City Business Plan - Hajipur

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    CITY

    BUSINESS

    PLAN

    TheSupportProgrammeforUrbanReforminBihar(SPUR)isasixyearspartnershipprojectbetweenthe

    Govt. of Bihar and the Department for International development, U.K. Systematic local economic

    development is one of the key components of SPUR. As a first step, City Business Plans have been

    preparedforthe29projecttowns.

    City Business Plan is an operational tool for mapping economic development opportunities of urban

    areas, enabling effective interface between government agencies and business communities for

    attracting investment and improving business climate of towns. It is aimed to identify skill gaps and

    design

    and

    implement

    market

    based

    skill

    and

    enterprise

    development

    programs.

    CBPs

    also

    provide

    road

    maps forenterprisedevelopment,promote localbusinessopportunities,andstreamline theapproval

    processes forbusiness startupsaswellas to strengthen fiscaland financial capacitiesofurban local

    bodies for improving local infrastructure.CBPsof14 towns (Patna,Danapur,Phulwarisharif,Khagaul,

    Ara, Chhapra, Biharsharif, Siwan, Hajipur, Muzaffarpur, Motihari, Bettiah, Darbhanga and Sitamarhi)

    have been prepared and CBPs of 13 towns (Gaya, Bodhgaya, DehrionSone, Aurangabad, Nawada,

    Sasaram,Purnea,Katihar,Saharsa,Kishanganj,Bhagalpur,Munger&Jamalpur)areinthefinalstagesof

    preparation.

    SPURwould like to place the City Business Plans forwider review and consultation. All queries/

    suggestions/remarkscanbesenttoasinha.spur@ipeglobal.comwithsubjectlineCityBusinessPlan

    for________(town).

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    City Business Plan - Hajipur

    Final Report Page 1

    SUPPORT PROGRAMME FOR URBAN REFORMS IN BIHAR

    (SPUR)

    Final Report for

    City Business Plan Hajipur

    Submitted by:

    FEEDBACK INFRASTRUCTURE SERVICES PRIVATE LIMITED

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    City Business Plan - Hajipur

    Final Report Page 2

    DISCLAIMER

    The information in this Report has been prepared based on information collected from primary and

    secondary sources. Wherever information was not readily available, reasonable assumptions have

    been made, in good faith to draw meaningful inferences and these have been mentioned in therespective sections of the report. All such assumptions are subject to further corroboration based

    on availability of information. The information and analysis presented in this Report is not and does

    not purport to be comprehensive or to have been independently verified. This report has been

    prepared by Feedback Infrastructure Services (P) Ltd for its client, Urban Development and

    Housing Department, Govt. of Bihar for its use for furthering the project. No external agency shall

    use any part of this report without the prior permission from Urban Development and Housing

    Department and Feedback Infrastructure Services (P) Ltd.

    The information contained in this Final Report is strictly confidential for the clients use only and isspecific to the particular project under specific circumstances and is not considered replicable or

    suitable for other projects. The information and the report are also subject to updating, expansion,

    revision and amendment. It does not, and does not purport to, contain all the information that may

    be required.

    This Report includes certain statements, estimates, projections and forecasts. Such statements,

    estimates, projections, targets and forecasts are based on the information provided by the

    concerned authorities and reasonable assumptions made by the management and employees of

    Feedback Infrastructure Services (P) Ltd. No representation or warranty is given as to the

    reasonableness of estimates or the assumptions on which they may be based and nothing in this

    Report is, or should be relied on as, a promise, representation or warranty.

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    City Business Plan - Hajipur

    Final Report Page 3

    Executive Summary

    The City Profile: As per provisional reports of Census 2011 India, the population of Hajipur is

    1,47,126, which makes it the 16thmost populous city in Bihar. The male and female population is

    78,561 (53.4%) and 68,565 (46.4%) respectively. The sex ratio of Hajipur city is 873 per 1000

    males, which is lower than that of Bihar state (916) and amongst the lowest among the cities ofBihar. The total literates in Hajipur city are 100,691 of which 57,537 are males while 43,154 are

    females. The average literacy rate of Hajipur city is 79.26%, which is higher than the state literacy

    rate of 63.8%, but again on the lower side amongst the cities. The male and female literacy rates are

    73.23% (Bihar: 73.39%) and 62.93% (Bihar: 53.33%) respectively.

    At present there are 39 wards in the Hajipur Municipal Corporation. Over the years the city has

    harnessed the agricultural base to develop its industrial and tertiary sectors. The main working

    population of Hajipur is 25% of the total population. There are three industrial areas in Hajipur, the

    main one being the Hajipur Industrial Estate established by BIADA. There are 97 agro-based

    industries in Hajipur and out of the 127 industries based in the Industrial Estate, a little more than

    half are in operation.

    The Municipal Corporation covers an area of 19.64 sq. kms. Unlike many cities in Bihar, Hajipur

    does not show a corridor kind of development. The city has grown along the Muzaffarpur Road

    with the River Gandhak and the Railway track acting as the outer limits of the city on Western side.

    In the recent years development in the north eastern and south eastern sides of the city is being

    observed. The areas beyond the Railway Line in the northern side of the city have seen growth of

    new development nodes towards Vaishali and Muzaffarpur, which are growing at a rate that is

    much higher than the city.

    The entire Municipal Corporation has 98 employees from a total of 230 sanctioned posts, which

    amounts to only 43% of the sanctioned strength. At an overall level, the Corporation had been ableto maintain a positive closing balance each year (2004-05 to 2009-10). Revenue through property

    tax contributed 12% to the total revenue income of the Municipality. Both revenue account and

    capital account has been accruing a substantial amount of surplus. Hajipur Municipality derived

    18.0% (average 2008-09 to 2010-11) of its revenues from taxes and about 12% (average 2008-

    09 to 2010-11) from non-tax sources, with grants providing a further 68% (average 2008-09 to

    2010-11) of the revenues which reflects higher dependency on the government funds.

    Growth of Economic Activities in Vaishali District

    Sector 2001-02 2002-03 2003-04 2004-05

    Primary Sector 50231 80688 52344 75578

    Secondary Sector 10117 12354 11964 14171

    Tertiary Sector 79205 83909 93727 102082

    Total Local Economy 139553 176951 158035 191831

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    City Business Plan - Hajipur

    Final Report Page 4

    Economic Profile of Vaishali-Hajipur Region: Like in other parts of urban Bihar, recent trends

    indicate gradual growth of the Tertiary sector, with an ever decreasing agricultural base.

    Primary Sector:The share of primary activities in the district domestic product has increased by

    50% from 2001-02 to 2004-05, which is largely due to diversification in agriculture and the

    increase in agricultural productivity, due to better technological and scientific inputs in the

    cropping techniques and management. As per the Economic Survey Report 2010-11, Vaishali

    district was ranked second in the production of vegetables, fruits and flowers in 2008-09. Banana,

    mango, litchi, guava, wheat and maize are the main agricultural products of the district. A huge

    annual loss, amounting to 25 to 40% of the total fruits and vegetables produced, occurs on account

    of poor methods of harvesting and transport facilities. This is due to poor pre and post harvest

    management practices and lack of availability of appropriate fruit and vegetable processing

    industries (FVPI).

    The average annual production of fish in the state is nearly 2.61 lakh tonnes against the annual

    demand of 4.56 lakh tonnes. Fish farming & development of sweet prawn and shrimp farming

    practice, which fetch high value in international markets, have good potential in Hajipur. However,siltation of ponds, availability of fish seed and adequate, suitable preservation infrastructure and

    outdated technology are serious impediments to the development of this sector. The district stands

    at 20th position when compared against average milk yield, and at 19th position when compared

    average milk density (Lit /per day /sq km) of all districts (National Dairy Development Board, April

    2008). The challenges in the dairy sector are very poor coverage of veterinary and artificial

    insemination services and paucity of cattle feed and its production.

    Secondary Sector: With three industrial areas in Hajipur and its proximity to Patna, industry is one

    of the priority sectors in the economy of the Vaishali-Hajipur region. However, it needs to be

    regularized and linked to lucrative markets in a sustainable manner.

    Growth of Secondary Sector in Vaishali District

    Sector 2001-02 2002-03 2003-04 2004-05

    Registered MFG. 2572