BIHAR THE LAND OF BUDDHA
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Executive Summary…………….…….…. 3 Advantage State………………...…..….... 4 Bihar Vision…………………….…….…… 5 Bihar – An Introduction…………….....…. 6 Annual State Budget 2015-16……....… 16 Infrastructure Status………………...... 17 Business Opportunities…….…….....…. 31 Doing Business in Bihar…………...... … 49 State Acts & Policies…………………..... 55
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EXECUTIVE SUMMARY
Fastest growing state in • The economy of Bihar is projected to grow at a CAGR of 13.4% during the 2012-2017 i.e. India the 12th Five-Year Plan.
Fastest per capita • Bihar has witnessed strong growth in per capita net state domestic product. At current prices, per capita NSDP of the state grew at a CAGR of 12.91 per cent during 2004-05 to income growth 2014-15.
Leader in the production • Bihar is the largest producer of vegetables and the second-largest producer of fruits in of fruits and vegetables India.
Strong agriculture • Bihar has high agricultural production making it one of the strongest sectors of the state. About 80 per cent of the population is employed in agriculture, which is much sector state’s higher as compared to India’s average. The state has developed as the number one state in the eastern region in terms of agricultural production.
Fifth largest mobile • With 71.6 million mobile subscribers in February 2015, Bihar has the fifth-largest mobile subscriber base subscriber base among Indian states.
Source: Central Statistics Office, Ministry of Statistics and Programme Implementation, NSDP- Net State Domestic Product
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ADVANTAGE BIHAR
GSDP High economicGrowing growthdemand with Policy incentives NSDP flourishing industries State GSDP • As per the women empowerment policy, the state is increasing its focus State NSDP grew at a • Bihar’s economy is projected to grow at a CAGR of 13.40 per cent during the 12th on women empowerment by ensuring grew at a CAGR of Five-Year Plan. availability of resources (education CAGR of 14.33% • Food processing, dairy, sugar, and employment) for women, which 14.54% during manufacturing and healthcare are some would in turn lead to increased during 2004-05 to of the fast growing industries in the state. contribution from women in 2004-05 to development of the economy. 2014-15 The state has planned initiatives for the 2014-15 development of other sectors such as • The state also provides incentives for education and tourism. information technology, renewable Advantage energy, sugar, food processing and tourism. Bihar
Rich labour pool Location advantage • The state has a large base of cost- effective industrial labour, making it an • The state enjoys a unique location ideal destination for a wide range of specific advantage because of its industries. proximity to the vast markets of eastern and northern India, access to ports such The state has institutes of national • as Kolkata and Haldia and to raw importance such as National Institute of material sources and mineral reserves Technology and Indian Institute of from the neighbouring states. Technology, which provide skilled manpower to industries.
GSDP: Gross State Domestic Product NSDP: Net State Domestic Product AUGUST 2015 For updated information, please visit www.ibef.org 4 BIHAR THE LAND OF BUDDHA
STATE VISION
• 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. • GSDP projected to grow at a CAGR of 13.40 per cent during • Build medical institutions, create Tourism awareness and bring about 12th Five-Year Plan. technological advancements. • Agriculture to play a significant • Introduce radiology and pathology role with opportunities in food processing and agro-based services in every district. Health Vision GSDP growth • Government hospitals across 36 2022 industries. districts to be provided with CT • Use quality seeds and fertilisers scan services. and upgraded technology • All government hospitals likely to • Provide institutional credit and commence dialysis services. Education crop insurance. • Develop infrastructure with focus on roads and energy sector.
• Achieve zero dropout rate in secondary education. • Increase spending on building schools and colleges with easy access and upgraded infrastructure. • Launch policy initiatives to ensure compulsory enrolments • Open vocational training institutes.
Source: Confederation of Indian Industry
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BIHAR FACT FILE
The most commonly spoken languages in the state are Hindi, English, Urdu and Bhojpuri, Maithili and Angika.
The four agro-climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops.
Parameters Bihar
Capital Patna Geographical area (sq km) 94,163 Source : Maps of India Administrative districts (No) 38
Population density (persons per sq km)* 1,102 Bihar is located in the eastern part of India. The state is surrounded by Nepal in the north, West Bengal in the east, Total population (million) 104.1 Uttar Pradesh in the west and Jharkhand in the south. Male population (million) 54.3 The state has a number of rivers; the most important of Female population (million) 49.8 which is the Ganges. Sex ratio (females per 1,000 males) 916
Patna, Gaya, Bhagalpur, Muzaffarpur and Darbhanga are Literacy rate (%) 61.8 some of the key cities in Bihar.
Source: Government of Bihar website, Census 2011
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BIHAR IN FIGURES … (1/2)
Parameter Bihar All states Source
Economy 2014-15 2014-15 Directorate of Economics & Statistics of Bihar, 3.25 100.0 GSDP as a percentage of all states’ GSDP Central Statistics Office Directorate of Economics & Statistics of Bihar, GSDP growth rate (%) 16.44 7.3 Central Statistics Office Directorate of Economics & Statistics of Bihar, Per capita GSDP (US$) 596.4 1,389.61 Central Statistics Office Physical Infrastructure
Installed power capacity (MW) 2,759.8^ 272,502.95 Central Electricity Authority, as of May 2015
Telecom Regulatory Authority of India, as of Wireless subscribers (No) 71,619,146^ 973,347,094 April 2015 Telecom Regulatory Authority of India, as of Broadband subscribers (No) 2,300,000*^^ 100,760,000 April 2015
National Highway length (km) 4,321 92,851.07 National Highway Authority of India April-2015
Airports (No) 2 132 Airports Authority of India-April 2015
*Including Jharkhand, ^As of May 2015, ^^As of March 2014
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BIHAR IN FIGURES … (2/2)
Parameter Bihar All states Source
Social Indicators
Literacy rate (%) 61.8 74.0 Central Statistics Office, Economic Survey
SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population) 27.6 21.4 September 2014 Investment
Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion) 0.05^* 248.5 April 2000 to March 2015
Outstanding investments (US$ billion) 56.1 2,414.2 CMIE (2013-14)
Industrial Infrastructure
PPP projects (No) 26 1,409 Ministry of Finance, Government of India
PPP: Public-Private Partnership, SRS: Sample Registration System, ^Includes Jharkhand *For May 2015
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ECONOMIC SNAPSHOT – GSDP
In 2014-15, Bihar’s GSDP at current prices was US$ 66.4 GSDP of Bihar at current prices (in US$ billion) billion. 66,4 The state’s GSDP grew at a CAGR of 14.33 per cent 57,0 between 2004-05 and 2014-15. CAGR 51,9 54,1 14.33% 44,6 34,4 28,2 30,8 22,3 17,4 18,7 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office
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ECONOMIC SNAPSHOT – NSDP
In 2014-15, the NSDP of Bihar was US$ 61 billion. Bihar’s NSDP at current prices (in US$ billion)
Average NSDP growth rate between 2004-05 and 2014-15 was about 14.54 per cent. 61,0 CAGR 52,3 14.54% 47,4 49,5 40,7 31,2 25,5 28,1 20,2 15,7 16,8 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office
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ECONOMIC SNAPSHOT – PER CAPITA GSDP
The per capita GSDP of Bihar has increased from US$ Bihar’s per capita GSDP at current prices (US$) 195.8 in 2004-05 to US$ 649.2 in 2014-15.
The per capita GSDP increased at a CAGR of 12.72 per CAGR 649 12.72% 563 cent between 2004-05 and 2014-15. 527 546 459 358 303 326 244 196 207 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office
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ECONOMIC SNAPSHOT – PER CAPITA NSDP
Bihar’s per capita NSDP increased from US$ 176.6 in 2004- Bihar’s per capita NSDP at current prices (US$) 05 to US$ 596.4 in 2014-15.
Robust secondary and tertiary sectors helped Bihar CAGR 596 518 increase its average per capita NSDP at a CAGR of around 12.91% 482 496 12.91 per cent between 2004-05 and 2014-15. 419 326 274 298 221 177 186 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15*
Source: Directorate of Economics & Statistics of Bihar, Central Statistics Office
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ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP
At US$ 37.8 billion, the tertiary sector contributed 57.0 per Percentage distribution of GSDP cent to the GSDP (at current prices) in 2014-15, followed by the primary sector, contributing US$ 15.1 billion (22.8 per CAGR cent), and the secondary sector contributing US$ 13.4 billion (20.2 per cent). 54,7% 14.8% 57,0%
Between 2004-05 and 2014-15, the secondary sector was the fastest growing sector with a CAGR of 18.9 per cent, 13,7% followed by the tertiary sector, with a CAGR of 14.8 per 18.9% 20,2% cent. 31,6% 10.7% 22.8% This growth has been supported by the manufacturing; 20042004-05-05 2013-142014-15 electricity, gas & water supply; construction and services industries. Primary Sector Secondary sector Tertiary sector
The primary sector expanded at a CAGR of 10.7 per cent Source: Economic Survey of Bihar 2014-15 between 2004-05 and 2014-15. TechSci Research Estimates
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ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION
During 2014-15, the state accounted for an area of 1,150.9 thousand Annual production hectares for horticulture crops, which was 1,145.5 thousand Crop 2014-15 (‘000 tonnes) hectares in 2013-14. The total production of horticulture crops increased from 19,238.7 thousand metric tonnes (in 2013-14) to Sugarcane 13,023.69 19,428.9 thousand metric tonnes (in 2014-15). Rice 7,162.00
Maize 3,060.50 Bihar is one of the leading producers of fruits and vegetables in India. Major crops produced in the state include sugarcane, rice, Potato 7,069.70 wheat, maize and potato. Banana 1,457.90
Total pulses 1,012.2 In 2014-15, total production of sugarcane, rice and maize was estimated at 13.02 million tonnes, 7.1 million tonnes and 3.0 million Guava 239.20 tonnes, respectively. Litchi 234.50
Pineapple 113.9
Leading districts of crop production
Rice Rohtas, Aurangabad, West Champaran, Gaya Maize Madhepura, Khagaria, Saharsa, Katihar, Bhagalpur Wheat Rohtas, East Champaran, Muzaffarpur, Siwan Pulses Patna, Aurangabad, Bhojpur
Source: Economic Survey of Bihar, 2014-15, Horticulture Database 2014-15 Estimates for 2014-15 AUGUST 2015 For updated information, please visit www.ibef.org 14 BIHAR THE LAND OF BUDDHA
ECONOMIC SNAPSHOT – INVESTMENTS
Total FDI for Bihar and Jharkhand combined during the period from April 2000 No of proposals approved Year to May 2015 stood at US$ 59 million. by SIPB
2008-09 173 Till 2014-15, 1,891 proposals have been sanctioned by State Investment Promotion Board, out of which 272 divisions are functional and the rest are 2009-10 127 under the execution and planning stage. 2010-11 161
During 2014-15, the food processing industry was the most attractive sector in 2011-12 263 terms of proposals permitted by SIPB. 2012-13 417
The proposed investments for SIPB approvals during 2014-15 aggregate to 2013-14 454 around US$ 528.63 million and are expected to create job opportunities for 2014-15 330 14,222 people.
Proposals Approved By SIPB 2012-13 2013-14 2014-15 Proposed investment (US$ million) 3,213.40 1,005.14 528.63 Proposed employment 58,699 17,121 14,222 Sector-wise proposals Technical institution 6 11 3 Power plant 31 8 5 Steel processing & cement 18 17 18 Food processing 237 308 224
Source: Economic Survey, 2014-15, News articles In 2014-15, data is up to September 2014, SIPB - State Investment Promotion Board, Department of Industrial Policy and Promotion (DIPP) AUGUST 2015 For updated information, please visit www.ibef.org 15 BIHAR THE LAND OF BUDDHA
STATE BUDGET 2015-16
The overall size of the budget is US$ 19.90 billion that includes plan expenditure of US$ 9.47 billion and non-plan expenditure of US$ 10.43 billion.
Name of Department Plan Outlay (US$ million) Percentage total outlay
Education 1,806.95 19.16 Rural works 926.12 9.82
Rural development 894.41 9.49
Rural construction 801.36 8.50 Social welfare 681.98 7.23 Energy 669.74 7.10 Health 391.42 4.15 Agriculture 386.53 4.10
Food and consumer protection 350.10 3.71
BC & MBC welfare 325.09 3.45
Others 2,194.96 23.28
Source: State Budget 2015-16 *Assumed exchange rate of US$ 1 = INR 60.28 for 2014-15
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PHYSICAL INFRASTRUCTURE – ROADS
According to the State Plan, a budget of US$ 2,081.87 million has been sanctioned for the construction of roads and highways in the state.
During 2014-15, the total road length of Bihar was 226,244.58 km. The road length reflected a growth of 25.34 per cent from 2013-14.
Type of road Length (km) as of 2014-15
National highways 4,320.99 Source: Maps of India State highways 4,389.28
Major district roads 10,127.56 Bihar has 4,320.99 km of national highways and 4,389.28 km of state highways. Besides, the state has 10,127.56 km Rural roads 207,406.75 of major district roads.
In May 2015, the central government sanctioned an investment of US$ 8,294.62 million for the construction of roads in Bihar. The construction activity for this project is expected to begin by the end of 2015. Source: Economic Survey of Bihar, 2014-15, Ministry of Road Transport & Highways.
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PHYSICAL INFRASTRUCTURE – RAILWAYS
Bihar had an extensive railway network of 3,638.73 km, as of 2013-14.
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 2015, the central government approved an FDI project worth US$ 396.03 million for manufacturing world class diesel and electric locomotive factories in Bihar.
Several link-lines, such as Muzaffarpur-Samastipur- Barauni-Katihar and Muzaffarpur-Chapra-Siwan, have been converted to broad gauge from metre gauge.
Bihar is speeding up on execution of the Patna metro rail project and has constituted an SPV for the same. In 2015, Source: Maps of India the Detailed Project Report (DPR) has been submitted for the Patna metro project. The DPR amount for the project is estimated at US$ 1.99 billion. In 2015, a plant has been built at an estimated cost of US$ 247.5 million on an area of 285 acres with the capacity to produce 50,000 wheels of goods wagons, passenger coaches and locomotives per year.
Source: Economic Survey 2014-15, News articles
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PHYSICAL INFRASTRUCTURE – AIRPORTS
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).
In March 2015, the Airports Authority of India announced plans to develop the Indian Air Force airport of Bihar as an international airport. This airport would be used for international transport purposes.
Airport indicators (for both Patna and Gaya airports) Aircraft Passengers Freight Year Movements Domestic airport (in no.) (in tonnes) (in no.) International airport Source: Maps of India 2007-08 12,604 444,458 1,770 2008-09 9,666 369,408 1,943 Bihar has one domestic airport in Patna and one 2009-10 10,726 552,542 2,532 international airport in Bodh Gaya. 2010-11 9,547 838,509 3,279 As of 2013-14, the passenger traffic at the domestic airport 2011-12 10,369 10,21,544 3,425 of Patna was recorded as 516,018. 2012-13 9,972 10,03,169 2,251
Several domestic airlines connect Patna to Delhi, Kolkata, 2013-14 12,900 516,018 - Mumbai, Lucknow, Bengaluru, Hyderabad and Ranchi. 2014-15 11,808 14,51,272 5,198
Source: Bihar Economic-Survey, 2014-15 AUGUST 2015 Ministry of Civil Aviation, Government of India For updated information, please visit www.ibef.org 19 BIHAR THE LAND OF BUDDHA
PHYSICAL INFRASTRUCTURE – 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 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 Source: Maps of India waterways.
As of May 2015, the central government has proposed an inland waterways project through which several road projects are taken up with an investment of US$ 8.3 billion which will facilitate transportation of cargo between Haldia and Allahabad via Patna in Bihar.
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PHYSICAL INFRASTRUCTURE – POWER
As of June 2015, Bihar had a total installed power generation capacity of 2,759.79 MW, of which 2,435.67 MW was owned by central utilities, Installed power capacity (MW) 280.7 MW by state utilities and 43.4 MW by the private sector. 2.759,8 2.198,3 1.970,0 As of June 2015, coal-based plants registered a majority of the share 1.845,7 1.921,9 1.833,9 1.868,1 as the capacity stood at 2,516.24 MW. Hydropower plants accounted for a power generation capacity of 129.4 MW. Besides, 114.12 MW of installed power generation capacity came from renewable sources.
As of February 2015, the per capita consumption of electricity was 144 kWh. 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
2014-15* The BSEB is a vertically integrated agency and is responsible for generation, transmission and distribution of electricity in Bihar. Power Supply in Bihar Year Peak Demand Peak Availability As of 2015, BSPTCL operates a transmission network of 6,182 Km of (MW) (MW) 132 K.V. Lines & 1,663 Km of 220 K.V. lines & 75 Km of 400 K.V. Line 2011-12 2,500 1,712 as well as 97 operational EHV sub- stations with 7,360 MVA transformation capacity. 2012-13 2.650 1,802 2013-14 3,000 2,335 In March 2015, the state government of Bihar announced plans to 2014-15 3,500 2,831 combine solar power projects with aquaculture. Under the recently announced projects for harnessing solar energy in the state of Bihar, the government is planning to install solar photovoltaic projects on the lands recognised for the expansion of inland fresh water aquaculture Source: Central Electricity Authority, *As of June 2015 such as ponds. Bihar Economic survey 2014-15, Bihar State Power Holding Company, GOB BSEB - Bihar State Electricity Board
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PHYSICAL INFRASTRUCTURE – TELECOM
According to Telecom Regulatory Authority of India (TRAI), Bihar had nearly 71.61 million wireless subscribers and Telecom infrastructure (2014-2015) 347,309 wire-line subscribers as of May 2015. Wireless subscribers 71,619,146
The tele-density in the state was 46.10 per cent as of May Wireline subscribers 347,309 2015. The state had 10,084 post offices as of 2014-15. Broadband subscribers^ 2,300,000* At 71.61 million, Bihar had the fifth largest wireless Telephone exchanges 1,238 subscriber base among all the Indian states as of May 2015. As of 2014-15, the state had 1,238 telephone Tele-density (per 100 population) 46.10 exchanges.
Postal Facilities (2014-15) Some of the major telecom operators in Bihar Bharat Sanchar Nigam Limited (BSNL) Head Post Offices 31 Bharti Airtel Sub Post Offices 1,017 Aircel Limited Reliance Communications Total Departmental Post Offices 1,048 Idea Cellular Services Vodafone Essar Branch Post Offices 7,982 Tata Teleservices Night Post Offices 6 Source: Telecom Regulatory Authority of India Letter Boxes 25,014 Chief Postmaster General, Bihar Circle Ministry of Communications & Information Technology, *Including Post Boxes 1,439 Jharkhand, ^As of March 2014
Source: Telecom Regulatory Authority of India AUGUST 2015 For updated information, please visit www.ibef.org 22 BIHAR THE LAND OF BUDDHA
DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE
Under the JNNURM, eight projects costing US$ 117.5 million have been approved for urban centres such as Patna and Bodh Gaya in 2014-15. The prime sectors for expansion are solid-waste management system, water supply and sewage.
Urban Infrastructure in Bihar Scheme Estimated cost US$ million
Solid Waste Management for Danapur, Khagaul and Phulwari 1.92
Khagaul Water Supply Scheme 2.18
Danapur Water Supply Scheme 11.44
Phulwarisharif Water Supply Scheme 4.09
Patna Water Supply Scheme 70.84
Solid Waste Management for Patna 6.13
Purchase of buses for Patna Urban Transport 6.61
Bodhgaya Water Supply Scheme 5.56
Bodhgaya Sewerage Scheme 15.91
Purchase of buses for Bodhgaya Urban Transport 1.12
Source: JNNURM, Ministry of Urban Development, Government of India, Bihar Economic Survey –2014-15, Department of Urban Development and Housing, GOB , JNNURM - Jawaharlal Nehru National Urban Renewal Mission
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DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS
Project cost Project name Sector PPP type Stage (US$ million)
Khagaria-Bakhtiarpur section Roads BOT 355.4 Under bidding
Bridge across river Ganga connecting Roads BOT-Toll 313.3 Construction Bakhtiarpur-Shahpur Patori
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 Tourism DBFOT 14.4 Under bidding site of Hotel Kautilya Vihar at Patna
Development of a four star hotel at the site of Tourism DBFOT 6.2 Under bidding Gautam Vihar at Rajgir
Source: Ministry of Finance, Government of India BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer
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SOCIAL INFRASTRUCTURE – EDUCATION
The literacy rate of the state was recorded as 61.8 per cent. Male literacy rate in the state is 71.2 per cent and female Education infrastructure (2014-15) literacy rate is 51.5 per cent. • Universities: 22 (Out of which 21 are traditional and 1 open)
• Government colleges: 278 The total number of students enrolled in primary and upper • Engineering/technical colleges: 10 primary (up to class VIII) schools rose to 21.6 million in • Medical colleges: 12 2014-15 from 17.7 million in 2007-08. The enrolment of girls in the state is progressing, with the rate of reenrolment of • Local body colleges: 387 girls increasing at a faster rate than that of the boys. • Teacher training colleges: 35
The state’s budget expenditure on the education sector has witnessed a decline of 11.46%. In 2013-14, education Reputed technical institutes in Bihar expenditure was US$ 4.1 billion which decreased to US$ • Indian Institute of Technology, Patna 3.63 billion in 2015-16. Six institutions analogous to AIIMS • National Institute of Technology, Patna are proposed by the central government worth about US$ 303.7 million, of which, one has been developed in Patna, • National Institute of Fashion Technology, Patna Bihar. Reputed medical institutes in Bihar The prestigious IIT was established in Patna in August 2008. The institute offers B.Tech programmes in three • Indira Gandhi Institute of Medical Sciences, Patna disciplines: Computer Science and Engineering, Electrical • Jawaharlal Nehru Medical College, Bhagalpur Engineering, and Mechanical Engineering. PhD • Patna Medical College, Patna programmes are offered in Engineering, Science and Humanities and Social Sciences. Source: Economic Survey of Bihar 2014-15, Medical Council of India, University Grants Commission, Bihar Government Budget 2015-16 IIT - Indian Institute of Technology AUGUST 2015 For updated information, please visit www.ibef.org 25 BIHAR THE LAND OF BUDDHA
SOCIAL INFRASTRUCTURE – HEALTH
As of 2014-15, the health centres under various categories had reached 11,612 in the state, of which 533 are primary Health indicators (2014-15) health centres, 1,350 are additional primary health centres Number of patients visiting hospitals 55,945 and 9,729 are sub centres. There were 36 district hospitals, per day 70 referral hospitals and 55 sub-divisional hospitals in the state. Birth rate* 27.6 Death rate* 6.6^ In 2015-16, total budgeted expenditure for health services in Infant mortality rate** 28 the state was US$ 820.40 million. Life expectancy at birth (years) In-patient bed occupancy rate of the state increased to 87.0 Male (2006-10) 65.8 per cent in 2014-15 from 58.9 per cent in 2010-11. Female (2006-10) 66.1
Health infrastructure (2014-15) Government initiatives in the health sector District hospitals 36 Referral hospitals 70 • Increase in sanctioned manpower in departments such as medical, public health and family welfare. Sub divisional hospitals 55 • Higher level of personnel appointments and training. • Involving private sector in support services related Primary health centres 533 to cleaning, pathology and radiology. Sub centres 9,729 • Free drug distribution and indoor treatment. APHCs 1,350 Source: Economic Survey of Bihar, 2014-15, Sample Registration System (SRS) Bulletin 2014 (www.censusindia.gov.in), Planning Commission, Government of India, *Per thousand persons, **Per thousand live births AUGUST 2015 For updated information, please visit www.ibef.org 26 BIHAR THE LAND OF BUDDHA
CULTURAL INFRASTRUCTURE
A new museum is scheduled to open in Patna in 2015. Built on a 13-acre site, its development would be handled by the Major museums in Bihar UK based culture consultancy Lord Cultural Resources. The estimated budget for this museum is US$ 80 million. The • Patna Museum, Patna museum was inaugurated on August 7, 2015. • Chandra Dhari Museum, Darbhanga • Gaya Museum, Gaya According to the ‘Sports Policy, 2007’, the state government • Nardaha Museum, Nawada is undertaking various initiatives to promote sports in the • Bhagalpur Museum, Bhagalpur state by augmenting sports infrastructure, providing • Maharaja Lakshmishwar Sing Museum, Darbhanga coaching facilities and supporting promising players. • Sitaram Upadhyay Museum, Buxar • Bihar Sharif Museum, Nalanda An international conclave on ‘Experience Buddhism - In the • Chandra Sekhar Singh Museum, Jamui land of its was organised in February 2010 to give a origin’ • Ramchandra Shahi Museum, Muzaffarpur major thrust to cultural tourism and explore the tourism Jananayak Karpoori Thakur Memorial Museum, potential related to the Buddhist circuits in India, especially • Deshratna Marg, Patna Bihar. • Chapra Museum, Chapra
The directorates under Youth, Art and Culture Department are the Directorate of Museum, Directorate of Archaeology, Directorate of Cultural Affairs and Directorate of Student Source: Youth, Art & Culture Department, Government of Bihar and Youth Welfare. www.biharfoundation.in
The autonomous bodies under Youth, Art and Culture Department are Bihar State Sports Authority, Bihar Sangeet Natak Academy and Bihar Lalit Kala Academy.
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INDUSTRIAL INFRASTRUCTURE … (1/2)
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.
The total developed land by BIADA is of 5,930.81 acres; of which industrial units have been allotted 3,370.65 acres (56.8%). BIADA of Patna has attained the maximum share of 3,144.82 acres during 2014-15.
Land reserved for Acquired land infrastructure, Allotted land Total vacant No of running Region (acre) administrative block, (acre) land (acre) units road etc. (acre)
Patna 3,144.82 252.51 2,127.65 51.42 656
Bhagalpur 1,347.29 101.42 415.84 16.6 248
Darbhanga 411.96 76.67 305.51 29.78 324
Muzaffarpur 1,026.74 183.22 521.65 55.4 274
Source: Economic Survey of Bihar, 2014-15 BIADA - Bihar Industrial Area Development Authority
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INDUSTRIAL INFRASTRUCTURE … (2/2)
Industrial clusters in Bihar Centres Industries
Major agricultural centre of trade, exporting grain, sugarcane, sesame and medium-grained rice; Patna has also emerged as a manufacturing hub in Bihar, with the highest number of industrial units. Has the second-highest number of industrial units Tirhut in the state; food/beverage processing and manufacturing units located here. Important trade centre for cloth; famous for Muzaffarpur exporting fruits, particularly mango and litchi. Has major industrial units including those of Indian Oil Corporation; capacity of the existing Barauni thermal power station has undergone major renovation and modernisation. Famous globally for tussar silk; trading of agricultural produce and cloth is an important Bhagalpur economic activity; other major industries include Manufacturing rice, sugar milling and wool weaving. Textile/sericulture Gaya Major weaving centre; important tourist hub. Sugarcane Main industries are paper, sugar and handloom; Darbhanga Darbhanga city is noted for its trade in fish, Agro-based industries (except sugarcane) mango and makhana.
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SMART CITIES
As of June 2015, five cities of Bihar namely, Bhagalpur, Gaya, Patna, Bihar Sharif and Muzaffarpur are recommended to be developed as smart cities.
As of June 2015, along with the selected smart cities, 27 cities of Bihar selected for the infrastructure development would be under AMRUT scheme.
Smart Cities in Bihar Muzaffarpur Cities Population Area (Sq Km) Literacy Rate
Bhagalpur 3,037,766 2,569 63.14% Patna
Bihar Sharif Bhagalpur Bihar Sharif 296,889 23.5 74.80%
Gaya 4,391,418 4,976 63.67% Gaya
Muzaffarpur 4,801,062 3,172 63.43%
Patna 5,838,465 3,202 70.68%
Source: TechSci Research
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KEY INDUSTRIES
Bihar’s natural resources and policy incentives support the agro-based sector. Key industries in Bihar Britannia Industries, Ramco Industries and Hindustan • Paper, printing & publishing Petroleum are some of the promoters whose units were • Food and beverages • Mines & minerals granted approval. • Rubber and plastics • Dairy • Transport equipment Medium and small scale industries, and micro and artisan • Tea • Chemicals enterprises play a major role in terms of generating • Sugar • Tobacco employment. • Tourism • Textiles • Health • Leather A majority of the industries are located in Patna, Magadh, Tirhut and Munger. Bhagalpur, Purnea and Darbhanga are the other major industrial centres.
Proposals Approved by SIPB (Up to September 2014) 2014-15, Items Up to 2011-12 2012-13 2013-14 Up to Sept. Total 2014
No. of Proposals Approved 690 417 454 330 1891
Proposed Investment (US$ billion) 43.5 2.89 0.99 0.52 47.55
Proposed Employment (in million) 0.12 0.05 0.17 0.14 0.21
SIPB - State Investment Promotion Board AUGUST 2015 For updated information, please visit www.ibef.org 31 BIHAR THE LAND OF BUDDHA
KEY INDUSTRIES – FOOD PROCESSING AND DAIRY … (1/3)
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 Food processing units (2014-15) processing sector. The state is one of the leading producers of fruits such as banana, mango, guava, litchi and vegetables such as Rice mills 139 onion, tomato, potato and eggplant in the country. Wheat milling 36
In 2014-15, total fruit production in Bihar was 3.7 million tonnes and Maize processing 33 total production of major vegetables was 16.39 million tonnes. Rural agri business centres 51 (RABCs) Food processing is a priority sector for the state government. F&V processing 14
Up to 40.0 per cent of the project cost for setting up food Milk processing 10 processing units is subsidised by the state government. Makhana processing 3
A grant of up to 35 per cent of the project cost, subject to Honey processing 2 maximum of US$ 1 million, is provided in case of an Biscuits manufacturing 8 individual investor. Edible oil manufacturing 9 In March 2015, the government announced plans to establish a Ice cream 4 mega food park in Bihar. The food park will be set up by Amrapali Group. Other projects 17
Source : Department of Industry, Directorate of Food Processing, Government of Bihar Economic Survey of Bihar, 2013-14, National Horticulture Board, News Articles
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KEY INDUSTRIES – FOOD PROCESSING AND DAIRY … (2/3)
The Food Park scheme has been declared to be the most admired scheme by the Ministry of Food Processing Industry in the history Milk procurement per functional dairy cooperative of food processing in India. society (2014-15) in Kl per day Patna 101.22 The Government of Bihar has approved 328 food processing Barauni 205.13 projects as of 2014-15. Muzaffarpur 95.76 Following are the major crops for which food processing units may Samastipur 185.04 come up under Vision 2022: Shahabad 99.56 Paddy Bhagalpur 85.80
Magadh 33.25 Maize Ranchi Dairy 275.00 Fruits and vegetables Kosi 32.61
Wheat
Sugarcane
Source: Economic Survey of Bihar, 2014-15 COMFED, GOB AUGUST 2015 For updated information, please visit www.ibef.org 33 BIHAR THE LAND OF BUDDHA
KEY INDUSTRIES – FOOD PROCESSING AND DAIRY … (3/3)
Key players in Bihar’s food processing and dairy industry
• COMPFED is an organised milk processing cooperative which collects milk through district level cooperative unions, and processes and markets the same. Bihar State Cooperative • It supports members with interventions across technology, supply chain, marketing, training, etc. Milk Producer’s Federation • COMPFED covers five districts directly and 26 districts through six district level cooperative (COMPFED) 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. • Around 11,000 women have been already trained under its training management program.
• Usher Agro Limited is one of the largest basic food grain (rice and wheat) processing companies Usher Agro Ltd in India. The company established its rice processing mill in Buxar, Bihar in 2003. • The company's product list consists of rice, bran, wheat and husk which are sold under the brand name of ‘Rasoi Raja’. • In 2014-15, the company’s revenue was US$ 210.5 million.
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KEY INDUSTRIES – CHEMICAL, OIL AND GAS … (1/2)
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.
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.
As of July 2015, a tender has been raised by GAIL India for establishing the sub-divisions of pipelines of length 236 km. As a part of reviving the fertiliser units, the state government has proposed the laying of a pipeline of length 2,050 km in Bihar and Uttar Pradesh in the middle of 2015.
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.
In 2015, the central government has promised to invest US$ 4.1 billion in oil and gas related projects of the state. Investments are directed towards the construction of Jagdishpur-Haldia gas pipeline, whereas the Ministry of Petroleum and Natural Gas has decided to expand the capacity of Barauni refinery to 9 million metric tonnes per annum (MMTPA) from 6 million metric tonnes per annum (MMTPA).
Source: Economic Survey of Bihar, 2012-13, 2014-15, News Articles ONGC - Oil and Natural Gas Corporation Limited, IOCL - Indian Oil Corporation Limited
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KEY INDUSTRIES – CHEMICAL, OIL AND GAS … (2/2)
Key players in Bihar’s chemical, oil and gas industry
IOCL, leading petroleum refining company, has a refinery at Barauni, which has an annual Indian Oil Corp Ltd (IOCL) • India’s refining capacity of 6 million metric tonnes. Total revenue stood at US$ 72.1 billion for 2014-15. • 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, and is scheduled to open three additional bottling plants.
Graphite India Ltd (GIL) • GIL was incorporated in 1963. The company has eight plants located across India and produces graphite products, coke and power. Total revenue is US$ 247 million for 2014-15. • The coke division of the company at Barauni manufactures calcined petroleum coke (CPC) and has an installed capacity of 30,000 tonnes per annum.
Krishi Rasayan Exports Pvt Ltd (KREPL) • KREPL is a flagship company of Krishi Rasayan Group. Having five manufacturing units, the company is considered as one of the major agro-chemical manufacturers. Total revenue of the Krishi Rasayan Group in 2014-15 was US$ 225 million.
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KEY INDUSTRIES – EDUCATION ... (1/3)
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:
Goals to achieve by 2022 Action points – School
• Achieve near-zero dropout rate in secondary • Increase access to schools by establishing schools education. within 1 km distance of every habitation.
• Build a base of 12 million graduates and 10 million • Enable access to schools regardless of the capacity certified technicians. to pay.
• Increase the capacity of higher education institutions • Fast tracking the upgradation of the state’s school and vocational training institutions by 10 times. infrastructure and ensuring availability of adequate teachers. • Increase focus on becoming an “education export hub” of the region by attracting students from within • Launch awareness campaigns and policy initiatives and outside India. to ensure compulsory enrolment and zero dropout.
• Increase capacity of medical institutions. • Establish model centres of excellence in primary education in rural areas. • Create exclusive science parks for nanotechnology, biotechnology and pharmaceuticals. • Improve hygiene in schools and colleges to curtail dropout, especially of girl students. • Produce one Nobel laureate by 2022.
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KEY INDUSTRIES – EDUCATION ... (2/3)
Action points – Vocational training Action points – Higher school
• Ensure access to vocational training institutes to all; • Quadruple the capacity and infrastructure of higher replicate initiatives such as the “ICT academy” to institutions to accommodate the projected 3 million provide vocational training through e-learning. students.
• Plan curriculum in cooperation with industry to • Capacity of medical colleges needs to be ensure employability and minimise skill gap. immediately tripled to ensure minimum provision of quality healthcare to the state’s population. • Provide a boost to private training facilities to train more nurses and paramedics. • Going by the current projection, the required capacity would be four times the present capacity. Hence, to • Provide short-term vocational courses with diploma meet the demand, the state should facilitate speedy for special skills, such as plumbing and approval of medical colleges. housekeeping, to ensure that these skills can be monetised. • Collaboration of educational institutions and industry should be such that students remain updated with the latest industrial processes and technologies, besides ensuring their employability.
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KEY INDUSTRIES – EDUCATION ... (3/3)
Under the State Budget 2015-16, the total expenditure for developing the education sector in the state has been estimated at US$ 3,634.96 million, when compared to that in 2014-15 which is US$ 4,119.2 million.
The total amount includes US$ 1,828.02 million for non-planned and US$ 1,806.9 million for planned expenditure.
Source: State Budget 2015-16
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KEY INDUSTRIES – SUGAR ... (1/2)
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 2013-14, the production of sugarcane was 12,881.78 thousand tons, which increased to over 13,023.69 thousand tons during 2014-15.
Sugar companies have made considerable investments for capacity expansion; consequently, their daily crushing capacity has increased from 37,000 tonnes in 2005 to over 66,400 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.
A sugarcane research institute is planned at Motihari as an effort to increase cultivation and increase productivity.
Source: Economic Survey of Bihar, 2014-15, sugarcane.bih.nic.in
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KEY INDUSTRIES – SUGAR ... (2/2)
Key players in Bihar’s sugar industry
K. K. Birla Group • 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.
Riga Sugar Co Ltd • The company belongs to the Dhanuka Group and was incorporated in 1980. • It manufactures ethyl alcohol, molasses and sugar at Sitamarhi. The plant has a crushing capacity of 5,000 tonnes per day. In 2014-15, its revenues reached US$ 30.71 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.
Eastern Sugar & Industries Ltd • The company was incorporated in 1964. • It manufactures molasses and sugar at Purba Champaran, in Bihar. • The plant has a crushing capacity of 2,500 tonnes per day.
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KEY INDUSTRIES – MANUFACTURING INDUSTRY … (1/2)
Apart from a few engineering units, prominent industries in Bihar are leather, textiles and handlooms. The state has Handloom concentrated districts in Bihar ample raw materials (hides and skin of livestock), technical Silk, cotton, furnishing cloth, staple skills (leather technology institutes) and manpower, which Bhagalpur are the major drivers of the leather industry. chadar, exportable silk and cotton cloth Banka Tussar silk, exportable silk cloth Bihar has 85 leather units, of which 60 are manufacturing Gaya cotton and silk cloth units and 25 units take up job work. Ornamental curtain, bed cover, interior In 2014-15, the textile industry of Bihar accounted for 6.8% Nalanda decoration material and exportable share in the total output of the state. ornamented cloth Nawada Tussar silk and ladies dress material Bihar has a large number of handloom units, of which 10,850 are under the cooperative sector and 25,503 are Darbhanga, outside. Besides these, the state has 11,361 power looms. Madhubani, Fine cotton, long cloth, dhoti, shirting Sitamarhi Between April 2008 and May 2015, 97 investment Aurangabad, Woolen blanket, woolen carpet and sari proposals in steel processing and cement sectors were Rohtas permitted by the SIPB. Kaimur Woolen carpet, banarasi sari As of May 2015, the proposed investments and the invested Patna, Siwan Cotton cloth and furnishing cloth capital in the steel processing and cement sectors are US$ 1.8 billion and US$ 129 million respectively. Source: Economic Survey of Bihar, 2014-15, Department of Industries, Handloom, Government of Bihar
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KEY INDUSTRIES – MANUFACTURING INDUSTRY … (2/2)
Key players in Bihar’s manufacturing industry
• Bata is one of India’s leading manufacturers and marketers promoted by the Toronto-based Bata Bata India Ltd Shoes, of footwear products. • The company has a tannery at Mokamehghat in Bihar and a leather footwear factory at Bataganj in Patna. • In 2014-15, the company generated US$ 444.5 million in revenues.
Bharat Wagon & • The Bharat Wagon and Engineering Company is a part of Bharat Bhari Udyog Nigam, a Engineering Co Ltd 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 • The company produces Mild Steel (MS) bars and billets and has established a production unit in Co Ltd January 2009 in Bihta, Bihar. • In December 2013, company recorded revenues of US$ 14.44 million which declined to US$ 10.57 million in December 2014. the company has two factories in Bihar at Nayatola and Mahadevpur Phulari. In 2013, the company introduced a new variant GISCO Duramaxx 500D. This product is certified with ISI FE 500D Certification.
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KEY INDUSTRIES – 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 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. As of 2015, the tourist arrivals in Bihar constituted 23.37 million domestic tourists and 0.82 million foreign tourists. Tourist arrivals in the state grew at a CAGR of 7.8 per cent Source: Maps of India during 2009-10 to 2004-15. Arrival of domestic tourists in the state grew at a CAGR of 7.6 per cent, whereas the arrival of foreign tourists grew at a CAGR of 14.4 per cent during 2009- 10 to 2004-15.
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.
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KEY INDUSTRIES – TOURISM … (2/2)
As of July 2015, in order to attract tourists to the state of Bihar, Arrival of domestic tourists in Bihar (in million) the state government announced plans to establish an information centre in Mumbai. The information centre will provide 22,54 22,35 23,37 all the information about the tourist places of the Bihar. 19,36 16,21 16,58 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 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Park in Patna, etc. Arrival of foreign tourists in Bihar (in ‘000s) The government has planned two mega religious tourism circuits 1.096,9 (Buddhism & Jainism), two mega theme parks based on the life 972,49 of Buddha and Mahavir (to be constructed at Bodh Gaya and 829,51 Rajgir) and eight mega centres for educational, cultural and 765,84 religious tourism [Bodh Gaya, Rajgir, Patna city, Vaishali, Nalanda, Vikramasila, Ashok Dham, Yoga Sansthan (Munger)]. 540,69 423,04
In February 2015, the tourism department of Bihar announced plans to set up rope way systems at seven tourist places of the state. These places would be Rajgir, Barabar cave, Mandar ki Pahadi, Mundeshwari Dham, Dungeshwari cave, Brahmayoni 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Hills and Rohtasgarh fort. Source: Bihar State Tourism Development Corporation Ltd.
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KEY INDUSTRIES – HEALTH ... (1/3)
The Bihar government has made considerable investments Funds allocated for the health sector in Bihar as in the health sector: per Budget 2015-16 (US$ million)
Mobile medical unit service launched in 24 districts, and work under process in the remaining 14 districts. 828,61 PHCs established in all 534 blocks. Ek started for universal ‘Muskaan Abhiyan’ 434,7 393,8 immunisation. Established Dial ‘1911’ (toll free) for medical consultation and grievance re-addressable system. Established Bihar Medical Services and Infrastructure Corporation. State Plan Non-Plan Core Paln A special patient welfare committee has been set up in each district to look after the welfare of poor Source: Economic Survey 2014-15, Bihar Budget 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.
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KEY INDUSTRIES – HEALTH ... (2/3)
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:
Goals to achieve by 2022 Action points
• Increase the number of hospitals; beds per thousand • Build medical institutions and set up institutes in each population to be increased from the current 0.25 to 4 district to train nurses, technicians and paramedics to beds per thousand population, which includes the serve the ageing population. addition of 3,01,084 beds. • Increase spending on healthcare to US$ 1,600 • Increase the number of doctors per thousand million from the present level of US$ 300 million. population from 0.40 to 3. • Build awareness regarding preventive medicines • Provide a thrust to health insurance. through mass media and with the assistance of healthcare professionals and non-governmental • Increase the number of medical colleges by four organisations. times. • Outsource medical services. • Establish super-specialty hospitals under public- private partnership at eight district headquarters. • Increase the use of technologies to achieve increased productivity.
• Increase focus on medical research to incorporate nanotechnology and biotechnology in providing medical services.
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KEY INDUSTRIES – HEALTH ... (3/3)
Key players in Bihar’s healthcare industry
AIIMS Patna • 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. • AIIMS Patna plans to start hair transplant very soon.
PMCH • 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.
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SINGLE–WINDOW APPROVAL MECHANISM
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
Industries US$ 2.17 million to State-Level Investment Industries Development Development Promotion Board Commissioner US$ 21.7 million (Udyog Mitra)
Below US$ 2.17 million District-Level Committee District Collector DIC
DIC - District Industries Centre
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KEY INVESTMENT PROMOTION OFFICES … (1/2)
Agency Description Contact information
• It is the state-level nodal body under the single-window regime for investments of above US$ 2.17 million. Vikas Bhawan
Bailey Road, Industries Its primary functions involve coordinating applications from • Patna - 800 001, Bihar. Department, investors, processing applications, and facilitating the process of Phone: 91-612-2215 211 obtaining clearances from various departments. Government of Fax: 91-612-2217 991
Bihar Website: The department, headed by the Principal Secretary, supervises • http://industries.bih.nic.in/ District Industry Centres (DIC), industrial area development authorities and industrial premises in the state.
• This is the district-level nodal agency for investments below US$ 2.17 million. District Industries Centre, District Industry Patna Centre (DIC) • DIC supports entrepreneurs in identifying local resources, supply of Phone - 0612-2270865 raw materials and equipment, arrangement of credit facilities, Fax: 0612-2218900 marketing, quality control, etc.
1st Floor, Udyog Bhawan, It was constituted with a mission to promote industrialisation and • East Gandhi Maidan, create awareness about the Industrial Policy. It supports state’s Patna - 800 004, Bihar entrepreneurs in setting up industries and availing incentives offered Phone: 91-612-2675 991, Bihar Industrial by the state government. 2675 002, 2675 352
Area Development Fax: 91-612-2675 889 The organisation runs under the guidelines and policies of the Board Authority (BIADA) • E-mail: of Directors, having directors nominated by the State Government [email protected], under the chairmanship of the principal secretary, Department of Website: Industries, Government of Bihar. http:///www.biadabihar.in/
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KEY INVESTMENT PROMOTION OFFICES … (2/2)
Agency Description Contact information
It is the main state-level institution that provides term lending • Fraser Road, facilities to industrial entrepreneurs. Patna - 800 001, Bihar
Bihar State Phone: 91-612-2332 785 The corporation has entered into an agreement with Small Industries • E-mail: Finance Development Bank of India (SIDBI), under which joint financing will [email protected] Corporation be done by SIDBI and BSFC in the proportion of 90:10. Under this Website: scheme, a minimum of US$ 0.3 million loan can be provided to one http://bsfc.bih.nic.in/ unit.
Vidyut Bhawan, Bailey Road, Bihar State Patna - 800 001, Bihar. The board is responsible for the synchronised development of • Phone: 91-0612-2504 036 Electricity Board generation, transmission and distribution of power in the state. (BSEB) Fax: 91-0612-2504 968 Website: http://bseb.bih.nic.in/
Beltron Bhawan, Shastri Nagar • The purpose of the organisation is prevention and control of Jawahar Lal Nehru Marg, Bihar State pollution through inspection of treatment plants, standards Patna - 800 023, Bihar Pollution Control application, research and development activities, etc. Phone: 91-0612-2281 250 Board Fax: 91-0612-2281 050 • Headquartered at Patna, the organisation has seven zonal offices. Email: [email protected], Website: http://bspcb.bih.nic.in/
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KEY APPROVALS REQUIRED … (1/2)
Approvals and clearances required Departments to be consulted Estimated time
Incorporation of company Registrar of Companies NA
Registration, Industrial Entrepreneurs Nodal Agency (Industries Department) NA Memorandum (IEM), Industrial Licenses
Seven to 21 days (up to 90 Allotment of land Bihar Industrial Area Development Authority days for acquisition of non- industrial land)
30 days (45 days for Revenue and Land Reforms Department, Permission for land use conversion of non-industrial Government of Bihar land for use)
Registration under Factories Act and Offices of Inspector of Factories, Inspector of Up to 120 days Boilers Act Boilers
Site environmental approval, no objection Bihar State Pollution Control Board and certificate and consent under Water and Ministry of Environment and Forests, 60 days Pollution Control Acts Government of Bihar
NA: Not Available
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KEY APPROVALS REQUIRED … (2/2)
Approvals and clearances required Departments to be consulted Estimated time
Approval of construction activity and Urban Development and Housing Seven days building plan Department, Government of Bihar
Sanction of power Bihar State Electricity Board Up to 30 days
Water Resources Department, Government Sanction of water Up to 30 days of Bihar
State Fire Service Headquarters, Fire service clearance Up to 15 days Government of Bihar
Sales Tax Department, Central and State Registration under state’s Sales Tax Act, Seven days and Central and State Excise Act Excise Departments
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COST OF DOING BUSINESS IN BIHAR
Cost parameter Cost estimate Source
US$ 384,136 in Patliputra, Bihar Industrial Area Development Industrial land (per acre) US$ 84,054 in Muzaffarpur Authority
Ministry of Labour and Employment, Labour (minimum wages per day) US$ 2.3 to US$ 5.7 Government of India
Office space rent US 50 cents to US$ 1.2 Industry sources (per sq ft per month)
Residential rent US$ 175 to US$ 350 Industry sources (2,000 sq ft per month)
Five-star hotel room (per night) US$ 100-200 Leading hotels in the state
Commercial and industrial Industrial: US 10.3 cents to US 11.1 cents Bihar State Electricity Board electricity (per kwh) Commercial: US 9.8 cents to US 11.2 cents
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STATE ACTS, POLICIES & INCENTIVES … (1/5)
Bihar State Hydro-Power Policy – 2012
Objectives • 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
Bihar Industrial Incentive Policy – 2011
Objective • To promote balanced industrial development and enable industries to contribute towards the social and economic development of the state. Read more
Bihar Policy for Promotion of New and Renewable Energy Sources 2011
Objective • 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
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STATE ACTS, POLICIES & INCENTIVES … (2/5)
Information and Communication Technology Policy 2011
Objectives • 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
Food Processing Policy
Objectives • 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
Sugar Incentive Package
Objective • To serve the sugar industry by building on the factor advantages of the state. Read more
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STATE ACTS, POLICIES & INCENTIVES … (3/5)
Investment subsidies for NRIs
Objectives • 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 Bihari's 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 Objectives 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
Objectives • The government is taking steps to provide adequate facilities to enable NRIs to start small scale industries in the state.
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STATE ACTS, POLICIES & INCENTIVES … (4/5)
Incentives for new investments in plant and machinery
Objectives • 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
Objectives • 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.
Bihar Women Empowerment Policy
Objectives As per the women empowerment policy, the state is increasing its focus on women empowerment by ensuring availability of resources (education and employment) for women, which would in turn lead to increased contribution from women in development of the economy.
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ANNEXURE
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
2014-15 60.28
2015-16 Q1 64.01
Source: Reserve Bank of India
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