Fastest growing state in India

At 11.95 per cent, Bihars growth was the highest among all Indian states during the 11th Five Year Plan

Fastest per capita income growth

Bihar has also topped in per capita income growth, registering a growth of 11.75 per cent in per capita net state domestic product at constant (200405) prices for fiscal 201112

Leader in the production of fruits and vegetables

Bihar is the largest producer of vegetables and the second largest producer of fruits in India

Strong agriculture sector

Bihar is one of the strongest agricultural states, with very high productivity. The percentage of population employed in agricultural production in Bihar is estimated to be 74 per cent, which is much higher than the national average.

Fifth largest mobile subscriber base

With 60.7 million mobile subscribers in February 2013, Bihar has the fifth largest subscriber base among Indian states

FY 2000-10
3.0 per cent share in India's incremental GDP

High economic growth with Growing demand flourishing industries

The economy of the state has grown at around 11.95 per cent during the 11th five year plan. Food processing, dairy, sugar, manufacturing and health sectors are some of the fast growing industries in the state. Bihar has also taken several initiatives for the development of other sectors such as Advantage education and tourism.

Policy incentives
The state offers a wide range of policy incentives for businesses under the Industrial Incentive Policy, 2011. The state also provides specific incentives for the information technology, renewable energy, sugar, food processing and tourism.

FY 2011-20 4.2 per cent share in India's incremental GDP

Bihar

Rich labour pool

The state has a large base of costeffective industrial labour, making it an ideal destination for a wide range of industries. The state has institutes of national importance such as National Institute of Technology and Indian Institute of Technology, which provide skilled manpower to the industries.

The engineering sector is delicensed; 100 per cent FDI is allowed in the The state enjoys a unique locationsector specific advantage because of its proximity to the vast markets of Due to policy support, there was eastern and northern India, as well as cumulative FDI of USD14.0 billion into access to ports such as Kolkata & the sector over April 2000 February Haldia, and toup raw material sources 2012, making 8.6 per cent of total and mineral reserves from the FDI into the country in that period neighboring states.

Location advantage

The most commonly-spoken languages in the state are Hindi, English, Urdu and Bhojpuri. The four agro-climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops.

Parameters
Capital
Geographical area (sq km) Administrative districts (No)
Source: Maps of India

Bihar
Patna
94,163 38 1,102 103 54 49

Population density (persons per sq km)*

Bihar is located in the eastern part of India. The state is surrounded by Nepal in the north, West Bengal in the east, Uttar Pradesh in the west and Jharkhand in the south. The state has a number of rivers; the most important of which is the Ganges. Patna, Gaya, Bhagalpur, Muzaffarpur and Darbhanga are some of the key cities in the state of Bihar.

Total population (million)* Male population (million)* Female population (million)*

Sex ratio (females per 1,000 males)*

Literacy rate (%)*

916
63.8

Sources: Government of Bihar website, *Provisional data - www.gov.bih.nic.in Census 2011

Parameter
Economy
GSDP as a percentage of all states GSDP

Bihar

All-States

Source

3.1

100

Planning Commission Databook, 201213, current prices Planning Commission Databook, 200405 to 201213, current prices Planning Commission Databook, 201213, current prices

Average GSDP growth rate (%)*

Per capita GSDP (US$)

18.1
543.2

15.6
1,414.2

Physical Infrastructure
Installed power capacity (MW) Wireless subscribers (No) 1,868.1 60,301,859 225,133.1 867,803,583 Central Electricity Authority, as of May 2013 Telecom Regulatory Authority of India, as of March 2013 Ministry of Communications & Information Technology, as of March 2013 Ministry of Road Transport & Highways, as of March 2013 Airports Authority of India

Broadband subscribers (No)

97,603**

15,050,000

National Highway length (km) Airports (No)

3,734 2

79,116 133

*Calculated in Indian rupee terms, **In 201112

Parameter Social Indicators

Literacy rate (%) Birth rate (per 1,000 population)

Bihar

All-States

Source

63.8 27.7

74.0 21.8

Provisional data Census 2011 SRS Bulletin (www.censusindia.gov.in), October 2012

Investment
Outstanding investments (US$ billion) 211.2 10,499.2 CMIE (201213)

Industrial Infrastructure
PPP projects (No) 18 881 www.pppindiadatabase.com

PPP: Public-Private Partnership, SRS: Sample Registration System

In 201213, the GSDP of Bihar at current prices was US$ 54.2 billion. Bihars GSDP grew at a CAGR of 15.3* per cent between 200405 and 201213.

GSDP of Bihar at current prices (in US$ billion)

54.2 51.4

CAGR 15.3%*
28.3 17.3 18.6 22.2 31.0

43.5 34.7

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Source: Planning Commission Databook 2013, *CAGR calculated in rupee terms Note: GSDP Gross State Domestic Product , CAGR Compound Annual Growth Rate

2012-13

In 201213, the NSDP of Bihar was US$ 49.2 billion. The average NSDP growth rate between 2004-05 and 201213 was about 15.4* per cent.

Bihars NSDP at current prices (in US$ billion)

49.2 46.6

CAGR 15.4%*
25.6 20.2 15.6 16.7

39.5 28.2 31.6

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Source: Planning Commission Databook 2013, *CAGR calculated in rupee terms Note: NSDP Net State Domestic Product , CAGR Compound Annual Growth Rate

2012-13

Bihars per capita GSDP increased from US$ 195.2 in 200405 to US$ 543.2 in 201213. The per capita GSDP increased at a CAGR of 13.7* per cent between 200405 and 201213.

Per capita GSDP (US$)

522

543

CAGR 13.7%*
195 207 243

447

304

328

362

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Source: Planning Commission Databook 2013, *CAGR calculated in rupee terms

2012-13

Bihars per capita NSDP increased from US$ 176.1 in 2004-05 to US$ 493.3 in 201213. A robust secondary and tertiary sector has helped Bihar to increase its average per capita NSDP at a CAGR of around 13.7* per cent between 200405 and 201213.
186

Per capita NSDP (US$)

493

473

CAGR 13.7%*
275 220 176

406 299 330

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Source: Planning Commission Databook 2013, *CAGR calculated in rupee terms

2012-13

At US$ 30.8 billion, the tertiary sector contributed 56.9 per cent to the GSDP (at current prices) in 2012-13, followed by the primary sector, contributing US$ 14.2 billion (26.2 per cent), and the secondary sector contributing US$ 9.2 billion (16.9 per cent). Between 2004-05 and 2012-13, the tertiary sector was the fastest growing sector with a CAGR of 32.0 per cent, followed by the secondary sector, with a CAGR of 25.9 per cent. This growth has been supported by the manufacturing, electricity, gas & water supply, construction and services. The primary sector grew at a CAGR of 19.8 per cent between 2004-05 and 2012-13.

Percentage distribution of GSDP

CAGR*
54.7

32.0%

56.9

13.7

25.9%

16.9

31.6

19.8%

26.2 2012-13

2004-05 Primary Secondary

Tertiary

Source: CMIE *CAGR calculated in rupee terms

In 2011-12*, the total food grain production was estimated at 17.2 million tonnes. Major crops produced in the state include sugarcane, rice, wheat, maize and potato. In 2011-12*, total production of sugarcane, rice and wheat was estimated at 11.2 million tonnes, 8.1 million tonnes and 6.5 million tonnes respectively. Bihar is one of the leading producers of fruits and vegetables in the country. In 201112, total production of fruits in Bihar was 3.9 million tonnes and total production of major vegetables was 15.5 million tonnes.

Crop
Sugarcane
Rice Wheat Potato Maize Jute Mesta Onion Rapeseed and mustard Gram Sunflower seed Total pulses Total oil seeds

Annual production 2011-12* (000 tonnes)

11,288.6
8187.6 6531.0 6101.7 2486.2 1490.7** 248.1** 1236.8 127.9 76.8 22.9 519.9 174.5

Source: Economic Survey of Bihar, 2012-13 *Revised numbers for 2011-12 **000 bales of 180 kgs each

In 201213, total outstanding investments in Bihar were US$ 211.2 billion. The electricity sector accounted for the largest share of outstanding investments of around 68.8 per cent, followed by the services sector at 22.3 per cent and the manufacturing sector at 7.0 per cent. Between April 2008 and September 2012, 939 investment proposals with a total investment of more than US$ 58.85 billion, were approved by the SIPB. Of the total proposals approved, 93 have started operation and the remaining are at different stages of implementation. In 201213 (up to September 2012), SIPB has approved 215 proposals that are expected to strengthen the base of medium scale industries in the state.

Break up of outstanding investments by sector (2012-13)

Year
22.3% Electricity Manufacturing Mining

Note: SIPB - State Investment Promotion Board

No of proposals approved by SIPB

173 127 161 263 215
Source: CMIE, gov.bih.nic.in, * Till September 2012

2008-09 2009-10 2010-11 2011-12

1.9% 7.0%

68.8%

Services

2012-13*

According to the State Plan of the Road Construction Department of the state, the budgeted outlay for roads and highways is US$ 795.5 million for 2012-13. As of September 2012, the total road length in the state was 140,219.97 km as compared to 112,733.58 km in September 2011.

Type of road
National highways
Source: Maps of India

Length (km) as of September 2012

3,734 4,857

State highways

There is 3,734 km of national highways and 4,857 km of state highways in Bihar. Besides, there are 9,030 km major district roads in the state. The East-West corridor (a four-lane high-speed corridor) and the Golden Quadrilateral road pass through Bihar. The state government aims to provide road infrastructure in Bihar thats equivalent to the best in the country by 2015.

Major district roads

Rural roads*

9,030
122,598

Sources: Economic Survey of Bihar, 2012-13, Ministry of Road Transport & Highways. *Includes Other district roads

Bihar had an extensive railway network of 3,612 km, as of March 2011. Hajipur in Bihar is the headquarter of the East-Central Railway. The states main railway junctions are at Patna, Gaya, Muzaffarpur, Katihar and Samastipur. In the 2011-12 Railway Budget, the state has been given two major projects; an electric locomotive factory at Madhepura (estimated cost of US$ 355 million) and a diesel locomotive factory at Marhaura in Saran district (estimated cost of US$ 372 million) on a public-private partnership (PPP) basis. Several link-lines, such as Muzaffarpur-SamastipurBarauni-Katihar and Muzaffarpur-Chapra-Siwan, have been converted to broad gauge from metre gauge.
Source: Maps of India

The work on the railways wheel factory at Belapur in Chhapra has been completed at an estimated cost of US$ 258 million and awaits official inaugration. The trial production was done in March 2012.
Source: http://indianrailways.gov.in, iindiatimes.com.

The airport in Bodh Gaya is used for international connectivity with Bangkok (Thailand), Colombo (Sri Lanka), Yangon (Myanmar), Dhaka (Bangladesh), Paro (Bhutan) and Kuala Lumpur (Malaysia).

Airlines and number of flights (Patna Airport) No of flights/day Airlines 2012-13*

Domestic airport International airport
Source: Maps of India

No of flights/day 2011-12

Indian Airlines/ Air India Jet Airways Air Deccan / King Fisher Go Air IndiGo

3
5 3 5 16

3
4 3 3 4 17

Bihar has one domestic airport located in Patna and one international airport located in Bodh Gaya. Several domestic airlines connect Patna to Delhi, Kolkata, Mumbai, Lucknow, Bengaluru, Hyderabad and Ranchi.

Total

Source: Bihar Economic-Survey-2013, *Till September 2012

The 1,620 km stretch of the river Ganges that flows between Allahabad in Uttar Pradesh and Haldia in West Bengal has been declared National Waterway 1, and is being developed for navigation by the Inland Waterways Authority of India. Patna has a low-level fixed terminal on National Waterway1 for handling containers. The National Inland Navigation Institute has been set up in Patna to train vessel crews. It has been proposed that waterways should be used to deliver coal to power plants located on the river-side. The state government has requested the central government for funding the approval of the scheme for making rivers like Ganga, Gandak, Kosi, Sone and others navigable and connecting 2,000 panchayats with waterways.

Source: Maps of India

As of May 2013, Bihar had a total installed power generation capacity of 1,868.13 MW, of which 1,324.13 MW was owned by central utilities, 500.70 MW was owned by state utilities and 43.30 MW was owned by private sector. The total installed power capacity comprised of 1,624.70 MW of coal-based power plants and 129.43 MW of hydropower plants. Besides, there was 114.00 MW of installed power generation capacity from renewable sources. The BSEB is a vertically integrated agency and is responsible for generation, transmission and distribution of electricity in Bihar.

Installed power capacity (MW)

1,970.0 1,845.7 1,921.9 1,833.9 1,868.1 1,868.1

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14*

As of March 2012, BSEB was serving around 3.94 million consumers in the state.

Source: Central Electricity Authority, *As of May 2013

Note: BSEB - Bihar State Electricity Board

According to Telecom Regulatory Authority of India (TRAI), Bihar had nearly 60.3 million^ wireless subscribers and 394,129 wire-line subscribers, as of March 2013. The tele-density in the state was 45.72 per cent, as of March 2013. There were 9,023 post offices in the state, as of January 2013. At a wireless subscriber base of 60.3 million in March 2013, Bihar has the fifth largest subscriber base among Indian states. As of December 2011, the state had 62,389 public call offices, 1,197 telephone exchanges and 97,603 broadband subscribers.

Telecom infrastructure (March 2013)

Wireless subscribers^ Wireline subscribers^ Broadband subscribers Telephone exchanges Tele-density (per 100 population)^ Public Call Offices 60,301,859 394,129 97,603* 1,197* 45.72 62,389*

Sources: Telecom Regulatory Authority of India Department of Telecommunications, Annual Report 2012-13, Ministry of Communications & Information Technology *As of December 2011 ^including Jharkhand

Some of the major telecom operators in Bihar

Bharat Sanchar Nigam Limited (BSNL), Bharti Airtel, Aircel Limited, Reliance Communications, Idea Cellular Services, Vodafone Essar, Tata Teleservices

Source: Telecom Regulatory Authority of India

Under the JNNURM, eight projects costing US$ 155 million have been sanctioned for urban centres such as Patna and Bodh Gaya. The key areas of development are solid-waste management system, water supply and sewage. In 2011-12, the state had undertaken expenditures of US$ 41.4 million under state plan schemes for water supply and sanitation.

City

Water supply
The gross water supply in the city is around 186 MLD with about 91 LPCD The public water supply system comprises 98 tube wells Gross water supply in the city is 3.4 MLD Piped water supply coverage is 35.0 per cent while the remaining 65.0 per cent relies on hand pumps.

Solid waste management

Solid-waste generated in the city is 680 TPD About 65.0 per cent of the waste generated is collected Solid waste generated in the city is 17.7 TPD About 60.0 per cent of the waste generated is collected

Sewage
The estimated sewage generation in the city is 224.6 MLD The city has a sewer length of around 27.4 km The city generates about 6.3 MLD of waste water A DPR of US$ 20 million has been prepared under JNNURM and is under implementation

Patna

Gaya

Sources: City Development Plans, JNNURM, Ministry of Urban Development, Government of India, Urban Development and Housing Department, Government of Bihar, Bihar Economic Survey-2013 Note: JNNURM - Jawaharlal Nehru National Urban Renewal Mission, LPCD: Litres per capita per day, MLD: Million litres per day, TPD: Tonnes per day, DPR: Detailed Project Report

Project Name
Khagaria-Bakhtiarpur section Bridge across river Ganga connecting Bakhtiarpur - Shahpur Patori Hajipur-Muzaffarpur Chappra-Hajipur Khagaria Purnea section Kosi Bridge Project Mokama-Munger Forbesganj-Jogbani Development of a new five star hotel at the site of Hotel Kautilya Vihar at Patna Development of a four star hotel at the site of Gautam Vihar at Rajgir

Sector
Roads Roads Roads Roads Roads Roads Roads Roads Tourism

PPP type
BOT BOT-Toll BOT-Annuity BOT-Annuity BOT -Annuity BOT-Annuity BOT-Annuity BOT-Annuity DBFOT

Project cost (US$ million)

355.4 313.3 196.0 171.0 138.5 90.9 74.3 15.6 14.4

Stage
Under bidding Construction Construction Construction Construction Construction Construction Construction Under bidding

Tourism

DBFOT

6.2

Under bidding

Source: www.pppindiadatabase.com BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer

The state has a literacy rate of 63.8 per cent according to the provisional data of Census 2011; the male literacy rate is 73.5 per cent and the female literacy rate is 53.3 per cent. The total number of students enrolled in primary and upper primary (up to class VIII) schools rose to 19.8 million in 201011 from 17.9 million in 2006-07, with an annual growth rate of 2.2 per cent. There is much progress towards gender parity with the enrolment of girls increasing at a faster rate than that of the boys. Budgeted plan expenditure on education in the state has increased from US$ 736.6 million in 2010-11 to US$ 838.7 million in 2011-12. The central government has provided US$ 303.7 million for setting up of six AIIMS-like institutions, of which, one is proposed to be set up in Patna, Bihar. The prestigious IIT has been established in Patna in August 2008. The institute offers B.Tech programmes in three disciplines Computer Science and Engineering, Electrical Engineering and Mechanical Engineering. The Ph.D. programmes are in Engineering, Science and Humanities and Social Sciences.

Education infrastructure (2011)

Universities: 20 Research institutions: 15 Government colleges: 273 Engineering/technical colleges: 10 Medical colleges: 10 Local body colleges/other colleges: 542 Teacher training colleges: 35 Other educational institutions: 252

Reputed technical institutes in Bihar

Indian Institute of Technology, Patna National Institute of Technology, Patna National Institute of Fashion Technology, Patna

Reputed medical institutes in Bihar

Indira Gandhi Institute of Medical Sciences, Patna Jawaharlal Nehru Medical College, Bhagalpur Patna Medical College, Patna
Source: Economic Survey of Bihar, 2012-13, Medical Council of India, University Grants Commission Note: IIT - Indian Institute of Technology

As of 2011, Bihar had 11,559 health centres in various categories including 533 PHCs, 1,330 APHCs and 9,696 SCs, As of 2011, there were 36 district hospitals, 70 referral hospitals and 55 sub--divisional hospitals in the state. On an average, there are 111 health centres for a population of one million. In 2010-11, the total budgeted expenditure for health services in the state was US$ 154.2 million. AIIMS Patna is one of the six AIIMS established in the country under the PMSSY to provide the most sophisticated healthcare. There will be a medical college offering undergraduate, postgraduate and doctoral courses.
Note: PHC - Primary Health Centre, APHC - Additional Primary Health Centre, SC - Sub-Centre. PMSSY - Pradhan Mantri Swasthya Suraksha Yojana.

Health indicators (March 2012)

Persons served per doctor Birth rate* Death rate* Infant mortality rate** 25,098 27.7^ 6.7^ 44^

Life expectancy at birth (years)

Male (200610) Female (200610) 65.5 66.2

Sources: Economic Survey of Bihar, 2012-13, Sample Registration System (SRS) Bulletin 2012 (www.censusindia.gov.in), Planning Commission, Government of India, *Per thousand persons, **Per thousand live births, ^SRS Bulletin October 2012

Government initiatives in the health sector

Increase in sanctioned manpower in departments such as medical, public health and family welfare. Higher level of personnel appointments and training. Involving private sector in support services related to cleaning, pathology and radiology. Free drug distribution and indoor treatment.

A new museum is scheduled to open in 2015. Built on a 13acre site in Patna, its development will be handled by the UK culture consultancy Lord Cultural Resources, with an estimated budget of US$ 80 million. According to the Sports Policy, 2007, the state government is undertaking various initiatives to promote sports in the state by augmenting sports infrastructure, providing coaching facilities and supporting the promising players. An international conclave on Experience Buddhism - In the land of its origin was organised in February, 2010, to give a major thrust to cultural tourism and explore potential related to the Buddhist circuits in India, especially in Bihar.

Major museums in Bihar

The directorates under Youth, Art and Culture Department are Directorate of Museum, Directorate of Archaeology, Directorate of Cultural Affairs and Directorate of Student and Youth Welfare.
The autonomous bodies under Youth, Art and Culture Department are Bihar State Sports Authority, Bihar Sangeet Natak Academy and Bihar Lalit Kala Academy.

Patna Museum, Patna Chandra Dhari Museum, Darbhanga Gaya Museum, Gaya Nardaha Museum, Nawada Bhagalpur Museum, Bhagalpur Maharaja Lakshmishwar Sing Museum, Darbhanga Sitaram Upadhyay Museum, Buxar Bihar Sharif Museum, Nalanda Chandra Sekhar Singh Museum, Jamui Ramchandra Shahi Museum, Muzaffarpur Jananayak Karpoori Thakur Memorial Museum, Deshratna Marg, Patna Chapra Museum, Chapra

Sources: Youth, Art & Culture Department, Government of Bihar www.biharfoundation.in

The BIADA is responsible for promoting and assisting the rapid development of industries in the industrial areas and estates. Operations of BIADA are divided in four regions Patna, Muzaffarpur, Darbhanga, Bhagalpur to facilitate quick services to entrepreneurs. As on October 31, 2012, BIADA acquired a total of 5,632 acres of land; of this, 4,050 acres (72 per cent) could be allotted to the industrial units. Of the four regions, Patna reported the highest acquisition of land 2,609.11 acres.

Region

Acquired land (acre)

2609.11 1570.51 411.96 1,040.43

Land reserved for infrastructure, administrative block, road etc. (acre)

241.51 104.77 76.67 155.58

Allotted land (acre)

2,105.92 1,084.1 313.31 546.81

Total vacant land (acre)

261.68 344.14 21.97 338.04

No of running units
500 236 196 236

Patna Bhagalpur Darbhanga Muzaffarpur

Sources: Economic Survey of Bihar, 2012-13 Note: BIADA - Bihar Industrial Area Development Authority

Centres

Industries
Major agricultural centre of trade, exporting grain, sugarcane, sesame and medium-grained rice; has also emerged as a manufacturing hub in Bihar with the highest number of industrial units. Has the second-highest number of industrial units in the state; food/beverage processing and manufacturing units are located here. Important trade centre for cloth; famous for exporting fruits, particularly mango and litchi. Has major industrial units including those of Indian Oil Corporations refinery; capacity of the existing thermal power station has undergone major renovation and modernisation. Famous worldwide for tussar silk; trading of agricultural produce and cloth is an important economic activity. Other major industries include rice, sugar milling and wool weaving. Major weaving centre, important tourist hub. The main industries of this district are paper, sugar and handloom. Darbhanga city is also noted for its trade in fish, mango and makhana

Industrial clusters in Bihar

Patna

Tirhut

Muzaffarpur

Barauni

Bhagalpur

Manufacturing Textile/sericulture Sugarcane

Gaya

Darbhanga

Agro-based industries (except sugarcane)

The natural resources and policy incentives support the agro-based sector. Agro-based industry and petroleum products (primarily Barauni oil refinery) account for around 85.0 per cent of the total industrial output in the state. In 2012, the SIPB approved 12 large-scale units. Britannia Industries, Ramco Industries and Hindustan Petroleum are some of the promoters whose units were granted approval. As of March 2011, the state had around 36 large scale industries.

Key industries in Bihar

Medium, small-scale industries, micro and artisan enterprises play a major role in terms of employment. As on December 2011, there were 189,271 permanent registered units with total investment of US$ 309.0 million and providing employment to 0.61 million workers.
In 201112, a total of 4,108 new units under the MSME sector were registered and the state government plans to open 8,000 units in this sector for FY 201213. A majority of the industries are located in Patna, Tirhut, Magadh, Munger and Purnea are the other major industrial centres.
Note: SIPB - State Investment Promotion Board

Food and beverages Rubber and plastics Transport equipment Chemicals Tobacco Textiles Leather Paper, printing and publishing Mines and minerals Dairy Tea Sugar Tourism Health

Bihar is one of the largest producers of vegetables and fruits in the country. The factor advantages of the state make it a suitable place for setting up units in the food processing sector. The state is one of the leading producers of fruits like banana, mango, litchi and vegetables such as onion, tomato, potato and egg-plant in the country. In 201112, total production of fruits in Bihar was 3.9 million tonnes and total production of major vegetables was 15.5 million tonnes. Food processing is a priority sector for the state government. Up to 40.0 per cent of the project cost for setting up food processing units is subsidised by the state government. A grant of up to 35% of the project cost, subject to maximum of US$ 1 million, is provided in case of an individual investor. The government aims to establish two food parks in Muzaffarpur and Bhagalpur, which are expected to provide a major impetus to the food processing industry. Besides food processing, the state government promotes cooperative marketing of milk and dairy products.
Source: Economic Survey of Bihar, 2012-13

The Food Park scheme has been declared to be the most admired scheme by the Ministry of Food Processing Industry in the history of food processing in India. Bihar is the only state to have a vision and schemes in place for the food processing sector. The Government of Bihar has approved 123 food processing projects. Following are the major crops for which food processing units may come up under Vision 2022: Paddy Maize Fruits and vegetables Wheat Sugarcane

Source: Overseas Indian Facilitation Centre (OIFC) report

Key players in Bihars food processing and dairy industry

Bihar State Cooperative Milk Producers Federation (COMPFED)

COMPFED is an organised milk processing cooperative, which collects milk through district level cooperative unions, processes and markets the same. It also supports members with interventions across technology, supply chain, marketing, training, etc. COMPFED covers five districts directly and 26 districts through six district level cooperative unions. In 2011-12, COMPFED has marketed around 0.86 million litres of milk per day on an average. It markets its milk products under the Sudha brand, which is in great demand. During 2012, an additional 57 new milk producers cooperative committees were formed by COMFED. It also supplied solar plate systems to 50 such committees.

Usher Agro Ltd

Usher Agro Limited is one of the largest basic food grain (rice and wheat) processing companies in India. The company established its rice processing mill in Buxar, Bihar in 2003. The company's principal products include rice, bran, wheat and husk. The products of the company are sold under the brand name Rasoi Raja. In 2011-12, the revenue of the company was US$ 149.73 million.

The major drivers of chemical, oil and gas industry in Bihar are proximity to sea ports Kolkata and Haldia availability of labour and the vast market of eastern India. Petroleum & allied sectors remain large contributors to the states industrial value output as Bihar has one of the largest public sector refineries in the country under IOCL. IOCL is planning for augmentation of Paradip-Haldia-Barauni crude oil pipeline. ONGC is carrying out exploration for petroleum and natural gas in an area of 2,537 sq km in Purnea basin. It also expects oil reservoirs in Kishanganj and is likely to start drilling operations soon. The permission for investigation of natural gas and petroleum in 2,227 sq km of area in Betiah district has been accorded to Oil and Natural Gas Corporation and Petrodine.

Source: Economic Survey of Bihar, 2012-13 Note: ONGC - Oil and Natural Gas Corporation Limited, IOCL - Indian Oil Corporation Limited

Key players in Bihars chemical, oil and gas industry

Indian Oil Corp Ltd (IOCL)
IOCL, a Fortune 500 company, is Indias leading petroleum refinery. It has a refinery at Barauni, with an annual capacity of 6 million metric tonnes. Secondary processing facilities, such as a resid-fluidised catalytic cracker, diesel hydro-treating and a sulfur-recovery unit, have been added to the main refinery. The 498-km long Haldia-Barauni Crude Oil Pipeline (HBCPL) receives crude oil at the Haldia oil jetty and transports it to the Barauni refinery.

Graphite India Ltd (GIL)

GIL was incorporated in 1963. The company has eight plants located across India and produces graphite products, coke and power. The coke division of the company at Barauni in Bihar is engaged in manufacturing of Calcined Petroleum Coke (CPC) and has an installed capacity of 30,000 tonnes per annum. In 2011-12, the company produced 26,885 tonnes of calcined petroleum coke in its Barauni plant, surpassing installed capacity.

Krishi Rasayan Exports Pvt Ltd (KREPL)

KREPL is a flagship company of Krishi Rasayan Group. The company is one of the major agrochemical manufacturers, with five composite technical manufacturing units. Total revenue of the Krishi Rasayan Group in 2011-12 was US$ 138 million. In 1973, the company set up its plant at Muzaffarpur in Bihar with a capacity of 30 TPD dusting powder formulations. The company operates a poultry feed unit in Muzaffarpur with a capacity of 150 tonnes per day in pellet-form.

The goals and actions points set up by the Bihar State Council under the Bihar@2022 vision document for improving the education sector are as follows:

Goals to achieve by 2022

Action points School

secondary

Achieve near-zero education.

dropout

rate

in

Increase access to schools by establishing schools within 1 km distance of every habitation. Enable access to schools regardless of the capacity to pay. Fast tracking the upgradation of the states school infrastructure and ensuring availability of adequate teachers. Awareness campaigns and policy initiatives to ensure compulsory enrolment and zero dropout. Establish model centres of excellence in primary education in rural areas. Improve hygiene in schools and colleges to curtail dropout, especially of girl students.

Build a base of 12 million graduates and 10 million certified technicians. Increase the capacity of higher education institutions and vocational training institutions by 10 times. Increase focus on becoming an education export hub of the region by attracting students from within and outside India. Increase capacity of medical institutions. Create exclusive science parks for nanotechnology, biotechnology and pharmaceuticals. To produce one Nobel laureate by 2022.

Action points Vocational training

Action points Higher school

The capacity and infrastructure of higher institutions need to be quadrupled to accommodate the projected 3 million students. Capacity of medical colleges needs to be immediately tripled to ensure minimum provision of quality healthcare to the states population. As per the current projection, the required capacity will be four times the present capacity. Hence, to meet the demand, the state should facilitate speedy approval of medical colleges. Collaboration of educational institutions and industry should be such that students remain updated with the latest industrial processes and technology, besides ensuring their employability.

Ensure access to vocational training institutions to all; replicate initiatives such as the ICT academy to provide vocational training through e-learning.

Planning curriculum in cooperation with industry to ensure employability and to minimise the skills gap. Provide a boost to private training facilities to train more nurses and paramedics. Provide short-term vocational courses with diploma for special skills, such as plumbing and housekeeping, to ensure that these skills are monetisable.

Under the state budget 2013-14, the total expenditure for the development of education sector in the state has been estimated at US$ 3,366 million for 2013-14, 21.5 per cent higher than that in 2012-13 (US$ 2,772 million). The total amount includes US$ 2,079 million for non-planned and US$ 1,287 million for planned expenditure. The allocation of US$ 1,287 million for planned expenditure includes US$ 957 million (an increase of 42 per cent over allocation for 2012-13) under the state sponsored scheme and US$ 330 million under the centrally sponsored scheme. Under the state sponsored scheme, the education sector got the highest priority with an allocation of 15.3 per cent of the states total planned outlay in 2013-14 The central government has taken several other initiatives as well for the development of education sector 2013-14: Provision of US$ 303.7 million for setting up of six AIIMS-like institutions across India, of which, one is proposed to be set up in Patna, Bihar. Government is taking steps to create Nalanda University in Rajgir, Bihar, with the first academic session set to start from 2014.

Sugar, the largest agro-based industry in the state, plays a prominent role in Bihars economy. The northern part of the state is climatically well-suited for producing good quality sugarcane with minimum inputs as compared to other states. In 201213, about 237,600 hectares of land was under sugarcane production, and the production rose by more than 10 per cent to over 5 million quintals during 201213 compared to 4.5 million quintals in 201112. Sugar companies have made considerable investments for capacity expansion; consequently, their daily crushing capacity has increased from 37,000 tonnes in 2005 to over 68,000 tonnes at present. It is estimated that about 500,000 farmers are engaged in sugarcane cultivation and another 50,000 skilled and unskilled labourers are working in sugar mills. The state government offers an incentive package to the sugar industry. The Sugarcane Institute in Pusa and Rajendra Agricultural University are engaged in sugarcane-related research activities.

Source: Economic Survey of Bihar, 2012-13

Key players in Bihars sugar industry

K. K. Birla Group

The K K Birla Groups sugar company, Upper Ganges Sugar & Industries Limited (UGSIL), has two units in Bihar Bharat Sugar Mills at Sidhwalia, with a crushing capacity of 5,000 tonnes per day (TPD) and Hasanpur Sugar Mills at Hasanpur, with a crushing capacity of 3,000 TPD. The Sidhwalia unit also has a 18 MW cogeneration power plant. The company belongs to the Dhanuka Group and was incorporated in 1980. It manufactures ethyl alcohol, molasses and sugar at Sitamarhi in Bihar. The plant has a crushing capacity of 5,000 tonnes per day. The company is promoted by the Bajoria family and was incorporated in 1932. It manufactures molasses and sugar at Gopalganj in Bihar. In 2011-12, the revenue of the company was US$ 14.94 million. The company was incorporated in 1964. It manufactures molasses and sugar at Purba Champaran, in Bihar.

Riga Sugar Co Ltd

Vishnu Sugar Mills Ltd

Eastern Sugar & Industries Ltd

The plant has a crushing capacity of 2,500 tonnes per day.

The state has leather, textile and handloom industries as its prominent sectors, apart from some engineering units. The state has ample raw materials (hides and skin of livestock), technical skills (leather technology institutes) and manpower, which are the major drivers for the leather industry in the state. There are 85 leather units in the state, of which 60 are manufacturing units and 25 units take up job-work. The textile industry accounts for 14 per cent of the total industrial production, contributing nearly 30 per cent of the total exports. There are a large number of handloom units in Bihar, of which 10,850 are under the cooperative sector and 25,503 units are outside. Besides this, there are 11,361 power looms in the state. Between April 2008 and September 2012, 51 investment proposals in steel processing & cement sectors were approved by the SIPB.

Key players in Bihars manufacturing industry

Bata India Ltd
Promoted by the Toronto-based Bata Shoes, Bata is among Indias largest manufacturers and marketers of footwear products. The company has a tannery at Mokamehghat in Bihar and a leather footwear factory at Bataganj in Patna. In 2012, the company generated US$ 342 million in revenues.

Bharat Wagon & Engineering Co Ltd

The Bharat Wagon and Engineering Company is a part of Bharat Bhari Udyog Nigam, a Government of India undertaking. It has over 50 years of experience in heavy-steel fabrication. It has two units at Mokama and Muzaffarpur, which are ISO 9001 certified for manufacturing wagons; a third unit at Muzaffarpur, which manufactures gas cylinders. All three plants have captive-power generation capacity.

Gangotri Iron & Steel Co Ltd

The company produces mild steel (MS) bars and billets. In 2010-11, the company produced 53,994 tonnes of MS bars and 41,482 tonnes of MS billets. In January 2009, the company set up a new unit in Bihta, in Bihar. In 2010-11, the company had an installed capacity of 145,000 tonnes of MS bars, 108,900 tonnes of MS billets and 540,000 cubic metres of oxygen gas.

The state has a rich cultural heritage as it is associated with pilgrimages and historical monuments related to religious gurus such as the Buddha, Mahavir and Guru Gobind Singh. Tourism in the state revolves around the Buddhist circuit (Bodhgaya, Rajgir, Nalanda), the Jain circuit (Bisram, Mandar hill, Champanagar) and the Sufi circuit. Some Sufi, Sikh and Jain circuits are also planned to be developed during the 12th Five Year Plan. A fortnight-long Pitripaksha mela, held every year at Gaya, attracts large number of tourists from all over the country, as well as from foreign countries.

Monuments of historical and religious significance present tremendous potential for attracting both domestic and foreign tourists.
The states tourism policy stresses infrastructure and financing for tourism. on developing

Source: Maps of India

The Bihar government is preparing a 20-year master plan for promotion and development of tourism in the state.

The state government has established the Bihar State Tourism Development Corporation with the prime objective of developing hotels, transports, railways, swimming pools, health tourism, etc. and running them on a commercial basis for the benefit of tourists. Other initiatives taken up are as follows: Bihar Paryatan Neeti (formulated), Paryatan Suraksha Bal (sanctioned), 48-seater AC floating Restaurant on the river Ganga, Buddha Smriti Park in Patna, etc. The government has planned two mega religious tourism circuits (Buddhism & Jainism), two mega theme parks based on the life of Buddha and Mahavir (to be constructed at Bodh Gaya and Rajgir) and eight mega centres for educational, cultural and religious tourism [Bodh Gaya, Rajgir, Patna city, Vaishali, Nalanda, Vikramasila, Ashok Dham, Yoga Sansthan (Munger)]. Eighteen projects have been sanctioned for the state by the Ministry of Tourism during the 11th Five Year Plan period (20072012, up to March 2011), at a project outlay of US$ 12.6 million. From January 2012 to August 2012, the total number of tourist arrivals in the state was around 18.90 million.

Arrival of domestic tourists in Bihar (in million)

18.1 17.5

15.8

15.8

2009

2010

2011

2012*

Arrival of foreign tourists in Bihar (in 000s)

842 795 472 491

2009

2010

2011

2012*

Source: Ministry of Tourism, Government of India *From January 2012 to August 2012

The Bihar government has made considerable investments in the health sector: Mobile medical unit service launched in 24 districts, and remaining 14 districts are under processing. PHCs established in all 534 blocks. Muskaan Ek Abhiyan started for universal immunisation. Established Dial 1911 (toll free) for medical consultation and grievance re-addressable system. Bihar Medical Services and Infrastructure Corporation has been established. A special patient welfare committee has been set up in each district to look after the welfare of the poor patients. Untied fund availability has been provided for infrastructure development at all levels including district hospitals, sub-divisional hospitals, PHCs and SHCs. Collaboration with building construction department. Three new medical colleges to be established at Nalanda, W. Champaran and Madhepura.

Funds allocated for the health sector in Bihar as per Budget 2013-14 (US$ million)

116 Non plan

75

Core plan scheme

427

State plan scheme

The goals and actions points set up by the Bihar State Council under the Bihar@2022 vision document for improving the heath sector are as follows:

Goals to achieve by 2022

Action points
Build medical institutions and set up institutes in each district to train nurses, technicians and paramedics to serve the ageing population. Increase spending on healthcare to US$ 1,600 million from the present level of US$ 300 million. Build awareness of preventive medicines through mass media and with assistance of healthcare professionals and non-governmental organisations. Outsource medical services. Increase the use of increased productivity. technologies to achieve

Increase the number of hospitals; beds per thousand population to be increased from the current 0.25 to 4 beds per thousand population, which includes the addition of 3,01,084 beds.
Increase the number of doctors per thousand population from 0.40 to 3. Provide a thrust to health insurance Increase the number of medical colleges by four times. Establish super-specialty hospitals under publicprivate partnership at eight district headquarters.

Increase focus on medical research to incorporate nanotechnology and biotechnology in providing medical services.

Key players in Bihars healthcare industry

AIIMS Patna

The hospital services of the All India Institute of Medical Sciences, Patna (AIIMS-P) will be operational from August 15 this year. The hospital will provide full-fledged emergency services to handle serious injury cases and patients suffering from heart ailments and brain stroke Patna Medical College and Hospital (PMCH) was established in 1925 as the Prince of Wales Medical College. It is located in Ashok Rajpath. The hospital has 1,700 beds. It is the biggest hospital in Bihar.

PMCH

Bihar Single Window Clearance Act, 2006, and the Bihar Industrial Incentive Policy, 2011, promote industrial growth by giving rapid clearances, issuing licenses and certificates and providing an overall investor-friendly environment in the state. The industries department of the state and the DIC act as nodal agencies for investments. Proposals for investments greater than US$ 21.7 million are routed through the Chief Minister and the cabinet for approval.

Investment handled
US$ 2.17 million to US$ 21.7 million Below US$ 2.17 million

Body
State-Level Investment Promotion Board District-Level Committee

Chairman
Industries Development Commissioner District Collector

Nodal agency
Industries Development (Udyog Mitra) DIC

Note: DIC - District Industries Centre

Agency

Description
State-level nodal body under the single-window regime for investments of above US$ 2.17 million. Primary functions involve coordinating applications from investors, processing and facilitating the process of getting clearances from various departments. The department, headed by the Principal Secretary, supervises District Industry Centres (DIC), industrial area development authorities and industrial premises in the state. District-level nodal agency for investments below US$ 2.17 million. DIC supports entrepreneurs in identifying local resources, supply of raw materials and equipment, arrangement of credit facilities, marketing, quality control, etc. Constituted with a mission to promote industrialisation and create awareness about the Industrial Policy of the state. Supports entrepreneurs in setting up industries and availing incentives offered by the State Government. The organisation runs under the guidelines and policies of the Board of Director having directors nominated by the State Government under the chairmanship of the principal secretary, Department of Industries, Government of Bihar.

Contact information
Vikas Bhawan Bailey Road, Patna - 800 001, Bihar. Phone: 91-612-2215 211 Fax: 91-612-2217 991 Website: http://industries.bih.nic.in/

Industries Department, Government of Bihar

District Industry Centre (DIC)

District Industries Centre, Patna Phone - 0612-2270865 Fax: 0612-2218900 1st Floor, Udyog Bhawan, East Gandhi Maidan, Patna - 800 004, Bihar Phone: 91-612-2675 991, 2675 002, 2675 352 Fax: 91-612-2675 889 E-mail: biada@rediffmail.com, Website: http:///www.biadabihar.in/

Bihar Industrial Area Development Authority (BIADA)

Agency

Description
The main state-level institution that provides term lending facilities to industrial entrepreneurs. The corporation has entered into an agreement with Small Industries Development Bank of India (SIDBI), under which joint financing will be done by SIDBI and BSFC in the proportion of 90:10. Under this scheme, a minimum of US$ 0.3 million loan can be provided to one unit.

Contact information
Fraser Road, Patna - 800 001, Bihar Phone: 91-612-2332 785 E-mail: bsfcpatna@gmail.com Website: http://bsfc.bih.nic.in/ Vidyut Bhawan, Bailey Road, Patna - 800 001, Bihar. Phone: 91-0612-2504 036 Fax: 91-0612-2504 968 Website: http://bseb.bih.nic.in/ Beltron Bhawan, Shastri Nagar Jawahar Lal Nehru Marg, Patna - 800 023, Bihar Phone: 91-0612-2281 250 Fax: 91-0612-2281 050 Email: bspsb@vsnl.net, Website: http://bspcb.bih.nic.in/

Bihar State Finance Corporation

Bihar State Electricity Board (BSEB)

The board is responsible for the synchronised development of generation, transmission and distribution of power in the state.

Bihar State Pollution Control Board

The purpose of the organisation is prevention and control of pollution through inspection of treatment plants, standards application, research and development activities, etc. Headquartered at Patna, the organisation has seven zonal offices.

Approvals and clearances required

Incorporation of company Registration, Industrial Entrepreneurs Memorandum (IEM), Industrial Licenses

Departments to be consulted
Registrar of Companies Nodal Agency (Industries Department)

Estimated time
NA NA Seven to 21 days (up to 90 days for acquisition of nonindustrial land) 30 days (45 days for conversion of non-industrial land for use) Up to 120 days

Allotment of land

Bihar Industrial Area Development Authority

Permission for land use Registration under Factories Act and Boilers Act Site environmental approval, no objection certificate and consent under Water and Pollution Control Acts

Revenue and Land Reforms Department, Government of Bihar Offices of Inspector of Factories, Inspector of Boilers Bihar State Pollution Control Board and Ministry of Environment and Forests, Government of Bihar

60 days

NA: Not Available

Approvals and clearances required

Approval of construction activity and building plan Sanction of power Sanction of water Fire service clearance Registration under states Sales Tax Act, and Central and State Excise Act

Departments to be consulted
Urban Development and Housing Department, Government of Bihar Bihar State Electricity Board Water Resources Department, Government of Bihar State Fire Service Headquarters, Government of Bihar Sales Tax Department, Central and State Excise Departments

Estimated time
Seven days Up to 30 days Up to 30 days Up to 15 days Seven days

Cost parameter
Industrial land (per acre) Labour (minimum wages per day) Office space rent (per sq ft per month) Residential rent (2,000 sq ft per month) Five-star hotel room (per night) Commercial and industrial electricity (per kwh)

Cost estimate
US$ 438,055 in Patliputra, US$ 95,851 in Muzaffarpur US$ 2.2 to US$ 3.4 US 50 cents to US$ 1.2

Source
Bihar Industrial Area Development Authority Ministry of Labour and Employment, Government of India Industry sources

US$ 175 to US$ 350

US$ 180 Industrial: US 10.3 cents to US 11.1 cents Commercial: US 9.8 cents to US 11.2 cents

Industry sources
Leading hotels in the state

Bihar State Electricity Board

Bihar State Hydro-Power Policy - 2012

Objectives

To enhance the overall generation capacity of the state, including hydro power. To obtain optimal thermal-hydro generation mix in a 60:40 ratio. To encourage participation of independent power producers by offering them the best policy framework and support.

Read more

Bihar Industrial Incentive Policy - 2011 Objective

To promote balanced industrial development and enable industries to contribute towards the social and economic development of the state.

Read more

Bihar Policy for Promotion of New and Renewable Energy Sources 2011 Objective

To develop all forms of new and renewable energy sources, including biomass- and biogasbased projects, cogeneration projects, mini/micro/small hydro projects (up to 25 MW), wind power projects, solar projects, municipal solid waste-based projects, and other renewable resources-based projects. Read more

Information and Communication Technology Policy 2011

Objectives

To create a world-class IT infrastructure in the state. To promote investment in the IT/ITeS/electronic hardware manufacturing (EHM) units by private industry to accelerate the pace of IT enablement of the state.

Read more

Food Processing Policy Objective

To address the infrastructure, technology, skills, and marketing constraints being faced by rice, maize, pulses, honey, makhana, fruits and vegetables, and other food processing units in the state by facilitating the setting up of new food processing units. To aid the expansion and upgradation of existing units.

Read more

Sugar Incentive Package Objective

To serve the sugar industry by building on the factor advantages of the state.

Read more

Investment subsidies for NRIs

The state government has offered incentive packages in the form of various tax concessions, capital and interest subsidies, reduced power tariffs, etc. to attract foreign funds in the region.

Incentives for NRIs

Bihar Foundation organised a two-day global meet of Non-Resident Biharis on 1819 February 2012 with an aim to attract NRBs from across the world so that they can share their views on the state and its development. NRIs from Bihar who have been successful in their respective fields were invited to the event to share their experience.

Availability of finance for NRIs

Steps are being taken by the government to provide adequate facilities to enable NRIs to start small-scale industries in the state.

Incentives for new investments in plant and machinery

Companies investing US$ 18.7 million or more in plant and machinery during the period from April 1, 2013 to March 31, 2015 will be entitled to deduct an investment allowance of 15 per cent of the investment. Incentives to semiconductor wafer fabrication manufacturing facilities including zero customs duty for plant and machinery.

Incentives for waste to energy projects

Government to provide low interest-bearing fund from the National Clean Energy Fund to IREDA to lend to viable renewable energy projects. Generation-based incentive has been reintroduced for wind energy projects and US$ 150 million has been allocated for this purpose.

Exchange rates Year

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

INR equivalent of one US$

44.95 44.28 45.28 40.24 45.91 47.41 45.57 47.94 54.31
Average for the year

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