The Prime Ministers Office has asked the minority affairs ministry to bring to the Cabinet Committee on Political Affairs a formal proposal on reservation for Muslims within the OBC category.
The government is also pushing to add 69 districts to the PMs Multi-Sectoral Development Programme (MSDP) for districts with large minority populations.
Sixteen of these 69 districts are in Uttar Pradesh. The poll-bound state now stands to have 37 districts nearly half of all its districts benefiting from the Rs 3,780-crore scheme.
The move on reservations for Muslims has revived a sensitive debate within the government. The minority affairs ministry appeared initially to drag its feet,sources said. It argued that the social justice ministry headed by Mukul Wasnik should move the cabinet note,as the matter essentially requires an amendment to the OBC list.
However,Minority Affairs Minister Salman Khurshid was told that he would have to inspire the move,regardless of which ministry piloted the note.
Along with its letter to the minority affairs ministry,the PMO,it is learnt,also passed on a detailed representation on the matter to the PM by some 30 MPs,mostly from the Congress.
Subsequently,the top Congress leadership had a word with Khurshid,sources said,following which his ministry appears to have initiated some discussions.
The Ranganath Misra committee had recommended quotas for Muslims within an overall minority bracket,and suggested an alternative to sub-categorisation within OBC. Both these options are available to the government,the sources added.
The Congress manifesto for the 2009 Lok Sabha election had promised reservation for minorities within the OBC quota on the lines of Kerala,Karnataka and Andhra Pradesh.
In the other poll-related move on extending MSDP benefits to more districts,the government has recommended to the Planning Commission to relax the eligibility criteria for districts with minority population.
According to existing criteria,districts with 25 per cent minority population qualify for the special funding scheme; those with 20-25 per cent minority population can be considered provided the total minority population is 5 lakh or more.
But with the UP elections ahead,the minority affairs ministry was asked to set up an expert group after it was revealed that districts like Aligarh did not make the cut. The group recommended that either funding should be dispersed at the block level or eligibility should be changed to 15 per cent minority population.
The ministry has backed reducing the cut-off population figure,saying it does not have block-level data for minority communities.
The steering group of the Planning Commission will consider the matter next week to incorporate the changes in the Twelfth Plan. A positive decision is expected.