…an additional central assistance of Rs.1,400 crore for Bundelkhand region

The union government Thursday approved funds, to the tune of Rs.1,500 crore ($300 million) for Bihar and Rs.250 crore ($50 million) for Odisha, to meet expenses incurred on existing and new development projects in the backward regions of the two states.

The union government also cleared proposals for a Rs.1,400-crore ($280-million) additional development fund for the Bundelkhand region straddling on both sides of the border of Uttar Pradesh and Madhya Pradesh. The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Manmohan Singh, at a meeting here gave its nod to the proposals under the state component of Backward Regions Grant Funds (BRGF). "The Cabinet Committee on Economic Affairs today (Thursday) approved the proposal for continuing the special plan for Bihar in 2012-13 with an allocation of Rs.1,500 crore based on the enhanced level of cost of Rs.9,985.54 crore of all existing projects, revised cost of existing projects, and the cost of new projects, if any, that may be approved by the empowered committee," a government release said here. The committee also gave its nod to "continuing the special plan for the Kalahandi-Bolangir-Koraput (KBK) districts of Odisha in 2012-13 with an allocation of Rs.250 crore."

It also approved a proposal for "continuing the special package for implementing drought mitigation strategies in Bundelkhand region of Uttar Pradesh and Madhya Pradesh in 2012-13 with an additional central assistance of Rs.1,400 crore."

The BRGF, which aims to catalyse development in backward areas, was approved by the CCEA in August 2006.In its present form, the BRGF has two components - a district component which covers 272 backward districts in 27 states (including 22 additional districts covered in 2012-13) and a state component, which includes special plan for Bihar, special plan for the KBK districts of Odisha, a special plan for West Bengal (covered in 2011-12), Integrated Action Plan (IAP) for select tribal and backward districts (covered in 2010-11) and a Bundelkhand package (covered in 2009-10).

The implementation of the programmes is being done by the state governments and is aimed at accelerating socio-economic development. "Through the continuation of the special plan for Bihar, KBK districts of Odisha and the Bundelkhand package in 2012-13, accelerated socio-economic development of backward areas covered under the programmes is expected to take place," the release said. All the 38 districts of Bihar, eight districts of the KBK region of Odisha and 13 districts of Bundelkhand region will be covered under the fund.

"These programmes are continuing programmes and were under implementation during the 11th five-year plan," the release said.

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