Skip to main content

Modi's "special" Rs 1.25 lakh package for Bihar is part of ongoing projects, has no separate budgetary provision

By A Representative
Facts have come to light suggesting that there are no separate provisions in the Central budget in the “special mega package” for Rs 1.25 lakh announced by Prime Minister Narendra Modi for the “development” of Bihar, and the funds that he has said he “allocated” are actually mainly on-going infrastructure projects, which will take 10 years to complete. In fact, a senior finance ministry official has been quoted as saying that the Rs.1.25 lakh crore package, announced ahead of the Bihar elections due soon, is “part of ongoing development programmes.” 
Announced at an official function in Arrah, Bihar, on August 18 for a national highways project, which alone will cost Rs 54,713 crore for the highways, which includes 2,775 kilometres of highways and construction of bridges across the Kosi, Sone and Ganga rivers, another big chunk of funds has been allotted for the expansion of Barauni Refinery and a petrol-diesel pipeline from Raxaul to Nepal, and a few other already continuing projects.
In fact, observers say, similar announcements were made in Gujarat, where Modi declared in mid-2000s a Rs 15,000 crore Sagarkhedu project for improving livelihood of the people living in the 1,600-long state coastline, and another Rs 10,000 crore Vanbandhu project for the development of the eastern tribal belt, where 14 per cent of the state’s most backward population lives. 
He faced criticism for failing to spend funds he had announced, as no special budgetary provision was made for these projects. Even today, the two projects are largely on paper, even though the Gujarat government claims they have been "completed".
Keen commentators observe, the numbers look “very big and bombastic”, but actually it is nothing but “the art of packaging” involving dishing out big figures. Under Narendra Modi, packaging of development programmes is more art than science, perhaps an abstract art whose deconstruction is open to subjective interpretations.
Already, facts have come to light suggesting that the national highway projects (about 2,775 km), includes building four lanes as well as bridges across rivers, costing more than Rs 54,000 crore was to be actually built on a public-private partnership basis. The National Highway Authority of India (NHAI) should have invited tenders from private parties to do the project under a public private partnership (PPP) arrangement. But, say knowledgeable sources, the private companies “withdrew” from executing fresh national highway projects due to stressed balance sheets.
Hence the decision on the part of the NHAI, which operates under the Ministry of Roads and Surface Transport, to directly implement the project. As one source notes, even if the economy picks up in next couple of years or so, and the private sector “decides” to return to execute the highways projects, the Government of India cannot now say that it will hand over the project under the public private partnership (PPP). Hence, this has turned into a special financial package for Bihar!
Same is the case with the Indian Oil Corporation (IOC), which has been considering to expand the capacity of its refinery in Barauni, Bihar. The refinery’s capacity is proposed to be expanded from 6 million tonnes to 15 million tonnes. RS Butola, ex-chairman and Managing Director of the Indian Oil Corporation (OIC) , has been quoted as saying that the idea of Barauni refinery expansion would have proved to be a very costly affair.
After all, it would require transporting crude oil to Bihar from the Haldia port in West Bengal. “Private refineries run by Reliance Industries and Essar in Jamnagar on the north Saurashtra coast in Gujarat would have huge advantage over an expanded Barauni”, the source points out, adding, hence the IOC was “exploring” the possibility of setting up a new refinery off the Gujarat or Maharashtra Coast to be able to better compete with RIL and Essar. The expansion would have meant Rs 13,000 crore, a cost which the Government of India will bear.

Comments

TRENDING

Whither space for the marginalised in Kerala's privately-driven townships after landslides?

By Ipshita Basu, Sudheesh R.C.  In the early hours of July 30 2024, a landslide in the Wayanad district of Kerala state, India, killed 400 people. The Punjirimattom, Mundakkai, Vellarimala and Chooralmala villages in the Western Ghats mountain range turned into a dystopian rubble of uprooted trees and debris.

Election bells ringing in Nepal: Can ousted premier Oli return to power?

By Nava Thakuria*  Nepal is preparing for a national election necessitated by the collapse of KP Sharma Oli’s government at the height of a Gen Z rebellion (youth uprising) in September 2025. The polls are scheduled for 5 March. The Himalayan nation last conducted a general election in 2022, with the next polls originally due in 2027.  However, following the dissolution of Nepal’s lower house of Parliament last year by President Ram Chandra Poudel, the electoral process began under the patronage of an interim government installed on 12 September under the leadership of retired Supreme Court judge Sushila Karki. The Hindu-majority nation of over 29 million people will witness more than 3,400 electoral candidates, including 390 women, representing 68 political parties as well as independents, vying for 165 seats in the 275-member House of Representatives.

Gig workers hold online strike on republic day; nationwide protests planned on February 3

By A Representative   Gig and platform service workers across the country observed a nationwide online strike on Republic Day, responding to a call given by the Gig & Platform Service Workers Union (GIPSWU) to protest what it described as exploitation, insecurity and denial of basic worker rights in the platform economy. The union said women gig workers led the January 26 action by switching off their work apps as a mark of protest.

India’s road to sustainability: Why alternative fuels matter beyond electric vehicles

By Suyash Gupta*  India’s worsening air quality makes the shift towards clean mobility urgent. However, while electric vehicles (EVs) are central to India’s strategy, they alone cannot address the country’s diverse pollution and energy challenges.

'Condonation of war crimes against women and children’: IPSN on Trump’s Gaza Board

By A Representative   The India-Palestine Solidarity Network (IPSN) has strongly condemned the announcement of a proposed “Board of Peace” for Gaza and Palestine by former US President Donald J. Trump, calling it an initiative that “condones war crimes against children and women” and “rubs salt in Palestinian wounds.”

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

With infant mortality rate of 5, better than US, guarantee to live is 'alive' in Kerala

By Nabil Abdul Majeed, Nitheesh Narayanan   In 1945, two years prior to India's independence, the current Chief Minister of Kerala, Pinarayi Vijayan, was born into a working-class family in northern Kerala. He was his mother’s fourteenth child; of the thirteen siblings born before him, only two survived. His mother was an agricultural labourer and his father a toddy tapper. They belonged to a downtrodden caste, deemed untouchable under the Indian caste system.

MGNREGA: How caste and power hollowed out India’s largest welfare law

By Sudhir Katiyar, Mallica Patel*  The sudden dismantling of MGNREGA once again exposes the limits of progressive legislation in the absence of transformation of a casteist, semi-feudal rural society. Over two days in the winter session, the Modi government dismantled one of the most progressive legislations of the UPA regime—the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

Fragmented opposition and identity politics shaping Tamil Nadu’s 2026 election battle

By Syed Ali Mujtaba*  Tamil Nadu is set to go to the polls in April 2026, and the political battle lines are beginning to take shape. Prime Minister Narendra Modi’s visit to the state on January 23, 2026, marked the formal launch of the Bharatiya Janata Party’s campaign against the ruling Dravida Munnetra Kazhagam (DMK). Addressing multiple public meetings, the Prime Minister accused the DMK government of corruption, criminality, and dynastic politics, and called for Tamil Nadu to be “freed from DMK’s chains.” PM Modi alleged that the DMK had turned Tamil Nadu into a drug-ridden state and betrayed public trust by governing through what he described as “Corruption, Mafia and Crime,” derisively terming it “CMC rule.” He claimed that despite making numerous promises, the DMK had failed to deliver meaningful development. He also targeted what he described as the party’s dynastic character, arguing that the government functioned primarily for the benefit of a single family a...