Patna,(BiharTimes): Better late than never. The former Bihar deputy chief minister, Sushil Kumar Modi, has once again put the special category status in proper perspective and alleged that chief minister Nitish Kumar had been deliberately misinforming and confusing the people of the state.

Attacking his former boss for the second time within a week on this issue Modi told the media on Wednesday that Nitish had been misleading people of Bihar by claiming that investors would automatically get various tax incentives once the state gets special category status. 

The fact, according to Modi, is tax incentives have no automatic linkage with the special status.

He said Centre has all discretionary powers to extend tax incentives to investors in the special category status and that too for a limited period. In addition, tax incentives do not come automatically to a state upon grant of special category status on a particular date. 

To buttress his points he cited the examples of several states. 

Modi added that it was for the Centre to decide as to when it wants to give tax benefits to a state and specify sets of industries getting the benefits.

He said while Himachal Pradesh got the special status in 1971 it got the industrial incentive package from the Centre in 2003, and that too, for only seven years.

Similarly, Jammu and Kashmir was accorded special status way back in 1969 but the industrial incentive package was given to the state in 2002 by the then Vajpayee government and that too for 10 years. It was extended for another five years.

Uttarakhand, which came into existence only in 2000, was the last of 11 states to get special status in 2001. But the state got the industrial incentive package in 2003 for only 10 years, he explained. 

Thus all these states got industrial incentive packages during the NDA rule.

Modi, who held the portfolio of state’s finance minister for seven and a half years, further added that the package comprising capital investment subsidy, interest subsidy, comprehensive insurance subsidy and excise exemption have not been provided uniformly to all the special category status. 

Apart from that plastic industries, rice, flour and paper mills, asbestos and cement factories, soft drink and tobacco firms, distilleries and petroleum refineries located in the special category states have been kept out of purview of tax incentive package.

He asked as to how the Nitish Kumar government would be able to maximise gains after grant of special status in the absence of infrastructure like land, power and road. 

Yet Modi said all political parties––and not Janata Dal (United) alone––should be taken on board to put pressure on the Centre to grant special status to Bihar.

He clarified that his party too favoured special status for Bihar and the issue would figure during the Hunkar Rally in Patna on October 27.

BJP’s campaign committee chairman, Narendra Modi, would be the chief speaker.