The Cabinet Committee on Economic Affairs (CCEA) on 18 April 2013 approved to continue the special plan for Bihar in the remaining four years of the 12th Five Year Plan. The CCEA approved a total allocation of 12000 crore rupees for the entire plan period. The Package was approved for Bihar under Backward Region Grant Fund (BRGF) – State Component.
On the same occasion the CCEA also gave its approval to continue the special plan in Odisha and Uttar Pradesh respectively.
The regions for which the approval was made for the two states are:
• The Plans were approved for the KBK districts (Kalahandi-Bolangir-Koraput) of Odisha. The CCEA made an allocation of 250 crore rupees per annum in the remaining four years 2013-14 to 2016-17 of the Twelfth Five Year Plan
• For implementation of the drought mitigation strategies in Bundelkhand region of Uttar Pradesh and Madhya Pradesh for the remaining four years 2013-14 to 2016-17 of the Twelfth Five Year Plan the special package was approved by the CCEA. A total allocation of 4400 crore rupees for the entire Twelfth Five Year Plan period was approved by the CCEA.
Background of Backward Region Grant Fund (BRGF)
The BRGF, aims towards catalyzing the development programs in the backward areas. It was approved by the CCEA in August 2006. In its present form, the BRGF has two components, namely district component covering 272 backward districts in 27 states (including 22 additional districts covered in 2012-13) and state component, which includes the special plan for Bihar, the special plan for the KBK districts of Odisha and the special plan for West Bengal (covered in 2011-12) and Bundelkhand Package (covered in 2009-10).