States » EastPosted at: Oct 28 2026 9:15PM


Bihar cabinet approves Rs 11,096-crore power plan, MSME & biofuel policies

Patna, Oct 28 (UNI) The Bihar Cabinet on Wednesday approved Rs 11,096.55-crore scheme to strengthen the state's electricity distribution network over three years and cleared several measures to promote industrial investment, employment, infrastructure development and policing.
Additional Chief Secretary Arvind Chaudhary said the Cabinet approved the Bihar MSME Policy 2026, the Chief Minister's MSME Cluster Development Scheme 2026 and the Bihar Biofuel and Compressed Biogas Promotion Policy 2026.
Under the power distribution scheme, the North Bihar Power Distribution Company Limited and the South Bihar Power Distribution Company Limited have been authorised to raise loans of Rs 6,066 crore and Rs 5,030.55 crore, respectively, with a state government guarantee. Bihar''s peak electricity demand has risen from 1,802 MW in 2012 to 9,475 MW.
The Cabinet also approved Rs 33.44 crore for installing two additional 200-MVA power transformers at grid substations in Darbhanga and Khagaul.
The MSME policy targets developing one crore entrepreneurial families and generating one crore direct and indirect jobs over five years. It also aims to raise the state''s credit-deposit ratio to 75 per cent, establish MSME centres in all 38 districts and develop at least one industrial cluster in every district.
The cluster development scheme will support traditional artisans and small enterprises through common facility centres, skill development, technological upgradation and improved market access.
The biofuel policy seeks to promote projects using agricultural residues, animal waste, municipal solid waste and press mud. The Industries Department will serve as the nodal agency.
The Cabinet approved private investment of Rs 88.62 crore for a maize starch plant in Kishanganj, expected to generate 217 jobs, and Rs 97.80 crore for expanding a grain-based ethanol plant in Gopalganj. The latter''s capacity will increase from 167.5 to 325 kilolitres per day, with employment potential for 210 workers.
It also approved industrial development on land belonging to the closed Motipur Sugar Mill in Muzaffarpur and plans to establish a new sugar mill with associated units at Warisaliganj in Nawada district.
Other decisions included expanding the Sonpur planning area, lifting land-transfer restrictions in selected greenfield satellite township zones, and approving consultancy services worth Rs 37.10 crore for three proposed road projects.
The Cabinet sanctioned Rs 11.83 crore for seed processing and storage infrastructure, Rs 12 crore for Bihar State Games 2026, and Rs 43.50 crore in viability gap funding for regional air connectivity under the UDAN scheme.
It also approved Rs 2.34 crore for delivering government information and services through WhatsApp, with BSNL selected as the implementing agency, and Rs 58.80 crore annually to provide accommodation support for around 49,000 government engineering and polytechnic students.
In policing and administration, the Cabinet approved three City Superintendent of Police posts in Motihari, Purnia and Saran, along with 143 posts for regional economic offences units. It also cleared the restructuring of police posts in Bhagalpur and measures to strengthen scientific investigation units.
Other approvals covered flood-risk studies along the Kosi, Gandak and Sone rivers, dam safety assessments, land transfers for the Supaul-Araria railway line, and the creation of special courts for NDPS cases in Madhubani and commercial disputes in Patna.
UNI RS BM
Tags: #Bihar cabinet approves Rs 11#096-crore power plan# MSME & biofuel policies
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