bihar beckons

BIHARBECKONS BIHAR

BECKONS

BIHARBECKONS

BIHARTHE LAND OF OPPORTUNITIES

LET’S

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BIHARBECKONS

www.industries.bih.nic.in, www.udyogmitrabihar.com, www.biharfoundation.in 1

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Governance

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Parameters BiharCapital PatnaGeographical area (Sq km) 94,163 Administrative Units (Division) 9

Administrative Units (Blocks) 534Administrative Units (districts) 38 Total population (million) 103 Male population (million) 54 Female population (million) 49 Population Density (persons per sq km)

1,102

Sex Ratio (females per 1,000 males) 916

Literacy Rate (%) 63.82

Bihar is cradle of Hinduism, Incubator of Sufism, Birthplace of Buddhism, Jainism and tenth Guru of Sikhs.

Bihar is located in the Eastern part of India. The state is surrounded by Nepal in the North, West Bengal in the East, Uttar Pradesh in the West and Jharkhand in the South.

The state has various rivers and the most important of which is the Ganga.

Patna, Gaya, Bhagalpur, Muzaffarpur, Hajipur, Darbhanga are some important cities of Bihar.

Being in the fertile crescent of Indo-Gangetic belt supported by four agro-climatic seasons, Bihar offers cultivation of wide range of crops.

Bihar has remained centre of learning and excellence.

People of Bihar are industrious and known for their intellect.

BIHARBECKONS

Setting up of Speedy Trial Mechanism and Special Auxiliary Police (SAP) Force Mega project of ` 106 Crore for construction of Police barracks, Residences , Outposts and Police lines approved Mobile numbers of all Police Stations & Senior Officers displayed on Public domain and links on the website of GoB. Establishment of three Counter Insurgency & Anti terrorism (CIAT) schools at Dumraon (Buxar), Bodh Gaya (Gaya) and Dehri – on – Sone (Rohtas) Safety and security ensured through establishment of new Police Stations and Recruitment Dip in overall crime graph Women police stations set up in all 38 districts Flourishing Public life



Atmosphere

Governance

Infrastructure

Acts & Policies

BIHARBECKONS

“Right to Public Service Act” implemented from 15th Aug. 2011. ‘Bihar Prashashnik Sudhar Mission Society’ has been established with the help of DFID for administrative reforms and improving the model of Governance. ‘Jankari’ call centre for Right to Information. Zero Tolerance Policy against corruption. New Lokayukt Act Industrial Investment & Advisory Council established. ‘Good Governance Society’ established.



Atmosphere

Governance

Infrastructure

Acts & Policies

BIHARBECKONS

Extensive Road and Rail Network Better Bridges One International and One Domestic Airport Major part of ‘National Waterway No. – 1’ falls in Bihar. Improved Electricity Improved Tele density and Internet Connectivity Improved Postage and Courier Service Improved Urban Infrastructure Improved Financial Services and Banking Services Improved Social Amenities and Health Facilities



Atmosphere

Governance

Infrastructure

Acts & Policies

BIHARBECKONS



Atmosphere

Governance

Infrastructure

Acts & Policies

Industrial Incentive Policy 2011

Information & Communication Technology Policy 2011

Food Processing Policy

Tourism Policy

New and Renewable Energy Sources Policy 2011

Single Window Clearance Act 2006

Infrastructure Development Enabling Act

BIHARBECKONS

Strategic Location – Well connected to Major cities of India such as Delhi,

Kolkata, Mumbai, Bangluru, Chennai, Surat, Ahmedabad Connected to the Port of Kolkata, Haldia. Connected to the states having Mineral Resources

(Jharkhand, M.P. Orissa & Chattisgarh.) State provides direct access to the 46% of country’s

population (FICCI) Population – 103.8 Millions –

3rd Most Populated State of India 8.5% of India’s Population State with Highest Population Density (1102) 31.5% Growth in Urban Population during 2001-11.


Land & People

Atmosphere

Governance

Infrastructure

Acts & Policies

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BIHARBECKONS

Safety and Curbing Crime - Special Auxiliary Police (SAP) was raised by appointing

freshly retired army personnel. 10,500 personnel appointed. SAP plays vital Role in curbing crime.

2170 SI & 18170 Constables have been appointed Modernisation and upgradation of 370 PS have been

taken out of which work of 70 PS have been completed. No. of Conviction have increased to 68339 in 2011 from

6839 in 2006. 90 New Police Stations have been established Policemen are now equipped with Modern vehicles,

Arms and Ammunitions.Life Steeped in Peace -

Feeling of security has grown in common people & Investors.


Land & People

Atmosphere

Governance

Infrastructure

Acts & Policies

Assess

BIHARBECKONS

Direct Contact with the Public through different yatras by Hon’ble CM and through the program ‘Mukhyamantri Janta ke Darbar me’. Other Ministers and Officers have also been in direct touch with the public through their ‘Janta Darbar’ CM directly connects with the people of Bihar and outside world through his Blog (www.nitishspeaks.blogspot.com) and through Social Media like Facebook and Twitter. Dy. CM also connects directly through Facebook & Twitter. Every Dept. in Secretariat is connected through SECLAN. Out of 8463 Vasudha Kendras (Common Service Centres) planned, 7952 (94 percent) have already been established e-tendering process introduced.


Land & People

Atmosphere

Governance

Infrastructure

Acts & Policies

Assess

http://www.nitishspeaks.blogspot.com/

BIHARBECKONS

Physical Infrastructure

Urban Infrastructure

Industrial Infrastructure

Social Infrastructure

Financial Infrastructure


Land & People

Atmosphere

Governance

Infrastructure

Acts & Policies

Assess

BIHARBECKONS


AssessInfrastructure

The East-West, four-lane, high-speed corridor and the golden quadrilateral road passes through Bihar.

Total 1,12,733.58 Km of Road Length in Bihar (20% increase from 2010)

Average Road length per 100 Sq. Km in Bihar is 111.17. (Average for India is 129)

Plan Outlay for Road Development is 381,363.00 Lakh (2012-13)

801 bridges have been completed during 2007-2011 (2118.75 Cr.)

VISION – Travel time from any district of Biharto Patna in Six hours.


Roads & Bridges

Type of Road Length (Km) (Sep,

2011)National Highways (NH)

3734.38

State Highways (SH) 4857.00

Major District Roads 8508.20

Other District Roads 15508.00

Rural Roads 80129.00 Total Road Length 112733.58

BIHARBECKONS



EC Railway having five divisions Danapur, Mughal Sarai, Dhanbad, Sonepur and Samastipur has its headquarter at Hajipur.

More than 5400 Km of Rail length in Bihar. More than 3000 passenger coach holding capacity. Coach Maintenance Workshop at Harnaut in Nalanda - (2nd in Country after TN). Wheel factory at Belapur in Chhapra (Rs. 1417.23 crore ) Five Multi Functional Complexes (MFCs) are proposed to be built at Gaya, Hajipur, Sasaram, Islampur and Bhagalpur. Each MFCs will have shopping centres, food stalls, restaurants, book-stalls, telephone booths, medicine shops, budget hotels and underground parking for vehicles.


Railways

BIHARBECKONS



One International Airport at Gaya and One Domestic

Airport at Patna. Patna airport ranked 1st in terms of growth of domestic

passengers as well as domestic aircraft movement for last two consecutive years.

On an average 15 Domestic flights everyday to the major destinations like Delhi, Mumbai, Banglore, Kolkata, Lucknow, Chennai, Ranchi etc.

Increase in No. of Passenger from 176234 in 2004-05 to 838509 in 2010-11. (5 fold increase)

National Waterway No. 1 from Allahabad to Haldia Rs. 115 lakh for preparation of DPR have been approved. National Inland Navigation Institute at Patna. A permanent cargo handling terminal is being planned at Patna


Airways & Waterways

Airways

Waterways

BIHARBECKONS



Installed Capacity increased to 2932.80 MW (2009-10) from 1424.10 MW in 2005-06 .

3x660 MW TPS in Joint Venture with NTPC at Nabinagar. Kanti & Barauni units- R&M + Extension through MoU with

NTPC & BHEL. Modernisation of Transmission systems and Arrangements for

consumer metering & replacement of transformers Long term Power Purchase Agreements–1,010 MW from 2014 Payment of Electricity bill through debit cards and Common

Services Centres started Peak availability of Power increased to 1664 MW (2010-11)

from 1348 (2008-09). 30 Grid Sub-stations constructed; 12 under construction 2100 MVA transmission capacity added at 132/33 KV and

220/132 KV levels 15 Power projects of capacity 11000 MW (approx.) worth Rs.

49555 Cr. are under various stages of construction (SIPB Active List)


Power

BIHARBECKONS



44.7 million connection (2010-11) from 4.2 million (2005-

06) [> ten fold increase] Urban Tele density of Bihar is 182.33 (5th in India) Major private players are Vodafone, Bharati, Idea, Aircel, Reliance, Tata, etc. Broadband & 3G Services by all players.

9025 Post offices, 6 Night post offices (March, 2011) 1523 Panchayat Sanchar Seva Kendra Micro Credit Facility to SHG in collaboration with NABARD. All major Courier companies have set up in Bihar.


Telecom, Postal, Courier

Telecom

Postal & Courier

BIHARBECKONS



31.5% Growth in Urban Population during 2001-11. Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM), eight projects costing US$155 million have been sanctioned for the urban centres such as Patna and Bodh Gaya.

139 Urban Institutions — Corporations (10), Municipal Councils (43) and Municipal Panchayats (86)

Bihar Town and Country Planning Act is in the process of development by the Centre for Environment Planning and Technology (CEPT) , Ahmedabad.

Major areas of development are Water Supply, Sewage and Solid Waste Management.

Urban Infrastructure

BIHARBECKONS



Export Promotion Industrial Park (EPIP) at Hajipur spread across 92 acres campus. Multiproduct export processing zone. ($ 2.6 Million)

Two Food Parks has been sanctioned at Hajipur and Begusarai.

Jute Park is proposed at Purnia. (42 Cr., 1st in Country)

An Agri-Export Zone (AEZ) is being developed for promoting litchi exports from the districts of Muzzafarpur, Samstipur, Hajipur, Vaishali, East and West Champaran, Bhagalpur, Begusarai, Khagaria, Sitamarhii, Saran and Gopalganj.

Software Technology Park is being planned at Patliputra colony, Patna.

Air Cargo Complex is proposed near JPN Airport, Patna. Promoted by BIADA & AAI.

Inland Container Depot is proposed at Sitalpur. ($ 5.1 million)

Industrial Infrastructure

3rd Largest Producer of Vegetables

6th Largest Producer of Fruits 8th Largest Producer of Food

Grains Largest Producer of Okra, Litchi,

Makhana 3rd Largest Producer of Potato,

Onion, Bringle, Pineapple, Cauliflower

4th Largest Producer of Mango

BIHARBECKONS



Literacy increased from 47.0 percent in 2001 to 63.8 percent in 2011. (16.8% increase) Reduced Gender Disparity from 26.7% in 2001 to 20.1% in 2011. Total enrolment in elementary classes increased at an annual rate of 8.6% and in Upper Primary classes by 19.1 % Out-of school children brought down from 12.5% (2005) to 3%. 15,000 new school buildings; 1,40,000 new class-rooms added. Total Expenditure on Education has increased to 11063.03 Cr. in 2011-12 from 3367.97 Cr. in 2004-05. (>3.5 times) Institutes of National Standard like IIT, National Institute of Fashion Technology (NIFT), Chankya National Law Institute (CNLU), Chandragupt Institute of Management (CIMP), Aryabhat Knowledge University have been set up. Two central Universities are proposed at Gaya & Motihari.


EducationInstitutions No.Universities 13Open Universities 2Govt. Colleges 451Colleges/Institutes 815Local Body College 97Research Institutes 15Teacher Training Institute 33Engineering Colleges/Technical 10Medical Colleges/Institutes 11

BIHARBECKONS



Infant Mortality Rate (IMR) has been reduced to 48 (2010) from 61 in 2004. (National average - 47). Crude Death Rate (CDR) has been reduced to 6.8 (2010) from 8.1 in 2004. (National average -7.2). Decrease in Maternal Mortality Rate to 261 in 2007-09 from 312 in 2004-06. Average attendance of patients at PHCs has increased from 39 per month in Jan 2006 to 4,500-5,500 in 2010 Immunization improved from 18.6% in 2005 to 68% in 2011 Institutional Deliveries have increase from 1.12.lakh in 2005-06 to 13.85 lakh in 2010-11 (12 fold increase) 108 & 102 Ambulance Service Mobile Medical Unit ‘Dhanvantrai Rath’ in all 38 districts. 1,757 Doctors; 10,618 nurses; 477 Health Managers; 82,000 ASHAs appointed Mahavir Cancer Sansthan, IGIMS, AIIMS are some National level institutes. Some Pvt. Multispeciality & Super Speciality Hospitals are coming. The first two Nursing Colleges approved for Bihar and established at the Indira Gandhi Institute of Medical Sciences and the Kurji Holy family Hospital.


Health

Approved Budget on Health Expenditure increased to 1040.7 Cr. in 2009-10 from 398.2 Cr. in 2005-06.

Country’s first nursing skill laboratory set up at the Guru Gobind Singh Hospital, Patna

BIHARBECKONS



Revival of Bihar State Finance Corporation (BSFC) and Bihar Industrial Credit and Investment Corporation (BICICO) BSFC has formulated joint financing policy with SIDBI (Minimum loan 1.50 Cr.) Other Financial Institutions – ADB, SIDBI, NABARD, JEEVIKA (Micro Finance) and other commercial banks. Financial Services and Banking Scenario –

4348 Commercial Bank branches (10th in India) 1537 Regional Rural Banks. Deposit increased from

13735 Cr in 2011 from 7210 Cr. In 2007. Current Deposits 2549 Cr. (2nd in India) Savings Deposit 16298 Cr. (2nd in India)

Financial & Banking Infrastructure

BIHARBECKONS


AssessSigns of Prosperity

No. of Registered Vehicle increased to 3.87 lakh in 2010-11 from 80,000 in 2005-06. Mall & Multiplexes are on rise. Real estate market of near 15000 Cr. Significant rise in no. of TV set, Mobile Set, Internet connection etc. 1st Revolving Restaurant of North & East India. Floating Restaurant on Ganga.

Growth Scenario

Accolades

Advantage Bihar

BIHARBECKONS



The revenue surplus of Bihar Government increased from Rs. 2498 crore in 2006-07 to Rs. 6272 crore in 2011-12. The capital outlay has increased systematically from Rs. 5211 crore in 2006-07 to Rs. 11,448 crore in 2011-12. The developmental expenditure on social and economic services increased from Rs. 17.1 thousand crore in 2006-07 to Rs. 42.9 thousand crore in 2011-12 while non-developmental expenditure increased from Rs. 10.0 thousand crore in 2006-07 to Rs. 22.5 thousand crore in 2011-12. The total GSDP of Bihar at 2004-05 prices in 2010-11 is Rs. 1,44,472.0 crore (14.8% growth from 2009-10) Per Capita Income Rs. 14,865 During the period 2004-05 to 2010-11, the sectors reporting a growth rate of more than 15 percent are — registered manufacturing (23.30 percent), construction (19.61 percent), communications (27.23 percent) and trade, hotels and restaurant (20.22 percent).

Growth Scenario

Accolades

Advantage Bihar

Fastest Growing State with 13.1% GSDP Growth Rate (2011-12)

7th Largest Economy of India

BIHARBECKONS



Growth Scenario

Accolades

Advantage Bihar

BIHARBECKONS


AssessActs & Policies

Comparative Analysis of Industrial Policies

S.N.

ITEMS BIHAR MAHARASTRA GUJRAT ANDHRA PRADESH

1. Stamp Duty and Registration Fee

100% 50-100% 50% 100%

2. Project Report Incentive 50% a maximum of Rs. 2 Lacs and In case of Carbon Credit a maximum of Rs. 15 Lacs

3. Incentive on Land/Shed In case of MSME 50% Subsidy (ceiling Rs. 15 lacs). In case of Mega Units, 25% (ceiling of Rs. 30 lacs)

Ind. Promotion Subsidy will be equal to 25% of any relevant tax paid to GoM.

4. Financial Assistance for technical know how

30% (maximum Rs. 15 lacs)

10% 50% (Maximum 25 lacs)

5. Incentive/Subsidy for Captive power set

50% and 60% in case of Non-Conventional sources.

Upto 25% (maximum 2.5 lacs)

6. Exemption from MMC For five years

7. Capital Subsidy 20% (maximum 75 lacs) (for MSME Units)20% (maximum 500 lacs) (for Large Units)

5% subsidy on capital equipment. (SME Unit)

15% for Micro and Small Enterprise upto 20 lacs.

8. Incentive on Quality Certification (ISO etc)

75% 50% subsidy (Max. Rs. 1 lac)

50% with ceiling of 6 lacs in five years.

50% subsidy upto 2 lacs.

Pre & Post Production Facilities

BIHARBECKONS


AssessActs & Policies

Comparative Analysis of Industrial Policies

S.N.

ITEMS BIHAR MAHARASTRA GUJRAT ANDHRA PRADESH

1. Reimbursement of VAT and Entry Tax

80% for new industry25% for Brewery and Distillery

Octroi based incentive. Refund after commercial production.

50% - 100% VAT

2. Luxury Tax 100%

3. Electricity Duty 100% reimbursement for 7 years

100% Exemption for 15 years

4. Land Conversion Charges

100% exemption

25% upto Rs. 10 lacs

5. Central Sales Tax 1% CST6. Subsidy on

Employment Generation

Incentive Equal to the EPF amount paid (if minimum 100 persons get employment)

75% reimbursement of expenditure on account of contribution towards ESI and EPF for a period of 5 years.

Tax Related & Other Incentives

BIHARBECKONS


AssessStarting a Business

in Bihar

Mechanism

Approvals Required

Cost of Business

Contact Points

BIHARBECKONS



in Bihar

Mechanism

Approvals & Clearances Required

Cost of Business

Contact Points

Approvals and Clearances Required

Departments to be Consulted Estimated Time in Days

Incorporation of Company Registrar of Companies Not Applicable Registration, Industrial Entrepreneurs Memorandum (IEM), Industrial Licenses

Nodal Agency (Department of Industries) Not Applicable

Allotment of Land Bihar Industrial Area Development Authority (BIADA)

Seven to 21 days (up to 90 days for Acquisition of Non-Industrial Land)

Permission for Land Use Department of Revenue and Land Reforms, Government of Bihar

30 Days (45 Days for conversion of Non-Industrial Land for use)

Registration under Factories Act and Boilers Act

Offices of Inspector of Factories, Inspector of Boilers

Up to 120 Days

Site Environmental Approval, No Objection Certificate and Consent under Water and Pollution Control Acts

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

60 Days

Approval of Construction Activity and Building Plan

Urban Development and Housing Department, GoB

Seven Days

Sanction of Power Bihar State Electricity Board Up to 30 Days

Sanction of Water Water Resources Department, Government of Bihar

Up to 30 Days

Fire Service Clearance State Fire Service Headquarters, GoB Up to 15 Days

Registration under State’s Sales Tax Act, and Central and State Excise Act

Sales Tax Department, Central and State Excise Departments

Seven Days

BIHARBECKONS



in Bihar

Mechanism


Cost of Business

Contact Points

Cost Parameter Cost Estimate Source Industrial Land (per acre)

2.15 Cr. in Patliputra, 1.5 Cr. In Hajipur, 0.4 Cr. in Muzaffarpur

Bihar Industrial Area Development Authority (BIADA)

Labour (minimum wages per day)

Rs. 139 - 226 Dept. of Labour Resources, Government of Bihar

Office Space Rent (per sq ft per month)

Rs. 25-50 Industry Sources

Residential Rent (1500 sq ft per month)

Rs. 6000 - 15000 Industry Sources

Hotel Rooms (per night)

Rs. 3500 - 22000 Leading Hotels in the State

Commercial and Industrial Electricity (per kWh)

Rs. 5.10 - 5.35 Bihar State Electricity Board

BIHARBECKONS



in Bihar

Mechanism


Cost of Business

Contact Points

District Industry Centre (DIC)

• Projects < Rs. 1 Cr. can be submitted to DIC and are approved by DM.

State Investment Promotion Board (SIPB)

• Projects > Rs. 1 Cr. shall be submitted to the SIPB and approved by SIPB.

• SIPB is headed by Development Commissioner, Bihar.

Cabinet Approval

• Projects > Rs. 100 Cr. is submitted to the SIPB but approved by the Cabinet.

BIHARBECKONS


AssessKey Players

Working

Work in Progress

BIHARBECKONS

Greenfield Airports Riverine Ports on National Waterway No-1 Modernisation of Bus Terminus Public Transport vehicles Metro, Mono Rail Private Industrial Area and Complexes Engineering Colleges and ITI Community Colleges Creation of a Knowledge City/Science City Multi Specialty & Super Specialty Hospital Medical, Nursing and Pharmacy Colleges/Institutes Research Institutes & Testing Labs Power Plants [Thermal, Solar & Nuclear] Banking, Finance & Insurance Services –

Core Banking Solutions In bound and Out bound customer services Loan Processing etc.

Planned Township Solid Waste Management, Drinking Water Treatment plant, Ganga Expressway


Infrastructure Development

Industries

Food Processing

Information Technology

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Tourism

BIHARBECKONS

Cycle Manufacturing Plant Tractor Manufacturing Plant Car Manufacturing Plant Vaccines, Therapeutics plant Medical Equipments plant Leather Goods Manufacturing Industry Garments/Apparel Manufacturing Plant Diamond Cutting & Polishing Plant Steel Plants Paper Mills Jute Mills Mobile & Televisions Manufacturing plants Transformer Manufacturing/Assembling plant Computer Manufacturing/Assembling Plant



Industries

Food Processing


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Tourism

BIHARBECKONS



Industries

Food Processing


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Tourism

BIHARBECKONS

At all India average growth rate of about 7% the size of Food Market in Bihar is projected to reach 83,074 Cr. By 2015

Rice Mills and Rice Bran Oil Mills Maize Processing Plant Greenfield Sugar Mills Soya bean Plants Jam, Jelly, Pickles, Sauce etc manufacturing plant Pulse Mills Edible Oil Plant


Food Processing

Food Grains

Explore

Fruits & Vegetables

Sugarcane

Makhana

Oil Seeds & Pulses

BIHARBECKONS

Software Technology Park Development Centres BPO Satellite based education e-Governance initiatives IT education in Schools and Colleges Satellite based/VoIP based communication



Industries

Food Processing


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Tourism

BIHARBECKONS

Three to five Star Hotels Amusement Parks Film City, Film Studio Sound & Light Show, Laser Show Restaurants/Food Joints Water Parks and Water Sports facilities Digitalisation of Tourist places Maritime Institutes Digital Gaming Zones



Industries

Food Processing


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Tourism

BIHARBECKONS


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