Cabinet approves Special Plan for Bihar

The Cabinet Committee on Economic Affairs has approved the proposal to enhance the allocation for the Special Plan for Bihar from the current level of Rs.1000 crore to Rs.2000 crore in 2010-11 and to the extent of Rs.1468 crore in 2011-12, based on the enhanced level of cost of Rs.8753 crore of all the projects.

Central Government agencies are involved in the implementation of above projects. The aim of the programme is to accelerate socio-economic development in Bihar. Through the special plan for Bihar, infrastructure particularly power, roads, and irrigation is being put in place.

The special plan for Bihar is currently being funded under the Backward Regions Grant Fund (BRGF) with an annual allocation of Rs.1000 crore on 100% grant basis during the XI five year plan period.

The total cost of all the projects approved for funding under the Special Plan for Bihar was Rs.5568 crore at the time of approval of the BRGF in August, 2006. This cost has now increased to Rs.8753 crore.

Against this cost, an amount of Rs.5285 crore has been released till the end of 2009-10 leaving the balance amount of Rs.3468 crore to be released during 2010-11 and 2011-12. It has, therefore been decided to enhance the allocation from the current level of Rs.1000 crore to Rs.2000 crore in 2010-11 and the balance amount of Rs.1468 crore in 2011-12.