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Bihar Cabinet Approves Rs 11,096 Crore Power Distribution Plan, Patna Underground Road Corridor And Floodplain Mapping Of Three Rivers Among 43 Decisions

The Cabinet chaired by Chief Minister Samrat Choudhary cleared 43 proposals covering electricity distribution, urban infrastructure, industrial development, MSMEs, education and regional air connectivity.

Priyani Pandey by Priyani Pandey
October 28, 2026
in Bihar, Infrastructure
Reading Time: 5 mins read
Bihar Cabinet Approves Rs 11,096 Crore Power Plan, Patna Underground Road Study And Floodplain Mapping
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Patna : The Bihar Cabinet, chaired by Chief Minister Samrat Choudhary, approved 43 proposals on Wednesday, including a Rs 11,096.55 crore plan to strengthen the state’s electricity distribution network, a feasibility study for an underground road corridor in Patna and floodplain mapping along the Kosi, Gandak and Son rivers.

The decisions cover infrastructure development, industrial investment, entrepreneurship, student accommodation, dam safety, sports and regional air connectivity. The Cabinet also approved changes to land transaction restrictions in selected Greenfield Satellite Township areas and measures to expand administrative capacity across the state.

Floodplain Mapping Of Kosi, Gandak And Son Rivers

The Cabinet approved a proposal to conduct a Flood Plain Zone Delineation Study to identify and map flood-prone areas along the Kosi, Gandak and Son rivers, which are major tributaries of the Ganga.

The study will be carried out under a memorandum of understanding between the state’s Water Resources Department and the National Institute of Hydrology, Roorkee, at an estimated cost of Rs 1.99 crore.

According to Additional Chief Secretary Arvind Kumar Chaudhary of the Cabinet Secretariat Department, the study is intended to support the sustainable development of flood-affected areas in response to changing environmental and socio-economic conditions while reducing the risk of loss of life and property.

The Cabinet also approved a dam safety assessment programme covering 24 dams in Bihar under the Dam Safety Act, 2021. The initiative will include assessments of dam conditions, emergency action plans, operation and maintenance manuals, reservoir sedimentation and storage capacity, spillway discharge capacity and hydraulic safety based on revised design flood estimates.

The scheme has an estimated cost of Rs 8.39 crore and is targeted for completion within eight months. The assessments are intended to strengthen dam safety management and improve preparedness for potential emergencies, particularly given the high silt load in Bihar’s rivers and recurring monsoon flood conditions.

Rs 11,096.55 Crore To Strengthen Electricity Distribution

The Cabinet approved a scheme worth Rs 11,096.55 crore to strengthen the state’s low-tension electricity distribution system and upgrade cables, overloaded transformers and related infrastructure.

The scheme will be implemented in phases over a maximum period of three years. It aims to improve the distribution network’s capacity to meet rising electricity demand and support a more reliable power supply.

The decision comes as Bihar’s peak electricity demand has risen from 1,802 MW in 2012 to 9,475 MW.

To finance the scheme, the Cabinet authorised the two state electricity distribution companies to obtain assistance from financial institutions and banks, backed by a state government guarantee. North Bihar Power Distribution Company Limited will receive Rs 6,066 crore, while South Bihar Power Distribution Company Limited will receive Rs 5,030.55 crore.

Rs 18.21 Crore For Patna Underground Road Corridor Study

The Cabinet approved Rs 18.21 crore for a feasibility study to examine the development of an underground road corridor in Patna.

The proposed study will explore the possibility of connecting different parts of the state capital through underground routes. The corridors under consideration include a stretch from R Block Crossing to Kankarbagh and another connecting Dak Bungalow Crossing with Patna Women’s College, along with other important locations.

The study will assess the feasibility of the proposed routes before any decision on construction is taken.

Rs 12 Crore Approved For Bihar State Games 2026

The Cabinet sanctioned Rs 12 crore for the Bihar State Games 2026 to encourage sporting talent and identify emerging athletes across different disciplines.

Around 5,500 players, 750 technical officials and 750 volunteers from districts across the state are expected to participate in 24 sports disciplines.

The Bihar Olympic Association has been authorised to organise arrangements for accommodation, food, transportation, medical facilities, security and sports equipment for participants.

Restrictions On Land Transactions In Greenfield Satellite Townships Lifted

The Cabinet decided to lift restrictions on the purchase, sale and transfer of land in selected Greenfield Satellite Township areas with immediate effect.

Once the relevant township development plans are notified, construction and land development will be permitted according to the prescribed land-use provisions and applicable Development Control Regulations.

The decision is intended to facilitate land transactions in the designated areas while ensuring that subsequent development follows the notified planning framework.

Bihar MSME Policy 2026 Gets Ex-Post Facto Approval

The Cabinet granted ex-post facto approval to the Bihar MSME Policy 2026, which sets ambitious targets for entrepreneurship, employment generation and district-level industrial development over five years.

The policy aims to transform one crore families into entrepreneurial households, generate one crore direct and indirect employment opportunities and increase the state’s credit-deposit ratio to 75 per cent. It also envisages establishing an industrial cluster in every district and setting up MSME centres in all 38 districts.

The policy is built around 10 pillars, including formalisation, skill development, cluster-based growth, access to finance and markets, emerging sectors, collaboration, technology adoption and environmental sustainability.

Motipur Sugar Mill Land Allocated For Industrial Development

The Cabinet approved the transfer of 151.58 acres of land at the closed Motipur Sugar Mill in Muzaffarpur district to the Industries Department for establishing other industries. The remaining 115.08 acres of the 266-acre site will be used for setting up a sugar mill.

The decision forms part of the state government’s Samriddh Udyog–Sashakt Bihar initiative under Saat Nischay-3. The objective is to put unused industrial assets to productive use, attract new investment and create employment opportunities.

The Cabinet also approved the establishment of a new sugar mill at Warisaliganj in Nawada district. The project will include sugarcane by-product-based facilities such as a distillery, a co-generation plant and a compressed biogas unit. The initiative is part of the government’s plan to revive closed sugar mills across the state in phases.

Rs 37.10 Crore For Consultancy On Three Road Projects

The Cabinet granted administrative approval of Rs 37.10 crore for transaction adviser consultancy services for three proposed road projects.

The projects are the 90-km Vishwamitra Path connecting Buxar, Ara and Maner; the 56-km Ganga Ambika Path between Bidupur and Dighwara; and the 73.51-km Narayani Path connecting Darihara (Konhua) with Dumariaghat in Gopalganj district.

The consultancy services will support the development and transaction process for the proposed roads.

Rs 58.80 Crore For Engineering And Polytechnic Student Accommodation

The Cabinet approved Rs 58.80 crore to arrange hostel accommodation in private buildings for students of government engineering colleges and polytechnic institutes.

The arrangement will cover approximately 49,000 currently enrolled students, with financial support of Rs 1,000 per student per bed.

The initiative is intended to address accommodation needs among students pursuing technical education in government institutions across Bihar.

Rs 43.50 Crore For Regional Air Connectivity Under UDAN

The state government approved Rs 43.50 crore in viability gap funding for regional air connectivity under the UDAN scheme.

The funding will be provided to the Airports Authority of India under the memorandum of understanding between the central and Bihar governments. The allocation covers 29 months, from May 2026 to September 2028, at a rate of Rs 1.5 crore per month.

The measure is intended to support regional air services and strengthen connectivity for passengers travelling to and from Bihar.

New Police, Economic Offences And Commercial Court Posts

The Cabinet approved the creation of three City Superintendent of Police posts for Motihari, Purnia and Saran districts.

It also sanctioned 143 posts for the expansion and capacity-building of regional Economic Offences Unit offices in Bihar. In addition, one State Information Commissioner post was approved for the Bihar Information Commission.

Two District Judge-level posts were cleared for establishing additional commercial courts under the Patna judgeship. These courts will exclusively hear commercial disputes involving amounts exceeding Rs 1 crore.

The 43 Cabinet decisions span electricity distribution, urban infrastructure, flood management, industrial development, entrepreneurship, sports, education, air connectivity and administrative strengthening. The relevant departments will be responsible for taking forward the approved proposals and implementing the schemes.

Tags: BiharBihar InfrastructureBihar NewsFlood Management BiharPower Distribution Plan

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