Patna: The Bihar cabinet on Wednesday approved a proposal to sign a memorandum of understanding (MoU) with the Housing and Urban Development Corporation (HUDCO) to secure long-term financing of up to Rs 1 lakh crore for the development of greenfield satellite townships across the state.
Officials said the proposed financing arrangement would support the development of modern townships equipped with planned infrastructure and civic amenities, helping attract private investment, generate employment and strengthen local economies.
Rs 1 Lakh Crore Financing Framework
Under the approved proposal, the state government will enter into an agreement with HUDCO to facilitate long-term funding for future township projects.
The government expects the financing mechanism to support large-scale urban development initiatives, including roads, public utilities, housing infrastructure and other civic facilities required for planned urban expansion.
Officials said the initiative would help create investment-ready urban zones while supporting economic growth in surrounding areas.
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New Satellite Township Approved In Dehri
The cabinet also approved the site selection and development process for a new greenfield satellite township in Dehri, located in Rohtas district.
The project will become Bihar’s twelfth planned satellite township and is intended to support long-term urban growth in the region.
According to the proposal, development will be undertaken through a combination of land purchase, land acquisition and town planning mechanisms to ensure master-plan-based growth.
The government believes the township will create new economic activity centres, encourage private and institutional investment and generate employment opportunities while providing modern urban amenities to residents.
Officials also said the project would help ease population pressure on Dehri and nearby Sasaram by enabling planned urban expansion.
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Planning Areas Expanded In Four Cities
In another decision, the cabinet approved the territorial expansion of the planning areas covering Chhapra, Sitamarhi, Muzaffarpur and Bhagalpur.
The move is expected to facilitate integrated urban planning and allow future development to take place under approved master plans.
Officials said the expansion would support the development of infrastructure and future satellite townships while creating conditions for greater private and institutional investment.
Changes To Urban Planning Governance
The cabinet also approved amendments to the Bihar Urban Planning and Development Rules, 2014.
Under the revised framework, Divisional Commissioners will serve as ex-officio chairpersons of Planning Area Authorities, while District Magistrates will act as ex-officio vice-chairpersons.
Officials said the change is intended to strengthen coordination between departments and improve regional planning by placing planning authorities under the leadership of officers holding responsibilities beyond the district level.
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Earlier Approval For 11 Satellite Townships
The latest decisions build on Bihar’s broader urban development strategy unveiled earlier this year. On 22 April 2026, the state cabinet approved the creation of 11 greenfield satellite townships across Bihar.
The proposed townships are planned near major urban centres, including Patna, Muzaffarpur, Bhagalpur, Darbhanga, Gaya, Purnia, Saharsa, Sitamarhi, Munger, Sonepur and Chhapra.
The projects are intended to function as planned urban centres capable of accommodating future population growth, supporting industrial expansion and improving infrastructure development in and around the state’s fastest-growing cities.
To facilitate the projects, land in identified zones has already been notified by the government. Authorities have imposed a temporary restriction on the sale, purchase and construction of properties within the designated areas until master plans and development frameworks are finalised.
Officials have said the satellite township programme is designed to promote planned urbanisation, reduce pressure on existing cities and create new hubs for economic activity and investment across Bihar.
