Nitish Kumar asks Arun Jaitley to release balance of special assistance

Bihar Chief Minister Nitish Kumar has written to Union Finance Minister Arun Jaitley seeking release of the remaining Rs 6,359.19 crore of the special assistance that was earmarked for the state as part of the 12th five year plan.

“The remaining funds of special assistance to the tune of Rs 6,359.19 crore under BRGF (Backward Region Grant Fund) may be released in the financial year 2016-17 itself as this is the last financial year of the 12th five year plan period so that projects are completed on time,” Kumar said in his letter to Jaitley dated May 31.

Kumar had earlier received a letter from Jaitley on April 6 in which he had communicated the actions taken in the light of the chief minister’s missive to Prime Minister Narendra Modi on February 1 this year.

“You will also appreciate that any delay in release will apart from being detrimental to the development needs of Bihar, also lead to cost and time overrun,” Kumar said.

An amount of Rs 12,000 crore was earmarked for Bihar as Special Assistance under BRGF for 12th Plan period from 2012-17.

Kumar said out of the sanctioned amount, Rs 4,998.77 crore was for new projects, Rs 494.34 crore for completion of old ones and balance of Rs 902.08 crore was pending with NITI Aayog for sanctioning projects.

“An amount of Rs 6,395.19 crore is the balance liability for release with the government of India ... Duration of the 12th Five Year Plan is up to FY 2016-17 and we expect that the remaining fund (Rs 6,395.19 crore) out of total Rs 12,000 crore sanctioned under ‘Special Plan’ will be released in this financial year itself,” Kumar wrote.

He referred to Jaitley’s letter which mentioned that “Remaining liability under reference is included in the Prime Minister’s package for Bihar, 2015 and that the central government is committed to provide the ramaining fund for the projects covered under special plan for Bihar in the coming years.”

Against the sanctioned Rs 12,000 crore, Rs 10,500 crore and Rs 1,500 crore were earmarked for new and old ongoing projects respectively.

The Planning Commission had sanctioned projects worth Rs 9,597 crore which included eight in the energy sector (Rs 8,308.67 crore) and one project in the road sector (Rs 1,289.25 crore). Projects worth Rs 902.08 crore are pending with the NITI Aayog for sanction, he added.