Bihar needs special assistance: Chidambaram

Patna, Sep 2: Union Finance Minister P Chidambaram here today said Bihar was economically backward and needed special assistance for its overall development.

After inaugurating the eigth zonal LIC office, Mr Chidambaram said the three states - Bihar, Jharkhand and Orissa - had immense potential and they could become the richest zone in the country lifting India's growth rate far beyond 9.3 per cent achieved last year.

He said Bihar was potentially rich in agriculture while Jharkhand and Orissa in mines and minerals and by utilising their resources, the country can attain landmark growth rate.

He was accompanied by Union Fertilizers Minister Ramvilas Paswan and Railway Minister Lalu Prasad and Bihar Chief Minister Nitish Kumar.

Mr Chidambaram said the Centre had realised that Bihar needed special financial help for overall development and announced his ministry's full support.

He said financial help was needed in various sectors including health, education, flood, drainage, railway, agriculture and industries and assured that the Centre would stand by the Bihar government.

Mr Chidambaram admitted that with 80 crore people remaining uncovered under any insurance policy, including health, life and accident, India was the most ''underinsured'' country in the world. He said that in order to reach the poor masses and ensure full coverage for the deprived sections of the society, the Cabinet had sanctioned an ambitious scheme - ''Aam Aadmi Bima Yojna'' (Common Man Insurance Policy) and the LIC had been entrusted with the responsibility.

A target has been fixed to cover one crore poor people under the scheme during the year 2007-08.

He said the LIC had the capacity to attain the target and the scheme would reach the people living in the lower strata of the society.

Chief Minister Nitish Kumar requested the finance minister to review the parameters for identifying poor families so as to prepare the BPL list and claimed that once the fixed standard for ascertaining the poverty level was revised, the exact figure of poor families would exceed far beyond the current BPL list.

He said that once the Centre framed the ''right policies'', the state would be able to develop immensely.

Mr Kumar urged the union fertlizer minister and railway minister to get additional assistance for Bihar using their influence in the Cabinet.

He also suggested the LIC to simplify its claim settlement procedures in the interest of the common people.

Mr Paswan also appeared to have the same opinion as he also came forward with similar suggestions for the LIC if it had to survive in the competitive market and challenges posed by the private sectors.

He said by deciding to cover 1.57 crore poor people under insurance schemes, the UPA government had taken a revolutionary step.

Railway Minister Lalu Prasad welcomed the opening of the eighth zonal LIC office and said that it would be convenient for the policy holders to get their issues resolved in their state itself.

Mr Prasad outlined the developmental projects taken up by his ministry in Bihar adding that the schemes would open new vistas for the unemployed in the state.

UNI