Budget 2024: FM announces ₹26,000 crore bonanza, airports, medical colleges for BJP ally JDU-ruled Bihar

Finance minister Nirmala Sitharaman, presenting the Union budget on Tuesday, opened up central government coffers for Bihar, announcing a ₹26,000 crore package to support various infrastructure projects of key ally Nitish Kumar of Janata Dal (United). 

The package will help boost state infrastructure, promote tourism, and enhance healthcare and connectivity, Sitharaman said in her Union budget speech for fiscal year 2025 (FY25).

"The union government will arrange financial assistance to Bihar through aid from multilateral development agencies," the finance minister, presenting her seventh annual budget and the third under the Modi 3.0 government, added.

These announcement comes a day after the Centre rejected the JD(U)’s request for ‘special category’ status for Bihar during an all-party meeting. 

Budget 2024: Allocation and projects

The minister said ₹20,000 crore will be allocated for highways in the state. The government will also set up airports, medical colleges and sports infrastructure in Bihar.

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"We will also support development of road connectivity projects namely--Patna-Punia Expressway, Buxar-Bhagalpur Expressway...and additional two lane bridge over Ganga at Buxar at total cost of ₹26,000 crore,” she said.

Power projects including setting up of a new 2400 MW power plant at Pirpainti will be taken up at the cost of ₹21,400 crore.

The government will also provide ₹11,500 crore to the state for flood mitigation.

SMIFS Research has said the that the ₹26,000 crore infrastructure development package will provide a boost to road players such as PNC Infratech, HG Infra and construction companies like Ahluwalia and NCC.

Gaya industrial node

The central government, led by Prime Minister Narendra Modi, will support the construction of an industrial corridor to develop the eastern region. Gaya in Bihar will be developed as an industrial node.

Describing the eastern part of the country as being rich in endowment, she said, “We will support construction of industrial node at Gaya... 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”.

More here | Budget 2024 : Agriculture, R&D, infra and employment-- Nirmala Sitharaman unveils 9 priorities. All you need to know

This model shall showcase 'Vikas Bhi Virasat Bhi' in the growth trajectory.

Bihar tourism boost

To promote Bihar as a prominent global tourist destination, the finance minister unveiled plans to develop a tourism corridor in Bodh Gaya, a crucial holy site for Buddhists worldwide.

The Bodh Gaya temple corridor will be modelled on the Kashi Viswanath Temple corridor in Uttar Pradesh's Varanasi. “Special funds have also been provided for the Rajgir Jain temple site”, she added

Budget 2024-25 also included initiatives for redeveloping Nalanda as a religious tourist destination and the Nalanda University, the hometown of Bihar chief minister Nitish Kumar and a significant religious centre for Jains, aiming to enhance its cultural and religious appeal.