What all benefits special category states receive? Along with the Finance Commission-mandated devolution formula that currently stipulates transfer of 32% of the Centre’s gross tax revenue to states, the special category states—there are 11 such states right now of India’s total 28—are entitled to get 30% of the Centre’s Plan assistance. That apart, special category states get 90% of the total central assistance to state Plans as grants and the rest 10% as loans (the ratio for other states is 30% grants and 70% loans). The Centre gives full exemption from excise duties to companies setting up industrial units in special category states for the first 10 years of production besides income tax exemption of 100% for the first five ...

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