The Centre’s special committee on Thursday discussed points that need to be taken into account while deciding a state’s backwardness vis-à-vis national average for according it special category status.

“The meeting lasted about two hours and our focus was to finalise the index which would form the basis for deciding backwardness of states,” a participant said over phone from Delhi. The committee has to submit its report by July 15. At its next meeting, on June 19, the panel would fine-tune points before giving final suggestions. The timing of the report is significant. “If the panel report gives the Centre scope to offer some doles to Odisha and Bihar, it can use it as a political weapon to win new allies before the next polls,” said a political observer. In fact, when Union finance minister P. Chidambaram announced setting up of the panel during his Bihar visit on May 11, many had seen it as a move to keep Nitish in good humour. With the distance between Nitish and the BJP growing, observers feel the panel report would shape ties before the next Lok Sabha polls. “A favourable report and subsequent help from Centre may give Nitish a ground to support the Congress after breaking up with the BJP,” said an observer. This is the panel’s second meeting. The panel was set up on May 15, under the chairmanship of Raghuram Rajan, chief economic adviser in the finance ministry. Five other members are Indian Statistical Institute professor Bharat Ramaswami, Jamia Millia Islamia vice-chancellor Najeeb Jung, professor at the centre for study of law and governance at JNU Niraja Gopal Jayal, planning commission adviser Tuhin Pandey and Asian Development Research Institute member secretary Shaibal Gupta.