The total assistance promised by the Centre to Bihar, ahead of assembly elections in the state next year, is for ₹58,900 crore.
This is made up of ₹26,000 crore for the construction of highways and a 2-lane bridge on the river Ganga at Buxar, ₹21,400 crore for power projects, including a new 2400 MW power plant at Pirpainti in Bhagalpur district, and another ₹11,500 crore in special financial assistance for flood management.
Similarly, for Andhra Pradesh, finance minister Nirmala Sitharaman announced special financial support of ₹15,000 crore for a new capital city, fulfilling commitments made in the Andhra Pradesh Reorganization Act.
Sitharaman also announced funding for the early completion of the Polavaram Irrigation Project, crucial for Andhra Pradesh and its farmers, which in turn will support the country’s food security.
Infrastructure push for Bihar
In Bihar, the Centre will pump in ₹26,000 crore for the construction of several road projects such as the Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, Bodhgaya-Rajgir-Vaishali-Darbhanga Expressway, and an additional 2-lane bridge over the Ganga at Buxar.
Besides, the Centre will support the development of an industrial node at Gaya along the Amritsar-Kolkata Industrial Corridor.
“This project will boost industrial growth in the eastern region and transform Gaya into a model where cultural heritage meets modern economic development. It will demonstrate our commitment to both progress and preserving our heritage,” the finance minister said.
Along with the infrastructure push for Bihar, the Centre announced proposals to develop the Vishnupad temple at Gaya, Mahabodhi temple at Bodh Gaya, Rajgir and Nalanda as global tourist hubs on the lines of the Kashi Vishwanath temple corridor in Uttar Pradesh.
“Comprehensive development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor will be supported, modelled on the successful Kashi Vishwanath Temple Corridor, to transform them into world-class pilgrim and tourist destinations,” Sitharaman said.
However, no budgetary allocations were announced for the development of religious places in the budget.
The Mahabodhi Temple is a UNESCO World Heritage site for the place where the Buddha attained enlightenment. It is one of Buddhism’s holiest sites, attracting pilgrims from around the world. The temple’s iconic Mahabodhi tree, under which the Buddha meditated, is central to Buddhism.
The Vishnupad Temple in Gaya is an important Hindu pilgrimage site while Rajgir holds religious significance for Hindus, Buddhists, and Jains. A comprehensive development initiative for Rajgir will be undertaken, she said.
“Our government will support the development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature,” she added.
Both Nalanda and Rajgir hold significant historical and cultural importance for Bihar, and they also have a personal connection for Chief Minister Nitish Kumar, who has been instrumental in promoting these areas.
Separately, Sitharaman added, “As Bihar often faces floods, some of which come from outside the country, the government will support flood management projects with an estimated cost of ₹11,500 crore through the Accelerated Irrigation Benefit Programme and other sources.”
“This includes the Kosi-Mechi intra-state link and 20 other ongoing and new projects, such as barrages, river pollution control, and irrigation. We will also conduct surveys and investigations for Kosi-related flood mitigation and irrigation projects.”
Coining a new word ‘Purvodaya,’ which signifies a new beginning or awakening in the eastern region, the finance minister, said, “We will formulate a plan, Purvodaya, for the all-round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.”
This will cover human resource development, infrastructure, and generation of economic opportunities to make the region an engine to attain Viksit Bharat, she added.
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The proposals for Andhra Pradesh were welcomed by Prof Jyothsna Tirunagari, national spokesperson of the state’s ruling Telugu Desam Party.
“We thank the finance minister for this progressive and confidence-boosting budget and for recognizing the needs of our state and focusing on a capital, Polavaram, industrial nodes, and development of backward areas in Andhra Pradesh in the Union Budget of FY 24-25,” she said.
“This support from the Centre will go a long way towards rebuilding Andhra Pradesh. This would ensure putting Andhra Pradesh back on track,” Tirunagari said.
The minister also announced funds for essential infrastructure such as water, power, railways, and roads in the Kopparthy and Orvakal nodes on the Visakhapatnam-Chennai and Hyderabad-Bengaluru Industrial Corridors.
“The Centre will also provide financial assistance to support economic growth in the backward regions of Rayalaseema, Prakasam, and North Coastal Andhra,” she said.
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