Bihar - August 2013

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Fastest growing state inIndia

At 11.95 per cent, Bihars growth was the highest among all Indian states during the 11 thFive 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 (200405) prices for fiscal 201112

Leader in the productionof fruits and vegetables

Bihar is the largest producer of vegetables and the second largest producer of fruits inIndia

Strong agriculturesector

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 74per cent, which is much higher than the national average.

Fifth largest mobilesubscriber base

With 60.7 million mobile subscribers in February 2013, Bihar has the fifth largestsubscriber base among Indian states

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The engineering sector is delicensed;100 per cent FDI is allowed in thesector

Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 February2012, making up 8.6 per cent of totalFDI into the country in that period

Growing demand

High economic growth withflourishing industries

The economy of the state has grownat around 11.95 per cent during the11th five year plan.

Food processing, dairy, sugar,manufacturing and health sectors aresome of the fast growing industries inthe state. Bihar has also taken severalinitiatives for the development of

other sectors such as

education and tourism.

Policy incentives

The state offers a wide range ofpolicy incentives for businessesunder the Industrial IncentivePolicy, 2011.

The state also provides specificincentives for the information

technology, renewable energy,sugar, food processing and tourism.

Location advantage

The state enjoys a unique location-specific advantage because of itsproximity to the vast markets ofeastern and northern India, as well asaccess to ports such as Kolkata &Haldia, and to raw material sourcesand mineral reserves from theneighboring states.

Rich labour pool

The state has a large base of cost-effective industrial labour, making itan ideal destination for a widerange of industries.

The state has institutes of nationalimportance such as NationalInstitute of Technology and IndianInstitute of Technology, whichprovide skilled manpower to theindustries.

FY 2000-10

3.0 per cent

share inIndia's

incrementalGDP

FY 2011-20

4.2 per cent

share inIndia's

incrementalGDP

AdvantageBihar

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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 ofwhich is the Ganges.

Patna, Gaya, Bhagalpur, Muzaffarpur and Darbhanga aresome of the key cities in the state of Bihar.

The most commonly-spoken languages in the state areHindi, English, Urdu and Bhojpuri.

The four agro-climatic seasons and fertile soil of Biharsupport 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

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Parameter Bihar All-States Source

Economy

GSDP as a percentage of all states GSDP 3.1 100Planning Commission Databook, 201213,

current prices

Average GSDP growth rate (%)* 18.1 15.6Planning Commission Databook, 200405 to

201213, current prices

Per capita GSDP (US$) 543.2 1,414.2Planning Commission Databook, 201213,

current prices

Physical Infrastructure

Installed power capacity (MW) 1,868.1 225,133.1 Central Electricity Authority, as of May 2013

Wireless subscribers (No) 60,301,859 867,803,583Telecom Regulatory Authority of India, as of

March 2013

Broadband subscribers (No) 97,603** 15,050,000

Ministry of Communications & Information

Technology, as of March 2013

National Highway length (km) 3,734 79,116Ministry of Road Transport & Highways,

as of March 2013

Airports (No) 2 133 Airports Authority of India

*Calculated in Indian rupee terms, **In 201112

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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 21.8SRS Bulletin (www.censusindia.gov.in),

October 2012

Investment

Outstanding investments (US$ billion) 211.2 10,499.2 CMIE (201213)

Industrial Infrastructure

PPP projects (No) 18 881 www.pppindiadatabase.com

PPP: Public-Private Partnership, SRS: Sample Registration System

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17.3 18.622.2

28.331.0

34.7

43.5

51.454.2

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

In 201213, the GSDP of Bihar at current prices was US$54.2 billion.

Bihars GSDP grew at a CAGR of 15.3* per cent between200405 and 201213.

Source: Planning Commission Databook 2013,*CAGR calculated in rupee terms

Note: GSDP Gross State Domestic Product ,CAGR Compound Annual Growth Rate

GSDP of Bihar at current prices (in US$ billion)

CAGR15.3%*

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15.6 16.720.2

25.6

28.2 31.6

39.5

46.649.2

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

In 201213, the NSDP of Bihar was US$ 49.2 billion.

The average NSDP growth rate between 2004-05 and201213 was about 15.4* per cent.


Note: NSDP Net State Domestic Product ,CAGR Compound Annual Growth Rate

Bihars NSDP at current prices (in US$ billion)

CAGR15.4%*

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195 207243

304 328 362

447

522 543

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Bihars per capita GSDP increased from US$ 195.2 in 2004-05 to US$ 543.2 in 201213.

The per capita GSDP increased at a CAGR of 13.7* percent between 200405 and 201213.


Per capita GSDP (US$)

CAGR

13.7%*

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176186 220

275299 330

406

473493

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

Bihars per capita NSDP increased from US$ 176.1 in2004-05 to US$ 493.3 in 201213.

A robust secondary and tertiary sector has helped Bihar toincrease its average per capita NSDP at a CAGR of around13.7* per cent between 200405 and 201213.


Per capita NSDP (US$)

CAGR13.7%*

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31.6 26.2

13.716.9

54.7 56.9

2004-05 2012-13

Primary Secondary Tertiary

At US$ 30.8 billion, the tertiary sector contributed 56.9 percent to the GSDP (at current prices) in 2012-13, followed bythe primary sector, contributing US$ 14.2 billion (26.2 percent), and the secondary sector contributing US$ 9.2 billion(16.9 per cent).

Between 2004-05 and 2012-13, the tertiary sector was the

fastest growing sector with a CAGR of 32.0 per cent,followed by the secondary sector, with a CAGR of 25.9 percent.

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

The primary sector grew at a CAGR of 19.8 per centbetween 2004-05 and 2012-13.

Source: CMIE*CAGR calculated in rupee terms

Percentage distribution of GSDP

CAGR*

19.8%

32.0%

25.9%

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Source: Economic Survey of Bihar, 2012-13*Revised numbers for 2011-12

**000 bales of 180 kgs each

CropAnnual 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 76.8Sunflower seed 22.9

Total pulses 519.9

Total oil seeds 174.5

In 2011-12*, the total food grain production was estimatedat 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 and6.5 million tonnes respectively.

Bihar is one of the leading producers of fruits andvegetables in the country.

In 201112, total production of fruits in Bihar was 3.9 milliontonnes and total production of major vegetables was 15.5million tonnes.

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In 201213, total outstanding investments in Bihar were US$ 211.2 billion.

The electricity sector accounted for the largest share of outstanding investments of around 68.8 per cent, followed by theservices sector at 22.3 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 201213 (up to September 2012), SIPB has approved 215 proposals that are expected to strengthen the base of mediumscale 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)

68.8%

7.0%

1.9%

22.3% Electricity

Manufacturing

Mining

Services

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There is 3,734 km of national highways and 4,857 km ofstate highways in Bihar. Besides, there are 9,030 km majordistrict 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 inBiharthats equivalent to the best in the country by 2015.

According to the State Plan of the Road ConstructionDepartment of the state, the budgeted outlay for roads andhighways is US$ 795.5 million for 2012-13.

As of September 2012, the total road length in the state was140,219.97 km as compared to 112,733.58 km inSeptember 2011.

Sources: Economic Survey of Bihar, 2012-13,Ministry of Road Transport & Highways.

*Includes Other district roads

Type of roadLength (km) as ofSeptember 2012

National highways 3,734

State highways 4,857

Major district roads 9,030

Rural roads* 122,598


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Bihar had an extensive railway network of 3,612 km, as ofMarch 2011.

Hajipur in Bihar is the headquarter of the East-CentralRailway. The states main railway junctions are at Patna,Gaya, Muzaffarpur, Katihar and Samastipur.

In the 2011-12 Railway Budget, the state has been giventwo major projects; an electric locomotive factory atMadhepura (estimated cost of US$ 355 million) and a diesellocomotive factory at Marhaura in Saran district (estimatedcost 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 inChhapra has been completed at an estimated cost of US$258 million and awaits official inaugration. The trialproduction was done in March 2012.

Source: http://indianrailways.gov.in, iindiatimes.com.


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Bihar has one domestic airport located in Patna and oneinternational 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 internationalconnectivity with Bangkok (Thailand), Colombo (Sri Lanka),Yangon (Myanmar), Dhaka (Bangladesh), Paro (Bhutan)and Kuala Lumpur (Malaysia).

Source: Bihar Economic-Survey-2013, *Till September 2012


Domestic airport

International airport

Airlines and number of flights (Patna Airport)

AirlinesNo 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

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The 1,620 km stretch of the river Ganges that flowsbetween Allahabad in Uttar Pradesh and Haldia in WestBengal has been declared National Waterway 1, and isbeing developed for navigation by the Inland WaterwaysAuthority of India.

Patna has a low-level fixed terminal on National Waterway-

1 for handling containers. The National Inland NavigationInstitute has been set up in Patna to train vessel crews.

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

The state government has requested the centralgovernment for funding the approval of the scheme formaking rivers like Ganga, Gandak, Kosi, Sone and others

navigable and connecting 2,000 panchayats withwaterways.


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As of May 2013, Bihar had a total installed powergeneration capacity of 1,868.13 MW, of which 1,324.13 MWwas owned by central utilities, 500.70 MW was owned bystate utilities and 43.30 MW was owned by private sector.

The total installed power capacity comprised of 1,624.70MW of coal-based power plants and 129.43 MW of

hydropower plants. Besides, there was 114.00 MW ofinstalled power generation capacity from renewablesources.

The BSEB is a vertically integrated agency and isresponsible for generation, transmission and distribution ofelectricity in Bihar.

As of March 2012, BSEB was serving around 3.94 million

consumers in the state. Source: Central Electricity Authority, *As of May 2013

Installed power capacity (MW)

Note: BSEB - Bihar State Electricity Board

1,970.0 1,845.7 1,921.9 1,833.9 1,868.11,868.1

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14*

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Telecom infrastructure (March 2013)

Wireless subscribers^ 60,301,859

Wireline subscribers^ 394,129

Broadband subscribers 97,603*

Telephone exchanges 1,197*

Tele-density (per 100 population)^ 45.72

Public Call Offices 62,389*

Sources: Telecom Regulatory Authority of IndiaDepartment 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 60.3 million^ wireless subscribers and394,129 wire-line subscribers, as of March 2013.

The tele-density in the state was 45.72 per cent, as ofMarch 2013.

There were 9,023 post offices in the state, as of January2013.

At a wireless subscriber base of 60.3 million in March 2013,Bihar has the fifth largest subscriber base among Indianstates.

As of December 2011, the state had 62,389 public calloffices, 1,197 telephone exchanges and 97,603 broadband

subscribers.

Some of the major telecom operators in Bihar

Bharat Sanchar Nigam Limited (BSNL), Bharti Airtel, AircelLimited, Reliance Communications, Idea Cellular Services,

Vodafone Essar, Tata Teleservices

Source: Telecom Regulatory Authority of India

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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

CityWater supply Solid waste management

Sewage

Patna

The gross water supply in the city isaround 186 MLD with about 91 LPCD

The public water supply systemcomprises 98 tube wells

Solid-waste generated in the city is680 TPD

About 65.0 per cent of the wastegenerated is collected

The estimated sewagegeneration in the city is 224.6MLD

The city has a sewer length ofaround 27.4 km

Gaya

Gross water supply in the city is 3.4MLD

Piped water supply coverage is 35.0per cent while the remaining 65.0 percent relies on hand pumps.

Solid waste generated in the city is17.7 TPD

About 60.0 per cent of the wastegenerated is collected

The city generates about 6.3MLD of waste water

A DPR of US$ 20 million hasbeen prepared under JNNURMand is under implementation

Under the JNNURM, eight projects costing US$ 155 million have been sanctioned for urban centres such as Patna andBodh 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 andsanitation.

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Project Name Sector PPP typeProject cost(US$ million)

Stage

Khagaria-Bakhtiarpur section Roads BOT 355.4 Under bidding

Bridge across river Ganga connectingBakhtiarpur - 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 siteof Hotel Kautilya Vihar at Patna

Tourism DBFOT 14.4 Under bidding

Development of a four star hotel at the site ofGautam Vihar at Rajgir

Tourism DBFOT 6.2 Under bidding

Source: www.pppindiadatabase.comBOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer

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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 tothe provisional data of Census 2011; the male literacy rateis 73.5 per cent and the female literacy rate is 53.3 per cent.

The total number of students enrolled in primary and upperprimary (up to class VIII) schools rose to 19.8 million in201011 from 17.9 million in 2006-07, with an annual

growth rate of 2.2 per cent. There is much progresstowards gender parity with the enrolment of girls increasingat a faster rate than that of the boys.

Budgeted plan expenditure on education in the state hasincreased from US$ 736.6 million in 2010-11 to US$ 838.7million in 2011-12. The central government has providedUS$ 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 August2008. The institute offers B.Tech programmes in threedisciplines Computer Science and Engineering, ElectricalEngineering and Mechanical Engineering. The Ph.D.programmes are in Engineering, Science and Humanitiesand 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

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Health indicators (March 2012)

Persons served per doctor 25,098

Birth rate* 27.7^

Death rate* 6.7^

Infant mortality rate** 44^

Life expectancy at birth (years)

Male (200610) 65.5

Female (200610) 66.2

Sources: Economic Survey of Bihar, 2012-13, Sample RegistrationSystem (SRS) Bulletin 2012 (www.censusindia.gov.in), PlanningCommission, Government of India, *Per thousand persons, **Per

thousand live births, ^SRS Bulletin October 2012

As of 2011, Bihar had 11,559 health centres in variouscategories including 533 PHCs, 1,330 APHCs and 9,696SCs,

As of 2011, there were 36 district hospitals, 70 referralhospitals and 55 sub--divisional hospitals in the state.

On an average, there are 111 health centres for apopulation of one million.

In 2010-11, the total budgeted expenditure for healthservices in the state was US$ 154.2 million.

AIIMS Patna is one of the six AIIMS established in thecountry under the PMSSY to provide the most sophisticatedhealthcare. There will be a medical college offering

undergraduate, postgraduate and doctoral courses.

Government initiatives in the health sector

Increase in sanctioned manpower in departmentssuch 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 PrimaryHealth Centre, SC - Sub-Centre. PMSSY - Pradhan Mantri Swasthya

Suraksha Yojana.

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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 theUK culture consultancy Lord Cultural Resources, with anestimated budget of US$ 80 million.

According to the Sports Policy, 2007, the state governmentis undertaking various initiatives to promote sports in the

state by augmenting sports infrastructure, providingcoaching facilities and supporting the promising players.

An international conclave on Experience Buddhism - In theland of its origin was organised in February, 2010, to give amajor thrust to cultural tourism and explore potential relatedto 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 Studentand Youth Welfare.

The autonomous bodies under Youth, Art and CultureDepartment are Bihar State Sports Authority, Bihar SangeetNatak Academy and Bihar Lalit Kala Academy.

Sources: Youth, Art & Culture Department, Government of Biharwww.biharfoundation.in

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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 toentrepreneurs.

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 tothe industrial units. Of the four regions, Patna reported the highest acquisition of land 2,609.11 acres.

Sources: Economic Survey of Bihar, 2012-13Note: BIADA - Bihar Industrial Area Development Authority

RegionAcquired land

(acre)

Land reserved forinfrastructure,

administrative block,road etc. (acre)

Allotted land(acre)

Total vacantland (acre)

No of runningunits

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

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Manufacturing

Textile/sericulture

Sugarcane

Agro-based industries (except sugarcane)

Industrial clusters in BiharCentres Industries

Patna

Major agricultural centre of trade, exporting grain,sugarcane, sesame and medium-grained rice;has also emerged as a manufacturing hub inBihar with the highest number of industrial units.

TirhutHas the second-highest number of industrial unitsin the state; food/beverage processing andmanufacturing units are located here.

MuzaffarpurImportant trade centre for cloth; famous forexporting fruits, particularly mango and litchi.

Barauni

Has major industrial units including those ofIndian Oil Corporations refinery; capacity of theexisting thermal power station has undergonemajor renovation and modernisation.

Bhagalpur

Famous worldwide for tussar silk; trading ofagricultural produce and cloth is an importanteconomic activity. Other major industries includerice, sugar milling and wool weaving.

Gaya Major weaving centre, important tourist hub.

DarbhangaThe main industries of this district are paper,sugar and handloom. Darbhanga city is alsonoted for its trade in fish, mango and makhana

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The natural resources and policy incentives support theagro-based sector. Agro-based industry and petroleumproducts (primarily Barauni oil refinery) account for around85.0 per cent of the total industrial output in the state.

In 2012, the SIPB approved 12 large-scale units. BritanniaIndustries, 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 scaleindustries.

Medium, small-scale industries, micro and artisanenterprises play a major role in terms of employment. As onDecember 2011, there were 189,271 permanent registeredunits with total investment of US$ 309.0 million andproviding employment to 0.61 million workers.

In 201112, a total of 4,108 new units under the MSMEsector were registered and the state government plans toopen 8,000 units in this sector for FY 201213.

A majority of the industries are located in Patna, Tirhut,Magadh, Munger and Purnea are the other major industrialcentres.

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

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Bihar is one of the largest producers of vegetables and fruits in the country. The factor advantages of the state make it asuitable 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 andegg-plant in the country.

In 201112, 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% of the project cost, subject to maximum of US$ 1 million, is provided in case of an individualinvestor.

The government aims to establish two food parks in Muzaffarpur and Bhagalpur, which are expected to provide a majorimpetus to the food processing industry.

Besides food processing, the state government promotes cooperative marketing of milk and dairy products.

Source: Economic Survey of Bihar, 2012-13

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The Food Park scheme has been declared to be the most admired scheme by the Ministry of Food Processing Industry in thehistory 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 hasapproved 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

Source: Overseas Indian Facilitation Centre (OIFC) report

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Key players in Bihars food processing and dairy industry

Bihar State Cooperative

Milk Producers Federation

(COMPFED)

Usher Agro Ltd

COMPFED is an organised milk processing cooperative, which collects milk through districtlevel 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 byCOMFED. It also supplied solar plate systems to 50 such committees.

Usher Agro Limited is one of the largest basic food grain (rice and wheat) processingcompanies 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.

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

Petroleum & allied sectors remain large contributors to the states industrial value output as Bihar has one of the largestpublic sector refineries in the country under IOCL.

IOCL is planning for augmentation of Paradip-Haldia-Barauni crude oil pipeline.

ONGC is carrying out exploration for petroleum and natural gas in an area of 2,537 sq km in Purnea basin. It also expects oilreservoirs 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 toOil and Natural Gas Corporation and Petrodine.

Source: Economic Survey of Bihar, 2012-13Note: ONGC - Oil and Natural Gas Corporation Limited,

IOCL - Indian Oil Corporation Limited

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Key players in Bihars chemical, oil and gas industry

Indian Oil Corp Ltd (IOCL)

Graphite India Ltd (GIL)

IOCL, a Fortune 500 company, is Indias 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-treatingand 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 oiljetty and transports it to the Barauni refinery.

GIL was incorporated in 1963. The company has eight plants located across India and producesgraphite products, coke and power.

The coke division of the company at Barauni in Bihar is engaged in manufacturing of CalcinedPetroleum 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 Barauniplant, 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 theKrishi 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 dustingpowder formulations.

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

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The goals and actions points set up by the Bihar State Council under the Bihar@2022 vision document for improving theeducation sector are as follows:

Achieve near-zero dropout rate in secondaryeducation.

Build a base of 12 million graduates and 10 millioncertified technicians.

Increase the capacity of higher education institutionsand vocational training institutions by 10 times.

Increase focus on becoming an education exporthub 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 schoolswithin 1 km distance of every habitation.

Enable access to schools regardless of the capacityto pay.

Fast tracking the upgradation of the states schoolinfrastructure and ensuring availability of adequateteachers.

Awareness campaigns and policy initiatives to

ensure compulsory enrolment and zero dropout.

Establish model centres of excellence in primaryeducation in rural areas.

Improve hygiene in schools and colleges to curtaildropout, especially of girl students.

Goals to achieve by 2022 Action points School

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Ensure access to vocational training institutions toall; replicate initiatives such as the ICTacademy toprovide vocational training through e-learning.

Planning curriculum in cooperation with industry toensure employability and to minimise the skills gap.

Provide a boost to private training facilities to trainmore nurses and paramedics.

Provide short-term vocational courses with diploma

for special skills, such as plumbing andhousekeeping, to ensure that these skills aremonetisable.

The capacity and infrastructure of higher institutionsneed to be quadrupled to accommodate theprojected 3 million students.

Capacity of medical colleges needs to beimmediately tripled to ensure minimum provision ofquality healthcare to the states population.

As per the current projection, the required capacitywill be four times the present capacity. Hence, tomeet the demand, the state should facilitate speedyapproval of medical colleges.

Collaboration of educational institutions and industryshould be such that students remain updated with thelatest industrial processes and technology, besidesensuring their employability.

Action points Vocational training Action points Higher school

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Under the state budget 2013-14, the total expenditure for the development of education sector in the state has been estimated atUS$ 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$ 2,079million 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 overallocation 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 thestates 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 upin Patna, Bihar.

Government is taking steps to create Nalanda University in Rajgir, Bihar, with the first academic session set to start from2014.

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Sugar, the largest agro-based industry in the state, plays a prominent role in Bihars economy.

The northern part of the state is climatically well-suited for producing good quality sugarcane with minimum inputs ascompared to other states.

In 201213, about 237,600 hectares of land was under sugarcane production, and the production rose by more than 10 percent to over 5 million quintals during 201213 compared to 4.5 million quintals in 201112.

Sugar companies have made considerable investments for capacity expansion; consequently, their daily crushing capacityhas 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 unskilledlabourers are working in sugar mills.

The state government offers an incentive package to the sugar industry. The Sugarcane Institute in Pusa and RajendraAgricultural University are engaged in sugarcane-related research activities.

Source: Economic Survey of Bihar, 2012-13

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Key players in Bihars sugar industry

K. K. Birla Group

Riga Sugar Co Ltd

The K K Birla Groups sugar company, Upper Ganges Sugar & Industries Limited (UGSIL), hastwo units in Bihar Bharat Sugar Mills at Sidhwalia, with a crushing capacity of 5,000 tonnesper 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.

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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.

The textile industry accounts for 14 per cent of the total industrial production, contributing nearly 30 per cent of the totalexports.

There are a large number of handloom units in Bihar, of which 10,850 are under the cooperative sector and 25,503 units areoutside. Besides this, there are 11,361 power looms in the state.

Between April 2008 and September 2012, 51 investment proposals in steel processing & cement sectors were approved bythe SIPB.

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Key players in Bihars manufacturing industry

Bata India Ltd

Bharat Wagon &

Engineering Co Ltd

Promoted by the Toronto-based Bata Shoes, Bata is among Indias largest manufacturers andmarketers of footwear products.

The company has a tannery at Mokamehghat in Bihar and a leather footwear factory atBataganj 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, aGovernment 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 manufacturingwagons; a third unit at Muzaffarpur, which manufactures gas cylinders. All three plants havecaptive-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 hadan installed capacity of 145,000 tonnes of MS bars, 108,900 tonnes of MS billets and 540,000cubic metres of oxygen gas.

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The state has a rich cultural heritage as it is associated withpilgrimages and historical monuments related to religiousgurus such as the Buddha, Mahavir and Guru GobindSingh.

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 developedduring 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, aswell as from foreign countries.

Monuments of historical and religious significance present

tremendous potential for attracting both domestic andforeign tourists.

The states tourism policy stresses on developinginfrastructure and financing for tourism.

The Bihar government is preparing a 20-year master planfor promotion and development of tourism in the state.


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The state government has established the Bihar StateTourism Development Corporation with the prime objectiveof developing hotels, transports, railways, swimming pools,health tourism, etc. and running them on a commercialbasis for the benefit of tourists. Other initiatives taken up areas follows: Bihar Paryatan Neeti (formulated), ParyatanSuraksha Bal (sanctioned), 48-seater AC floatingRestaurant on the river Ganga, Buddha Smriti Park in

Patna, etc.

The government has planned two mega religious tourismcircuits (Buddhism & Jainism), two mega theme parksbased on the life of Buddha and Mahavir (to be constructedat Bodh Gaya and Rajgir) and eight mega centres foreducational, cultural and religious tourism [Bodh Gaya,Rajgir, Patna city, Vaishali, Nalanda, Vikramasila, AshokDham, Yoga Sansthan (Munger)].

Eighteen projects have been sanctioned for the state by theMinistry of Tourism during the 11th Five Year Plan period(20072012, up to March 2011), at a project outlay of US$12.6 million. From January 2012 to August 2012, the totalnumber of tourist arrivals in the state was around 18.90million.

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)

472491

795842

2009 2010 2011 2012*

Source: Ministry of Tourism, Government of India*From January 2012 to August 2012

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The Bihar government has made considerable investmentsin 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 universalimmunisation.

Established Dial 1911 (toll free) for medicalconsultation and grievance re-addressable system.

Bihar Medical Services and InfrastructureCorporation has been established.

A special patient welfare committee has been set upin each district to look after the welfare of the poorpatients.

Untied fund availability has been provided forinfrastructure development at all levels including

district hospitals, sub-divisional hospitals, PHCs andSHCs.

Collaboration with building construction department.

Three new medical colleges to be established atNalanda, W. Champaran and Madhepura.

Funds allocated for the health sector in Bihar asper Budget 2013-14 (US$ million)

427

75

116

Non plan

Core plan scheme

State plan scheme

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The goals and actions points set up by the Bihar State Council under the Bihar@2022 vision document for improving theheath sector are as follows:

Increase the number of hospitals; beds per thousand

population to be increased from the current 0.25 to 4beds per thousand population, which includes theaddition of 3,01,084 beds.

Increase the number of doctors per thousandpopulation from 0.40 to 3.

Provide a thrust to health insurance

Increase the number of medical colleges by fourtimes.

Establish super-specialty hospitals under public-private partnership at eight district headquarters.

Build medical institutions and set up institutes in eachdistrict to train nurses, technicians and paramedics to

serve the ageing population.

Increase spending on healthcare to US$ 1,600million from the present level of US$ 300 million.

Build awareness of preventive medicines throughmass media and with assistance of healthcareprofessionals and non-governmental organisations.

Outsource medical services.

Increase the use of technologies to achieveincreased productivity.

Increase focus on medical research to incorporatenanotechnology and biotechnology in providingmedical services.

Goals to achieve by 2022 Action points

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Key players in Bihars healthcare industry

AIIMS Patna

PMCH

The hospital services of the All India Institute of Medical Sciences, Patna (AIIMS-P) will beoperational from August 15 this year.

The hospital will provide full-fledged emergency services to handle serious injury cases andpatients suffering from heart ailments and brain stroke

Patna Medical College and Hospital (PMCH) was established in 1925 as the Prince of WalesMedical College. It is located in Ashok Rajpath.

The hospital has 1,700 beds. It is the biggest hospital in Bihar.

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Bihar Single Window Clearance Act, 2006, and the Bihar Industrial Incentive Policy, 2011, promote industrial growth by givingrapid 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 InvestmentPromotion Board

Industries DevelopmentCommissioner

IndustriesDevelopment (Udyog

Mitra)

Below US$ 2.17 million District-Level Committee District Collector DIC

Note: DIC - District Industries Centre

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Agency Description Contact information

IndustriesDepartment,

Government of

Bihar

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

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

The department, headed by the Principal Secretary, supervisesDistrict Industry Centres (DIC), industrial area developmentauthorities and industrial premises in the state.

Vikas BhawanBailey Road,

Patna - 800 001, Bihar.Phone: 91-612-2215 211

Fax: 91-612-2217 991

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

District IndustryCentre (DIC)

District-level nodal agency for investments below US$ 2.17 million.

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

District Industries Centre,Patna

Phone - 0612-2270865Fax: 0612-2218900

Bihar IndustrialArea DevelopmentAuthority (BIADA)

Constituted with a mission to promote industrialisation and createawareness about the Industrial Policy of the state. Supportsentrepreneurs in setting up industries and availing incentives offeredby the State Government.

The organisation runs under the guidelines and policies of the Boardof Director having directors nominated by the State Governmentunder the chairmanship of the principal secretary, Department ofIndustries, 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 889E-mail:

[email protected],Website:

http:///www.biadabihar.in/

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Agency Description Contact information

Bihar StateFinance

Corporation

The main state-level institution that provides term lending facilities toindustrial entrepreneurs.

The corporation has entered into an agreement with Small IndustriesDevelopment Bank of India (SIDBI), under which joint financing willbe 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 oneunit.

Fraser Road,Patna - 800 001, Bihar

Phone: 91-612-2332 785E-mail:

[email protected]:

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

Bihar StateElectricity Board

(BSEB)

The board is responsible for the synchronised development ofgeneration, 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 968Website:

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

Bihar StatePollution Control

Board

The purpose of the organisation is prevention and control ofpollution through inspection of treatment plants, standardsapplication, research and development activities, etc.

Headquartered at Patna, the organisation has seven zonal offices.

Beltron Bhawan, ShastriNagar

Jawahar Lal Nehru Marg,Patna - 800 023, Bihar

Phone: 91-0612-2281 250Fax: 91-0612-2281 050Email: [email protected],

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

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Approvals and clearances required Departments to be consulted Estimated time

Incorporation of company Registrar of Companies NA

Registration, Industrial EntrepreneursMemorandum (IEM), Industrial Licenses

Nodal Agency (Industries Department) NA

Allotment of land Bihar Industrial Area Development Authority Seven to 21 days (up to 90days for acquisition of non-industrial land)

Permission for land useRevenue and Land Reforms Department,Government of Bihar

30 days (45 days forconversion of non-industrial

land for use)

Registration under Factories Act andBoilers Act

Offices of Inspector of Factories, Inspector ofBoilers

Up to 120 days

Site environmental approval, no objectioncertificate and consent under Water andPollution Control Acts

Bihar State Pollution Control Board andMinistry of Environment and Forests,Government of Bihar

60 days

NA: Not Available

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Approvals and clearances required Departments to be consulted Estimated time

Approval of construction activity andbuilding plan

Urban Development and HousingDepartment, Government of Bihar

Seven days

Sanction of power Bihar State Electricity Board Up to 30 days

Sanction of water Water Resources Department, Governmentof Bihar

Up to 30 days

Fire service clearanceState Fire Service Headquarters,Government of Bihar

Up to 15 days

Registration under states Sales Tax Act,and Central and State Excise Act

Sales Tax Department, Central and StateExcise Departments

Seven days

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Cost parameter Cost estimate Source

Industrial land (per acre)US$ 438,055 in Patliputra, US$95,851 in Muzaffarpur

Bihar Industrial Area DevelopmentAuthority

Labour (minimum wages per day) US$ 2.2 to US$ 3.4Ministry of Labour and Employment,Government of India

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 11.1cents

Commercial: US 9.8 cents to US 11.2cents

Bihar State Electricity Board

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Bihar Industrial Incentive Policy - 2011

To promote balanced industrial development and enable industries to contribute towards thesocial 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 policyframework 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), windpower projects, solar projects, municipal solid waste-based projects, and other renewableresources-based projects. Read more

Objective
http://industries.bih.nic.in/Documents/IIP-2011-EN.pdfhttp://www.bshpcltd.com/MHP.dochttp://energy.bih.nic.in/docs/REP-2011-English.pdfhttp://energy.bih.nic.in/docs/REP-2011-English.pdfhttp://www.bshpcltd.com/MHP.dochttp://industries.bih.nic.in/Documents/IIP-2011-EN.pdf

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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 thestate by facilitating the setting up of new food processing units. To aid the expansion andupgradation 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 privateindustry 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
http://industries.bih.nic.in/Acts/AD-01-24-04-2007.pdfhttp://gov.bih.nic.in/Documents/IT-Policy-2011-English.pdfhttp://gov.bih.nic.in/Documents/IncentivePackage.pdfhttp://gov.bih.nic.in/Documents/IncentivePackage.pdfhttp://gov.bih.nic.in/Documents/IT-Policy-2011-English.pdfhttp://industries.bih.nic.in/Acts/AD-01-24-04-2007.pdf

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Investment subsidies for NRIs

The state government has offered incentive packages in the form of various tax concessions, capital and interestsubsidies, 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 1819 February 2012 with an aim toattract NRBs from across the world so that they can share their views on the state and its development. NRIs from Biharwho 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 inthe state.

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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 andmachinery.

Incentives for waste to energy projects

Government to provide low interest-bearing fund from the National Clean Energy Fund to IREDA to lend to viablerenewable energy projects. Generation-based incentive has been reintroduced for wind energy projects and US$ 150million has been allocated for this purpose.

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Average for the year

YearINR 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

Exchange rates

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