The Union cabinet today approved an increase of Rs 1,000 crore in the grant for setting up infrastructure projects in Bihar during the current financial year, under the Backward Regions Grant Fund (BRGF) scheme.
The BRGF, approved by the government four years earlier, was being implemented in the state through a Special Plan, allocated Rs 1,000 crore annually over the entire 11th Plan (2007-12). However, the total cost of the projects which were to be set up under the Bihar Special Plan had seen a 57 per cent rise to Rs 8,753 crore since the August 2006 calculation.
Against this, around Rs 5,285 crore had been released for socio-economic development in the state till March. “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 Rs 1,468 crore in 2011-12,” said a government statement.
Infrastructure projects from the power, road and irrigation sectors are being put in place through the Special Plan for Bihar under the BRGF scheme.
In another decision, the cabinet approved a proposal for budgetary support of Rs 70.4 crore for liquidation of statutory dues and wages of employees of 10 loss-making central public sector enterprises (CPSEs) under the department of heavy industries.
