The centre on Monday denied granting 'special status' to Bihar, which was demanded by Chief Minister Nitish Kumar's JD(U) in the all-party meeting.
JDU MP Ramprit Mandal asked the Finance Ministry if the government has planned to provide special status to Bihar and other most backward states to promote economic growth and industrialisation.
In a written reply in the Lok Sabha on the first day of the Monsoon session, Minister of State for Finance Pankaj Chaudhary said "case for Special Category Status for Bihar is not made out". Chaudhary said that the special category status was granted in the past by the National Development Council (NDC) to some states which were characterised by a number of features necessitating special consideration.
The centre cited an inter-ministerial group report prepared in 2012 to assert that a case for granting special category status to Bihar is not made out.
"The Special Category Status for plan assistance was granted in the past by the National Development Council (NDC) to some States that were characterized by a number of features necessitating special consideration. These features included (i) hilly and difficult terrain, (ii) low population density and/or sizeable share of tribal population, (iii) strategic location along borders with neighbouring countries, (iv) economic and infrastructural backwardness and (v) non-viable nature of State finances," the government's response said.
"Earlier, the request of Bihar for Special Category Status was considered by an Inter-Ministerial Group (IMG) which submitted its Report on 30th March, 2012. The IMG came to the finding that based on existing NDC criteria, the case for Special Category Status for Bihar is not made out," it added.
The government sources have said that no additional states are being granted Special Category Status as the Constitution does not provide any such categorisation.
The 'special status' to Bihar has long been a longstanding demand of the JD(U).
JD(U) leader Sanjay Kumar Jha had voiced his party's demand for the status at an all-party meeting on Sunday. Chirag Paswan's Lok Janshakti Party (Ram Vilas), also a BJP ally, and the opposition RJD echoed the same demand at the meeting.
RJD supremo Lalu Prasad took a jibe at the Bihar Chief Minister by saying, "Nitish Kumar appears to have compromised Bihar's aspirations and the trust of its people for the sake of power. He had promised to secure special status for Bihar, but now that the Centre has denied it, he should resign."
Lalu's Rashtriya Janata Dal (RJD) also took a swipe at Nitish Kumar by saying, "Nitish Kumar and JDU leaders must enjoy the fruits of power at the Centre and continue their drama politics on special status."
Union Minister Giriraj Singh hit back at the RJD saying Yadav, who had close ties with Congress and was called 'kingmaker' could have got special status for Bihar, but he did not do so.
“I am laughing at RJD and Lalu Yadav raising this issue. When Lalu Yadav was called the ‘kingmaker’ and had close ties with Congress, he could have gotten special status for Bihar, but he did not do so. At a time when Nitish Kumar is the Chief Minister (of Bihar) and Modi is the Prime Minister, no efforts will be left and the treasury will be opened for Bihar’s development," Union Minister Giriraj Singh said.
The BJD and the YSR Congress had made the same demand for Odisha and Andhra Pradesh respectively in the meeting. The government has in the past also argued that the 14th Finance Commission report has ruled out the possibility of any more states being granted the status, which includes tax relief and higher central funding for the beneficiary states.