Budget: Bihar, Andhra, Odisha get lion’s share; real challenge is implementing projects

Challenges for Amaravati, Polavaram project

The Centre has committed ₹15,000 crore for developing Amaravati, the new capital of Andhra Pradesh. This is a significant investment aimed at establishing a world-class city. However, the progress has been slower than anticipated, with delays in land acquisition and project execution. While the funding is a positive step, the effective utilisation of these funds remains a critical challenge.

The Polavaram project, a major irrigation initiative in Andhra Pradesh, continues to receive support from the central government. The ongoing commitment of ₹11,500 crore indicates the project's importance in addressing water scarcity and boosting agricultural productivity. Yet, the project has faced several delays due to environmental clearances and rehabilitation issues, which must be addressed promptly to meet the deadlines.

Land acquisition roadblocks in Bihar

Bihar has been allocated ₹26,000 crore for highway projects, including major routes such as the Patna-Purnea Expressway and the Bodhgaya-Rajgir-Vaishali-Darbhanga Expressway. These projects are expected to improve connectivity and stimulate economic growth. However, Bihar’s historical land acquisition and project management challenges could delay these ambitious plans.

The announcement of new airports, medical colleges, and sports infrastructure in Bihar aims to enhance transportation, healthcare, and sports facilities and contribute to the state’s overall growth.

Inadequate infrastructure, red tapism

The support for an industrial corridor in Gaya, part of the Amritsar-Kolkata industrial corridor, is a strategic move to boost industrial activity in Bihar. This initiative is expected to create job opportunities and attract investments. However, Bihar’s industrial landscape has historically been plagued by inadequate infrastructure and red tape, which could hinder these developments.

A ₹21,400 crore investment in a 2,400 MW power plant in Pirpainti, Bhagalpur, aims to address the state’s energy needs. If executed efficiently, this project could significantly improve the power supply in Bihar, fostering industrial and residential development.

Flood assistance for Bihar

Bihar has also been included in the list of states that will receive flood assistance.

"Bihar has frequently suffered from floods, many of them originating outside the country. Plans to build flood control structures in Nepal are yet to progress," stated Union Finance Minister Nirmala Sitharaman. The Accelerated Irrigation Benefit Programme and other funding sources will provide financial support amounting to ₹11,500 crore for projects such as the Kosi-Mechi intra-state link.

Purvodaya initiative to benefit Odisha

Odisha stands to benefit significantly from the Purvodaya initiative, which aims to develop eastern states comprehensively. The focus on human resources, infrastructure, and economic opportunities is crucial for the region’s growth. However, the effectiveness of these initiatives will depend on the state’s ability to overcome bureaucratic inertia and ensure timely project execution.

The establishment of an integrated steel hub in Odisha, projected to increase steel production capacity to over 100 million tonnes per annum by 2030, is a landmark initiative. This move aligns with the National Steel Policy’s goals and positions Odisha as a critical player in India’s steel industry. Nonetheless, such massive industrialisation's environmental and social impacts need careful management to avoid long-term adverse effects.

The NDA government’s efforts to fulfil its promises to Andhra Pradesh, Bihar, and Odisha reflect a strategic approach to regional development and coalition politics. While significant financial commitments and project announcements are commendable, the real test lies in effective implementation and overcoming existing challenges.