New Delhi: Special Category Status (SCS) in India is a designation granted to certain states by the central government, providing them with preferential treatment in financial assistance, resource allocation, and other benefits. This status is intended to address specific developmental needs and challenges faced by these states due to various factors such as difficult terrain, low population density, strategic location, and economic backwardness.What is special category statusIndia, known for its extensive democratic framework and the worlds longest constitution, has implemented various commissions and statuses to aid in the balanced development of its states. Special Category Status was introduced by the Fifth Finance Commission in 1969 to help states overcome unique challenges and ensure their growth and development despite diverse demographic and economic conditions.Let us dive into what Special Category Status (SCS) entails and why states like Bihar and Andhra Pradesh, key alliance partners in the NDA, are seeking this designation.What Is Special Category Status (SCS)Special Category Status (SCS) is a classification given by the central government to certain states based on specific criteria. States that qualify for SCS receive preferential treatment in the allocation of central funds, tax breaks, subsidies, and infrastructure development assistance. The status aims to mitigate the disadvantages these states face due to factors like hilly and difficult terrain, low resource base, strategic location along borders, and economic backwardness.States that have acquired SCSOver the years, several states have sought Special Category Status to address their developmental challenges:Andhra Pradesh: After the bifurcation in 2014 that created Telangana, Andhra Pradesh sought SCS due to the loss of the revenue-generating capital city, Hyderabad, and the perceived economic disadvantages for the residuary state.Bihar: Bihar has long advocated for SCS due to its high population density, low per capita income, inadequate infrastructure, and persistent socio-economic issues. The state argues that SCS would provide necessary resources to tackle poverty, unemployment, and underdevelopment.Odisha: Odisha has demanded SCS, citing its vulnerability to natural disasters like cyclones. The state believes that SCS would enable better disaster preparedness and recovery, along with addressing broader developmental needs.Assam: Assam seeks SCS due to its complex socio-political landscape, including ethnic diversity and insurgency issues. The state contends that SCS would facilitate greater investment in infrastructure, education, and healthcare to address these challenges.How can states qualify for a special category statusThe central government, based on recommendations from expert committees and commissions, ultimately decides the granting of Special Category Status. In recent years, the criteria for SCS eligibility have become more stringent, and the government has been cautious about extending this status due to concerns over fiscal implications and its impact on other states.Some states have had their SCS demands rejected due to inadequate justification, lack of political consensus, or financial concerns. Alternative schemes like Special Assistance to States and the Finance Commissions recommendations for fund devolution have been introduced to address states developmental needs without necessarily granting Special Category Status.Special Category Status in India plays a crucial role in supporting states with unique developmental challenges. While the criteria and granting of SCS have become more stringent, the central government continues to explore alternative measures to ensure balanced growth and development across the nation.
