" I heard Dr Gupta stating that the composite index being devised by Raghuram Rajan committee will be used for devolution of funds to states. To be fair to him, he avoided stating that the aforesaid index would be used for determining 'special state status' unlike our JDU spearheads. Still, he could not avoid sending out a wrong impression. For these criteria are to be used only for distribution of funds under backward region grant funds and not for devolution of consolidated tax revenue of India. I believe he would be aware that consolidated funds can only be devolved using finance commission formula. Already, the 14th finance commission is working on an appropriate formula under the chairmanship of Dr Y V Reddy. It would be better if Dr Saibal Gupta chooses his words carefully so as not to send out wrong impression on this very sensitive matter.

Decision on special state status can be taken only by National Development Council.  I believe that JDU Leaders and CM are not so gullible as to be misled by these antics of Central Government. Yet, if they decide to portray this as a forward movement on special state status, it would amount to playing pranks on unsuspecting people of Bihar. Moreover, I do not understand how finance minister on his own can set up a committee to determine criteria for grant of Special State Status. If at all such a committee has to be set up  to recommend special state status, I would expect it to be backed by a resolution of union cabinet.

This committee looks more like a follow up committee on the recommendations of the plan panel to distribute backward region grant fund using a backwardness index. So the current exercise at most can mean a few hundred crores more for the state. Am I correct Dr Gupta?  Nandu Babu, you have a better understanding of government mechanism and processes. Perhaps you can help explain such finer aspects much better to your fellow party-men and also to CM Bihar.

In my opinion, Bihar would be better served if it can get Federal Government, CPSUs etc to invest more in Bihar. Federal government should be forced to invest in developing an Economic Corridor, building Physical Infrastructures (rail, road, irrigation, gas, power, urban infrastructure), setting up Institutes (Higher Education, Scientific Research, Specialist, Tertiary Healthcare)  and opening up offices of  CPSU & Nodal agencies in Bihar, at least on par with other states if not more. Hope CM is listening."