Rs. 3.75 lakh crore to be allotted for Bihar's development: PM Modi

He made the announcement here at a government function sharing stage with Bihar Chief Minister Nitish Kumar, who earlier in the day took a dig at the PM in tweeter wanting to know about the promises he had made last year for the development of the state.

In a veiled sarcasm Modi also said he understands "Nitishji's pain" as Bihar has suffered because of politics.

"I will fulfil all my promises made to Bihar people and will make announcement at the right time", the Prime Minister said.

" Rs 50,000 crore not enough for Bihar's development and will raise the budget.Like Nitish Kumar said "Modji we have hopes on you". Bihar in 2015-20 will be allotted Rs 3.75 lakh crore because we want the state to progress," he said.

Modi's announcement is seen as a political gamesmanship that came in reply to the tweets Nitish Kumar made immediately after his arrival in Patna to kickstart the BJP campaign for Bihar Assembly elections, due by October this year.

On the demand for special status for Bihar, Nitish had said: "You promised special status for Bihar. 14 months and people are still waiting. With 14th Finance Commission report and withdrawal of BRGF, Bihar to lose Rs 50,000 crore in five years. Is this your cooperative federalism?"

In his speech Modi said: "I agree with the good points that Nitishji has made, and I share his pain. Bihar has suffered because of politics."

"The Chief Minister has subtly outlined how politics can get in the way of development," he added.

In a counter to Nitish Kumar's dig, Modi said the NDA government has always endeavoured towards cooperative federalism and it is in favour of giving the states "as much help as we can."

"There used to be time when 60 per cent of all the funds received by the Centre used to stay in the treasuries in Delhi...But we took an important and difficult decision, that of the 14th Finance Commission."

"Because of this, Bihar, over a five year period, will receive 3.75 lakh crore rupees...Before, it used to receive only about 2.5 lakh crore." he said.

"Unless all parts of the country develop, the country cannot progress...This is true of all the states in the eastern parts of the coutry, whether it is Bihar or eastern UP, Odisha, West Bengal, Jharkhand, Assam, Nagaland or Mizoram."

The Prime Minister said his next step will be to plan out how railways can be used to improve the coverage of infrastructure and how it  can be used to better connect the country.

He also stressed on the need for having a gas grid to reach gas to each home of the country.

"Our aim to bring gas to each home...It is an expensive proposition. But once we do it, it will greatly aid quality of life, local economy and infrastructure," the PM said.

"All of us are now are coming to the understanding that there is substitute for development. If we have to overcome unemployment, poverty, illiteracy, development is the only way.Development is the medicine for all ills.If the nation has to grow, then the states must grow," Modi said.