New Delhi: The Union Government is not considering any proposal to grant Special Category Status (SCS) to Odisha, Union Minister of State for Finance Pankaj Chaudhary informed Parliament.
Responding to queries raised by BJD MP Dr. Sasmit Patra, the Minister gave a categorical reply that there is no proposal under consideration of the Union Government for granting Special Category Status to the State of Odisha.
Dr. Patra had asked whether the Centre was considering granting SCS to Odisha, the present status of such consideration, the timeline for recognition, and, if not, the reasons for denial.
In his written response, Chaudhary explained that in the past, Special Category Status for plan assistance had been granted by the National Development Council (NDC) to certain states that required special attention due to factors such as hilly and difficult terrain, low population density or a large tribal population, strategic international borders, economic and infrastructural backwardness, and non-viable state finances. The decision, he said, was based on an integrated assessment of these parameters and the peculiar situation of each state.
The Minister further noted that the Fourteenth Finance Commission (FFC) did not differentiate between General and Special Category states while recommending the horizontal devolution of central taxes. Based on its recommendations, the share of net divisible taxes to states was increased from 32 per cent to 42 per cent for the period 2015–20.
This arrangement, he added, has effectively continued, with the Fifteenth Finance Commission retaining the states’ share at 41 per cent—adjusted by one per cent following the creation of the Union Territory of Jammu & Kashmir—for the award period up to 2025-26. The Sixteenth Finance Commission has also recommended maintaining the 41 per cent share for 2026-27 to 2030-31.
The Union Minister said the Government of India continues to assist Odisha in addressing socio-economic and disaster-related challenges through Centrally Sponsored Schemes, support from the National Disaster Response Fund (NDRF) and the State Disaster Response Fund (SDRF), special packages approved from time to time, and other developmental interventions aimed at strengthening infrastructure, improving livelihoods and enhancing resilience to natural calamities.
Reacting to the statement, Dr. Patra said the demand for Special Category Status has long been raised by the Biju Janata Dal.
“For a decade, under the hon’ble leadership of Shri Naveen Patnaik ji, the BJD has demanded this as a matter of right, not a favor. It is shameful that the BJP, which made this their #1 manifesto promise in 2014, has now betrayed the 4.5 crore people of Odisha. The “Double Engine” has failed Odisha. We will not compromise on our state’s dignity and rights.,” he said.