Business Desk, New Delhi. Former Niti Aayog Vice Chairman Rajiv Kumar on Sunday said that the Central Government should carefully consider the old demand of Andhra Pradesh and Bihar for special status. He advised the Center not to take any decision in haste as it could set a precedent. Then such demands will gain momentum in other states and the financial resources of the Center may be overburdened.

Why are Bihar, Andhra demanding special status?

Andhra Pradesh was divided in 2014 and a new state Telangana was formed by separating from it. Now Andhra Pradesh says that it has suffered a loss of revenue in this division because Hyderabad has become the capital of Telangana. On this basis, it is demanding the status of a special state.

On the other hand, Bihar has been demanding special status since 2005, when Nitish Kumar became the Chief Minister for the first time. The reason behind Bihar's demand is also the division of the state. Jharkhand was separated from it in 2000, which is mineral rich. Bihar also demands special status by talking about loss of revenue due to this.

What did the former chairman of NITI Aayog say

Former Niti Aayog vice-chairman Rajiv Kumar said in an interview to the news agency, "Bihar and Andhra Pradesh have been demanding special status for a long time. But, this needs to be considered very carefully. You have to closely examine the economic criteria on the basis of which this demand is being made."

The economist said, "If you grant special state status in a hurry, it can set a precedent. Then many states will start demanding the same, which will not be financially possible to fulfill."

What do states with special status get?

States with special status get additional financial help from the Centre. In case of any normal state, the Central Government bears only 60% of the cost of its schemes. The remaining 40% amount has to be paid by the State Government. But, in case of states with special status, the Centre bears 90% of the burden of the scheme. The State has to pay only 10%.

If these states are unable to spend the amount received from the Centre in a year, then it is carried forward to the next year. But, in the case of normal states, that amount lapses. Meaning that it cannot be carried forward to the next year.

When and why was the special status started

The special status was introduced in 1969 on the recommendation of the Fifth Finance Commission to benefit certain states with hilly terrain, strategic international borders and economic and structural backwardness. Assam, Nagaland and Jammu and Kashmir were then given the status of special states.

Currently, 11 states in India have been given the status of special category states. These include mostly northeastern states like Meghalaya, Manipur, Mizoram, Sikkim, Tripura, Arunachal Pradesh, Nagaland and Assam. Hilly states include Uttarakhand, Jammu and Kashmir and Himachal Pradesh.