city business plan - hajipur

8/9/2019 City Business Plan - Hajipur

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CITY

BUSINESS

PLAN

TheSupportProgrammeforUrbanReforminBihar(SPUR)isasixyearspartnershipprojectbetweenthe

Govt. of Bihar and the Department for International development, U.K. Systematic local economic

development is one of the key components of SPUR. As a first step, City Business Plans have been

preparedforthe29projecttowns.

City Business Plan is an operational tool for mapping economic development opportunities of urban

areas, enabling effective interface between government agencies and business communities for

attracting investment and improving business climate of towns. It is aimed to identify skill gaps and

design

and

implement

market

based

skill

and

enterprise

development

programs.

CBPs

also

provide

road

maps forenterprisedevelopment,promote localbusinessopportunities,andstreamline theapproval

processes forbusiness startupsaswellas to strengthen fiscaland financial capacitiesofurban local

bodies for improving local infrastructure.CBPsof14 towns (Patna,Danapur,Phulwarisharif,Khagaul,

Ara, Chhapra, Biharsharif, Siwan, Hajipur, Muzaffarpur, Motihari, Bettiah, Darbhanga and Sitamarhi)

have been prepared and CBPs of 13 towns (Gaya, Bodhgaya, DehrionSone, Aurangabad, Nawada,

Sasaram,Purnea,Katihar,Saharsa,Kishanganj,Bhagalpur,Munger&Jamalpur)areinthefinalstagesof

preparation.

SPURwould like to place the City Business Plans forwider review and consultation. All queries/

suggestions/remarkscanbesenttoasinha.spur@ipeglobal.comwithsubjectlineCityBusinessPlan

for________(town).


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City Business Plan - Hajipur

Final Report Page 1

SUPPORT PROGRAMME FOR URBAN REFORMS IN BIHAR

(SPUR)

Final Report for

City Business Plan Hajipur

Submitted by:

FEEDBACK INFRASTRUCTURE SERVICES PRIVATE LIMITED


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Final Report Page 2

DISCLAIMER

The information in this Report has been prepared based on information collected from primary and

secondary sources. Wherever information was not readily available, reasonable assumptions have

been made, in good faith to draw meaningful inferences and these have been mentioned in therespective sections of the report. All such assumptions are subject to further corroboration based

on availability of information. The information and analysis presented in this Report is not and does

not purport to be comprehensive or to have been independently verified. This report has been

prepared by Feedback Infrastructure Services (P) Ltd for its client, Urban Development and

Housing Department, Govt. of Bihar for its use for furthering the project. No external agency shall

use any part of this report without the prior permission from Urban Development and Housing

Department and Feedback Infrastructure Services (P) Ltd.

The information contained in this Final Report is strictly confidential for the clients use only and isspecific to the particular project under specific circumstances and is not considered replicable or

suitable for other projects. The information and the report are also subject to updating, expansion,

revision and amendment. It does not, and does not purport to, contain all the information that may

be required.

This Report includes certain statements, estimates, projections and forecasts. Such statements,

estimates, projections, targets and forecasts are based on the information provided by the

concerned authorities and reasonable assumptions made by the management and employees of

Feedback Infrastructure Services (P) Ltd. No representation or warranty is given as to the

reasonableness of estimates or the assumptions on which they may be based and nothing in this

Report is, or should be relied on as, a promise, representation or warranty.


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Final Report Page 3

Executive Summary

The City Profile: As per provisional reports of Census 2011 India, the population of Hajipur is

1,47,126, which makes it the 16thmost populous city in Bihar. The male and female population is

78,561 (53.4%) and 68,565 (46.4%) respectively. The sex ratio of Hajipur city is 873 per 1000

males, which is lower than that of Bihar state (916) and amongst the lowest among the cities ofBihar. The total literates in Hajipur city are 100,691 of which 57,537 are males while 43,154 are

females. The average literacy rate of Hajipur city is 79.26%, which is higher than the state literacy

rate of 63.8%, but again on the lower side amongst the cities. The male and female literacy rates are

73.23% (Bihar: 73.39%) and 62.93% (Bihar: 53.33%) respectively.

At present there are 39 wards in the Hajipur Municipal Corporation. Over the years the city has

harnessed the agricultural base to develop its industrial and tertiary sectors. The main working

population of Hajipur is 25% of the total population. There are three industrial areas in Hajipur, the

main one being the Hajipur Industrial Estate established by BIADA. There are 97 agro-based

industries in Hajipur and out of the 127 industries based in the Industrial Estate, a little more than

half are in operation.

The Municipal Corporation covers an area of 19.64 sq. kms. Unlike many cities in Bihar, Hajipur

does not show a corridor kind of development. The city has grown along the Muzaffarpur Road

with the River Gandhak and the Railway track acting as the outer limits of the city on Western side.

In the recent years development in the north eastern and south eastern sides of the city is being

observed. The areas beyond the Railway Line in the northern side of the city have seen growth of

new development nodes towards Vaishali and Muzaffarpur, which are growing at a rate that is

much higher than the city.

The entire Municipal Corporation has 98 employees from a total of 230 sanctioned posts, which

amounts to only 43% of the sanctioned strength. At an overall level, the Corporation had been ableto maintain a positive closing balance each year (2004-05 to 2009-10). Revenue through property

tax contributed 12% to the total revenue income of the Municipality. Both revenue account and

capital account has been accruing a substantial amount of surplus. Hajipur Municipality derived

18.0% (average 2008-09 to 2010-11) of its revenues from taxes and about 12% (average 2008-

09 to 2010-11) from non-tax sources, with grants providing a further 68% (average 2008-09 to

2010-11) of the revenues which reflects higher dependency on the government funds.

Growth of Economic Activities in Vaishali District

Sector 2001-02 2002-03 2003-04 2004-05

Primary Sector 50231 80688 52344 75578

Secondary Sector 10117 12354 11964 14171

Tertiary Sector 79205 83909 93727 102082

Total Local Economy 139553 176951 158035 191831


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Final Report Page 4

Economic Profile of Vaishali-Hajipur Region: Like in other parts of urban Bihar, recent trends

indicate gradual growth of the Tertiary sector, with an ever decreasing agricultural base.

Primary Sector:The share of primary activities in the district domestic product has increased by

50% from 2001-02 to 2004-05, which is largely due to diversification in agriculture and the

increase in agricultural productivity, due to better technological and scientific inputs in the

cropping techniques and management. As per the Economic Survey Report 2010-11, Vaishali

district was ranked second in the production of vegetables, fruits and flowers in 2008-09. Banana,

mango, litchi, guava, wheat and maize are the main agricultural products of the district. A huge

annual loss, amounting to 25 to 40% of the total fruits and vegetables produced, occurs on account

of poor methods of harvesting and transport facilities. This is due to poor pre and post harvest

management practices and lack of availability of appropriate fruit and vegetable processing

industries (FVPI).

The average annual production of fish in the state is nearly 2.61 lakh tonnes against the annual

demand of 4.56 lakh tonnes. Fish farming & development of sweet prawn and shrimp farming

practice, which fetch high value in international markets, have good potential in Hajipur. However,siltation of ponds, availability of fish seed and adequate, suitable preservation infrastructure and

outdated technology are serious impediments to the development of this sector. The district stands

at 20th position when compared against average milk yield, and at 19th position when compared

average milk density (Lit /per day /sq km) of all districts (National Dairy Development Board, April

2008). The challenges in the dairy sector are very poor coverage of veterinary and artificial

insemination services and paucity of cattle feed and its production.

Secondary Sector: With three industrial areas in Hajipur and its proximity to Patna, industry is one

of the priority sectors in the economy of the Vaishali-Hajipur region. However, it needs to be

regularized and linked to lucrative markets in a sustainable manner.

Growth of Secondary Sector in Vaishali District

Sector 2001-02 2002-03 2003-04 2004-05

Registered MFG. 2572 4242 2828 4397

Un regd. MFG. 7545 8112 9137 9774

Manufacturing MFG.

(Secondary Sector) 10117 12354 11964 14171Source: - Planning commission website; State District Domestic Product Bihar 2001 to 2005; Directorate of statistics and

Evaluation, Govt. of Bihar.

The town has some industrial development. A few manufacturing units like a medicinemanufacturing units and sugar mills are present.The industrial sector in Vaishali is dependent on

micro and artisan units. The micro units have almost doubled from 2007-08 to 2008-09. The

artisan units also increased in 2007-08, but growth stopped in 2008-09. There has been no growth

in the tiny industry since 2006 which had 114 units.


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Final Report Page 5

Types of Agro-based Enterprises in Vaishali District (Source: DIC Data)

The two technical institutes set up here are Central Institute of Plastic Engineering Technology

(CIPET)and National Institute of Pharmaceutical Education & Research (NIPER).The location

of these teaching institutions will definitely add to the industrial development of Vaishali-Hajipur

Region and in fact that of the entire state. The type of units here are varied - pharma and plastic,

food processing units like Britannia biscuits, bakeries, juice and soft drinks, fire-fighting vehicles

and accessories, poultry feed, PVC ropes and twine, packing materials, inverter and stabilizer

manufacture and so on. AnAgri Export Zonehas been established under APEDA, GoI for the export

of litchis in the Muzaffarpur-Vaishali litchi growing region. This is facing some infrastructural issueswhich have to be sorted out before it can take off successfully.

Growth of Tertiary Sector in District Vaishali

Sector2001-

02

2002-

03

2003-

04

2004-

05

Electricity, Gas & W.supply 2887 2899 3593 4307

Construction 7894 9577 9966 12359

Trade, Hotels & Restaurants 6135 7448 8582 9453

Railways 3720 3937 4301 4784

Transport by other means 3089 3565 3954 4873

Storage 118 140 123 148

Communication 2553 2775 3114 3463

Banking & Insurance 7423 7389 7842 7891

Real, Ownership of Dwel. B.Ser.& Legal 6076 6786 7874 8555

Public Administration 12080 10866 13040 13561

Other Services 27230 28527 31338 32688

Tertiary Sector 79205 83909 93727 102082

Dalmot,

Namkeen, Sevai

Manufacturing

6%

Sattu,Besan

production3%

Chayavan

Production

2%

Oil Production

21%

Achar

Manufacturing

26%Potato

Preservation10%

Rice Mill / Rice

Flake

Manufacturing

23%

Pulses Mill1%

Spice

Manufacturing

2%

Wheat

Production,

Grinding

6%


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Final Report Page 6

Tertiary Sector: The most robust service sectors in Hajipur presently are construction, trade and

hospitality and public administration sectors. This could be attributed to the fact that Hajipur

Industrial Estate and EPIP have several upcoming industries which involve the building up of

industrial sites and housing colonies, which in turn result in the proliferation of other support

services like trade and hospitality.

Issues and Challenges to Economic Growth

Micro Credit practices in Vaishali-Hajipur region are not well established . This is often a

deterring factor for growth of local, small and household industries. So these require deepening

and increased outreach. Low Crop Yield: Even though the region is rich in soil and water resources, its average yields of

Rice, Wheat, Maize and Sugarcane are only about 32, 44, 40 and 38 percent of the potential

yields, respectively. This is due to the lack of scientific cropping methods throughout the crop

cycle.

Limited support infrastructure for storage/processing

Poor Animal Husbandry practices: The cross bred cattle population is very low, which

impacts the milk production. The present quality and number of cattle are insufficient as

compared to the demand for milk and milk products. Fish & Poultry products are imported

from other districts to cater to the vast & growing demand.

Poor infrastructural facilities in commercial and residential areas, as a support for local

economic developmental activities.

Lack of trained manpowerfor processing, storage, marketing and branding

Perceived lack of positive governmental response to entrepreneurial ventures

Perceived lack of ease in business approval processes and transactions

Poor policy support for PPPs in Infrastructure development for Agro based Industries,

contract farming etc.

Larger and better developed urban agglomerations near Hajipur like Patna and

Muzaffarpur, tend to dwarf the town and resources are diverted to those centres.

No APMC act:Because the traders activities are now completely unregulated, non-transparenttransactions and price collusions are even more pronounced than they were under the APMC

system. Because of the lack of alternative marketing channels, small-scale farmers have no

choice but to utilize the current trader-dominated marketing system despite the rampant

exploitation.

Government schemes do not seem to have had the desired impact on productivity,

technology and marketability.

Investor confidencehas not yet been generatedin the region and state.

Negative Attitude of Financial Institutions: Though savings are high in Vaishali, the credit

deposit ratio is only 27% which is extremely poor. The local citizens have been victims of bank

apathy, as far as granting of loans is concerned.


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Final Report Page 7

Potential Sectors for Development in the Vaishali-Hajipur Region

Food Processing Sector:Based on the following linkages, agriculture, food processing and a range

of allied sectors can be assigned as the sector of prime economic significance in Vaishali-Hajipur

Region.

Supply side Linkages:- The rich soil of the region make it ideal for production of vast range of

grains, vegetables and flowers. Presence of water bodies create potential for raising fish

culture. Sizeable bovine population in the region ensures sufficient availability of milk for the

dairy processing industry.

Demand side Linkages:- Hajipur is well connected to the urban centre of Patna on one side

and has strong connectivity through national highways to other regions of economic

importance.

The Processed Food Industry within agriculture and allied sector is divided into the following broad

segments:

Primary Processed Foodwhich includes products such as packaged milk, unbranded ediblegrains, milled rice, flour, pulses, spices, and salt sold in packaged or non-packaged forms.

Value-added Processed Foodwhich includes products such as biscuits, bread, pickles, jams,jellies, chips and other snacks, sauces, crushes, syrups, tinned items, dehydrated food products,

herbal products, processed dairy products (ghee, paneer, cheese, butter), processed poultry,

processed fish products, confectionery, chocolates and alcoholic and non-alcoholic beverages.

Establishment of a Multi-Product Food Park (MPFP): In view of the linkages described above

and the primary and secondary processed foods in demand, the enhanced and varied agricultural

productivity of Vaishali-Hajipur region and its close proximity to large terminal markets, as well as

many other reasons, make it an appropriate location for the development of an MPFP. The GoB, in

their vision for the Food Processing sector in Bihar has already stated their plan to establish a Food

Park in the Muzaffarpur Vaishali region. Though this proposed Food Park may be located in theHajipur Industrial Estate, the EPIP or the AEZ or wherever else the State and local administration

can provide land for it in the Vaishali-Hajipur region, it will provide employment to the Hajipur

population, provided they are suitably skilled. The Field Collection and Primary Processing Centres

which will feed such a Facility will be located in the blocks and village areas, whereas the MPFP can

be located in the BIADA Industrial Estate in Hajipur, depending on land availability. A network of

Agri Clinics, Agri Business Centre/s and Preservation Infrastructure will have to be established and

integrated with the MPFP as a support to this complex.


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Final Report Page 8

Stakeholders in Multi-Product Food Park

Source: Mega Food park Scheme, MoFPI, GoI and Feedback Analysis

Agri-Clinics and Agri Business Centres (ABCs): The high agricultural productivity of this region

can be further enhanced to make the farming business more profitable for the cultivators. Agri-

Clinics & ABCs are envisaged to provide expert advice and services to farmers on varioustechnologies which would enhance productivity of crops/animals and ensure increased income to

farmers. The ATMA centre in Hajipur can be a facilitating agency for the agri-preneurs operating in

this field of business. The prospective agri businesses that have a potential and that can be

promoted in this region are:

Cropping practices, plant protection

Repair and servicing of traditional and modern equipments

Marketing/ Dealership of modern and appropriate technology driven implements like the

Chinese diesel engines and pump sets

Soil Health & Soil testing services

Grading, sorting, primary processing, packing and local marketing

Organic fertilizer and pesticides vermi composting could be linked with SHG clusters Post harvest technology & treatments to enhance shelf life,

Providing market and weather information

Cold storage and warehousing

Facilitating Market Linkages for local produce and products

Crop and animal insurance,


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Final Report Page 9

Clinical services for animals, feed and fodder management

Promotion of Organic Farming, Floriculture, Nurseries & Ploy/Green Houses: With the

establishment of the MPFP, it becomes essential to promote other livelihoods and support services

which will bolster this industry like Floriculture, Horticulture, Nurseries and Organic Farming.

These activities are already a part of the National Horticulture Missions plans in the state andtherefore funds are available for the same it is just a question of accessing them.

Organic farminghas been taken up as one of the priority initiatives by the state government

with a sum of Rs. 255 crore being sanctioned for organic farming promotion within a span of

five years. Organic and vermicompost fertilizers can be made available to farmers this can belinked to SHG activity. Training on organic farming can be provided to farmers this can belinked to skill-development providers and NGOs. Seed replacement programs can be organized

to distribute quality seeds among the farmers and marketing can be done through appropriate

channels established in the ABCs. The agri-clinic network and work of ATMA and KVK in

Hajipur can be made largely responsible for promoting the above strategies.

Floriculture:The Vaishali-Hajipur region has the 2ndrank in the state for flower production @

486.29 tns. (2008-09) with the production of marigold, jasmine and tuberoses being on the

higher side as compared to that in other districts. Technology transfer needs to be organsied by

the agri-clinic network, which should educate the producers about suitable techniques to

optimize quality of flower production. In order to ensure an organized floral industry in

Vaishali-Hajipur region, floral vending zones, as a market place for selling the floral produce,

should be established with the help of local private sector.

Nurseries & Ploy/Green Houses: Under the National Horticulture Mission Plan for 2010-11,

there is a plan to establish one nursery in Hajipur at a cost of Rs. 11.68 lakhs. The saplings /

seedlings sold here should be in keeping with the varieties of plants which are agro-climatically

suited for this area i.e. mango, litchi, banana, betel vine, cauliflower, brinjal, marigold, jasmine,

tuberose tubers and so on. Cultivation of vegetables/flowers under controlled conditions can

also be established by constructing Hi-Tech and Normal green houses, polyhouse/plastic

tunnel/ shade nets in Vaishali district to produce vegetable/flowers for sale during the off

season. This has already been implemented by Bharat Seeds and could be promoted as an

economic opportunity in this region. The NHM Plan has targeted to establish 5 such green

houses in 2010-11 with an outlay of Rs. 11.688 lakhs.

Development of Bio-Seed Research and Production Centres: There is already a growing

number of agri-preneurs who are engaged in the seed multiplication business in the Vaishali-Hajipur region and in Hajipur City 50-60 households engaged in this activity are located in Ward

No. 30. With the boost being given by the state to the seed production business, the main factor to

be addressed is that the entrepreneurs be given timely support in capacity building, finance,

certification and marketing linkages. The ABCs proposed can be accessed for help in this matter. A

bioseed production centre should be established in Hajipur on PPP basis such that improved quality

of fruits and vegetables, suited to the soil and climatic conditions of Vaishali, can be produced.


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Final Report Page 10

Dairy & Animal HusbandryA milk processing plant is being established in Hajipur which willsupply processed milk to COMPFED, which is branding milk products from Bihar by the name of

Sudha. Besides, there is scope for development of milk powder plant and factory for other milk

based products. In order to support dairy processing industry in Hajipur, appropriate and robust

backward and forward linkages have to be forged, an artificial insemination centre should be

established in Hajipur for introducing high quality breeds of cattle in the region and requisitefacilities should be provided to support animal husbandry such as veterinary clinics. Cattle and

poultry feed plants can also be viable business enterprises based on the development of this sector.

Fish waste from the pisciculture and aquaculture units in the region, can supply raw material to

these feed plants. In the District Development Plan of Vaishali (2011-12), the authorities had

planned to invest Rs. 1670.30 lakhs in dairy development.

Pisciculture (Fish Culture) & AquacultureCurrently fish production in the Vaishali-Hajipurregion forms only 3.16% of the total fish production of the state. Fish culture can promote

employment opportunities and become a source of income to small & marginal farmers. The

strategies for this are: augmentation of the production capacity of fish seeds by establishment of a

local seed production centre, brood banks and portable hatcheries on the lines of those being

promoted in Orissa, desiltation and conservation of water bodies like ponds and tanks through the

NREGA scheme, construction of inlet and outlet for easier passage in mauns for culture-based

fisheries, provision of critical infrastructure for post-harvest marketing including common

collection centres, improved cold chains, means of transport and linkages, establishing a proper fish

vending zone for trading and bringing together the bulk buyers and suppliers of fish in the district,

and developing institutional frameworks for establishment and facilitation of marketing linkages

and capacity building.

Apiary & Honey Production - Honey production, especially litchi honey, can become a unique

product of Vaishali district due to its strength of production of good quality litchi. Honey productioncould benefit from greater efforts to build an industrial cluster and by using better techniques.

Cluster areas should be demarcated where an integrated honey value chain can be developed, i.e.

right from beekeeping to processing of honey to packaging and transporting facilities. This will lead

to an agglomeration of similar industries in Hajipur creating an organized supply system of honey.

A honey processing plant has been proposed in Hajipur region this will assist in aggregationfacilities and developing uniform standards this can be located within the proposed MPFP. Placebranding is an important component of strategy to establish Hajipur as a premium honey

production centre. Public sector initiatives such as formation of beekeeping associations should be

launched to mobilize beekeepers, process and market branded honey of Vaishali. Adequate

financial support in terms of access to micro finance, formation of self help groups and provision of

subsidies should be provided to the beekeepers. Lease schemes can be set up for the equipment and

significant capacity building needs to be done. Pricing and retained margin is a key element of this

effort.

Promotion of Craft/Artisan Sector: Hajipur has traditional artisans who make products using

sikki grass, banana fiber and wood but do not have a commercially sustainable size of operation.

The strategies for this sectors are: Identification of craft clusters, appointing a private organization


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or an SPV which will act as an apex organization to support this sector in the region, formation and

support of handicraft SHGs, formal and legal registration of handicraft co-operatives/ SHGs/

federations, establishing of marketing linkages, support with training, establishing a cadre of

master trainers to promote the crafts and modern design inputs from market-based and premier

design agencies. Apex agencies like the Export Promotion Council (EPCH) sponsored by the

Ministry of Textiles (GoI), All India Artisans and Craftworkers Welfare Association (Craftmark) andthe State agencies like the Industries Department which houses the Bihar State Handloom,

Powerloom & Handicraft Corporation should promote these handicrafts in a focused and integrated

manner so that finances and incentives also are utilized in the most optimal way. An integrated

approach to developing the sector will ensure that there is vertical integration of the components of

value chain right from supply of raw material to enhancing and managing the processing activity to

the sale of the finished product to end users.

Tourism & Hospitality Sector - Vaishali falls under Buddhist, Ramayana and Sufi tourist circuit

promoted by Bihar State Tourism Development Corporation. As such, it does have potential as a

tourist destination provided it is taken up is a focused manner and PPP opportunities are offered to

entrepreneurs for developing this sector. The recommendations for this sector are: conservation of

historic sites and improvement of on-site facilities, publicizing and promoting it as a tourist

destination, development of some tourist infrastructure like a budget hotel, a tourist shopping

complex including the sale of local arts and crafts, a spa-wellness-spirituality- nature cure centre,

providing water sports, an amusement park and ecological tours on the litchi and banana

plantations, creation of a trained tourist guide cadre and transport linkages. With the boost in

tourism, the hospitality sector will have to be necessarily developed in tandem. Many of the

strategies proposed above could be effected using the PPP route.

Alternative/ Renewable Energy - The crop residue and farm wastes like husk of rice and wheat,

seed coats of oil seeds, stalks and sticks of fibre crops, pulp and wastes of plantation crops, peelings,pulp and stalks of fruits and vegetables are the raw materials used as input for direct cogeneration

of electricity through this process. There is a wealth of this kind of raw material available in the

Vaishali-Hajipur region, which could be used for this purpose. The SIPB has already approved the

setting up of one solar photo-voltaic battery plant and one 10 MW biomass based power plant in

the region. The strategies for promoting this industry could be as follows;

The value chain will have to be studied in details so that backward and forward Linkagescan be

strung seamlessly together to ensure a smooth production process throughout the year. The

power produced by these plants should prove more than adequate to make up the short fall of

power faced by the industries based in Hajipur industrial areas. Therefore, there should be no

marketing problem.

Capacity-buildingefforts will have to be undertaken by the administration and the EDC to be

established in the city, to train suitable persons in the skills required for such ventures i.e.

installation, manufacturing processes & technology, marketing & sales, operation &

maintenance.


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Incentives have already been provided by the Central and State governments for the

development of biomass plants in Bihar. The authorities should try to fastrack the approval

process for projects that come for biomass power generation.

The power buy back option should be given to the players which set up biomass-based power

plants in this region. This will reduce market risk for the players and encourage more number

of players to enter this sector in the town. Easy credit should be arranged for the new establishments in this sector.

Various methods of communication should be used by the local authorities to increase

awareness of this sector, including information on how to setup a new biomass based power

plant in the area, tax and other benefits, trends of the industry and so on.

Specialty Hospitals Polyclinics, Diagnostic Labs, Telemedicine and Health Insurance Services

through PPP: Hajipur already has a healthcare service sector which is limited, unregulated and

often without standardized health care service delivery. Specialty hospital and diagnostic facilities

by private players like Fortis, Dr Lals Path Labs and other reputed private players will not onlyfoster quality of internal standards but also create employment opportunities, contribute to the

economy and control unregulated growth of sub standard health facilities. Feasibility studies

should be conducted prior to establishing of such facilities in the region. The 12thPlan may see the

launch of the National Urban Health Mission (NUHM), which will give this sector a much-needed

boost by promoting partnerships and enabling the environment for improving healthcare services

in urban areas.

Vocational Education & Skill Development: There are two ITIs in Hajipur, but they are limited in

their course offerings to electrical and fabrication trades. With the introduction of new avenues of

economic development like biomass energy production, urban agriculture, organic and contract

farming, agri-clinics, agri business centres, food-processing industries, healthcare, hospitality,

tourism and so on, it is of vital importance that the capacity of the local populace be developed inthese businesses, trades and services. This will call for the establishment of vocational education,

skill and entrepreneurial development centres which are market-linked and output-based, in and

around Hajipur. This can be done on a PPP basis in the city. The resources and funds under the

National and State Skill Development Missions, National Rural Livelihood Mission (NRLM), MSME

and the MoLE can be accessed for this purpose, depending on the sector and the target population

involved. However, this will have to be planned in a holistic and integrated manner so that efforts

are not duplicated.

Support Interventions for Unorganized Sector

A Feasibility Studyneeds to be undertaken to identify the major vending zone, type of industryand physical area available without interrupting public utility of the urban space. One possible

location for this has been identified by stakeholders as the vacant railway land next to

Chauri Bazaar.

These vendors can be formalized by issuing them license for the space allocated and

providing supporting facilities (Solid Waste Management, Sanitation). If the allocation of a

separate area is not feasible, another manner to support them could be of setting up of weekly


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bazaars in different parts of city in an organized manner with support from the Hajipur

Municipal Corporation.

Under the SJSRY, all towns are supposed to have a cell for Urban Poverty Eradication

functioning under DUDA. The ULB should appoint suitable persons in this cell and strengthen

their capacities to perform the role expected of them.

Strengthening of existing community-based groups like NHGs, NHCs, RCV & CDS through

trainings on rules and regulations for conducting group activities could be done through local

NGOs under the SJSRY.

Under the USEP component of SJSRY, assistance is given to groups of urban poor women for

setting up gainful self-employment ventures under the sub-scheme called" The Scheme for

Development of Women and Children in the Urban Areas (DWCUA)". These can be linked to

micro-enterprises required for providing backward linkages for the industrial estate units and

other established MEs like artisanal activities, food-processing, packaging, vermicomposting,

organic farming, floriculture and so on.

Awareness creation on existing government sponsored programmes should be given to ULB

residents, especially in the slums and poorer areas, so that there is scope for maximum

inclusion of excluded groups in them. This should also cover the details of business processes

for approvals, licenses and permits, which need to be followed by individuals or groups in this

category while starting or running a ME or business.

Skill Development of CDS/TCG/ SHG-s and facilitation for enterprise development and the

MEs/ skills that they require to be trained in. This can be done after the Training Needs

Assessment is done prior to establishing the EDC.

Financial Support in the form of loans and subsidies are required by persons in the

unorganized sector. The Central Bank of India is the lead bank for Hajipur and as such, it is their

duty to see to it that all loan proposals from disadvantaged groups are given due priority and

consideration. It is suggested that the ULB monitors such cases on a regular basis through the

LED Unit to be established. Capacity building and change management workshops or courses

aimed at bringing about attitudinal and behavior change in the staff of financial institutions

should be an essential part of their training curriculum.

Recommendations & Interventions at a Macro Level

Introduction of high value crops In order to promote production of non traditional crops inthe region, agri business centres supported by agri clinics need to be opened which provide

farmers access to new seeds, farming methods of new crops etc. Training and capacity building

of agriculturists in the farming of these new crops should be promoted through KVKs and

ATMAs.

Improving the Agricultural Productivity: Power availability to agriculturists and local

entrepreneurs will have to be enhanced through the establishment of biomass and coal-based


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plants. Improved and more scientific methods of farming and an appropriate level of

mechanization without harming labour interests are also required. Internet-based information

systems like e-chaupal should be established towards this end.

Greater Access to credit to famers and small entrepreneurs: There is urgent need to create

a complete ecosystem for credit on easy terms to marginal farmers and small and micro

entrepreneurs, which will assure them regular and timely working capital, while taking intoaccount the risks faced by them. The most vital element in this is changing the mind-sets of

bank personnel in the sanction of such loans.

Supporting infrastructure to improve business linkages and prevent produce loss: The

development and strengthening of region-specific supply chain infrastructure and linkage for

prevention of losses in the agricultural sector is essential for better business. The district has

very good potential for food-processing industries. However, storage and preservation systems

are inadequate. Hence, the strengthening of preservation infrastructure and food processing

units would meet the bi-pronged strategy of effective and economic use of local produce on the

one hand and create employment at the urban level on the other.

Alternative to Repealed APMC Act: - The Department of Agriculture, GoB needs to remedy theexploitative situation that has arisen due to de-regulation of agricultural markets because of the

repeal of the APMC Act. The GoB will have to remedy this situation by giving due consideration

to the proposal of the Committee headed by Shri R.C.A. Jain to upgrade marketing of produce.

The establishment of a terminal market near Patna at Bihta is a step in this direction. A suitable

model of contract farming specific to crops can be adopted to solve the problems of small and

marginal farmers.

Food processing Sector: The Directorate of Food Processing has been formed in Bihar and has

also prepared a Vision Document for this sector. When the Food Processing Policy of Bihar is

formulated and implemented, there should be significant progress in this sector. At present,

there are two schemes under this Directorate - Scheme for integrated development of foodprocessing sector and Scheme for Food Parks, which have just started receiving some attention.

The Department of Industry and MSME will require to examine the synergies and linkages of

the Food Processing Sector with local business development so that the benefits accrue to the

urban poor also in an equitable manner. This can be especially explored with regard to storage

and maintaining the cold chain, clustering of food processing MEs around products specific to

the area i.e. establishment of the Multi-Product Food Park in the Hajipur-Vaishali Region.

Promotion of Household Industries with supporting infrastructure. Supporting

infrastructure (like warehousing, R&D facilities, Marketing & secondary processing facilities)

remain a deterrent to the growth of Household industries in sectors such as food processingand craft-artisan activities. These units need to be supported by appropriate infrastructure to

bring growth in these sectors.

Institutional Mechanism for LED at State and ULB Level:

At the outset of the CBP Implementation in the City, it is of imperative importance to constitute a

Local Economic Development Task Force. This Task Force will function as a de facto Steering

Committee for guiding and approving the CBPs and as an effective institutional mechanism for


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improving the business climate. This task Force will bring civil society, business persons and local

public authorities onto a single platform for effective networking and co-ordination of the CBP roll-

out. The indicative list of members on this Task Force will be as follows:

Commissioner/ Executive Officer, Municipal Corporation

Mayor & selected Members, Hajipur Municipal Corporation

City Manager, Municipal Corporation

General Manager, District Industries Centre

ED/ Rep from Bihar Industrial Area Development Authority

DAO, Department of Agriculture

Rep. from Department of Revenue

Rep. from Relevant Agro-Processing and/ or Industrial Research Centre i.e. ATMA

Manager, NABARD

Manager, SIDBI

President, Chamber of Commerce or any nother Industry Association of the City

Rep from MSME-DI

Manager, Lead Bank

Reps from any Key NGOs engaged in Micro-finance, Micro-enterprise, Street Vendors, Training,Skill Development and Livelihood Programs

Any leading, prominent business persons in the town

Reps from Vendor, Labour, Trade, Market, Rickshaw Pullers Associations

However, this will be an interim institutional arrangement, until such time as the LED Units at State

and ULB Level are constituted. The Urban Development & Housing Department, Government of

Bihar has recommended the following Institutional Structure for development of local economies

at State and ULB Level:

Source: SPUR Report Developing Local Urban Economies


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If for some reason, this recommendation is not feasible, the alternative suggested is to populate

strengthen the Urban Poverty Eradication Cell proposed under the SJSRY Scheme and have a

trained LED Consultant attached to this Cell, who will be able to facilitate the CBP along with the

concerned departments and agencies at ULB, District and State Level.


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Table of ContentsDISCLAIMER .............................................................................................................................................................................. 2

Executive Summary ................................................................................................................................................................ 3

Table of Contents ................................................................................................................................................................... 17

List of Tables ............................................................................................................................................................................ 22

List of Figures .......................................................................................................................................................................... 24

CHAPTER 1:- BACKGROUND & APPROACH TOWARDS LOCAL ECONOMIC DEVELOPMENT ............... 29

1.1. Urbanization & Local Economic Development ...................................................................................... 29

1.1.1. City Business Planning ........................................................................................................................... 29

1.1.2. Support Programme for Urban Reforms (SPUR) ........................................................................ 30

1.1.3. Scope of the Assignment ........................................................................................................................ 311.2. Approaches Towards Local Economic Development .......................................................................... 32

1.3. Principles Governing LED ............................................................................................................................... 32

1.4. Outline Approach & Methodology ............................................................................................................... 33

1.5. Tasks Involved ..................................................................................................................................................... 36

CHAPTER 2:- THE CITY PROFILE ................................................................................................................................... 38

2.1 The State Framework ....................................................................................................................................... 38

2.2 The District Profile............................................................................................................................................. 40

2.3 The Economic Profile of Vaishali District ................................................................................................. 42

2.4 The Economic Profile of Hajipur Urban Area ......................................................................................... 48

2.5 Spatial Growth of the City ............................................................................................................................... 54

2.6 Institutional Framework ................................................................................................................................. 56

2.6.1 State Level.................................................................................................................................................... 56

2.6.2 Municipal Level ......................................................................................................................................... 56

2.6.2.1 Hajipur Municipal Corporation ............................................................................................................... 58

2.6.3 Organizational Setup at City level ...................................................................................................... 60

2.7 Future Prospects ................................................................................................................................................ 61

CHAPTER 3 - IDENTIFICATION OF CORE ECONOMIC SECTORS ....................................................................... 63

3.1 Sectoral Contribution in the Local Economy .......................................................................................... 63

3.2 Economic Base of Hajipur and its Hinterland......................................................................................... 64

3.2.1 Primary Sector ................................................................................................................................................ 64


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3.2.2 Secondary Sector ........................................................................................................................................... 67

3.2.3 Tertiary Sector ................................................................................................................................................ 68

3.3 Employment Scenario in Hajipur ................................................................................................................ 69

3.4 Core Economic Sectors..................................................................................................................................... 70

3.4.1 Core Economic Activity 1 - Agriculture and Allied Sectors .......................................................... 70

3.4.2 Core Economic Activity 2 - Handicraft Clusters ............................................................................... 74

3.4.3 Core Economic Activity 3 Alternative/ Renewable Energy ...................................................... 75

3.4.4 Core Economic Activity 4: Service-based Sectors (Tertiary Sector) ........................................ 75

3.5 SWOT Analysis .................................................................................................................................................... 76

3.6 Recommendations ............................................................................................................................................. 78

CHAPTER 4: BUSINESS COMPETITIVENESS ASSESSMENT OF THE CITY ..................................................... 81

4.1 Investment Competitiveness Analysis....................................................................................................... 81

4.1.1 Investment Attractiveness and Business Concerns ........................................................................ 82

4.1.2 Business Concerns of Private Sector Investments in General for Vaishali (Perception

Analysis)83

4.1.1 Potentiality Survey of Local Businesses in Hajipur ......................................................................... 85

4.2 Demand Assessment & Value Chain Analysis ......................................................................................... 87

Value Chain Analysis: ................................................................................................................................................. 87

4.2.1 Value Chain & Demand Analysis for Food Processing Sector ..................................................... 88

4.2.2 Value Chain & Demand Analysis for Dairy Sector ............................................................................ 89

4.2.3 Value Chain & Demand Analysis for Grain Milling Sector ............................................................ 92

4.2.4 Value Chain & Demand Analysis for Fish Processing Industry .................................................. 93

4.2.5 Value Chain & Demand Analysis for Biomass-based Energy Generation .............................. 95

4.3 Marketing Assessment ..................................................................................................................................... 97

4.4 Business Linkages and Clustering Assessment ...................................................................................... 98

4.5 Recommendations .......................................................................................................................................... 103

4.5.1 Development of Food Processing Industry in Hajipur ................................................................ 103

4.5.1.2 Establishment of a Cluster-based Multi-product Food Park in Vaishali-Hajipur Region .104

4.5.1.3 Tasks for Development of MPFP ......................................................................................................... 107

4.5.2 Promotion of Organic Farming, Floriculture, Nurseries & Poly/Green Houses ............... 109

4.5.3 Development of Bio-Seed Research and Production Centres .................................................. 113

4.5.4 Promotion of the Dairy Industry .......................................................................................................... 113


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4.5.5 Development of Fisheries Sector ......................................................................................................... 114

4.5.6 Development of Apiary Sector (Production of Litchi Honey) .................................................. 116

4.5.7 Promotion of Craft-Artisan Sector ....................................................................................................... 117

4.5.7.1 Assessment of Potential of the craft in Vaishali ............................................................................. 117

4.5.7.2 Value Chain Analysis ................................................................................................................................. 118

4.5.7.3 Market Potential ......................................................................................................................................... 118

4.5.7.4 Recommendations for Development of Sikki Grass Weaving .................................................. 118

4.5.8 Development of the Tourism Sector in Vaishali-Hajipur Region ............................................ 120

4.5.8.1 Significance as a Tourist Destination ................................................................................................. 120

4.5.8.2 Potential of Tourism Development ..................................................................................................... 121

4.5.8.3 Opportunity in Hajipur............................................................................................................................. 123

4.5.8.4 Present tourism infrastructure ............................................................................................................. 123

4.5.8.5 Constraints in the Development of the Tourism Sector ............................................................. 124

4.5.8.6 Recommendations for Development of Hajipur into a Tourist Destination ...................... 124

4.5.9 Development of Biomass Energy Sector ........................................................................................... 125

4.5.10 Promotion of Health, Education & Skill Development through PPP ..................................... 128

4.5.11 Support to the Unorganized Sector ..................................................................................................... 128

4.6 Role of SPUR in promotion of proposed City Business Plan ......................................................... 130

CHAPTER 5: SYNERGY THROUGH ALIGNMENT ................................................................................................... 132

5.1 Government Programmes ........................................................................................................................... 132

5.1.1 Swarnajayanti Sahari Rojgar Yojna (SJSRY) .................................................................................... 133

5.1.1.1 Aligning the proposed CBP with SJSRY ............................................................................................. 135

5.1.2 Prime Ministers Employment Generation Programme (PMEGP)......................................... 137

5.1.3 Backward Region Grants Facility (BRGF)......................................................................................... 139

5.1.4 National Skill Development Corporation (NSDC) ......................................................................... 139

5.1.5 Schemes of Ministry of Food Processing Industries (GOI) ........................................................ 139

5.1.6 Schemes of Directorate of Food Processing, GoB .......................................................................... 140

5.1.7 Schemes of Ministry of MSME (GOI) ................................................................................................... 140

5.1.8 Schemes of Ministry of Textile (GOI).................................................................................................. 141

5.1.9 Schemes of Ministry of Agriculture (GOI) ........................................................................................ 141

5.1.10 Urban infrastructure Development Scheme for Small & Medium Towns (UIDSSMT) .. 143

5.1.11 Bihar Governments Scheme for Organic Farming ....................................................................... 143

5.2 Aligning CBP with Municipal Capital Investment Plan .................................................................... 144


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CHAPTER 6: BUSINESS APPROVAL ASSESSMENT ............................................................................................... 147

6.1 Current Business Regulatory Environment ......................................................................................... 147

6.1.1 Formal Business .......................................................................................................................................... 147

6.1.2 Informal Business/ Entrepreneurs ..................................................................................................... 156

6.2 Taxes & other Costs Associated with Business Operations ........................................................... 157

6.2.1 Taxes ................................................................................................................................................................ 157

6.2.2 Registering property/land ..................................................................................................................... 159

6.2.3 Other costs..................................................................................................................................................... 160

6.3 Streamlining the Business Approval systems ..................................................................................... 161

Various Incentives taken up in Bihar ................................................................................................................ 161

6.4 Recommendations .......................................................................................................................................... 162

CHAPTER 7: LEVERAGING ASSETS & PROMOTING PARTNERSHIPS ........................................................... 164

7.1 Private Sector Participation ........................................................................................................................ 164

7.2 Potential sectors for PPP in Hajipur ........................................................................................................ 165

7.3 Optimum Utilization of vacant ULB lands ............................................................................................. 166

7.3.1 Management Contracts ............................................................................................................................ 168

7.3.2 Turnkey Contract........................................................................................................................................ 169

7.3.3 Affermage/Lease ........................................................................................................................................ 170

7.3.4 Concessions ................................................................................................................................................... 171

Build-Operate-Transfer .......................................................................................................................................... 172

Annuity Model ............................................................................................................................................................ 173

7.3.5 Private Ownership of Assets .................................................................................................................. 173

7.4 Summary of Evaluation and Assessment of all Options Considered ......................................... 175

7.5 The WAY FORWARD ...................................................................................................................................... 176

CHAPTER 8: HUMAN RESOURCE DEVELOPMENT ............................................................................................... 177

8.1 Principles of Capacity & Skill Development for LED......................................................................... 177

8.1.1 Market and Demand-driven ................................................................................................................... 177

8.1.2 Commercial Viability ................................................................................................................................. 177

8.1.3 Convergence & Multi-stakeholder Partnership ............................................................................. 177

8.1.4 Result and Outcome Focus ..................................................................................................................... 177

8.1.5 Pro-poor and Inclusive Focus ................................................................................................................ 178

8.1.6 Quality, Innovation & Modern Methods ............................................................................................ 178

8.2 LED Stakeholder Groups .............................................................................................................................. 178


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8.3 Human Capital Development Interventions for LED in Bihar ...................................................... 179

8.4 Human Capital Development Interventions for LED in Hajipur .................................................. 182

8.5 Capacity Building / Skill Development for State/ ULB Level Functionaries and Elected

Representatives .............................................................................................................................................................. 188

8.6 PPP and Human Capital Development Interventions for LED in Hajipur ................................ 188

8.7 Entrepreneur Development Centre (EDC)............................................................................................ 189

8.7.1 Objectives of EDC ........................................................................................................................................ 189

8.7.2 Other Tasks of the EDC............................................................................................................................. 190

8.7.3 Setting up the EDC...................................................................................................................................... 191

CHAPTER 9: STRUCTURING CITY/MUNICIPAL BUSINESS ACTION PLANS ............................................. 192

9.1 Structuring City Business Operational Plans ....................................................................................... 192

CHAPTER 10: CITY INDUSTRY AND BUSINESS CATALOGUE ......................................................................... 199

10.1 Details for Relevant Government Departments/Public Sector Banks ...................................... 199

10.2 Details for Business Enterprises/association/Organizations/Federation ............................. 201

CHAPTER 11: CBP IMPLEMENTATION PROCESS ................................................................................................ 204

11.1 Institutional Framework for Implementation ..................................................................................... 204

11.1.1 LED Department and LED Local Units: .............................................................................................. 205

11.2 The Way Forward ........................................................................................................................................... 206

ANNEXURE: ........................................................................................................................................................................... 208

Annexure 1: List of Stakeholders ............................................................................................................................ 208

Annexure 2: Stakeholder Workshop Analysis and Suggestions ............................................................. 210

Annexure 3: Investments as per SIPB ................................................................................................................... 213

Annexure 5: Comments on Draft CBP Arrah and the changes made ........................................................ 222


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List of TablesTable 1 : Scores Adopted for Potentiality Index ....................................................................................................... 35

Table 2: Administrative Profile of Vaishali District........................................................................................ 41

Table 3: Vaishali District Indicators (Source: Distt Dev Plan & Census 2001) ............................................. 41

Table 4: GDDP & NDDP at 1999-2000 Prices ............................................................................................................. 42

Table 5: Workforce Participation Rate in Vaishali (in percentages) ..................................................... 43

Table 6: Economic Establishments in Vaishali District .......................................................................................... 43

Table 7: Area and Production of Major Crops (2007-08 & 2008-09 Last estim.) ....................................... 44

Table 8: Productivity of Major Crops (2007-08 & 2008-09 Last estim.) Yield (kg/ha) ........................... 44

Table 9: Livestock Wealth in Bihar (2003) (Figures in '000) ..................................................................... 45

Table 10: Production of fish and fish seeds for the year 2009-10 ........................................................... 45

Table 11: Status of growth of Industrial Units .................................................................................................... 45

Table 12: Status of units in Hajipur Industrial Estate ............................................................................................ 46

Table 13: Types of Industries present in Hajipur Industrial Estate ................................................................. 46

Table 14: Agro-based Enterprises in Vaishali District (Source: DIC Data) .................................................... 46

Table 15: Sector-wise investments approved for Vaishali-Hajipur region by SIPB .................................. 53

Table 16: Existing Land Use Distribution of Hajipur .............................................................................................. 54

Table 17: Summary of Finances of Hajipur Municipal Corporation ................................................................. 60

Table 18 : Growth of Economic Activities in District Vaishali ............................................................................ 63

Table 19 : Growth of Primary Sector in District Vaishali ...................................................................................... 64

Table 20 : Production volumes of Major commodities of Primary Sector in District Vaishali .............. 65

Table 21 : Productivity of Major Crops in Bihar in w.r.t India ................................................................... 66

Table 22 : Growth of Secondary Sector in District Vaishali ................................................................................. 67

Table 23 : Growth of Tertiary Sector in District Vaishali ...................................................................................... 68

Table 24: Category-wise Classification of Workforce in Hajipur ....................................................................... 70

Table 25 : Ranking of various Cities in terms of Business Climate, 2008 ...................................................... 82


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Table 26 : Private Sector Industry Investment Concerns in Vaishali, 2000-2011 ..................................... 83

Table 27 : Matrix showing Potentiality of various Businesses in Vaishali-Hajipur Region .................... 85

Table 28: Factor Availability for Potential Businesses in Vaishali .................................................................... 86

Table 29 : Market for Food based Industries in Bihar (in Rs crores) .............................................................. 87

Table 30 : List of Major Water Bodies in Hajipur ..................................................................................................... 94

Table 30 : Major Markets of Vaishali-Hajipur Region and Production Potential of major commodities

in hinterland ............................................................................................................................................................................ 98

Table 31 : Matrix Showing Scale of Business operation of Typical Industrial unit in Vaishali-Hajipur

region and major business linkages with Major Production Center ............................................................. 101

Table 32 : Crop Seasonality in Bihar ..................................................................................................................... 105

Table 34: Basic facilities proposed for the park............................................................................................. 107

Table 35 : Tentative Project Cost for Food Park .................................................................................................... 107

Table 35: Area and Production of Cut Flowers in Vaishali and Bihar in 2008-09 (in tonnes) ........... 110

Table 36: Average market price for major flower crops .................................................................................... 110

Table 38: Hotels in Hajipur ............................................................................................................................................. 123

Table 39 : Power Potential based on 50% Rice Husk Availability ................................................................. 126

Table 40 : Capital subsidy provided to biomass power/cogeneration units.................................. 127

Table 41 : Fiscal Incentives for Biomass Power Generation.................................................................... 127

Table 42 : SJSRY Programme objectives and programmes alignment with CBP of Hajipur ............... 135

Table 43 : Progress Report of PMEGP 2010-11, upto October, 2010 ........................................................... 138

Table 44: Major Steps in setting up a business set up ......................................................................................... 147

Table 45: Steps to Incorporate and register a new firm ..................................................................................... 152

Table 46: Steps for Obtaining Construction Permits ........................................................................................... 153

Table 47: Approvals/ certification for Agro based industries ......................................................................... 155

Table 48: Vending Activity in Hajipur City ............................................................................................................... 157

Table 49 : Comparative Assessment of Tax Liability ........................................................................................... 157

Table 50: Tax Liability for Business in Bihar .......................................................................................................... 157


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Table 51: Major Steps in Registering Property and Land .................................................................................. 159

Table 52: Other Costs associated with Business Operations in Vaishali-Hajipur region ..................... 160

Table 53: Classification of PPP options ............................................................................................................... 175

Table 54: LED Principles and their implications for the HCD activities under the CBP ........................ 179

Table 55: Training / Capacity Building/ Skill Development in different sectors and job competencies

.................................................................................................................................................................................................... 182

Table 56: Operational Plan for Implementation of City/Municipal Business Plan ................................. 192

Table 49: Details for Relevant Government Departments/Public Sector Banks ..................................... 199

Table 50: Details for Business Enterprises/association/Organizations/Federation............................. 201

List of FiguresFigure 1 : Methodology adopted for City Business Planning Process .............................................................. 34

Figure 2: City Business Planning Process Key Stakeholders Interviews................................................... 37

Figure 3: Types of Agro-based Enterprises in Vaishali District (Source: DIC Data) .................................. 47

Figure 4: Types of Enterprises in Vaishali-Hajipur region ................................................................................... 49

Figure 5: Growth Directions Hajipur .................................................................................................................... 57

Figure 6: Governance Structure - HMC .................................................................................................................... 61

Figure 7 : Growth of Economic Activities in Vaishali District (2001-05) ....................................................... 63

Figure 8 : Growth of Primary Sector in District Vaishali ...................................................................................... 65

Figure 9: Growth of Secondary Sector in District Vaishali ................................................................................... 67

Figure 10: Growth of Tertiary Sector in District Vaishali ..................................................................................... 69

Figure 11: Honey-Producing Districts of Bihar ......................................................................................................... 72

Figure 12: Business Linkage for Agriculture & Allied Sectors ............................................................................ 74

Figure 13: Proposed Investments approved by SIPB in Hajipur, Vaishali ..................................................... 81

Figure 14: Supply Chain for F&V and Agro based Marketing .............................................................................. 88

Figure 15: Value Chain for Fruit & Vegetable and Other Agro based Processing ....................................... 88

Figure 16: Value Chain for Dairy Processing .............................................................................................................. 89


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Figure 17: Primary Processing of milk ......................................................................................................................... 90

Figure 18: Secondary Processing of milk ..................................................................................................................... 90

Figure 19: Value chain for Grain milling based products ..................................................................................... 93

Figure 20: Value Chain for Fish Processing ............................................................................................................... 94

Figure 21: Growth of installed power capacity in Bihar vs Rest of India ....................................................... 95

Figure 22: Value Chain for Renewable Energy .......................................................................................................... 96

Figure 23: Conversion Technologies for Biomass-based power plant ............................................................ 97

Figure 24: Vegetable Producing Regions in Bihar ................................................................................................... 99

Figure 25: Fruit- Producing Regions in Bihar ........................................................................................................... 99

Figure 26: Stakeholders in Multi-Product Food Park................................................................................. 106

Figure 27: Regional Context for Hajipur Business Region ................................................................................ 112

Figure 28: Establishment of Market Linkages ........................................................................................................ 119

Figure 29: Tourist Destinations in Bihar .................................................................................................................. 121

Figure 30: Tourist Traffic in Bihar ............................................................................................................................... 122

Figure 31: Tourist Traffic in Vaishali .......................................................................................................................... 122

Figure 32: Relevant Central & State Government Schemes for CBP.............................................................. 132

Figure 33: Mechanism for Single window clearance of Business Proposals ............................................. 161

Figure 34: PPP options relevant for Development Projects in India ............................................................ 167

Figure 35: Typical Structure of a Management Contract ................................................................................... 168

Figure 36: Typical Structure of a Turnkey contract ............................................................................................. 169

Figure 37: Typical structure of Affermage/Lease contract ............................................................................... 170

Figure 38: Typical structure of Concession Contract .......................................................................................... 172

Figure 39: Typical structure of Private Ownership of Assets .......................................................................... 174

Figure 40: LED stakeholders Groups for Capacity / Skill development ...................................................... 178

Figure 42: Broad Implementation Structure........................................................................................................... 205
http://d/Annie%20IAD/SPUR/Final%20CBP%20Reports/Hajipur%20Final%20Report/Submitted/Final%20Report%20-%20CBP%20Hajipur%20-%20Submitted%20to%20SPUR.docx%23_Toc318792720http://d/Annie%20IAD/SPUR/Final%20CBP%20Reports/Hajipur%20Final%20Report/Submitted/Final%20Report%20-%20CBP%20Hajipur%20-%20Submitted%20to%20SPUR.docx%23_Toc318792720http://d/Annie%20IAD/SPUR/Final%20CBP%20Reports/Hajipur%20Final%20Report/Submitted/Final%20Report%20-%20CBP%20Hajipur%20-%20Submitted%20to%20SPUR.docx%23_Toc318792720


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List of Abbreviations

ACABC Agri Clinics & Agri Business Centres

ADB Asian Development Bank

AHVY (Baba Saheb) Ambedkar Hastshilp Vikas Yojana

APMC Agricultural Produce Market CommitteeATMA Agricultural Technology Management Agency

BIADA Bihar Industrial Area Development Authority

BREDA Bihar Renewable Energy Development Agency

BSRTC Bihar State Road Transport Corporation

BSTDC Bihar State Tourism Development Corporation

BSFC Bihar State Financial Corporation

BUDA Bihar Urban Development Agency

CA Constitutional Amendment

CB Capacity Building

CBD City Business District

CBP City Business Plan

CDP City Development Plan

CDS Community Development Society

CIFE Central Institute of Fisheries Ecucation

CIP City Investment Plan

COMPFED BiharState Milk Co-operative Federation Limited

DDP District Development Plan

DGET Directorate General of Employment & Training

DIC District Industries Centre

DIT Department of Information Technology

DoA Department of AgricultureDoAHF Department of Animal Husbandry & Fisheries

DoAHDF Department of Animal Husbandry, Dairying & Fisheries

DoFP Directorate of Food Processing

DoI Department of Industries

DPR Detailed Project Report

DUDA District Urban Development Authority

EPIP Export Promotion Industrial Park

FP Food Processing

FVPI Fruit and Vegetable Processing Industries

GDDP Gross District Domestic ProductGIS Geographical Information System

GoB Government of Bihar

GoI Government of India

HMC Hajipur Municipal Corporation

IEC Information Education Communication

IGA Income Generating Activity

ITDC Indian Tourist Development Corporation


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KVIC Khadi and Village Industries Commission

KVK Krishi Vigyan Kendra

LAN Local Area Network

LED Local Economic Development

LED TF Local Economic Development Task Force

LQ Location QuotientME Micro-enterprise

MoA Ministry of Agriculture

MoFPI Ministry of Food Processing Industries

MoMSME Ministry of Micro, Small and Medium Enterprises

MNRE Ministry of New and Renewable Energy

MoLE Ministry of Labour and Employment

MPFP Multi-Product Food Park

MT Million Tonnes

NABARD National Bank for Agriculture and Rural Development

NDDP Net District Domestic ProductNGO Non-Governmental Organization

NHC Neighbourhood Community

NHG Neighbourhood Group

NHM National Horticulture Mission

NRI Non-Resident Indian

NRLM National Rural Livelihoods Mission

NRW Non-Revenue Water

NSDC National Skill Development Corporation

O & M Operation and Maintenance

PHED Public Health & Engineering Department

PMEGP Prime Minister Employment Generation Programme

PPP Public Private Partnership

PWD Public Works Department

RAU Rajendra Agricultural University

RKVY Rashtriya Kisaan Vikas Yojana

SD Skill Development

SIPB State Investment Promotion Board

SME Small & Medium Enterprise

SPUR Support Program for Urban Reforms

SPV Special Purpose Vehicle

SSDM State Skill Development MissionSTEP-UP Skill Training for Employment Promotion amongst Urban Poor

SWM Solid Waste Management

SWOT Strength, Weakness, Opportunities and Threat

SJSRY Swarnajayanti Shahari Rojgar Yojna

T&Cs Thrift & Credit Societies

TERI The Energy & Resources Institute


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UCDN Urban Community Development Network

UDHD Urban Development and Housing Department

UDPFI Urban Development Plan Formulation and Implementation

ULB Urban Local Bodies

USEP Urban Self-Employment Programme

UWEP Urban Wage Employment ProgrammeWAN Wide Area Network

WBM Water Bound Macadam


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CHAPTER 1:- BACKGROUND & APPROACH TOWARDS LOCAL ECONOMIC

DEVELOPMENT

1.1.Urbanization & Local Economic Development

Urbanization is both a driver and a consequence of economic growth. Expansion of economic

activities and industrialization lead to evolution of cities as growth centers. These urban centers

facilitate sustained economic growth in three major ways through the real sector, by raising theproductivity of output and employment, through the financial sector, by mobilizing and channeling

savings and allowing accumulation of wealth in the form of urban real estate, and through fiscal

flows, providing major share of governments tax revenue (World Bank, 2000). The development of

an urban area is also closely linked with the rural economy through exchanges of goods, services,

labor, capital, information - technology and social transactions. If properly managed, the process of

urban development p

city business plan - hajipur

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