Bihar cabinet sanctions Rs 750 cr for Kosi canal system

The Bihar government today sanctioned Rs 750.75 crore for extension,renovation and modernisation of eastern Kosi canal system which was devastated by a breach caused by the turbulent river at Kusaha in Nepal last year.

Briefing newsmen after the cabinet meeting presided over by Chief Minister Nitish Kumar,Principal Secretary,Cabinet Coordination Department,Girish Shanker said the fund has been earmarked for strengthening and full utilisation of canal system to irrigate 7.34 lakh hectares of land in the districts of Saharsa,Supaul,Madhepura,Purnia,Katihar and Araria.

A total of Rs 54 crore would be spent in 2009-10,Rs 400 crore in 2010-11 and Rs 296.75 crore in 2011-12 to strengthen the canal system,he added.

The government also decided to give 8.99 acres to the tourism department for setting up two institutes — Hotel Management Institute and Food and Craft Institute — at Gaya,Shanker said.