BIHAR - IBEF November 2010. 3 Advantage Bihar ... English, Urdu and Bhojpuri. Bihar –State profile...

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BIHARNovember 2010

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Investment climate of a state is determined by a mix of factors

Investment climate of a state

Resources/Inputs

Incentives to industryPhysical and social

infrastructure

Regulatory framework

• Skilled and cost-effective labour

• Labour market flexibility

• Labour relations

• Availability of raw materials and natural

resources

• Tax incentives and exemptions

• Investment subsidies and other incentives

• Availability of finance at cost-effective terms

• Incentives for foreign direct investment (FDI)

• Profitability of the industry

• Procedures for entry and exit of firms

• Industrial regulation, labour regulation, other

government regulations

• Certainty about rules and regulations

• Security, law and order situation

• Condition of physical infrastructure such as

power, water, roads, etc.

• Information infrastructure such as telecom, IT,

etc.

• Social infrastructure such as educational and

medical facilities

BIHAR November 2010

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Advantage Bihar

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Bihar

Contents

BIHAR November 2010

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• Covering an area of 94,163 sq km, Bihar is located in the Eastern part of India. The state has a population of 83 million and is one of the most densely-populated states in the country.

• The state shares its border with the states of Uttar Pradesh, Jharkhand and West Bengal and the neighbouring country of Nepal.

• The state has 38 administrative districts. Patna is the capital city. Gaya, Bhagalpur, Muzaffarpur and Darbhanga are other key cities in the state.

• The Ganges, one of the major rivers in the Indian sub-continent, flows through the state, making Bihar‟s land extremely fertile for agriculture.

• The four agro-climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops.

• The most commonly-spoken languages in the state are Hindi, English, Urdu and Bhojpuri.

Bihar – State profile

Source: Maps of India

ADVANTAGE BIHAR

Bihar November 2010

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Advantage Bihar … (1/2)

High economic growth

Policy incentives

The economy of the state has grown at around 16.7 per

cent from 2005-06 to 2009-2010. The state provides

investment opportunities in sectors such as agro-based

industry, food processing, sugar, power, leather,

manufacturing and tourism.

The state offers a wide range of policy incentives for

businesses under the Industrial Policy, 2006. The state

also provides incentives for the sugar, renewable energy,

food processing and tourism sectors.


ADVANTAGE BIHAR

Bihar November 2010

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Rich labour pool

The state has a large base of industrial labour, making it an

ideal destination for wide range of industries. The state

has institutes of national importance such as National

Institute of Technology (NIT) and Indian Institute of

Technology (IIT) which provide skilled manpower to the

industries.

Location advantage

The state enjoys a unique location-specific advantage

because of its proximity to the vast markets of Eastern

and Northern India, access to the ports such as Kolkata

and Haldia, raw-material sources and mineral reserves

from the neighbouring states.


ADVANTAGE BIHAR

Advantage Bihar … (2/2)

Bihar November 2010

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Bihar in figures … (1/2)

Parameter Bihar All-states Source

Economy

GSDP as percentage of all states‟ GSDP 2.9 100.0 CMIE, as of 2007-08, current prices

Average GSDP growth rate (%)^ 10.4 11.8 CMIE, 2000-01 to 2007-08, current prices

Per capita GSDP (US$) 306.3 992.5 CMIE, as of 2007-08, current prices

Physical infrastructure

Installed power capacity (MW) 1,845.7 159,398.5 Central Electricity Authority, as of March 2010

GSM cellular subscribers (No) 32,416,063 456,586,162Cellular Operators Association of India, as of June

2010

Broadband subscribers (No) 63,305* 4,981,976 As of October 2008

National highway length (km) 3,642 70,548Ministry of Road Transport and Highways, Annual

Report 2008-09

Airports (No) 2 133 Industry sources

^ In terms of Indian rupee

*Includes Jharkhand

ADVANTAGE BIHAR

Bihar November 2010

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Bihar in figures … (2/2)

Parameter Bihar All-states Source

Social indicators

Literacy rate (%) 47.53 64.8 Census of India, 2001

Birth rate (per 1,000 population) 28.9 22.8Ministry of Health & Family Welfare, RHS Bulletin,

March 2008

Ease of doing business

Outstanding investments (US$ billion) 23.7 1,972.6 CMIE, as of March 2010

Industrial infrastructure

PPP projects (No) 6 515 www.pppindiadatabase.com

PPP: public private partnership

ADVANTAGE BIHAR

Bihar November 2010

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Key industries with policy thrust and factor advantages

Minerals

TourismTextiles/

handlooms

Leather

Food

processing

Sugar

Medium HighLow

Medium

HighIndustry attractiveness matrix

*Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital

*Factor advantage

Polic

y th

rust

ADVANTAGE BIHAR

Bihar November 2010

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Advantage Bihar






Contents

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Socio-economic snapshot of Bihar

Parameters Bihar

Capital Patna

Geographical area (sq km) 94,163

Administrative districts (No) 38

Population density (persons per sq km) 881.4

Total population (million) 83.0

Male population (million) 43.2

Female population (million) 39.8

Decadal population growth rate (%) 28.4

Sex ratio (females per 1,000 males) 919

Literacy rate (%) 47.53

Male (%) 60.32

Female (%) 33.57

Life expectancy (years)

Male (years) 61.6

Female (years) 59.7

Sources: CMIE, www.gov.bih.nic.in, Census 2001

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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• In 2009-2010, the Gross State Domestic Product (GSDP) at current prices was US$ 32.7 billion.

• Between March 2000 and March 2010, the average annual GSDP growth rate was 11.8 per cent.

• The state had a robust average annual growth of 16.7 per cent between March 2006 and March 2010.

Source: CMIE

Bihar‟s GSDP

(US$ billion)

Bihar‟s GSDP


10.8 11.9 12.014.2 15.1

16.317.6

23.7

28.531.0

32.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

CAGR 11.8%

Bihar November 2010

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9.9 10.9 10.913.0 13.7 14.6 15.7

21.4

25.6

28.1 29.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

• In 2009-2010, the Net State Domestic Product (NSDP) of Bihar was US$ 29.6 billion.

• The average NSDP growth rate between 1999-2000 and 2009-2010 was about 11.6 per cent.

• This growth has been driven by the secondary sector which includes manufacturing, electricity, gas and water supply and services sector including trade, real estate, hospitality and others.

Source: CMIE

Bihar‟s NSDP

(US$ billion)

CAGR 11.6%

Bihar‟s NSDP


Bihar November 2010

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33.723.2

12.416.2

53.9 60.7

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

1999-00 2009-10

Primary Sector Secondary Sector Tertiary Sector

• At US$ 19.8 billion, the tertiary sector contributed 60.7 per cent to the GSDP (at current prices) in 2009-2010.

• It was followed by the primary sector, contributing US$ 7.6 billion (23.2 per cent), and the secondary sector contributing US$ 5.3 billion (16.2 per cent).

• Between 1999-2000 and 2009-2010, secondary sector was the fastest growing sector with a CAGR of 14.7 per cent, followed by tertiary sector, with a CAGR of 13.1 per cent.

• This growth has been supported by the manufacturing, electricity, gas and water supply, construction and services.

Source: CMIE

Percentage distribution of GSDP

CAGR

7.7%

14.7%

13.1%

The tertiary sector has an increasing share in Bihar‟s economy


Bihar November 2010

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135.2144.8 142.3

166.5173.8 183.8 195.6

258.7

306.3327.9 341.3

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

• Bihar‟s per capita GSDP increased over 2.5 times from US$ 135 in 1999-2000 to US$ 341 in 2009-2010.

• A robust secondary and tertiary sector has helped Bihar increase its average per capita GSDP by around 9.7 per cent between 1999-2000 and 2009-2010.

• At 14.9 per cent, the state had robust growth in per capita GSDP between March 2006 and March 2010.

Source: CMIE

Per capita GSDP

Per capita GSDPU

S$


CAGR 14.9%

Bihar November 2010

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4.1

11.8

40.7

43.5

5.0

14.6

30.5

49.9

0 20 40 60

R1

R2

R3

R4

Bihar All India

• The per capita income of Bihar was US$ 341 in 2009-2010.

• The distribution of households by socio-economic classification (SEC) indicates that a significantly large portion of Bihar‟s population falls in the low education and unskilled categories, although there is some concentration at the self-employed and junior-employee levels.

Percentage distribution of households

in urban areas by SEC*

Rural

Source: BW Marketing Whitebook, 2009-2010

* See Annexure for SEC categories

Percentage distribution of households in rural areas

by SEC*

3.5

6.7

8.0

8.3

19.9

23.4

11.5

18.6

3.4

6.8

8.5

9.3

16.9

20.3

9.3

25.4

0 10 20 30

A1

A2

B1

B2

C

D

E1

E2

Bihar All India

Urban

Distribution of households by income


Bihar November 2010

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Consumer expenditure on household goods and services

39.6%

7.1%5.2% 4.2%

33.7%

5.7%2.3% 2.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Food Education Medical Durable goods

All-India Bihar

Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round

Share of average monthly per capita expenditure on

household goods and other services

• In rural Bihar, expenditure on food has greater share compared to all-India.

• Share of expenditure on durable goods in rural Bihar is comparable to that of all-India. .

52.3%

3.7%6.3% 3.6%

59.7%

2.2% 3.2% 3.1%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Food Education Medical Durable goods

All-India Bihar

Urban Rural

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• The natural resources and policy incentives support agro-based sector. Agro-based industry and petroleum products (primarily, Barauni oil refinery) account for around 85 per cent of the total industrial output in the state.

• There are 272 large and medium industries, a majority of which are located in Patna. Tirhut is the other major industrial centre.

• Small scale industries, micro and artisan enterprises play a major role in terms of employment. As on September 2009, there were 178,863 permanent registered units with total investment of US$ 232.9 million and providing employment to 0.58 million workers.

Source: Economic Survey of Bihar, 2009-2010

Key industries in Bihar

• Food and beverages

• Rubber and plastics

• Transport equipment

• Chemicals

• Tobacco

• Textiles

• Leather

• Paper, printing and publishing

• Mines and minerals

• Dairy

• Tea

• Sugar

Industrial distribution in Bihar

Key industries in Bihar


32.7%

17.3%16.9%

33.1%

Food, beverage, tobacco

Cotton, wool, jute, paper, leather

Rubber, plastic, chemicals

Material, metal, machine, transport, equipments

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Bihar is among the three large producers of maize and jute

Crop

Annual production

as of 2007-08

(„000 tonnes)

Rice 5,340.0

Wheat 4,674.0

Sugarcane 4,083.0

Rapeseed and mustard 111.0

Maize^ 1,720.0

Potato^ 1,178.1

Jute and mesta^* 250.2

Gram^ 50.0

Arhar^ 40.0

Sunflower seed^ 30.0

Tobacco^ 16.1

• Major crops produced in the state include sugarcane, rice, wheat, maize and potato.

• In 2007-08, total production of sugarcane, rice and wheat was 14.1 million tonnes.

• In 2006-07, Bihar was among the three largest producers of maize, jute and mesta in the country.

^As of 2006-07

*A variety of jute

Source: CMIE


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Investments

^Services exclude financial services.

*Others include construction, non-metallic mineral products, metals, metal products and mining.

As of March 2010

Source: CMIE

• As of March 2010, total outstanding investments in Bihar were US$ 23.7 billion.

• The electricity sector accounted for the largest share of investments (56.8 per cent), followed by services (23.6 per cent) and chemicals (10.2 per cent).

• As of March 2010, investments worth US$ 11.8 billion were under implementation.

• Between December 2005 and November 2009, 245 investment proposals were approved by the State Investment Promotion Board (SIPB).

• In 2009-2010 (up to November 2009), SIPB has approved 81 proposals that are expected to strengthen the base of medium scale industry in the state.


YearSIPB approved

proposals (No)

Cumulative

(No)

2006-07 (up to January 2007) 72

2007-08 (up to December 2007) 43 115

2008-09 (up to December 2008) 49 164

2009-2010 (up to November 2009) 81 245

Break up of investments by sectors


2.2%

10.2%

56.8%

23.6%

5.7%

1.4%

Food & beverages

Chemicals

Electricity

Services^

Irrigation

Others*

Bihar November 2010

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Advantage Bihar






Contents

BIHAR November 2010

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Road network

• There is 3,642 km of National Highways and 3,989 km of State Highways in Bihar. Besides, there are major district roads and village roads.

• The east-west, four-lane, high-speed corridor and the golden quadrilateral road passes through Bihar.

• The State Government aims to provide road infrastructure in Bihar, equivalent to „best in the country‟ by 2015.

• According to the State Plan of the Road Construction Department of the State, the budgeted outlay for roads and highways was US$ 576 million for 2009-2010, up from US$ 58.5 million for 2005-06.

• In terms of physical achievement, compared to construction of 415.5 km of road in 2005-06, 2,417.1 km of road was constructed in 2008-09.


INFRASTRUCTURE STATUS

Type of Road Length (Km)

National Highway^ 3,642

State Highway 3,989

Major District Roads 8,156

Other District Roads 3,818

Village Roads 63,262

Source: Economic Survey of Bihar, 2009-2010, ^Ministry

of Road Transport and Highway, Government of India.

Bihar November 2010

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Railway network

• Bihar has an extensive railway network of more than 5,400 km.

• Hajipur in Bihar is the headquarter of the East-Central Railway. The state‟s main railway junctions are at Patna, Gaya, Muzaffarpur, Katihar and Samastipur.

• More than US$ 1.37 billion of investment has been planned for the modernisation of the railways in Bihar, including gauge-conversion, doubling of lines and electrification.

• Several link-lines, such as Muzaffarpur-Samastipur-Barauni-Katihar and Muzaffarpur-Chapra-Siwan, have been converted to broad gauge from metre gauge.



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Airports

• Bihar has one domestic airport, located in Patna and one international airport at Bodh Gaya.

• Several domestic airlines connect Patna to Delhi, Kolkata, Mumbai, Lucknow, Bangalore, Hyderabad and Ranchi.

• The airport in Bodh Gaya is used for international connectivity with Bangkok, Colombo and Kuala Lampur.



Domestic airport

International airport

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Waterways

• The 1,620 km stretch of the river Ganges – that flows between Allahabad in Uttar Pradesh and Haldia in West Bengal – has been declared „National Waterway 1‟ and is being developed for navigation by the Inland Waterways Authority of India.

• Patna has a low-level fixed terminal for handling containers. The National Inland Navigation Institute has been set up in Patna to train vessel crews.

• It has been proposed that waterways be used to deliver coal to power plants located on the river-side.



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Telecom infrastructure

• As of December 2009, there were 31.7 million subscribers as compared to 21.1 million in March 2009. As of December 2009, tele-density in the state was 33 per cent.

• Out of the total number of subscribers, 30.7 million were wireless subscribers and 1 million were wire-line subscribers.

• As of March 2009, the state had 67,160 public call offices and 9,056 post offices.

Telecom infrastructure in Bihar

ParameterDecember

2009

March

2009

No of telephone exchanges 1,236 1,235

No of telephone connections

(million)31.7 21.1

No of wire line connections

(million)1.0 1.0

No of mobile phone (million) 30.7 20.1

Tele-density (per 100

population)33.0 22.2

Source: Department of Telecommunication, Annual Report 2009-2010

Source: Cellular Operators Association of India

Major telecom operators in Bihar

Bharat Sanchar

Nigam Limited (BSNL)

Bharti Airtel

Dishnet Wireless

Reliance Communications

Idea Cellular

Vodafone Essar


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Power

• As of March 2010, Bihar had a total installed power generation capacity of 1,845.7 MW, of which 584.6 MW was owned by state utilities and 1,261.1 MW was owned by central utilities.

• The total installed power capacity comprised of 1,661.7 MW of coal-based power plants and 129.4 MW of hydro power plants.

• Besides, there is 54.6 MW of installed power generation capacity from renewable sources.

• As of March 2009, Bihar State Electricity Board served over 2.18 million consumers across eight transmission circles in the state.

Installed power capacity (MW)

Source: Central Electricity Authority


1,644.11,767.6

1,970.0 1,970.0 1,845.7

0.0

250.0

500.0

750.0

1,000.0

1,250.0

1,500.0

1,750.0

2,000.0

2005-06 2006-07 2007-08 2008-09 2009-2010

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Urban infrastructure

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), eight projects costing US$155 million have been sanctioned for the urban centres such as Patna and Gaya.

• In 2009-2010, US$ 15.7 million was released for projects related to development of water supply and sewage system.

• The key areas of development are solid-waste management system, water supply and sewage.

City Water supply Solid-waste management Sewage

Patna • Per capita water supply of 107 lpcd is

planned to be increased to 145 lpcd.

• US$ 116 million sanctioned for Patna

and Danapur area for improvement of

water supply.

• Solid-waste generated in the city is

646 tpd.

• US$ 10.5 million sanctioned for

improvement of solid-waste

management.

• Around 170 mld of sewage

generated, of which 109 mld

is treated.

• Planned investment of US$

96.5 million for improvement

of sewage management.

Gaya • Total water supply in the city is 2.7

mld.

• US$ 7.3 million sanctioned for Gaya to

improve water supply.

• Solid-waste generated in the city is

15.5 tpd.

• Planned investment of US$ 2 million

for solid-waste management.

• US$ 20.9 million has been

sanctioned for improvement

of sewage management.

lpcd: litre per capita per day, mld: million litre per day, tpd: tonnes per day.Source: City Development Plans, JNNURM, Ministry of Urban Development, Government of India


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Key public private partnership projects

Project name Sector PPP typeProject cost (US$

million)Stage

Hajipur-Muzaffarpur Roads BOT-Annuity 141.7 Construction

Chappra-Hajipur Roads BOT-Annuity 121.3 Construction

Kosi bridge project Roads BOT-Annuity 90.9 Construction

Mokama-Munger Roads BOT-Annuity 74.3 Construction

Forbesganj-Jogbani Roads BOT-Annuity 15.6 Construction

Ratu road commercial complex Urban development BOT-Annuity 0.9 Operating

BOT: Build-operate-transfer

Source: pppindiadatabase.com


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Education sector

• As per Census 2001, the literacy rate in Bihar was 47.53 per cent.

• In 2007-08, total number of students enrolled in primary and upper primary (up to class VII) schools was 17.7 million, an increase of over 58 per cent since 2003-04.

• Budgeted plan expenditure on education in the state has increased from US$ 97.3 million in 2005-06 to US$ 245.8 million in 2008-09, of which 99.9 per cent have been utilised.

• The prestigious Indian Institute of Technology (IIT) has been established in Patna in 2008-09. The institute offers B. Tech and Ph. D. programmes in computer science and engineering, electrical engineering and mechanical engineering.

Education infrastructure in Bihar

• Deemed/open universities: 13

• Research institutions: 15

• Government-aided colleges: 451

• Engineering colleges: 7

• Medical colleges: 8

• Other colleges: 364

• Teacher training colleges: 15

• Other educational institutions: 164

Reputed technical institutes in Bihar

• Indian Institute of Technology, Patna

• National Institute of Technology, Patna

• National Institute of Fashion Technology, Patna

Source: Economic Survey of Bihar, 2009-2010, Medical

Council of India


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Health infrastructure

• As of October 2009, Bihar had 10,634 health centres of various categories. There are 487 rural primary health centres (PHC), 46 urban PHCs, 1,234 additional PHCs and 70 referral hospitals.

• On an average, there are 110 health centres for a population of 1 million. At the district level, there is a wide variation in health coverage.

• Development of health infrastructure in Bihar has resulted into higher patient turnarounds in outpatients department, from 10.5 million in 2006-07 to 16 million in 2008-09.

• An institute on the lines of All India Institute of Medical Sciences (AIIMS) has been proposed to be set up in Patna. There will also be a medical college offering undergraduate, postgraduate and doctoral course.

*Per thousand persons

** Per thousand live births

Sources: Economic Survey of Bihar, 2009-2010, Ministry of

Health and Family Welfare, Government of India, Census 2001

Health indicators as of 2008

Persons served per doctor 25,000

Birth rate* 28.9

Death rate* 7.3

Infant mortality rate** 56

Life expectancy at birth (years) as of 2001

Male 61.6

Female 59.7

Government initiatives in the health sector

• Increase in sanctioned manpower in departments such as medical, public health and family welfare.

• Higher level of personnel appointments and training.

• Involving private sector in support services related to cleaning, pathology and radiology.

• Free drug distribution and indoor treatment.


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Cultural infrastructure

• According to the „Sports Policy, 2007‟, the State Government is undertaking various initiatives to promote sports in the state by augmenting sports infrastructure, providing facilities for coaching and supporting the promising players.

• An international conclave on „Experience Buddhism - In the land of its origin‟ was organised in February, 2010, to give major thrust to cultural tourism and explore potential related to the Buddhist circuits in India, especially in Bihar.

• Bihar Government has released a „Cultural Policy‟ in 2004, the purpose of which is to preserve and promote local culture.

• There are 19 museums in the state and the State Government has taken steps for their development.

Major museums in Bihar

• Patna Museum, Patna

• Chandra Dhari Museum, Darbhanga

• Gaya Museum, Gaya

• Nardhaha Museum, Nawada

• Bhagalpur Museum, Bhagalpur

• Maharaja Lakshimshwar Sing Museum,

Darbhanga

• Sitaram Upadhya Museum, Buxar

• Bihar Sharif Museum, Nalanda

• Chandra Sekhar Singh Museum, Jamui

• Ramchandra Shahi Museum, Muzaffarpur

Source: Youth, Art & Culture Department, Government of

Bihar


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Industrial infrastructure … (1/3)

• The Bihar Industrial Area Development Authority (BIADA) is responsible for promoting and assisting the rapid development of industries in the industrial areas and estates.

• Operations of BIADA are divided in four regions – Patna, Muzaffarpur, Darbhanga, Bhagalpur to facilitate quick services to entrepreneurs.

• Regional offices, under the guidelines of head office, develop industrial area, industrial growth centres and implement projects.

As of May, 2010

Source: BIADA

RegionIndustrial area

(No)

Total land

(acre)

Vacant land

(acre)

Largest vacant land

(acre)

Average price of land

(US$/acre)

Patna 17 1,506.2 239.4 2.8 79,500

Bhagalpur 12 1,236.3 261.6 150 11,000

Darbhanga 10 899.8 99.0 2.5 10,490

Muzaffarpur 7 1,040.4 284.0 3.5 23,670


Bihar November 2010

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• BIADA is developing industrial growth centres across the state, which will have the infrastructure to promote industries in sectors such as agro-processing, light engineering, electronics, repairs and servicing and garments.

The other projects planned by BIADA are as follows:

• BIADA has proposed acquisition of 1,900 acres of land for Bihta Mega Industrial Park which will have prestigious educational institutes such as Indian Institute of Technology (IIT) and National Institute of Technology (NIT).

• BIADA has allotted 150 acres of land for textile park and 25 acres of land for handloom park at mega growth centre at Kahalgaon.

• BIADA will also allot land to Indian Oil Corporation Limited (IOCL) for its proposed petrochemical complex at Begusarai.

• BIADA is building separate feeder lines for uninterrupted electric supply in the selected industrial areas of Patna, Fatuah, Hajipur, Muzaffarpur, Gidha, Barari and Maranga.


Industrial growth centres in Bihar

• Kahalgaon

• Begusarai

• Aurangabad

• Gidha

• Maranga (Purnia)

• Khagaria



Bihar November 2010

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Centres Industries

Patna

Major agricultural centre of trade, exporting

grain, sugarcane, sesame and medium-grained

rice; has also emerged as a manufacturing hub in

Bihar with the highest number of industrial

units.

Tirhut

Has the second-highest number of industrial

units in the state; food/beverage processing and

manufacturing units are located here.

MuzaffarpurImportant trade centre for cloth; famous for

exporting fruits, particularly, mango and litchi.

Barauni

Has major industrial units including those of

Indian Oil Corporation‟s refinery; capacity

addition of the existing thermal power station is

being carried out.

Bhagalpur

Famous worldwide for tussar silk; trading of

agricultural produce and cloth is an important

economic activity. Other major industries

include rice, sugar milling and wool weaving.

Gaya Major weaving centre, important tourist hub


Industrial clusters in Bihar

Manufacturing

Textile/sericulture

Sugarcane

Agro-based industries (except sugarcane)



Bihar November 2010

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Infrastructure investments

Infrastructure typeInvestments

(US$ million)

Power* 5,646.5

Roads 1,884.4

Oil and gas 7.2

Railway 1,446.9

Total 8,984.9

*Generation and distribution

Source: CMIE

As of March 2010.

• As of March 2010, the total investments in Bihar‟s infrastructure sector were around US$ 9 billion.

• Over 62 per cent of investments in infrastructure were in the area of power generation and distribution.

• About 21 per cent of the investments were in road transport and around 16 per cent were in the railways sector.

• Other major infrastructure sector attracting investments was oil and gas.


Bihar November 2010

37

Advantage Bihar






Contents

BIHAR November 2010

38

Industrial Policy, 2006

Aim: To establish new industries and revive sick units, provide conducive environment to attract domestic and foreign investment

and provide environment for a balanced development of the state.

Key initiatives and objectives:

• Creation of corpus fund along with commercial bank and industry association for the revival of sick and closed units . A state-level committee will decide on concessions and/or exceptions to be provided for rehabilitation of concerned units.

• Single-window clearance system to be provided.

• Infrastructure Development Enabling Act, 2006, for development of infrastructure through private participation.

• Establishment of land bank to meet requirements of industries and development schemes.

• Enhancement of competitiveness of industrial units through pre- and post-production incentives.

• Incentives to handloom sector industries.

• Development of handicrafts, handloom, khadi, silk and village industries.

• Provision of self-certification to simplify inspection of factories.

Sector specific policies … (1/6)

STATE POLICIES AND INCENTIVES

Bihar November 2010

39

Industrial Policy, 2006 (continued)

Key incentives:

• Exemption from stamp duty and registration fee; provision of reimbursement of value-added tax (VAT).

• Reimbursement of 50 per cent of cost on preparation of project report, up to US$ 1,630.

• Incentives on purchase of land and sheds:

For small or tiny units at 50 per cent of the cost, up to a maximum of US$ 163,043.

For medium to large units at 25 per cent of the cost, up to a maximum of US$ 326,087.

• Incentive grant of up to 50 per cent for expenditure on plant and machinery for captive power generation units.

• Electricity duty exemption for five years for captive generation of power for new units.

• Exemption from luxury tax, electricity duty, conversion charge and market fee for seven years.



Bihar November 2010

40

Food Processing Policy

Objectives: To address the infrastructure, technology, skills and marketing constraints being faced by rice, maize, pulses, honey,

makhana, fruits and vegetables, and other food processing units in the state by facilitating the setting up of new food processing

units. To aid the expansion and up-gradation of existing units.

Key incentives:

• Grant of US$ 3.25 million or up to 20 per cent of the total project cost, whichever is less, for setting up food parks.

• Grant up to 40 per cent of the project cost, subject to a maximum of US$ 2.17 million, for a special purpose vehicle (SPV) for acommon cluster infrastructure and up to 35 per cent of the project cost, subject to a maximum US$ 1.08 million, for an individual investor.

• For expansion and capacity increase of existing units, the benefits of the scheme will only be available if the expansion project leads to capacity addition of at least 50 per cent.



Bihar November 2010

41

Sugar Incentive Package

Aim: To serve the sugar industry by building on the factor advantages of the state.

Key incentives:

• Re-imbursement of central excise duty on sugar for five years.

• Exemption from purchase tax on sugarcane for five crushing-years.

• Exemption from stamp duty and registration fees for land transfer.

• Subsidy of 10 per cent on capital investment or a maximum of US$ 2.2 million, whichever is less, on machinery after completion of first year of commercial production.

• Incentive package for distillery and ethanol as well as co-generation of power.



Bihar November 2010

42

Bihar Tourism Policy

Aim: To promote and develop tourism in Bihar and to transform tourism industry as a vital part of vibrant economic activities of

the state.

Key initiatives:

• The State Government will prepare an area-based master plan for developing infrastructure that is necessary for the tourist destinations. The Department of Tourism will formulate a 20-year master plan with future projection for development of tourism in the state.

• All facilities and incentives available for industry will apply to investment in tourism sector.

• The state will promote private investment for setting up hotels and heritage hotels. The State Government will explore and develop possibilities of launching a paying-guest scheme.

• Rules and regulations for land allotment will be simplified to create tourism infrastructure.

• The Department of Tourism will identify potential tourist destinations where religious fairs and festivals are an integral part of culture and will promote such destinations.

• Tourist information centres will be equipped with the modern information and communication technology devices.

• The State Government will promote weekend tourism, wildlife tourism, aqua tourism and rural tourism.

• Human resource required for growth of tourism will be developed.



Bihar November 2010

43

Policy guidelines for private sector participation for developing non-conventional energy sources

Aim: To encourage private sector participation in decentralised generation of grid-grade power, through the use of the available

inputs for renewable and non-conventional energy sources such as solar, wind, water, biomass and other wastes.

Key initiatives:

• Any industry, institution, private agency, partnership firm, consortium, panchayat, cooperative society or registered societyinterested in installing and generating electricity from non-conventional energy sources such as mini- and micro-hydro plants, solar-thermal plants, solar-photovoltaic systems, biomass plants, bagasse-based plants, wind plants, cogeneration plants, municipal and industrial-waste plants will be eligible for availing incentives under the scheme.

• The Bihar State Hydro-electric Power Corporation (BHPC) and/or Bihar Renewable Energy Development Agency (BREDA) will provide necessary information and assistance regarding identification and selection of feasible sites.

• The project will be treated like that of any other industry and incentives / concessions applicable to new industrial units underindustrial policy will be available to the project.

• There will be no restriction on power generation capacity or supply of electricity to the grid.



Bihar November 2010

44

Advantage Bihar






Company logos cited in this section are registered trademarks of the respective companies.

Contents

BIHAR November 2010

45

Food processing and dairy

• Bihar is one of the largest producers of vegetables and fruits in the country. The factor advantages of the state make it a suitable place for setting up units in the food processing sector.

• The state is one of the leading producers of banana, mango, litchi and vegetables such as onions, tomato, potato, egg-plant and makhanas in the country.

• In 2008-09, total production of fruits in Bihar was 3.85 million tonnes and total production of major vegetables was 13.4 million tonnes.

• Food processing is a priority sector for the State Government. Up to 40 per cent of the project cost for setting up food processing units is subsidised by the State Government.

• Besides food processing, the State Government promotes cooperative marketing of milk and dairy products.

Key players

Bihar State Cooperative Milk

Producer‟s Federation (COMPFED )

Usher Agro Limited

BUSINESS OPPORTUNITIES


Bihar November 2010

46

Food processing and dairy – company profiles

Bihar State Cooperative Milk Producer‟s Federation (COMPFED )

• COMPFED is an organised milk processing cooperative, which collects milk through district level cooperative unions, processes and markets the same.

• It also supports members with interventions across technology, supply chain, marketing, training, etc.

• COMPFED covers five districts directly and 26 districts through six district level cooperative unions.

• In 2009-2010, COMPFED procured around 1 million litres of milk per day from a member base of around 0.46 million.

Usher Agro Limited • Usher Agro Limited is one of the large basic food grain (rice and wheat) processing companies in India. The company established its rice processing mill in Buxar, Bihar in 2003

• In 2009, the revenue of the company was US$ 44.1 million compared to US$ 7.4 million in 2005.

• The products of the company are sold under the brand name „Rasoi Raja‟.


Bihar November 2010

47

Chemical, oil and gas

• The major drivers of chemical, oil and gas industry in Bihar are proximity to sea ports – Kolkata and Haldia, availability of labour, and the vast market of Eastern India.

• Petroleum remains a large contributor to the state‟s GSDP as it has one of the largest public sector refineries in the country - Indian Oil Corporation Limited (IOCL).

• IOCL is expected to set up petrochemical complex at Begusarai.

• Oil and Natural gas Corporation Limited (ONGC) is carrying out exploration for petroleum and natural gas in four districts in Purnea division.

• GAIL (India) Limited is considering setting up a gas based 300 MW power plant at Bettiah.

Key players

Indian Oil Corporation Limited

Graphite India Limited

Krishi Rasayan Exports Private Limited



Bihar November 2010

48

Chemical, oil and gas – company profiles

Indian Oil Corporation

Limited (IOCL)

• IOCL is India‟s leading petroleum refinery and a Fortune 500 company. It has a refinery at Barauni, with an annual capacity of 6 million metric tonnes.

• Secondary processing facilities, such as a resid-fluidised catalytic cracker, diesel hydro-treating and a sulfur-recovery unit, have been added to the main refinery.

• The 498-km long Haldia-Barauni crude oil pipeline (HBCPL) receives crude oil at the Haldia oil jetty and transports it to the Barauni refinery.

Graphite India Limited

(GIL)

• GIL was incorporated in 1963. The company has nine plants located across India and producing graphite products, coke and power.

• The coke division of the company at Barauni, in Bihar is engaged in manufacture of calcined petroleum coke (CPC) and has an installed capacity of 30,000 tonnes per annum.

• In 2009-2010, the company produced 30,781 tonnes of calcined petroleum coke in its Barauni plant, surpassing installed capacity.

Krishi Rasayan Exports

Private Limited (KREPL)

• KREPL is one of the major agri-chemical manufacturer, with five composite technical manufacturing units. Total revenue of the company in 2008-09 was US$ 61.5 million.

• In 1973, the company set up its plant at Muzaffarpur in Bihar for producing dusting powder formulation.

• The company operates a poultry feed unit in Muzaffarpur with a capacity of 150 tonnes per day in pellet-form.


Bihar November 2010

49

• Sugar, the largest agro-based industry in the state plays a prominent role in Bihar‟s economy.

• The North of the state is climatically well-suited for producing good quality sugarcane with minimum inputs as compared to the other states.

• In 2007-08, about 108,560 hectares were under sugarcane production and the state produced about 3.85 million tonnes of sugarcane.

• It is estimated that about 500,000 farmers are engaged in sugarcane cultivation and another 50,000 skilled and unskilled labours are working in sugar mills.

• The State Government offers incentive package to the sugar industry. The Sugarcane Institute in Pusa and Rajendra Agricultural University are engaged in sugarcane-related research activities.

Sugar

Key players

K. K. Birla Group

Riga Sugar Company Limited

Vishnu Sugar Mills Limited

Eastern Sugar & Industries Limited


Bihar November 2010

50

K. K. Birla Group • The K K Birla Group‟s sugar company, Upper Ganges Sugar & Industries Limited (UGSIL), has two units in Bihar – Bharat Sugar Mills at Sidhwalia, with a crushing capacity of 5,000 tonnes per day (tpd) and Hasanpur Sugar Mills at Hasanpur, with a crushing capacity of 3,000 tpd.

• The Sidhwalia unit also has a 18 MW cogeneration power plant.

Riga Sugar Company Limited

• The company belongs to the P. L. Dhanuka group and was incorporated in 1980.

• It manufactures ethyle alcohol, molasses and sugar at Sitamarhi in Bihar.

• The plant has crushing capacity of 5,000 tonnes per day.

Vishnu Sugar Mills Limited • The company is promoted by the Bajoria family and was incorporated in 1932.

• It manufactures molasses and sugar at Gopalganj in Bihar.


Eastern Sugar & Industries Limited

• The company was incorporated in 1932.

• It manufactures molasses and sugar at Purba Champaran, in Bihar.


Sugar – company profiles


Bihar November 2010

51

Manufacturing industry

• After bifurcation of Bihar, a number of large units (mostly mining and engineering) of erstwhile Bihar are now located in Jharkhand.

• The state has leather, textile and handloom industries as its prominent sectors, apart from some engineering units.

• The state has ample raw materials (hides and skin of livestock), technical skills (leather technology institutes) and manpower, which are the major drivers for leather industry in the state.

• There are 85 leather units in the state of which 60 are manufacturing units and 25 units take up job-work.

Key players

Bata Industries

Bharat Wagon and Engineering Company

Gangotri Iron & Steel Company


Bihar November 2010

52

Manufacturing industry – company profiles

Bata Industries • Promoted by the Toronto-based Bata Shoes, Bata is among India‟s largest manufacturer and marketer of footwear products.

• The company has a tannery at Mokamehghat, in Bihar and a leather footwear factory at Bataganj, in Patna.

Bharat Wagon and Engineering

Company

• The Bharat Wagon and Engineering Company is a part of Bharat Bhari Udyog Nigam, a Government of India undertaking . It has a over 50 years of experience in heavy-steel fabrication.

• It has two units at Mokama and Muzaffarpur, which are ISO 9001 certified for manufacturing wagons; a third unit at Muzaffarpur manufactures gas cylinders. All three plants have captive-power generation capacity.

Gangotri Iron & Steel Company • The company produces mild steel (MS) bars and billets.

• In 2009, the company produced 19,665 tonnes of MS bar and 8,888 tonnes of MS billet.

• In January 2009, the company set up a new unit in Bihta, in Bihar. The company has production capacity of 145,000 tonnes of MS bar, 108,900 tonnes of MS billet and 540,000 cubic metre of oxygen.


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53

Tourism … (1/2)

• The state has a rich cultural heritage as it is associated with pilgrimages and historical monuments related to religious gurus such as the Buddha, Mahavir, Guru Gobind Singh.

• Tourism in the state revolves around the Buddhist circuit (Bodhgaya, Rajgir, Nalanda), the Jain circuit (Bisram, Mandar hill, Champanagar) and the Sufi circuit.

• Monuments of historical and religious significance present tremendous potential for attracting both domestic and foreign tourists.

• The state‟s tourism policy stresses on developing infrastructure and financing for tourism.

• The Bihar Government is preparing a 20-year master plan for promotion and development of tourism in the state.



Bihar November 2010

54

10.411.9

15.7

0

2

4

6

8

10

12

14

16

18

2007 2008 2009

• In an effort to promote tourism in the state, the Department of Tourism, Government of Bihar, along with the Ministry of Tourism, Government of India, organised an international Buddhist Conclave in Nalanda and Rajgir in February, 2010.

• The state is also developing the Buddhist tourist circuit (Bodh-Gaya-Rajgir-Nalanda) with an assistance of US$ 4.6 million from the Central Government.

• In 2009, the total number of tourist arrival was around 16.1 million. Arrivals have grown at around 23.4 per cent between 2007 and 2009.

Arrival of domestic tourists in Bihar Arrival of foreign tourists in Bihar

Source: Ministry of Tourism, Government of India


Tourism … (2/2)

mill

ion

177.4

345.6

423

0

50

100

150

200

250

300

350

400

450

2007 2008 2009

thousa

nd

Bihar November 2010

55

Major industrial projects being implemented

Project Sector PromoterInvestment

(US$ million)Location

Kahalgaon-II transmission linePower

distribution

Power Grid Corporation of India

Limited (PGCIL)3,867.8 Kahalgaon-Biharsharif

Kahalgaon-North Karanpura-Barh

composite transmission line

Power

distributionPGCIL 2,000.0

Kahalgaon-North

Karanpura

Barh power project Power NTPC Limited 1,889.7 Barh

Nabinagar power project Power Bharatiya Rail Bijlee Co Limited 1,087.0 Nabinagar

Basic telecom sevices projectTelecom

servicesTata Teleservices Limited 1,087.0 Partially in Bihar

Patna Ganga railway bridge project Railways East Central Railway 181.5 Sonepur

Sub-transmission and distribution

project

Power

distributionBihar State Electricity Board 178.9 Bihar

Sugar (Paschimi Champaran) project Sugar Globe Sugar Refinery Limited 173.9 Champaran

Sitamarhi-Jaynagar-Nirmali railway

line projectRailways East Central Railway 143.2

Sitamarhi-Jaynagar-

Nirmali

Nawada-Laxmipur railway line

projectRailways East Central Railway 131.0 Nawada-Laxmipur

Araria-Galgalia railway line project Railways North Eastern Railway 115.2 Galgalia

Sugar (Betiah) project Sugar Moria Sugar Private Limited 108.7 Betiah

Source: projectstoday.com


Bihar November 2010

56

Key industrial projects being planned

Project Sector PromoterInvestment

(US$ million)Location

Pirpainti thermal power project Power Nalanda Power Company 2,173.9 Pirpainti

Nabinagar thermal power project Power Bihar State Electricity Board 1,956.5 Nabinagar

Coal-based power (Buxar) project Power Krishak Bharati Co-Op. Limited 1,304.4 Buxar

Hathiadah and Durgawati pumped storage

(hydel) power projectPower

Bihar State Hydroelectric

Power Corporation Limited933.4 Bhabhua

Diesel locomotive (Marhowra) project ManufacturingMinistry of Railways,

Government of India591.1 Marhowra

Thermal power (Barauni) project Power Vikash Metal & Power Limited 543.5 Barauni

Electric locomotive factory (Madhepura)

projectManufacturing Central Government 426.2 Madhepura

Khagaria- Bakhtiarpur (NH-31) road

projectRoadways

National Highways Authority of

India383.9 Bakhtiarpur

Integrated steel (Begusarai) project Finished steel Vikash Metal & Power Limited 326.1 Begusarai

High sulphur crude maximisation project Refinery Indian Oil Corporation Limited 171.7 Barauni

Co-generation power (Paschimi

Champaran) projectPower Kamlapur Sugar & Industries 168.8

Paschimi

Champaran

Hospital-cum-medical college (Bihta)

projectHospitals

Employees' State Insurance

Corporation138.5 Bihta

Water supply scheme (Patna)Water and

sewerage pipelineGovernment of Bihar 95.9 Patna

Source: projectstoday.com


Bihar November 2010

57

Advantage Bihar






Contents

BIHAR November 2010

58

Key approvals required … (1/2)

Approvals and clearances required Departments to be consulted Estimated time in days

Incorporation of company Registrar of companies NA

Registration, Industrial Entrepreneurs

Memorandum (IEM), industrial licensesNodal agency (Industries Department) NA

Allotment of land Bihar Industrial Area Development Authority

Seven to 21 days (up to 90

days for acquisition of non-

industrial land)

Permission for land useRevenue and Land Reforms Department,

Government of Bihar

30 days (45 days for

conversion of non-industrial

land for use)

Registration under Factories Act and Boilers

Act

Offices of Inspector of Factories, Inspector of

BoilersUp to 120 days

Site environmental approval, No objection

certificate and consent under Water and

Pollution Control Acts

Bihar State Pollution Control Board and Ministry

of Environment and Forests, Government of

Bihar

60 days

Approval of construction activity and building

plan

Urban Development and Housing Department,

Government of BiharSeven days

NA: not available

DOING BUSINESS IN BIHAR

Bihar November 2010

59

Approvals and clearances required Departments to be consulted Estimated time in days

Sanction of power Bihar State Electricity Board Up to 30 days

Sanction of waterWater Resources Department, Government of

BiharUp to 30 days

Fire service clearanceState Fire Service Headquarters, Government of

BiharUp to 15 days

Registration under state‟s Sales Tax Act, and

Central and State Excise Act

Sales tax department, central and state excise

departmentsSeven days


Key approvals required … (2/2)

Bihar November 2010

60

Cost of doing business in Bihar

Cost parameter Cost estimate Source

Industrial land (per acre)US$ 384,780 in Patliputra, US$ 83,700 in

Muzaffarpur

Bihar Industrial Area Development

Authority

Labour (per man year) US$ 825 to US$ 1,275Labour Resources Department,

Government of Bihar

Office space rent

(per sq ft per month)US 20 cents to US 35 cents Industry sources

Residential rent

(2,000 sq foot per month)US$ 145 to US$ 280 Industry sources

Five-star hotel room (per night) US$ 100 to US$ 180 Leading hotels in the state

Commercial and industrial electricity

(per kWh)

Industrial: US 8.8 cents to US 9.2 cents

Commercial: US 9.1 cents to US 10.5 centsBihar State Electricity Board


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61

Single-window approval mechanism

• Bihar Single Window Clearance Act, 2006, and the Bihar Industrial Policy, 2006, promote industrial growth by giving rapid clearances, issuing of licenses and certificates and providing an overall investor-friendly environment in the state.

• The Industries Department of the state and the District Investment Centre (DIC) act as nodal agencies for investments.

• Proposals for investment greater than US$ 21.7 million are routed through Chief Minister and the Cabinet for approval.

Investment handled Body Chairman Nodal agency

US$ 2.17 million to

US$ 21.7 million

State-level

investment

promotion board

Industries

Development

Commissioner

Industries Development

(Udyog Mitra)

Below US$ 2.17 millionDistrict-level

committeeDistrict Collector DIC


Bihar November 2010

62

Key investment promotion offices … (1/2)

Industries Department,

Government of Bihar

• State-level nodal body under the single-window regime for investments of above US$ 2.17 million.

• Primary functions involve coordinating applications from investors, processing and facilitating the process of getting clearances from various departments.

• The Department, headed by the Principal Secretary, supervises district industry centres (DIC), industrial area development authorities and industrial premises in the state.

District Industry Centre (DIC) • District-level nodal agency for investments below US$ 2.17 million.

• DIC supports entrepreneurs in identifying local resources, supply of raw materials and equipment, arrangement of credit facilities, marketing, quality control, etc.

Bihar Industrial Area

Development Authority (BIADA)

• BIADA develops infrastructure for industries in segments such as roads, drainage, water, power, etc.

• Supports entrepreneurs in setting up industries and availing incentives offered by the State Government.


Bihar November 2010

63

Bihar State Finance Corporation • The main state-level institution that provides term lending facilities to industrial entrepreneurs.

• The corporation has been revived to supplement the role of banks in lending to industries.

Bihar State Electricity Board

(BSEB)

• The board is responsible for the synchronised development of generation, transmission and distribution of power in the state.

Bihar State Pollution Control

Board

• The purpose of the organisation is prevention and control of pollution through inspection of treatment plants, standards application, research and development activities, etc.

• Headquartered at Patna, the organisation has seven zonal-offices.


Key investment promotion offices … (2/2)

Bihar November 2010

64

Contact list … (1/2)

Key agency Contact information

Industries Department,

Government of Bihar

Vikas Bhawan

Bailey Road,

Patna - 800 001, Bihar.

Phone: 91-0612-2215 211

Fax: 91-0612-2217 991

Website: http://industries.bih.nic.in/

Bihar State Finance Corporation Fraser Road,

Patna - 800 001, Bihar

Phone: 91-0612-2332 210

Fax: 91-0612-2217 991

E-mail: [email protected]

Website: http://bsfc.bih.nic.in/


Bihar November 2010

http://industries.bih.nic.in/

mailto:[email protected]

http://bsfc.bih.nic.in/

65

Key agency Contact Information

Bihar State Electricity Board (BSEB) Vidyut Bhawan,

Bailey Road,

Patna - 800 001, Bihar.

Phone: 91-0612-2504 610

Website: http://bseb.bih.nic.in/

Bihar Industrial Area Development Authority

(BIADA)

Udyog Bhawan, First floor,

East Gandhi Maidan,


Phone: 91-0612-2302 914

Fax: 91-0612-2302 989

E-mail: [email protected], [email protected],

Website: http://www.biada.in

Bihar State Pollution Control Board Beltron Bhawan, Shastri Nagar

Jawahar Lal Nehru Marg,


Phone: 91-0612-2302 914

Fax: 91-0612-2281250

Email: [email protected],

Website: http://wgbis.ces.iisc.ernet.in


Contact list … (2/2)

Bihar November 2010

http://bseb.bih.nic.in/



http://www.biada.in/


http://wgbis.ces.iisc.ernet.in/

66

Annexure … (1/3)

Source: Market Research Society of India

Education/occupation

Illit

era

te

Schoo

l up t

o four

year

s/ litera

te,

but

no form

al

schoo

ling

Schoo

l up t

o fiv

eto

nin

eye

ars

SSC

/HSC

Cert

ific

ate c

ours

e,

but

not

grad

uat

e

Gra

duat

e/p

ost

gr

aduat

e

genera

l

Gra

duat

e/p

ost

gr

aduat

epro

fess

ional

Unskilled workers E2 E2 E1 D D D D

Skilled workers E2 E1 D C C B2 B2

Petty traders E2 D D C C B2 B2

Shop owners D D C B2 B1 A2 A2

Entrepreneurs: employee none D C B2 B1 A2 A2 A1

Entrepreneurs: employee < 10 C B2 B2 B1 A2 A1 A1

Entrepreneurs: employee > 10 B1 B1 A2 A2 A1 A1 A1

Self-employed professionals D D D B2 B1 A2 A1

Clerical/salesman D D D C B2 B1 B1

Supervisory level D D C C B2 B1 A2

Officers/executives: junior C C C B2 B1 A2 A2

Officer/executive: middle/senior B1 B1 B1 B1 A2 A1 A1

Socio-economic classification (SEC) of urban and rural households – urban grid


Bihar November 2010

67

Source: Market Research Society of India

Socio-economic classification (SEC) of urban and rural households – rural grid

Education

Type of house

PuccaSemi-pucca Kuccha

Illiterate R4 R4 R4

Literate but no formal school

R3 R4 R4

Up to fourth standard R3 R3 R4

Fifth to ninth standard R3 R3 R4

SSC/HSC R2 R3 R3

Some college but not graduate

R1 R2 R3

Graduate/post-graduate (general)

R1 R2 R3

Graduate/post-graduate (professional)

R1 R2 R3

Annexure … (2/3)


Bihar November 2010

68

Year INR equivalent of one US$

2000 46.6

2001 48.3

2002 48.0

2003 45.6

2004 43.7

2005 45.2

2006 45.0

2007 42.0

2008 40.2

2009 46.0

2010 47.4

Exchange rate

Average for the years

Annexure … (3/3)


Bihar November 2010

69

India Brand Equity Foundation (“IBEF”) engaged

ICRA Management Consulting Services Limited (IMaCS)

to prepare this presentation and the same has been

prepared by IMaCS in consultation with IBEF.

All rights reserved. All copyright in this presentation and

related works is solely and exclusively owned by IBEF. The

same may not be reproduced, wholly or in part in any

material form (including photocopying or storing it in any

medium by electronic means and whether or not

transiently or incidentally to some other use of this

presentation), modified or in any manner communicated

to any third party except with the written approval of

IBEF.

This presentation is for information purposes only. While

due care has been taken during the compilation of this

presentation to ensure that the information is accurate to

the best of IMaCS‟s and IBEF‟s knowledge and belief, the

content is not to be construed in any manner whatsoever

as a substitute for professional advice.

IMaCS and IBEF neither recommend nor endorse any

specific products or services that may have been

mentioned in this presentation and nor do they assume

any liability or responsibility for the outcome of decisions

taken as a result of any reliance placed on this

presentation.

Neither IMaCS nor IBEF shall be liable for any direct or

indirect damages that may arise due to any act or

omission on the part of the user due to any reliance

placed or guidance taken from any portion of this

presentation.

DISCLAIMER

BIHAR November 2010

BIHAR - IBEF November 2010. 3 Advantage Bihar ... English, Urdu and Bhojpuri. Bihar –State profile...

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