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Power supply in Bihar will now be better, Nitish cabinet approved Rs 3056 crore

Pankaj Prasad
Power supply in Bihar
Power supply in Bihar

The state government on Thursday approved a loan from NABARD to install smart prepaid meters in Bihar.

In order to make better arrangements for power supply in Bihar, the state government has approved Rs 3056.42 crore in the cabinet meeting on Thursday. In the meeting of the state cabinet, approval has been given to provide equity form to North Bihar Power Distribution and South Bihar Power Distribution Company Limited as share capital.

Amount to be made available under loss reduction component

This amount is to be made available to both the power companies under the Loss Reduction Component under the Revival Sector-RDSS. The total proposed amount in this scheme was Rs 7,305.05 crore. For its implementation, 60 percent i.e. Rs 4,248.63 crore is to be given as grant under 60:40 funding of Rs 7,081.05 crore by the central government. At the same time, the remaining amount of Rs 3056.42 crore was to be given to the state government.

The state government has given approval to take loan from NABARD

The state government on Thursday approved a loan from NABARD to install smart prepaid meters in the state. At the same time, there was a provision of Rs 11 thousand 100 crore for installing smart prepaid meters, in the state cabinet meeting it was approved to be Rs 15,074.12 crore. In this, approval was given to both the distribution companies to get loans from NABARD on the guarantee of 30 percent i.e. Rs 4522.24 crores of the state government. Out of this amount, North Bihar Power Distribution and South Bihar Power Distribution Company Limited will be able to take a loan of Rs 1,100 crore for the financial year 2022-23.

Industrial Investment Promotion Policy 2016 got approval 

In the cabinet meeting, approval has been given to amend the Bihar Industrial Investment Promotion Policy 2016 (as amended 2020). According to the new policy, the land of Biada will now be allotted for the service sector in addition to the manufacturing unit. Now this land will be given for IT Park (Design and Development of Software, Call Centre, Online Examination Center and Electronic Fabrication. Also for Startup Co-working Spat and Startup Hub. Great-A Ware House & Logistics Park (as per the standards set by BIADA) and will also be allotted for Research Lab and Testing Lab.