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

Manufacturing, services: India's low-skill, middle-skill labour remains underemployed

By Francis Kuriakose* The Indian economy was in a state of deceleration well before Covid-19 made its impact in early 2020. This can be inferred from the declining trends of four important macroeconomic variables that indicate the health of the economy in the last quarter of 2019.

Incarceration of Prof Saibaba 'revives' the question: What is crime, who is criminal?

By Kunal Pant* In 2016, a Supreme Court Judge asked the state of Maharashtra, “Do you want to extract a pound of flesh?” The statement was directed against the state for contesting the bail plea of Delhi University Professor GN Saibaba. Saibaba was arrested in 2014, a justification for which was to prevent him from committing what the police called “anti-national activities.”

Food security? Gujarat govt puts more than 5 lakh ration cards in the 'silent' category

By Pankti Jog* A new statistical report uploaded by the Gujarat government on the national food security portal shows that ensuring food security for the marginalized community is still not a priority of the state. The statistical report, uploaded on December 24, highlights many weaknesses in implementing the National Food Security Act (NFSA) in state.

Why Indo-Pak relations have been on 'knife’s edge' , hostilities may remain for long

By Utkarsh Bajpai*  The past few decades have seen strides being made in all aspects of life – from sticks and stones to weaponry. The extreme case of this phenomenon has been nuclear weapons. The menace caused by nuclear weapons in the past is unforgettable. Images of Hiroshima and Nagasaki from 1945 come to mind, after the United States dropped two atomic bombs on the cities.

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

​ By Syed Ali Mujtaba*  ​The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.

Modi’s Israel visit strengthened Pakistan’s hand in US–Iran truce: Ex-Indian diplomat

By Jag Jivan   M. K. Bhadrakumar , a career diplomat with three decades of service in postings across the former Soviet Union, Pakistan, Iran, Afghanistan, South Korea, Sri Lanka, Germany, and Turkey, has warned that the current truce in the US–Iran war is “fragile and ridden with contradictions.” Writing in his blog India Punchline , Bhadrakumar argues that while Pakistan has emerged as a surprising broker of dialogue, the durability of the ceasefire remains uncertain.

Lata Mangeshkar, a Dalit from Devdasi family, 'refused to sing a song' about Ambedkar

By Pramod Ranjan*  An artist is known and respected for her art. But she is equally, or even more so known and respected for her social concerns. An artist's social concerns or in other words, her worldview, give a direction and purpose to her art. History remembers only such artists whose social concerns are deep, reasoned and of durable importance. Lata Mangeshkar (28 September 1929 – 6 February 2022) was a celebrated playback singer of the Hindi film industry. She was the uncrowned queen of Indian music for over seven decades. Her popularity was unmatched. Her songs were heard and admired not only in India but also in Pakistan, Bangladesh and many other South Asian countries. In this article, we will focus on her social concerns. Lata lived for 92 long years. Music ran in her blood. Her father also belonged to the world of music. Her two sisters, Asha Bhonsle and Usha Mangeshkar, are well-known singers. Lata might have been born in Indore but the blood of a famous Devdasi family...

'Batteries now cheap enough for solar to meet India's 90% demand': Expert quotes Ember study

By A Representative   Shankar Sharma, Power & Climate Policy Analyst, has urged India’s top policymakers to reconsider the financial and ecological implications of the country’s energy transition strategy in light of recent global developments. In a letter dated April 10, 2026, addressed to the Union Ministers of Finance, Power, New & Renewable Energy, Environment, Forest & Climate Change, and the Vice Chair of NITI Aayog, with a copy to the Prime Minister, Sharma highlighted concerns over India’s ambitious plans for coal gasification and the Prototype Fast Breeder Reactor (PFBR).

Labour unrest in Manesar trigger tensions: Recently enacted labour codes blamed

By A Representative   A civil rights coalition has expressed concern over recent developments in the industrial hub of Manesar in Haryana, where a series of labour actions and police responses have drawn attention. A statement, released by the Campaign Against State Repression (CASR), said it stood in solidarity with workers in IMT Manesar and other parts of the country, while also alleging instances of police excess during ongoing unrest.