CCEA approves Rs1,000 crore hike for Bihar plan

In a move clearly aimed at spurring socio-economic development in Bihar, the centre's Cabinet Committee on Economic Affairs (CCEA) yesterday approved a proposal for hiking the allocation for the special plan for Bihar from Rs1,000 crore to Rs 2,000 crore in 2010-11.

The fund would also be upped to Rs1,468 crore in 2011-12 based on the enhanced level of cost of Rs 8,753 crore of the projects.

"Central government agencies are involved in the implementation of these projects. Through the special plan for Bihar, infrastructure, particularly power, roads, and irrigation, is being put in place," the centre said in a statement.

Funded under the Backward Regions Grant Fund (BRGF), the fund has an annual allocation of Rs1,000 crore on 100 per cent grant basis during the 11th plan period. The aggregate cost of projects approved for funding under the special plan for Bihar stood at Rs5,568 crore at the time of approval of the BRGF in August 2006. The cost has now gone up to Rs8,753 crore due to which additional funds had been allocated.

"Against this cost, an amount of Rs 5,285 crore has been released till the end of 2009-10 leaving the balance amount of Rs 3,468 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 1,000 crore to Rs 2,000 crore in 2010-11 and the balance amount of Rs 1,468 crore in 2011-12," said the statement.

According to deputy chief minister Sushil Kumar Modi, the enhanced allocation was the balance part of the special package announced by the then NDA government at the centre after the division of Bihar to create Jharkhand.

In his recent meeting with the prime minister, chief minister Nitish Kumar had pleaded for release of a substantial amount under a single instalment to utilise the fund more meaningfully which was the reason for the enhanced allocation he said.