Bihar’s - IBEF
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Transcript of Bihar’s - IBEF
Fastest growing state in
India
• At 11.95 per cent, Bihar’s growth was the highest among all Indian states during the 11th
Five Year Plan
Fastest per capita
income growth • Bihar has also topped in per capita income growth, registering a growth of 11.75 per cent
in per capita net state domestic product at constant (2004–05) prices for fiscal 2011–12
Leader in the production
of fruits and vegetables • Bihar is the largest producer of vegetables and the second largest producer of fruits in
India
Strong agriculture
sector
• Bihar is one of the strongest agricultural states, with very high productivity. The
percentage of population employed in agricultural production in Bihar is estimated to be 74
per cent, which is much higher than the national average.
Fifth largest mobile
subscriber base
• With 58.3 million mobile subscribers in September 2013, Bihar has the fifth largest
subscriber base among Indian states
• The engineering sector is delicensed; 100 per cent FDI is allowed in the sector
• Due to policy support, there was cumulative FDI of USD14.0 billion into the sector over April 2000 – February 2012, making up 8.6 per cent of total FDI into the country in that period
Growing demand High economic growth with
flourishing industries
• The economy of the state has grown at around 11.95 per cent during the 11th five year plan.
• Food processing, dairy, sugar, manufacturing and health sectors are some of the fast growing industries in the state. Bihar has also taken several initiatives for the development of
other sectors such as
education and tourism.
Policy incentives
• The state offers a wide range of policy incentives for businesses under the Industrial Incentive Policy, 2011.
• The state also provides specific incentives for the information technology, renewable energy, sugar, food processing and tourism.
Location advantage
• The state enjoys a unique location-specific advantage because of its proximity to the vast markets of eastern and northern India, as well as access to ports such as Kolkata & Haldia, and to raw material sources and mineral reserves from the neighboring states.
Rich labour pool
• The state has a large base of cost-effective industrial labour, making it an ideal destination for a wide range of industries.
• The state has institutes of national importance such as National Institute of Technology and Indian Institute of Technology, which provide skilled manpower to the industries.
FY 2000-10
3.0 per cent
share in
India's
incremental
GDP
FY 2011-20
4.2 per cent
share in
India's
incremental
GDP
Advantage
Bihar
Bihar is located in the eastern part of India. The state is
surrounded by Nepal in the north, West Bengal in the east,
Uttar Pradesh in the west and Jharkhand in the south.
The state has a number of rivers; the most important of
which is the Ganges.
Patna, Gaya, Bhagalpur, Muzaffarpur and Darbhanga are
some of the key cities in the state of Bihar.
The most commonly-spoken languages in the state are
Hindi, English, Urdu and Bhojpuri.
The four agro-climatic seasons and fertile soil of Bihar
support cultivation of a wide range of crops.
Sources: Government of Bihar website,
*Provisional data - www.gov.bih.nic.in– Census 2011
Parameters Bihar
Capital Patna
Geographical area (sq km) 94,163
Administrative districts (No) 38
Population density (persons per sq km)* 1,102
Total population (million)* 103
Male population (million)* 54
Female population (million)* 49
Sex ratio (females per 1,000 males)* 916
Literacy rate (%)* 63.8
Source: Maps of India
Parameter Bihar All-States Source
Economy
GSDP as a percentage of all states’ GSDP 3.3 100 Planning Commission Databook, October
2013, current prices
Average GSDP growth rate (%)* 18.8 15.6 Planning Commission Databook, October
2013, current prices
Per capita GSDP (US$) 521.4 1,414.2 Planning Commission Databook, October
2013, current prices
Physical infrastructure
Installed power capacity (MW) 1,868.1 227,356.73 Central Electricity Authority, as of August
2013
Wireless subscribers (No) 58,321,739 870,582,006 Telecom Regulatory Authority of India, as of
September 2013
Broadband subscribers (No) 97,603** 15,050,000 Ministry of Communications & Information
Technology, as of March 2013
National Highway length (km) 3,734 79,116 Ministry of Road Transport & Highways,
as of March 2013
Airports (No) 2 133 Airports Authority of India
*Calculated in Indian rupee terms, **In 2011–12
Parameter Bihar All-States Source
Social indicators
Literacy rate (%) 63.8 74.0 Provisional data – Census 2011
Birth rate (per 1,000 population) 27.7 21.6 SRS Bulletin (www.censusindia.gov.in),
October 2013
Investment
Outstanding investments (US$ billion) 52.5 2,658.2 CMIE (2012-13)
Industrial infrastructure
PPP projects (No) 18 881 www.pppindiadatabase.com
PPP: Public-Private Partnership, SRS: Sample Registration System
17.3 18.6 22.2
28.3 31.0
34.4
44.9
51.5
56.8
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In 2012–13, the GSDP of Bihar at current prices was US$
56.8 billion.
Bihar’s GSDP grew at a CAGR of 18.8* per cent between
2004–05 and 2012–13.
Source: Planning Commission Databook October 2013,
*CAGR calculated in rupee terms
Note: GSDP – Gross State Domestic Product,
CAGR – Compound Annual Growth Rate
CAGR
18.8%*
Bihar’s GSDP at current prices (in US$ billion)
15.6 16.7 20.2
25.6 28.2 31.2
41.0
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In 2012–13, the NSDP of Bihar was US$ 52.0 billion.
The average NSDP growth rate between 2004-05 and
2012–13 was about 19.0* per cent.
Source: Planning Commission Databook October 2013,
*CAGR calculated in rupee terms
Note: NSDP – Net State Domestic Product,
CAGR – Compound Annual Growth Rate
Bihar’s NSDP at current prices (in US$ billion)
CAGR
19.0%*
195 207 243
304 328
359
462 523
570
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Bihar’s per capita GSDP increased from US$ 195.2 in 2004-
05 to US$ 569.5 in 2012–13.
The per capita GSDP increased at a CAGR of 17.1* per
cent between 2004–05 and 2012–13.
Source: Planning Commission Databook October 2013,
*CAGR calculated in rupee terms
Per capita GSDP (US$)
CAGR
17.1%*
176.1 185.7 220.1 274.6
299.0 326.0
421.4
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Bihar’s per capita NSDP increased from US$ 176.1 in 2004-
05 to US$ 521.4 in 2012-13.
A robust secondary and tertiary sector has helped Bihar to
increase its average per capita NSDP at a CAGR of around
17.3* per cent between 2004-05 and 2012-13.
Source: Planning Commission Databook October 2013,
*CAGR calculated in rupee terms
Per capita NSDP (US$)
CAGR
17.3%*
31.6 24.8
13.7 19.6
54.7 55.6
2004-05 2012-13
Primary Secondary Tertiary
At US$ 31.6 billion, the tertiary sector contributed 55.6 per
cent to the GSDP (at current prices) in 2012-13, followed by
the primary sector, contributing US$ 14.0 billion (24.8 per
cent), and the secondary sector contributing US$ 11.2
billion (19.6 per cent).
Between 2004-05 and 2012-13, the secondary sector was
the fastest growing sector with a CAGR of 29.0 per cent,
followed by the tertiary sector, with a CAGR of 23.6 per
cent.
This growth has been supported by the manufacturing,
electricity, gas & water supply, construction and services.
The primary sector grew at a CAGR of 19.6 per cent
between 2004-05 and 2012-13.
Source: CMIE
*CAGR calculated in rupee terms
Percentage distribution of GSDP
CAGR*
19.6%
23.6%
29.0%
Source: Economic Survey of Bihar, 2012-13
*Revised numbers for 2011-12
**’000 bales of 180 kgs each
Crop Annual production
2011-12* (‘000 tonnes)
Sugarcane 11,288.6
Rice 8187.6
Wheat 6531.0
Potato 6101.7
Maize 2486.2
Jute 1490.7**
Mesta 248.1**
Onion 1236.8
Rapeseed and
mustard 127.9
Gram 76.8
Sunflower seed 22.9
Total pulses 519.9
Total oil seeds 174.5
In 2011-12*, the total food grain production was estimated
at 17.2 million tonnes.
Major crops produced in the state include sugarcane, rice,
wheat, maize and potato.
In 2011-12*, total production of sugarcane, rice and wheat
was estimated at 11.2 million tonnes, 8.1 million tonnes and
6.5 million tonnes respectively.
Bihar is one of the leading producers of fruits and
vegetables in the country.
In 2011–12, total production of fruits in Bihar was 3.9 million
tonnes and total production of major vegetables was 15.5
million tonnes.
70.0%
21.3%
4.3% 4.3%
Electricity
Services
Manufacturing
Others
In 2012–13, total outstanding investments in Bihar were US$ 52.5 billion.
The electricity sector accounted for the largest share of outstanding investments of around 70.04 per cent, followed by the
services sector at 21.3 per cent and the manufacturing sector at 7.0 per cent.
Between April 2008 and September 2012, 939 investment proposals with a total investment of more than US$ 58.85 billion,
were approved by the SIPB. Of the total proposals approved, 93 have started operation and the remaining are at different
stages of implementation.
In 2012–13 (up to September 2012), SIPB has approved 215 proposals that are expected to strengthen the base of medium
scale industries in the state.
Source: CMIE, gov.bih.nic.in, * Till September 2012
Note: SIPB - State Investment Promotion Board
Year No of proposals approved by SIPB
2008-09 173
2009-10 127
2010-11 161
2011-12 263
2012-13* 215
Break up of outstanding investments by sector (2012-13)
There is 3,734 km of national highways and 4,857 km of
state highways in Bihar. Besides, there are 9,030 km major
district roads in the state.
The East-West corridor (a four-lane high-speed corridor)
and the Golden Quadrilateral road pass through Bihar.
The state government aims to provide road infrastructure in
Bihar that’s equivalent to the ‘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 is US$ 795.5 million for 2012-13.
As of September 2012, the total road length in the state was
140,219.97 km as compared to 112,733.58 km in
September 2011.
Sources: Economic Survey of Bihar, 2012-13,
Ministry of Road Transport & Highways.
*Includes ‘Other district roads’
Type of road Length (km) as of
September 2012
National Highways 3,734
State Highways 4,857
Major District Roads 9,030
Rural Roads* 122,598
Source: Maps of India
Bihar had an extensive railway network of 3,612 km, as of
March 2011.
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.
In the 2011-12 Railway Budget, the state has been given
two major projects; an electric locomotive factory at
Madhepura (estimated cost of US$ 355 million) and a diesel
locomotive factory at Marhaura in Saran district (estimated
cost of US$ 372 million) on a public-private partnership
(PPP) basis.
Several link-lines, such as Muzaffarpur-Samastipur-
Barauni-Katihar and Muzaffarpur-Chapra-Siwan, have been
converted to broad gauge from metre gauge.
The work on the railways wheel factory at Belapur in
Chhapra has been completed at an estimated cost of US$
258 million and awaits official inauguration. The trial
production was done in March 2012. Leveraging on the
latest US-based Griffin technology, the factory has the
capacity to produce about 100,000 wheels of goods
wagons, passenger coaches and locomotives per year.
Source: http://indianrailways.gov.in, iindiatimes.com.
Source: Maps of India
Bihar has one domestic airport located in Patna and one
international airport located in Bodh Gaya.
Several domestic airlines connect Patna to Delhi, Kolkata,
Mumbai, Lucknow, Bengaluru, Hyderabad and Ranchi.
The airport in Bodh Gaya is used for international
connectivity with Bangkok (Thailand), Colombo (Sri Lanka),
Yangon (Myanmar), Dhaka (Bangladesh), Paro (Bhutan)
and Kuala Lumpur (Malaysia).
Source: Bihar Economic-Survey-2013, *Till September 2012
Source: Maps of India
Domestic airport
International airport
Airlines and number of flights (Patna Airport)
Airlines No of flights/day No of flights/day
2012-13* 2011-12
Indian Airlines/
Air India 3 3
Jet Airways 5 4
Air Deccan/
King Fisher - 3
Go Air 3 3
IndiGo 5 4
Total 16 17
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 on National Waterway-
1 for handling containers. The National Inland Navigation
Institute has been set up in Patna to train vessel crews.
It has been proposed that waterways should be used to
deliver coal to power plants located on the river-side.
The state government has requested the central
government for funding the approval of the scheme for
making rivers like Ganga, Gandak, Kosi, Sone and others
navigable and connecting 2,000 panchayats with
waterways. Source: Maps of India
As of August 2013, Bihar had a total installed power
generation capacity of 1,868.13 MW, of which 1,544.13 MW
was owned by central utilities, 280.70 MW was owned by
state utilities and 43.30 MW was owned by private sector.
The total installed power capacity comprised of 1,624.70
MW of coal-based power plants and 129.43 MW of
hydropower plants. Besides, there was 114.00 MW of
installed power generation capacity from renewable
sources.
The BSEB is a vertically integrated agency and is
responsible for generation, transmission and distribution of
electricity in Bihar.
As of March 2012, BSEB was serving around 3.94 million
consumers in the state. Source: Central Electricity Authority, *As of August 2013
Installed power capacity (MW)
Note: BSEB - Bihar State Electricity Board
1,970.0 1,845.7 1,921.9 1,833.9 1,868.1 1,868.1
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14*
Telecom infrastructure (September 2013)
Wireless subscribers^ 58,321,739
Wireline subscribers^ 389,362
Broadband subscribers 97,603*
Telephone exchanges 1,197*
Tele-density (per 100 population)^ 43.95
Public Call Offices 62,389*
Sources: Telecom Regulatory Authority of India, September 2013
Department of Telecommunications, Annual Report 2012-13,
Ministry of Communications & Information Technology
*As of December 2011
^including Jharkhand
According to Telecom Regulatory Authority of India (TRAI),
Bihar had nearly 58.3 million^ wireless subscribers and
389,362 wire-line subscribers, as of September 2013.
The tele-density in the state was 43.95 per cent, as of
March 2013.
There were 9,023 post offices in the state, as of January
2013.
At a wireless subscriber base of 58.3 million in September
2013, Bihar has the fifth largest subscriber base among
Indian states.
As of December 2011, the state had 62,389 public call
offices, 1,197 telephone exchanges and 97,603 broadband
subscribers.
Some of the major telecom operators in Bihar
Bharat Sanchar Nigam Limited (BSNL), Bharti Airtel, Aircel
Limited, Reliance Communications, Idea Cellular Services,
Vodafone Essar, Tata Teleservices
Source: Telecom Regulatory Authority of India
Sources: City Development Plans, JNNURM, Ministry of Urban Development, Government of India,
Urban Development and Housing Department, Government of Bihar, Bihar Economic Survey-2013
Note: JNNURM - Jawaharlal Nehru National Urban Renewal Mission, LPCD: Litres Per Capita Per Day, MLD: Million Litres Per Day,
TPD: Tonnes Per Day, DPR: Detailed Project Report
City Water supply Solid waste management Sewage
Patna
• The gross water supply in the city is
around 186 MLD with about 91 LPCD
• The public water supply system
comprises 98 tube wells
• Solid-waste generated in the city is
680 TPD
• About 65.0 per cent of the waste
generated is collected
• The estimated sewage
generation in the city is 224.6
MLD
• The city has a sewer length of
around 27.4 km
Gaya
• Gross water supply in the city is 3.4
MLD
• Piped water supply coverage is 35.0
per cent while the remaining 65.0 per
cent relies on hand pumps.
• Solid waste generated in the city is
17.7 TPD
• About 60.0 per cent of the waste
generated is collected
• The city generates about 6.3
MLD of waste water
• A DPR of US$ 20 million has
been prepared under JNNURM
and is under implementation
Under the JNNURM, eight projects costing US$ 155 million have been sanctioned for urban centres such as Patna and
Bodh Gaya. The key areas of development are solid-waste management system, water supply and sewage.
In 2011-12, the state had undertaken expenditures of US$ 41.4 million under state plan schemes for water supply and
sanitation.
Project name Sector PPP type Project cost
(US$ million) Stage
Khagaria-Bakhtiarpur section Roads BOT 355.4 Under bidding
Bridge across river Ganga connecting
Bakhtiarpur - Shahpur Patori Roads BOT-Toll 313.3 Construction
Hajipur-Muzaffarpur Roads BOT-Annuity 196.0 Construction
Chappra-Hajipur Roads BOT-Annuity 171.0 Construction
Khagaria Purnea section Roads BOT -Annuity 138.5 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
Development of a new five star hotel at the
site of Hotel Kautilya Vihar at Patna Tourism DBFOT 14.4 Under bidding
Development of a four star hotel at the site of
Gautam Vihar at Rajgir Tourism DBFOT 6.2 Under bidding
Source: www.pppindiadatabase.com
BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer
Education infrastructure (2011)
• Universities: 20
• Research institutions: 15
• Government colleges: 273
• Engineering/technical colleges: 10
• Medical colleges: 10
• Local body colleges/other colleges: 542
• Teacher training colleges: 35
• Other educational institutions: 252
The state has a literacy rate of 63.8 per cent according to
the provisional data of Census 2011; the male literacy rate
is 73.5 per cent and the female literacy rate is 53.3 per cent.
The total number of students enrolled in primary and upper
primary (up to class VIII) schools rose to 19.8 million in
2010–11 from 17.9 million in 2006-07, with an annual
growth rate of 2.2 per cent. There is much progress towards
gender parity with the enrolment of girls increasing at a
faster rate than that of the boys.
Budgeted plan expenditure on education in the state has
increased from US$ 736.6 million in 2010-11 to US$ 875.3
million in 2013-14. The central government has provided
US$ 303.7 million for setting up of six AIIMS-like institutions,
of which, one is proposed to be set up in Patna, Bihar.
The prestigious IIT has been established in Patna in August
2008. The institute offers B.Tech programmes in three
disciplines – Computer Science and Engineering, Electrical
Engineering and Mechanical Engineering. The Ph.D.
programmes are in Engineering, Science and Humanities
and Social Sciences.
Source: Economic Survey of Bihar, 2012-13, Medical Council of India,
University Grants Commission
Note: IIT - Indian Institute of Technology
Reputed technical institutes in Bihar
• Indian Institute of Technology, Patna
• National Institute of Technology, Patna
• National Institute of Fashion Technology, Patna
Reputed medical institutes in Bihar
• Indira Gandhi Institute of Medical Sciences, Patna
• Jawaharlal Nehru Medical College, Bhagalpur
• Patna Medical College, Patna
Health indicators (March 2012)
Persons served per doctor 25,098
Birth rate* 27.7^
Death rate* 6.6^
Infant mortality rate** 43^
Life expectancy at birth (years)
Male (2006–10) 65.5
Female (2006–10) 66.2
Sources: Economic Survey of Bihar, 2012-13, Sample Registration
System (SRS) Bulletin 2012 (www.censusindia.gov.in), Planning
Commission, Government of India, *Per thousand persons, **Per
thousand live births, ^SRS Bulletin – September 2013
As of 2012, Bihar had 11,559 health centres in various
categories including 533 PHCs, 1,330 APHCs and 9,696
SCs,
As of 2012, there were 36 district hospitals, 70 referral
hospitals and 55 sub--divisional hospitals in the state.
On an average, there are 111 health centres for a
population of one million.
In 2013-14, the total budgeted expenditure for health
services in the state is estimated at US$ 565.3 million,
including US$ 390.3 million under non-plan and US$ 175.0
under plan expenditure.
AIIMS Patna is one of the six AIIMS established in the
country under the PMSSY to provide the most sophisticated
healthcare. There will be a medical college offering
undergraduate, postgraduate and doctoral courses. 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.
Note: PHC - Primary Health Centre, APHC - Additional Primary Health Centre,
SC - Sub-Centre. PMSSY - Pradhan Mantri Swasthya Suraksha Yojana.
Major museums in Bihar
• Patna Museum, Patna
• Chandra Dhari Museum, Darbhanga
• Gaya Museum, Gaya
• Nardaha Museum, Nawada
• Bhagalpur Museum, Bhagalpur
• Maharaja Lakshmishwar Sing Museum,
Darbhanga
• Sitaram Upadhyay Museum, Buxar
• Bihar Sharif Museum, Nalanda
• Chandra Sekhar Singh Museum, Jamui
• Ramchandra Shahi Museum, Muzaffarpur
• Jananayak Karpoori Thakur Memorial Museum,
Deshratna Marg, Patna
• Chapra Museum, Chapra
A new museum is scheduled to open in 2015. Built on a 13-
acre site in Patna, its development will be handled by the
UK culture consultancy Lord Cultural Resources, with an
estimated budget of US$ 80 million.
According to the ‘Sports Policy, 2007’, the state government
is undertaking various initiatives to promote sports in the
state by augmenting sports infrastructure, providing
coaching facilities and supporting the promising players.
An international conclave on ‘Experience Buddhism - In the
land of its origin’ was organised in February, 2010, to give a
major thrust to cultural tourism and explore potential related
to the Buddhist circuits in India, especially in Bihar.
The directorates under Youth, Art and Culture Department
are Directorate of Museum, Directorate of Archaeology,
Directorate of Cultural Affairs and Directorate of Student
and Youth Welfare.
The autonomous bodies under Youth, Art and Culture
Department are Bihar State Sports Authority, Bihar Sangeet
Natak Academy and Bihar Lalit Kala Academy.
Sources: Youth, Art & Culture Department, Government of Bihar
www.biharfoundation.in
The 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.
As on October 31, 2012, BIADA acquired a total of 5,632 acres of land; of this, 4,050 acres (72 per cent) could be allotted to
the industrial units. Of the four regions, Patna reported the highest acquisition of land – 2,609.11 acres.
Sources: Economic Survey of Bihar, 2012-13
Note: BIADA - Bihar Industrial Area Development Authority
Region Acquired land
(acre)
Land reserved for
infrastructure,
administrative block,
road etc. (acre)
Allotted land
(acre)
Total vacant
land (acre)
No of running
units
Patna 2609.11 241.51 2,105.92 261.68 500
Bhagalpur 1570.51 104.77 1,084.1 344.14 236
Darbhanga 411.96 76.67 313.31 21.97 196
Muzaffarpur 1,040.43 155.58 546.81 338.04 236
Manufacturing
Textile/sericulture
Sugarcane
Agro-based industries (except sugarcane)
Industrial clusters in Bihar 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.
Muzaffarpur Important 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 of the
existing thermal power station has undergone
major renovation and modernisation.
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.
Darbhanga
The main industries of this district are paper,
sugar and handloom. Darbhanga city is also
noted for its trade in fish, mango and makhana
The natural resources and policy incentives support the
agro-based sector. Agro-based industry and petroleum
products (primarily Barauni oil refinery) account for around
85.0 per cent of the total industrial output in the state.
In 2011-12, the SIPB approved 12 large-scale units.
Britannia Industries, Ramco Industries and Hindustan
Petroleum are some of the promoters whose units were
granted approval. As of March 2011, the state had around
36 large scale industries.
Medium, small-scale industries, micro and artisan
enterprises play a major role in terms of employment. As on
December 2011, there were 189,271 permanent registered
units with total investment of US$ 309.0 million and
providing employment to 0.61 million workers.
In 2011–12, a total of 4,108 new units under the MSME
sector were registered and the state government plans to
open 8,000 units in this sector for FY 2012–13.
A majority of the industries are located in Patna, Tirhut,
Magadh, Munger and Purnea are the other major industrial
centres.
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
• Tourism
• Health Note: SIPB - State Investment Promotion Board
In order to attract investments in Bihar, the state
government has approved a total of US$ 84.2 million to
provide various benefits to industrialists and entrepreneurs
in 2013-14 under the State Industrial Policy. Out of this,
US$ 33.7 million was sanctioned in May 2013 and rest in
October 2013. The various benefits include capital
subsidies, reimbursements and grants.
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 fruits like banana, mango, litchi and vegetables such as onion, tomato, potato
and egg-plant in the country.
In 2011–12, total production of fruits in Bihar was 3.9 million tonnes and total production of major vegetables was 15.5
million tonnes.
Food processing is a priority sector for the state government.
Up to 40.0 per cent of the project cost for setting up food processing units is subsidised by the state government.
A grant of up to 35 per cent of the project cost, subject to maximum of US$ 1 million, is provided in case of an
individual investor.
In August 2013, the state government held a meeting for the implementation of the National Mission on Food Processing, a
centrally sponsored scheme for the development of the food processing sector in Bihar.
The government aims to establish two food parks in Muzaffarpur and Bhagalpur, which are expected to provide a major
impetus to the food processing industry.
Till August 2013, 735 investment proposals for new food processing projects have been cleared by the State Investment
Promotion Board. These proposals will bring investments worth US$ 1.3 billion.
Source: Economic Survey of Bihar, 2012-13;
State Investment Promotion Board
The Food Park scheme has been declared to be the most admired scheme by the Ministry of Food Processing Industry in
the history of food processing in India.
Bihar is the only state to have a vision and schemes in place for the food processing sector. The Government of Bihar has
approved 123 food processing projects.
Following are the major crops for which food processing units may come up under Vision 2022:
Paddy
Maize
Fruits and vegetables
Wheat
Sugarcane
Besides food processing, the state government promotes cooperative marketing of milk and dairy products.
Source: Overseas Indian Facilitation Centre (OIFC) report
Key players in Bihar’s food processing and dairy industry
Bihar State Cooperative
Milk Producer’s Federation
(COMPFED)
Usher Agro Ltd
• 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 2011-12, COMPFED has marketed around 0.86 million litres of milk per day on an average. It
markets its milk products under the ‘Sudha’ brand, which is in great demand.
• During 2012, an additional 57 new milk producers’ cooperative committees were formed by
COMFED. It also supplied solar plate systems to 50 such committees.
• Usher Agro Limited is one of the largest basic food grain (rice and wheat) processing
companies in India. The company established its rice processing mill in Buxar, Bihar in 2003.
• The company's principal products include rice, bran, wheat and husk. The products of the
company are sold under the brand name ‘Rasoi Raja’.
• In 2011-12, the revenue of the company was US$ 149.73 million.
JVL Group • JVL Agro Industries Limited, incorporated in the year 1989, manufactures hydrogenated
vegetable oil (Vanaspati Ghee) and refined oils.
• The group wants to set up an edible oil-based mega food park and a rice mill in Bihar, and is
waiting for clearance from the Ministry of Food Processing.
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 & allied sectors remain large contributors to the state’s industrial value output as Bihar has one of the largest
public sector refineries in the country under IOCL.
IOCL is planning for augmentation of Paradip-Haldia-Barauni crude oil pipeline. The project is expected to cost US$ 98.7
million and its commissioning is expected 30 months after receipt of statutory clearances.
ONGC is carrying out exploration for petroleum and natural gas in an area of 2,537 sq km in Purnea basin. It also expects
oil reservoirs in Kishanganj and is likely to start drilling operations soon.
The permission for investigation of natural gas and petroleum in 2,227 sq km of area in Betiah district has been accorded to
Oil and Natural Gas Corporation and Petrodine.
Source: Economic Survey of Bihar, 2012-13
Note: ONGC - Oil and Natural Gas Corporation Limited,
IOCL - Indian Oil Corporation Limited
Key players in Bihar’s chemical, oil and gas industry
Indian Oil Corp Ltd (IOCL)
Graphite India Ltd (GIL)
• IOCL, a Fortune 500 company, is India’s leading petroleum refinery. 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.
• GIL was incorporated in 1963. The company has eight plants located across India and produces
graphite products, coke and power.
• The coke division of the company at Barauni in Bihar is engaged in manufacturing of Calcined
Petroleum Coke (CPC) and has an installed capacity of 30,000 tonnes per annum.
• In 2011-12, the company produced 26,885 tonnes of calcined petroleum coke in its Barauni
plant, surpassing installed capacity.
Krishi Rasayan Exports
Pvt Ltd (KREPL)
• KREPL is a flagship company of Krishi Rasayan Group. The company is one of the major agro-
chemical manufacturers, with five composite technical manufacturing units. Total revenue of the
Krishi Rasayan Group in 2011-12 was US$ 138 million.
• In 1973, the company set up its plant at Muzaffarpur in Bihar with a capacity of 30 TPD dusting
powder formulations.
• The company operates a poultry feed unit in Muzaffarpur with a capacity of 150 tonnes per day
in pellet-form.
The goals and actions points set up by the Bihar State Council under the Bihar@2022 vision document for improving the
education sector are as follows:
• Achieve near-zero dropout rate in secondary
education.
• Build a base of 12 million graduates and 10
million certified technicians.
• Increase the capacity of higher education
institutions and vocational training institutions
by 10 times.
• Increase focus on becoming an “education
export hub” of the region by attracting
students from within and outside India.
• Increase capacity of medical institutions.
• Create exclusive science parks for
nanotechnology, biotechnology and
pharmaceuticals.
• To produce one Nobel laureate by 2022.
• Increase access to schools by establishing
schools within 1 km distance of every
habitation.
• Enable access to schools regardless of the
capacity to pay.
• Fast tracking the upgradation of the state’s
school infrastructure and ensuring availability
of adequate teachers.
• Awareness campaigns and policy initiatives
to ensure compulsory enrolment and zero
dropout.
• Establish model centres of excellence in
primary education in rural areas.
• Improve hygiene in schools and colleges to
curtail dropout, especially of girl students.
Goals to achieve by 2022 Action points – School
• Ensure access to vocational training
institutions to all; replicate initiatives such as
the “ICT academy” to provide vocational
training through e-learning.
• Planning curriculum in cooperation with
industry to ensure employability and to
minimise the skills gap.
• Provide a boost to private training facilities to
train more nurses and paramedics.
• Provide short-term vocational courses with
diploma for special skills, such as plumbing
and housekeeping, to ensure that these skills
are monetisable.
• The capacity and infrastructure of higher
institutions need to be quadrupled to
accommodate the projected 3 million
students.
• Capacity of medical colleges needs to be
immediately tripled to ensure minimum
provision of quality healthcare to the state’s
population.
• As per the current projection, the required
capacity will be four times the present
capacity. Hence, to meet the demand, the
state should facilitate speedy approval of
medical colleges.
• Collaboration of educational institutions and
industry should be such that students remain
updated with the latest industrial processes
and technology, besides ensuring their
employability.
• The state is also focused on achieving its
target of raising the gross enrolment ratio in
higher education to 30 per cent by 2020.
Action points – Vocational training Action points – Higher school
Under the state budget 2013-14, the total expenditure for the development of education sector in the state has been estimated at
US$ 3,366 million for 2013-14, 21.5 per cent higher than that in 2012-13 (US$ 2,772 million). The total amount includes US$
2,079 million for non-planned and US$ 1,287 million for planned expenditure.
The allocation of US$ 1,287 million for planned expenditure includes US$ 957 million (an increase of 42 per cent over
allocation for 2012-13) under the state sponsored scheme and US$ 330 million under the centrally sponsored scheme.
Under the state sponsored scheme, the education sector got the highest priority with an allocation of 15.3 per cent of the
state’s total planned outlay in 2013-14
The central government has taken several other initiatives as well for the development of education sector 2013-14:
Provision of US$ 303.7 million for setting up of six AIIMS-like institutions across India, of which, one is proposed to be set up
in Patna, Bihar.
Government is taking steps to create Nalanda University in Rajgir, Bihar, with the first academic session set to start from
2014.
Till August 2013, 48 investment proposals for setting up of technical institutions (engineering colleges, management etc) have
been cleared by the State Investment Promotion Board. These proposals will bring investments worth US$ 121 million.
Source: State Investment Promotion Board
Sugar, the largest agro-based industry in the state, plays a prominent role in Bihar’s economy.
The northern part of the state is climatically well-suited for producing good quality sugarcane with minimum inputs as
compared to other states.
In 2012–13, about 237,600 hectares of land was under sugarcane production, and the production rose by more than 10 per
cent to over 5 million quintals during 2012–13 compared to 4.5 million quintals in 2011–12.
Sugar companies have made considerable investments for capacity expansion; consequently, their daily crushing capacity
has increased from 37,000 tonnes in 2005 to over 68,000 tonnes at present.
It is estimated that about 500,000 farmers are engaged in sugarcane cultivation and another 50,000 skilled and unskilled
labourers are working in sugar mills.
The state government offers an incentive package to the sugar industry. The Sugarcane Institute in Pusa and Rajendra
Agricultural University are engaged in sugarcane-related research activities.
In 2012-13 (till August 2013), 29 investment proposals for new sugar mills have been cleared by the State Investment
Promotion Board. These proposals will bring investments worth US$ 760 million.
Source: Economic Survey of Bihar, 2012-13;
State Investment Promotion Board
Key players in Bihar’s sugar industry
K. K. Birla Group
Riga Sugar Co Ltd
• 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.
• The company belongs to the Dhanuka Group and was incorporated in 1980.
• It manufactures ethyl alcohol, molasses and sugar at Sitamarhi in Bihar.
• The plant has a crushing capacity of 5,000 tonnes per day.
Vishnu Sugar Mills Ltd • The company is promoted by the Bajoria family and was incorporated in 1932.
• It manufactures molasses and sugar at Gopalganj in Bihar.
• In 2011-12, the revenue of the company was US$ 14.94 million.
Eastern Sugar &
Industries Ltd • The company was incorporated in 1964.
• It manufactures molasses and sugar at Purba Champaran, in Bihar.
• The plant has a crushing capacity of 2,500 tonnes per day.
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 the 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.
A leather cluster is being planned on Fatuha Industrial estate in the Patna district. The leather cluster will consist of micro
and small leather units in three multi-storied buildings, which will house around 4,000 artisans and entrepreneurs. The
construction the three building is expected to start soon.
The textile industry accounts for 14 per cent of the total industrial production, contributing nearly 30 per cent of the total
exports. The state is taking steps for further development of the sector and a meeting was held to discuss the draft of Bihar
Textile Policy 2013 at Industries Department Patna in August 2013.
There are a large number of handloom units in Bihar, of which 10,850 are under the cooperative sector and 25,503 units are
outside. Besides this, there are 11,361 power looms in the state.
Till August 2013, 64 investment proposals in steel processing & cement sectors were approved by the SIPB. These
proposals will bring investments of US$ 1.79 billion.
Source: State Investment Promotion Board
Key players in Bihar’s manufacturing industry
Bata India Ltd
Bharat Wagon &
Engineering Co Ltd
• Promoted by the Toronto-based Bata Shoes, Bata is among India’s largest manufacturers and
marketers of footwear products.
• The company has a tannery at Mokamehghat in Bihar and a leather footwear factory at
Bataganj in Patna.
• In 2012, the company generated US$ 342 million in revenues.
• The Bharat Wagon and Engineering Company is a part of Bharat Bhari Udyog Nigam, a
Government of India undertaking. It has 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, which manufactures gas cylinders. All three plants have
captive-power generation capacity.
Gangotri Iron & Steel
Co Ltd • The company produces mild steel (MS) bars and billets.
• In 2010-11, the company produced 53,994 tonnes of MS bars and 41,482 tonnes of MS billets.
• In January 2009, the company set up a new unit in Bihta, in Bihar. In 2010-11, the company had
an installed capacity of 145,000 tonnes of MS bars, 108,900 tonnes of MS billets and 540,000
cubic metres of oxygen gas.
Sterlite Technologies • Sterlite Technologies Limited manufacturers optical fibres, telecommunication cables and power
transmission conductors.
• In September 2013, it completed the first line (Purnia-Bihar Sharif) for the East-North
Interconnection (ENICL), India's first ultra mega transmission project in 26 months.
Adhunik Corporation • Adhunik Group is engaged in mining, steel, power, and value added steel products.
• The company has signed a Memorandum of Understanding with the state government for
setting up a 1,000 MW power plant in the state.
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 and 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. Some Sufi,
Sikh and Jain circuits are also planned to be developed
during the 12th Five Year Plan.
A fortnight-long Pitripaksha mela, held every year at Gaya,
attracts large number of tourists from all over the country, as
well as from foreign countries.
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.
Source: Maps of India
The state government has established the Bihar State
Tourism Development Corporation with the prime objective
of developing hotels, transports, railways, swimming pools,
health tourism, etc. and running them on a commercial
basis for the benefit of tourists. Other initiatives taken up are
as follows: Bihar Paryatan Neeti (formulated), Paryatan
Suraksha Bal (sanctioned), 48-seater AC floating
Restaurant on the river Ganga, Buddha Smriti Park in
Patna, etc.
The government has planned two mega religious tourism
circuits (Buddhism & Jainism), two mega theme parks
based on the life of Buddha and Mahavir (to be constructed
at Bodh Gaya and Rajgir) and eight mega centres for
educational, cultural and religious tourism [Bodh Gaya,
Rajgir, Patna city, Vaishali, Nalanda, Vikramasila, Ashok
Dham, Yoga Sansthan (Munger)].
Eighteen projects have been sanctioned for the state by the
Ministry of Tourism during the 11th Five Year Plan period
(2007–2012, up to March 2011), at a project outlay of US$
12.6 million. From January 2012 to August 2012, the total
number of tourist arrivals in the state was around 18.90
million.
Bihar participated in the 33rd India International Trade Fair,
as a partner state, held in November 2013 in New Delhi and
had several attractions such as the Bihar food court.
Arrival of domestic tourists in Bihar (in million)
15.8 15.8
17.5
18.1
2009 2010 2011 2012*
Arrival of foreign tourists in Bihar (in ‘000s)
472 491
795 842
2009 2010 2011 2012*
Source: Ministry of Tourism, Government of India
*From January 2012 to August 2012
The Bihar government has made considerable investments
in the health sector:
Mobile medical unit service launched in 24 districts,
and remaining 14 districts are under processing.
PHCs established in all 534 blocks.
‘Muskaan Ek Abhiyan’ started for universal
immunisation.
Established Dial ‘1911’ (toll free) for medical
consultation and grievance re-addressable system.
Bihar Medical Services and Infrastructure
Corporation has been established.
A special patient welfare committee has been set up
in each district to look after the welfare of the poor
patients.
Untied fund availability has been provided for
infrastructure development at all levels including
district hospitals, sub-divisional hospitals, PHCs and
SHCs.
Collaboration with building construction department.
Three new medical colleges to be established at
Nalanda, W. Champaran and Madhepura.
‘Dimagi’ is a maternal health project in Bihar, which has
recently started teaching health workers about using
technology to monitor pregnancies and has been educating
them about pre-natal and neo-natal care.
Funds allocated for the health sector in Bihar as
per Budget 2013-14 (US$ million)
427
75
116
Non plan
Core plan scheme
State plan scheme
Till August 2013, 19 investment proposals for setting up of
medical institutions (medical colleges & hospitals) were
approved by the SIPB. These proposals will bring
investments of US$ 402 million.
The goals and actions points set up by the Bihar State Council under the Bihar@2022 vision document for improving the
heath sector are as follows:
• Increase the number of hospitals; beds per
thousand population to be increased from
the current 0.25 to 4 beds per thousand
population, which includes the addition of
3,01,084 beds.
• Increase the number of doctors per
thousand population from 0.40 to 3.
• Provide a thrust to health insurance
• Increase the number of medical colleges by
four times.
• Establish super-specialty hospitals under
public-private partnership at eight district
headquarters.
• Build medical institutions and set up
institutes in each district to train nurses,
technicians and paramedics to serve the
ageing population.
• Increase spending on healthcare to US$
1,600 million from the present level of US$
300 million.
• Build awareness of preventive medicines
through mass media and with assistance of
healthcare professionals and non-
governmental organisations.
• Outsource medical services.
• Increase the use of technologies to achieve
increased productivity.
• Increase focus on medical research to
incorporate nanotechnology and
biotechnology in providing medical services.
Goals to achieve by 2022 Action points
Key players in Bihar’s healthcare industry
AIIMS Patna
PMCH
• The hospital services of the All India Institute of Medical Sciences, Patna (AIIMS-P) will be
operational from August 15 this year.
• The hospital will provide full-fledged emergency services to handle serious injury cases and
patients suffering from heart ailments and brain stroke
• Patna Medical College and Hospital (PMCH) was established in 1925 as the Prince of Wales
Medical College. It is located in Ashok Rajpath.
• The hospital has 1,700 beds. It is the biggest hospital in Bihar.
JNMC • Jawaharlal Nehru Medical College was founded in the year 1970 and is affiliated to Aryabhatta
Knowledge University, Patna
• The hospital has 659 beds.
Bihar Single Window Clearance Act, 2006, and the Bihar Industrial Incentive Policy, 2011, promote industrial growth by
giving rapid clearances, issuing licenses and certificates and providing an overall investor-friendly environment in the state.
The industries department of the state and the DIC act as nodal agencies for investments.
Proposals for investments greater than US$ 21.7 million are routed through the 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 million District-Level Committee District Collector DIC
Note: DIC - District Industries Centre
Agency Description Contact information
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.
Vikas Bhawan Bailey Road,
Patna - 800 001, Bihar. Phone: 91-612-2215 211
Fax: 91-612-2217 991 Website:
http://industries.bih.nic.in/
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.
District Industries Centre, Patna
Phone - 0612-2270865 Fax: 0612-2218900
Bihar Industrial
Area Development
Authority (BIADA)
• Constituted with a mission to promote industrialisation and create awareness about the Industrial Policy of the state. Supports entrepreneurs in setting up industries and availing incentives offered by the State Government.
• The organisation runs under the guidelines and policies of the Board of Director having directors nominated by the State Government under the chairmanship of the principal secretary, Department of Industries, Government of Bihar.
1st Floor, Udyog Bhawan, East Gandhi Maidan,
Patna - 800 004, Bihar Phone: 91-612-2675 991,
2675 002, 2675 352 Fax: 91-612-2675 889
E-mail: [email protected],
Website: http:///www.biadabihar.in/
Agency Description Contact information
Bihar State
Finance
Corporation
• The main state-level institution that provides term lending facilities to industrial entrepreneurs.
• The corporation has entered into an agreement with Small Industries Development Bank of India (SIDBI), under which joint financing will be done by SIDBI and BSFC in the proportion of 90:10. Under this scheme, a minimum of US$ 0.3 million loan can be provided to one unit.
Fraser Road, Patna - 800 001, Bihar
Phone: 91-612-2332 785 E-mail:
[email protected] Website:
http://bsfc.bih.nic.in/
Bihar State
Electricity Board
(BSEB)
• The board is responsible for the synchronised development of generation, transmission and distribution of power in the state.
Vidyut Bhawan, Bailey Road,
Patna - 800 001, Bihar. Phone: 91-0612-2504 036
Fax: 91-0612-2504 968 Website:
http://bseb.bih.nic.in/
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.
Beltron Bhawan, Shastri Nagar
Jawahar Lal Nehru Marg, Patna - 800 023, Bihar
Phone: 91-0612-2281 250 Fax: 91-0612-2281 050 Email: [email protected],
Website: http://bspcb.bih.nic.in/
Approvals and clearances required Departments to be consulted Estimated time
Incorporation of company Registrar of Companies NA
Registration, Industrial Entrepreneurs
Memorandum (IEM), Industrial Licenses Nodal 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 use Revenue 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 Boilers Up 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
NA: Not Available
Approvals and clearances required Departments to be consulted Estimated time
Approval of construction activity and
building plan
Urban Development and Housing
Department, Government of Bihar Seven days
Sanction of power Bihar State Electricity Board Up to 30 days
Sanction of water Water Resources Department, Government
of Bihar Up to 30 days
Fire service clearance State Fire Service Headquarters,
Government of Bihar Up to 15 days
Registration under state’s Sales Tax Act,
and Central and State Excise Act
Sales Tax Department, Central and State
Excise Departments Seven days
Cost parameter Cost estimate Source
Industrial land (per acre) US$ 398,366 in Patliputra, US$
87,167 in Muzaffarpur
Bihar Industrial Area Development
Authority
Labour (minimum wages per day) US$ 2.1 to US$ 4.3 Ministry of Labour and Employment,
Government of India, September 2013
Office space rent
(per sq ft per month) US 50 cents to US$ 1.2 Industry sources
Residential rent
(2,000 sq ft per month) US$ 175 to US$ 350 Industry sources
Five-star hotel room (per night) US$ 180 Leading hotels in the state
Commercial and industrial
electricity (per kwh)
Industrial: US 10.3 cents to US 11.1
cents
Commercial: US 9.8 cents to US
11.2 cents
Bihar State Electricity Board
Bihar Industrial Incentive Policy - 2011
• To promote balanced industrial development and enable industries to contribute towards the
social and economic development of the state. Read more
Objective
Bihar State Hydro-Power Policy - 2012
• To enhance the overall generation capacity of the state, including hydro power.
• To obtain optimal thermal-hydro generation mix in a 60:40 ratio.
• To encourage participation of independent power producers by offering them the best policy
framework and support. Read more
Objectives
Bihar Policy for Promotion of New and Renewable Energy Sources 2011
• To develop all forms of new and renewable energy sources, including biomass- and biogas-
based projects, cogeneration projects, mini/micro/small hydro projects (up to 25 MW), wind
power projects, solar projects, municipal solid waste-based projects, and other renewable
resources-based projects. Read more
Objective
Food Processing Policy
• 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
upgradation of existing units. Read more
Objective
Information and Communication Technology Policy 2011
• To create a world-class IT infrastructure in the state.
• To promote investment in the IT/ITeS/electronic hardware manufacturing (EHM) units by private
industry to accelerate the pace of IT enablement of the state. Read more
Objectives
Sugar Incentive Package
• To serve the sugar industry by building on the factor advantages of the state.
Read more
Objective
Investment subsidies for NRIs
• The state government has offered incentive packages in the form of various tax concessions, capital and interest
subsidies, reduced power tariffs, etc. to attract foreign funds in the region.
Incentives for NRIs
• Bihar Foundation organised a two-day global meet of Non-Resident Biharis on 18–19 February 2012 with an aim to
attract NRBs from across the world so that they can share their views on the state and its development. NRIs from Bihar
who have been successful in their respective fields were invited to the event to share their experience.
Availability of finance for NRIs
• Steps are being taken by the government to provide adequate facilities to enable NRIs to start small-scale industries in
the state.
Incentives for new investments in plant and machinery
• Companies investing US$ 18.7 million or more in plant and machinery during the period from April 1, 2013 to March 31,
2015 will be entitled to deduct an investment allowance of 15 per cent of the investment.
• Incentives to semiconductor wafer fabrication manufacturing facilities including zero customs duty for plant and
machinery.
Incentives for waste to energy projects
• Government to provide low interest-bearing fund from the National Clean Energy Fund to IREDA to lend to viable
renewable energy projects. ‘Generation-based incentive’ has been reintroduced for wind energy projects and US$ 150
million has been allocated for this purpose.
Average for the year
*Average for the year (01 April 2013 to 07 November 2013)
Exchange rates
Year INR equivalent of one US$
2004-05 44.95
2005-06 44.28
2006-07 45.28
2007-08 40.24
2008-09 45.91
2009-10 47.41
2010-11 45.57
2011-12 47.94
2012-13 54.31
2013-14* 59.38
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared
by Aranca in consultation with IBEF.
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