Many things for Bihar to cheer about

PATNA: Union finance minister P Chidambaram ended all doubts about the opening of an IIT in Bihar when he presented 2008-2009 Budget in Parliament on Friday. Not very long ago, a spat between railway minister Lalu Prasad and Bihar chief minister Nitish Kumar had created confusion about the proposed premier institute in the state. The reference to IIT, however, was not the only moment when Bihar figured in Chidambaram's Budget. Bihar and two other states, Uttar Pradesh and Madhya Pradesh, would be getting 45 per cent of the Rs 5,000 crore allocated under the Backward Region Grant Fund (BRGF). This, however, would be only a small percentage of the Rs 7,044 crore the state received as grants in aid from the Centre pertaining to the current fiscal. At present, the state's GSDP and agricultural growth is pegged to 9.4 per cent and 4 per cent respectively. The ongoing growth trend has necessarily whetted the desire for more money for pumping into the state to keep the momentum going. In result, the demand for special package — that the Atal Bihari Vajpayee-led NDA government promised to the state first after the creation of Jharkhand in November 2000 — has continued to recur. Curiously, when it did not come at the time, NDA apologists used to count projects even like the Barh Thermal Power Station that had come in the kitty of Bihar. Bihar expected from Chidambaram the grant of special category state status to it. Nitish has already sought an appointment with PM Manmohan Singh to discuss the matter. Now, it is unlikely to be of much use even if it is granted. All this apart, the FM's other announcements are likely to benefit the state, if pursued and implemented properly by its bureaucratic machine. He has already increased the subsidy for houses to be constructed under Indira Awas Yojana (IAY) to Rs 35,000. The state's MLAs, even under the Nitish regime, had been demanding it. A beneficiary could get loan at a low rate of interest to meet his cost of share. Similarly, five-year tax holiday has been given to investors willing to construct hospitals, and also for starred hotels around Unesco recognised sites. The Nitish government is yet to come out with its Bihar Vision document to harness the tourism sector. The transport industry could register a boom due to reduction of excise tax on vehicles. Bihar already has 76,631 vehicles, according to the state government's economic survey report. Health clubs could also grow dramatically due to tax reduction on sports goods. The biggest news is that a number of ITIs of the state could be shortlisted for running by private houses under Public-Private Partnership (PPP), as 300 new ITIs in the country would come further under it to produce "world-class skill". The state government has already put its six ITIs under it to benefit from the Central fund. Besides, Chidambaram has cleared all proposals for textile parks a few of which are proposed in Bihar. As Chidambaram said, "If you look at it closely, there are things for every section."