Bihar cabinet approves $500 million World Bank loan plus AI, transport, and land measures

The Bihar Cabinet, chaired by Chief Minister Samrat Choudhary, took 20 decisions during the meeting.

Administrative approval was given for an estimated expenditure of ₹15,967.03 crore for the maintenance of state roads.

The Government Medical College and Hospital being constructed at Sitamarhi was named after Maa Sita.

The tenure of the Seventh State Finance Commission was extended to September 30, 2026.

Approval of the Bihar Building (Amendment) Bylaws, 2026 to reduce loss of commercial land and ease urbanisation pressures by simplifying and expediting building permissions using technology and accountable governance.

The Cabinet extended the Bihar Industrial Investment Promotion Package (BIIPP) 2025 upto June 30, 2026 following investor interest, maintaining continuity in industrial investment.

The Cabinet approved transferring 1.85 acres of land (including passage) to AAI Patna free of cost; the land, part of the industrial area Patna (urban) abutting the airport campus, could be used for airport infrastructure and related purposes.

The transport department's proposal to purchase 400 electric AC buses under PM E-Bus Sewa Yojana was approved, with 150 buses for Patna and 50 buses each for Muzaffarpur, Bhagalpur, Gaya, Darbhanga, and Purnea; the scheme will run for 12 years from the 2026-27 financial year, with a revised cash gap subsidy of ₹517.16 crore.

The Cabinet approved quality AI training for members of both the State legislative assembly and council, as well as state government officials; established the Bihar Artificial Intelligence Mission to position Bihar as a leading state in AI and to make systems more transparent and data-driven.

The Bihar Cabinet approved a $500 million loan from the World Bank to make the state economically stronger, more productive, and to develop integrated urban economic regions and basic urban infrastructure.