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April 14, 2000

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Bihar seeks Rs 500bn to compensate for Jharkhand

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The Bihar government is planning to seek from the Centre, Rs 500 billion as compensation for the likely loss of natural resources and assets after the creation of Vananchal state.

Creation of the new state comprising 18 South Bihar districts has become the main topic of discussion in the corridors of power these days. The debate is due to the new political reality in Patna which has forced the Rashtriya Janata Dal to reverse its stand and support the statehood issue.

The state assembly and the legislative council are scheduled to meet on April 24 to debate the issue and pass the Bihar State Re-organisation Bill.

The state government's new demand for compensation in lieu of Jharkhand's mineral and other resources, which would automatically pass on to the new state, would also be taken up on the floor of the legislature the same day.

Official sources said chief secretary V S Dubey held a meeting to discuss, among other things, the likely economic fallout and the losses Bihar would incur when it is sundered.

The various departmental heads are understood to have placed their respective demands and furnished details of the likely loss of assets, which might be transferred to the new state on its creation.

The BJP has, however, sought a compensation of Rs 1150 billion and sent a memorandum in this connection to the Planning Commission.

UNI

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