Bihar Cabinet approves 25 key proposals: Panchayats get taxation powers, an AI centre, a state roadways company, and major police reforms.

Bihar Cabinet approves 25 key proposals: Panchayats get taxation powers, an AI centre, a state roadways company, and major police reforms.

By Kavita Sharma

Photo Credit: The Suncity News

Patna, July 15, 2026: The Bihar Cabinet, chaired by Chief Minister Samrat Choudhary, on Wednesday approved 25 important agenda items, including granting taxation powers to gram Panchayats, establishing a state-run road transport company, creating an Artificial Intelligence Centre of Excellence, and approving several measures aimed at strengthening law and order and public welfare.

In a major step towards strengthening local self-governance, the Council of Ministers approved the Gram Panchayat Tax Rates and Fees Rules 2026, authorizing Gram Panchayats to impose and collect local taxes and fees. The cabinet also approved the delimitation of Gram Panchayat, Panchayat Samiti, and Zila Parishad areas based on the 2011 Census population data.

To improve elderly care services, the Cabinet decided to merge the Vriddha Ashram Sahara Yojana with the Chief Minister’s Vriddhjan Ashray Sthal Yojana. The integrated scheme will now be implemented through the Social Welfare Department to ensure better management and delivery of services to senior citizens.

Changes in motor vehicle tax in the cabinet meeting:

The Cabinet approved amendments to the Bihar Motor Vehicles Taxation Act, 1994, increasing vehicle taxes across several categories.

Under the revised provisions, one-time tax on two-wheelers will increase by 1 percent, three-wheelers paying one-time tax will attract an additional Rs 1,000, and the existing business tax related to motor vehicles will be increased fourfold.

To improve public transportation, the Cabinet approved the formation of the Bihar State Roadways Company Limited, which will provide safe, convenient, and modern transport services to religious destinations and other important locations across the state.

The Cabinet approved two important proposals related to religious tourism, including the Maa Mundeshwari Bhawani Temple Trust Committee in Kaimur.

It has been authorized to manage and maintain the newly built facility by the tourism department.

Around 50.89 acres of land will be provided free of cost to the Trust Committee for the development of Punaura Dham in Sitamarhi, believed to be the birthplace of Goddess Sita.

In a significant technology initiative, the Cabinet approved the establishment of the Bihar State Artificial Intelligence Centre of Excellence Corporation, along with its Memorandum of Association and Articles of Association.

The Cabinet also approved the Bihar Policy for Safe Reuse of Treated Wastewater, 2026, aimed at promoting sustainable water management and reuse of treated wastewater.

The implementation period of schemes being executed through the Tharuhat Development Agency in West Champaran has been extended from 2025-26 to 2030-31.

 The Samrat Choudhary government, during the meeting, also approved the continued expenditure of budgetary allocations for these development programmes.

Several proposals were approved to strengthen policing and improve prison administration across Bihar.

The approval of the contractual re-employment of retired Special Task Force (STF) Additional Superintendent of Police Ramakant Prasad for another year.

His tenure has been extended retrospectively from July 1, 2026, to June 30, 2027. He retired on June 30, 2024.

Honorarium increased for ex-servicemen prison guards:

The monthly honorarium for ex-servicemen working as contractual prison guards in Bihar jails has been increased from Rs 19,800 to Rs 30,000, providing significant financial relief to former defence personnel serving in correctional facilities.

To strengthen women’s safety and improve police mobility, the Bihar government also approved the procurement of 1,500 scooters for female police personnel, popularly known as Police Didi.

The fleet will include 1000 petrol scooters and 500 electric scooters, and the procurement will be carried out under the Bihar Electric Vehicle Amendment Policy, 2026.

The Cabinet also reaffirmed its earlier decision to procure 3,200 motorcycles for the Bihar Police. These vehicles will be deployed for crime prevention, law and order duties, and enhanced patrolling, particularly around schools, colleges, and coaching institutes to improve the safety of female students.

Also Read: The Cabinet of the Samrat Choudhary government clears 22 proposals; approves rapid rail network, AIIMS expansion.

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