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BIHARNovember 2010
2
Investment climate of a state is determined by a mix of factors
Investment climate of a state
Resources/Inputs
Incentives to industryPhysical and social
infrastructure
Regulatory framework
• Skilled and cost-effective labour
• Labour market flexibility
• Labour relations
• Availability of raw materials and natural
resources
• Tax incentives and exemptions
• Investment subsidies and other incentives
• Availability of finance at cost-effective terms
• Incentives for foreign direct investment (FDI)
• Profitability of the industry
• Procedures for entry and exit of firms
• Industrial regulation, labour regulation, other
government regulations
• Certainty about rules and regulations
• Security, law and order situation
• Condition of physical infrastructure such as
power, water, roads, etc.
• Information infrastructure such as telecom, IT,
etc.
• Social infrastructure such as educational and
medical facilities
BIHAR November 2010
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Advantage Bihar
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Bihar
Contents
BIHAR November 2010
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• Covering an area of 94,163 sq km, Bihar is located in the Eastern part of India. The state has a population of 83 million and is one of the most densely-populated states in the country.
• The state shares its border with the states of Uttar Pradesh, Jharkhand and West Bengal and the neighbouring country of Nepal.
• The state has 38 administrative districts. Patna is the capital city. Gaya, Bhagalpur, Muzaffarpur and Darbhanga are other key cities in the state.
• The Ganges, one of the major rivers in the Indian sub-continent, flows through the state, making Bihar‟s land extremely fertile for agriculture.
• The four agro-climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops.
• The most commonly-spoken languages in the state are Hindi, English, Urdu and Bhojpuri.
Bihar – State profile
Source: Maps of India
ADVANTAGE BIHAR
Bihar November 2010
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Advantage Bihar … (1/2)
High economic growth
Policy incentives
The economy of the state has grown at around 16.7 per
cent from 2005-06 to 2009-2010. The state provides
investment opportunities in sectors such as agro-based
industry, food processing, sugar, power, leather,
manufacturing and tourism.
The state offers a wide range of policy incentives for
businesses under the Industrial Policy, 2006. The state
also provides incentives for the sugar, renewable energy,
food processing and tourism sectors.
Source: Maps of India
ADVANTAGE BIHAR
Bihar November 2010
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Rich labour pool
The state has a large base of industrial labour, making it an
ideal destination for wide range of industries. The state
has institutes of national importance such as National
Institute of Technology (NIT) and Indian Institute of
Technology (IIT) which provide skilled manpower to the
industries.
Location advantage
The state enjoys a unique location-specific advantage
because of its proximity to the vast markets of Eastern
and Northern India, access to the ports such as Kolkata
and Haldia, raw-material sources and mineral reserves
from the neighbouring states.
Source: Maps of India
ADVANTAGE BIHAR
Advantage Bihar … (2/2)
Bihar November 2010
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Bihar in figures … (1/2)
Parameter Bihar All-states Source
Economy
GSDP as percentage of all states‟ GSDP 2.9 100.0 CMIE, as of 2007-08, current prices
Average GSDP growth rate (%)^ 10.4 11.8 CMIE, 2000-01 to 2007-08, current prices
Per capita GSDP (US$) 306.3 992.5 CMIE, as of 2007-08, current prices
Physical infrastructure
Installed power capacity (MW) 1,845.7 159,398.5 Central Electricity Authority, as of March 2010
GSM cellular subscribers (No) 32,416,063 456,586,162Cellular Operators Association of India, as of June
2010
Broadband subscribers (No) 63,305* 4,981,976 As of October 2008
National highway length (km) 3,642 70,548Ministry of Road Transport and Highways, Annual
Report 2008-09
Airports (No) 2 133 Industry sources
^ In terms of Indian rupee
*Includes Jharkhand
ADVANTAGE BIHAR
Bihar November 2010
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Bihar in figures … (2/2)
Parameter Bihar All-states Source
Social indicators
Literacy rate (%) 47.53 64.8 Census of India, 2001
Birth rate (per 1,000 population) 28.9 22.8Ministry of Health & Family Welfare, RHS Bulletin,
March 2008
Ease of doing business
Outstanding investments (US$ billion) 23.7 1,972.6 CMIE, as of March 2010
Industrial infrastructure
PPP projects (No) 6 515 www.pppindiadatabase.com
PPP: public private partnership
ADVANTAGE BIHAR
Bihar November 2010
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Key industries with policy thrust and factor advantages
Minerals
TourismTextiles/
handlooms
Leather
Food
processing
Sugar
Medium HighLow
Medium
HighIndustry attractiveness matrix
*Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital
*Factor advantage
Polic
y th
rust
ADVANTAGE BIHAR
Bihar November 2010
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Advantage Bihar
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Bihar
Contents
BIHAR November 2010
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Socio-economic snapshot of Bihar
Parameters Bihar
Capital Patna
Geographical area (sq km) 94,163
Administrative districts (No) 38
Population density (persons per sq km) 881.4
Total population (million) 83.0
Male population (million) 43.2
Female population (million) 39.8
Decadal population growth rate (%) 28.4
Sex ratio (females per 1,000 males) 919
Literacy rate (%) 47.53
Male (%) 60.32
Female (%) 33.57
Life expectancy (years)
Male (years) 61.6
Female (years) 59.7
Sources: CMIE, www.gov.bih.nic.in, Census 2001
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Bihar November 2010
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• In 2009-2010, the Gross State Domestic Product (GSDP) at current prices was US$ 32.7 billion.
• Between March 2000 and March 2010, the average annual GSDP growth rate was 11.8 per cent.
• The state had a robust average annual growth of 16.7 per cent between March 2006 and March 2010.
Source: CMIE
Bihar‟s GSDP
(US$ billion)
Bihar‟s GSDP
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
10.8 11.9 12.014.2 15.1
16.317.6
23.7
28.531.0
32.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
CAGR 11.8%
Bihar November 2010
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9.9 10.9 10.913.0 13.7 14.6 15.7
21.4
25.6
28.1 29.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
• In 2009-2010, the Net State Domestic Product (NSDP) of Bihar was US$ 29.6 billion.
• The average NSDP growth rate between 1999-2000 and 2009-2010 was about 11.6 per cent.
• This growth has been driven by the secondary sector which includes manufacturing, electricity, gas and water supply and services sector including trade, real estate, hospitality and others.
Source: CMIE
Bihar‟s NSDP
(US$ billion)
CAGR 11.6%
Bihar‟s NSDP
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Bihar November 2010
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33.723.2
12.416.2
53.9 60.7
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
1999-00 2009-10
Primary Sector Secondary Sector Tertiary Sector
• At US$ 19.8 billion, the tertiary sector contributed 60.7 per cent to the GSDP (at current prices) in 2009-2010.
• It was followed by the primary sector, contributing US$ 7.6 billion (23.2 per cent), and the secondary sector contributing US$ 5.3 billion (16.2 per cent).
• Between 1999-2000 and 2009-2010, secondary sector was the fastest growing sector with a CAGR of 14.7 per cent, followed by tertiary sector, with a CAGR of 13.1 per cent.
• This growth has been supported by the manufacturing, electricity, gas and water supply, construction and services.
Source: CMIE
Percentage distribution of GSDP
CAGR
7.7%
14.7%
13.1%
The tertiary sector has an increasing share in Bihar‟s economy
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Bihar November 2010
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135.2144.8 142.3
166.5173.8 183.8 195.6
258.7
306.3327.9 341.3
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
• Bihar‟s per capita GSDP increased over 2.5 times from US$ 135 in 1999-2000 to US$ 341 in 2009-2010.
• A robust secondary and tertiary sector has helped Bihar increase its average per capita GSDP by around 9.7 per cent between 1999-2000 and 2009-2010.
• At 14.9 per cent, the state had robust growth in per capita GSDP between March 2006 and March 2010.
Source: CMIE
Per capita GSDP
Per capita GSDPU
S$
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
CAGR 14.9%
Bihar November 2010
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4.1
11.8
40.7
43.5
5.0
14.6
30.5
49.9
0 20 40 60
R1
R2
R3
R4
Bihar All India
• The per capita income of Bihar was US$ 341 in 2009-2010.
• The distribution of households by socio-economic classification (SEC) indicates that a significantly large portion of Bihar‟s population falls in the low education and unskilled categories, although there is some concentration at the self-employed and junior-employee levels.
Percentage distribution of households
in urban areas by SEC*
Rural
Source: BW Marketing Whitebook, 2009-2010
* See Annexure for SEC categories
Percentage distribution of households in rural areas
by SEC*
3.5
6.7
8.0
8.3
19.9
23.4
11.5
18.6
3.4
6.8
8.5
9.3
16.9
20.3
9.3
25.4
0 10 20 30
A1
A2
B1
B2
C
D
E1
E2
Bihar All India
Urban
Distribution of households by income
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Bihar November 2010
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STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Consumer expenditure on household goods and services
39.6%
7.1%5.2% 4.2%
33.7%
5.7%2.3% 2.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Food Education Medical Durable goods
All-India Bihar
Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round
Share of average monthly per capita expenditure on
household goods and other services
• In rural Bihar, expenditure on food has greater share compared to all-India.
• Share of expenditure on durable goods in rural Bihar is comparable to that of all-India. .
52.3%
3.7%6.3% 3.6%
59.7%
2.2% 3.2% 3.1%0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Food Education Medical Durable goods
All-India Bihar
Urban Rural
Bihar November 2010
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• The natural resources and policy incentives support agro-based sector. Agro-based industry and petroleum products (primarily, Barauni oil refinery) account for around 85 per cent of the total industrial output in the state.
• There are 272 large and medium industries, a majority of which are located in Patna. Tirhut is the other major industrial centre.
• Small scale industries, micro and artisan enterprises play a major role in terms of employment. As on September 2009, there were 178,863 permanent registered units with total investment of US$ 232.9 million and providing employment to 0.58 million workers.
Source: Economic Survey of Bihar, 2009-2010
Key industries in Bihar
• Food and beverages
• Rubber and plastics
• Transport equipment
• Chemicals
• Tobacco
• Textiles
• Leather
• Paper, printing and publishing
• Mines and minerals
• Dairy
• Tea
• Sugar
Industrial distribution in Bihar
Key industries in Bihar
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
32.7%
17.3%16.9%
33.1%
Food, beverage, tobacco
Cotton, wool, jute, paper, leather
Rubber, plastic, chemicals
Material, metal, machine, transport, equipments
Bihar November 2010
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Bihar is among the three large producers of maize and jute
Crop
Annual production
as of 2007-08
(„000 tonnes)
Rice 5,340.0
Wheat 4,674.0
Sugarcane 4,083.0
Rapeseed and mustard 111.0
Maize^ 1,720.0
Potato^ 1,178.1
Jute and mesta^* 250.2
Gram^ 50.0
Arhar^ 40.0
Sunflower seed^ 30.0
Tobacco^ 16.1
• Major crops produced in the state include sugarcane, rice, wheat, maize and potato.
• In 2007-08, total production of sugarcane, rice and wheat was 14.1 million tonnes.
• In 2006-07, Bihar was among the three largest producers of maize, jute and mesta in the country.
^As of 2006-07
*A variety of jute
Source: CMIE
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Bihar November 2010
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Investments
^Services exclude financial services.
*Others include construction, non-metallic mineral products, metals, metal products and mining.
As of March 2010
Source: CMIE
• As of March 2010, total outstanding investments in Bihar were US$ 23.7 billion.
• The electricity sector accounted for the largest share of investments (56.8 per cent), followed by services (23.6 per cent) and chemicals (10.2 per cent).
• As of March 2010, investments worth US$ 11.8 billion were under implementation.
• Between December 2005 and November 2009, 245 investment proposals were approved by the State Investment Promotion Board (SIPB).
• In 2009-2010 (up to November 2009), SIPB has approved 81 proposals that are expected to strengthen the base of medium scale industry in the state.
Source: Economic Survey of Bihar, 2009-2010
YearSIPB approved
proposals (No)
Cumulative
(No)
2006-07 (up to January 2007) 72
2007-08 (up to December 2007) 43 115
2008-09 (up to December 2008) 49 164
2009-2010 (up to November 2009) 81 245
Break up of investments by sectors
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
2.2%
10.2%
56.8%
23.6%
5.7%
1.4%
Food & beverages
Chemicals
Electricity
Services^
Irrigation
Others*
Bihar November 2010
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Advantage Bihar
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Bihar
Contents
BIHAR November 2010
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Road network
• There is 3,642 km of National Highways and 3,989 km of State Highways in Bihar. Besides, there are major district roads and village roads.
• The east-west, four-lane, high-speed corridor and the golden quadrilateral road passes through Bihar.
• The State Government aims to provide road infrastructure in Bihar, equivalent to „best in the country‟ by 2015.
• According to the State Plan of the Road Construction Department of the State, the budgeted outlay for roads and highways was US$ 576 million for 2009-2010, up from US$ 58.5 million for 2005-06.
• In terms of physical achievement, compared to construction of 415.5 km of road in 2005-06, 2,417.1 km of road was constructed in 2008-09.
Source: Maps of India
INFRASTRUCTURE STATUS
Type of Road Length (Km)
National Highway^ 3,642
State Highway 3,989
Major District Roads 8,156
Other District Roads 3,818
Village Roads 63,262
Source: Economic Survey of Bihar, 2009-2010, ^Ministry
of Road Transport and Highway, Government of India.
Bihar November 2010
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Railway network
• Bihar has an extensive railway network of more than 5,400 km.
• Hajipur in Bihar is the headquarter of the East-Central Railway. The state‟s main railway junctions are at Patna, Gaya, Muzaffarpur, Katihar and Samastipur.
• More than US$ 1.37 billion of investment has been planned for the modernisation of the railways in Bihar, including gauge-conversion, doubling of lines and electrification.
• Several link-lines, such as Muzaffarpur-Samastipur-Barauni-Katihar and Muzaffarpur-Chapra-Siwan, have been converted to broad gauge from metre gauge.
INFRASTRUCTURE STATUS
Source: Maps of India
Bihar November 2010
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Airports
• Bihar has one domestic airport, located in Patna and one international airport at Bodh Gaya.
• Several domestic airlines connect Patna to Delhi, Kolkata, Mumbai, Lucknow, Bangalore, Hyderabad and Ranchi.
• The airport in Bodh Gaya is used for international connectivity with Bangkok, Colombo and Kuala Lampur.
Source: Maps of India
INFRASTRUCTURE STATUS
Domestic airport
International airport
Bihar November 2010
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Waterways
• The 1,620 km stretch of the river Ganges – that flows between Allahabad in Uttar Pradesh and Haldia in West Bengal – has been declared „National Waterway 1‟ and is being developed for navigation by the Inland Waterways Authority of India.
• Patna has a low-level fixed terminal for handling containers. The National Inland Navigation Institute has been set up in Patna to train vessel crews.
• It has been proposed that waterways be used to deliver coal to power plants located on the river-side.
Source: Maps of India
INFRASTRUCTURE STATUS
Bihar November 2010
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Telecom infrastructure
• As of December 2009, there were 31.7 million subscribers as compared to 21.1 million in March 2009. As of December 2009, tele-density in the state was 33 per cent.
• Out of the total number of subscribers, 30.7 million were wireless subscribers and 1 million were wire-line subscribers.
• As of March 2009, the state had 67,160 public call offices and 9,056 post offices.
Telecom infrastructure in Bihar
ParameterDecember
2009
March
2009
No of telephone exchanges 1,236 1,235
No of telephone connections
(million)31.7 21.1
No of wire line connections
(million)1.0 1.0
No of mobile phone (million) 30.7 20.1
Tele-density (per 100
population)33.0 22.2
Source: Department of Telecommunication, Annual Report 2009-2010
Source: Cellular Operators Association of India
Major telecom operators in Bihar
Bharat Sanchar
Nigam Limited (BSNL)
Bharti Airtel
Dishnet Wireless
Reliance Communications
Idea Cellular
Vodafone Essar
INFRASTRUCTURE STATUS
Bihar November 2010
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Power
• As of March 2010, Bihar had a total installed power generation capacity of 1,845.7 MW, of which 584.6 MW was owned by state utilities and 1,261.1 MW was owned by central utilities.
• The total installed power capacity comprised of 1,661.7 MW of coal-based power plants and 129.4 MW of hydro power plants.
• Besides, there is 54.6 MW of installed power generation capacity from renewable sources.
• As of March 2009, Bihar State Electricity Board served over 2.18 million consumers across eight transmission circles in the state.
Installed power capacity (MW)
Source: Central Electricity Authority
INFRASTRUCTURE STATUS
1,644.11,767.6
1,970.0 1,970.0 1,845.7
0.0
250.0
500.0
750.0
1,000.0
1,250.0
1,500.0
1,750.0
2,000.0
2005-06 2006-07 2007-08 2008-09 2009-2010
Bihar November 2010
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Urban infrastructure
• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), eight projects costing US$155 million have been sanctioned for the urban centres such as Patna and Gaya.
• In 2009-2010, US$ 15.7 million was released for projects related to development of water supply and sewage system.
• The key areas of development are solid-waste management system, water supply and sewage.
City Water supply Solid-waste management Sewage
Patna • Per capita water supply of 107 lpcd is
planned to be increased to 145 lpcd.
• US$ 116 million sanctioned for Patna
and Danapur area for improvement of
water supply.
• Solid-waste generated in the city is
646 tpd.
• US$ 10.5 million sanctioned for
improvement of solid-waste
management.
• Around 170 mld of sewage
generated, of which 109 mld
is treated.
• Planned investment of US$
96.5 million for improvement
of sewage management.
Gaya • Total water supply in the city is 2.7
mld.
• US$ 7.3 million sanctioned for Gaya to
improve water supply.
• Solid-waste generated in the city is
15.5 tpd.
• Planned investment of US$ 2 million
for solid-waste management.
• US$ 20.9 million has been
sanctioned for improvement
of sewage management.
lpcd: litre per capita per day, mld: million litre per day, tpd: tonnes per day.Source: City Development Plans, JNNURM, Ministry of Urban Development, Government of India
INFRASTRUCTURE STATUS
Bihar November 2010
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Key public private partnership projects
Project name Sector PPP typeProject cost (US$
million)Stage
Hajipur-Muzaffarpur Roads BOT-Annuity 141.7 Construction
Chappra-Hajipur Roads BOT-Annuity 121.3 Construction
Kosi bridge project Roads BOT-Annuity 90.9 Construction
Mokama-Munger Roads BOT-Annuity 74.3 Construction
Forbesganj-Jogbani Roads BOT-Annuity 15.6 Construction
Ratu road commercial complex Urban development BOT-Annuity 0.9 Operating
BOT: Build-operate-transfer
Source: pppindiadatabase.com
INFRASTRUCTURE STATUS
Bihar November 2010
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Education sector
• As per Census 2001, the literacy rate in Bihar was 47.53 per cent.
• In 2007-08, total number of students enrolled in primary and upper primary (up to class VII) schools was 17.7 million, an increase of over 58 per cent since 2003-04.
• Budgeted plan expenditure on education in the state has increased from US$ 97.3 million in 2005-06 to US$ 245.8 million in 2008-09, of which 99.9 per cent have been utilised.
• The prestigious Indian Institute of Technology (IIT) has been established in Patna in 2008-09. The institute offers B. Tech and Ph. D. programmes in computer science and engineering, electrical engineering and mechanical engineering.
Education infrastructure in Bihar
• Deemed/open universities: 13
• Research institutions: 15
• Government-aided colleges: 451
• Engineering colleges: 7
• Medical colleges: 8
• Other colleges: 364
• Teacher training colleges: 15
• Other educational institutions: 164
Reputed technical institutes in Bihar
• Indian Institute of Technology, Patna
• National Institute of Technology, Patna
• National Institute of Fashion Technology, Patna
Source: Economic Survey of Bihar, 2009-2010, Medical
Council of India
INFRASTRUCTURE STATUS
Bihar November 2010
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Health infrastructure
• As of October 2009, Bihar had 10,634 health centres of various categories. There are 487 rural primary health centres (PHC), 46 urban PHCs, 1,234 additional PHCs and 70 referral hospitals.
• On an average, there are 110 health centres for a population of 1 million. At the district level, there is a wide variation in health coverage.
• Development of health infrastructure in Bihar has resulted into higher patient turnarounds in outpatients department, from 10.5 million in 2006-07 to 16 million in 2008-09.
• An institute on the lines of All India Institute of Medical Sciences (AIIMS) has been proposed to be set up in Patna. There will also be a medical college offering undergraduate, postgraduate and doctoral course.
*Per thousand persons
** Per thousand live births
Sources: Economic Survey of Bihar, 2009-2010, Ministry of
Health and Family Welfare, Government of India, Census 2001
Health indicators as of 2008
Persons served per doctor 25,000
Birth rate* 28.9
Death rate* 7.3
Infant mortality rate** 56
Life expectancy at birth (years) as of 2001
Male 61.6
Female 59.7
Government initiatives in the health sector
• Increase in sanctioned manpower in departments such as medical, public health and family welfare.
• Higher level of personnel appointments and training.
• Involving private sector in support services related to cleaning, pathology and radiology.
• Free drug distribution and indoor treatment.
INFRASTRUCTURE STATUS
Bihar November 2010
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Cultural infrastructure
• According to the „Sports Policy, 2007‟, the State Government is undertaking various initiatives to promote sports in the state by augmenting sports infrastructure, providing facilities for coaching and supporting the promising players.
• An international conclave on „Experience Buddhism - In the land of its origin‟ was organised in February, 2010, to give major thrust to cultural tourism and explore potential related to the Buddhist circuits in India, especially in Bihar.
• Bihar Government has released a „Cultural Policy‟ in 2004, the purpose of which is to preserve and promote local culture.
• There are 19 museums in the state and the State Government has taken steps for their development.
Major museums in Bihar
• Patna Museum, Patna
• Chandra Dhari Museum, Darbhanga
• Gaya Museum, Gaya
• Nardhaha Museum, Nawada
• Bhagalpur Museum, Bhagalpur
• Maharaja Lakshimshwar Sing Museum,
Darbhanga
• Sitaram Upadhya Museum, Buxar
• Bihar Sharif Museum, Nalanda
• Chandra Sekhar Singh Museum, Jamui
• Ramchandra Shahi Museum, Muzaffarpur
Source: Youth, Art & Culture Department, Government of
Bihar
INFRASTRUCTURE STATUS
Bihar November 2010
33
Industrial infrastructure … (1/3)
• The Bihar Industrial Area Development Authority (BIADA) is responsible for promoting and assisting the rapid development of industries in the industrial areas and estates.
• Operations of BIADA are divided in four regions – Patna, Muzaffarpur, Darbhanga, Bhagalpur to facilitate quick services to entrepreneurs.
• Regional offices, under the guidelines of head office, develop industrial area, industrial growth centres and implement projects.
As of May, 2010
Source: BIADA
RegionIndustrial area
(No)
Total land
(acre)
Vacant land
(acre)
Largest vacant land
(acre)
Average price of land
(US$/acre)
Patna 17 1,506.2 239.4 2.8 79,500
Bhagalpur 12 1,236.3 261.6 150 11,000
Darbhanga 10 899.8 99.0 2.5 10,490
Muzaffarpur 7 1,040.4 284.0 3.5 23,670
INFRASTRUCTURE STATUS
Bihar November 2010
34
• BIADA is developing industrial growth centres across the state, which will have the infrastructure to promote industries in sectors such as agro-processing, light engineering, electronics, repairs and servicing and garments.
The other projects planned by BIADA are as follows:
• BIADA has proposed acquisition of 1,900 acres of land for Bihta Mega Industrial Park which will have prestigious educational institutes such as Indian Institute of Technology (IIT) and National Institute of Technology (NIT).
• BIADA has allotted 150 acres of land for textile park and 25 acres of land for handloom park at mega growth centre at Kahalgaon.
• BIADA will also allot land to Indian Oil Corporation Limited (IOCL) for its proposed petrochemical complex at Begusarai.
• BIADA is building separate feeder lines for uninterrupted electric supply in the selected industrial areas of Patna, Fatuah, Hajipur, Muzaffarpur, Gidha, Barari and Maranga.
Source: Economic Survey of Bihar, 2008-09
Industrial growth centres in Bihar
• Kahalgaon
• Begusarai
• Aurangabad
• Gidha
• Maranga (Purnia)
• Khagaria
INFRASTRUCTURE STATUS
Industrial infrastructure … (2/3)
Bihar November 2010
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Centres Industries
Patna
Major agricultural centre of trade, exporting
grain, sugarcane, sesame and medium-grained
rice; has also emerged as a manufacturing hub in
Bihar with the highest number of industrial
units.
Tirhut
Has the second-highest number of industrial
units in the state; food/beverage processing and
manufacturing units are located here.
MuzaffarpurImportant trade centre for cloth; famous for
exporting fruits, particularly, mango and litchi.
Barauni
Has major industrial units including those of
Indian Oil Corporation‟s refinery; capacity
addition of the existing thermal power station is
being carried out.
Bhagalpur
Famous worldwide for tussar silk; trading of
agricultural produce and cloth is an important
economic activity. Other major industries
include rice, sugar milling and wool weaving.
Gaya Major weaving centre, important tourist hub
Source: Economic Survey of Bihar, 2008-09
Industrial clusters in Bihar
Manufacturing
Textile/sericulture
Sugarcane
Agro-based industries (except sugarcane)
INFRASTRUCTURE STATUS
Industrial infrastructure … (3/3)
Bihar November 2010
36
Infrastructure investments
Infrastructure typeInvestments
(US$ million)
Power* 5,646.5
Roads 1,884.4
Oil and gas 7.2
Railway 1,446.9
Total 8,984.9
*Generation and distribution
Source: CMIE
As of March 2010.
• As of March 2010, the total investments in Bihar‟s infrastructure sector were around US$ 9 billion.
• Over 62 per cent of investments in infrastructure were in the area of power generation and distribution.
• About 21 per cent of the investments were in road transport and around 16 per cent were in the railways sector.
• Other major infrastructure sector attracting investments was oil and gas.
INFRASTRUCTURE STATUS
Bihar November 2010
37
Advantage Bihar
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Bihar
Contents
BIHAR November 2010
38
Industrial Policy, 2006
Aim: To establish new industries and revive sick units, provide conducive environment to attract domestic and foreign investment
and provide environment for a balanced development of the state.
Key initiatives and objectives:
• Creation of corpus fund along with commercial bank and industry association for the revival of sick and closed units . A state-level committee will decide on concessions and/or exceptions to be provided for rehabilitation of concerned units.
• Single-window clearance system to be provided.
• Infrastructure Development Enabling Act, 2006, for development of infrastructure through private participation.
• Establishment of land bank to meet requirements of industries and development schemes.
• Enhancement of competitiveness of industrial units through pre- and post-production incentives.
• Incentives to handloom sector industries.
• Development of handicrafts, handloom, khadi, silk and village industries.
• Provision of self-certification to simplify inspection of factories.
Sector specific policies … (1/6)
STATE POLICIES AND INCENTIVES
Bihar November 2010
39
Industrial Policy, 2006 (continued)
Key incentives:
• Exemption from stamp duty and registration fee; provision of reimbursement of value-added tax (VAT).
• Reimbursement of 50 per cent of cost on preparation of project report, up to US$ 1,630.
• Incentives on purchase of land and sheds:
For small or tiny units at 50 per cent of the cost, up to a maximum of US$ 163,043.
For medium to large units at 25 per cent of the cost, up to a maximum of US$ 326,087.
• Incentive grant of up to 50 per cent for expenditure on plant and machinery for captive power generation units.
• Electricity duty exemption for five years for captive generation of power for new units.
• Exemption from luxury tax, electricity duty, conversion charge and market fee for seven years.
STATE POLICIES AND INCENTIVES
Sector specific policies … (2/6)
Bihar November 2010
40
Food Processing Policy
Objectives: To address the infrastructure, technology, skills and marketing constraints being faced by rice, maize, pulses, honey,
makhana, fruits and vegetables, and other food processing units in the state by facilitating the setting up of new food processing
units. To aid the expansion and up-gradation of existing units.
Key incentives:
• Grant of US$ 3.25 million or up to 20 per cent of the total project cost, whichever is less, for setting up food parks.
• Grant up to 40 per cent of the project cost, subject to a maximum of US$ 2.17 million, for a special purpose vehicle (SPV) for acommon cluster infrastructure and up to 35 per cent of the project cost, subject to a maximum US$ 1.08 million, for an individual investor.
• For expansion and capacity increase of existing units, the benefits of the scheme will only be available if the expansion project leads to capacity addition of at least 50 per cent.
STATE POLICIES AND INCENTIVES
Sector specific policies … (3/6)
Bihar November 2010
41
Sugar Incentive Package
Aim: To serve the sugar industry by building on the factor advantages of the state.
Key incentives:
• Re-imbursement of central excise duty on sugar for five years.
• Exemption from purchase tax on sugarcane for five crushing-years.
• Exemption from stamp duty and registration fees for land transfer.
• Subsidy of 10 per cent on capital investment or a maximum of US$ 2.2 million, whichever is less, on machinery after completion of first year of commercial production.
• Incentive package for distillery and ethanol as well as co-generation of power.
STATE POLICIES AND INCENTIVES
Sector specific policies … (4/6)
Bihar November 2010
42
Bihar Tourism Policy
Aim: To promote and develop tourism in Bihar and to transform tourism industry as a vital part of vibrant economic activities of
the state.
Key initiatives:
• The State Government will prepare an area-based master plan for developing infrastructure that is necessary for the tourist destinations. The Department of Tourism will formulate a 20-year master plan with future projection for development of tourism in the state.
• All facilities and incentives available for industry will apply to investment in tourism sector.
• The state will promote private investment for setting up hotels and heritage hotels. The State Government will explore and develop possibilities of launching a paying-guest scheme.
• Rules and regulations for land allotment will be simplified to create tourism infrastructure.
• The Department of Tourism will identify potential tourist destinations where religious fairs and festivals are an integral part of culture and will promote such destinations.
• Tourist information centres will be equipped with the modern information and communication technology devices.
• The State Government will promote weekend tourism, wildlife tourism, aqua tourism and rural tourism.
• Human resource required for growth of tourism will be developed.
STATE POLICIES AND INCENTIVES
Sector specific policies … (5/6)
Bihar November 2010
43
Policy guidelines for private sector participation for developing non-conventional energy sources
Aim: To encourage private sector participation in decentralised generation of grid-grade power, through the use of the available
inputs for renewable and non-conventional energy sources such as solar, wind, water, biomass and other wastes.
Key initiatives:
• Any industry, institution, private agency, partnership firm, consortium, panchayat, cooperative society or registered societyinterested in installing and generating electricity from non-conventional energy sources such as mini- and micro-hydro plants, solar-thermal plants, solar-photovoltaic systems, biomass plants, bagasse-based plants, wind plants, cogeneration plants, municipal and industrial-waste plants will be eligible for availing incentives under the scheme.
• The Bihar State Hydro-electric Power Corporation (BHPC) and/or Bihar Renewable Energy Development Agency (BREDA) will provide necessary information and assistance regarding identification and selection of feasible sites.
• The project will be treated like that of any other industry and incentives / concessions applicable to new industrial units underindustrial policy will be available to the project.
• There will be no restriction on power generation capacity or supply of electricity to the grid.
STATE POLICIES AND INCENTIVES
Sector specific policies … (6/6)
Bihar November 2010
44
Advantage Bihar
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Bihar
Company logos cited in this section are registered trademarks of the respective companies.
Contents
BIHAR November 2010
45
Food processing and dairy
• Bihar is one of the largest producers of vegetables and fruits in the country. The factor advantages of the state make it a suitable place for setting up units in the food processing sector.
• The state is one of the leading producers of banana, mango, litchi and vegetables such as onions, tomato, potato, egg-plant and makhanas in the country.
• In 2008-09, total production of fruits in Bihar was 3.85 million tonnes and total production of major vegetables was 13.4 million tonnes.
• Food processing is a priority sector for the State Government. Up to 40 per cent of the project cost for setting up food processing units is subsidised by the State Government.
• Besides food processing, the State Government promotes cooperative marketing of milk and dairy products.
Key players
Bihar State Cooperative Milk
Producer‟s Federation (COMPFED )
Usher Agro Limited
BUSINESS OPPORTUNITIES
Source: Economic Survey of Bihar, 2009-2010
Bihar November 2010
46
Food processing and dairy – company profiles
Bihar State Cooperative Milk Producer‟s Federation (COMPFED )
• COMPFED is an organised milk processing cooperative, which collects milk through district level cooperative unions, processes and markets the same.
• It also supports members with interventions across technology, supply chain, marketing, training, etc.
• COMPFED covers five districts directly and 26 districts through six district level cooperative unions.
• In 2009-2010, COMPFED procured around 1 million litres of milk per day from a member base of around 0.46 million.
Usher Agro Limited • Usher Agro Limited is one of the large basic food grain (rice and wheat) processing companies in India. The company established its rice processing mill in Buxar, Bihar in 2003
• In 2009, the revenue of the company was US$ 44.1 million compared to US$ 7.4 million in 2005.
• The products of the company are sold under the brand name „Rasoi Raja‟.
BUSINESS OPPORTUNITIES
Bihar November 2010
47
Chemical, oil and gas
• The major drivers of chemical, oil and gas industry in Bihar are proximity to sea ports – Kolkata and Haldia, availability of labour, and the vast market of Eastern India.
• Petroleum remains a large contributor to the state‟s GSDP as it has one of the largest public sector refineries in the country - Indian Oil Corporation Limited (IOCL).
• IOCL is expected to set up petrochemical complex at Begusarai.
• Oil and Natural gas Corporation Limited (ONGC) is carrying out exploration for petroleum and natural gas in four districts in Purnea division.
• GAIL (India) Limited is considering setting up a gas based 300 MW power plant at Bettiah.
Key players
Indian Oil Corporation Limited
Graphite India Limited
Krishi Rasayan Exports Private Limited
BUSINESS OPPORTUNITIES
Source: Economic Survey of Bihar, 2009-2010
Bihar November 2010
48
Chemical, oil and gas – company profiles
Indian Oil Corporation
Limited (IOCL)
• IOCL is India‟s leading petroleum refinery and a Fortune 500 company. It has a refinery at Barauni, with an annual capacity of 6 million metric tonnes.
• Secondary processing facilities, such as a resid-fluidised catalytic cracker, diesel hydro-treating and a sulfur-recovery unit, have been added to the main refinery.
• The 498-km long Haldia-Barauni crude oil pipeline (HBCPL) receives crude oil at the Haldia oil jetty and transports it to the Barauni refinery.
Graphite India Limited
(GIL)
• GIL was incorporated in 1963. The company has nine plants located across India and producing graphite products, coke and power.
• The coke division of the company at Barauni, in Bihar is engaged in manufacture of calcined petroleum coke (CPC) and has an installed capacity of 30,000 tonnes per annum.
• In 2009-2010, the company produced 30,781 tonnes of calcined petroleum coke in its Barauni plant, surpassing installed capacity.
Krishi Rasayan Exports
Private Limited (KREPL)
• KREPL is one of the major agri-chemical manufacturer, with five composite technical manufacturing units. Total revenue of the company in 2008-09 was US$ 61.5 million.
• In 1973, the company set up its plant at Muzaffarpur in Bihar for producing dusting powder formulation.
• The company operates a poultry feed unit in Muzaffarpur with a capacity of 150 tonnes per day in pellet-form.
BUSINESS OPPORTUNITIES
Bihar November 2010
49
• Sugar, the largest agro-based industry in the state plays a prominent role in Bihar‟s economy.
• The North of the state is climatically well-suited for producing good quality sugarcane with minimum inputs as compared to the other states.
• In 2007-08, about 108,560 hectares were under sugarcane production and the state produced about 3.85 million tonnes of sugarcane.
• It is estimated that about 500,000 farmers are engaged in sugarcane cultivation and another 50,000 skilled and unskilled labours are working in sugar mills.
• The State Government offers incentive package to the sugar industry. The Sugarcane Institute in Pusa and Rajendra Agricultural University are engaged in sugarcane-related research activities.
Sugar
Key players
K. K. Birla Group
Riga Sugar Company Limited
Vishnu Sugar Mills Limited
Eastern Sugar & Industries Limited
BUSINESS OPPORTUNITIES
Bihar November 2010
50
K. K. Birla Group • The K K Birla Group‟s sugar company, Upper Ganges Sugar & Industries Limited (UGSIL), has two units in Bihar – Bharat Sugar Mills at Sidhwalia, with a crushing capacity of 5,000 tonnes per day (tpd) and Hasanpur Sugar Mills at Hasanpur, with a crushing capacity of 3,000 tpd.
• The Sidhwalia unit also has a 18 MW cogeneration power plant.
Riga Sugar Company Limited
• The company belongs to the P. L. Dhanuka group and was incorporated in 1980.
• It manufactures ethyle alcohol, molasses and sugar at Sitamarhi in Bihar.
• The plant has crushing capacity of 5,000 tonnes per day.
Vishnu Sugar Mills Limited • The company is promoted by the Bajoria family and was incorporated in 1932.
• It manufactures molasses and sugar at Gopalganj in Bihar.
• The plant has crushing capacity of 3,500 tonnes per day.
Eastern Sugar & Industries Limited
• The company was incorporated in 1932.
• It manufactures molasses and sugar at Purba Champaran, in Bihar.
• The plant has crushing capacity of 2,500 tonnes per day.
Sugar – company profiles
BUSINESS OPPORTUNITIES
Bihar November 2010
51
Manufacturing industry
• After bifurcation of Bihar, a number of large units (mostly mining and engineering) of erstwhile Bihar are now located in Jharkhand.
• The state has leather, textile and handloom industries as its prominent sectors, apart from some engineering units.
• The state has ample raw materials (hides and skin of livestock), technical skills (leather technology institutes) and manpower, which are the major drivers for leather industry in the state.
• There are 85 leather units in the state of which 60 are manufacturing units and 25 units take up job-work.
Key players
Bata Industries
Bharat Wagon and Engineering Company
Gangotri Iron & Steel Company
BUSINESS OPPORTUNITIES
Bihar November 2010
52
Manufacturing industry – company profiles
Bata Industries • Promoted by the Toronto-based Bata Shoes, Bata is among India‟s largest manufacturer and marketer of footwear products.
• The company has a tannery at Mokamehghat, in Bihar and a leather footwear factory at Bataganj, in Patna.
Bharat Wagon and Engineering
Company
• The Bharat Wagon and Engineering Company is a part of Bharat Bhari Udyog Nigam, a Government of India undertaking . It has a over 50 years of experience in heavy-steel fabrication.
• It has two units at Mokama and Muzaffarpur, which are ISO 9001 certified for manufacturing wagons; a third unit at Muzaffarpur manufactures gas cylinders. All three plants have captive-power generation capacity.
Gangotri Iron & Steel Company • The company produces mild steel (MS) bars and billets.
• In 2009, the company produced 19,665 tonnes of MS bar and 8,888 tonnes of MS billet.
• In January 2009, the company set up a new unit in Bihta, in Bihar. The company has production capacity of 145,000 tonnes of MS bar, 108,900 tonnes of MS billet and 540,000 cubic metre of oxygen.
BUSINESS OPPORTUNITIES
Bihar November 2010
53
Tourism … (1/2)
• The state has a rich cultural heritage as it is associated with pilgrimages and historical monuments related to religious gurus such as the Buddha, Mahavir, Guru Gobind Singh.
• Tourism in the state revolves around the Buddhist circuit (Bodhgaya, Rajgir, Nalanda), the Jain circuit (Bisram, Mandar hill, Champanagar) and the Sufi circuit.
• Monuments of historical and religious significance present tremendous potential for attracting both domestic and foreign tourists.
• The state‟s tourism policy stresses on developing infrastructure and financing for tourism.
• The Bihar Government is preparing a 20-year master plan for promotion and development of tourism in the state.
Source: Maps of India
BUSINESS OPPORTUNITIES
Bihar November 2010
54
10.411.9
15.7
0
2
4
6
8
10
12
14
16
18
2007 2008 2009
• In an effort to promote tourism in the state, the Department of Tourism, Government of Bihar, along with the Ministry of Tourism, Government of India, organised an international Buddhist Conclave in Nalanda and Rajgir in February, 2010.
• The state is also developing the Buddhist tourist circuit (Bodh-Gaya-Rajgir-Nalanda) with an assistance of US$ 4.6 million from the Central Government.
• In 2009, the total number of tourist arrival was around 16.1 million. Arrivals have grown at around 23.4 per cent between 2007 and 2009.
Arrival of domestic tourists in Bihar Arrival of foreign tourists in Bihar
Source: Ministry of Tourism, Government of India
BUSINESS OPPORTUNITIES
Tourism … (2/2)
mill
ion
177.4
345.6
423
0
50
100
150
200
250
300
350
400
450
2007 2008 2009
thousa
nd
Bihar November 2010
55
Major industrial projects being implemented
Project Sector PromoterInvestment
(US$ million)Location
Kahalgaon-II transmission linePower
distribution
Power Grid Corporation of India
Limited (PGCIL)3,867.8 Kahalgaon-Biharsharif
Kahalgaon-North Karanpura-Barh
composite transmission line
Power
distributionPGCIL 2,000.0
Kahalgaon-North
Karanpura
Barh power project Power NTPC Limited 1,889.7 Barh
Nabinagar power project Power Bharatiya Rail Bijlee Co Limited 1,087.0 Nabinagar
Basic telecom sevices projectTelecom
servicesTata Teleservices Limited 1,087.0 Partially in Bihar
Patna Ganga railway bridge project Railways East Central Railway 181.5 Sonepur
Sub-transmission and distribution
project
Power
distributionBihar State Electricity Board 178.9 Bihar
Sugar (Paschimi Champaran) project Sugar Globe Sugar Refinery Limited 173.9 Champaran
Sitamarhi-Jaynagar-Nirmali railway
line projectRailways East Central Railway 143.2
Sitamarhi-Jaynagar-
Nirmali
Nawada-Laxmipur railway line
projectRailways East Central Railway 131.0 Nawada-Laxmipur
Araria-Galgalia railway line project Railways North Eastern Railway 115.2 Galgalia
Sugar (Betiah) project Sugar Moria Sugar Private Limited 108.7 Betiah
Source: projectstoday.com
BUSINESS OPPORTUNITIES
Bihar November 2010
56
Key industrial projects being planned
Project Sector PromoterInvestment
(US$ million)Location
Pirpainti thermal power project Power Nalanda Power Company 2,173.9 Pirpainti
Nabinagar thermal power project Power Bihar State Electricity Board 1,956.5 Nabinagar
Coal-based power (Buxar) project Power Krishak Bharati Co-Op. Limited 1,304.4 Buxar
Hathiadah and Durgawati pumped storage
(hydel) power projectPower
Bihar State Hydroelectric
Power Corporation Limited933.4 Bhabhua
Diesel locomotive (Marhowra) project ManufacturingMinistry of Railways,
Government of India591.1 Marhowra
Thermal power (Barauni) project Power Vikash Metal & Power Limited 543.5 Barauni
Electric locomotive factory (Madhepura)
projectManufacturing Central Government 426.2 Madhepura
Khagaria- Bakhtiarpur (NH-31) road
projectRoadways
National Highways Authority of
India383.9 Bakhtiarpur
Integrated steel (Begusarai) project Finished steel Vikash Metal & Power Limited 326.1 Begusarai
High sulphur crude maximisation project Refinery Indian Oil Corporation Limited 171.7 Barauni
Co-generation power (Paschimi
Champaran) projectPower Kamlapur Sugar & Industries 168.8
Paschimi
Champaran
Hospital-cum-medical college (Bihta)
projectHospitals
Employees' State Insurance
Corporation138.5 Bihta
Water supply scheme (Patna)Water and
sewerage pipelineGovernment of Bihar 95.9 Patna
Source: projectstoday.com
BUSINESS OPPORTUNITIES
Bihar November 2010
57
Advantage Bihar
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Bihar
Contents
BIHAR November 2010
58
Key approvals required … (1/2)
Approvals and clearances required Departments to be consulted Estimated time in days
Incorporation of company Registrar of companies NA
Registration, Industrial Entrepreneurs
Memorandum (IEM), industrial licensesNodal agency (Industries Department) NA
Allotment of land Bihar Industrial Area Development Authority
Seven to 21 days (up to 90
days for acquisition of non-
industrial land)
Permission for land useRevenue and Land Reforms Department,
Government of Bihar
30 days (45 days for
conversion of non-industrial
land for use)
Registration under Factories Act and Boilers
Act
Offices of Inspector of Factories, Inspector of
BoilersUp to 120 days
Site environmental approval, No objection
certificate and consent under Water and
Pollution Control Acts
Bihar State Pollution Control Board and Ministry
of Environment and Forests, Government of
Bihar
60 days
Approval of construction activity and building
plan
Urban Development and Housing Department,
Government of BiharSeven days
NA: not available
DOING BUSINESS IN BIHAR
Bihar November 2010
59
Approvals and clearances required Departments to be consulted Estimated time in days
Sanction of power Bihar State Electricity Board Up to 30 days
Sanction of waterWater Resources Department, Government of
BiharUp to 30 days
Fire service clearanceState Fire Service Headquarters, Government of
BiharUp to 15 days
Registration under state‟s Sales Tax Act, and
Central and State Excise Act
Sales tax department, central and state excise
departmentsSeven days
DOING BUSINESS IN BIHAR
Key approvals required … (2/2)
Bihar November 2010
60
Cost of doing business in Bihar
Cost parameter Cost estimate Source
Industrial land (per acre)US$ 384,780 in Patliputra, US$ 83,700 in
Muzaffarpur
Bihar Industrial Area Development
Authority
Labour (per man year) US$ 825 to US$ 1,275Labour Resources Department,
Government of Bihar
Office space rent
(per sq ft per month)US 20 cents to US 35 cents Industry sources
Residential rent
(2,000 sq foot per month)US$ 145 to US$ 280 Industry sources
Five-star hotel room (per night) US$ 100 to US$ 180 Leading hotels in the state
Commercial and industrial electricity
(per kWh)
Industrial: US 8.8 cents to US 9.2 cents
Commercial: US 9.1 cents to US 10.5 centsBihar State Electricity Board
DOING BUSINESS IN BIHAR
Bihar November 2010
61
Single-window approval mechanism
• Bihar Single Window Clearance Act, 2006, and the Bihar Industrial Policy, 2006, promote industrial growth by giving rapid clearances, issuing of licenses and certificates and providing an overall investor-friendly environment in the state.
• The Industries Department of the state and the District Investment Centre (DIC) act as nodal agencies for investments.
• Proposals for investment greater than US$ 21.7 million are routed through Chief Minister and the Cabinet for approval.
Investment handled Body Chairman Nodal agency
US$ 2.17 million to
US$ 21.7 million
State-level
investment
promotion board
Industries
Development
Commissioner
Industries Development
(Udyog Mitra)
Below US$ 2.17 millionDistrict-level
committeeDistrict Collector DIC
DOING BUSINESS IN BIHAR
Bihar November 2010
62
Key investment promotion offices … (1/2)
Industries Department,
Government of Bihar
• State-level nodal body under the single-window regime for investments of above US$ 2.17 million.
• Primary functions involve coordinating applications from investors, processing and facilitating the process of getting clearances from various departments.
• The Department, headed by the Principal Secretary, supervises district industry centres (DIC), industrial area development authorities and industrial premises in the state.
District Industry Centre (DIC) • District-level nodal agency for investments below US$ 2.17 million.
• DIC supports entrepreneurs in identifying local resources, supply of raw materials and equipment, arrangement of credit facilities, marketing, quality control, etc.
Bihar Industrial Area
Development Authority (BIADA)
• BIADA develops infrastructure for industries in segments such as roads, drainage, water, power, etc.
• Supports entrepreneurs in setting up industries and availing incentives offered by the State Government.
DOING BUSINESS IN BIHAR
Bihar November 2010
63
Bihar State Finance Corporation • The main state-level institution that provides term lending facilities to industrial entrepreneurs.
• The corporation has been revived to supplement the role of banks in lending to industries.
Bihar State Electricity Board
(BSEB)
• The board is responsible for the synchronised development of generation, transmission and distribution of power in the state.
Bihar State Pollution Control
Board
• The purpose of the organisation is prevention and control of pollution through inspection of treatment plants, standards application, research and development activities, etc.
• Headquartered at Patna, the organisation has seven zonal-offices.
DOING BUSINESS IN BIHAR
Key investment promotion offices … (2/2)
Bihar November 2010
64
Contact list … (1/2)
Key agency Contact information
Industries Department,
Government of Bihar
Vikas Bhawan
Bailey Road,
Patna - 800 001, Bihar.
Phone: 91-0612-2215 211
Fax: 91-0612-2217 991
Website: http://industries.bih.nic.in/
Bihar State Finance Corporation Fraser Road,
Patna - 800 001, Bihar
Phone: 91-0612-2332 210
Fax: 91-0612-2217 991
E-mail: [email protected]
Website: http://bsfc.bih.nic.in/
DOING BUSINESS IN BIHAR
Bihar November 2010
65
Key agency Contact Information
Bihar State Electricity Board (BSEB) Vidyut Bhawan,
Bailey Road,
Patna - 800 001, Bihar.
Phone: 91-0612-2504 610
Website: http://bseb.bih.nic.in/
Bihar Industrial Area Development Authority
(BIADA)
Udyog Bhawan, First floor,
East Gandhi Maidan,
Patna - 800 004, Bihar
Phone: 91-0612-2302 914
Fax: 91-0612-2302 989
E-mail: [email protected], [email protected],
Website: http://www.biada.in
Bihar State Pollution Control Board Beltron Bhawan, Shastri Nagar
Jawahar Lal Nehru Marg,
Patna - 800 023, Bihar
Phone: 91-0612-2302 914
Fax: 91-0612-2281250
Email: [email protected],
Website: http://wgbis.ces.iisc.ernet.in
DOING BUSINESS IN BIHAR
Contact list … (2/2)
Bihar November 2010
66
Annexure … (1/3)
Source: Market Research Society of India
Education/occupation
Illit
era
te
Schoo
l up t
o four
year
s/ litera
te,
but
no form
al
schoo
ling
Schoo
l up t
o fiv
eto
nin
eye
ars
SSC
/HSC
Cert
ific
ate c
ours
e,
but
not
grad
uat
e
Gra
duat
e/p
ost
gr
aduat
e
genera
l
Gra
duat
e/p
ost
gr
aduat
epro
fess
ional
Unskilled workers E2 E2 E1 D D D D
Skilled workers E2 E1 D C C B2 B2
Petty traders E2 D D C C B2 B2
Shop owners D D C B2 B1 A2 A2
Entrepreneurs: employee none D C B2 B1 A2 A2 A1
Entrepreneurs: employee < 10 C B2 B2 B1 A2 A1 A1
Entrepreneurs: employee > 10 B1 B1 A2 A2 A1 A1 A1
Self-employed professionals D D D B2 B1 A2 A1
Clerical/salesman D D D C B2 B1 B1
Supervisory level D D C C B2 B1 A2
Officers/executives: junior C C C B2 B1 A2 A2
Officer/executive: middle/senior B1 B1 B1 B1 A2 A1 A1
Socio-economic classification (SEC) of urban and rural households – urban grid
DOING BUSINESS IN BIHAR
Bihar November 2010
67
Source: Market Research Society of India
Socio-economic classification (SEC) of urban and rural households – rural grid
Education
Type of house
PuccaSemi-pucca Kuccha
Illiterate R4 R4 R4
Literate but no formal school
R3 R4 R4
Up to fourth standard R3 R3 R4
Fifth to ninth standard R3 R3 R4
SSC/HSC R2 R3 R3
Some college but not graduate
R1 R2 R3
Graduate/post-graduate (general)
R1 R2 R3
Graduate/post-graduate (professional)
R1 R2 R3
Annexure … (2/3)
DOING BUSINESS IN BIHAR
Bihar November 2010
68
Year INR equivalent of one US$
2000 46.6
2001 48.3
2002 48.0
2003 45.6
2004 43.7
2005 45.2
2006 45.0
2007 42.0
2008 40.2
2009 46.0
2010 47.4
Exchange rate
Average for the years
Annexure … (3/3)
DOING BUSINESS IN BIHAR
Bihar November 2010
69
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BIHAR November 2010