RESOURCE MAPPING OF BIHAR STRATEGIC ACTION PLAN FOR...

RESOURCE MAPPING OF BIHAR &

STRATEGIC ACTION PLAN FOR DEVELOPMENT

Prepared jointly By :

Gherzi Eastern Ltd.

&

Genesis Fintec Ltd.

RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTT

Gherzi Gherzi -- GenesisGenesis

Background & Objectives

Flowchart of overall Strategy

- Facilitating Business & related Infrastructure

- Strengthening & Installing support systems

A. Facilitating Business & related Infrastructure

1. Potential industry identified

2. Sub Sector /Industry wise info

3. Summary of parks & RBHs

B. Strengthening & Installing support systems

- Core Infrastructure Development

- Financial inflows

- Research & Capacity Building

- Policy Initiatives suggested

- Project Implementation mechanism

Summary

Strategic SolutionIII

Business ModelsIV

Current SituationII

Map I

IndexIndex



Sectoral Composition of GSDP

48.78 40.85 42.00

9.9212.08 9.02

41.29 47.06 48.98

0%

20%

40%

60%

80%

100%

1993-94 1999-2000 2004-05

TertiarySecondaryPrimary

Over the decade, the share of secondary sector has remained at a level of 9%

Construction activities now form a larger share of secondary activities

Negative growth rate in manufacturing

The increase in tertiary sector share shows a process of tertiarization much before a process of industrialization

Background & rationale of studyBackground & rationale of study

A comprehensive development strategy for the development of Bihar was called for,with a ‘multidimensional approach across sectors’



Objectives of the studyObjectives of the study

The major challenges to be addressed through this study are to:

Provide Linkage for Farm & Non-farm produce with industry / business

Add Value to the primary produce within the state

So that rural masses & artisans are economically empowered

So that the secondary sector grows and the

economy of the state develops

Identify major resources & bring

in anchor industries as prime

movers

Create a higher no. of smaller oases (RBH) to facilitate linkages into the

rural hinterland (RBH - PPPP model)

Create a few oases of competence / Parks as Hubs (PPP

model)



Flow of Overall StrategyFlow of Overall Strategy Facilitating Set up of business & related infrastructure

Creation of core

Infrastructure

Enable & facilitate

Research

Strengthen Institutions & Resources (Public sector & PPP model)

Credit flow into identified sectors

Capacity building

Project implementation

mechanism

Pragmatic Policy

Install



Flow of Overall StrategyFlow of Overall Strategy Strengthening & Installing Support Systems



Facilitating Business & Related

Infrastructure

Potential Industry Identified

Sub Sector / Industry Wise Information

Summary of Parks & RBHs

Fruits & VegetablesCereals & PulsesSpicesPotatoMakhana

Herbal & medicinal Plants

Jute

Sugarcane

RESOURCE GROUPRESOURCE GROUP ACTIVITY & SPECIFIC ACTIVITY & SPECIFIC RESOURCESRESOURCES

INDUSTRY SEGMENT FOR INDUSTRY SEGMENT FOR RESOURCE UTILIZATION/ RESOURCE UTILIZATION/ REVITALISATION REVITALISATION

Milch Cattle & Dairy Farming activity

Bees & Orchards, Apiary activity


Water bodies / rivers & fishery skills


Agriculture & Horticulture

Agro & Food Processing Industry

Herbal Medicine & Aromatic Industry

Jute Industry

Sugar Industry

Animal Husbandry & Allied Sector

Milk Processing

Honey

Fisheries

Poultry Farming & Animals Rearing

Animal Hides

Poultry & Meat Processing

Leather

Potential IndustryPotential Industry IdentifiedIdentified




Gherzi Gherzi -- GenesiscGenesisc

Handicraft Skills

Handloom Weavers & Looms

Limestone

Steel scrap, Sponge Iron, Ingots & Millets

Handicrafts

Handlooms

Handicrafts

Handlooms

Minerals Cement Industry

Steel Mini Steel, Secondary Steel & Castings


Quartzite & Granite Glass & Ceramic Industry

Ethanol & CoalChemical Chemical & Allied Industry




Gherzi Gherzi -- GenesiscGenesisc

Places of Heritage, Culture, & Religious interests

Tourism Hospitality & Tourism Industry


Local WorkforceEducation & Training ITI, IT, ITES, Hotel Management, Nursingm

Training Centre



SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesAgriculture Agriculture & Horticulture& Horticulture


RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTTSubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesAgriculture Agriculture

& Horticulture& Horticulture



SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesAgriculture Agriculture & Horticulture& Horticulture



SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing Proposed Food ParksAgriculture Agriculture & Horticulture& Horticulture



Food Parks under PPP Model are suggested at Hajipur (Vaishali), Purnea, Bihta (Patna) and Begusarai

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info.

Market led business Model tackling the challenges of: - Weak supply chain- Exploitative intermediaries- Low price to farmers - Delay in price recovery- Capacity building of producers/ farmers

Food Park (under PPP model) as common platform linking primary sector with secondary sector in identified zones

RBH – the collection point, to play the role of nodal points in backward linkages

95 mandis under the erstwhile Bazar Samities are proposed to be converted into RBH (under PPPP Model)

Create information display through IT & competition amongst buyers to ensure that exploitation does not occur

Deviation from previous model

Extension activity not left to

Government Agencies alone

Dominated by Rice, Dal & Oil

Commercial processing of fruit & vegetables is less than 1.0% volume terms

Small bakeries & confectionary units in the un-organised sector scattered in the state

Degree of Makhana processing is very limited

Low value addition

Old technology – not efficient in terms of recovery/ extraction and energy conservation

Lack of: Infrastructure, credit flow & marketing efficiency of Small enterprises

Current situation Strategic solution

Agriculture Agriculture & Horticulture& Horticulture

Current Situation/ Strategic Solution



Farmers under various blocks / villages acting

as SHGs or Co-operatives

FOOD PARK & TERMINAL MARKET(PPP model)PROCESS INDUSTRY 1PROCESS INDUSTRY 2PROCESS INDUSTRY 3

Need based Infrastructure

Procurement areaPre cooling

Grading & sortingStorage

RBH 1

RBH 2

RBH 3

Under PPPP model at Intermediate Panchayat

level

MARKETS

RETAIL CHAINS

MARKETS

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Agriculture Agriculture & Horticulture& Horticulture

Proposed Supply Chain



SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Agriculture Agriculture & Horticulture& Horticulture

Business Models

100%45043Institution & Cap. Building, Project Implementation

242701022.55Identified ClustersAgri-based units & Infrastructure Components

25%

5280279Identified ClustersF&V based units & Infrastructure Components

35600

5000

200

400

Employment Potential

500As per designated location

Rural Business Hubs with customized Common Facility Centres

2044.55Total

80Bihta (Patna), Begusarai

Food Park (Agri based)50%

120Hajipur (Vaishali), Purnea(Purnea),

Food Park & Terminal Market (F&V based)

Grants/ Subsidy Proposed

Investment Potential (Rs. Crs)

Locations recommended for prospective units

Business Model



SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesJuteJute



RBHs earmarked for agri products suggested for procurement of Jute also1 Integrated Jute Park suggested at Purnea with backward linkage

Current situation

Availability of raw jute: 2 lac MT/annum; Bihar 2nd largest producer

Jute cultivators sell to Agents/ JCI for minimumPrice who in turn supply to jute mills of Bengal

Strategic solution

Set up an Integrated Jute Park at Katihar

Mills Procure raw jute through RBHs (using existing agricultural mandis in nearby districts) Enabling Farmers get remunerative prices & choices

Yet Bihar acts only as raw material supplier;No value addition in the state

5350165Jute Park at Purnea

Jute Mills & Processing units& Jute diversified products

954.25Capacity building & Project Implementation

10020KatiharIntegrated Jute Park

5545

Employment potential

189.25Total

Investment potential (Rs Cr)

Location Business Models

Encourage Jute Mills & processing units for manufacture & value addition

Sub Sectors / Industry Wise Info.Sub Sectors / Industry Wise Info. Current Situation/ Strategic Solution/ Business Model JuteJute


RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTTSubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesSugarcaneSugarcane



Current situation

Locations for new factories already identified

Strategic Solution

Priority to unlocking the assets of closed mills

Suggestions of committee to be implemented

30000




6750Sugarcane processing (Sugar, Ethanol, Bagassebased paper, co-generation of power)

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Current situation/ Strategic solution/ Business ModelsSugarcaneSugarcane

Special cell to monitor laying of transmission lines from factory to Grid



SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing concentration zones & proposed plantsDairyDairy



Current situation

50 lac MT of raw milk produced in Bihar annually, of which only 5% is processed

Strategic solution – PULL mechanism required

Invite SME for milk processing independently, or as JV/ Franchisee of COMPFED/ Branded Players

452.25Barauni, Biharsharif, Bhagalpur Cattle Feed

903Muzaffarpur, Barauni, Gaya Ice Cream Plant (3 Nos)

301.5KhagariaMilk Powder Plant (1 No.)

45045Gaya, Gopalganj, Motihari, Muzaffarpur, Saharsa, Bhagalpur, Aurangabad, Purnia, Darbhanga

Milk Processing Units (9 Nos.)

601.05Muzaffarpur, Saharsa, Bhagalpur Cattle Breeding Farm

1201.2AI services

2254.5Comm. Dairy Farms

1310

170

120


0.80Capacity Building



63.8Total

4.530 designated milk-shed Districts Bulk Coolers

Limited storage, transportation & processing infrastructure

Involve farmers/ SHGs/ local entrepreneurs at Village/ Block level for bulk cooling & transportation facilities

Set up Commercial Dairy Farms; Mobile Vet/ AIServices at farm gate to improve animal health; More Cattle Breeding Farms to increase productivity

Low productivity due to indigenous cattle, though population 1.62 crores

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Current Situation/ Strategic Solution/ Business ModelsDairyDairy



SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesHoneyHoney


RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTTSubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info.

RBHs earmarked for agri products to be used for Honey as wellProcessing Units for Honey are suggested at Hajipur & Begusarai Food Parks

Current situation

80% of honey processed outside the state – only 3 process plants exist in state

Only state producing litchi honey on commercial scale

Strategic solution

Potential of about 40,000 MT (RAU estimate)

There are four to five honey flows in Bihar

3608.32Food Park at Hajipur & BegusaraiProcessing Units

26643.31Fruit producing districtsCommercial farming & Extension Activity

1002.20Capacity Building & project Implementation

3124


13.83TOTAL

Investment Potential (Rs Crs)


Rural Business Hubs of Agro-Sector to be used for market linkages for Honey Processing Units

Processing Units in Food Parks to create market pull

Current Situation/ Strategic Solution/ Business ModelsHoneyHoney


RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTTSubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesFisheriesFisheries



Current situation

Untapped resources:-1.38 lac hectares of water bodies- 2700 kms of seven major rivers

Strategic solution

2 Aqua Parks suggested at Muzaffarpur & Bhagalpur.

38 RBHs suggested so that fishermen get better selling options & better price

Culture fisheries to be developed

Fish seed production only 347 million against demand of 600 M (Only 26 hatcheries exist)

Only 20% of the area is under scientific culture.

Separate Directorate of Fisheries needs to be created.

18012Integrated Fish Processing Units

3659.8 Cold Storage, Ice Factories, Units for Boats & Gears

25029.5Capacity Building & Project Impl.

70760543Fish Seed, Nurseries, Hatcheries, Commercial & Aquaculture Fish Farming

160038E&W Champaharan, Muzaffarpur, Darbhanga, Saran, Vaishali, Sitamarhi, Gopalganj, Buxar, Bhojpur, Nalanda, Purnea, Madhubani,Saharsa, Nalanda, Munger, Bhagalpur, Banka, Katihar & Khagaria RBHs

Rural Business Hub

73355

200


Investment potential (Rs. Crs)


642.3Total

10Muzaffarpur & BhagalpurAqua Park

Current Situation/ Strategic Solution/ Business ModelsFisheriesFisheries


RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTTSubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing concentration zonesPoultry & Poultry &

Meat ProcessingMeat Processing




Current situation

Bihar ranks fourth in terms of meat production

Strategic solution

8008.00Muzaffarpur, Saran, West Champaran, East Champaran, Nalanda, Patna, Rohtas, Kaimur, Arwal, Jehanabad, Bhagalpur, Banka, Katihar, Kishanganj, Supaul, Purnea,

RBH

50025.00Patna, Muzaffarpur, Bhagalpur, Kishanganj, Fatuah

Processing

201.50Muzaffarpur & BhagalpurInfrastructure components

5944 21.36Commercial Poultry Farms, Broiler Units, Hatcheries, Poultry Feed Plant , Fodder Units & Extension activity

7514

250


10.30 Capacity Building & Project Impl.

Investment potential (Rs. Cr)


66.16Total

Annually 0.7 to 1 million small and large animals& birds are slaughtered in Municipal Slaughter houses

Promote Commercial Poultry & Livestock Farming

Facilitate the market linkages through RBH

No modern abattoirs and processing facilities Ensure Up gradation of Municipal Slaughter Houses

Rural Business Hubs suggested so that poultry farmers / animal rearers get better selling options & price

Current situation/ Strategic solution/ Business Models

Poultry & Poultry & Meat ProcessingMeat Processing


RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTTSubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesLeatherLeather



Leather Parks under PPP Model are suggested at Muzaffarpur & Katihar

Current situation

Availability of raw hides: 36 lakh pieces

Only few private units for Primary processing at Muzaffarpur: raw to wet blue stage

No secondary processing. Wet blue leather is sent to Kolkata, Kanpur & Chennai for final processing

Strategic solution

Set up leather park at Muzaffarpur and Katihar

Local units will get finished leather from thetanneries

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Current situation/ Strategic solution/ Business ModelsLeatherLeather

5004.5Capacity building & Project Implementation

8005Bihta (Patna), Betiah, Muzaffarpur, Baruini, Siwan

Revival of Processing plant and Tanning units

7600329.5Total

5800120Tanneries & processing units

500200MuzaffarpurKatihar

Small Integrated Leather Parks

Employment Potential

Investment Potential

LocationBusiness Models


RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTTSubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesHandicraftsHandicrafts



Create marketing outfit for ‘bihar‘ brand of handicrafts

Current situation

Total revenue of Rs. 150 crore per annum.

Huge Export Potential for:- Madhubani painting- Sikki Grass- Khatwa- Sujni Kantha

Strategic solution

Set up 21 RBHs for linkages with marketing outfitsMore than 2 lakhs artisans employed

20020Major cities & towns of Bihar and IndiaRetail marketing outfit (2 Nos.)

6008.25Capacity building & Project implementation

2105.25Muzaffarpur, East Champaran, Darbhanga,, Madhubani, Samastipur, Sitamarhi, Saran, Patna, Bhojpur, Vaishali, Aurangabad, Gaya, Nawada, Nalanda, Katihar, Kishanganj, Munger

Rural Business Hubs (21Nos.)

1010


33.50TOTAL

Investment Potential (Rs Crs)


Set up marketing organization to promote Brand ‘BIHAR’on JV basis with Private party / NGO (PPP model)

Facilitate use of ‘CRAFTSMARK’

GI Registrations of handicrafts which are unique (Madhubani Painting , Sikki Grass, Khatwa)

No brand nor organised marketing

Current situation/ Strategic solution/ Business modelHandicraftsHandicrafts


RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTTSubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesHandloomsHandlooms



Current situation

40000 handlooms and 90000 skilled weavers (approx); weavers shifting to other Profession; the weavers are unable to keep pace with changes in the market

No Design, Dyeing, Printing & Quality testing facilities in the clusters / located far beyond the reach of the weavers

Strategic solution

Cluster based CFC to be developed by involving NGOs, for easy accessibility

Thus proper market linkage, financial assistanceand access to all facilities under one roof will lead to increased production

200025Biharsarief, Darbhanga, Bhagalpur, Pandaul, Siwan

Revive Central Processing Plant, Finishing Plant, Dyeing & Cooperative Spinning Mills

2600

200

400


3.60Capacity Building & project Implementation



40.60Total

12Bhagalpur, Gaya, Banka, Madhubani, Nalanda

Common Facility Centre with market Hub

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info.

Weavers have been reduced to job workers due to lack of finance & direct market linkage

Current situation/ Strategic solution/ Business ModelsHandloomsHandlooms



Current situation

Limestone deposit: 211 million MT

Currently mining is not possible due to environmental regulations

Strategic Solution

Grant Mining Leases, prospecting licenses and mineral concession

Set up Industrial units near the mine areas or in areas easily connected by roadways

1000




1500Kaimur (Rohtas)Integrated Cement plant

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Current situation/ Strategic solution/ Business ModelsCement Cement



Current situation

Quartzite deposit: 203.30 million tonnes

Primarily small and medium scale sector glass Industries

Strategic Solution

Clearances need to be obtained

Integrated cement plant of 4 Million Ton capacity feasible

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Current situation/ Strategic solution/ Business ModelsRealty, Glass Realty, Glass & Ceramic & Ceramic

Granite deposit: 32.04 Mn.CU.M

Lack of knowledge about the modern glass and ceramic technology

287550Total

75015Glass Unit

112515Munger Jamui, Gaya

Ceramic Unit

1000




20Banka, Jamui, Gaya

Granite cutting, polishing and slab / tile making units



Current situation

Bihar is a net steel importer

Currently construction steel units are operating mainly around Patna

Raw material (coal & iron ore) for DRI/Sponge iron plants accessible from Jharkhand/ Orissa/ Chattisgarh/ WB

Strategic Solution

Target regional demands in Infrastructure projects

Competitive advantage of skilled pool of human resource

Thrust on mild steel ingots through induction furnace route

Prioritize production of long products with continuous casting facilities

Linkage with the miners on long term basis

260250Mini Integrated Steel Plant (1 No.)

4900748.5Total

1200140Mini Steel Plant (4 No.)

12012Ferro Alloy Unit (2 Nos.)

20020Patna areaSponge Iron (DRI) (2 Nos.)

1420126.5Patna, Vaishali, Muzaffarpur area

Castings (6), Foundry (25) & Forging unit (2)

1550

150


180Others (Wire Drawing, Rolling Mill, Wagon Making, Refractories)



20DalkholaPig Iron with Mini Blast Furnace route (1 No.)

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Current situation/ Strategic solution/ Business ModelsSteelSteel



Current situation

Direct Access to rich deposit of non-coking coal

Concentration of polymer & elastomer based chemical industry in Begusarai

Strategic Solution

Preference to be given to Agro-based and coal based chemicals

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Current situation/ Strategic solution/ Business ModelsChemical & Chemical & AlliedAllied

30 big and medium scale industry are present

25030Project with Ethanol as feedstock

118076

Chemical Hub at Barauni

Pigments, Zinc Oxide and Emulsion & PaintsLubricant manufacturing UnitHeavy & Hazardous Chemicals

3000323.90Total

65042.60Health Care & PharmaceuticalsOrganic Chemicals

20020Sodium Hydroxide Processing Project with technology options (Mercury Cell Process, Membrane Process)

720




155On NH-98 near Jharkhand Bihar border

Coal Based Chemical (Syngas, Methane Gas, Coal Based Tar)



Current situation

Population 828 Lacs

591 Degree Colleges 5 Engineering Colleges 8 medical Colleges 3 Krishi Vidyalaya

Strategic Solution

Linking Institutions with Industry

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Current situation/ Strategic solution/ Business ModelsEducation & Education & TrainingTraining

Literacy Rate 47.53%

Patna, Darbhanga, Saran, Madhubani, Samastipur, West Champaran, Gaya, Katihar, Muzaffarpur,

505.5Training centres for para-medics, nursing & midwifery

604

Patna

Training Centre for Hotel management & Applied Nutrition

62760.15Total

6010IT & ITES Training Centre

457




40.65Patna, GayaKatihar/Kishangunj, Vaishali, West & East Champaran, Muzaffarpur, Siwan, Chhapra, Saran, Madhubani,

ITI in PPP ModelTraining centre for Agro-product manufacturing & Entrepreneurship development for SMEsVocational Training Centre for Textile under PPP Model


RESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENRESOURCE MAPPING OF BIHAR & STRATEGIC ACTION PLAN FOR DEVELOPMENTTSubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Map showing major concentration zonesTourismTourism



Prepare Master Action Plan for Brand building and promotionLocation specific Projects and Related infrastructure and amenities

Form a State Tourism Promotion Board witha Task Force to monitor implementation of programs & projects

Create a Tourism Development Fund

No holistic Plan for developing this sector

Invitation to Private sector to set up Hotels, Restaurants, Tours, Parks & other projects in the State

For operations of Government run hotels, restaurants etc, tie-up with private players where feasible under PPP Model

Little incentive for private participation in this sector.

Not treated as a potential revenue earning industry.

Strategic SolutionCurrent Situation

SubSub Sectors / Industry Wise Info.Sectors / Industry Wise Info. Current situation/ Strategic solutionTourismTourism



Chemical Park

Instead of the one proposed at Fobesganj / Katihar

Jute ParkPurnea

Jute Park

Leather Parks

Aqua Culture Parks

Food Park

Aqua Culture ParkBhagalpur

Aqua Culture ParkMazaffarpur

Agri basedFood Park (Cereals, Pulses based) Bihta

Instead of MadhepuraFood Park & Terminal market (F&V based)Purnea

Leather ParkMazaffarpur

Food Park (Cereals, Pulses based) Begusarai

Already proposedFood Park & Terminal market (F&V based)Hajipur

Chemical Hub at Barauni in BegusaraiBegusarai

Leather ParkKatihar

RemarksType of Park/Mega growth centre Location

Restructure BIADA and Restructure the existing Industrial Areas

Summary of Parks & Rural Business Hubs ParksParks

Parks to be developed on BOT basis through SPV



This business hub with CFC will help weavers in accessing common facilities and in creating marketing linkages

Designated districts

8Business Hub with CFC

Handloom

Conduit points for providing market linkages and technical inputs to artisans


21Rural Business Hub for Handicraft

Handicraft

Animal Husbandry / Agriculture Allied Sector

Nodal point of all market linkages, extension and capacity building activities.


100Rural Business Hub for Agri & Horti Produce

Agriculture & Horticulture

Linkage between the poultry / livestock farmers & processors as well as markets


32Rural Business Hub for Poultry & Meat

Conduit for market linkages, extension activities and capacity building of fish farmers. Will also prove to be catalytic for fishery activity


38Rural Business Hub for Fishery activity

Function Location Proposed Number

Cluster based rural infrastructure

Summary of Parks & Rural Business Hubs RBHsRBHs

RBHs to be developed under PPPP mechanism through SPV



Strengthening & Installing support systems

Enable & Facilitate

- Core Infrastructure Development

- Financial Inflows

Strengthen – Research & Capacity Building

Install

- Policy Initiatives Suggested

- Project Implementation Mechanism



Conduct feasibility for rejuvenating 25 old Air strips & Feasibility for new Airports at Raxaul and Birpur.Improve passenger amenities at Patna

Build an Air Cargo Complex at Patna.

Initiate - Fast inter-city express trains & upgraded, fast & reliable freight movement. Take up the matter with the concerned Ministry

Poor Air connectivity, except for Patna city

Inadequate facilities for promoting Exports

Passenger / Freight movement within State unreliable / uneconomical

Air & Rail

Connect all proposed Parks & Hubs with hinterland & major towns by 2/4 lane roads on priority

Road connectivity still poor in most areas of State.

Roads

Restore Barauni, Muzaffarpur & Kosi Hydel Power StationsEnsure un-interrupted supply to Industrial Parks, Estates & RBHsInvite Private sector participation for generation.Transmit & distribute Electricity under PPP modelProvide incentives to industries with captive power generation

Huge Demand- Supply Gap

AT&C losses 70% against national average of 40%

State’s low generation leading to high cost of purchasing power

Power

Strategic SolutionCurrent SituationSector

Enable & Facilitate Core Infrastructure DevelopmentCore Infrastructure Development



Connect identified RBHs / Clusters through IT backbone on priority under ‘Common Service Centers’ scheme

Establish therein e- kiosks or Gyan Chaupalsunder PPP model

Set up State Wide Area Network for state level connectivity under PPP model

Substantial vacant land in Estates lying un- utilized

Exploitation by middlemen due to lack of knowledge & information amongst rural farmers

Inadequate Information flow within State Administration

IT Connectivity

Prepare overall Action Plan for BIADA & restructure its operations

Hand over O&M of Estates to private players under PPP model

Conduct viability study of sick / closed units and Unlock / Recycle land held by unviable Industrial Units

Develop contiguous portions of vacant land in PPP model as specialized Parks through private developers

Most Industrial Estates resemble industrial graveyards

Infrastructure/ facilities non –existent

Large portions of land locked in Units closed down

Substantial vacant land in Estates lying un- utilized

Industrial Infrastructure

Strategic SolutionCurrent SituationSector

Enable & Facilitate Core Infrastructure DevelopmentCore Infrastructure Development



Create initial corpus through state intervention or public issue / private placements, Tie-up with Commercial Banks for consortium lending and refinancing

Paucity of Funds to participate in Industrial Revival

Prepare Restructuring Plan for InstitutionsAll State Financial Institutions are defunct

State Financial Institutions

Fund SHGs through micro-finance.Involve NGOs for capacity building

Rural segment not being reached effectively

Requirements of private sector in Bihar not being understood by Banks/ Institutions

Cohesiveness required between Institutions & State

Set up Special Cell to co-ordinate & monitor implementation of resolutions

Cell to ensure time bound Action from Banks for: increasing credit flow through innovative models of lendingSpecial packages for specific sectorsSpecial focus for MSMEsLiberal margin/ security norms

Poor Recovery & CD ratio track record

Central Financial Institutions/ Banks

Strategic SolutionCurrent SituationInstitutions

Enable & Facilitate Financial InflowsFinancial Inflows



Simply allocating funds to ineffective delivery institutions is not likely to bear any result

The thrust should be to leverage public resources through:

Participation of local communitiesIngenuity of private sector

Only then, PPP can prove to be effective

Strengthen Research & Capacity BuildingResearch & Capacity Building

Type of suggested partnership

BOT

JV

Franchise

Outsource



NGOs / graduates to be involved on franchise basis

Extension services / Capacity building & Training

Outsource to NGOsOrganising SHGs / setting up co-operatives

Operations on franchise basis through graduates

Rejuvenate & set up Testing labs & Quality control

Animal HusbandryOperations on Franchise basis (under PPP)

Operate Vet hospital, clinics; AI centers

Entire primary sector NGOs – Banks linkages to be established Special cells to liaison with NABARD / Banks to enable increase in outlay

Enabling credit inflow

Agriculture & AlliedSet up new ones & bring existing set ups under Joint Venture (PPP)

Rejuvenate & set up Seeds farms / nurseries / hatcheries

• Agriculture & Allied• Handloom• Handicraft

Set up under Public SectorSet up Research & Development Institution

Relevant Sub Sector / Industry

ModelAction Points

Strengthen Research & Capacity BuildingResearch & Capacity Building



Capital subsidy support is very much needed for inducing any appreciable local investment in Bihar

Capital subsidy on Plant & Machinery @ 25% subject to a maximum of 100 lacs

Interest subsidy @3% on working capital

Study for revival of ailing industries

Initiatives at farm level

Encouragement of SHGsAllowing contract farming with safeguardsInvolvement of panchayats

Thrust on PPP based delivery institutions

Set up Directorate of Food Processing

Project Management Agencies for various sub sectors / Industries

• In turn PMA to utilize NGOs at ground level for organizing / federating farmers & artisans

Install Policy Initiatives Suggested & Project Implementation MechanismPolicy Initiatives Suggested & Project Implementation Mechanism

Policy Initiatives SuggestedPolicy Initiatives Suggested

Project Implementation MechanismProject Implementation Mechanism

Set up Directorate of Fisheries



summary

6382883350024256821TOTAL

1040Project Implementation

102952705Institution & Capacity Building

3205974243631Business Model for Processing

638288

13271510485Infrastructure

INDIRECT EMPLOYMENT

POTENTIAL

ESTIMATED PROJECT

COST (In Rs. Lakh)

DIRECT EMPLOYMENT

POTENTIAL

Thank You



RESOURCE MAPPING OF BIHAR STRATEGIC ACTION PLAN FOR...

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