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Bihar Cabinet Hikes DA, Backs EV Push and AI Training Plan

The package pairs pay relief with steps to spur jobs.

Overview

  • At a cabinet meeting on Wednesday, the government raised Dearness Allowance for staff and pensioners under the 7th Pay Commission from 58% to 60%, with parallel hikes for the 6th and 5th pay bands.
  • The revised rates take effect from January 1, 2026, and about nine lakh beneficiaries will receive four months of arrears, with the budget impact showing up from June and estimated near Rs 1,000 crore.
  • The cabinet approved an electric mobility drive with direct cash subsidies, a 30% EV sales target by 2030, and incentives that include up to Rs 1 lakh for women buying electric cars and Rs 12,000 for electric two-wheelers in FY 2026–27.
  • The state cleared the transfer of 100 acres in Vaishali to set up a National Institute of Food Technology, Entrepreneurship and Management, with the Infrastructure Development Authority tasked with finalizing the site.
  • Moves to build skills and industry included the Bihar Artificial Intelligence Mission to train 7,000 students over five years and a Rs 97.17 crore dairy plant in the Bihta–Sikandarpur cluster that plans to hire about 170 workers.