Presentation by

SHRI NITISH KUMARChief Minister,

Bihar

BIHAR ON THE MOVE

CHALLENGES AND OPPORTUNITIES

BIHAR

The land of enlightenment

BIHAR IS PROUD OF

Great Thinker : ChanakyaScientist : AryabhattGrammarian : PaniniOriginator of yoga : PatanjaliGreat kings : Bimbisar, Ajatsatru,

Chandragupta and Ashoka

RELIGIOUS AND SPIRITUAL TOURISM

Budhist : Bodhgaya, Rajgir, Nalanda, Vaishali, Bikramshila and Kesharia

Jain : Pawapuri & Vaishali.Sikh : Patna.Sufi : Patna, Sasaram.Ramayan : Sitamarhi, Gaya.

THE FAMOUS HANDICRAFT FORMS ARE

Mithila Painting, Manjusha Painting, Patna Kalam & Gudiya

BIHAR’S RICH HERITAGE• Unique distinction of being the cradle of three religions – Buddhism,

Jainism and Sikhism

• Buddha attained Enlightenment at Bodh Gaya ,Mahavira attained Nirvana at Pawapuri and 10th Sikh Guru , Guru Gobind Singh was born in Patna Sahib

• A great Hindu pilgrimage destination – Vishnupada Temple for Pitripaksha

• A holy place for the followers of Sufi faith

• Headquarters of the great Magadh empire

• Vaishali in Bihar is credited as the first republic of world

• Ancient university of Nalanda and Vikramshila

• The land of rishis and thinkers like Chanakya , Parasuram, Gautam, Yagyavalkya, Maitreyee, Gargi,Vidyapati,Mandan Mishra etc

OUR STRENGTHS

• TOP CLASS HUMAN RESOUCE

• FERTILE LAND

• ABUNDANCE OF WATER

• CHEAP AND INDUSTRIOUS LABOUR

…BUT THIS IS WHAT WE INHERITED

• BAD LAW AND ORDER – PEOPLE FELT INSECURE- WHICH LED TO FLIGHT OF CAPITAL AND TALENTED HUMAN RESOURCE

• CENTRALISED POWER STRUCTURE – LACK OF TRUST IN THE HIERARCHY

• LIMITED INTERACTION - UNIPOLAR COMMAND SYSTEM

• LOW MORALE OF THE BUREAUCRACY

LOW PER CAPITA INCOME LOW GROWTH RATE

LOW CREDIT

DEPOSIT RATIO

LOW HUMAN DEVELOPMENT INDICES

OUR OPENING BALANCE(this is where we started)

7690

21142

37763334

0

5000

10000

15000

20000

25000

1993-94 2003-04

66

27.8

20.7

56.7

0

10

20

30

40

50

60

70

2001 2005

5.5

7

8.5

2.94.01

8.5

0123456789

9thPlan

10thPlan

11thPlan

India

Bihar

MOTTO FOR A NEW BIHAR

AGENDA OUTLINED IN THE COMMON MINIMUM PROGRAMME (CMP)

COMMON MINIMUM PROGRAMME (CMP)SOME MAJOR THRUST AREAS

GOOD GOVERNANCE

DECENTRALISATION OF POWER

EDUCATION

HEALTH

EMPLOYMENT

ROADS

POWER

IRRIGATION

AGRICULTURE DEVELOPMENT

COMMON MINIMUM PROGRAMME (CMP)SOME MAJOR THRUST AREAS

IMPROVEMENT IN THE CONDITION OF THE CANE GROWERS

RURAL DEVELOPMENT

LAND REFORMS

INDUSTRIALIZATION

SOCIAL JUSTICE AND HARMONY

MINORITY WELFARE

TOURISM

URBAN INFRASTRUCTURE

YOUTH WELFARE , SPORTS AND CULTURE

STRATEGY FOR

DEVELOPMENT

DEVELOPMENTAL STRATEGYMulti dimensional approach for improving educational and health outcome through working with private, public and non governmental organizations.

Administrative Reforms, capacity build up and strengthening of the institutions for skill upgradation.

Utilisation of idle capital assets.

Efficient use of existing potential.

Direct investment from Central Government.

Initiatives in areas of strategic importance e.g., Infrastructure such as Road, Bridges, Power, Increased Agricultural Productivity, Water Management including Flood Control & Interlinking of Rivers.

Policy Initiatives for increased Private Investment.

STRATEGY FOR 8.5% GROWTH

Public investment postulated to go up from Rs 21,000 cr in 10th Plan to over Rs 58,000 crores in 11th Plan

Share of private investment in total investment postulated to go up from the present 59 % to 65 %

State intends to attract large share of private investment and FDI

Strategy would be through Infrastructure Development as well as Investments in Social Services (Education, Health and Nutrition)

INVESTMENT

40% Growth in Plan Expenditure in 2005-06

60% Growth in Plan Outlay 2006-07

Per Capita Plan Expenditure has gone up from Rs 275.75 in 2002-03 to Rs 558.19 in 2005-06

THE NEW THRUST

Good Governance through-Transparency & right to information

Ensuring wide participation of citizens/NGOs in developmental programmes.

Office management reforms

Use of IT

ADMINISTRATIVE REFORMS

Effective control of crime through enforcement of rule of law and speedy trial

Administrative Reforms – Administrative Reforms Commission set up

Land Reforms – Land Reforms Commission set up

E-governance – with the help of TCS and IL&FS- Institute of Smart Governance appointed as consultant

Appointment of reputed consultants for various specialised activities

Restoring morale of civil service

Holding of JANTA KE DARBAR MEIN MUKHYAMANTRIInstitutionalised mechanism for Public Grievance Redressal

Mukhyamantri’s Gup-Shup session to provide an opportunity to all sections of people to give suggestions on various aspects of governance

Attack on corruption

GOOD GOVERNANCE

• Decentralization of power – power of sanction enhanced from Rs. 1 lac to 20 crores for Departments

• Enacted the Bihar Fiscal Responsibility & Budget Management Act 2006 (FRBM) to eliminate the revenue deficit by 2008-09

• To raise non-tax revenues

FISCAL REFORMS

• To prescribe norms for prioritization of capital expenditure & pursue expenditure policies

• Presented the state’s first Medium-Term Policy Statement

• Full Budget before March 31

• Finance Bill was presented for the first time in 15 years

• Presentation of White Paper on the state of finances before the legislature

FISCAL REFORMS

50% Reservation for Women in Panchayat Election and reservation for EBCs

50% reservation for women in appointment of over 2.36 lakh teachers

Empowerment of long-deprived sections of society

INDUSTRYINDUSTRY

Industrial Growth low at 0.38% during 10th Plan as

against National average of 7.8%.

Lack of quality infrastructure, inadequate finance and

credit facilities for availability of power & lack of

entrepreneurship are the reasons.

Bifurcation of the State industrial base and

infrastructure went to Jharkhand.

STATUS

National goal for industrial sector & manufacturing during 11th Plan is 10% & 12% respectively.

For Bihar to contribute to achieving these growth rates the goal for its industrial growth rate as to be at least 15%.

The industrial growth in areas in which the State has comparative advantage such as

Agro processingHandlooms & TextilesHandicraftsLeatherDrugs & Pharmaceuticals

are to be promoted.

VISION

For creation of employment opportunities

To develop rural economy.

To generate additional resources for Government for poverty alleviation.

NEED TO PROMOTE INDUSTRY

Value Addition Potential

Food Processing

Leather

Drugs & Pharmaceuticals

Textile

Downstream petrochemicals engineering.

Access to market.

Out migration of skilled and un-skilled labours.

STRENGTHS

Major impediments to investmentAbsence of long term policies, non implementation/ reversal of policy and approach of contract.

Inflexibility of labour laws.

Poor infrastructure – Government has already initiated steps to remove impediments. They are:-

Creation of enabling environment, legislative action, administrative reforms.

Improvement in public delivery system.

INVESTMENT CLIMATE

Bihar Single Window Clearance Act-2006

Bihar Infrastructure Development Enabling Act 2006.

New Industrial Policy -2006

Price Preference Policy- 2006

New Policy Initiatives for Entertainment, Tea Processing and Sugar Sectors - 2006.

Policy for establishing higher Technical Institutions in Private Sector - 2006.

Simplification of VAT Regime - 2006.

RECENT POLICY INITIATIVES

New Industrial Policy, 2006

Salient Features:

- Exemption from Stamp Duty & Registration Fees.

- Land allotment at concessional rates.

- Reimbursement of 80% of VAT deposited.

- Incentives upto 50% on captive power generation.

- Packages for rehabilitation of closed & sick units.

GROWTH PROMOTING POLICIES

Sugar Incentive Policy

Reimbursement of Central Excise Duty on Sugar.

Exemption of purchase tax on sugar.

Exemption from Stamp Duty & Registration Fees.

Grant of 10% subsidy on capital investment with a ceiling of Rs.10 crore.

Exemption of administrative charge on molasses.

Reimbursement of VAT on molasses.

Grant for 10% subsidy on capital investment with a ceiling of 3.5 crore.

Exemption of electricity duty on co-generation power laying of transmission line from factory to the grid station by Electricity Board.

GROWTH PROMOTING POLICIES

Salient features of the new Policy on the anvil.

Sandy/ non agriculture land or one crop land to be preferred.

Existing agriculture farms to be utilised for agro based industries, so as to reduce land acquisition to minimum.

Compensation

Additional compensation amount to be offered over and above the rates provided under the land acquisition act.

LAND POLICY

Employment

Employment of one member from displaced family to be assured.

Additional 80 days of guaranteed employment over & above 100 days under NREGP, to agricultural labourers.

LAND POLICY

Total No. of Investment proposal approved in the last 6 months by SIPB 54

Investment in Proposals approved 12,000cr

Direct Employment generation potential 20,000

e-governance project launched to monitor implementation of programmes, for expeditious decision and for transparency in governance.

MILESTONES

19.72

284.76

14.81 11.75 14.52

0

50

100

150

200

250

300

2002-03 2003-04 2004-05 2005-06 2006-07

YEAR

Rs.

in C

rore

PLAN EXPENDITURE

Food Processing

Dairy

Sugar Sector

Textile Sector

Tourism Sector

Drugs & Pharmaceuticals

Leather

Service Sector (Hotels, Hospitality etc.)

Information Technology

Automobile/ Auto components

Agricultural Implements including Tractors.

AREAS OF OPPORTUNITY

Traditionally, one of major sugarcane growing states

Lowest sugar recovery in the state – 9.45 % against national figure of 10.36 %

Most sugar mills closed down

OPPORTUNITIES – SUGAR INDUSTRY

New Incentive Policies for Sugar Sector resulted in 14 green field proposals from sugar majors such as M/s Rajshree Sugars, Indian Glycols etc. Sugarcane cultivation area can be increased manifoldAppropriate land resources along with suitable climate available Investment in Sugar and ethanol production need of hourExpansion proposals for the existing Private Sector Sugar Mills received.

OPPORTUNITIES – SUGAR INDUSTRY

State has taken appropriate measures

To promote new high yielding varieties

Development of tissue culture labs

Coverage under tube well irrigation programme

Revitalisation of closed sugar mills

OPPORTUNITIES – SUGAR INDUSTRY

Total number of weavers in the State is more than 90,000.

Strong weaving traditions in the state.

Bhagalpur known as leading silk city.

Gaya – another major weaving centre –around 8000 powerlooms operational.

Most of textile centres in state on decline, producing low value goods.

Need of the hour- To move up the value added chain.

Skilled and Cheap labour available.

TEXTILE INDUSTRY

Strong traditional handloom clusters in the districts of Bhagalpur, Gaya, Nalanda, Darbhanga, Madhubani, Siwan, Patna.

Infrastructure Leasing and Financial Services is preparing Project Report for Textile Parks and also for Cluster Development Programmes.

Govt. have announced series of measures for improving the competitiveness.

Action already initiated for strengthening the training institutions.

Training in Computer Aided Design has been introduced.

Nathnagar Silk Institute is being revamped and strengthened.

TEXTILE INDUSTRY

Design Centre at Patna and Dye & Processing Centre at Nalanda & Darbhanga are being strengthened.

Schemes for modernizing looms & construction of work sheds are under implementation.

TEXTILE INDUSTRY

• 1145 Agriculture graduates trained in agri clinic /agri-business management • Hard working farmers

QUALITY HUMAN RESOURCES

•Annual Rainfall – 1297.2 mm.•Irrigation Potential

Surface water – 6.33 million HaGround water – 4.85 million HaTotal – 11.19 million Ha

•Irrigated Area – 4.88 million Ha

QUALITY WATER RESOURCES

* Type – Alluvial Plain *Texture –Loam* pH 6.5–7.5 *Medium to rich in NPK

QUALITY LAND RESOURCES

AGRICULTURE IS CORE COMPETENCE OF BIHAR

WHAT AILED AGRICULTURE

• Inadequate Market- low prices & low income

• No vision and policy

• No respectability and attraction in farming

• Basic infrastructure, like soil testing, etc. notavailable

• No farmer accountable efficient delivery machinery

• Dormant Research & Development

MARKET INITIATIVES

Repeal of Agriculture Produce Market Act

Promotion of farmer interest groups and its federations

Encouragement to Private & Co operative Markets

Encouragement to private investment

MARKET RESPONSE

• Widespread enthusiasm among farmers• Investment proposal for 24 sugarcane based

& 4 maize based Industries• Sugarcane production to be increased 10

fold in 2-3 years• Proposals for export of fruits and vegetables

POLICY INITIATIVES

Bihar to be compared to the National Best not National Average!!!

5% Growth rate for food grains, 6% for vegetable & 10% for fruit production

Focus on Maize, Sugarcane, Aromatic Rice, Fruits and vegetables

Market led growth in production

contd…

POLICY INITIATIVESBetter Nutrient Management including organic manures & vermi-culture

Mechanization and conservation

Integrated Pest Management

Natural Resource management

Risk management

contd…

RESTORING CONFIDENCE IN FARMING

Best Farmers to be rewarded

‘Kisan Sri’ and a cash prize of 1 lakh at block level (No.534)‘Kisan Bhusan’ and a cash prize of 2 lakh at district level (No.38)‘Kisan Ratna’ and a cash prize of 5 lakh at state level (No.1)To to be nominated for ‘Padma’ Awards

RESTORING CONFIDENCE IN FARMING

Constitution of

“Kisan Aayog”( Farmers’ Commission)

to look into the problems of farmers

BUILDING BASIC INFRASTRUCTURE FOR RESEARCH AND EDUCATION

Establishment of College of Horticulture

Establishment of New Colleges of Agriculture

Establishment of College of Agri-Business Management

Strengthening Bio Technology Research

contd…

Strengthening of Rajendra Agriculture University and its constituent colleges of

Agriculture, Veterinary, Dairy Technology, Fisheries, Agriculture Engineering andHome science

contd…

BUILDING BASIC INFRASTRUCTURE FOR RESEARCH AND EDUCATION

BUILDING BASIC INFRASTRUCTURE FOR QUALITY ENFORCEMENT

ESTABLISHMENT OF INFRASTRUCTURE FOR

Soil testing at block levelSeed testing at district levelMicro nutrient testing at divisional levelsFertilizer testing Pesticide testing Pesticide residue testing Bio control laboratories

BUILDING BASIC INFRASTRUCTURE FOR SEED SUPPLY

Revival of Seed production by Bihar Rajya Beej NigamRevival of Seed production on Govt. FarmsEstablishment of Pusa Seed SocietySeed production by R.A.U & K.V.KSeed production by farmers in seed villagesPromotion of Private seed companies

REORGANIZATION OF PROGRAMME DELIVERY INSTITUTIONS

All existing models of extension to be merged into one ATMA created in all districtsKVK created in all districtsBlock and District levels to be strengthenedPromotion of PPP mode in extension & executionUse of ICT in extensionFarmers to be involved in extension

INFRASTRUCTURE - ROADS

• The State has

- 3629 Kms of National Highways

- 3232 Kms of State Highways

- 7714 Kms of Major District Roads

• The State had not done work of more than 25 Crores under Plan in any one year for the past 5 years.

• The allocations under Plan prior to our taking office was as follows:

Financial Year Amount in Crore

2004-05 - 15.31

2003-04 - 9.65

2002-03 - 24.70

2001-02 - 14.80

INHERITANCE

STATEMENT OF INTENT

In three years the State will have Road Infrastructure which will rival the best in the country

All major corridors to be 4-laned:

• 718 Kms being 4-laned under Golden Quadrilateral and East-West Corridor programmes - progress expedited by ensuring swift land acquisition, environmental clearances, shifting of utilities and providing a sense of security –progress on these now much better than in neighbouring states. Bihar sector of GQ nearing completion.

INFRASTRUCTURE – ROADS

4-laning (contd…)

• 890 Kms to be 4-laned under NHDP-III –earlier in Phase B as major companies were reluctant to come to Bihar for PPP projects – now all major companies in the road sector have expressed interest and NHDP-III programmes in Bihar decided to be shifted to Phase A by GoI.

4-laning (contd…)

• Over 1900 Kms are being 4-laned

− 205 Kms under NHDP-I

− 513 Kms under NHDP-II

− 890 Kms under NHDP-III

− 245 Kms under Buddhist Circuit Project

− 127 Kms State Highways (under BOT)

INFRASTRUCTURE – State Highways

• All State Highways being 2-laned- DPRs prepared for 2045 Kms (22

packages)

- 10 Packages (984 Kms) – tendered

- 11 Packages (900 Kms+) - DPRs approved – to be tendered in the next 15 days.

- 1 Package – DPR pending approval

• 1054 Kms – Newly declared State Highways –DPRs under preparation

• Major District Roads – being upgraded to intermediate lane

- 4000 Kms - tenders received – work allotment in progress

- 509 Kms – work in progress under RIDF

- Another 2000 Kms to be taken up in 2007-08

• Patna Roads Project – 157 Crores - Tenders received – under consideration

• Works worth – Rs. 494 Crores in progress under Plan

INFRASTRUCTURE – Major District Roads

Total anticipated expenditure in the major roads

sector in the next three years:

- 4-Laning - 11400 Crores (NHAI)

- State Highways - 4000 Crores

- Major District Roads - 2500 Crores

Total - 17,900 Crores

INFRASTRUCTURE – ROADS contd…

• The State Govt. shall provide all weather connectivity to all unconnected villages − With a population of 1000 and above within the

next three years− With a population between 500 – 999 within the

next five years− Villages with a population of below 500 in three

years thereafter.• Funding

− PMGSY (Pradhan Mantri Gram Sadak Yojana)− Mukhya Mantri Gram Sadak Yojana− State Plan

RURAL ROADS

• Works taken up

− Construction of 2400 Km of link routes and upgradation of 2000 Km of through routes costing Rs. 1416.88 Crores under PradhanMantri Gram Sadak Yojana

− Construction of 1000 Km of link routes costing Rs. 300 Crores under Mukhya Mantri Gram Sadak Yojana

− Upgradation of 2460 Km of through routes costing Rs. 599 Crores under State Plan

RURAL ROADS contd…

Mukhya Mantri Setu Nirman Yojana

• To cater to

– Unbridged gaps

– Replacement of narrow and dilapidated bridges

– Requirement of additional waterway in North Bihar roads that are regularly breached by floods

• People-driven programme – priority list decided by people’s representatives

• Bridge works worth Rs. 900 Crores taken up

• Outlay - increased the outlay under Plan by 24 times to 678 Crores.

• Systems - rationalised the procedures for Technical Sanction and Administrative Approval - DPRs prepared - Technical Sanction & Administrative Approvals given -tenders invited for 1550 Crores within 3 to 4 months of the financial year.

INTERVENTIONS

• Standardised systems for contracting and quality control to bring it in tune with current industry best practices

- Contract Management - introduced the two bid system.

- Introduced Standard Bidding Document –providing incentives for early completion and disincentives for time over runs

- Provided for quick measurements and release of payments for work done.

- Decided that no time extension shall be allowed –except in cases of force majure (A review of schemes taken up in the past 15 years indicated that no scheme had been completed within time)

INTERVENTIONS contd…

• Quality Control - increased the defect liability

period to three years.

- Restarted the almost defunct quality control

laboratories

• Construction Capacity - steps to enhance

capacity

- by tying up with banks to provide loans to

contractors to procure machinery

- by National tendering so as to mobilize

construction capacity from other States

INTERVENTIONS contd…

New Power Policy on the anvil whose CORE COMPONENTS are :-

Augment generation and distribution by encouraging Private investment

Bring down Average Transmission and Commercial losses (AT&C) by 3% p.a. in the next five years

Stop cross subsidy and recover costs

POWER REFORMS

16,0002000Nuclear Power Project5

16,00020008 X 500 / 4 X 1000

Pirpainti T.P.S., Bhagalpur4

59,3507750Total :=>

5750

2000

2000

500250

Total Capacity

(MW)

23350

8000

16000

22501100

Estimated cost(Rs. in crore)

4 X 500

8 X 500 / 4 X 1000

2 x 250 1 x 250

Capacity (MW)

MTPS Stage – IExtension: Stage – II

1

Total

Katihar TPS:3

Nabinagar TPS2

New ProjectsSl. No

PROPOSED THERMAL PROJECTS TO AUGMENT GENERATION

NIT has been issued for tariff based competitive bidding for RFQ and offers received from national industry leaders like TATA, RELIANCE, CESC etc

• Shell companies being formed to secure coal linkage, environment clearance, land acquisition etc.

PROPOSED THERMAL PROJECTS

SEB is being re-organized into 8 companies. Power Finance Corporation appointed consultants for implementation

State Regulatory Commission is in place and application filed for tariff revision

POWER REFORMS

Appointment of Franchisee in all 11 KV distribution lines to be completed by Nov. 2006 for IMPROVING CUSTOMER SERVICES & BOOSTING revenue collection

Already 31 such lines have been handed over to private parties for maintenance, minor repairs, fuse calls, billing and revenue collection and revenue has increased substantially in most of them and in some nearly by 100%

POWER REFORMS

HYDRO POWER IN BIHAR

After partition Bihar’s hydro power potential had been estimated at 3318 MW, the break up of which is as follows:-Small projects (upto 25 MW capacity) MW46 projects 72 MWBig (above 25 MW capacity)Indrapuri Reservoir Project 450 MWPumped Storage Plants 2570 MW Kosi river (Run of River) 226 MW

Steps have been initiated to renovate and modernize the KosiHydro-power Station (19.2 MW) which has been running in recent years at a derated capacity of 1 MW

The pace of urbanisation has been slower in India as compared to other countries in the world.

LEVEL OF URBANISATION

11.78

17.3

3032.1

27.8

47

1951 2001

ChinaIndiaWorld

% of urban population% of urban population

URBAN INDICATORS

• The level of urbanisation in Bihar (10.5%) is much below the national average (27.78%); way behind states like Maharastra (42.4%).

• Using per capita water supply as a surrogate variable, Bihar (61 litres per day) is woefully below the National average (142 litres per day) and that of Maharastra (175 liter per day) in civic amenities.

• Urban poverty in Bihar (32.91%) is much above the national average of 23.62%.

81

219

7737

623

0

100

200

300

400

500

600

700

2002-03 2003-04 2004-05 2005-06 2006-07Year

PLAN EXPENDITURE/OUTLAY (in Rs. crore)

•• Effective implementation of Effective implementation of decentralisationdecentralisationinitiatives as envisaged in 74th CAA. initiatives as envisaged in 74th CAA.

•• Urban Land (Ceiling and Regulation) Act has been Urban Land (Ceiling and Regulation) Act has been repealed. repealed.

•• The Apartment Ownership Act which had severe The Apartment Ownership Act which had severe shortcomings, restricting investment in the sector, shortcomings, restricting investment in the sector, has been amended in August 2006.has been amended in August 2006.

•• Reform of Rent Control / Municipal Law has been Reform of Rent Control / Municipal Law has been finalised.finalised.

•• Rationalisation of stamp duty Rationalisation of stamp duty -- brought down from brought down from the existing 18% to 10% in May 2006, with a the existing 18% to 10% in May 2006, with a target to reach 5% in 7 years. target to reach 5% in 7 years.

•• EE--governance governance -- Introduction of a system of Introduction of a system of ee--governance using IT application, GIS and MIS governance using IT application, GIS and MIS for for various urban services and reform of property various urban services and reform of property tax.tax.

URBAN REFORM INITIATIVES

•• ByeBye--laws have been revised in May 2006 to laws have been revised in May 2006 to streamline streamline the approval process for construction of buildings.the approval process for construction of buildings.

•• In order to attract investment in multiplexes and malls, In order to attract investment in multiplexes and malls, building byebuilding bye--laws, cinema rules have been laws, cinema rules have been amended in amended in August 2006. August 2006.

•• Building byeBuilding bye--laws have been amended in April 2006 to laws have been amended in April 2006 to incorporate structural safety norms, rainwater incorporate structural safety norms, rainwater harvesting and provision for disabled persons etc. harvesting and provision for disabled persons etc.

•• State Government has computerised registration of land State Government has computerised registration of land and property, and property title certification. and property, and property title certification.

•• In several In several ULBsULBs Public Private Participation Public Private Participation projects projects have been experimented.have been experimented.

URBAN REFORM INITIATIVES URBAN REFORM INITIATIVES

INVESTMENT IN URBAN INFRASTRUCTURE

• Emphasis on creating and augmenting basic infrastructure facilities in water supply, sewerage, storm water drainage, solid waste management, roads and bridges in all the 122 ULBs in the State.

• Master Plans and GIS Mapping of major towns have been taken up.

• The City Development Plan for Patna and Bodh-Gaya under the National Urban Renewal Mission have been posed to the Government of India, envisaging an investment of Rs. 3580 crore for Patna, (posed for JBIC assistance) and Rs. 420 crore for Bodh-Gaya.

• Patna Regional Development Authority to enter into project preparation and partnership agreement with IDFC for Urban Infrastructure projects.

INVESTMENT OPPORTUNITIES

There is tremendous opportunity for both private and public sector investment in the urban sector in Bihar:

Multiplexes and Malls Housing Complexes Mass transit systems TourismCommunication facilitiesBasic infrastructure such as water supply, drainage, solid waste management.

• Birthplace of two religions – Buddhism & Jainism and of the 10th Guru of the Sikhs

• Vision for exploiting the comparative advantage –− Provide world class connectivity – air

connectivity, expressways− Construction of 5 Star Hotels, Golf Courses,

Yoga and Meditation Centres at Gaya, BodhGaya, Rajgir, Pawapuri & Vaishali – market these as centres for peace and rejuvenation

− International University at Nalanda

TOURISM

First Steps ….• Development of Airport of international

standard - International airport at Gaya -flights from Thailand etc – land for extension being made available.

• International Golf Course (18 Holes) – designed by PGA - Land acquired at Bodh Gaya

Further Steps…• Development of Natural Hot Springs at Rajgir• International Conventional Centre at Nalanda /

Rajgir• Consultant from WTO visiting to draw strategic

plan

TOURISM

OPPORTUNITIES IN NALANDA-RAJGIR-BODH GAYA

Conceptualization of the development of the entire regionSome of the projects at different stages of development

• University of Nalanda• International Convention Centre• International Golf Course (18 Holes)• Development of Airport of international standard• Integrated Forest Dev Project (Eco Tourism)• Development of Hot Water Spring (Health Tourism)• Hotels and Resorts/ Water Sports• Ordinance Factory, CRPF Training Centre, PTC, Sainik

School…already coming up• Ordinance Factory, CRPF Training Centre, PTC, Sainik

School…already coming up• Ordinance Factory, CRPF Training Centre, PTC, Sainik

School…already coming up• Virayatan (Jain Centre), Nalanda Maha Vihar: existing

PATH BREAKING INITIATIVES

Addressing quality of secondary education

Additional rooms, repairs, games and sports, computers

Infrastructure improvement

Expansion of access by 33%12,000 backlog, 10,000 additional teachers

Expansion of access to secondary education

Commitment to equal opportunity and social justice

Implementing the NPE 1986/92 and Right to Free Education (21A)

Common School Commission

Towards free education and equity

CCT- uniform,stationeries, TLM, improved MDM services

For children

40 children per CR in 2-3 years,quality improvement

Integrated school development approach

Make a ‘school’, not add classrooms

40:1 (PTR), conditions for improved GER and enrolment of out-of-school children , women teacher- 40%.

Decentralized (PRI), technology driven, merit based ,transparency abolish para-teachers

Recruit 2.36 lakh elm and sec school teachers

ImpactSalient featuresInitiatives

OPPORTUNITIES AHEAD

To bring them on the central university pattern, to give autonomy and facilitate raising of private finances, scope for PPP

Comprehensive amendments of existing university laws and restructuring HE bodies

Scope for PPP in secondary and senior secondary schools in the area of skill building, vocational /IT..

Skill building, vocational courses and IT in secondary schools

State’s resolve, opportunities to participate in the development of these institutions

Establishment of Chankya National Law University and BIT extension

An international university of excellence being set up at Nalanda, land acquisition has begun, a harmonious combination of classical and modern courses planned, scope for PPP

The University of Nalanda

Opportunities for opening private technical & professional institutions and affiliate with this University, market of 30,000 students migrating from the state for technical courses, scope for PPP

Aryabhatta National University of Technology and Management Bill 2006

Investment opportunitiesEnabling platform

GoalTo Raise the Infrastructure and

Services in Health Sector to Indian Public Health Standard.

Where we startedFull Immunization-11% (India 54%; Census-2001)

Maternal Mortality Rate-452 (India 407; NFHS-II)

Patient attendance at PHC - in Jan 2006 – Avg.per PHC 39 per monthMore than 85 % patients are going to Pvt. Sector

Recent Initiatives

• Infrastructure• Public Private Partnership/ Out Sourcing of Services• Routine Immunization• Drug Distribution

Average No. of Patients Visited Per Month Per PHC

Average No. of Patients Visited

39

6481010 868

13031542

27273015

0

500

1000

1500

2000

2500

3000

3500

Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06

Month

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Why Private Investment in Health Sector ?

• Large no. of patients go out side for specialized treatment.

• In the AIIMS, about 1.5 million OPD and 80,000 IPD cases are treated annually.

• According to un-official estimates up to 50% of the patients treated in AIIMS are from Bihar.

Limited super Specialty Services available

Private investment is required in the State of Bihar

• Govt. has adopted two mechanism to facilitate private investment

1. Private Investment

2. Investment through Public Private Partnership

Ambulance Services

• Rogi Kalyan Samitis (RKS) to arrange for ambulance in all the hospitals.

• Max. rate of Rs.500/day as rent Contract for one year.

• Fuel Charges per Km to be decided by RKS

• Ambulance User charges to be decided by RKS

PPP

•Pathology Services

•Radiology Services

•Hospital Maintenance

•Ambulance Services

•Mobile Medical Units

•Operationalisation of APHCs

APHC- Outsourcing

• 36 APHCs outsourced, another 50 on the anvil

• Rs.6,28,906 per year per APHCService Package• General OPD • Immunization• Gynae services. • Routine pathological tests• Minor operations • Family planning operation (with the help

of PHC)• One ambulance for referring patientsManpower• One doctor and 5 para medics/assistants

PPP

•Pathology Services

•Radiology Services

•Hospital Maintenance

•Ambulance Services

•Mobile Medical Units

•Operationalisation of APHCs

FREE MEDICINE SUPPLY

• Free Medicine (13 essential OPD drugs and 24 IPD drugs, all drugs under national Programmes) to be given to patients.

• From November 2006 all expenses on Medicines for indoor patients will be provided free of Cost.

Hospital Maintenance Services– Maintenance of Hospital

Premises. – Generator Facility.– Cleanliness of Hospitals.– Washing– Diet.

Centralized rate contract finalized and each district given three

parties to choose from. 23 districts have already started

using these services

PPP

•Pathology Services

•Radiology Services

•Hospital Maintenance

•Ambulance Services

•Mobile Medical Units

•Operationalisation of APHCs

Investment already made for Infrastructural Development

Total15Referral Hospitals27District Hospitals

23Sub-Divisional Hospitals73APHCs398PHCs

Up gradation of Health Facilities76FRUs22ICUs11District Hospitals20Sub-Divisional Hospitals62PHCs751Health Sub-Centres

No.Construction of New Health Facilities

Rs.222 CroresRs. 2.43 crores

Rs 95 LakhsRs. 95 LakhsRs. 24 lakhsRs 23 lakhs

Rs. 34 LakhsRs. 6.42 CroresRs 4.91 Crores

Rs 60 LakhsRs 6.4 Lakhs

Unit Cost of Construction

Mobile Medical Unit (MMU)APAN ASPATAAL

• Rajbhra Consultants Pvt. Ltd. New Delhi @2.24 lacs/unit. Monitoring and Payment through DHS

Service Coverage• General OPD, • Gynae clinic• Infant and Child Care • Minor lab investigations,

Radiology Services • Minor surgical operations (where

specialist is available)• Emergency services

Man power- Total 13 staff including (2 doctors and 11 Para medics and assistants)

PPP

•Pathology Services

•Radiology Services

•Hospital Maintenance

•Ambulance Services

•Mobile Medical Units

•Operationalisation of APHCs

BACK

Promotional Policy for opening Private Medical Colleges

• Government will facilitate availability of land at Market rate .

• 50% concession on prevailing rates will be given onregistration fee & stamp duty .

• Govt.will provide road, electricity and water up to one point within the boundary of the Institution.

• Govt. will provide 50% of the cost (maximum Rs.75,000) of preparation of DPR to the private party.

• Private party is required to start construction within 6 monthsof allotment of land.

Govt. has taken decision to open private Medical colleges ; 7 proposals have already been received out of which NoC has been granted in 2 cases

Locations No. of Proposals NoC provided

Saharsa 2 -Bettiah 1 -Sasaram 1 1Arrah 2 1Patna 1 -

Opportunity for Private Sector Investment

1. Land available for Medical College/Hospitals with Housing Board at Patna.

2. Land also available with BIADA at Patna, Fatuha, Hazipur, Muzaffarpur, Darbhanga, Purnia, Bhagalpur, Katihar, Madhepura.

3. Private land in the State is available at much cheaper rate than in other States

•Private Investment

• Investment through Public Private Partnership

Opportunity of Investment in Pharmaceutical Sector

• In Bihar Total consumption of Drugs is worth Rs. 1500 Crores

• The value of Drugs Manufactured by Pharmaceutical Companies in Bihar is Rs. 50 Crores. (Including Aurvedic & Homeopathy)

• There is huge gap in consumption of drugs in the state & present manufacturing capacity.

• Untapped potential exists for setting up pharmaceutical firms in the state.

Pathology & Radiology-PPP • District hospitals to have Labs • Collection Centre at PHCs• Reports within 24 hours• Sen Diagnostics & Central Diagnostics -

19 districts each• Radiology- all 38 districts IGEMS

Silvassa• All units to be functional by Dec2006• Space being provided to them against

rent, no Investment by Government• Govt. patients to be charged for

identified tests as per the prefixed rates for both pathology & radiology. Party free to charge as per their rates for other tests.

• Party free to charge for all the tests as per their rates from other patients

PPP

•Pathology Services

•Radiology Services

•Hospital Maintenance

•Ambulance Services

•Mobile Medical Units

•Operationalisation of APHCs

PPPWe want the doctors/paramedics to be free from the management of support services, so that they can concentrate on providing the specialized services they are meant for.

• Pathology Services.• Radiology Services• Hospital maintenance

• Ambulance services

• Mobile Medical Units• Operationalisation of APHCs

Recent Initiatives

•Infrastructure

•Public Private partnership/Out Sourcing of Services

•Manpower

•Routine Immunization

•Drug distribution

Setting up super specialty center through PPP mode

Projects are invited for setting up super Projects are invited for setting up super specialty centers on Govt. lands/hospitals specialty centers on Govt. lands/hospitals through PPP, employing competitive bidding through PPP, employing competitive bidding process.process.

Locations for Super Specialty Centers Locations for Super Specialty Centers --

Patna Medical College , PatnaNalanda Medical College, Patna S.K.M. Medical Collage, MuzaffarpurA.N. M. Medical College, GayaJ.L.N. Medical College, BhagalpurIGIMS, PatnaJay Prabha Hospital, PatnaGuru Govind Singh Hospital, Patna CityPilgrim Hospital, Gaya

• IDFC has already been contacted for preparation of DPR & bidding documents.

•Private Investment

• Investment through Public Private Partnership

Routine Immunization in Bihar

Year 2006 declared as “Routine Immunization Year” by Chief Minister.

Alternate vaccine delivery system to the Sub- Centre through Private Couriers instituted

In addition to Wednesday, Saturday declared as regular RI days

Full Immunization increased from 11% to 43%

Recent Initiatives

•Infrastructure

•Public Private partnership/Out Sourcing of Services

•Manpower

•Routine Immunization

•Drug distribution

MAJOR INITIATIVES IN RURAL DEVELOPMENT

BELOW POVERTY LINE (BPL) LISTEarlier BPL list very defective

Special Gram Sabhas held on same dates throughout State for intensive verification of Household Survey list.

Spot verification again of all families in draft lists with scores between 0 and 20, and SC, ST and Extremely Backward Caste families scoring above 20.

State-level Observers deputed for spot verification

Appeals decided by SDO & DM on basis of this process

Final computerised list ready (will be placed on website after cut-off is decided)

Ranking as per numerical scores with poorest at top and less poor below

Two reputed local institutions, AN Sinha Institute & ADRI, doing random sample verification

BPL list will ensure targeted delivery of basic necessities of ration, education, health services including free medicines to poorest

INDIRA AVAS YOJANASeveral complaints about corruption & ineligible families being given IAY

IAY allotments now strictly as per prioritised BPL waiting list after verifying that family is really houseless or has kuccha house

Minimum 60% for SC, ST

Accounts opened in Banks in name of beneficiaries

Payments @ Rs.24,000 each out of Rs.25,000 so beneficiaries don’t have to approach authorities repeatedly

Payments not to individuals but to groups of beneficiaries through consolidated cheque for whole group to Bank along with advice slip with names of beneficiaries

Beneficiaries being made into Self Help Groups so that they can go to Bank as group & buy house construction material collectively with greater bargaining power

Beneficiaries also advised about programme & warned not to misuse the money

New process eliminates discretion of officials in selection & payment

SWARNAJAYANTI GRAM SWAROZGAR YOJANA

Monthly meetings & joint reporting by DRDA & Banks at Block & District levels

Stress on Self Help Groups

GRAM VIKAS SHIVIR

Like Janata ke Darbar mein Mukhya Mantri, Gram VikasShivir takes entire Block-level Govt machinery of all departments to Gram Panchayat

Every Wednesday, BDO, Revenue Officer (Anchal Adhikari), Block Medical Officer, Animal Husbandry Officer, other Extension Officers of all departments, Officer-in-Charge of Police Station camp on rotational basis in different Gram Panchayats and dispose of work there

Gram Sabhas held, Govt schemes explained, inspections conducted, pending revenue cases disposed of, public grievances attended to

All Gram Panchayats in Block will be covered in 10 to 20 weeks depending upon number of Panchayats in Block

This will also activate & institutionalise Gram Sabhas

RURAL EMPLOYMENT GUARANTEE SCHEME

Out of 38 districts, Centre notified 23 under National Rural Employment Guarantee Act

Bihar covered remaining 15 districts under State Rural Employment Guarantee Scheme identical to NREGS

Centre requested to permit merging Sampoorna GrameenRozgar Yojana (SGRY) into SREGS