Union Budget 2024: FM Sitharaman announces Rs 26,000 cr aid for Bihar

India Budget 2024: Finance Minister Nirmala Sitharaman said that the Centre will support setting up a 2400 MW power project in Bhagalpur at the cost of Rs 21,400 crore as well

The Union Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024 in the Lok Sabha on Tuesday (July 23), announced comprehensive development plans for Bihar.

Announcing the ‘Purvodaya’ scheme for enhancing the all-round development of the eastern region including Bihar, Jharkhand, West Bengal, Andhra Pradesh, Odisha, the FM said that the Centre will focus on human resource development, infrastructure growth and create generations of economic opportunity to fasten the government’s aim of ‘Viksit Bharat’.

Additionally, talking about Bihar, Sitharaman announced a slew of Central plans including developing the Amritsar-Kolkata industrial corridor, with Gaya as its industrial node. She said that this move will catalyse industrial development of the eastern region. Revealing the plan, she said that the transformation of Gaya will serve as a good model for “developing ancient centres of cultural importance into future centres of modern economy.” 

 

“This will showcase ‘Vikas bhi, virasat bhi,” she said.

Major infra boost for Bihar

For infrastructure development in the state, the Finance Minister announced a Rs 26,000 crore package to support the development of road connectivity projects. These include developing the Patna-Purnia expressway, Buxar Bhagalpur expressway, and an additional two-lane bridge over river Ganga in Buxar.

She further announced the construction of a power project including 2,400 megawatt at Pirpainti, Bhagalapur billed at Rs 21,400 crore.

The FM also said that new airports, medical colleges and sports infrastructure will be built in Bihar. Notably, she also announced the allocation to support capital investment will be provided. 

Bihar to receive expedited MDB assistance

Furthermore, Sitharaman said that the request of Bihar government for assistance from Multilateral Development Banks (MDBs) will be expedited.

These announcements came a day after the ruling Bihar government, led by the Janata Dal (United), a key BJP ally, had strongly argued for a special financial package for the State to be granted during the Budget Session. 

The Centre has already ruled out granting special category status to the State, a long-standing demand of the JDU. The JDU made its demand at Sunday’s all-party meeting.