Lok Sabha Question No. 24 (UNSTARRED), answered on 2020-02-03
Subject: Special Category Status
Ministry: FINANCE
Asked by: Srinivas Kesineni

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE LOK SABHA UNSTARRED QUESTION NO. 24

TO BE ANSWERED Monday, February 3, 2020/Magha 14, 1941 (Saka)

## Special Category Status

## 24. SHRI KESINENI SRINIVAS:

Will the Minister of FINANCE be pleased to state:-

- (a) the details of criterion used by the Ministry to assess whether a State is eligible to get special category status;
- (b) whether special category status was promised to the present State of Andhra Pradesh at the time of  bifurcation in 2014 and if so, the details thereof;
- (c) the details of reasons as to why Andhra Pradesh has been denied special category status;
- (d) whether  any  proposal  or  demands  have  been  received  by  the  Ministry  for  granting  special category status to Andhra Pradesh since 2014 and if so, the details thereof; and
- (e) whether the Ministry is considering to grant special category status and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)

(a):  Special  Category  Status  for  plan  assistance  has  been  granted  in  the  past  by  the  National Development Council (NDC) to States that are characterized by a number of features necessitating special consideration. These features include: (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 decision to accord Special Category Status to a particular State was taken by the NDC based on an integrated consideration of all factors listed above and the peculiar situation of the State.

(b)  to  (e):  The  then  Prime  Minister  on  20 th February,  2014  had  announced that  'Special  Category Status would be extended to the State of Andhra Pradesh for a period of five years. This would be done  to  put  the  State's  finances  on  firmer  footing'.  However,  following  the  recommendations  of Fourteenth  Finance  Commission  (FFC),  the  class  of  Special  Category  States  ceases  to  exist.  The Central  Government  being  committed  to  support  the  development  of  the  newly  formed  State  of Andhra  Pradesh  and  keeping  in  mind  the  obligations  emanating  from  the  Andhra  Pradesh Reorganisation  Act,  2014;  the  recommendations  of  the  FFC;  the  report  dated  01.12.2015  of  Vice Chairman, NITI Aayog on 'Developmental support to the successor State of Andhra Pradesh under Andhra  Pradesh  Re-organisation  Act,  2014'  and  the  requests  of  the  successor  State  of  Andhra Pradesh provided the Special Assistance Measure to the successor State of Andhra Pradesh, which would  make  up  for  the  additional  Central  share  the  State  might  have  received  during  2015-16  to 2019-20, if the funding of Centrally Sponsored Schemes (CSS) would have been shared at the ratio of  90:10  between  the  Centre  and  the  State.  The  special  assistance  will  be  provided  by  way  of repayment of loan and interest for the Externally Aided Projects (EAPs) signed and disbursed during 2015-16 to 2019-20 by the State.

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