Minister of State for Home Jitendra Singh informed the Rajya Sabha that the creation of any new state has wide ramifications and direct bearing on the federal polity of the country. "The government of India moves in the matter only when there is a broad consensus in the parent state, that one part thereof may be separated to form a new state.
Government takes decision on the matter of formation of new states after taking into consideration all relevant factors. Action by the government would depend on the felt need and general consensus," he said in a written reply.
The Minister said under the backward regions grant fund, Central assistance is granted to identified backward districts /regions. Besides, state-specific need based special dispensation is made as and when required through existing programmes, schemes under annual/five year plans.