Why does the Odisha government seek special category status from the Centre? A special category status will enable a state to get 90 per cent grant and 10 per cent loan from the Centre whereas all other states now get 30 per cent grant and 70 per cent loan. The basic arguments put forth by Odisha are that the state is way behind national social indicators such as progress in health, infant mortality, tribal development, railway networking and so on. So, like the northeastern and hilly and strategically located states, Odisha should also be accorded the same status.

Outwardly, it sounds quite reasonable when the backwardness of the states such as Odisha and Bihar is evoked to get the status.

According to the Gadgil formula, a state having hilly and difficult terrain, low population density or sizeable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructural backwardness and the non-viable nature of state finance were the conditions. But, in spite of not meeting the criteria, the state craves for such a status.

In Odisha, no party had made “development” its major election issue in any of the elections. Doling out rice at Re 1-a-kg, free blankets, cycles, umbrellas and mobile phones have been a major part of their campaign. Even a large part of a recently formulated “youth policy” in Odisha is doling out Rs 10,000 to youth clubs. The Re 1 per kg rice and the rural job schemes have reduced the availability of the agricultural labour, thus putting farmers into a great deal of difficulty.

The biggest foreign direct investment to India, Posco has not yet been able to start constructing its factory. This shows a lack of determination and courage on part of the state government. The Tata group has not yet set up its steel factory at Kalinganagar, Jajpur and the Mittals has almost abandoned the idea of setting up a steel plant in Keonjhar. As the Odisha government is unable to provide bauxite to the Vedanta plant in Lanjigarh, it has closed down production since December last.

While many states have availed the second phase of the yojana, Odisha is yet to complete the first phase of work.

All these show the lack of efficiency, not lack of resources, on the government’s part. The incapability is reflected in the refund of central government assistance almost every year, as it could not be utilised. Should a state be accorded special category status because it is inefficient? It is practically making inefficiency a virtue. If on paper, the economic progress of Odisha looks promising, it is only because of its past low base.

For what does the government require the extra money? Is it for doling out rice, umbrella, cycles and blankets? It is like making poverty a blessing. Should the assistance come for boosting productivity by building quality infrastructure, enhancing the quality of education, providing good governance or for giving away cheap and free stuff?

It seems the demand for special category status by Odisha is basically a political necessity and slogan for the BJD since the anti-incumbency feelings against the government is very strong. It wants to cover up for its lack of vision, efficiency and transparency. But, this has generated a beggary mentality among the Odias, who, the state government thinks, should thrive on the mercy of the Centre. If Odias want prosperity in the real sense, they must do away with this mentality. A nation with mental poverty will never rise. No special category state has shown any significant prosperity in spite of such help. They are highly corrupt, too.

Whatever resources are available, if utilised with imagination and efficiency, will definitely usher in economic growth and eradication of poverty. Taking up proper planning before project implementation will lead to efficient utilisation of funds. Good governance, vision, sense of priority can only lead to prosperity.