World Bank plans to double financial aid to Bihar to $1 bn

The World Bank is planning to double up the financial assistance to Bihar to around USD1 billion in next couple of years. According to the bank, the money will accelerate development works in the state. Education, health care and infrastructure development projects will be the priority sectors for financing.

"Bihar is important to us," said World Bank Country Director Onno Ruhl, "At present, we have a financial commitment of USD500 million in the state. However, given the fast pace of development here, we are considering doubling up the assistance in the next couple of years." He added that the state have to sustain the pace to catch up with the rest of the country in terms of development. "Therefore is continued and higher financing is important for Bihar", he said.

The bank has also identified segments of development for assistance in Bihar. Ruhl said, "We want to provide assistance for education, especial girl's education, health care, rural development, urban development and infrastructure schemes like construction of roads, power distribution, tourism and agriculture roadmap," he said.

The Bank wants to collaborate with the state government to increase agricultural productivity in Bihar. Ruhl also advised the Bihar government to work on infrastructure development in urban areas to accommodate migrating people. "Urbanised states have grown faster and achieved inclusive growth as against those states where majority of population live in rural areas", added the World Bank official. Raul also asked the state government to leverage the Eastern Freight Corridor to maximise benefits.