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1
PRESENTATION ON
30.07.07
AT MAURITIUS
2
India has states like Maharashtra, Gujarat and Karnataka, which have grown as fast as Asia's tiger economies during the past 10 years. It also has Bihar, with a population size of Germany's and a living standard at par with Burundi's.
While inequalities magnified inter-state competition seemed to have been intensified.
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CHALLENGES
Development of Bihar has been a matter of concern since independence.
Low Human Development Indices.
Problem areas are:-Stagnant Economic GrowthPersistent PovertyComplex Social StratificationVery poor infrastructure
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Public investment postulated to go up from Rs21,000 cr in 10th Plan to over Rs 58,000 crores in 11th Plan
Share of private investment in total investment postulated to go up from the present 59 % to 65 % - 10,08,000 cr.
State intends to attract large share of private investment and FDI
Strategy would be through Infrastructure Development as well as Investments in Social Services (Education, Health and Nutrition)
INVESTMENT
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Utilisation of idle capital assets. Efficient use of existing potential.Direct investment from Central Government.Initiatives in areas of strategic importance e.g., Infrastructure such as Road, Bridges, Power, Increased Agricultural Productivity, Water Management including Flood Control & Interlinking of Rivers. Policy Initiatives for increased Private Investment.
STRATEGY FOR 8.5% GROWTH
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Study by CRISIL pointed out that-
♦ Sector has grown at 0.38% in past 5 years Vs national avg. of 7.8%
♦ Investment flow is bleak
–Only 0.4% (Rs 7682 Cr) of proposed investments in India are planned in Bihar (Recent IEM Data)
BIHAR INDUSTRY:A RELATIVE ANALYSIS
35.07%
9.14%
55.80%
19.56%27.28%
53.16%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Agriculture Industry Services
Bihar India
Sector shares in economy – Bihar / India
70120170220270320370420
Bihar India
Manufacturing growth – Bihar / India2004-05
1993-94
1993
-94
1994
-95
1995
-96
1996
-97
1997
-98
1998
-99
2001
-02
2002
-03
2003
-04
2004
-05
1999
-00
2000
-01
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Value Addition Potential
Food Processing
Leather
Drugs & Pharmaceuticals
Textile
Downstream petrochemicals engineering.
Access to market.
Out migration of skilled and un-skilled labours.
STRENGTHENING OF INDUSTRY SECTOR
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Major impediments to investmentAbsence of long term policies, non implementation/ reversal of policy and approach of contract.
Inflexibility of labour laws.
Poor infrastructure – Government has already initiated steps to remove impediments. They are:-
Creation of enabling environment, legislative action, administrative reforms.
Improvement in public delivery system.
INVESTMENT CLIMATE
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Bihar Single Window Clearance Act-2006
Bihar Infrastructure Development Enabling Act 2006.
New Industrial Policy -2006
Price Preference Policy- 2006
New Policy Initiatives for Entertainment, Tea Processing and Sugar Sectors - 2006.
Amendment of Sugarcane Act 1985 to provide for other products from sugarcane apart from sugar.
Policy for establishing higher Technical Institutions in Private Sector - 2006.
Simplification of VAT Regime - 2006.
RECENT POLICY INITIATIVES
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BIHAR SINGLE WINDOW CLEARANCE ACT, 2006
Provides for speedy processing of clearance and certificate.For promotion of all-round development of the State and the Industrial Development.Provides for investors’ friendly environmentUnder the Act, Section 5 provides for State Investment Promotion Board as an Empowered Committee.
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RECENT INITIATIVES
BIHAR FOUNDATION CONSTITUTED AND REGISTERED WITH CM BIHAR AS PATRON
TO ACT AS A FORUM BETWEEN NRBs AND THE STATE
TO FACILITATE DEVELOPMENT OF THE STATE WITH BIHARI DIASPORA’S PARTICIPATION
TO OPEN LOCAL CHAPTERS OUTSIDE AND WITHIN THE COUNTRY
TO PROVIDE INPUTS AND SUGGESTIONS FOR DEVELOPMENT OF THE STATE
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STATUS OF CLEARANCE GIVEN BY THE BOARD
89Total6Others18Technical Institutions65Industrial Units
Proposals consist of 4.
85790Direct employment possibilities in the proposals cleared
3.
Rs.36323.496 crore
Investment involved2.89Total proposals cleared1.
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4- Cement Plants 3
Out of the above:-1- New Sugar Mills 21
2- Mega Projects 143- Expansion of existing Sugar Mills (7 + 2)9
& addition of Ethanol Plant Proposals
5- Power Projects 3
6- Jute Mill 2
7- Handloom Park 1
8- Textile Park 1
9- Tractor Projects 1
10-Mini Steel Plant 1
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CEMENT PLANTS3 proposals have been cleared.
M/s Century Plywood – Kahalgaon
M/s Ambuja Cements Ltd. – Pandarak
Birla Corporation Ltd., Barh
M/s Century Ply Wood has been allotted land at Kahalgaon
M/s Ambuja Cement has been arranged own land at Pandarak.
M/s Birla Corporation Ltd. Would arrange own land at Barh.
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POWER PROJECTSProposals received from
1. M/s Vikas Metals & Power Ltd.2 X 250 MW (Begusarai)
2. M/s Century Plywood2 X 250 MW (Kahalgaon)
3. M/s J.A.S. Infrastructure1215 MW (Banka)
The allotment of coal block is yet to be done by Govt. of India.
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JUTE MILL
M/s Bengali Jute Twine Ltd is establishing unit in Begusarai at an estimated cost of Rs 8.00 crore.
Land has already been allotted.
Civil work has start.
M/s Rameshwar Jute Mill is going to establish a jute mill in Kishanganj.
Land is yet to be identified by the proposers.
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TEXTILE PARK /HANDLOOM PARK
Handloom Park at an estimated cost of Rs. 25 cr. is being established at Bhagalpur, Biharsharifand 5 other places.
Special Purpose Vehicle has been constituted at Bhagalpur for this purpose.
Land has been identified.
Textile Park at Kahalgaon, Bhagalpur at an est4imated cost of 120 cr. Is under implementation.
Special Purpose Vehicle has been formed. Land has been identified.
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HIGHER TECHNICAL INSTITUTIONS
18 proposals have been cleared, which
include 3 Medical college cum Super
Speciality Hospital, Engineering
Colleges, Management Institutes.
Communication Institutes and
Entrepreneurs Training Institute.
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SMALL SCALE & TINY SECTOR
Total registered units in the year 2006-07SSI units 22Tiny units 3419Total Investment Rs. 7243.07
(4697.31)*Total Employment 16578
(15732)*
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SUGAR MILLS
21 proposals were cleared, but only M/s P & M Infrastructure Pvt. Ltd. have laid the foundation at Guruwalia.Another mill at Saharsa by the same company will come up shortly.Rest have delayed the implementation on account of fall in sugar price.
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M/s Suprabhatam Sugar Industries Pvt. Ltd. is sanctioning up a sugar mill at Patna, Naubatpur.
Land has been identified and farmers are transferring the land voluntarily.
Civil works likely to start from August.
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PROJECTS UNDER FOOD PROCESSING
Total project cost - Rs.1,670 crore
Total period - 5 years
IL&FS appointed as Project Management Agency.
In the first phase, Integrated Food Zone, Rural Agri Business Centre/Primary Processing Centre, Air Cargo Complex, Quality Assurance Centre with R & D facilities and development of rice mills cluster will be taken up.
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HANDLOOM PROJECTS
Total Project cost around Rs.68 crore
Project duration – 2 years
IL&FS appointed as a Project Management Agency.
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Salient features of the project
Textile Park
Handloom Park
Privatisation of 3 cooperative spinning mills and dyeing and processing plants.
Up gradation of training institutions.
Designing and product development.
HANDLOOM PROJECTS
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ETHANOL PLANTS
4 Ethanol plants from Maize at Hajipur, Begusarai, Khagaria and Bhagalpur.
10 plants for Ethanol from Sugarcane juice at Araria, Katihar, Bhagalpur, Jamui, Munger, Nalanda Aurangabad, Rohtas and Buxor.
The total investment is around 4.00 billion USD.
The firms has signed up the non disclosure and other legal agreements.
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Financial closure with Malaysian and other investors has been achieved. Mukherjee & Associates, Pune has been appointed as Engineering Consultant.ICAR would give consultancy for sugarcane cultivation.M/s Fleck from Austria is the coordinator for supply of Plant & Machinery from Europe Commitment charges to suppliers of plant & machinery already sent.The team would be positioned at the end of August and civil work likely to start in September.
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INITIATIVES IN LEATHER SECTOR
Bihar is a major producer of good quality hides and skins.
Bihar ranks 3rd in production of hides and skins in the country. Produces 2.64 million bovine hides per annum.
Square shaped goat hide is world famous for its quality.
Acute shortage of trained manpower in footwear industry.
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INITIAVES IN LEATHER SECTOR
State Govt. approached Ministry of Commerce, Govt. of India for establishment of Footwear Design & Dev. Institute in Bihar.
Report on potential of leather industry in Bihar has been prepared by CLRI.
CLRI is also making project report for establishment of CETP at Muzaffarpur.
A meeting is fixed on 21.07.2007 at Kanpur with leather industry Association.
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REVIVAL OF THE CLOSED UNITS OF THE SUGAR CORPORATION LTD.
SBI Caps have submitted the diagnostic study report.
Only 8 out of 17 units are viable for revival.
In other cases, sale of assets for other industrial purposes is to be suggested.
Cabinet approval is being taken.
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CEMENT PLANTSThere are three proposals cleared by the State Investment Promotion Board.(i) M/s Century Plywood at Kahalgaon
1 M.T.
(ii) M/s Ambuja Cements at Pandarak near Barh 1 M.T.
(iii) M/s Birla Cement Plant at Barh 1 M.T.
Agreement for supply of fly ash on long term basis to the proposed cement units are yet to be signed by NTPC with the Investors.
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PRIVATISATION OF THE BIHAR SUGAR CORPORATION
15 Sugar Mills and 2 Distilleries closed for more than 10 years.
Diagnostic Study Report by SBI Capital Market has been submitted.
Revival of 8 units for setting up sugar complex and disposal of the remaining for other industrial purposes are being taken up.
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INVESTMENT SCOPE
MAURITIAN INVESTORS CAN FOCUS ON
- SUGAR & ETHANOL
- FOOD-PROCESSING SECTOR
- HANDLOOM & TEXTILES
- PHARMA
- LEATHER
- TOURISM
- PPP PROJECTS ON INFRASTRUCTURE
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ROAD CONSTRUCTION
DEPARTMENT
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INFRASTRUCTURE - ROADS
The State has
3629 Kms of National Highways
3232 Kms of State Highways
7714 Kms of Major District Roads
In three years the State will have Road Infrastructure which will rival the best in the country
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National Highways
2123 Kms being 4- laned - 1608 Kmsunder NHDP, 245 Kms under Buddhist Circuit Project & 270 Kms on BOT basis
(MAP)
INFRASTRUCTURE – ROADS
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State HighwaysAll State Highways being 2-laned– 2035 Km under RSVY & 927 Km with assistance from ADB.162 Kms being 4-laned on BOT basis.
Major District Roads: - 7714 Kms
4500 Kms taken up in 06-07 for widening and strengthening – in various stages of completion.
2000 Kms being taken up this year.
INFRASTRUCTURE – ROADS
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Quantum Jump
As against an average outlay of 40-50 Crores per year for roads under Plan outlay for 06-07 was 600 Crores. This financial year outlay is 922 Crores for roads alone. This does not include the allocation for State Highways under which the expected expenditure during this year is approx. 1000 Crores.
INFRASTRUCTURE – ROADS
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HEALTH
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To Raise the Infrastructure and
Services in Health Sector to Indian
Public Health Standard
GOAL
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STRENGTHENING HEALTH INFRASTRUCTURE
1553 per year for 3
years7517765881516580HSC5
331 per year for 3
years30812361544APHC4
201533533PHC to be
converted inCHC
3
207922101Sub DivisionalHospital2
11112538District Hospital1
Plan
Work Already taken
up
No. to be
created Existing No. as per
the IPHS
Name of theHealth
Facilities
Sl.No.
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Healthcare Services in the District Hospitals
Ancillary and Support Services:Medico-legal/postmortemAmbulance servicesDietary servicesLaundry servicesSecurity servicesWaste managementCounseling Services Warehousing/Central StoreMaintenance and repairElectric & Water Supply AC &Heating TransportCommunicationMedical Social WorkNursing ServicesSterilization DisinfectionHorticulture Lift and vertical transportRefrigeration
Diagnostic and Para Clinical Services:Laboratory servicesImaging servicesCT Scan servicesSonographyECGEEGEchocardiogramPathologyBlood BankPhysiotherapyDental Technology Drugs and Pharmacy
OPD ServicesIndoor Services, Emergency services
General MedicineGeneral SurgeryO&G servicesPaediatrics &NeonatologyCasualtyCritical Care (ICU)AnesthesiaOphthalmologyENTSkin & VD/ RTI/STIOrthopaedicsRadiology & UltrasonographyRadiotherapyDental carePublic Health Management
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No. of Patients Visited per Govt. Hospital per Month
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653
1018 11
01 1306 15
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2758
3063
2685
2454 26
38
2565
2243
2224
2257
2120
2784
3508
0
500
1000
1500
2000
2500
3000
3500
4000
Jan.
, 06
Feb.
, 06
Mar
ch, 0
6
April
, 06
May
, 06
June
, 06
July
, 06
Augu
st, 0
6
Sep.
, 06
Oct
., 06
Nov.
, 06
Dec.
, 06
Jan.
, 07
Feb.
, 07
Mar
ch, 0
7
April
, 07
May
, 07
June
, 07
Months
Num
bers
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EDUCATION
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New teacher recruitment policy and rules: no contract or para-teachers – over 1,20,000 school teachers appointed through Panchayati RajInstituions (PRI)15 000 New Schools: learning centers abolished and 15000 new schools established – building const going on.Mukhyamantri Samgra Vidyalaya VikashKarykram : Not add a classroom, make a school-Integrated development of school: provision of boundary walls, major renovations, kitchen shed etc, games including children’s educational excursion and other facilities
RECENT MAJOR INITIATIVES
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Free uniform and bicycles: All girls of 6-8 to get free uniform and of class 9-10 bicycles-enhance girls’ participation and reduce gender gaps Mid-day Meals: State share for cooking meals increased from Rs. 0.64 to Rs. 1.00, being given to mothers’ committees and SHG under overall VSS supervisionTeachers grievances and disengagement from non-teaching activities: A series of steps to enhance teacher’s morale and enhance teaching time
RECENT MAJOR INITIATIVES
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Establishment of new Institutions in HE: Chankya National Law University, BIT Extn. Campus established.
New Institutions coming up: National level management institute on the IIM pattern, Aryabahtta Professional University, University of Nalanda
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PANCHAYATI
RAJ
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Empowerment of women and other disadvantaged sections of the society through affirmative action.Promotion of participation of the general masses through a mandatory quorum system for Gram Sabha meetings.Ppromotion of accountability and supervision in the functioning of the PRIs through ‘Social Audit’ and formation of Vigilance Committees.Grant of ‘Public Servant’ status to enhance the accountability of the elected PRI representatives.Gram Katchhary – Speedy, cheap and accessible, justice delivery system at door steps to function with the help of Nyayamitras
Enactment of Bihar Panchayat Raj Act, 2006ACHIEVEMENTS
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Of the 2,53,260 elected representatives of PRIs, 1,30,031 are women.
Incident free General Panchyat Election,06 held by SEC
50% reservation for women and nomination of members of SC, ST & OBC (in case of non-representation) in DPCs
Successful conduct of election to DPCs by SEC
Achievements……..
Activity Mapping; 29 subjects, 20 line departments have been completed.
Devolution and Decentralization
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A number of rules have been framed since the enactment of Bihar PanchayatRaj Act, 2006 for the smooth functioning of the PRIs.
Framing of Rules
Achievements……..
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To enable service delivery through CSC kiosks; creation of Panchayat Portal for easy transfer and access to data; creation of MIS & application of Plan plus for Planning
A project based on ‘PRIYASOFT’ for accounting has been submitted to GOI for approval.
Installation of E-governance, new Financial Management System and MIS
Linkage of bank accounts of PRIs through core banking system.
Simple, easy, transparent and equalising transfer system of funds
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ENERGY
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Negotiations on with NTPC to hand over distribution of Patna and Bhagalpur towns. NTPC to start due diligence soon.
Revenue based franchise system already introduced in 158 feeders in rural and urban areas. Revenue increased upto 200% in many feeders.
Improved resource mobilization. Revenue collection increased from Rs. 65 crores per month (2005-06) to Rs. 85 crores (2006-07). Rs. > 100 crores in last 3 months.
Bring down AT&C by 3% p.a. in the next five years.
POWER REFORMS
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Current installed capacity of 587 MW insufficient Expansion of Barauni and Kanti Thermal Power Stations by adding 500 MW each.Setting up of new power plant under joint venture with NTPC at Nabinagar (3x660 MW). New Hydro Power plant proposed at Dagmara(126MW)Shell company under joint venture with IL&FS to develop new sites at Katihar and Pirpainti (to be handed over through competitive bidding).Nuclear Power Corporation team visited Rajauli for setting up of a Nuclear Power Plant of 1000 MW. NPC to expedite the workCoal blocks/linkages needed for the new projects
CAPACITY ADDITION IN GENERATION
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Rural Works Department
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VisionTo provide all weather rural road connectivity to all habitations by construction of remaining 33525 km of link routes and upgradation of 4227 km of through routes requiring about 15000 cr and maintenance of total constructed roads requiring 400 Crore per Year (on average basis for routine maintenance).
Achievement during 2006-07Completed 1251.35 km under State Plan and 1256 km under PMGSY (including NEAs part) with total expenditure of 152294 lac.
Rural Works Department
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Initiatives undertaken
Mukhya Mantri Gram Sadak Yojana for providing connectivity to 500-999 population.
Strengthening of BRRDA .
Dedicated PIUs for implementation of Bharat Nirman Yojana.
Strengthening of Quality Control Mechanism
Updation of Core Network.
Outsourcing of Process Management with DPR Preparation to IL&FS.
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