World Bank to Support Bihar’s Plan for Modern Cities and Economic Growth Zones

In a major push toward urban modernisation and infrastructure expansion, the Bihar Cabinet has approved a USD 500 million (around Rs 4,720 crore) loan from the World Bank to strengthen selected cities and develop integrated urban economic zones across the state. The ambitious programme is being seen as Bihar’s long-term roadmap for building climate-resilient cities, improving infrastructure, and reducing pressure on overcrowded urban centres like Patna.

The proposal was cleared during a cabinet meeting chaired by Bihar Chief Minister Samrat Choudhary. According to Additional Chief Secretary Arvind Kumar Chaudhary , the project aims to ensure “organised growth, rapid urbanisation and sustainable climate-sensitive development.”

Officials clarified that the funding is not a direct loan from the United States government, but from the World Bank, a multilateral financial institution backed by more than 180 countries, including India and the US. Apart from financing, the World Bank is expected to provide technical expertise in urban planning, climate adaptation, governance reforms, and infrastructure management .

While the Bihar government has not yet officially released a final list of pilot cities, policy announcements linked to transport and urban infrastructure suggest that Patna, Gaya, Muzaffarpur, Bhagalpur, Darbhanga, and Purnia are among the key urban centres likely to be prioritised in the first phase of the programme. These cities are already being targeted under the PM-eBus Sewa scheme , where electric AC buses are planned for deployment as part of Bihar’s broader urban mobility strategy.

Sources indicate that the World Bank-backed funds are expected to be spent on upgrading urban roads, drainage systems, sewage networks, flood management infrastructure, water supply systems, and smart civic services . The programme also proposes the development of integrated urban economic zones combining industrial hubs, logistics centres, commercial spaces, and housing infrastructure in a planned manner.

Officials believe the initiative could help transform emerging regional cities into economic growth centres while reducing migration pressure on Patna. Bihar is also reportedly exploring plans for nearly 11 satellite townships , which may later complement the urban transformation programme.

In another major decision, the cabinet approved a Rs 15,967 crore road maintenance project covering over 19,300 km of roads , where Artificial Intelligence (AI) and Machine Learning (ML) technologies will be used for monitoring and maintenance.

The state also increased subsidies for operating 400 electric AC buses , approved land transfer for Patna airport expansion, and cleared an e-voting system for municipal elections to assist senior citizens, migrant voters, and persons with disabilities.