Montek Singh favours special package for poor Bihar

Planning Commission's Deputy Chairman Montek Singh Ahluwalia strongly favours need for a special package and help for poor Bihar in place of special category state status repeatedly demanded by chief minister Nitish Kumar.

"I am aware that Bihar has special problems and facing difficulties.There should be special package and help for Bihar to get rid of problems and difficulties" Ahluwalia, who in Patna to attend two day regional consultation, with five eastern states on the approach paper to be finalised by the Planning Commission, told rediff.com.

Ahluwalia has already made it clear that Bihar demands for special category state status is neither on the agenda nor it is our subject to discuss at ongoing planning commission meeting in Patna.

"Only National Development Council (NDC) can discuss and give Bihar the special category state status as it comes under its purview. The planning commission can only go for special package and help to Bihar" Ahulwalia said.

He admitted that like Bihar, other poor states also demanded the special category state status. "It is not only Bihar, similar demand was made by other states" he said.

Ahulwalia said that planning commission recognises Bihar's problems and to remove them it gets a special package of Rs 1000 crore (Rs 10 billion), which be followed by an additional Rs 2000 crore (Rs 20 billion).

Besides, Bihar is covered under the Gadgil formula by which it gets more money.

He said that once a state was granted the special category state status, it might open a Pandora's box leading to decline in central assistance to other states.

After coming to power in November 2005, Nitish Kumar has been repeatedly raising the demand for special category state status. But so far central government's response has not been so positive.

Opposition RJD, Congress and left parties questioned Nitish Kumar for demanding special category state status.

Opposition leaders said that Nitish Kumar had never sought the same, when he was the union minister during the NDA rule.