CCEA approves 250 crore for KBK under BRGF

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved allocation of funds of Rs 250 cr per annum for the Kalahandi-Bolangir-Koraput (KBK) region of Odisha for the next four years.

The amount remains same as a special plan under the Backward Region Grant Fund (BRGF) for the 12th five year plan as in the 11th plan.

On the other hand in the backdrop of a strong demand from political parties in Bihar for special category status, the CCEA approved allocation of enhanced funds for the state, of Rs 12,000 crore as a special plan under the BRGF for the 12th five-year plan (2012-13 to 2016-17) against Rs 6,500 crore in the previous plan.

Apart from KBK and Bihar 13 districts of the Bundelkhand region of Uttar Pradesh are also covered under the same plan.

Previously the Budget for 2013-14 had announced an enhanced allocation under the BRGF to Rs 11,500 crore for the previous financial year (BE) against Rs 10,524 crore in 2012-13. However, compared to the BE of the previous financial year, the allocation is less for the current fiscal. As much as Rs 12,040 crore was initially allocated for 2012-13 in the Budget Estimates.

The BRGF, which aims to catalyse development in backward areas, was approved by the CCEA in August, 2006.

In its present form, the BRGF has two components: the district component covering 272 backward districts in 27 states (including 22 additional districts covered in 2012-13) and the state component that includes special plans for Bihar, the KBK districts of Odisha and West Bengal (covered in 2011-12) and Bundelkhand Package (covered in 2009-10).