'Special Category' Eludes Bihar, But Nitish Kumar's NDA 'Ghar Wapsi' Bags State Special Package

Nitish Kumar's alliance with the NDA has secured Bihar a special package in the Budget. The package includes funding for industrial development, infrastructure, roads, and power generation projects.

Nitish Kumar's 'ghar wapsi' to NDA just before the Lok Sabha elections did not go overlooked as Bihar finally got the special package it was looking for in the Union Budget. Nitish Kumar's frequent change of alliances to stay on as the Chief Minister of Bihar had earned him the moniker 'Palturam'. But his political manoeuvres seem to have borne fruit as Finance Minister Nirmala Sitharaman granted the JD(U)-ruled state the special package it was demanding.

This was expected as Nitish Kumar with 12 MPs in Lok Sabha was one of the two key allies who put Narendra Modi in the Prime Minister's chair after the Lok Sabha elections 2024. The other key ally is Chandrababu Naidu, CM of Andhra Pradesh, which got Rs 15,000 crore this year to develop Amravati as a capital.

Bihar had been asking for 'special category status' since 2011-12. Till 2014, 11 states were granted the Special Category Status. However, after the dissolution of the Planning Commission in 2014, no additional state was granted the status. Bihar was asking for both special category and special package for itself. However, right before the Union Budget was presented, the Modi government ruled out the possibility of Bihar getting a 'special category' status as the Constitution did not provide for the same.

Bihar Now Under Mission Purvodaya

Bihar will be brought under the 'Purvodaya' project for the state's all-around development. 'Mission Purvodaya' was launched in 2020 to develop eastern India by establishing a steel hub in Kolkata, Bengal.

The project now includes Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

According to Nirmala Sitharaman, Bihar's special grant will cover human resource development, infrastructure, and, the generation of economic opportunities to make the region an engine for the Modi government's aim of a 'Viksit Bharat' (Developed India). 

What Did Bihar Get in Union Budget 2024?

The Centre will provide support in establishing an industrial node in Gaya on the Amritsar-Kolkata Industrial Corridor. "This corridor will catalyse industrial development of the eastern region. The industrial node at Gaya will also be a good model for developing our ancient centres of cultural importance into future centres of modern economy," Sitharaman said.

The Centre will contribute to the development of road connectivity projects — Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, Bodhgaya, Rajgir, Vaishali, and Darbhanga, and an additional two-lane bridge over Ganga in Buxar. FM Nirmala Sitharaman has allocated Rs 26,000 crore for these projects.

Additionally, the state will be able to take up power generation projects with the Centre's help. This will include setting up a new 2400 MW power plant at Pirpainti in Bhagalpur district at a cost of  Rs 21,400 crore. 

Moreover, the Centre also has plans for new airports, medical colleges, and sports facilities in Bihar. "An additional allocation to support capital investments will be provided. The requests of the Bihar Government for external assistance from multilateral development banks will be expedited," Nirmala Sitharaman said during her Budget presentation.

Emphasis will be laid on increasing tourism in Bihar. On the lines of Kashi Vishwanath temple corridor, a 'Mahabodhi Corridor' will be built in Bihar and 'Saptarishi Corridor' in Nalanda. This will help Rajgir become a big tourist attraction. Tourism will develop in Nalanda. Nalanda University will also be developed as per the Budget 2024 allocation. 

"Rajgir holds immense religious significance for Hindus, Buddhists and Jains.  The 20th Tirthankara Munisuvrata temple in the Jain Temple complex is ancient. The Saptharishi or the 7 hotsprings form a warm water Brahmakund that is sacred. A comprehensive development initiative for Rajgir will be undertaken.  Our government will support the development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature," Sitharaman said.

JD-U spokesperson Neeraj Kumar said the state was relieved by Sitharaman's Budget allocations for Bihar. "Rs 26,000 crore has been allocated for road construction. We are keeping our hopes high.