Press Information Bureau

Government of India

Cabinet Committee on Economic Affairs (CCEA)

25-October-2012 18:30 IST

The Cabinet Committee on Economic Affairs today approved the proposal for :-

(i) continuing the Special Plan for Bihar in 2012-13 with an allocation of Rs.1500 crore, based on the enhanced level of cost of Rs.9985.54 crore of all existing projects, revised cost of existing projects, and the cost of new projects, if any, that may be approved by the Empowered Committee,

(ii) continuing the Special Plan for the Kalahandi-Bolangir-Koraput (KBK) districts of Odisha in 2012-13 with an allocation of Rs.250 crore, and

(iii) continuing the special package for implementing drought mitigation strategies in Bundelkhand region of Uttar Pradesh and Madhya Pradesh in 2012-13 with an Additional Central Assistance of Rs.1400 crore.

The Backward Regions Grant Fund (BRGF), which aims to catalyze development in backward areas, was approved by the CCEA in August, 2006. In its present form, the BRGF has two components, namely, District Component covering 272 backward districts in 27 States (including 22 additional districts covered in 2012-13) and State Component which includes Special Plan for Bihar, Special Plan for the KBK districts of Odisha, Special Plan for West Bengal (covered in 2011-12), Integrated Action Plan (IAP) for Selected Tribal and Backward Districts (covered in 2010-11) and Bundelkhand Package (covered in 2009-10).

The implementation of the programmes is being done by the State Governments. The aim of the programme is to accelerate socio-economic development in the States concerned.

Through the continuation of the Special Plan for Bihar, Special Plan for the KBK districts of Odisha and the Bundelkhand package in 2012-13, accelerated socio-economic development of backward areas covered under the programmes is expected to take place.

The backward areas of the States covered under the State Component of BRGF will benefit. All the 38 districts of Bihar, eight districts of the KBK region and 13 districts of Bundelkhand region are covered.

These programmes are continuing programmes and were under implementation during the Eleventh Five Year Plan.

Background:

The Twelfth Five Year Plan (2012-17) is being finalized. The possibility of restructuring the Backward Regions Grant Fund (BRGF) including the District Component as well as the State Component for the period 2013-14 to 2016-17 is being considered. Pending completion of this exercise, it is necessary to continue the BRGF (District Component and State Component) in its present form in 2012-13. The district component of BRGF as well as the special plan for West Bengal and the Integrated Action Plan (IAP) for selected tribal and backward districts under the State component of BRGF are already approved for continuation in 2012-13. Since the present approval to the special plan for Bihar, special plan for the KBK districts of Odisha and Bundelkhand package is valid only for the Eleventh Five Year Plan period i.e. 2011-12, it is now proposed to continue these programmes in 2012-13 in its present form.

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SC/LM

BRGF continuation extends special state plans and regional packages to sustain socio-economic development in backward areas. The Cabinet Committee on Economic Affairs approved continuation in 2012-13 of central assistance under the Backward Regions Grant Fund State Component by extending the Special Plan for Bihar, the Special Plan for the KBK districts of Odisha, and the Bundelkhand drought mitigation package in their present form, preserving existing district coverage and the implementation framework by State Governments while a broader BRGF restructuring for the Twelfth Five Year Plan is considered.