NEW DELHI: The World Bank has cleared a $220-million (a little above Rs 1,000 crore) credit package for Bihar to back the Nitish Kumar government’s rebuilding efforts in areas ravaged by the 2008 Kosi floods.
The development is certain to come as a shot in the arm for the ruling JD(U)-BJP combine in Bihar. The alliance may use the package to its advantage during the campaigning for the ensuing assembly polls in the state. The credit, cleared on Friday, is being lent by the International Development Association, the World Bank’s concessionary lending arm. The Bank’s package is in the form of interest-free loans. The principal amount can be repaid within a span of 35 years, with a 10-year grace period.
The announcement comes in the wake of a Rs 1,100-crore relief package cleared for the state by an inter-ministerial group set up by the Centre for making up for the losses to its kharif crop by the debilitating drought this year. The Centre will provide the financial assistance from the National Disaster Relief Fund. The proposal is expected to be formally cleared next week by a high-level committee headed by finance minister Pranab Mukherjee.
The Bihar Kosi Flood Recovery Project unveiled by the World Bank in Washington on Friday will “finance flood recovery efforts through the reconstruction of about one lakh houses, 90 bridges and 290 km of rural roads. It also aims to reduce future oriented risks by strengthening flood management capacity, restoring livelihoods, and improving the emergency response capability of the state through a provision of contingency fundingâ€.
The 2008 floods, it may be mentioned, had severely affected about 3.3 million people in five districts of Bihar, including Madhepura, Supaul, Saharsa, Purnea and Khagaria. About one million people were evacuated, 4.6 lakh people were provided temporary shelter in 360 relief camps set up across the region, and more than 500 people lost their lives.
The floods crippled the region’s economy, increasing the hardships faced by the people. The poorer and weaker sections were hit harder, as they lost their sources of livelihood. Hailing the World Bank’s gesture, Bihar chief secretary Anup Mukherjee remarked: “The Kosi flood of 2008 was the worst in the last 50 years in India and was declared a national calamity by the government of India. The Bihar government has been undertaking extensive reconstruction and rehabilitation efforts which will also help us mainstream disaster risk management in the development strategy of the state.â€
The Bihar Kosi Flood Recovery Project, the World Bank said, has five key components, including owner-driven housing reconstruction; reconstruction of roads and bridges; strengthening flood management capacity, livelihood restoration and enhancement; and improving emergency response capacity.