Union Finance Minister Nirmala Sitharaman
By Neeraj Kumar
Patna: As the Union Budget for the financial year 2025-26 approaches, the people of Bihar are pinning their hopes on significant allocations for the state’s development. Bihar Industries Association (BIA) President KPS Kesari has submitted a detailed 10-page suggestion letter to Union Finance Minister Nirmala Sitharaman, requesting special assistance of ₹50,000 crore over the next 10 years. The letter also proposes that this amount be provided as an interest-free loan for 25 years.
Speaking about the proposal, Kesari highlighted the need for substantial investment to boost Bihar’s industrial growth. He stated, “The letter we have sent to the Finance Minister includes various suggestions, primarily a demand for ₹50,000 crore for 10 years to accelerate the state’s development.”
Key Demands by BIA
- Special Assistance of ₹50,000 Crore: The association seeks this amount to address regional imbalances and support industrial growth.
- Interest-Free Loan for 25 Years: To enable sustainable development and reduce financial burden.
- Development of River Transport: Kesari emphasised the need to utilise the Ganga and National Waterways for cost-effective transportation, suggesting substantial funds for dredging to ensure year-round navigability.
- Industrial Backward Districts: A proposal to designate certain districts as industrially backward and offer tax concessions to attract investments.
- Urbanisation and Smart Cities: The association has urged the Centre to support urbanisation projects, including the development of industrial townships along the Kolkata-Amritsar Industrial Corridor.
Kesari noted that Bihar’s industrialisation is progressing, but significant support from the Centre is essential to sustain this momentum. He pointed out that Bihar’s electricity consumption, at 300 units per capita, is far below the national average of 1,300 units, and the state’s per capita income of ₹60,000 lags behind the national average of ₹1,84,000.
Challenges Highlighted
- Frequent flooding due to water inflow from Nepal and the resultant silt deposition.
- Limited urbanisation, with only 11% of the state urbanised, though this figure has recently improved.
- High unemployment rates due to insufficient industrial infrastructure, leading to large-scale migration.
Kesari expressed optimism, citing the growing interest of industrialists in Bihar following recent investor meetings. However, he stressed the need for central support to realise the state’s full potential.
The BIA’s demands aim to address structural challenges and unlock Bihar’s industrial and economic growth. It now remains to be seen whether the Union Budget 2025-26 incorporates these suggestions.
