WHY BIHAR NEEDS SPECIAL

CATEGORY STATUS

Special Status = Finances + tax waivers

State to contribute only 10%

instead of 70% in Central

Schemes

90% grants instead of 70% for

Central Schemes

Finances Direct Tax Code for waiver for

income tax and corporate tax

Refund of Excise collected to

new units set up in Bihar or

accelerated depreciation

Tax Waivers

Bihar meets all criteria for Special Status

Geographical isolation

Inaccessible terrain

Poor resource base

Remoteness to larger

market

Poor infrastructure

Bihar is young and ready to grow

12% of Indians aged less than 6 are in Bihar

Bihar has demonstrated growth leverage

If Bihar keeps beating national growth average by 2% it would take 40 more years to develop

• Bihar faces a delayed demographic dividend. An ageing India will depend on Bihar

for its workforce. Therefore, industrial development of Bihar is instrumental to the

success of India.

• An industrializing Bihar will generate a new middle class population thereby

transforming the state into next major consumer market of the country.

• India depends on the development of its poorest states such as Bihar to improve the

Human Development Index and join the league of developed nations.

Romila Thapar wrote history of Ancient India is the history of Bihar

Today, Future of Bihar is the Future of Modern India

British policies sent the state towards the road of poverty and under-development

Permanent Settlement Policy poisoned the social fabric of Bihar and crumbled the agricultural base and economy of the state

British neglected Bihar on public investments and did not develop infrastructure and institutions in the state

Onset of railways killed the trade environment of Patna

TIME HAS COME TO CORRECT

THE WRONGS DONE IN THE PAST

At the time of independence, not only did

Bihar lag in infrastructure but the per capita

income of India was also 25% higher

Post-independence, Bihar’s poverty increased due to unfair and inconsiderate policies of Central Government

Freight Equalization Policy killed theindustrialization of Bihar, benefitted rich states.Estimated loss more than Rs 1.20 Lakh Crores.

A flourishing cement industry became dead.

Bihar did not receive equal consideration inbuilding of Central institutions. For example, thestate produced more than 25,000 IITians but didnot get an IIT until recently. No ordinance factorywas put up in the state despite positive proposals.

Infrastructure development in Bihar was never made a priority despite significantly poor level of public infrastructure in the state. Installed capacity in power generation in Bihar is less than 0.4% of the entire country. Nearly 50% of the villages remained un-electrified in 2005.

TIME HAS COME TO CORRECT

THE WRONGS DONE IN THE PAST

Per capita income of India was 25% more than that in

Bihar at the time of Independence.

By 1960-61, per capita income of India was 42% more

than that of Bihar. By 1993-94, this disparity reached to

125%. By 2003-04, it peaked at 230%.

Today, India’s per capita income is 140% more than that of

Bihar.

INDIA CONTINUED TO RISE, BIHAR BECAME

POORER