World Bank to finance Jivika scheme in Bihar

Patna, Jun 18 (UNI) With the help of the World Bank (WB), the state government is all set to change the face of rural Bihar by launching Bihar Rural Livelihood Project -- "Jivika" worth Rs 306.6 crore.

Bihar Deputy Chief Minister Sushil Kumar Modi, also holding the Finance protfolio, told newspersons here that the project got a final shape on May 15 this year.

The board of the WB approved the project on June 14, he said and informed that the "Jivika" would be launched in six districts, including Nalanda, Gaya, Khagaria, Muzaffarpur, Purniya and Madhubani.

Mr Modi said starting from September one the project would continue till August 21, 2012.

He said the WB had agreed to give Rs 264.6 crore and the state government would relase its matching share of Rs 29.4 crore. The rest Rs 12.6 crore would be met by the benefeciaries.

Mr Modi further said the government had signed an MOU with the State Bank Of India (SBI) for providing financial assistance to the self-help groups to be set up under the group.

Similar schemes involving self-help groups had played pivotal role in the development of Andhra Pradesh, Tamil Nadu and other states of south India, he said and hoped the project would help in changing the rural face of Bihar.

Mr Modi referred to the outcomes of the meeting held during the day between the Bankers and Union Minister of State for Finance Pawan Bansal, saying the Minister directed the Banks to open no frill account in the rural areas.

In the wake of the directives of the Minister, the Commercial Banks adopted 16 districts of Bihar for opening the no frill accounts.

The Bankers agreed to open branches of Commercial Banks at seven places as 37 blocks in the state were devoid of any such branch. The Banks also assured of solving the problems of single officer branch as 454 branchs of Comercial Banks were still run by single officer in the state.

Mr Modi said the Banks had been asked to distribute Rs 13,100 crore loan under Annual Credit Plan (ACDP) in the state in the current financial year.

UNI