SCS was awarded by the National Development Council to disadvantaged regions. Factors considered include difficult terrain and infrastructural backwardness.
These states got 90% funds for centrally-sponsored schemes.
But the 14th Finance Commission "constitutionally" ruled out SCS .
Instead, divisible pool to all states was increased from 32% to 42%.
Devolution includes variables like "forest cover," which could benefit the northeast previously under SCS.
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Why is AP demanding SCS?
Under the AP Reorganisation Act, 2014, as its capital Hyderabad moved to the new Telangana, AP was assured SCS due to the resultant revenue loss. Former PM Manmohan Singh had said that SCS would be "extended to AP's successor state...for a period of five years."
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Yesterday, FinMin Arun Jaitley ruled out SCS for AP, saying such treatment is now restricted to northeastern and Himalayan states.
However, he agreed that AP is financially suffering and assured the Center would provide "monetary equivalent" of SCS to AP; thus, it would give 90% funds to all of its programs.
For AP, a provision of revenue deficit has also been made, he said.