Patna: Bihar’s Urban Development and Housing Minister Nitish Mishra on Tuesday said urbanisation, industrialisation and tourism would be the three key drivers of the state’s next phase of development, as he launched the two-day Bihar Urban Transformation Programme in Patna.
Speaking at the inaugural session held at Adhiveshan Bhawan, Mishra said Bihar had made significant progress over the past two decades and must now focus on building modern, financially self-reliant cities capable of supporting economic growth and improving quality of life.
“The time has come to move beyond basic urban development and focus on creating cities that are sustainable, competitive and economically self-sufficient,” he said.
Urban Challenge Fund To Reward Innovation
The minister announced that Urban Local Bodies (ULBs) demonstrating innovation, sustainable development and revenue-generation potential would be incentivised through an Urban Challenge Fund.
He said urban development projects require substantial financial resources and local bodies must increasingly focus on creating their own revenue streams.
Mishra also urged officials to adopt best practices from across the world and embrace digital innovations and satellite township models to accelerate Bihar’s urban transformation.
Property Tax Collections Rise Sharply
Highlighting efforts to strengthen municipal finances, the minister said property tax collections had increased significantly over the past two years.
According to figures presented during the programme, collections rose from Rs 332 crore in 2023-24 to Rs 565 crore in 2025-26, an increase of approximately Rs 233 crore.
He described property tax as the backbone of urban finance and called on urban local bodies to prioritise property valuation reforms, digital tax collection systems and measures to improve compliance.
The state government has earmarked more than Rs 15,237 crore for urban development schemes and committed liabilities in the 2026-27 financial year.
World Bank Partnership For Urban Transformation
A major focus of the programme was a new partnership between the Urban Development and Housing Department and the World Bank aimed at supporting Bihar’s long-term urban transformation agenda.
According to the minister, the collaboration will help strengthen municipal finances, improve urban governance and build the institutional capacity of local bodies over the next decade.
The workshop is designed to train officials and urban planners in areas such as municipal finance, financial management, asset management, municipal bonds and sustainable urban planning.
Experts are also conducting sessions on integrated spatial planning, economic development strategies and emerging global trends in urbanisation.
Planned Urbanisation Essential For Jobs
Vinay Kumar, Principal Secretary of the Urban Development and Housing Department, said Bihar must embrace planned urbanisation to generate employment opportunities and compete with more developed states.
He argued that while significant attention had historically been devoted to rural development, future growth would require systematic urban expansion supported by infrastructure, investment and modern services.
“Urbanisation is not merely about creating new cities. It is about transforming the economy, generating employment and improving living standards through well-planned urban centres,” he said.
Kumar also stressed the importance of financial self-reliance for urban local bodies, advocating greater use of public-private partnerships and innovative financing models.
Private Investment Crucial For City Development
Rosanna Nitti, representing the World Bank, emphasised the importance of private-sector participation in urban development and municipal finance.
She said cities would need diversified revenue sources and stronger financial systems to support future growth and deliver quality services.
The programme brought together senior government officials, municipal administrators and international experts to discuss strategies for building more inclusive, sustainable and future-ready cities across Bihar.
Among those present were Urban Development Secretary Animesh Kumar Parashar, Special Secretary Nilesh Ramchandra Deore, Additional Secretary Vijay Prakash Meena, Patna Municipal Commissioner Yashpal Meena, and World Bank representatives Bernardus J.H. Maskens, Prakash Gaur, Poonam Ahluwalia Khanijo and Yoji Toriumi.
