The union government Thursday approved more funds to the tune of Rs.1,500 crore ($300 million) for Bihar and Rs.250 crore ($50 million) for Odisha to meet expenses on development projects in backward regions.
The union government also cleared proposals for a Rs.1,400-crore ($280-million) additional development fund for the Bundelkhand region straddling across the borders of Uttar Pradesh and Madhya Pradesh.
The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Manmohan Singh, at a meeting here gave its nod to the proposals under the state component of the Backward Regions Grant Funds (BRGF).
"The Cabinet Committee on Economic Affairs today (Thursday) approved the proposal for continuing the special plan for Bihar in 2012-13 with an allocation of Rs.1,500 crore based on the enhanced level of cost of Rs.9,985.54 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," a government release said here.
The committee also gave its nod for "continuing the special plan for the Kalahandi-Bolangir-Koraput (KBK) districts of Odisha in 2012-13 with an allocation of Rs.250 crore."
It also approved a proposal for "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. 1,400 crore."
The BRGF, which aims to catalyse development in backward areas, was approved by the CCEA in August, 2006.