Bihar‟s - Business Opportunities in India: Investment Ideas, … · · 2016-02-22in the state....
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Transcript of Bihar‟s - Business Opportunities in India: Investment Ideas, … · · 2016-02-22in the state....
Fastest growing state in
India • At 11.95 per cent, Bihar‟s growth was the highest among all Indian states during the 11th
Five-Year Plan.
Fastest per capita
income growth
• Bihar has topped in per capita income growth, registering a CAGR of 7.87 per cent in per
capita net state domestic product at factor cost constant (2004-05) prices from 2004-05 to
2013-14.
Leader in the production
of fruits and vegetables
• Bihar is the largest producer of vegetables and the second-largest producer of fruits in
India.
Strong agriculture
sector
• Bihar is one of the strongest agricultural states, with very high productivity. The population
employed in agriculture in Bihar is estimated to be 74 per cent, much higher than the
national average.
Fifth largest mobile
subscriber base
• With 62.6 million mobile subscribers in May 2014, Bihar has the fifth-largest mobile
subscriber base among Indian states.
Growing demand High economic growth with
flourishing industries
• Bihar‟s economy has grown at around 11.95 per cent during the 11th Five-Year Plan.
• Food processing, dairy, sugar, manufacturing and healthcare are some of the fast growing industries in the state. The state has planned initiatives for the development of other sectors such as
education and tourism.
Policy incentives
• The state offers a wide range of policy incentives for businesses under the Industrial Incentive Policy, 2011.
• The state provides specific incentives for information technology, renewable energy, sugar, food processing and tourism.
Location advantage
• The state enjoys a unique location specific advantage because of its proximity to the vast markets of eastern and northern India, access to ports such as Kolkata and Haldia and to raw material sources and mineral reserves from the neighbouring states.
Rich labour pool
• The state has a large base of cost-effective industrial labour, making it an ideal destination for a wide range of industries.
• The state has institutes of national importance such as National Institute of Technology and Indian Institute of Technology, which provide skilled manpower to industries.
FY 2000-10
3.0 per cent
share in
India‟s
incremental
GDP
FY 2011-20
4.2 per cent
share in
India's
incremental
GDP
Advantage
Bihar
GSDP growth
• GSDP projected to grow 10.8%
during FY11-20 (8.5 per cent for
national level).
• Agriculture to play a significant
role with opportunities in food
processing and agro-based
industries.
• Use quality seeds and fertilisers
and upgraded technology
• Provide institutional credit and
crop insurance.
• Develop infrastructure with focus
on roads and energy sector.
Health
• Build medical institutions, create
awareness and bring about
technological advancements.
• Introduce radiology and pathology
services in every district.
• Government hospitals across 36
districts to be provided with CT
scan services.
• All government hospitals likely to
commence dialysis services. Education
• Achieve zero dropout rate in secondary education.
• Increase spending on building schools and colleges with
easy access and upgraded infrastructure.
• Launch policy initiative to ensure compulsory enrolments
• Open vocational training institutes.
Tourism
• Knowledge and religious hubs to be built and will attract
100,000 tourists per year by 2022.
• Construct mega religious theme parks (Buddhism and
Jainism).
• Eight centres for educational, cultural and religious
tourism planned.
• Planned roadmap for improved connectivity; luxury hotels
to be constructed through PPP mode.
• Tourism service centres to be set up.
Vision
2022
Source: Confederation of Indian Industry
Bihar is located in the eastern part of India. The state is
surrounded by Nepal in the north, West Bengal in the east,
Uttar Pradesh in the west and Jharkhand in the south.
The state has a number of rivers; the most important of
which is the Ganges.
Patna, Gaya, Bhagalpur, Muzaffarpur and Darbhanga are
some of the key cities in Bihar.
The most commonly spoken languages in the state are
Hindi, English, Urdu and Bhojpuri.
The four agro-climatic seasons and fertile soil of Bihar
support cultivation of a wide range of crops.
Source: Government of Bihar website,
Census 2011
Parameters Bihar
Capital Patna
Geographical area (sq km) 94,163
Administrative districts (No) 38
Population density (persons per sq km)* 1,106
Total population (million) 104.1
Male population (million) 54.3
Female population (million) 49.8
Sex ratio (females per 1,000 males) 918
Literacy rate (%) 61.8
Source: Maps of India
Parameter Bihar All states Source
Economy
GSDP as a percentage of all states‟ GSDP 3.5 100.0 Planning Commission Databook, 2013-14,
current prices
Average GSDP growth rate (%)* 18.9 15.5 Planning Commission Databook, 2004-05 to
2013-14, current prices
Per capita GSDP (US$) 604.8 1,414.4 Planning Commission Databook, 2004–05 to
2013-14, current prices
Physical Infrastructure
Installed power capacity (MW) 2,198.3 249,488.3 Central Electricity Authority, as of June 2014
Wireless subscribers (No) 62,609,747 910,157,975 Telecom Regulatory Authority of India, as of
May 2014
Broadband subscribers (No) 97,603** 65,330,000 Ministry of Communications & Information
Technology, as of May 2014
National Highway length (km) 4,201 79,116 Ministry of Road Transport & Highways,
as of September 2013
Airports (No) 2 133 Airports Authority of India
*Calculated in Indian Rupee terms, **In 2011-12
Parameter Bihar All states Source
Social Indicators
Literacy rate (%) 61.8 73.0 Census 2011
Birth rate (per 1,000 population) 27.7 21.6 SRS Bulletin (www.censusindia.gov.in),
September, 2013
Investment
Outstanding investments (US$ billion) 56.1 2,414.2 CMIE (2013-14)
Industrial Infrastructure
PPP projects (No) 18 1,339 www.pppindiadatabase.com
PPP: Public-Private Partnership, SRS: Sample Registration System
17.4 18.7 22.3
28.2 30.8
34.4
44.8
52.8 57.8 61.1
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
2010-1
1
2011-1
2
2012-1
3
2013-1
4
In 2013-14, Bihar‟s GSDP at current prices was US$ 61.1
billion.
The state‟s GSDP rose at a CAGR of 18.9* per cent
between 2004-05 and 2013-14.
Source: Planning Commission Databook, June 2014,
State Budget 2014-15,
*CAGR calculated in Rupee terms
GSDP – Gross State Domestic Product,
CAGR – Compound Annual Growth Rate
GSDP of Bihar at current prices (in US$ billion)
CAGR
18.9%*
15.7 16.8 20.2 25.5
28.1 31.2
40.9
48.1 52.9
56.1
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
2010-1
1
2011-1
2
2012-1
3
2013-1
4
In 2013-14, the NSDP of Bihar was US$ 56.1 billion.
Average NSDP growth rate between 2004-05 and 2013-14
was about 19.1* per cent.
Source: Planning Commission Databook, June 2014,
*CAGR calculated in Rupee terms
NSDP – Net State Domestic Product,
CAGR – Compound Annual Growth Rate
Bihar‟s NSDP at current prices (in US$ billion)
CAGR
19.1%*
195.8 207.3 243.5
303.3 326.4
358.5
460.8
535.6 579.3
604.8
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
2010-1
1
2011-1
2
2012-1
3
2013-1
4
Bihar‟s per capita GSDP increased from US$ 195.8 in 2004-
05 to US$ 604.8 in 2013-14.
The per capita GSDP increased at a CAGR of 17.1* per
cent between 2004-05 and 2013-14.
Source: Planning Commission Databook, June 2014,
*CAGR calculated in Rupee terms
Bihar‟s per capita GSDP at current prices (US$)
CAGR
17.1%*
176.6 186.3
220.8 274.4
297.5 326.0
420.6
488.8 529.8
555.1
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
2010-1
1
2011-1
2
2012-1
3
2013-1
4
Bihar‟s per capita NSDP increased from US$ 176.6 in 2004-
05 to US$ 555.1 in 2013-14.
Robust secondary and tertiary sectors helped Bihar
increase its average per capita NSDP at a CAGR of around
17.4* per cent between 2004-05 and 2013-14.
Source: Planning Commission Databook, June 2014,
*CAGR calculated in Rupee terms
Bihar‟s per capita NSDP at current prices (US$)
CAGR
17.4%*
31.6% 22.9%
13.7% 20.2%
54.7% 57.0%
2004-05 2013-14
Primary Sector Secondary sector Tertiary sector
At US$ 34.8 billion, the tertiary sector contributed 57.0 per
cent to the GSDP (at current prices) in 2013-14, followed by
the primary sector, contributing US$ 14.0 billion (22.9 per
cent), and the secondary sector contributing US$ 12.3
billion (20.2 per cent).
Between 2004-05 and 2013-14, the secondary sector was
the fastest growing sector with a CAGR of 24.1 per cent,
followed by the tertiary sector, with a CAGR of 19.4 per
cent.
This growth has been supported by the manufacturing;
electricity, gas & water supply; construction and services
industries.
The primary sector expanded at a CAGR of 14.7 per cent
between 2004-05 and 2013-14. Source: CMIE
*CAGR calculated in Rupee terms
Percentage distribution of GSDP
CAGR*
14.7%
19.4%
24.1%
Source: Economic Survey of Bihar, 2013-14, Horticulture Database 2012-13
*Provisional Data
In 2012-13, Bihar‟s total food grain production was
estimated at 17.2 million tonnes.
Major crops produced in the state include sugarcane, rice,
wheat, maize and potato.
In 2012–13*, total production of sugarcane, rice and wheat
was estimated at 12.7 million tonnes, 8.1 million tonnes and
6.5 million tonnes, respectively.
Bihar is one of the leading producers of fruits and
vegetables in India.
In 2012-13, total production of fruits in Bihar was 4.2 million
tonnes and total production of major vegetables was 16.3
million tonnes.
Crop Annual production
2012-13 („000 tonnes)
Sugarcane* 12,741.4
Rice* 8,322.0
Wheat* 6,174.3
Maize* 2,756.0
Potato 6,640.6
Mango 1,363.8
Banana 1,702.4
Total pulses 542.7
Guava 259.5
Litchi 256.4
Pineapple 139.2
In 2013-14, total outstanding investments in Bihar were US$ 55.9 billion.
The electricity sector accounted for the largest share of outstanding investments at around 59.6 per cent, followed by the
services sector at 34.4 per cent and the irrigation sector at 3.1 per cent.
Between April 2008 and September 2013, 1,362 investment proposals with a total investment of more than US$ 56.54
billion were approved by the SIPB. Of the total proposals approved, 189 have started operation and the remaining are at
different stages of implementation.
In 2013-14 (until September 2013), SIPB had approved 255 proposals that are expected to strengthen the base of medium
scale industries in the state.
Break up of outstanding investments by sector (2013-14) Year No of proposals approved by SIPB
2008-09 173
2009-10 127
2010-11 161
2011-12 263
2012-13 417
2013-14* 255 59.6%
34.4%
3.1%
3.0%
Electricity
Services
Irrigation
Manufacturing &Real Estate
Source: CMIE, gov.bih.nic.in,
*Till September 2013,
SIPB - State Investment Promotion Board
Source: State Budget 2014-15, CMIE
Growth is calculated in Rupee terms
*Assumed exchange rate of 1 US$= 60.00 INR for 2014-15
Revenue &
expenditure
• For 2014-15, the government
presented tax surplus of US$ 19.5
billion, indicating Bihar‟s robust
financial condition.
• Revenue receipts are estimated to
increase by 27.3 per cent to US$ 17.0
billion, with Bihar‟s own tax revenue of
US$ 4.3 billion, up by 22.4 per cent
from the previous year.
• Budget size increased by 26.9 per
cent with a major portion of the
expenditure (~70 per cent) allocated
to development works such as
schools, roads, buildings, power,
health centres, and irrigation
schemes.
Education
• The education sector received the highest priority with a
planned outlay of US$ 2.0 billion or 21.4* per cent of the
state‟s total planned outlay.
• The state government plans to build 5,000 new primary
schools and 1,000 higher secondary schools.
• The government plans to add 599 new primary schools
under the Sarva Shiksha Abhiyan. The number of
community colleges is expected to increase to 20 from 15.
Agriculture &
infrastructure
• The planned outlay for the agriculture sector is US$
398.8 million, up 10.4 per cent from that for 2013-14.
• The state plans to construct 750 earthen dams and
352 check dams in flood prone areas.
• The estimated outlay for rural development is US$
1,082.1 million. The budgeted outlay for roads and
highways is US$ 1,698.5 million. The government
plans to construct 1,300 km of rural roads in 2014-15.
Health
• The Government of Bihar has
planned for considerable
expenditure in the health sector. For
2014-15, the expenditure for the
health sector is estimated at US$
404.2 million.
• Radiology and pathology services
would be introduced in every district.
Government hospitals across 36
districts would be provided with CT
scan services, while all government
hospitals are likely to begin offering
dialysis services.
Budget
2014-15
Bihar has 4,201 km of national highways and 4,483 km of
state highways. Besides, the state has 9,449 km long major
district roads.
The East-West corridor (a four-lane, high-speed corridor)
and the Golden Quadrilateral road pass through Bihar.
The state government aims to provide „best in the country‟
road infrastructure in Bihar by 2015.
According to State Plan – Road Construction Department,
the budgeted outlay for roads and highways is US$ 1654.9
million for 2014-15.
As of September 2013, the total road length in the state was
180,540.41 km as compared to 140,219.97 km in
September 2012.
Source: Economic Survey of Bihar, 2013-14,
Ministry of Road Transport & Highways.
*Includes „Other district roads‟
Type of road Length (km) as of
September 2013
National Highways 4,201
State Highways 4,483
Major district roads 9,449
Rural roads* 162,407
Source: Maps of India
Bihar had an extensive railway network of 5,400 km, as of
September 2013.
Hajipur in Bihar is the headquarter of the East-Central
Railway. The state‟s main railway junctions are at Patna,
Gaya, Muzaffarpur, Katihar and Samastipur.
In 2014, the central government approved two major
projects for Bihar, an electric locomotive factory at
Madhepura (estimated cost: US$ 214.6 million) and a diesel
locomotive factory at Marhaura in Saran district (estimated
cost: US$ 340.5 million) on a public-private partnership
(PPP) basis.
Several link-lines, such as Muzaffarpur-Samastipur-
Barauni-Katihar and Muzaffarpur-Chapra-Siwan, have been
converted to broad gauge from metre gauge.
The work on the railways wheel factory at Belapur in
Chhapra has been completed at an estimated cost of US$
258 million and awaits official inauguration. The trial
production was done in March 2012.
Source: http://indianrailways.gov.in, iindiatimes.com
Source: Maps of India
Bihar has one domestic airport in Patna and one
international airport in Bodh Gaya. Total number of
passengers handled at the domestic airport of Patna was
512,360, for 2013*.
Several domestic airlines connect Patna to Delhi, Kolkata,
Mumbai, Lucknow, Bengaluru, Hyderabad and Ranchi.
The airport in Bodh Gaya is used for international
connectivity with Bangkok (Thailand), Colombo (Sri Lanka),
Yangon (Myanmar), Dhaka (Bangladesh), Paro (Bhutan)
and Kuala Lumpur (Malaysia).
Source: Bihar Economic-Survey-2014
*Till September 2013
Source: Maps of India
Domestic airport
International airport
Airlines and number of flights (Patna Airport)
Airlines No of flights/day No of flights/day
2013-14* 2012-13
Indian Airlines/
Air India 5 3
Jet Airways 3 5
Air Deccan /
King Fisher - -
Go Air 3 3
IndiGo 6 5
Total 17 16
The 1,620 km stretch of the river Ganges that flows
between Allahabad in Uttar Pradesh and Haldia in West
Bengal has been declared „National Waterway 1‟, and is
being developed for navigation by the Inland Waterways
Authority of India.
Patna has a low-level fixed terminal on National Waterway-
1 for handling containers. The National Inland Navigation
Institute has been set up in Patna to train vessel crews.
It has been proposed that waterways should be used to
deliver coal to power plants located on the river-side.
The state government has requested the central
government for funding the approval of the scheme for
making rivers, such as Ganga, Gandak, Kosi, Sone and
others, navigable and connecting 2,000 panchayats with
waterways. Source: Maps of India
As of May 2014, Bihar had a total installed power
generation capacity of 2,198.3 MW, of which 1,874.1 MW
was owned by central utilities, 280.7 MW by state utilities
and 43.4 MW by the private sector.
Of the total installed power capacity, 1,954.7 MW came
from coal based power plants and 129.4 MW from
hydropower plants. Besides, 114.00 MW of installed power
generation capacity came from renewable sources.
The BSEB is a vertically integrated agency and is
responsible for generation, transmission and distribution of
electricity in Bihar.
As of March 2012, BSEB was serving around 3.94 million
consumers in the state.
The state run NTPC plans to set up a 1,320 MW power
project in Lakhisarai district of Bihar in a joint venture with a
private company and the state‟s power production company,
with an investment of US$ 1.5 billion.
Source: Central Electricity Authority, As of May 2014
Installed power capacity (MW)
BSEB - Bihar State Electricity Board
1,970.0
1,845.7
1,921.9
1,833.9 1,868.1
2,198.3
500
1,000
1,500
2,000
2,500
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Telecom infrastructure (May 2014)
Wireless subscribers^ 62,609,747
Wireline subscribers^ 381,183
Broadband subscribers 97,603*
Telephone exchanges 1,197*
Tele-density (per 100 population)^ 46.8
Public Call Offices 62,389*
Source: Telecom Regulatory Authority of India
Department of Telecommunications, Annual Report 2012-13,
Ministry of Communications & Information Technology
*As of December 2011, ^including Jharkhand
According to Telecom Regulatory Authority of India (TRAI),
Bihar had nearly 61.6 million^ wireless subscribers and
381,591 wire-line subscribers as of March 2014.
The tele-density in the state was 46.10 per cent as of March
2014.
The state had 9,064 post offices as of June 2014.
At 61.6 million, Bihar had the fifth largest wireless
subscriber base among all Indian states as of March 2014.
As of December 2011, the state had 62,389 public call
offices, 1,197 telephone exchanges and 97,603 broadband
subscribers.
Some of the major telecom operators in Bihar
Bharat Sanchar Nigam Limited (BSNL)
Bharti Airtel
Aircel Limited
Reliance Communications
Idea Cellular Services
Vodafone Essar
Tata Teleservices
Source: Telecom Regulatory Authority of India
Source: City Development Plans, JNNURM, Ministry of Urban Development, Government of India,
Urban Development and Housing Department, Government of Bihar, Bihar Economic Survey-2013
JNNURM - Jawaharlal Nehru National Urban Renewal Mission, LPCD: Litres per capita per day, MLD: Million litres per day, TPD:
Tonnes per day, DPR: Detailed Project Report
City Water supply Solid waste management Sewage
Patna
• The gross water supply in the city is
around 186 MLD, with about 91 LPCD.
• The public water supply system
comprises 98 tube wells.
• Solid-waste generated in the city is
680 TPD.
• About 65.0 per cent of the waste
generated is collected.
• The estimated sewage
generation in the city is 224.6
MLD.
• The city has a sewer length of
around 27.4 km.
Gaya
• Gross water supply in the city is 3.4
MLD.
• Piped water supply coverage is 35.0
per cent, whereas the remaining 65.0
per cent water supply comes from
hand pumps.
• Solid waste generated in the city is
17.7 TPD.
• About 60.0 per cent of the waste
generated is collected.
• The city generates about 6.3
MLD of waste water.
• A DPR of US$ 20 million has
been prepared under JNNURM
and is being implemented.
Under the JNNURM, eight projects costing US$ 155 million have been sanctioned for urban centres such as Patna and
Bodh Gaya. The key areas of development are solid-waste management system, water supply and sewage.
In 2011-12, the state had spent of US$ 41.4 million under state plan schemes for water supply and sanitation.
Project name Sector PPP type Project cost
(US$ million) Stage
Khagaria-Bakhtiarpur section Roads BOT 355.4 Under bidding
Bridge across river Ganga connecting
Bakhtiarpur - Shahpur Patori Roads BOT-Toll 313.3 Construction
Hajipur-Muzaffarpur Roads BOT-Annuity 196.0 Construction
Chappra-Hajipur Roads BOT-Annuity 171.0 Construction
Khagaria Purnea section Roads BOT -Annuity 138.5 Construction
Kosi Bridge Project Roads BOT-Annuity 90.9 Construction
Mokama-Munger Roads BOT-Annuity 74.3 Construction
Forbesganj-Jogbani Roads BOT-Annuity 15.6 Construction
Development of a new five star hotel at the site
of Hotel Kautilya Vihar at Patna Tourism DBFOT 14.4 Under bidding
Development of a four star hotel at the site of
Gautam Vihar at Rajgir Tourism DBFOT 6.2 Under bidding
Source: www.pppindiadatabase.com
BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer
Education infrastructure (2012)
• 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 61.8 per cent, as per the
provisional data of Census 2011. Male literacy rate is 71.2
per cent and female literacy rate is 51.5 per cent.
The total number of students enrolled in primary and upper
primary (up to class VIII) schools rose to 20.7 million in
2011-12 from 17.7 million in 2007-08, with an annual growth
rate of 5.0 per cent. Gender parity is progressing, with the
rate of enrolment of girls increasing at a faster rate than that
of the boys.
The state‟s budgeted expenditure on education has
increased from US$ 3 billion in 2013-14 to US$ 4.1 billion in
2014-15. The central government has provided US$ 303.7
million for setting up of six institutions similar to AIIMS, of
which, one is established in Patna, Bihar.
The prestigious IIT was established in Patna in August
2008. The institute offers B.Tech programmes in three
disciplines: Computer Science and Engineering, Electrical
Engineering, and Mechanical Engineering. PhD
programmes are offered in Engineering, Science and
Humanities and Social Sciences.
Source: Economic Survey of Bihar 2013-14, Medical Council of India,
University Grants Commission, Bihar Government Budget 2014-15
IIT - Indian Institute of Technology
Reputed technical institutes in Bihar
• Indian Institute of Technology, Patna
• National Institute of Technology, Patna
• National Institute of Fashion Technology, Patna
Reputed medical institutes in Bihar
• Indira Gandhi Institute of Medical Sciences, Patna
• Jawaharlal Nehru Medical College, Bhagalpur
• Patna Medical College, Patna
Health indicators (September 2013)
Persons served per doctor 25,641
Birth rate* 27.7^
Death rate* 6.6^
Infant mortality rate** 43^
Life expectancy at birth (years)
Male (2006-10) 65.5
Female (2006-10) 66.2
Source: Economic Survey of Bihar, 2013-14, Sample Registration System
(SRS) Bulletin 2012 (www.censusindia.gov.in), Planning Commission,
Government of India, *Per thousand persons, **Per thousand live births,
^SRS Bulletin – September 2013
As of 2013, Bihar had 11,559 health centres in various
categories, including 533 PHCs, 1,330 APHCs and 9,696
SCs.
As of 2013, there were 36 district hospitals, 71 referral
hospitals and 63 sub-divisional hospitals in the state.
On an average, the state has 112 health centres for a
population of one million.
In 2013-14, total budgeted expenditure for health services in
the state was US$ 556.9 million.
AIIMS Patna is one of the six AIIMS established in the
country under the PMSSY to provide sophisticated
healthcare services. There will be a medical college offering
undergraduate, postgraduate and doctoral courses.
Government initiatives in the health sector
• Increase in sanctioned manpower in departments
such as medical, public health and family welfare. • Higher level of personnel appointments and training. • Involving private sector in support services related to
cleaning, pathology and radiology. • Free drug distribution and indoor treatment.
PHC - Primary Health Centre; APHC - Additional Primary Health Centre;
SC - Sub-Centre; PMSSY - Pradhan Mantri Swasthya Suraksha Yojana
Major museums in Bihar
• Patna Museum, Patna
• Chandra Dhari Museum, Darbhanga
• Gaya Museum, Gaya
• Nardaha Museum, Nawada
• Bhagalpur Museum, Bhagalpur
• Maharaja Lakshmishwar Sing Museum, Darbhanga
• Sitaram Upadhyay Museum, Buxar
• Bihar Sharif Museum, Nalanda
• Chandra Sekhar Singh Museum, Jamui
• Ramchandra Shahi Museum, Muzaffarpur
• Jananayak Karpoori Thakur Memorial Museum,
Deshratna Marg, Patna
• Chapra Museum, Chapra
A new museum is scheduled to open in Patna in 2015. Built
on a 13-acre site, its development would be handled by the
UK based culture consultancy Lord Cultural Resources. The
estimated budget for this museum is US$ 80 million.
According to the „Sports Policy, 2007‟, the state government
is undertaking various initiatives to promote sports in the
state by augmenting sports infrastructure, providing
coaching facilities and supporting promising players.
An international conclave on „Experience Buddhism - In the
land of its origin‟ was organised in February 2010 to give a
major thrust to cultural tourism and explore the tourism
potential related to the Buddhist circuits in India, especially
Bihar.
The directorates under Youth, Art and Culture Department
are the Directorate of Museum, Directorate of Archaeology,
Directorate of Cultural Affairs and Directorate of Student
and Youth Welfare.
The autonomous bodies under Youth, Art and Culture
Department are Bihar State Sports Authority, Bihar Sangeet
Natak Academy and Bihar Lalit Kala Academy.
Sources: Youth, Art & Culture Department, Government of Bihar
www.biharfoundation.in
The BIADA is responsible for promoting and assisting rapid development of industries in the industrial areas and estates.
Operations of BIADA are divided into four regions – Patna, Muzaffarpur, Darbhanga, Bhagalpur – to facilitate quick services
to entrepreneurs.
As on 30 September 2013, BIADA acquired a total of 4,358 acres of land; of this, 3,624 acres (61 per cent) could be allotted
to industrial units. Of the four regions, BIADA acquired maximum land in Patna (2,660.53 acres).
Source: Economic Survey of Bihar, 2013-14
BIADA - Bihar Industrial Area Development Authority
Region Acquired land
(acre)
Land reserved for
infrastructure,
administrative block,
road etc. (acre)
Allotted land
(acre)
Total vacant
land (acre)
No of running
units
Patna 2,660.53 252.51 2,363.42 44.60 587
Bhagalpur 531.64 101.42 425.36 4.86 209
Darbhanga 417.05 76.67 313.31 27.07 134
Muzaffarpur 748.98 183.22 521.65 44.11 264
Manufacturing
Textile/sericulture
Sugarcane
Agro-based industries (except sugarcane)
Industrial clusters in Bihar Centres Industries
Patna
Major agricultural centre of trade, exporting grain,
sugarcane, sesame and medium-grained rice;
has also emerged as a manufacturing hub in
Bihar, with the highest number of industrial units.
Tirhut
Has the second-highest number of industrial units
in the state; food/beverage processing and
manufacturing units located here.
Muzaffarpur Important trade centre for cloth; famous for
exporting fruits, particularly mango and litchi.
Barauni
Has major industrial units including those of
Indian Oil Corporation; capacity of the existing
thermal power station has undergone major
renovation and modernisation.
Bhagalpur
Famous globally for tussar silk; trading of
agricultural produce and cloth is an important
economic activity; other major industries include
rice, sugar milling and wool weaving.
Gaya Major weaving centre; important tourist hub.
Darbhanga
Main industries are paper, sugar and handloom;
Darbhanga city is noted for its trade in fish,
mango and makhana.
Bihar‟s natural resources and policy incentives support the
agro-based sector. Agro-based industry and petroleum
products (primarily Barauni oil refinery) account for around
85.0 per cent of the state‟s total industrial output.
In 2012, the SIPB approved 12 large-scale units. Britannia
Industries, Ramco Industries and Hindustan Petroleum are
some of the promoters whose units were granted approval.
During 2012-13, four additional large-scale units were
approved by SIPB.
Medium and small scale industries, and micro and artisan
enterprises play a major role in terms of generating
employment. As on September 2013, Bihar had 194,953
permanent registered units with a total investment of US$
366.5 million, providing employment to 0.64 million workers.
In 2012-13, a total of 3,753 new units under the MSME
sector were registered.
A majority of the industries are located in Patna, Magadh,
Tirhut and Munger. Bhagalpur, Purnea and Darbhanga are
the other major industrial centres.
Key industries in Bihar
• Food and beverages
• Rubber and plastics
• Transport equipment
• Chemicals
• Tobacco
• Textiles
• Leather
• Paper, printing & publishing
• Mines & minerals
• Dairy
• Tea
• Sugar
• Tourism
• Health
SIPB - State Investment Promotion Board
Bihar is one of the largest producers of vegetables and fruits in the country, making it a suitable place for setting up units in
the food processing sector.
The state is one of the leading producers of fruits such as banana, mango, guava, litchi and vegetables such as onion,
tomato, potato and eggplant in the country.
In 2012-13, total fruit production in Bihar was 4.2 million tonnes and total production of major vegetables was 16.3 million
tonnes.
Food processing is a priority sector for the state government.
Up to 40.0 per cent of the project cost for setting up food processing units is subsidised by the state government.
A grant of up to 35 per cent of the project cost, subject to maximum of US$ 1 million, is provided in case of an
individual investor.
The government aims to establish two food parks in Muzaffarpur and Bhagalpur, which are expected to provide a major
impetus to the food processing industry. Under the mega food park scheme, one food park has been sanctioned at Buxar.
Besides food processing, the state government promotes cooperative marketing of milk and dairy products.
Source: Economic Survey of Bihar, 2013-14, National Horticulture Board
The Food Park scheme has been declared to be the most admired scheme by the Ministry of Food Processing Industry in
the history of food processing in India.
The Government of Bihar has approved 229 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: Economic Survey of Bihar, 2013-14
Key players in Bihar‟s food processing and dairy industry
Bihar State Cooperative
Milk Producer’s Federation
(COMPFED)
Usher Agro Ltd
• COMPFED is an organised milk processing cooperative which collects milk through district level
cooperative unions, and processes and markets the same.
• It 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 2012-13, COMPFED marketed an average of around 0.92 million litres of milk per day. It
markets its milk products under the „Sudha‟ brand, which is in great demand.
• In 2012, an additional 57 new milk producers‟ cooperative committees were formed by
COMFED. It also supplied solar plate systems to 50 such committees.
• The company plans to invest US$ 116.1 million in business expansion.
• Usher Agro Limited is one of the largest basic food grain (rice and wheat) processing
companies in India. The company established its rice processing mill in Buxar, Bihar in 2003.
• The company's principal products include rice, bran, wheat and husk. The products of the
company are sold under the „Rasoi Raja‟ brand name.
• In 2012-13, the company‟s revenue was US$ 175.2 million.
The major drivers of chemical, oil and gas industry in Bihar are proximity to sea ports (Kolkata and Haldia), availability of
labour and the vast market of eastern India.
Petroleum & allied sectors remain large contributors to Bihar‟s industrial value output as it has one of the largest public
sector refineries in the country under IOCL.
IOCL plans to augment the Paradip-Haldia-Barauni crude oil pipeline.
ONGC is carrying out exploration activities for petroleum and natural gas in an area of 2,537 sq km in Purnea basin. It also
expects oil reservoirs in Kishanganj and is likely to start drilling operations soon.
The permission for investigating natural gas and petroleum in 2,227 sq km of area in Betiah district has been accorded to the
Oil and Natural Gas Corporation and Petrodine.
Source: Economic Survey of Bihar, 2012-13
ONGC - Oil and Natural Gas Corporation Limited,
IOCL - Indian Oil Corporation Limited
Key players in Bihar‟s chemical, oil and gas industry
Indian Oil Corp Ltd (IOCL)
Graphite India Ltd (GIL)
• IOCL, a Fortune 500 company, is India‟s leading petroleum refinery. It has a refinery at Barauni,
with an annual capacity of 6 million metric tonnes.
• Secondary processing facilities, such as a resid-fluidised catalytic cracker, diesel hydro-treating
and a sulfur recovery unit, have been added to the main refinery.
• The 498-km long Haldia-Barauni Crude Oil Pipeline (HBCPL) receives crude oil at the Haldia oil
jetty and transports it to the Barauni refinery.
• GIL was incorporated in 1963. The company has eight plants located across India and produces
graphite products, coke and power.
• The coke division of the company at Barauni manufactures calcined petroleum coke (CPC) and
has an installed capacity of 30,000 tonnes per annum.
• In 2011–12, the company produced 26,885 tonnes of calcined petroleum coke in its Barauni
plant, surpassing installed capacity.
Krishi Rasayan Exports
Pvt Ltd (KREPL)
• KREPL is a flagship company of Krishi Rasayan Group. The company is one of the major agro-
chemical manufacturers, with five composite technical manufacturing units. Total revenue of the
Krishi Rasayan Group in 2011-12 was US$ 138 million.
• In 1973, the company set up a plant in Muzaffarpur, Bihar, with a capacity of 30 TPD dusting
powder formulations.
• The company operates a poultry feed unit in Muzaffarpur with a capacity of 150 tonnes per day
in pellet form.
The goals and actions points set up by the Bihar State Council under the Bihar@2022 vision document for improving the
education sector are as follows:
• Achieve near-zero dropout rate in secondary
education.
• Build a base of 12 million graduates and 10 million
certified technicians.
• Increase the capacity of higher education institutions
and vocational training institutions by 10 times.
• Increase focus on becoming an “education export
hub” of the region by attracting students from within
and outside India.
• Increase capacity of medical institutions.
• Create exclusive science parks for nanotechnology,
biotechnology and pharmaceuticals.
• Produce one Nobel laureate by 2022.
• Increase access to schools by establishing schools
within 1 km distance of every habitation.
• Enable access to schools regardless of the capacity
to pay.
• Fast tracking the upgradation of the state‟s school
infrastructure and ensuring availability of adequate
teachers.
• Launch awareness campaigns and policy initiatives
to ensure compulsory enrolment and zero dropout.
• Establish model centres of excellence in primary
education in rural areas.
• Improve hygiene in schools and colleges to curtail
dropout, especially of girl students.
Goals to achieve by 2022 Action points – School
• Ensure access to vocational training institutes to all;
replicate initiatives such as the “ICT academy” to
provide vocational training through e-learning.
• Plan curriculum in cooperation with industry to
ensure employability and minimise skill gap.
• Provide a boost to private training facilities to train
more nurses and paramedics.
• Provide short-term vocational courses with diploma
for special skills, such as plumbing and
housekeeping, to ensure that these skills can be
monetised.
• Quadruple the capacity and infrastructure of higher
institutions to accommodate the projected 3 million
students.
• Capacity of medical colleges needs to be
immediately tripled to ensure minimum provision of
quality healthcare to the state‟s population.
• Going by the current projection, the required capacity
would be four times the present capacity. Hence, to
meet the demand, the state should facilitate speedy
approval of medical colleges.
• Collaboration of educational institutions and industry
should be such that students remain updated with the
latest industrial processes and technologies, besides
ensuring their employability.
Action points – Vocational training Action points – Higher school
Under the state budget 2014-15, the total expenditure for developing the education sector in the state has been estimated at
US$ 4,119.2 million for 2014-15, 35.8 per cent higher than that in 2013-14 (US$ 3,032.6 million). The total amount includes US$
2,076.3 million for non-planned and US$ 2,042.9 million for planned expenditure.
The allocation of US$ 2,042.9 million for planned expenditure reflects an increase of 72 per cent over the allocation for
2012-13.
Under the state-sponsored scheme, the education sector got the highest priority with an allocation of 21.4 per cent of the
state‟s total planned outlay in 2014-15.
The central government has taken several other initiatives as well for the development of education sector:
Provision of US$ 303.7 million for setting up of six institutions similar to AIIMS across India of which, one is established in
Patna, Bihar.
The state government is taking steps to create Nalanda University in Rajgir, Bihar, with the first academic session set to
start from 2014.
Source: State Budget 2014-15
Sugar, the largest agro-based industry in the state, plays a prominent role in Bihar‟s economy.
The northern part of the state is climatically well suited for producing good quality sugarcane with minimum inputs as
compared to other states.
In 2012-13, about 237,600 hectares of land was under sugarcane production, and the production rose by more than 10 per
cent to over 5 million quintals during 2012-13 compared to 4.5 million quintals in 2011-12.
Sugar companies have made considerable investments for capacity expansion; consequently, their daily crushing capacity
has increased from 37,000 tonnes in 2005 to over 68,000 tonnes at present.
It is estimated that about 500,000 farmers are engaged in sugarcane cultivation and another 50,000 skilled and unskilled
labourers work in sugar mills.
The state government offers an incentive package to the sugar industry. The Sugarcane Institute in Pusa and Rajendra
Agricultural University are engaged in sugarcane-related research activities.
Source: Economic Survey of Bihar, 2013-14,
sugarcane.bih.nic.in
Key players in Bihar‟s sugar industry
K. K. Birla Group
Riga Sugar Co Ltd
• K K Birla Group‟s sugar company, Upper Ganges Sugar & Industries Limited (UGSIL), has two
units in Bihar: Bharat Sugar Mills at Sidhwalia [crushing capacity of 5,000 tonnes per day (TPD)]
and Hasanpur Sugar Mills at Hasanpur (crushing capacity of 3,000 TPD).
• The Sidhwalia unit has an 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 and the plant has a crushing
capacity of 5,000 tonnes per day. In 2012-13, the company‟s revenues were US$ 36.5 million.
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 2012-13, the company‟s revenues totalled US$ 24.2 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.
Apart from a few engineering units, prominent industries in Bihar are leather, textiles and handlooms.
The state has ample raw materials (hides and skin of livestock), technical skills (leather technology institutes) and
manpower, which are the major drivers of the leather industry.
Bihar has 85 leather units, 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 to total exports.
Bihar has a large number of handloom units in Bihar, of which 10,850 are under the cooperative sector and 25,503 are
outside. Besides these, the state has 11,361 power looms.
Between April 2008 and September 2013, 67 investment proposals in steel processing and cement sectors were approved
by the SIPB.
Key players in Bihar‟s manufacturing industry
Bata India Ltd
Bharat Wagon &
Engineering Co Ltd
• Promoted by the Toronto-based Bata Shoes, Bata is among India‟s largest manufacturers and
marketers of footwear products.
• The company has a tannery at Mokamehghat in Bihar and a leather footwear factory at
Bataganj in Patna.
• In 2013, the company generated US$ 353 million in revenues.
• The Bharat Wagon and Engineering Company is a part of Bharat Bhari Udyog Nigam, a
Government of India undertaking. It has over 50 years of experience in heavy-steel fabrication.
• It has two units at Mokama and Muzaffarpur, which are ISO 9001 certified for manufacturing
wagons; its third unit at Muzaffarpur manufactures gas cylinders. All three plants have captive-
power generation capacity.
Gangotri Iron & Steel
Co Ltd
• The company produces mild steel (MS) bars and billets.
• In 2010–11, the company produced 53,994 tonnes of MS bars and 41,482 tonnes of MS billets.
• In January 2009, the company set up a new unit in Bihta, Bihar. In 2010–11, the company had
an installed capacity of 145,000 tonnes of MS bars, 108,900 tonnes of MS billets and 540,000
cubic metres of oxygen gas.
• In 2012-13, the company generated US$ 16.0 million in revenues.
The state has a rich cultural heritage as it is associated with
pilgrimages and historical monuments related to religious
gurus such as the Buddha, Mahavir and Guru Gobind
Singh.
Tourism in the state revolves around Buddhism (Bodhgaya,
Rajgir, Nalanda), Jainism (Bisram, Mandar hill,
Champanagar) and Sufism. Some Sufi, Sikh and Jain
circuits are planned to be developed during the 12th Five-
Year Plan.
A fortnight-long Pitripaksha mela, held every year at Gaya,
attracts large number of tourists from all over the country, as
well as from foreign countries.
Monuments of historical and religious significance present
tremendous potential for attracting both domestic and
foreign tourists.
The state‟s tourism policy stresses on developing
infrastructure and financing for tourism.
The Bihar government is preparing a 20-year master plan
for promoting and developing tourism in the state.
Source: Maps of India
The state government has established the Bihar State
Tourism Development Corporation with the prime objective
of developing hotels, transports, railways, swimming pools,
health tourism, etc. and running them on a commercial
basis for the benefit of tourists. Other initiatives taken up are
as follows: Bihar Paryatan Neeti (formulated), Paryatan
Suraksha Bal (sanctioned), 48-seater AC floating
Restaurant on the river Ganga, Buddha Smriti Park in
Patna, etc.
The government has planned two mega religious tourism
circuits (Buddhism & Jainism), two mega theme parks
based on the life of Buddha and Mahavir (to be constructed
at Bodh Gaya and Rajgir) and eight mega centres for
educational, cultural and religious tourism [Bodh Gaya,
Rajgir, Patna city, Vaishali, Nalanda, Vikramasila, Ashok
Dham, Yoga Sansthan (Munger)].
Eighteen projects were sanctioned for the state by the
Ministry of Tourism during the 11th Five-Year Plan period
(2007-12, up to March 2011), at a project outlay of US$ 12.6
million. From January-August 2013, the total number of
tourist arrivals in the state was around 7.3 million.
Arrival of domestic tourists in Bihar (in million)
Arrival of foreign tourists in Bihar (in „000s)
Source: Ministry of Tourism, Government of India, Economic Survey of Bihar, 2013-14
*From January 2013 to August 2013
15.8 15.8 17.5
21.4
6.8
2009 2010 2011 2012 2013*
472 491
795
1096
457
2009 2010 2011 2012 2013*
The Bihar government has made considerable investments
in the health sector:
Mobile medical unit service launched in 24 districts,
and work under process in the remaining 14 districts.
PHCs established in all 534 blocks.
„Muskaan Ek Abhiyan‟ started for universal
immunisation.
Established Dial „1911‟ (toll free) for medical
consultation and grievance re-addressable system.
Established Bihar Medical Services and
Infrastructure Corporation.
A special patient welfare committee has been set up
in each district to look after the welfare of poor
patients.
Untied fund availability has been provided for
infrastructure development at all levels, including
district hospitals, sub-divisional hospitals, PHCs and
SHCs.
Collaboration with building construction department.
Three new medical colleges to be established at
Nalanda, W. Champaran and Madhepura.
Funds allocated for the health sector in Bihar as
per Budget 2013-14 (US$ million)
427
75
116
Non plan
Core plan scheme
State plan scheme
The goals and actions points set up by the Bihar State Council under the Bihar@2022 vision document for improving the
heath sector are as follows:
• Increase the number of hospitals; beds per thousand
population to be increased from the current 0.25 to 4
beds per thousand population, which includes the
addition of 3,01,084 beds.
• Increase the number of doctors per thousand
population from 0.40 to 3.
• Provide a thrust to health insurance.
• Increase the number of medical colleges by four
times.
• Establish super-specialty hospitals under public-
private partnership at eight district headquarters.
• Build medical institutions and set up institutes in each
district to train nurses, technicians and paramedics to
serve the ageing population.
• Increase spending on healthcare to US$ 1,600
million from the present level of US$ 300 million.
• Build awareness regarding preventive medicines
through mass media and with the assistance of
healthcare professionals and non-governmental
organisations.
• Outsource medical services.
• Increase the use of technologies to achieve
increased productivity.
• Increase focus on medical research to incorporate
nanotechnology and biotechnology in providing
medical services.
Goals to achieve by 2022 Action points
Key players in Bihar‟s healthcare industry
AIIMS Patna
PMCH
• The hospital services of the All India Institute of Medical Sciences, Patna (AIIMS-P) was
established in the state.
• The hospital provides full-fledged emergency services to handle serious injury cases and
patients suffering from heart ailments and brain stroke.
• Patna Medical College and Hospital (PMCH) was established in 1925 as the Prince of Wales
Medical College. It is located in Ashok Rajpath.
• The hospital has 1,760 beds. It is the biggest hospital in Bihar.
Bihar Single Window Clearance Act, 2006, and the Bihar Industrial Incentive Policy, 2011, promote industrial growth by
giving rapid clearances, issuing licenses and certificates, and providing an overall investor-friendly environment in the state.
The industries department of the state and the DIC act as nodal agencies for investments.
Proposals for investments greater than US$ 21.7 million are routed through the Chief Minister and the cabinet for approval.
Investment handled Body Chairman Nodal agency
US$ 2.17 million to
US$ 21.7 million
State-Level Investment
Promotion Board
Industries Development
Commissioner
Industries
Development (Udyog
Mitra)
Below US$ 2.17 million District-Level Committee District Collector DIC
DIC - District Industries Centre
Agency Description Contact information
Industries
Department,
Government of
Bihar
• It is the state-level nodal body under the single-window regime for investments of above US$ 2.17 million.
• Its primary functions involve coordinating applications from investors, processing applications, and facilitating the process of obtaining clearances from various departments.
• The department, headed by the Principal Secretary, supervises District Industry Centres (DIC), industrial area development authorities and industrial premises in the state.
Vikas Bhawan Bailey Road,
Patna - 800 001, Bihar. Phone: 91-612-2215 211
Fax: 91-612-2217 991 Website:
http://industries.bih.nic.in/
District Industry
Centre (DIC)
• This is the district-level nodal agency for investments below US$ 2.17 million.
• DIC supports entrepreneurs in identifying local resources, supply of raw materials and equipment, arrangement of credit facilities, marketing, quality control, etc.
District Industries Centre, Patna
Phone - 0612-2270865 Fax: 0612-2218900
Bihar Industrial
Area Development
Authority (BIADA)
• It was constituted with a mission to promote industrialisation and create awareness about the state‟s Industrial Policy. It supports entrepreneurs in setting up industries and availing incentives offered by the state government.
• The organisation runs under the guidelines and policies of the Board of Directors, having directors nominated by the State Government under the chairmanship of the principal secretary, Department of Industries, Government of Bihar.
1st Floor, Udyog Bhawan, East Gandhi Maidan,
Patna - 800 004, Bihar Phone: 91-612-2675 991,
2675 002, 2675 352 Fax: 91-612-2675 889
E-mail: [email protected],
Website: http:///www.biadabihar.in/
Agency Description Contact information
Bihar State
Finance
Corporation
• It is the main state-level institution that provides term lending facilities to industrial entrepreneurs.
• The corporation has entered into an agreement with Small Industries Development Bank of India (SIDBI), under which joint financing will be done by SIDBI and BSFC in the proportion of 90:10. Under this scheme, a minimum of US$ 0.3 million loan can be provided to one unit.
Fraser Road, Patna - 800 001, Bihar
Phone: 91-612-2332 785 E-mail:
[email protected] Website:
http://bsfc.bih.nic.in/
Bihar State
Electricity Board
(BSEB)
• The board is responsible for the synchronised development of generation, transmission and distribution of power in the state.
Vidyut Bhawan, Bailey Road,
Patna - 800 001, Bihar. Phone: 91-0612-2504 036
Fax: 91-0612-2504 968 Website:
http://bseb.bih.nic.in/
Bihar State
Pollution Control
Board
• The purpose of the organisation is prevention and control of pollution through inspection of treatment plants, standards application, research and development activities, etc.
• Headquartered at Patna, the organisation has seven zonal offices.
Beltron Bhawan, Shastri Nagar
Jawahar Lal Nehru Marg, Patna - 800 023, Bihar
Phone: 91-0612-2281 250 Fax: 91-0612-2281 050 Email: [email protected],
Website: http://bspcb.bih.nic.in/
Approvals and clearances required Departments to be consulted Estimated time
Incorporation of company Registrar of Companies NA
Registration, Industrial Entrepreneurs
Memorandum (IEM), Industrial Licenses Nodal Agency (Industries Department) NA
Allotment of land Bihar Industrial Area Development Authority
Seven to 21 days (up to 90
days for acquisition of non-
industrial land)
Permission for land use Revenue and Land Reforms Department,
Government of Bihar
30 days (45 days for
conversion of non-industrial
land for use)
Registration under Factories Act and
Boilers Act
Offices of Inspector of Factories, Inspector of
Boilers Up to 120 days
Site environmental approval, no objection
certificate and consent under Water and
Pollution Control Acts
Bihar State Pollution Control Board and
Ministry of Environment and Forests,
Government of Bihar
60 days
NA: Not Available
Approvals and clearances required Departments to be consulted Estimated time
Approval of construction activity and
building plan
Urban Development and Housing
Department, Government of Bihar Seven days
Sanction of power Bihar State Electricity Board Up to 30 days
Sanction of water Water Resources Department, Government
of Bihar Up to 30 days
Fire service clearance State Fire Service Headquarters,
Government of Bihar Up to 15 days
Registration under state‟s Sales Tax Act,
and Central and State Excise Act
Sales Tax Department, Central and State
Excise Departments Seven days
Cost parameter Cost estimate Source
Industrial land (per acre) US$ 384,136 in Patliputra,
US$ 84,054 in Muzaffarpur
Bihar Industrial Area Development
Authority
Labour (minimum wages per day) US$ 2.2 to US$ 3.4 Ministry 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 11.1 cents
Commercial: US 9.8 cents to US 11.2 cents Bihar State Electricity Board
Bihar Industrial Incentive Policy – 2011
• To promote balanced industrial development and enable industries to contribute towards the
social and economic development of the state. Read more
Objective
Bihar State Hydro-Power Policy – 2012
• To enhance the overall generation capacity of the state, including hydro power.
• To obtain optimal thermal-hydro generation mix in a 60:40 ratio.
• To encourage participation of independent power producers by offering them the best policy
framework and support. Read more
Objectives
Bihar Policy for Promotion of New and Renewable Energy Sources 2011
• To develop all forms of new and renewable energy sources, including biomass- and biogas-
based projects, cogeneration projects, mini/micro/small hydro projects (up to 25 MW), wind
power projects, solar projects, municipal solid waste-based projects, and other renewable
resources-based projects. Read more
Objective
Food Processing Policy
• To address the infrastructure, technology, skills, and marketing constraints being faced by the
food processing units for rice, maize, pulses, honey, makhana, fruits and vegetables, and others
by facilitating the setting up of new food processing units.
• To aid the expansion and upgradation of the existing units. Read more
Objective
Information and Communication Technology Policy 2011
• To create world-class IT infrastructure in the state.
• To promote investment in the IT/ITeS/electronic hardware manufacturing (EHM) units by private
industry to accelerate the pace of IT enablement in the state. Read more
Objectives
Sugar Incentive Package
• To serve the sugar industry by building on the factor advantages of the state.
Read more
Objective
Investment subsidies for NRIs
• The state government has offered incentive packages in the form of various tax concessions, capital and interest
subsidies, reduced power tariffs, etc. to attract foreign funds in the region.
Incentives for NRIs
• Bihar Foundation organized a two-day global meet of Non-Resident Biharis on 18–19 February 2012 with an aim to
attract NRBs from across the world so that they can share their views on the state and its development. NRIs from Bihar
who have been successful in their respective fields were invited to the event to share their experiences.
Availability of finance for NRIs
• The government is taking steps to provide adequate facilities to enable NRIs to start small scale industries in the state.
Incentives for new investments in plant and machinery
• Companies investing US$ 18.7 million or more in plant and machinery during the period from 1 April 2013 to 31 March
2015 would be entitled to deduct an investment allowance of 15 per cent of the investment.
• Incentives to semiconductor wafer fabrication manufacturing facilities including zero customs duty for plant and
machinery.
Incentives for waste to energy projects
• The Government would provide low interest-bearing fund from the National Clean Energy Fund to IREDA to lend to
viable renewable energy projects. „Generation-based incentive‟ has been reintroduced for wind energy projects and a
sum of US$ 150 million has been allocated for this purpose.
Average exchange rates
Year INR equivalent of one US$
2004-05 44.81
2005-06 44.14
2006-07 45.14
2007-08 40.27
2008-09 46.14
2009-10 47.42
2010-11 45.62
2011-12 46.88
2012-13 54.31
2013-14 60.28
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presentation to ensure that the information is accurate to the best of Aranca and IBEF‟s knowledge and belief, the
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