The Centre has refused to accept the Bihar government’s proposal for a loan
from the World Bank (WB) for the renovation of the Barauni Thermal Power Station (BTPS).
The Nitish government had sometimes back presented a proposal before the Centre for a WB
loan worth Rs 1,800 crore, which, however, was not accepted.
But the state government alleged that the Centre had adopted partisan approach as it gave its nod to a similar proposal presented before it by the Congress-ruled government in Andhra Pradesh.
The deputy chief minister Sushil Kumar Modi, expressed his displeasure at a pre-budget meeting of the state finance ministers convened by Union finance minister Pranab Mukherjee in New Delhi on January 18. He then said that it is a matter of irony that the proposal for World Bank loan for renovation of Barauni Thermal Power Project worth Rs 1,800 crore was not accepted by the department of economic affairs, though a similar project for a loan worth Rs 7,800 crore for Andhra Pradesh was cleared last month.
Modi had also said that as Bihar is wholly dependent on power allocation from the Central sector generating units, it needs substantial increase in the allocation of power from the Central sector during the 12th Five Year Plan period to bridge the gap between state’s per capita consumption of power and the national average.