha.

“This is Odisha’s victory. Odisha’s demand has fetched the support of many MPs. BJD will continue with its demand for special category status to the state,” said BJD spokesperson and MLA from Junagarh Dibya Sankar Mishra.

Political pundits feel the motion being defeated in Lok Sabha will give enough fodder for ruling party BJD to raise the slogan of Centre’s neglect of Odisha and train its guns against both BJP and Congress inside the state for not supporting the state’s genuine demand.

The BJD has been claiming that the state has been historically a victim of neglect by the Centre both by the Congress and the BJP.

Special Category’ status had been granted in the past by the Union government to States having certain characteristics based on the recommendations of the National Development Council. These included i) hilly terrain; ii) low population density and/or sizeable share of tribal population; iii) strategic location along borders with neighbouring countries; iv) economic and infrastructure backwardness; and v) non-viable nature of State finances.

Under the revised Gadgil-Mukherjee formula, which was in operation till 2014-15, 30 per cent of the normal central assistance was earmarked for ‘Special Category States’ and the remaining 70 per cent to General Category States. ‘Special Category States’ were entitled to get such assistance in the grant-loan ratio of 90:10 as compared with 30:70 ratio for other States.

In addition to their earmarked share in normal central assistance, special plan assistance for projects (90 per cent grant) and untied special central assistance (100 per cent grant) were being given only to ‘Special Category States’. Other benefits to ‘Special Category States’ include assistance for externally-aided projects in the grant-loan ratio of 90:10, whereas such assistance to other States is on back-to-back basis.

Under the Accelerated Irrigation Benefit Programme (AIBP), ‘Special Category States’ get 90 per cent of the project cost as grant as compared with 25 per cent grant for others. The matching contribution in respect of Centrally Sponsored Schemes (CSS) is usually lower for ‘Special Category States’, more particularly, for those in the Northeastern region.

Though all the ‘Special Category States’ are provided with central incentives for the promotion of industries, there is no explicit linkage between the incentives and the special status. The package of incentives is different for the States of Jammu and Kashmir, Himachal Pradesh, Uttrakhand and the States located in the Northeastern region. These packages have more to do with their backwardness than the status.

Following the demand for Special Status by Bihar, Odisha and others, a committee was appointed under Dr. Raghuram Rajan in 2013. This committee suggested that States classified as ‘Special Category States’ and those seeking inclusion in that category, would find that their need for funds and special attention more than adequately met by a basic allocation to each State and the categorisation of some as ‘least developed’.