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Bihar’s Urban Push Gains Pace as Drainage, Housing and Metro Projects Drive Growth: Economic Survey

Bihar’s Economic Survey for 2024–25 shows urban development emerging as a key growth engine, with large-scale spending on drainage, housing, water supply and the Patna Metro, even as challenges remain in project execution.

Staff Reporter by Staff Reporter
February 2, 2026
in Bihar
Reading Time: 2 mins read
Bihar’s Urban Push Gains Pace as Drainage, Housing and Metro Projects Drive Growth: Economic Survey
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Patna: Bihar’s urban development sector recorded steady expansion in 2024–25, driven by sustained public investment in infrastructure, housing and basic services, according to the state’s Economic Survey presented in Bihar Legislative Assembly on Monday. The survey underlines a shift towards tackling long-standing urban challenges such as waterlogging, housing shortages and mobility, while also strengthening municipal finances.

A major focus has been on stormwater management. Drainage schemes have been implemented in 20 districts, with Rs 2,925.27 crore allocated under the Stormwater Drainage Scheme, of which Rs 1,716.75 crore had been released by 2024–25. In parallel, Rs 613.63 crore was approved between 2017 and 2024 for nala construction. Together, these projects are expected to bring relief from chronic waterlogging to more than 1.57 crore people living in low-lying areas across 264 urban local bodies.

Urban amenities have also expanded under the Saat Nishchay-2 programme. In the first phase of the Vidyut Shavdah Grih Yojana, approval was granted for the construction of crematoriums in 41 cities or at major river ghats in district headquarters, excluding Patna. The estimated cost of the initiative stood at Rs 248.93 crore as of September 2025.

Roads, public spaces and civic infrastructure form another pillar of the state’s urban strategy. Under the Mukhyamantri Samagra Shahari Vikas Yojana, the government approved 1,612 schemes worth Rs 1,261.83 crore in 2024–25, covering wide roads with proper drainage, parks, ghats and reservoirs. For 2025–26, a further Rs 830.07 crore has been earmarked to implement 1,587 schemes.

Access to drinking water has expanded through central and state programmes. Under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), piped tap water connections were provided to 24.98 lakh households. The Mukhyamantri Shahri Peyajal Nishchay Yojana has approved Rs 66 crore for 125 new water supply schemes to be implemented in 2025–26.

Urban livelihoods and social inclusion have also received attention. The Deen Dayal Jan Aajeevika Yojana (Urban), which includes components ranging from financial inclusion to innovation-led projects, has selected Patna as a pilot city. An allocation of Rs 100 crore has been made for 2025–26.

Housing remains one of the largest areas of intervention. Under the Pradhan Mantri Awas Yojana, houses have been approved for 2,64,604 families, with 1,63,630 homes already completed and the remainder targeted by December 2025. The total project cost is Rs 5,292.08 crore. Under PM Awas Yojana 2.0, nearly 6.9 lakh applications had been received by September 2025, with 1,53,790 houses approved at a cost of Rs 3,844.75 crore.

Environmental infrastructure has been strengthened through the National Mission for Clean Ganga, which sanctioned Rs 1,210.40 crore in 2024–25 for sewerage networks, interception and diversion works, and sewage treatment plants.

The survey also flags the Patna Metro Rail Project as a transformative urban mobility initiative. In its first phase, Rs 13,365.77 crore has been approved for two corridors spanning 32.5 km, including both elevated and underground sections, with 24 proposed stations.

Overall spending reflects a strong but uneven utilisation of funds. The Department of Urban Development and Housing had a budget allocation of Rs 5,274.9 crore in 2024–25, against an expenditure of Rs 3,613.8 crore, translating into a utilisation rate of 68.5 percent.

On the revenue side, municipalities have shown marked improvement. Property tax collection more than doubled from Rs 191.10 crore in 2020–21 to Rs 407.54 crore in 2024–25, with the annual growth rate rising from 7.4 percent to 17.2 percent.

Tags: BiharEconomyDevelopmentIndiaGrowthInfrastructureUrban Development

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