Bihar Special Status A No-Go, How Modi 3.0 Made It Up To Ally Nitish Kumar

A month after N Chandrababu Naidu's TDP and Nitish Kumar's JDU helped the BJP cobble up a majority to return to power for the third time, the Modi 3.0's Budget 2024 has earmarked key projects for the two states ruled by its friends in need -- Bihar and Andhra Pradesh.

Close on the heels of the Centre ruling out any plan to grant Bihar a Special Category Status, a longstanding demand of the JDU, Finance Minister Nirmala Sitharaman today announced multiple development projects for the state.

With an aim to boost road connectivity in Bihar, the government has announced plans to develop expressways connecting Patna and Purnea, and Buxar and Bhagalpur and another connecting Bodhgaya, Rajgir, Vaishali and Darbanga. The government has earmarked a sum of Rs 2,600 crore for this purpose. Additionally, the state will also get a two-lane bridge over Ganga in Buxar district. The Finance Minister also announced a 2,400 MW power plant at Pirpainti in Bhagalpur.

The request of the Bihar government for banks to expedite funds for development shall be fulfilled, Ms Sitharaman said. The Centre also outlined plans to develop temple corridors at Gaya and Rajgir in Bihar to promote tourism. It also promised flood control structure with a financial support of Rs.11,500 crore to protect the state from floods.

Bihar is also part of the Purvodaya initiative announced by Modi 3.0 to step up development in the eastern part of the country. "We will formulate Purvodaya for all-round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh," the Finance Minister said, saying that this project will focus on human resources development, infrastructure push and generation of economic opportunities in these states. The aim, she said, was to make this region an engine for attaining the goal of Viksit Bharat.

In Andhra Pradesh, where the NDA swept the recently held Assembly polls, infrastructure projects in Railways and roadways will be prioritised, the minister announced.

"Recognising Andhra Pradesh's need for capital, to facilitate support through multilateral development agencies, Rs 15,000 crore to be arranged for Andhra Pradesh for development of capital," she said.

The Andhra Pradesh Re-organisation Act and redressal of the concerns under it shall be expedited, the Finance Minister said.

The outlay for Andhra Pradesh and Bihar in Budget 2024 is under the spotlight against the backdrop of the critical support TDP and JDU provided to the BJP to return to power after it fell short of majority in the Lok Sabha polls this year. 

JDU had drawn fire from main Opposition in Bihar, RJD, after the Finance Ministry said no case for a special category tag for Bihar is made out. Taking a swipe, the RJD had said, "Nitish Kumar and JDU leaders must enjoy the fruits of power at the Centre and continue their drama politics on special status." 

Bihar Chief Minister and JDU chief Nitish Kumar said they are happy with the Budget. "We protested in demand of special status, kept talking about it. We said either give us special status or any assistance. Giving out special status has stopped, so there should be assistance for development. And that is happening," he said. 

A special status ensures more central support to a backward state to expedite its growth. While the Constitution does not provide for a special status for any state, it was introduced on the recommendations of the Fifth Finance Commission in 1969. Among the states that have received a special status so far are Jammu and Kashmir (now a Union Territory), Northeastern states and hill states such as Himachal Pradesh and Uttarakhand.