Odisha chief minister has demanded special category status from Central Government for his disaster-prone state.He said that Odisha faces natural calamities almost every year.
There is no provision of special category status in the Constitution,the Central government extends financial assistance to states that are at a comparative disadvantage against others.The concept of SCS emerged in 1969 when the Gadgil formula (that determined Central assistance to states) was approved.
The guidelines for getting SCS status includes:(a)hilly and difficult terrain (b)low population density or the presence of sizeable tribal population (c)strategic location along international borders,(d)economic and infrastructural backwardness and (e)non-viable nature of State finances.
Initially,three states namely (a)Assam (b)Nagaland and (c)Jammu & Kashmir were accorded special category status.And later on eight other states were also given special category status namely:(d)Arunachal Pradesh (e)Meghalaya (f)Mizoram (g)Uttarakhand (h)Tripura (I)Himachal Pradesh(j)Sikkim and (h)Manipur.However,Manipur lost the special category status owing to the Fourteenth Finance Commission recommendations.
Following the constitution of the NITI Aayog and the recommendations of the 14th Finance Commission (FFC),Central planned assistance to SCS States has been subsumed in an increased devolution of the divisible pool to States (from 32% in the 13th FC recommendations to 42%).
SCS states enjoy concessions in excise and customs duties and income tax rates.Besides,assistance to Centrally Sponsored Schemes for SCS States is given with 90% Central share and 10% State share.
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