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Bihar Cabinet Approves 25 Big Decisions: New Panchayat Delimitation, Rural Taxes, ₹829 Crore Water Projects

CM Samrat Choudhary-led Bihar Cabinet clears major proposals including 2011 Census-based Panchayat restructuring, salary hike for jail staff, women police scooters, and AMRUT 2.0 urban development projects.
Indian Masterminds Stories

Patna: The Bihar government has approved 25 important proposals in the state cabinet meeting chaired by Chief Minister Samrat Choudhary on July 15, 2026.

The key decisions include new delimitation of Panchayats based on the 2011 Census, introduction of new tax rules for rural areas, salary hikes for jail employees, compensation policy for prisoners’ families, purchase of scooters for women police personnel, temple development initiatives, and major urban water and sewerage projects worth ₹829 crore.

The decisions were announced by Additional Chief Secretary of the Cabinet Secretariat Department, Arvind Kumar Choudhary.

Bihar Panchayats to be Redefined According to 2011 Census Population

One of the biggest decisions taken by the Bihar Cabinet is the new delimitation of Panchayat areas based on the 2011 population data.

According to the government, the move will help strengthen local self-governance and ensure better representation according to population patterns.

The government said the new delimitation process will help in:

  • Strengthening local governance systems.
  • Ensuring balanced representation based on population.
  • Improving implementation of development schemes.
  • Making public services more accessible.
  • Increasing administrative efficiency in rural areas.

The formation and restructuring of Gram Panchayat areas are expected to bring better regional balance and improve rural development planning.

Read also: Bihar Tourism Push: Govt Launches ₹2,700 Crore Projects to Transform State into Global Tourist Destination

New Taxes on Rural Holdings and Business Establishments

The Bihar Cabinet has approved the Gram Panchayat Tax Rate and Fee Rules, 2026 to help Panchayats generate their own resources.

Under the new rules:

  • Taxes will be imposed on holdings in rural areas.
  • Shops and businesses operating within Panchayat limits will have to pay prescribed fees.
  • Charges will apply to commercial activities, trade, industries, and businesses located in Panchayat areas.

The government said the decision will help Gram Panchayats become financially stronger and reduce dependence on state government funds.

Motor Vehicle and Business Tax Rates Increased

The Cabinet also approved changes in motor vehicle charges and business tax rates.

Key decisions include:

  • Two-wheeler tax: One-time tax increased by 1%.
  • Three-wheeler tax: Existing tax increased by ₹1,000.
  • Business tax: Increased up to four times.

The government aims to increase revenue through these revised tax structures.

Salary Hike Approved for Jail Employees

The Bihar Cabinet approved a salary increase for contractual former soldiers and warders working in prisons.

The monthly salary has been increased from:

  • Earlier salary: ₹19,800 per month
  • New salary: ₹30,000 per month

The decision will benefit employees working in the state’s prison department.

Compensation Policy Approved for Families of Deceased Prisoners

The state government has also approved a compensation policy for dependents, family members, or legal heirs of prisoners who die while serving sentences.

The policy aims to provide financial assistance to affected families.

1,500 Scooters Approved for Women Police Personnel

To improve women’s safety in schools, colleges, coaching centres, and other institutions, the Bihar Cabinet approved the purchase of 1,500 scooters for women police personnel.

The approved vehicles include:

  • 1,000 petrol scooters
  • 500 electric scooters

The initiative aims to improve mobility and quick response capability of women police teams.

₹829 Crore AMRUT 2.0 Projects Approved for Four Bihar Cities

The Bihar Cabinet has approved four major drinking water and sewerage projects under the AMRUT 2.0 Mission.

The projects will be implemented in:

  • Samastipur
  • Sitamarhi
  • Khagaria
  • Hajipur

The total approved investment is around ₹829 crore, aimed at improving drinking water supply and sanitation facilities in these cities.

Samastipur Gets ₹228.45 Crore Water Supply Project

A water supply project worth ₹228.45 crore has been approved for Samastipur city.

The project will provide direct tap water connections to:

  • 17,899 households

Major works under the project include:

  • Construction of an intake well near a water source.
  • Installation of an 80 MLD water treatment plant.
  • Construction of 7 water tanks.
  • Laying of 546.88 km water distribution pipeline network.
  • Installation of a modern SCADA monitoring system.

Sitamarhi Approved ₹197.12 Crore Water Supply Scheme

For Sitamarhi, the government has approved a ₹197.12 crore drinking water project.

The project will benefit:

  • 18,599 households

Major features include:

  • Construction of 33 tube wells.
  • Development of 17 pump houses.
  • Installation of 34 iron removal plants.
  • Construction of 12 water tanks.
  • Laying of 2.10 km rising main pipeline.
  • Development of 502.45 km water distribution network.

Khagaria Receives ₹170.86 Crore Water Project

A major drinking water project worth ₹170.86 crore has been approved for Khagaria.

The project will provide tap water connections to:

  • 19,436 households

Infrastructure planned under the project:

  • Intake well with 38.56 MLD capacity.
  • 38.5 MLD water treatment plant.
  • Construction of 6 water tanks.
  • Laying of 13.20 km rising main pipeline.
  • Development of 211.22 km water supply network.

Hajipur Gets ₹232.90 Crore Sewerage Network Project

For improving sanitation facilities, the Cabinet approved a ₹232.90 crore sewerage network and sewage treatment plant project for Hajipur.

The project will include:

  • Sewer connections for 1,049 households in eight wards.
  • Construction of a 7 MLD sewage treatment plant (STP).
  • Laying of 47.19 km sewer pipeline network.
  • Construction of 3 intermediate pumping stations.
  • Development of 4.25 km rising main pipeline.

The project aims to improve wastewater management and reduce pollution in the city.

Temple Development Projects Approved in Bihar

The Bihar Cabinet also approved decisions related to temple development and management.

Key decisions include:

  • Formation of Bhavani Temple Nyas Committee for the development and management of Mundeshwari Bhawani Temple in Kaimur district.
  • Approval of land-related proposals for the development of Punaura Dham Temple in Sitamarhi.

These initiatives aim to promote religious tourism and improve facilities at important pilgrimage sites.

Bihar Government’s Focus on Rural Development and Urban Infrastructure

The latest cabinet decisions reflect the Bihar government’s focus on strengthening rural governance, improving urban infrastructure, increasing employment support, and enhancing public services.

From Panchayat reforms and tax changes to major water supply and sewerage projects, the approved proposals are expected to impact millions of residents across the state.

The ₹829 crore AMRUT 2.0 projects will particularly help improve access to clean drinking water and sanitation facilities in four major cities of Bihar.

Read also: Bihar Signs MoU with NEDFi for Water Hyacinth Craft Project to Boost Rural Employment and Sustainable MSMEs


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