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Bihar Cabinet Approves 25 Major Proposals, Sanctions ₹43 Crore for Sasa Musa Sugar Mill and Big Welfare Push

State clears key decisions on rural jobs, irrigation, urban infrastructure, pensions, and industrial reforms to accelerate development across Bihar.
Indian Masterminds Stories

Patna: The Bihar Cabinet has approved 25 key proposals related to development, welfare, and governance reforms in a major meeting held in Patna. The decisions aim to strengthen infrastructure, support farmers, improve urban services, and boost employment opportunities across the state.

The meeting was chaired amid ongoing political and administrative developments in the state.

₹43 Crore Approved for Sasamusa Sugar Mill and Farmers’ Dues

One of the most significant decisions was the approval of approximately ₹43 crore for clearing pending dues of sugarcane farmers linked to the Sasamusa Sugar Mill in Sasamusa Sugar Mill.

This move is expected to:

  • Provide long-pending financial relief to farmers
  • Support revival of the sugar mill
  • Generate local employment opportunities

Read also: Bihar Launches CGRM Portal to Digitally Monitor Rural Development Schemes for Greater Transparency

Major Rural Employment Scheme from July 2026

The cabinet approved the “Viksit Bharat – Rural Employment and Livelihood Guarantee Mission”, which will be implemented from July 1, 2026.

Key objectives include:

  • Strengthening rural job creation
  • Expanding livelihood opportunities
  • Enhancing economic stability in villages

Massive Investment in Irrigation and Flood Management

The government cleared several large-scale water management projects:

Dakanala Pump Canal Project

  • ₹251.55 crore approved
  • Aimed at improving irrigation infrastructure

Sindhwarani Reservoir Scheme

  • ₹196.89 crore sanctioned
  • Expected to enhance canal irrigation capacity

Flood Control and River Management

  • ₹400+ crore allocated for 2026–27
  • Focus on disaster protection and river regulation

These initiatives aim to strengthen agricultural productivity and reduce flood risks across Bihar.

Urban Infrastructure Boost in Multiple Cities

Major approvals were given for water supply and sewage systems in key cities:

  • Bihar Sharif
  • Hajipur
  • Begusarai
  • Saharsa

Projects include:

  • Sewage network expansion
  • Drinking water supply systems
  • STP (Sewage Treatment Plant) development

Investment range: ₹100 crore to ₹375 crore per project.

Education and Technology: IIT Patna Expansion

The cabinet approved major infrastructure expansion at:

Indian Institute of Technology Patna

Key developments:

  • Research Park construction
  • New hostel facilities
  • Strengthening higher education infrastructure

Additionally, funding was cleared for:

  • e-Procurement 2.0 system
  • BIHAR SNA-SPARSH platform

These reforms aim to improve transparency in government procurement and payments.

Social Security: ₹3,662 Crore Pension Advance Approved

A massive allocation of over ₹3,662 crore was approved for social security pensions covering May, June, and July 2026.

Schemes include:

  • Old age pension schemes
  • Widow pension schemes
  • Disability pension schemes
  • CM Social Security Pension Scheme

The funds will be transferred via Direct Benefit Transfer (DBT) to ensure timely payments.

Farmers’ Protection: Crop Insurance Scheme Revived

The government also approved the revival of the Pradhan Mantri Fasal Bima Yojana (PMFBY) for 2026–27.

Benefits:

  • Financial protection against crop loss
  • Risk coverage for farmers
  • Strengthening agricultural security

Land Measurement Fees Revised

The cabinet revised land measurement charges:

  • Urban areas: ₹2,000–₹8,000 per khesra (normal), up to ₹16,000 (urgent)
  • Rural areas: ₹1,000–₹4,000 per khesra (normal), up to ₹8,000 (urgent)

This reform aims to streamline land-related administrative services.

Administrative Reforms and Investment Push

Key governance decisions include:

  • Amendments in commercial tax and e-stamp rules
  • Private nursing home regulations updated
  • Investment Promotion Board empowered for faster approvals

These steps are designed to improve ease of doing business in the state.

Political Context: Legislative Council Elections Activity

The cabinet meeting coincided with political activity around the Bihar Legislative Council Elections 2026.

  • NDA filed 9 nominations (JD(U), BJP, LJP(R) distribution)
  • Opposition RJD also fielded candidates
  • Absence of some expected names triggered political discussions

The latest Bihar Cabinet meeting reflects a strong focus on infrastructure expansion, farmer welfare, rural employment, urban modernization, and administrative reform. With large-scale investments across sectors, the government aims to accelerate Bihar’s development trajectory while addressing both rural and urban needs.

Read also: Bihar Govt Sets Ambitious Sports Overhaul: Olympic-Level Facilities, Rajgir Stadium Ready by 2026


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