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Bihar Cabinet Clears US$500 Million World Bank Loan For Urban Expansion, Focus on 11 Satellite Townships

State clears 20 proposals, including US$500m urban development programme and AI-based road maintenance initiative.

Staff Reporter by Staff Reporter
May 6, 2026
in Bihar
Reading Time: 2 mins read
Bihar Cabinet Approves New Land Acquisition Policy With Higher Compensation for Landowners
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Patna: The Bihar cabinet on Wednesday approved 20 proposals, including a major World Bank-backed urban transformation programme, a day before the anticipated expansion of the government led by Samrat Choudhary.

The meeting, chaired by the chief minister in Patna, comes ahead of Thursday’s cabinet expansion ceremony, which is expected to be attended by Narendra Modi.

World Bank Loan For Urban Transformation

The cabinet granted in-principle approval for the implementation of the Bihar Urban Transformation Program, which will be supported by a US$500 million loan from the World Bank.

Officials said the programme aims to improve economic productivity in selected urban centres while promoting integrated urban economic zones and planned urbanisation.

The initiative is expected to support infrastructure creation, climate-sensitive urban growth and long-term private investment across the state.

Satellite Townships Planned

The government had already approved plans for 11 satellite townships during an earlier cabinet meeting held on April 22.

The proposed townships include:

  • Patliputra (Patna)
  • Hariharnathpur (Sonepur)
  • Magadh (Gaya)
  • Mithila (Darbhanga)
  • Ang (Munger)
  • Purnea
  • Koshi (Saharsa)
  • Saran (Chhapra)
  • Vikramshila (Bhagalpur)
  • Tirhut (Muzaffarpur)
  • Sitapuram (Sitamarhi)

The cabinet also approved temporary restrictions on land sale, transfer and new construction activities in the proposed township areas.

Officials said these restrictions will remain in place until March 31, 2027, in Patna, Sonepur, Gaya, Darbhanga, Munger, Purnea and Saharsa, while similar restrictions in Chhapra, Muzaffarpur, Bhagalpur and Sitamarhi will continue until June 30, 2027.

AI-Based Road Maintenance

In another major decision, the cabinet approved expenditure of more than Rs 15,967 crore for maintenance of 19,305 kilometres of roads under the Road Construction Department.

Authorities said road monitoring and maintenance will be carried out using a centralised command and control centre supported by artificial intelligence technology for inspection and upkeep.

Officials described the decisions as part of a broader push towards infrastructure-led urban growth and modernisation across Bihar.

Tags: BiharBihar NewsCabinet DecisionsSatellite TownshipsUrban DevelopmentWorld Bank

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