Bihar’s wait for central funds to execute infrastructural projects lingers on

As many as seven departments including road construction, energy, health, water resources, industries, rural workers department have been waiting for their allocated funds

Procedural delays in release of special assistance from the Centre continues to halt the execution of several key infrastructure projects of various departments in Bihar.

The financial assistance will be provided to the states as interest-free loans to be returned in next 50 years. (File image | Representative)

As many as seven departments including road construction, energy, health, water resources, industries, rural workers department, and science & tech departments have been waiting for their allocated funds to the tune of ₹8,046 crore to carry out their pending works.

Earlier in April this year, the Central government had announced special assistance of ₹1 lakh crore to the state governments to help them tide over the revenue crunch as the fall out of Covid pandemic and carry on with the capital investments in the duly approved projects in the 2022-23 fiscal.

The assistance will be provided to the states as interest-free loans to be returned in the next 50 years.

A senior officer of the finance department, familiar with the matter, said the state government started submitting the proposals under the set guidelines to the Centre in July and August in three batches.

The major projects awaiting funds include construction of new premises of Patna medical college and hospital (PMCH), Patna ring road, Danapur-Bihta elevated road corridor, construction of a four-lane bridge on river Ganga in Patna, logistics park in Gaya, engineering and medical colleges, revamping of domestic power supply network.

“Roads and logistics parks proposals have been stuck up for want of land acquisition,” said an executive officer of the road construction department (RCD).

Officials said proposals worth ₹1,858.26 crore of RCD, ₹1,687.78 crore of energy, ₹1,413.88 crore of health, ₹950 crore of water resources, ₹887.95 crore of industries, ₹778.58 crore of rural works department and ₹469.54 crore of science and technology department were sent and got approval by the Central government.

“The assistance is being provided from the first lot of ₹80,000 crore fund allocated by the Centre under the special assistance, while the rest ₹20,000 crore would be disbursed in the next seven-eight instalments later this year. Proposals worth ₹200 crore from Bihar have also been sent to the Centre for assistance under the head at later stages,” said the official, adding that the state is getting the share in fund according to the norm devolution, which accounts for around 10.058% in the sum.