Jharkand Development Report 2009

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Jharkhand development report November 2008 1

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Jharkhand in its Eighth Year

A StudyFor

Prabhat Khabar

November 2008

indicus AnalyticsNehru House 2nd Floor, 4 Bahadur Shah Zafar Marg

New Delhi 110002Phone- 011-42512400/01

Website: www.indicus.net



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Table of Contents

Acknowledgement ................................................................................................................... 5

Introduction ............................................................................................................................ 6

Data Qualification .................................................................................................................. 8

Jharkhand – A Review ........................................................................................................... 9

State Profile ______________________________________________________________ 9

Gross State Domestic Product Estimates ........................................................................... 10

Section I Jharkhand in the post liberalization era ............................................................ 11

Section II Jharkhand @ IT today ....................................................................................... 17

Section III. Jharkhand in its Eighth Year ......................................................................... 27

A. Governance in Jharkhand _______________________________________________ 27 1. Law and Order ............................................................................................................ 27 2. Public Finance ............................................................................................................ 35 3. Movement of Prices ................................................................................................... 42 4. Infrastructure .............................................................................................................. 44

B. Jharkhand As a Knowledge Economy .......................................................................... 52 1. Communication .......................................................................................................... 52 2. Educational Institutions ............................................................................................. 55

C. Socio-Economic Profile ................................................................................................ 60 1.Demography ................................................................................................................ 60 2. Workforce .................................................................................................................. 63 3. Basic Necessity .......................................................................................................... 64 4. Health ......................................................................................................................... 68 5. Education .................................................................................................................... 71 6. Agriculture ................................................................................................................. 77

.............................................................................................................................................. 77

.............................................................................................................................................. 78 7. Investment Scenario ................................................................................................... 80 8. Consumer markets ...................................................................................................... 87 9. Fiscal Status ............................................................................................................... 91

Section IV : The Districts of Jharkhand ______________________________________ 96 1. Health and Civic Attainment .................................................................................... 97 2. Education .................................................................................................................. 100 3. Demography ............................................................................................................. 102 4. Poverty ..................................................................................................................... 104 ................................................................................................................................... 104 5. Economy ................................................................................................................... 106 6. Overall Performance of the districts ........................................................................ 110



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Section V Jharkhand’s best and worst constituencies ................................................... 115

Section VI Potential Cities – An evaluation .................................................................... 119

Section VII Ranking of Eastern Zone States .................................................................. 121

Section VIII Looking into the future ................................................................................ 123

Bibliography ........................................................................................................................ 132



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Acknowledgement

First and foremost we would like to acknowledge Prabhat Khabar for initiating and supporting this project for the fourth consecutive year for the people of Jharkhand. We would also like to thank Shri Harivansh ji for providing us with insightful information and vision in putting together and backing such a project. We would like to thank the eminent contributors for taking out their valuable time and sharing their thoughts about Jharkhand.

Team Members

Dr. Sumita KaleDeepa NayakAnkur Gupta

Indicus Analytics, New [email protected] 2008.



mailto:[email protected]

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Introduction

The passing of the Bihar Reorganization Bill gave birth to the 28th state of the nation, Jharkhand on November 15th 2000 on the occasion of the birth anniversary of the legendary Bhagwan Birsa Munda. Jharkhand as a state is known as a vast reservoir of natural resources in terms of forest areas as well as minerals. However, in spite of this immense potential, it has not been able to utilize them properly and is thus counted among the backward states in the country. Its inheritance is considered to be one of the major reasons for this backwardness which is reflected in the development backlog over the years. The widespread unrest among the naxal community in recent times has further added to the problem. It thus puts a challenge before the state to provide good governance and to enable equitable growth and socio-economic progress. With a population size a third of Bihar and community-centered traditional ethos of tribal people, it will be relatively easier for the nascent state to pass on the benefits of growth to its citizens equally.

The present study makes an attempt to analyze the strengths and weaknesses of the state, objectively using government's own data. Various aspects of Jharkhand's economy and the changes therein over time have been tracked to see the extent of progress in different indicators of growth and development. In each of the aspects, Jharkhand's status in comparison to other states has been discussed. Further, a comparative analysis of various districts of the state has also been presented. Latest available data from various government and semi-government sources have been used for this analysis. Since this study is the fourth in the series, data has been updated from the previous edition, where available.

The study is divided into eight sections each dealing with various issues related to development. Section I focuses on Jharkhand's position vis-à-vis other states in the post-liberalization phase. Section II examines the potential of the IT/ITES sector in the state. The third section of the study explores the quality of governance, examines the knowledge and communication base as well as the socio-economic profile of Jharkhand. The fourth section of the report deals with the intra-state analysis where the districts of the state are compared. The fifth section provides a comparative picture of the parliamentary constituencies in the state in terms of various socio-economic and infrastructure based parameters. Sixth section explores the potential cities of the state while the seventh section gives the state rankings in the eastern zone in terms of various socio-economic variables. Gross domestic product and per capita income of Jharkhand vis-a-vis other states in 2020 has been discussed in the eighth and the final section.

The states, which are being considered for comparison, are in one way or the other, related to Jharkhand. We have considered the parent state of Jharkhand, Bihar, new states that were formed at the same time as Jharkhand, Chhattisgarh and Uttarakhand and the other neighbors of Jharkhand -West Bengal and Orissa. In some cases, where relevant, we have also considered states that have performed significantly well in the area being discussed.

This study is a depiction of the current scenario in Jharkhand across different socio-economic parameters, which will enable readers to understand the various elements crucial for growth



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and development in the state. It will also provide useful insights to the policy makers to take constructive steps in those areas where the state is lagging behind.



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Data Qualification

Jharkhand was formed only eight years ago and generally the different government departments take an average of two years to release their data. Hence the data for the year 2006-07, and 2007-08 is not available more majority of the indictors. As a result, for most of the indicators, the latest data we have is for the period of 2005-06. Hence depending on the availability of the data the analysis has been done from 2001to 2005-06.

One important point related to the GDP data is that the previous reports contained GDP figures with 1993-94 as the base year. While the present report gives GDP figures with the latest released 1999-2000 base year.

Another point worth mentioning is that we have used the revised estimates rather than budgeted estimates for indicators related to expenditure incurred by the state government on various sectors like education, health etc. The revised estimates actually gives the estimates which has been revised and is thus an actual indicator of the amount of expenditure incurred on health and family welfare. The latest year for which the revised estimate is available is 2005-06.

With a relatively short time span, the data shows a lot of fluctuations during this period. While analysis for these parameters is being done on the basis of this data, the trends will become clearer with passage of time and release of the data in forthcoming years.



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Jharkhand – A Review State Profile

State JharkhandCapital RanchiArea (sq. km.) 79,714Population 2001 29,945,829Density of Population per sq. km. 338Average Annual growth rate of population 1991-2001 (%)

2.1

Annual Per Capita Income 2007-08 (Rs.) Rs. 23,098Percentage of Urban Population (%) 22.25Literacy Rate (%), 2004-05 58.82Number of Districts 24Number of Towns 152Number of Villages 32,616Prominent Cities Ranchi, Jamshedpur, Dhanbad, BokaroProminent Airports RanchiPrincipal Crops Maize, Rice, Wheat, Pulses

Major IndustriesHeavy Engineering, Coal Mining, Tussar Silk,

Steel, IT, Tourism



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Gross State Domestic Product Estimates

Table I : GSDP at current prices (Rs. Crores)

States

GSDP (Rs. Crores) Growth (%)2002-200

32003-200

4 2004-2005 2005-06 2006-072002-20

032003-20

042004-20

052005-0

62006-

07Jharkhand 38,187 42,494 56,871 62,950 69,752 9.01 11.28 33.83 10.69 10.81Bihar 65,117 66,961 73,791 79,682 94,251 12.65 2.83 10.2 7.98 18.28Madhya Pradesh 86,832 102,839 107,657 118,586 128,202 0.1 18.43 4.68 10.15 8.11Chhattisgarh 32,901 39,803 45,999 51,921 58,323 8.72 20.98 15.57 12.87 12.33Maharashtra 299,279 337,495 378,839 432,413 476,509 10.32 12.77 12.25 14.14 10.20Punjab 82,648 89,838 96,592 104,705 123,397 3.71 8.7 7.52 8.4 17.85West Bengal 168,047 189,099 208,578 236,044 259,057 6.94 12.53 10.3 13.17 9.75All-India GDP(99-00 base) 2,265,304 2,549,418 2,855,933 3,250,932 3,790,063 7.86 12.54 12.02 13.83 16.58

Source: Central Statistical OrganizationNote: The current series of GDP is based on the new 1999-2000 series.



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Section I Jharkhand in the post liberalization era

The Indian economy saw widespread reforms introduced in the P V Narasimha Rao regime in early 1990s which led to a spurt in the growth path in the entire nation. It changed the structure of the economy from emphasis on government in a socialist pattern to a mixed economy with considerable role for the private sector. For states like Jharkhand, Chhattisgarh and Uttarakhand which were born in 2000, the early impact of liberalization is difficult to gauge as data is available in most cases on the undivided states. Moreover the parent states of Bihar, Madhya Pradesh and Uttar Pradesh are the ones which have been languishing at the bottom of the economic and social ladder in India for many years. The new states were formed to break free of the poor governance in the parent states and aim for higher growth and better development policies. Consequently, new initiatives at the national level are likely to show less impact on the newly formed state as against the existing ones.

Prevalence of wide disparity in terms of economic and social development characterizes the federal state of India. Therefore, any reform or policy adopted at the national level is likely to have diverse impact at the regional level. With the central government taking a back seat in control, the role of the state governments increased with the relaxation of norms. This made it easier for some states with better governance like Gujarat and Maharashtra to attract private investment. Another important point to note is that economic liberalization encompasses diverse areas in industry, agriculture, trade etc. State-specific characteristics would limit or enhance the impact of reforms in these areas. For instance, dismantling of industrial licensing and balanced growth policy meant that industries would locate on economic considerations. States which had infrastructure in place attracted investment while others whose infrastructure provision in power, roads etc. was lacking, had to work towards putting in these foundations first, without the help from the centre. States now have to compete for investment projects, this increases the burden on the state government for providing a conducive investment friendly environment. Hence there are positive forces being unleashed across the nation which states can take advantage of, and at the same time there is reallocation of resources and increased competition amongst states, which can have a negative effect on growth in some sectors. Moreover, some areas are still under central government control and have little role for the private sector, for example coal mining and pricing. This limits the advantage that accrues to the states like Jharkhand with huge coal reserves.

This article will examine how economic liberalization has impacted Jharkhand, looking at trends in various parameters like income growth, poverty, health, education etc. It is seen that while economic growth has spurted, there has been little impact on other parameters. An attempt is made to give a complete picture of the effect of the reforms despite the constraints of consistency and comparability of data across the time period under study.

Broadly, parameters evaluated fall into two categories, viz, economic and social. The economic indicators used are annual growth rate of the state income, i.e the Gross State Domestic Product and the poverty levels in the state. In terms of state income, there are significant constraints of data. National accounting series have changed twice in the period since the eighties and the growth rates have been calculated for three equal intervals, 1986-87 to



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1992-93, 1993-94 to 1999-00, 2000-02, each with a different data series. While these are not strictly comparable across time, the general trend is clear when compared across states and with the national picture. Moreover, data are available separately for the divided states only from 1993-94.

Figure 1 : Growth rate for Real GSDP

2.1 2.1

5.9 5.9

5.0 5.05.75.9

3.93.2

6.2

3.0

4.6

6.6

10.3

4.5

9.6

4.4

8.5

4.7

7.4

0

2

4

6

8

10

12

Jharkhand Bihar Chhattisgarh MadhyaPradesh

Uttarakhand Uttar Pradesh India

(%)

1986-87 to 1992-93

1993-94 to 1999-002000-01 to 2006-07

Source: Central Statistical Organization;Note: The three time periods are based on three different national accounting series -1983-84, 1993-94 and 1999-00 respectively, which are not strictly comparable across time.

The graph reveals that there was a spurt in growth in Bihar, including Jharkhand in the nineties with economic liberalization. However, after the formation of the new state in 2000, Jharkhand growth has risen in double digits, while Bihar has lagged behind. The picture is more varied for the other divided states, but the basic trend is clear: growth has increased over the last two decades and the newly formed states have benefited from separation from their parent state and having greater control in their own governments.

The manufacturing sector in Jharkhand has seen a leap in growth and investments, especially in key industries like steel, aluminum, cement etc. With access to its vast mineral resources and connectivity through a rail network, the state has reaped benefits from the liberalization. However, with minerals being the strong attractor, other sectors like services for instance have not grown, as they have in other states in this decade. Moreover, the composition of services within the sector shows large share of transportation and storage facilities, again an offshoot of the mining and industrial sector requirements, rather than catering to the needs of the people.

As per the Planning Commission, “Infrastructure is generally defined as the physical framework of facilities through which goods and services are provided to the public.Its linkages to the economy are multiple and complex, because it affects production andconsumption directly, creates positive and negative spillover effects and involves large inflowof expenditure. Proper infrastructure is very much essential for the long term growth of the nation. Jharkhand was first part of Bihar, a poor state and then as a new state faced the problem of lack of access to infra structure, viz, proper roads, adequate power supply, proper



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irrigation facilities etc. Although the problem persists in the entire state, it is much more serious in rural areas. A good network of roads allows for the smooth transport of both passengers and freight, thereby promoting economic activities in the region. Nearly 44 percent of the habitations in the state remain to be connected by road in January 2008. Another key element to gauge the infrastructure base is the power supply. Availability of cheap, abundant and regular power supply is quite necessary for economic activity. Per capita consumption of electricity is an important indicator for measuring the prevailing power situation in a state. While generation capacity directly influences power production and hence availability, it may not always be a good indicator of power availability in the states of the country as sharing of power generated in a particular state is possible through the National Power Grid.1 In 2004-05, per capita consumption of electricity was 402.1 kwH compared to 411.1 at the national level. It is ironic that only 32 percent of the households have electricity in a state that has a third of India’s coal reserves and abundant water resources, and also hosts India’s first multipurpose hydro project, Damodar Valley Corporation. Yet, reforms have reached the state with power projects now getting an impetus.

The provision of electricity, road and telecom connectivity can give the required impetus to growth in the villages that will reduce inequality by boosting traditional livelihoods in the small-scale sector. Though teledensity in India has crossed 25 percent, in Jharkhand there is only one landline per hundred people and just 2 mobile phones per hundred people. There are significant challenges to overcome here since forests occupy almost 30 percent of the total state area, making accessibility a difficult task. However infrastructure provision and connectivity in particular are essentials for growth and development to be truly inclusive.

Special Economic Zones are a new policy tool for attracting investment on a large scale in high productivity sectors. Though Jharkhand was born in the same year when the SEZs started in the country (2000), there are only two SEZs being developed at Adityapur and Ranchi. Jharkhand government has however made pioneering efforts in introducing information technology (IT) in governance throughout the state. Citizens now have more convenient access to government information and it gives them an opportunity to participate in the decision making process. The state through public private partnerships has connected state headquarters to block level through the state wide area network popularly known as Jharnet.

The state of Jharkhand therefore has made progress with liberalization on the economic front, however, as can be seen below, the fruits are yet to percolate to the masses. Poverty levels of a particular region determine to a large extent the level of development of that region. Jharkhand due to its inheritance is classified as one of the poorest states in the country. Accessibility of state wise poverty related data is a problem. The Planning Commission gives poverty data after calculation from the expenditure rounds of National Sample Survey Organization (NSSO). Table 1 gives the proportion of population below poverty line of Jharkhand compared to other states. The table depicts the existence of stark poverty in the state. The proportion of population below poverty line of Jharkhand is almost double than the national level although it is just below its parent state in the latest year for which data are available separately. The institutions responsible for implementing anti-poverty programmes are not efficient and only a small section of the poor actually take the benefits.

1 Development Trends, Tenth Plan Document, Planning Commission



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Table 1 Population below poverty line (%)States 1987-88 1993-94 1999-00 2004-05

Jharkhand 52.1* 55.0* 42.6* 40.3

Bihar 52.1* 55.0* 42.6* 41.4

Chhattisgarh 43.1* 42.5* 37.4* 40.9

Madhya Pradesh 43.1* 42.5* 37.4* 38.3

Uttarakhand 41.5* 40.9* 31.2* 39.6

Uttar Pradesh 41.5* 40.9* 31.2* 32.8

West Bengal 44.7 35.7 27.0 24.7

Maharashtra 40.4 36.9 25.0 30.7

Tamil Nadu 43.4 35.0 21.1 22.5

Orissa 55.6 48.6 47.2 46.4

India 38.9 36.0 26.1 27.5

Source : Planning CommissionNote: Asterisk denotes data for undivided states.

Health and education parameters are examined as the main social indicators. Health and nutrition are classified among the basic ingredients of human capital. Better provision of medical facilities is quite essential for the development of any region especially in a newly formed state as it would engender security in the new state. Jharkhand’s initial health status indicators are unfavorable as compared with the all-India average and the major Indian states.2

Infant mortality rate (IMR) is one of the most important health indicators and gives an indication as to how the state has performed in other indicators like level of education, availability of health facilities etc. Table 1 shows the performance of the states in various health indicators. The table shows that while Jharkhand has lower IMR than Bihar, it fares badly in terms of other parameters. Only 34 percent of the children in the age group of 12 to 23 months are fully immunized against diseases. Access to good quality health care is the right of any citizen and provision of the same is the responsibility of the government, especially in a state where majority of the citizens have very low incomes to support such expenses. Jharkhand has to go a long way in improving its health care facilities and providing quality services to its citizens. Public private partnerships (PPP) in health care which is widely practiced in almost all the states in recent times, has not yet penetrated the state. For example, in Karnataka, the Yeshaswini Health Insurance Scheme was started in 2002 by a private health centre, Narayana Hrudayalaya and now covers over 300 private and government hospitals in the state where farmers can avail of health care at the cost of just Rs. 10 per month. Government infrastructure is used for enrolment and premium collection, and in the initial years, the government also gave a small subsidy towards the insurance premium. For a small fee, the farmers have access to the best medical care in the state of Karnataka.

2 Jharkhand: Addressing the Challenges of Inclusive Development, The World Bank, 2007



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Table 2 Health Parameters

IMR (Number of children dying before 1 year for 1000 live births)

Full Immunization (%)

States 1992-93 1998-99 2005-06 1992-94 2005-06

Jharkhand 89.2* 54.3 49 10.7* 34.2

Bihar 89.2* 73 60 10.7* 32.8

Chhattisgarh 85.2* 90.6 61 29.2* 48.7

Madhya Pradesh 85.2* 86.1 74 29.2* 40.3

Uttarakhand 99.9* 37.6 43 19.8* 60

Uttar Pradesh 99.9* 86.7 71 19.8* 23

West Bengal 81 48.7 38 34.2 64.3

Orissa 112.1 81 73 36.1 51.8Source : National Family Health Survey I and II, 1992-93 and 1998-99, SRS Bulletin

Note : Asterisk denotes data for undivided states

Education is an important indicator of socio-economic development since it improves the quality of life and by creating human capital, is an integral investment in the development process. Jharkhand is categorized as one of the educationally backward states of the nation. One of the indicators of the educational level in a region is the literacy rate, given in figure 2 below. One can see a rise in the literacy rate of Jharkhand but it is still lower than the other two newly formed states. Again, only 45 percent of children above 10 years completed primary schooling in the year 2004-05.3 The absence of basic education has a direct effect on the employability of the labour force in higher income generating jobs. Therefore it is essential for the government to work towards improving the education condition in the state. Realizing this, the state government has begun taking specific steps like introducing PPP in education. The East Singhbhum Jharkhand Education Project (JEP) introduced in the state has been quite successful in providing better quality of education resulting in lowering of drop out rates. Under this scheme, private schools were persuaded to admit under-privileged students in special sessions after regular school hours. This project has shown immediate results in bringing and retaining students in schools. The UNICEF has since recommended similar projects be started in other states as well.

However, in case of higher educational institutions, the PPP scheme has not been that successful. The standard of engineering colleges in the state is not up to the mark and students prefer to go to better quality institutes in Karnataka, Maharashtra and Andhra Pradesh. Initiatives should be taken by the private colleges to improve the quality of education. There are however, new and innovative ideas being experimented with like the ‘Tele education project (TE)’ under the Jharkhand Space Application Centre’s administration. The TE aims to provide virtual classrooms to students to enable them to attend classes from their native places thereby reducing the cost of migration. This provision is especially useful in rural areas where access to good quality education is a distant dream.

3 Indicus estimates from NSS 61st Round, 2004-05(Employment round)



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Figure 2 : Literacy Rates

35.0

26.0

33.028.0

46.0

27.0

41.0

34.0

41.0 39.043.0 44.0

58.0

42.0

58.0

49.054.0

48.0

65.0 64.0

72.0

57.0

69.063.0

0

10

20

30

40

50

60

70

80

Jharkhand Bihar Chhattisgarh Madhy a

Pradesh

Uttaranchal Uttar

Pradesh

West Bengal Orissa

(%)

1981 1991 2001Source: Census of India and Indicus estimates, respective years

However, in case of higher educational institutions, the PPP scheme has not been that successful. The standard of engineering colleges in the state is not up to the mark and students prefer to go to better quality institutes in Karnataka, Maharashtra and Andhra Pradesh. Initiatives should be taken by the private colleges to improve the quality of education. There are however, new and innovative ideas being experimented with like the ‘Tele education project (TE)’ under the Jharkhand Space Application Centre’s administration. The TE aims to provide virtual classrooms to students to enable them to attend classes from their native places thereby reducing the cost of migration. This provision is especially useful in rural areas where access to good quality education is a distant dream.

The process of liberalization initiated in the 1990s changed the closed Indian economy to a globalised one, with the private sector playing a major role. However, the impact on the mineral rich state of Jharkhand has been mixed. Though economic growth has been boosted with the manufacturing sector benefiting from the changed conducive environment, the state has lagged behind most of the states in various socio economic parameters. The spurt in growth has not percolated through to the masses, and this is a reflection of the poor governance in the state that has not been able to translate the impact of growth into positive benefits to the poor. It is of course true that much of the problems have been inherited from its parent state, Bihar. Moreover, the ongoing Naxalite problem has put hurdles in the government reaching out to many areas. There are therefore many challenges to overcome, but the major reasons responsible for the slow progress in development parameters are the weak institutional mechanisms and lack of effective governance. Economic liberalization can raise growth levels, but for balanced and inclusive growth, the government has to play an active role. Provision of a secure environment with effective delivery of basic social provisions like health and education are imperative for the masses to take part in the benefits stemming from a liberalized economic environment. It is here that the government of Jharkhand faces an uphill task ahead.



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Section II Jharkhand @ IT todayBy Sunil Kr. Barnwal♣ and Syed S. Kazi♣♣

IntroductionThe government of Jharkhand has recognized the strategic importance of Information Technology in improving the society and economy of the state as a whole. Underling the need of information society, the state has initiated an innovative broad based, enterprise wide approach to service delivery. The government of Jharkhand is investing towards ICT infrastructure in the state to leverage the best and the latest in technology in devising solutions to the governance issues in various areas beginning with the ones which have maximum public interface. The larger realization is that unless the benefit of ICT reach the village people in the rural areas, the state will not achieve substantial social and economic growth. The state efforts are reflected in its different projects initiatives in the areas of infrastructure, applications, establishing new institutions and policy formulations.Towards this end, the state has been taking regular initiatives in major verticals to ascertain the status of underlying infrastructure, human resources, policy regimes, investment climates etc. for setting up new institutions and computerization of its major departments by rolling different applications regularly on pilot basis in the districts with the view that once it stabilizes in pilot district, the state will roll it out in each district to reach to its people with minimum hitch.The challenges are equally a matter of concern but not insurmountable. Among identified challenges are expanding the IT infrastructure network, quality human resource development, scaling up of projects already implemented, and ensuring sustainable outcome of various interventions.

Recent IT Trends

There are many improvisations taking place in the state’s IT applications and deployments. For instance, earlier ICT applications were not in 3-tier architecture and required sending different forms from district and block offices to be entered in the main system. This caused a delay in process and was rather counter effective. The current application is web interactive and paper handling has reduced a lot now and work is fast.

The following are major new initiatives in Jharkhand’s IT for development:

Process standardization is being achieved through user interaction by studying at different departments involving users for standardization. Standardization and simplification was achieved by dividing the manual process in logical modules of the application software.

Under new Institutional Framework, Jharkhand Space Application Centre and Jharkhand Agency for promotion of Information Technology is working in the areas of GIS and software development activity. Some pioneer work has been done by JSAC like Geological Mapping and Studies, Soil Mapping and erosion studies, Agriculture / Horticulture Studies, Forest Resources Mapping and Monitoring, Water Resource Mapping and monitoring, Village Information System, Geographical Information System, Space Communication, Urban and Infrastructure Development, Land Records Computerization and Disaster Management.

M Mr. Sunil Kr. Barnwal is Additional CEO, JAP-IT, Jharkhand and IG PrisonM♣ MR. Syed Kazi is Programme Officer, Digital Empowerment Foundation, New Delhi



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New IT polices encourages investments in the state by facilitating single window clearance within 10 days. The current policies discuss in length regulatory, legal and security needs of the industry. The state has rendered its support by allowing exemptions from environment clearance, self-certification for purpose of compliance of acts like Minimum Wages Act, Factory Act, Water and Pollution Acts etc.

By improved service delivery now regular departmental information is disseminated with the help of portal. Tender information is available on portal for whole lot of work now. The results of examination are available on net for wider and quick access in the state.

With investment in infrastructure, the State Wide Area Network Connectivity through Jharnet is available for data, audio and video applications up to block level. All the information related to Citizen Service Centres will be routed through this network. Jharnet success will encourage more and more applications to be made available at Citizen Service Centres for better service to village people. Opening of IIIT will take care of manpower requirement of the Industry in the state in field of Information Technology. IT Park will create investment climate for software companies.

By encouraging the Public and Private Partnership business Model in new project areas, the state will work towards for improved sustainability and wider participation such as Jharnet, IIIT etc.

In the state routine kind of work has been outsourced for better co-ordination such as manpower outsourcing, and application program development through industry specific and domain experts for state of the art services and for achieving strict time schedule and budget.

Further introduction of computer in schools will generate computer savvy people in the state to use the IT infrastructure in self-growth.

State IT policy gives lot of incentives for new entrants in IT and BPO companies for opening their shops in the state for growth of IT sectors. Development of IT Park in this direction is in progress in Namkum and Jamshedpur.

The state has provision of a supplementary budget for state level e-governance projects. A high level committee has been formulated to review the project proposals prepared by PeMT for adherence to state priorities.

The state information on portal will save time and money of citizen which they used to spend visiting different state offices all these days is now available to them which they can further use in other social and self development.

IT Infrastructure is critical for Growth

Being a newly created state, Jharkhand has its own traditional and emerging infrastructure limitations. However, the positive trend is the Government of Jharkhand’s extra effort in enabling IT infrastructure across the state in rapid time. Already the state has been implementing the national programme of State Wide Area Network (SWAN) which is a statewide high-speed communication backbone to ensure voice and data connectivity at all blocks & villages, and high speed internal gateway. Under this Jharkhand State Wide Area Netwok (JHARNET), the State Government is promoting speed and ease of governance.



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JAP-IT

Jharkhand Agency for Promotion of Information Technology was conceptualized to accelerate the growth of Information Technology in Jharkhand and implement the policies of the State Govt. in the area of IT. The broad objectives were to provide IT inputs to Governments Departments, Agencies and to assist them in computerization and networking, to co-ordinate with investors and industry, trade organizations and financial institutions in public and private sector. With above objectives, JAP-IT geared up for implementing the projects assigned to them and succeeded in disseminating the strides made by DOIT, Jharkhand through participation in various exhibitions, seminars etc among the leading IT players of the country and thereby attracting them in the state of Jharkhand.

The need for SWAN has arisen to leverage connectivity benefits; delivery of e-Governance applications; better monitoring and evaluation; seamless flow of information; availability of Information to people; efficient delivery of services; internal computerisation and information flow. Overall, the state ICT infrastructure is focused on four key components: Data Centre, State Jharkhand State Wide Area Network (JHARNET), Block to Panchayat Connectivity (BPC) and Common Service Centres (Pragya Kendras).

As of actual implementation, a state of the art State Data Centre is being built by the Government of Jharkhand to ensure the security, integrity and availability of data with all government departments through a secured centralised data hosting facility. Jharnet is being implemented across the state to modernise the government's communication network to act as a information superhighway since 2005. The network is implemented on the modified Build Own Operate and Transfer (BOOT) financial model for a period of 5 years. The JharNet is designed as a state-of-the-art network to provide multiple services like Voice, Data, Video and Internet communication simultaneously over a single fully Internet Protocol (IP) based network built across the state of Jharkhand using world class carrier level networking infrastructure. The Government of Jharkhand has broadly three vertical layers in its organizational structure viz. the State Headquarters, District Headquarters and Sub-divisional and Block Headquarters. The JharNet network architecture therefore also consists of three vertical tiers covering the entire state of Jharkhand where bandwidth connectivity between each tier is initially 2 Mbps which is easily upgradeable to 8 Mbps as and when required in future.

Regarding Pragya Kendras, Jharkhand takes pride in being the first state in the entire country to implement the scheme of Common Service Centre (CSC). Steps have been taken to set up 4,562 CSCs throughout all the panchayats in the state in first phase and 872 CSCs in second phase to provide e-Governance and other value added services. These CSCs, named Pragya Kendras in Jharkhand, seek to transform rural areas through the use of ICT and deliver all hosts of government and private services to the rural people at their doorsteps.

There are key issues in enabling a robust ICT infrastructure across the state. These include- awareness and timely commitment among stakeholders, infrastructure fragilities, telco issues, integrating existing connectivity infrastructure, systems integration, loose ends: power, third party infrastructure, downward connectivity and band-width and expansion issues. However, efforts continue to ensure the best in class social and physical infrastructure to attract leading companies to invest in IT and ITES in Jharkhand.



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Jharnet Govt. of Jharkhand has conceived the Jharkhand State Wide Area Network (JHARNET) to push forward in the Information Technology in the Government to promote the speed and ease of governance. It is a Information Superhighway for Jharkhand which carry Multi Services-Data, Voice and Video. All Government communication and IT infrastructures is being linked to Jharnet. The Connection will be from State Headquarters up to Block Level through District and Sub-divisions. The key applications envisaged on the network are Video Conferencing, Voice and Data Communications, Intarnet Operation, Electronic Data Interchange (EDI) services, Value Added Networks, Help Desk for JHARNET users, Information Kiosks, Data Warehousing and Unified Messaging Services (UMS) etc. Benefits of Jharnet include connectivity of the entire state at on go under one Secured intranet. Jharnet forms a Data Super Highway of Jharkhand and runs Intra & Inter-departmental applications.



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Leveraging IT for e-Governance

e-Governance and pervasive use of information technology presents the Information and Communication Technologies (ICT) as a compelling tool to the government in its aforementioned roles. The introduction of ICT to government presents an opportunity to provide government services to a wider audience at a lower cost of availing services. Especially, in a vast and highly populated country like India, ICT also helps to improve the coverage of services while also facilitating faster processing of services requests. This enables provisioning of satisfactory services to a larger number of people without the need to open more physical offices and recruiting more staff thereby improving efficiency and productivity of government. The savings thus made may be ploughed back into the welfare and development activities of the government. As the use of ICT allows the government to conduct its activities in a totally different environment, introduction of ICT’s is an opportunity to re-look the archaic processes and procedures and re-engineer them for the benefit of both the departments and the masses. This process improvement has a huge impact on the efficiency and speed of government services delivery.The Government of Jharkhand is cognizant of the significant role that may be played by the government in improving the lives of its citizens. The government can improve the lives of its citizens by ensuring that demanding and availing government services is made easier and easily accessible to every citizen at a time and place of their convenience. This appreciation is manifested in its various development initiatives such as computerization of departments, reforming the governance systems as also in its quest for reaching out to the citizenry for proactive delivery of government services. Further, the government can help in the elimination of poverty and general economic prosperity by enhancing the investment climate by making it easier for businesses to conduct business in a safe and red-tape free environment. The Government of Jharkhand’s appreciation of the above is evident from the following select initiatives taken by the government for improving services delivery to citizens:

• State-wide high speed communication backbone – Jharnet, has been established to ensure voice & data connectivity at all blocks & villages.

• Pragya Centers or Citizen Services Centers are being established in each of the 4,562 Panchayats to provide government services using the ICT

• An internet portal has been established as a one stop shop to get information and avail services from the GoJ

• A slew of computerization and automation initiatives in important citizen interfacing departments such as the commercial taxes, revenue, transport, social welfare etc. have been undertaken to improve services delivery. A comprehensive list is given as an answer to the question 2 below.

Furthermore, acknowledging the vast employment generating potential of the IT services industry, the State Government actively promotes establishment of units for providing IT-Services (hardware/software based etc.) and IT-enabled Services (Call Centre, Medical Transcription, BPO, etc.). State Government also provides incentives necessary to foster rapid growth of the industry by preferential allotment of land to IT Industry.

The Government of Jharkhand has undertaken a wide ranging and well thought out e-Governance program as enunciated in its e-Governance roadmap. Instead of ad-hoc computerization, the state has leveraged cost benefit analysis to prioritize the revenue generation and citizen interfacing departments for e-Governance initiatives so as to maximize



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the returns on the money spent on e-Governance and build support for e-Governance by showing tangible results. Some of the successful initiatives are listed below:

S. N Initiative Description Status

Information Technology Department1 Common

Service Centres (CSCs)

Jharkhand is the pioneer State in the country to set up 4,562 CSCs throughout all the panchayats in Jharkhand to provide G2C and B2C services.

Service Centre Agencies have been selected for all five Divisions. Various G2C services have been rolled out.

2 JharNet (SWAN)

JharNet is the backbone network for voice, data and video communication throughout the state of Jharkhand. It connects the State HQ to all the Districts with 10 Mbps backbone while from the District level to the Sub-division level down to Block level with 2 Mbps connectivity.

In use

3 Jharkhand Portal

A single point entry portal for the state of Jharkhand for providing government information and services to citizens and businesses.

Operational

4 FileTracker Its main objective is to replace the manual record keeping system for files and letters with a more efficient paperless automated system. The other objectives of the system are to provide necessary inputs to the decision makers about work studies, providing an efficient monitoring of pending issues and also provide an efficient way to search the letters or files and to ascertain their present status.

Operational

Revenue & Land Reforms



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5 Digitization of Khatiyan and Register II

Unicode-based application software has been developed for the Land Record Computerization in the state.

The pilot projecthas been successfully completed in Lohardaga and EastSinghbhum districts

Registration & Stamps6 J.A.R.S.

(Jharkhand Automated Registration System)

A system which allows citizens to apply electronically and scrutinize and verify the documents automatically as well as store all records electronically.

Operational in 10 districts.

Commercial Taxes Department7 Integrated

Online Commercial Taxes System

Dealer information system, Tax accounting information system, Assessment information system, Return processing system, & other departmental functions

Operational

Finance8 Centralized

Treasury management system

To bring core Treasury functions into one unified centralized system

Implemented and in use in all 31 locations.

9 GPF through electronic network

Computerization of GPF system Operational

Mines & Geology10 GIS To have extensive details of minerals

present in each of the Districts and other mineral related issues

Operational

Welfare Department11 Website The website provides details of the

Department and the Department expects to augment the scope of website by allowing citizens to carry out all their transactions through it.

Operational

Others



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12 Prison Management System

The main purpose behind the implementation of the Prison Management System (PMS) was to enhance the administrative capabilities of the jails in terms of monitoring and security of the prison while improving the efficiency and productivity of the Prisons.

Operational

13 Tender Information System

An internet based application has been developed and deployed that enables the following on the internet: publishing information about tenders, sending the information on tenders of interest to registered private players, uploading of tender documents etc.

Operational

14 Employment Exchange computerization

An online system for registration and renewal of registration at employment exchanges has been developed. The application also allows transmitting data to employers directly.

Operational

15 Computer education in Schools

Supply of computers systems and provision for computer education services in Schools from class IX to Class XII

The RFP has been approved and the vendor selection in in progress.



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The Trend in the ITES sector

One of the policy thrust of the Government of Jharkhand is ensuring best in class social and physical infrastructure to attract leading companies to invest in IT & ITES in Jharkhand. Of late there has been increasing trends in the Information Technology Enabled Services (ITES) in the state. Business Process Outsourcing (BPO) and call centres are new trends. Already a number of ITES majors have applied for setting up units at the International Incubation Facility Centre (IIFC), Software Technology Parks of India (STPI) in Ranchi, at a cost of around Rs 10 crore. The state government has put up a demand request to the Union Ministry of Communications and IT to approve proposals to set up 3 more STPIs in the state. The new STPIs are identified in Jamshedpur, Bokaro and Dumka.

Already various local and national ITES companies have evinced interest in setting up middle-level units in the BPO and call centre sectors at the IIFC. Jamshedpur-based Alpine Techno has already started its operations with 12 seats. It plans to increase it to 48 seats within a year. MdBoss-ew, Delhi, E-Octopus, Ranchi, Cysys Technologies, Bhubaneswar and 7Hills, Kolkata are the others who have implemented their pilot projects and have started their operations on the Rs 3,000-per-seat plug-and-play facility. Talks are also going on with key ITES companies to set up ITES units in the state.

The scope is tremendous in the IT and ITES sector in the state. As per a NASSCOM-McKinsey study, the state can contribute enormously in the US$ 24 billion industry in India in 2008. Despite Kolkata and Bhubaneswar taking the lead, the Government of Jharkhand with its vast untapped potential is keen to boost the ITES sector in the state.

The key identified challenges in the IT and ITES sector are equally worrisome at times. The absence of direct connectivity, either by rail or air, between Jharkhand and the southern states like Hyderabad and Bangalore has affected the prospects of the IT and ITES sector in the state. There are concerns that the connectivity issue is holding back greater investments in this sector. Another challenge is that ITES units in the state are facing the problem of getting adequate number of people with required proficiency in English language. To address this situation, necessary steps are taken to promote/encourage establishment of institutions for training in spoken English.

Fund crunch is holding back potential entrepreneurs in the state to set up/expand units in ITES. Again, to help development of this industry in Jharkhand, the Department of Industries is looking towards setting up special funds to like venture capital fund to help the upcoming establishments. In this context, coordination with SIDBI and other financial institutions is being established. Another requirement is units engaged in medical transcription require a different work culture. Such establishments need 24 hours working time. To address this, the Government of Jharkhand has been considering in declaring this sector as essential service.

Recent advances in the state and in other states

The state has developed the IT policy keeping in mind the enhanced opportunities that IT will unleash over the next decade. These opportunities will allow corporates to create immense value, provide significant opportunities for talent development and employment, and enhance efficiencies in governance and social service. Therefore, the core objective of the new IT policy is to allow different constituents within the state to leverage this opportunity. As stated, the core objective of the IT Policy is to facilitate improved communications and



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infrastructure while implementing a statewide high-speed communication backbone, ensure voice and data connectivity at all blocks and villages, and high speed internal gateway. The objective is to develop human resources and facilitate effective governance in all major departments and timely service delivery to the citizens. The state has planned to train at least 25 to 30 e-governance Champions amongst State officials and to make them responsible to implement the e-governance roadmap of Jharkhand. It goes without saying that implementation of e-governance projects will create a totally transformed work environment for employees in all departments and will radically redefine the way services are offered to citizens and businesses. Currently, e-District project which seeks to make the district administration more responsive and accessible is very high on the state’s agenda. Decision support system for disaster assessment and management is also being conceptualized. It has also planned to resume information system and a web-based cultural Atlas of the state. Tele-medicine is also going to be a milestone in the area of medicine apart from another ambitious project called tele-education to provide basic education in a mission mode. In a nutshell, information technologies are being envisaged to deliver a variety of information services to the citizens effectively and efficiently in near future.

Identifying key challenges As like any other newly created and emerging State, Jharkhand has its own share of challenges in IT for development and its deployment. The foremost is the infrastructure barrier. The communications and information infrastructure and its state wide implementation and running are a huge task at hand. This includes increasing cost in upgrading of hardware and software and setting up faster networks, higher level machines, more complex software and more capable professionals. As mentioned, developing quality human resource is a challenge. Until and unless the state has put greater efforts in education and information literacy it would be difficult to bridge digital divide in the state and facilitate development. The challenge is to reduce gaps in poor access to computers and information and communication technology amongst large section of the state population who are living in the periphery of the state’s social and economic set ups. Then there are the content barriers in terms of facilitating local language digital content in meeting information and communication needs of the local population. Looking Ahead After creation of DoIT, Jharkhand’s initiatives in the area of application of ICT in improving service and governance were scaled up to harness the advantages of ICT applications. While the state has been pioneer in establishment of SWAN and Common Service Centre Projects, its progress in computerization of key departments such as treasuries, commercial taxes, registration etc. has been note worthy. In addition, IT department is pro-actively trying to push for computerization of operations in almost all the state departments so as to have an absolutely integrated service delivery system in near future.Successful implementation and sustenance of e-Governance programmes for the state will depend on support, guidance and direction from the top staff of various state departments. The need was felt to train officials occupying decision making levels and managerial posts who



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will be trained as ‘e-Champions’ to be equipped with necessary skills to lead the successful implementation of e-governance projects in the state.

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Section III. Jharkhand in its Eighth Year

A. Governance in Jharkhand

This section explores effectiveness of governance in Jharkhand. Good governance is the prerequisite for the overall development of a region. Good governance can be gauged from various angles like maintenance of law and order, management of finances of the government, control in the movement in prices and development in infrastructure.

1. Law and Order

a. Value of property stolen & recovered

The manner through which the property is secured in a particular region depicts how efficient is the state in securing the basic needs of its citizens.

Table A.1 (a): Percentage of stolen property recovered

States 2003 2004 2005 2006Jharkhand 20.6 16.2 18.3 16.3Bihar 15.0 15.9 16.5 16.0Uttarakhand 32.0 27.6 29.0 29.4Chhattisgarh 28.9 33.2 50.7 22.8West Bengal 23.7 22.9 22.0 20.7Orissa 39.0 38.1 39.9 33.4India 25.8 19.9 23.9 25.3

Source: Crime In India, National Crime Record Bureau, 2006

• In Jharkhand, the percentage of stolen property recovered has reduced from 2005 to 2006. This depicts that volatile law and order situation is prevalent in the state and the government has not been able to curb this problem effectively.

• However, the percentage recovery of stolen property in Jharkhand is marginally better than its parent state, Bihar.

• Among the newly formed states, Uttarakhand has been the most efficient in recovering stolen property followed by Chhattisgarh.



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• Neighboring states like Orissa and West Bengal also fare well on this front compared to Jharkhand.



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b. Juvenile Delinquency

Juvenile delinquency refers to criminal acts committed by children below 18 years of age. Since this criminal act is related to children who are the future citizens, juvenile delinquency has become a major social problem and thus a major concern for the state government. The crimes committed by the juveniles fall under two categories – under the Indian Penal Code (IPC) and Under Special Laws (SL).

Table A.1 (b): Incidence of crimes committed by Juveniles

States 2003 2004 2005 2006Jharkhand 821 821 189 881Bihar 260 214 286 210Uttarakhand 28 36 23 106Chhattisgarh 1,179 1,819 2,924 2053West Bengal 106 75 131 99Orissa 219 261 430 430India 25,686 24,985 25,601 25817


• Jharkhand has shown considerable rise in the incidence of crimes committed by the juveniles between 2005 and 2006. Though the 2005 low figure appears to be an aberration, the number of crimes in 2006 exceed the previous years levels, a warning to the state government to achieve the betterment of children below 18 years.

• Compared to its parent state, Jharkhand has larger incidence of juvenile crimes committed in 2006. It is more than four times that of Bihar.

• Among the newly formed states, Chhattisgarh has the highest incidence of juvenile delinquency followed by Jharkhand.



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c. Incidence of Murder

Under the Indian Penal Code (IPC) murders come under the category of violent crimes. The measure of murder used here includes all the reported cases of murder. The incidence of murder in a particular region indicates the effectiveness of the police administration prevalent in that particular region.

Table A.1 (c): Incidence of Murder

State 2001 2003 2004 2005 2006

Change in 2001-06

(%)Jharkhand 1,507 1,482 1,488 1,523 1,492 -1.0Bihar 3,643 3,772 3,948 3,471 3,249 -10.8Uttarakhand 316 293 262 279 274 -13.3Chhattisgarh 880 797 927 1,013 1,098 24.8West Bengal 1,594 1,464 1,425 1,453 1,425 -10.6Orissa 987 1,102 1,066 1,079 1,159 17.4India 36,202 33,821 33,608 32,200 32,481 -10.3


• In Jharkhand the number of reported murders slightly decreased in 2006 compared to the previous year. This is a solace for the state government but continued efforts in this direction are needed to bring in good law & order situation in the state.

• Among the newly formed states, Uttarakhand has fared well compared to the other two states.

• Among the neighboring states, Orissa has shown considerable rise in murders since 2001.



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d. Incidence of Rape

Rape is one of the major crimes against women and incidence of rape in a particular region is an indicator of the extent of safety provided to them. Over the years the punishment of committing rape has become stricter with an aim to check this heinous crime. While it is true that crimes against women are under-reported, the changes over time do reflect the trends. For the present analysis the number of reported cases of rape in respective years has been considered.

Table A.1 (d): Incidence of Rape

State 2001 2003 2004 2005 2006Change in

2001-06 (%)Jharkhand 567 1,482 797 753 799 40.92Bihar 888 3,772 1,390 1,147 1,232 38.74Uttarakhand 74 293 115 133 147 98.65Chhattisgarh 959 797 969 990 995 3.75Orissa 790 1,102 770 799 985 24.68India 16,075 33,821 18,233 17,651 19,348 20.36


• Jharkhand reported an increase of about 40 percent in the number of rapes in a time span of five years (2001 to 2006).

• Together Bihar and Jharkhand make this part of eastern India increasingly unsafe for women in terms of incidence of rape.

• Jharkhand has fared well compared to Uttarakhand where the rate of growth in incidence is very high. However, it is far behind Chhattisgarh where the rate of growth in incidence of rape is quite low.



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e. Incidence of Crime Against Women and Child

Crimes against women include rape, kidnapping & abduction, molestation, sexual harassment, forced prostitution, dowry deaths and importation of girls (NCRB, 2003). Under the Indian Penal Code (IPC) punishable crimes against children include infanticide, rape, kidnapping & abduction, foeticide, exposure and abandonment, procuration, selling and buying of girls, forced domestic and economic duties, and other unnatural duties. For the present discussion, all reported cases of crimes against women and children in the respective year have been considered.

Table A.1(e): Incidence of Crime against Women and Children

State 2001 2002 2003 2004 2005 2006

Change in 2001-06

(%)Jharkhand 2,270 2,601 2,132 1,887 2,641 3,091 36.17Bihar 5,439 5,800 4,563 6,107 6,134 6,806 25.13Chhattisgarh 4,574 8,915 4,935 2,307 4,596 4,995 9.20Uttarakhand 795 897 745 750 862 1,089 36.98West Bengal 6,737 7,017 4,199 9,244 12,123 13,217 96.19Orissa 5,425 4,835 4,383 2,744 6,335 6,979 28.65India 154,609 158,147 144,353 102,504 170,528 183,732 18.84


• Jharkhand registered a decline in the incidence of crime committed against women and children in 2004 since 2001 but the numbers increased thereafter.

• Among the newer states, Uttarakhand has recorded the lowest incidence of crime committed against women and children followed by Jharkhand in 2005.

• Jharkhand lies far below its neighbouring state, West Bengal and mother state Bihar where the incidence of crime committed against women and children is considerably high.



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f. Incidence of Crime Against Schedule Castes and Schedule Tribes

The Constitution of India provides that the state shall promote the social and economic upliftment of the weaker sections like Schedule Castes and Schedule Tribes. Since independence, various laws have been passed to prevent them from injustice and exploitation. As per Census 2001, SC & ST constitute around 40% of the total population of Jharkhand and thus crime committed against these sections indicates the lack of equality in the state and ineffectiveness of governance The crimes against Schedule Castes/ Schedule Tribes are broadly categorized under two categories1. Under the Indian Penal Code (IPC)

It includes crimes like murder, hurt, rape, kidnapping & abduction, dacoity, robbery, arson, others (other classified IPC crimes)

2. Under Special Laws (SL)It includes the crimes which come under Protection of Civil Rights Acts, 1955, Prevention of Atrocities Act 1989.

For the following discussion, all the reported cases of crimes against Schedule Castes and Schedule Tribes in the respective years have been taken.

Table A.1 (f): Incidence of Crime against SC and ST

State 2001 2003 2004 2005 2006Change in 2001-06 (%)

Jharkhand 440 184 249 760 665 51.14Bihar 1,350 1,799 2,691 1,906 2,099 55.48Uttarakhand 186 134 140 100 69 -62.90Chhattisgarh 987 1,483 1,374 951 1,027 4.05Orissa 2,468 1,641 1,917 2,041 1,502 -39.14India 39,718 32,141 32,422 31,840 32,861 -17.26


• Crimes committed against SCs and STs have decreased in 2006 compared to 2005 although the incidence had increased in previous years.

• Among the newly formed states, Uttarakhand has performed well compared to others.

• Crime has increased at all India level marginally.



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g. Civil and Armed Police Strength

Police force is essential for maintaining law and order, combating crime and regulating traffic. It is important for a state to have adequate police force, which should keep on increasing with the increase in population. Development and growth are feasible only when there is peace and order in the civil life of a state and the presence of a strong police force is essential for enforcing the law of the land and combating crime.

Table A.1(g)Civil and Armed Police strength

States 2002 2003 2004 2005 2006Change in 2001-06

(%)Jharkhand 8,930 17,659 20,992 24,563 25,730 188.13Bihar 48,968 42,707 49,590 51,046 43,273 -11.63Uttarakhand 9,092 10,373 12,173 11,947 9,518 4.69Chhattisgarh 10,909 12,715 20,350 23,350 18,147 66.35West Bengal 61,727 62,343 81,749 80,039 61,393 -0.54Orissa 27,392 27,044 35,265 34,911 27,913 1.90India 1,015,416 1,025,777 1,337,183 1,342,858 1,091,899 7.53


• The strength of police has increased in Jharkhand in 2006 compared to 2005. This may be attributed to increased Naxalite movement in the state.

• Other states have experienced reduction in the civil and armed police strengths.

• An important insight derived from the table is that in Jharkhand the strength of police is high. In spite of this high presence of police personnel in Jharkhand, the crime committed is not low. This calls for the police strength to be more efficient in maintaining law and order in the state.



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2. Public Finance

a. Expenditure on Health, and Family Welfare

Health and Family Welfare are crucial inputs into the well being of the population and the expenditure by the government in this sector indicates how seriously this commitment is taken. Public health & family welfare are some of the public services provided by the government. Expenditure in this sector reflects the proportion of total expenditure that the state invests in these public services.

Table A.2 (a): Share of expenditure on Health and Family Welfare in total disbursements (%)States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 4.9 4.2 3.3 2.9 5.8 6.3Bihar 4.9 4.2 2.9 2.6 2.6 4.4Chhattisgarh 4.3 4.0 0.9 1.3 1.4 3.9Madhya Pradesh 4.1 4.1 1.4 1.4 1.5 4Orissa 3.7 3.8 1.6 2.2 2.8 3.4Uttar Pradesh 3.6 3.8 0.9 2.1 2.6 6.4Uttarakhand 4.4 3.8 0.7 2.3 2.4 4.6West Bengal 5.0 4.9 1.1 1.3 1.6 4.4India 4.4 4.1 1.4 1.8 2.1 4.1

Source : Reserve Bank of India; Budget Documents of State Governments

• The percentage share of expenditure on health & family welfare in total expenditure has been higher in Jharkhand than that of other states except Uttar Pradesh where it is slightly higher. A possible reason might be that as a new state, Jharkhand is in the process of developing its overall infrastructural facilities for improving human resource potential which includes setting up hospitals, primary healthcare centres etc.

• The expenditure incurred by Jharkhand on health and family welfare is comparatively higher than other newly formed states, its neighbouring states as well as the national average thereby signifying that the state invests more than the national average on public services which is a positive sign from the perspective of long term progress of the state.



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b. Share of expenditure on education to total disbursements

A major priority of governments in developing economies is to build on human capital by improving access to and the quality of educational facilities to all sections of the society. The share of expenditure on education in total expenditure of the state budgets is just one indicator of the commitment of the state to fulfilling this objective.

Table A.2 (b): Share of expenditure on education to total disbursements (%)States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 16.2 19.0 11.5 11.7 13.5 15.2Bihar 20.7 18.4 14.3 13.9 14.2 17.5Madhya Pradesh 12.5 12.2 4.2 3.9 4.2 11.9Chhattisgarh 12.4 11.0 3.1 4.5 4.8 13.2Orissa 12.4 11.0 3.1 4.5 4.8 12.6Uttar Pradesh 16.0 14.6 2.9 6.5 8.0 15.2Uttarakhand 21.1 20.0 3.6 9.2 9.0 16.9India 16.1 15.0 5.0 6.3 7.2 14.2

Source : Reserve Bank of India; Budget Documents of State Governments

• Share of educational expenditure out of total expenditure in Jharkhand is slightly higher than the All India figure.

• The share of educational expenditure out of total expenditure spent by Jharkhand is also comparatively higher than the newly formed state of Chhattisgarh.

• Jharkhand also spends larger share of its budget on education compared to its neighbouring states like Orissa.



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c. Expenditure on Administration

Expenditure on administration includes the revenue expenditure of the state government in the administration of the state in the respective year. Administrative activities include activities like Secretariat-General Services, District Administration Services, Police, Public Works etc. It is an important measure of the importance given to administrative activities.

Table A.2 (c): Percentage of Total Expenditure on Administration

States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 10.7 9.0 7.2 6.7 9.7 9.0Bihar 9.6 8.1 5.3 5.7 5.5 6.8Chhattisgarh 6.4 6.4 1.3 1.7 2.4 2.2Uttarakhand 9.5 7.4 1.4 4.1 3.7 2.8West Bengal 6.5 6.3 1.4 1.8 2.0 1.4Orissa 6.7 4.2 2.1 2.4 2.8 3.1India 7.1 6.5 2.2 2.7 3.2 2.2

Source: Reserve Bank of India , Respective Years

• Jharkhand spends a considerable share of almost 9 percent of its total expenditure on administrative activities.

• Jharkhand spends a larger share of expenditure on administration compared to other newly formed states and other neighbouring states.

• The percentage share of all India expenditure on administrative activities is also much lower than Jharkhand’s percentage share.



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d. Expenditure on the Welfare of SC and ST

The Constitution of India classifies Scheduled Castes and Scheduled Tribes (SC/ST) as socially and economically weaker sections of the society. The state is required to take constructive actions to empower them. The amount spent on them can indicate how much the state invests in the upliftment of this section. It includes total actual expenditure, which is done by the government for the welfare of Schedule Castes and Schedule Tribes.

Table A.2 (d): Percentage of Total Expenditure on Welfare of SC and STStates 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 5.3 3.2 2.5 3.0 2.3 2.2Bihar 1.0 0.7 0.5 0.4 0.4 0.6Chhattisgarh 9.6 8.4 1.7 2.2 2.6 2.3Madhya Pradesh 4.4 4.9 1.7 1.7 1.9 0.8Orissa 2.2 2.0 0.7 1.1 1.4 1.6Uttar Pradesh 1.8 2.3 0.4 1.5 1.6 1.5Uttarakhand 1.2 0.9 0.2 1.0 1.1 0.8West Bengal 0.7 0.7 0.2 0.3 0.3 0.2India 1.9 1.8 0.6 0.9 1.0 0.8

Source: Reserve Bank of India, Respective Years

• Jharkhand spends around 2.2 percent of the total expenditure on the welfare of SCs and STs which is much higher than the corresponding All-India average figure.

• It should be mentioned that Jharkhand has a significant tribal population and this could be the reason behind greater expenditure on the welfare of SC/STs.

• Among new states, Chhattisgarh spends a higher proportion of total expenditure on the welfare of the deprived sections.



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e. Expenditure on Development

Some of the major heads under development expenditure include social services such as education, medical and public health.

Table A.2 (e): Percentage of Total Expenditure on Developmental ExpenditureStates 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 63.1 65.5 47.8 50.0 50.7 55.0Bihar 49.2 47.7 34.3 35.2 36.9 49.4Chhattisgarh 62.6 63.5 16.7 22.4 23.6 28.7Madhya Pradesh 61.3 58.6 25.3 22.3 23.1 15.7Orissa 46.5 46.1 20.0 22.7 28.1 33.0Uttar Pradesh 47.5 46.7 17.9 23.3 27.1 35.5Uttarakhand 61.6 55.8 10.5 32.7 34.7 30.1West Bengal 46.7 40.0 9.6 13.1 14.0 10.8India 54.2 51.2 19.2 24.1 27.1 20.7


• In Jharkhand almost 55 percent of the total expenditure is being incurred on development activities in the year 2006-07.

• When we compare the development expenditure of the new states with the

older states we find that generally new states have to make greater expenditure on development. However, Jharkhand spends more towards development compared to the other new states.

• In 2006-07 India spent just 21 percent of its total expenditure on development compared to states like Jharkhand and Bihar.



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f. Grants From the Center

This indicator looks at the grants received in the year from the Central Government. It shows how dependent the state is on the Center for their Revenues.

Table A.2 (f): Percentage of Total Revenue Receipts from GrantsStates 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Jharkhand 14.3 25.2 25.1 16.5 20.6 17.4 Bihar 12.2 15.2 16.2 23.2 21.1 23.6 Chhattisgarh 11.1 14.5 11.4 17.1 14.9 18.1 Madhya Pradesh 13.3 13.9 12.4 13.8 14.5 19.1 Orissa 17.6 21.3 18.2 23.6 27.3 21.7 Uttar Pradesh 12.9 8.3 7.8 12.7 11.9 13.9 Uttarakhand 48.4 45.1 43.6 54.9 48.2 39.9 West Bengal 20.2 15.4 11.4 13.5 13.6 17.7 India 16.9 16.3 16.2 17.5 18.3 19.2


• The percentage of grants received by Jharkhand from center has decreased in 2006-07 compared to 2005-06 though it had increased the previous year.

• Among new states, Uttarakhand has the highest dependence on grants compared to the other two. Being a hilly state, Uttarakhand has topographical and climatic constraints and needs more investment for achieving the same level of development.

• Jharkhand receives lower grants compared to neighbouring states like Bihar and Madhya Pradesh.



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3. Movement of Prices

The Consumer Price Index is one of the widely used indicators for assessing the movement of prices or inflation.

a. Movement of Prices for Urban Non-Manual Employees

The Consumer Price Index for Urban Non Manual Employees (CPI - UNME) measures the change in prices of a basket of goods consumed by the Urban Non-Manual Employees. This index is calculated monthly by the Central Statistical Organisation (CSO) for 59 urban centres across India. CPI-UNME uses the base year 1984-85. It is basically used for determining dearness allowances of employees of some foreign companies working in India in service sectors such as airlines, communications, banking, insurance and other financial services. It is also used under the Income Tax Act to determine capital gains and by the CSO for deflating selected service sectors’ GDP at current prices to get the corresponding GDP at constant factor cost.

Table A.3 (a): Inflation measured by Consumer Price Index for Urban Non-Manual Employees4 (%)

States 2006 2007Jharkhand 13.8 5.9Bihar 10.4 7.7Delhi 7.1 4.2Maharashtra 7.0 5.2

Source: Central Statistical OrganizationBase: 1984-85=100

• Inflation in CPI – UNME for Jharkhand is higher compared to advanced states such as Delhi and Maharashtra.

• The prices in Bihar for urban non manual employees have however risen more, compared to Jharkhand.

4 The CPI- UNME has been considered for the capital cities of the states under consideration.



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b. Movement of Prices for Industrial Workers

It is based on the Consumer Price Index of industrial workers (CPI – IW). The CPI – IW which also includes selected services and is measured on the basis of retail prices, and is used to used to determine the dearness allowance of employees in both the public and private sectors, is the appropriate indicator of general inflation.5 CPI for industrial workers is released by labour bureau, Ministry of Labour, Government of India.

Table A.3 (b): Inflation measured by Consumer Price Index for Industrial Workers (%)

State2007 2008

Jharkhand 6.20 11.68Bihar 8.46 7.09Delhi 5.60 5.30Maharashtra 5.43 7.35

Source: Labour bureauBase: 2001=100

• The percentage change in CPI for industrial workers in Jharkhand is higher than developed states like Delhi and Maharashtra.

• Jharkhand is also ahead of its mother state Bihar in terms of inflation in CPI for industrial workers.

5 Economic Survey, 2004-05



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4. Infrastructure

a. Road ConnectivityRural road connectivity is not only a key component of rural development but also an ingredient in ensuring sustainable poverty reduction. It promotes access to economic and social services by generating increased agricultural incomes and productive employment opportunities. The Pradhan Mantri Gram Sadak Yojana (PMGSY), was launched in the year 2000-01 by the Govt. of India to provide all weather road connectivity to unconnected rural habitations. It aimed to provide connectivity to all unconnected habitations having population above 1000 by 2003 and for population above 500 by the end of the Tenth Five Year Plan (2007).

Table A.4 (a): Percentage of Habitations connected by Pucca roads

State 2000 2008Jharkhand 50.0 56.3Bihar 30.8 37.6Chhattisgarh 27.5 62.6Uttarakhand 48.8 54.5Orissa 42.1 57.2West Bengal 30.5 43.8

All India State Mean 59.2 70.1Source: PMGSY, Ministry of Rural Development

• Among newly formed states, Chhattisgarh has witnessed the maximum rise in habitations being connected by rural roads.

• A marginal rise in connectivity has been experienced in Jharkhand as well as its parent state Bihar over a span of eight years. Still more than 45 percent of habitations remain to be connected by good roads.

• The habitations connected by rural roads in the state is higher than the neighbouring state of Orissa.



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b. Transport Vehicles

Transport vehicles include all the registered transport vehicles in the state across the given years. The major transport vehicles include buses, trucks, and taxis among others. It depicts the status of infrastructure of transportation in the state.

Table A.4 (b): Registered Buses, Trucks, Taxis and Other Vehicles (Per lakh People)

States

2001 2002 2003 2004

Buses/ trucks/

taxis Others

Buses/ trucks/

taxis Others

Buses/ trucks/

taxis Others

Buses/ trucks/

taxis OthersJharkhand 416 601 424 87 441 101 325 125

Bihar 134 69 138 210 101 110 62 47

Chhattisgarh 278 277 295 305 366 344 288 108

Uttarakhand 348 359 371 366 405 378 300 134

West Bengal 316 43 312 43 463 90 415 45

Orissa 283 156 308 170 339 183 234 151

INDIA 573 400 580 418 660 445 354 324Source: Department of Road Transport and Highways, Ministry of Shipping, Road

Transport and Highways

• The penetration of transport vehicles in Jharkhand is more than four times than that of Bihar.

• In Jharkhand the ratio of transport vehicles per million population is better than other newly formed states.



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c. Railway Lines in India

Railway is one of the most widely used transport services in India. It is an extremely efficient mode of transportation which unites the country economically, politically and culturally. The increase in route of railway lines within a state reflects how well its cities and villages are internally connected and also depicts its connectivity with other states. For the present discussion total rail length in kilometers has been used.

Table A.4 (c): Length of Railway Lines (Kms)

States 2001-02 2002-03 2003-04 2004-2005 2005-2006

Change (2001-05

(%)

Jharkhand 1,797 1,798 1,943 1,941 1,955 8.79

Bihar 3,429 3,224 3,377 3,379 3,330 -2.89

Madhya Pradesh 4,845 4,825 4,849 4,905 4,903 1.20

Chhattisgarh 1,180 1,180 1,159 1,159 1,186 0.51

Uttarakhand 356 345 345 345 345 -3.09

Uttar Pradesh 8,578 8,799 8,566 8,545 8,546 -0.37

India 63,140 63,122 63,221 63,465 63,332 0.30Source: Basic Road Statistics, Department of Road Transport and Highways, Ministry of Shipping, Road

Transport and Highways, Ministry of Railways, Government of India

• Jharkhand has shown an increasing trend in the growth of length of railway lines over the years.

• In some states like Bihar, Uttarakhand railway lengths have actually reduced over the years.

.



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d. Movement through Aviation

It includes the number of passengers traveling per day and number of outbound flight movement per day from the state in the respective years. Development of aviation shows the how fast the state is adapting to the rapid increase in economic growth. Passengers per outbound movement is the ratio of total number of passengers traveling in a day to the total number of flights going out in a day.

Table A.4 (d): Passengers per Outbound Movement

State 2005-06 2006-07

Jharkhand 28 38

Bihar 52 53

Madhya Pradesh 31 43

Orissa 46 52

Chhattisgarh 44 51

West Bengal 84 86

India 86 88Source: Airport Authority of India

• The average numbers of passengers traveling in Jharkhand is generally low (less than 40 passengers per flight per day), reflecting on the low levels of economic growth and development in the state. Compared to Jharkhand, Chhattisgarh fares much better.

• Among the neighbouring states, West Bengal has much more passengers per outbound movement than Jharkhand. This reflects the presence of Kolkata, the hub for transport in the region.



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e. Households with Electricity and LPG

It includes the total percentage of households having electricity and LPG connections.. Along with economic growth, electricity consumption increases as power has become an integral part of improved and modernized infrastructure for production as well as consumption. The per capita consumption of electricity therefore reflects upon the level of such improvement and modernization, in short, of development.

Table A.4 (e): Percentage of households having LPG connection and Electricity connections across states

State

LPG Electricity

2001 2006 2001 2006Jharkhand 6.7 11.7 24.3 32.2

Bihar 3.8 7.1 10.3 13.9

Chhattisgarh 7.5 12.7 53.1 64.2

Uttarakhand 33.5 34.5 60.3 66.8

Maharashtra 29.7 41.6 77.5 85.4

Punjab 33.7 42.8 91.9 96.4

Tamil Nadu 19.1 35.4 78.2 87.8

INDIA 17.5 25.4 55.8 64.1Source: Census 2001,Market Skyline of India,2006

• Households in Jharkhand are more likely to have LPG and electricity connections than Bihar. However, there is significant scope for increasing the coverage of both LPG and electricity as the all India average stands at 25.4 percent and 64.09 percent respectively.

• Amongst the newly formed states, Uttarakhand has the highest percentage of households having electricity and LPG connections, followed by Chhattisgarh..

• The higher-ranking states like Maharashtra and Punjab are much better off than Jharkhand with Punjab having more than 90 percent of households have electricity



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f. Electricity

Electricity has become basic necessity of our daily lives. For the present discussion the percentage deficit or surplus of electricity supply in relation to its demand has been used. It explains how effectively government can meet the demand of electricity in the state.

Table A.4 (f): Surplus/deficit of Electricity across different States (%)States 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-08Jharkhand -0.6 -4.2 -2.2 -6.9 -2.4 -10.9Uttarakhand -2.8 -2.1 -3.4 -13.5 -4.3 0Chhattisgarh -3.3 -2.7 -1.7 -12.9 -18.2 -14.8Punjab -6.3 -2.9 -9.0 -20.3 -1.2 -12.9Maharashtra -13.6 -10.2 -12.1 -23.1 -30.4 -24.9Bihar -7.8 -22.5 10.1 -15.1 -12.2 -27.8Orissa -2.1 -1.7 -0.8 -1.7 -3.4 -2.3West Bengal -1.4 -2.2 -1.6 -3.0 -0.7 -6India -9.0 -7.1 -7.3 -12.3 -13.5 -14.4

Source: Central Electricity Authority (CEA)

• Jharkhand was able to meet almost 90 percent of the demand of electricity in the state during 2006-07. The figures were more impressive in the initial years where they met almost entire demand.

• Jharkhand has shown much better performance in meeting power demands than India as a whole.

• Interestingly, Jharkhand’s performance is better than some of the developed states like Punjab and Maharashtra.

• The neighbouring states of West Bengal have however performed better in meeting the demands of electricity than Jharkhand.

• Among the new states, Uttarakhand leads in meeting the power demand followed by Jharkhand and Chhattisgarh.



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g. Banks

Banks have always been intermediaries of money in an economy. Most of the major transactions in the economy are done through banks. They are also one of the major employment generators. Higher number of banks in any state reflects the growing economy of the state and also its effort made in the direction of achieving financial inclusion among the society. For this discussion all the banks registered with RBI in the respective years have been taken.

Table A.4 (g): Per capita bank branches across different states, 2006-07

StateBank branches/ Per ten

thousand populationJharkhand 0.5Punjab 1.1Bihar 0.4Tamil Nadu 0.8Chhattisgarh 0.5

Uttarakhand 1.0Maharashtra 0.7India 0.6

Source: RBI

• Economically developed states like Maharashtra, Punjab and Tamil Nadu have better banking coverage than Jharkhand.

• Among the new states, Uttarakhand has comparatively higher per capita bank branches compared to the other two.

• Low number of bank branches will impede the flow of investments and therefore the government should take constructive steps to address this problem.



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h. Post Offices

According to the Economic Survey 2003-04 ‘ The Indian postal network is among the largest networks in the world in terms of areas covered or population served..’ Besides providing access to affordable means of communication anywhere in the country, it also provides financial services such as savings accounts, money order transactions, Postal Life Insurance etc. It is actually the largest Bank in India in terms of network, accounts and annual deposits. The number of post offices in the state is a good measure of the communication and financial services infrastructure .

Table A.4 (h): Post Offices per ten thousand Population across States, 2005State Post offices

Jharkhand 1.0Bihar 1.0Chhattisgarh 1.4Uttarakhand 2.9Maharashtra 1.3Punjab 1.5Tamil Nadu 1.9West Bengal 1.1Orissa 2.1INDIA 1.4

Source: India Posts, Ministry of communications & IT

• The number of post offices per thousand population in Jharkhand is less than that of the all India average.

• Though the density of post offices in Jharkhand is slightly better than Bihar, it still lags behind the other new states.

• Uttarakhand, in fact, has the highest post office density with its percentage points being almost two times of the all India average.



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B. Jharkhand As a Knowledge Economy

Information is the foundation of any economy. Factors such as the method of provision of information, its spread and the extent of technical development in an economy, in terms of accepting and spreading information are crucial in determining the pace of development. This section is devoted to the assessment of Jharkhand’s information base.

1. Communication

Good public communication is one of the major deciding factors in the development of any economy. Today communication modes like telephones, cellular phones and internet are connecting even farthest parts of world. Increasingly various business and services have been provided through these communication modes.

a. Telephone Connections

Telephone lines play a major role in the public communication of any state. It is one of the most easily accessible and cheap modes of communication. Almost the entire nation today has been covered by telecommunication-network. The present analysis reports the number of telephones per 100 persons.

Table B.1 (a): Telephone Density (%) across states

State 2006-07 2007-08Jharkhand 3.2 3.4Bihar 6.7 11.1Chhattisgarh 2.9 3.9Uttarakhand 8.4 10.2Maharashtra 26.8 36.1Tamil Nadu 27.1 40.7Punjab 36.8 47.6West Bengal 13.9 20.1Orissa 8.8 13.4India 17.1 24.2

Source: Annual Report, Department of Telecommunications

• Only a little higher than 3 percent people have telephone connections in Jharkhand. This highlights low coverage of telephones. This increases the dependence of people on postal network, which is again not very strong in Jharkhand.

• There is tremendous scope for increasing the coverage of telecommunications in Jharkhand. Even though coverage has increased in the last few years, it is still below the national average.

• Among the newly formed states, Uttarakhand has the highest density of telephone connections followed by Chhattisgarh.



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• Jharkhand’s figures stands much below in comparison to the figures of the developed states like Punjab, Maharashtra and Tamil Nadu. In Punjab at least one person out of every two people has telephone connection.

b. Mobile Connections per 1000 people Mobile phone technology has rapidly become a necessity in recent years especially in urban areas. Greater use of mobile telephone is an indicator of an technologically advancing economy and its growing acceptance among the general population. Further it also indicates how well a state is adapting to advancing technology and demand for the same especially since the telecom sector has now been privatized. Mobile density i.e. mobiles per 1000 persons has been used in the present discussion and it includes all the connections with all the service providers operating in the state in the respective years.

Table B.1 (b): Mobile Connections per 1000 peopleState 2006-07 2007-08Jharkhand 16.6 19.1Bihar 55.8 98.4Chhattisgarh 16.7 25.3Uttarakhand 46.8 66.6West Bengal 50.4 90.9India 132.5 203.8

Source: Annual Report, Department of telecommunications

• Penetration of mobile connections in Jharkhand is significantly lower than all India.

• Bihar, its parent state, has almost five times higher penetration than Jharkhand.

• Among the newly formed states, Uttarakhand has about 66 mobile connections per 1000 persons followed by Chhattisgarh with 25 mobile connections per 1000 persons.

.



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c. Internet Users

The Internet has emerged as a new tool of communication for last few years. It is a highly versatile mode of accessing information. It is used for business promotion, transactions, making contracts etc. In this discussion all the registered internet connections have been considered.

Table B.1 (c): Internet Connections (per lakh population) across States

State 2001 2002 2003

Jharkhand 83 42 51

Bihar 13 14 22

Chhattisgarh 20 37 43

Uttarakhand 69 126 223

West Bengal 334 163 174

Orissa 50 47 60

Maharashtra 948 789 961

India 347 310 330Source: Ministry of Telecommunication, Govt. of India.,

Rajya Sabha Unstarred Question No. 1733, dated 18.12.2003

• Internet has miniscule prevalence in Jharkhand, but it is much higher than its parent state. In comparison to the all India average Jharkhand’s internet penetration is not even one sixth. There is an urgent need to bridge this digital-gap.

• Even though it is one of the newly formed states Uttarakhand, surprisingly has almost four times penetration of internet than Jharkhand. This difference is probably on account of high literacy rate in Uttarakhand.



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2. Educational Institutions

a. Pre-College Institutions/Schools

Pre college level of education forms the foundation for higher professional education. It also marks completion of school education. Current discussion includes all the registered Pre-College institutions or schools in the state.

Table B.2 (a): Number of Pre-College Institutions/Schools per Million People State 2002-03 2003-04 2004-05 2005-06Jharkhand 817 768 785 802Bihar 629 616 606 598Madhya Pradesh 1,470 1,665 2,158 2,104Chhattisgarh 1,555 2,067 2,143 1,991Uttar Pradesh 886 942 990 1,017Uttarakhand 2,162 2,171 2,199 2,214Maharashtra 1,340 1,375 1,375 861Kerala 419 424 463 459India 1,036 1,099 1,150 1,098

Source: Selected Educational Statistics, respective years

• Density of pre-college institutes or schools is considerably lower in Jharkhand than all India average though it has shown a rising trend over the years.

• Among the newly formed states, Uttarakhand has the highest density of pre college institutes followed by Chhattisgarh and Jharkhand.



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b. Higher Educational Institutions/Post School Institutions

The presence of higher educational institutions shows the existence of infrastructure for higher education. Presence of higher educational institutes is also indicative of the demand for the higher education. Good educational institutes not only attract students from within the state but also those from outside. It includes all the registered Post School and Higher Educational Institutions in the state in the respective years.

Table B.2 (b): Number of Higher Educational Institutions/Post School Institutions perMillion People

State 2002-03 2003-04 2004-05 2005-06Jharkhand 6 6 5 6Bihar 10 4 10 10Madhya Pradesh 13 13 17 17Chhattisgarh 12 11 11 19Uttar Pradesh 7 7 11 15Uttarakhand 9 9 13 18Maharashtra 19 19 18 24Kerala 12 12 12 17India 1 13 15 19


• Jharkhand has very low number of higher educational institutions per million people compared to the newer states.

• It also falls below its parent state, Bihar. The Government should take steps to increase the access of higher education to its people thereby investing in future human capital.



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c. Engineering, Technical & Architecture Institutions

Increasingly economies are becoming more technically advanced which requires technically trained work force. This makes the presence of technical colleges important to meet this growing demand. For this discussion all the registered engineering, technological and architecture institutes in the respective years have been considered.

Table B.2(c): Number of Engineering, Technical & Architecture Institutions per10 Million People



• Jharkhand has a long way to go to have considerable penetration of technically oriented institutes though the number has increased in 2005-06 compared to previous years.

• Generally the presence of professional institutes is low in the new states except Uttarakhand where it has shown a considerable rise. In case of Jharkhand and Chhattisgarh, it could be attributed to the nascent phase of statehood to have an adequate infrastructure with respect to professional education.

• Jharkhand falls far below states like Kerala where the educational standards is better than most other states.

• Realizing the importance of good quality education, the state government has already proposed to open an Indian Institute of Technology at Dumka, an Indian Institute of Management at Bokaro and an Indian Institute of Information Technology at Hazaribagh.



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d. Medical Colleges

Health is a public service and hence presence of adequate number of doctors and other nurses etc is indispensable for the system to work effectively. For adequate training of medical professional, proper infrastructure is essential. We have included all the registered medical colleges in this discussion. Medical colleges cover education in the various systems of medicine practiced in India – Allopathy, Ayurved, Homeopathy, Unani – as well as colleges offering training in nursing and pharmacy. They are indispensable for providing an adequate number of professionals in the health care system of the country.

Table B.2 (d): Number of Medical Colleges per10 Million People



• Jharkhand is far behind the educationally developed states like Kerala.

• Among the newly formed states, Jharkhand has the lowest number of medical colleges compared to other two states.

• Jharkhand’s figure is also far behind India as a whole.



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e. Management, Law, IT, Agricultural Colleges

Management, Law , Information Technology and Agricultural Education are specialized courses of education. Increasingly economies require people with management and legal skills who can provide consultancy in the growing service sector. This section includes all the registered management, law, IT, agricultural colleges in the state in the respective years.

Table B.2 (e): Number of Management, Law, IT, Agricultural Colleges perMillion People

State 2002-03 2003-04 2004-05 2005-06Jharkhand 0.5 0.5 0.3 0.8Bihar 0.7 0.7 0.7 0.4Madhya Pradesh 3.3 3.3 3.2 2.2Chhattisgarh 1.5 1.5 1.4 2.2Uttar Pradesh 0.7 1.5 3.9 3.8Uttarakhand 3.2 3.1 3.0 3.0Maharashtra 1.3 1.3 1.3 4.0Kerala 2.5 2.5 2.5 2.5India 1.9 1.9 2.2 2.3


• In Jharkhand the penetration of management educational institutions is less

than the all India average.

• In 2005-06, the number of management institutes per million students in Jharkhand has slightly increased, giving some solace to the aspiring management students.

• Among the newly formed states, Uttarakhand has shown comparatively better performance followed by Chhattisgarh.



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C. Socio-Economic Profile

1.Demography

a. Population

Population of a particular region refer to the number of people residing within that specified geographical area. The population of a region is an important indicator for wide section of the society ranging from the policy makers to the investors.

Table C.1 (a): Growth rate of Population between 1991 & 2001

States1991-2001

Rural Urban Total

Jharkhand 21.6 29.0 23.2

Bihar 28.3 29.3 28.4

Chhattisgarh 14.2 36.2 18.1

Uttarakhand 15.2 32.8 19.2

Punjab 12.3 37.6 19.8

Maharashtra 15.2 34.3 22.6

Tamil Nadu -5.2 42.8 11.2

West Bengal 16.9 20.2 17.8

Orissa 13.8 29.8 15.9

INDIA 17.9 31.2 21.3

Source: Census of India, 2001

. • Between 1991 and 2001 population growth in Jharkhand was considerably

higher than the other two newly formed states of Uttarakhand and Chhattisgarh. It was even higher than the all India average.

• If we compare population growth across sectors, we find that Chhattisgarh has the highest growth rate in rural population.

• Jharkhand’s population growth is however less than its mother state Bihar.



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b. Sex Ratio

The sex ratio is measured as number of females per thousand males. Sex ratio is an indicator of the extent of gender biasness prevailing in a particular region and also reflects the extent of discrimination shown against a girl child.

Table C.1 (b) Sex Ratio, 2001

State Sex Ratio0-6 yrs Sex

Ratio

Jharkhand 941 965

Bihar 919 942

Chhattisgarh 989 975

Uttarakhand 962 908

Maharashtra 922 913

Punjab 876 798

Tamil Nadu 987 942

INDIA 933 927Source: Census of India, 2001

• The number of females per thousand males of Jharkhand is higher than India as a whole.

• In spite of faring better than its mother state, Bihar, and economically better performing states such as Maharashtra and Punjab, Jharkhand trails behind the two other newly formed states.

• A positive aspect emerges from the fact that the sex ratio in 0-6 years age group in Jharkhand is much higher as compared to that for overall population. In the 0 to 6 years age group, Jharkhand performs much better than all the states under consideration except Chhattisgarh

• This suggests that gender bias is comparatively less in Jharkhand than the country as a whole. This is also an opportunity for the future economic and social development to build upon.



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c. SC and ST population

The proportion of scheduled castes(SC) and scheduled tribes(ST) residing in a particular region shows the proportion of backward sections in the entire population. This gives an indication to the policy makers to take various constructive steps for the betterment of these backward sections.

Table C.1 (c) Percentage of SC & ST population, 2001

States SC ST

Jharkhand 11.8 26.3

Bihar 15.7 0.9

Chhattisgarh 11.6 31.8

Uttarakhand 17.9 3.0

Punjab 28.9 0.0

Maharashtra 10.2 8.9

Tamil Nadu 19.0 1.0

West Bengal 23.0 5.5

Orissa 16.5 22.1

INDIA 16.2 8.2Source: Census of India, 2001

• STs constitute a considerable proportion of Jharkhand’s population. This proportion is more than three times that of all India.

• Among the newly formed states, Chhattisgarh has the highest proportion of tribal population followed by Jharkhand,whereas Uttarakhand has the highest proportion of SC population.

• Among Jharkhand’s neighboring states, West Bengal has the highest proportion of SC population. Orissa also has a considerable proportion of tribal population.



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2. Workforce

The workforce is the percentage of the total population who are working in return for monetary incentives. Therefore, it does not include housewives/homemakers, working in a family business etc., which do not involve monetary incentives.

Table C.2 Percentage of workers in the Total population, 2001

States Main workers Marginal workers Non-workers

Jharkhand 23.92 13.59 62.48

Bihar 25.37 8.34 66.3


Uttarakhand 27.36 9.56 63.08

Punjab 32.17 5.3 62.53


Tamil Nadu 38.07 6.6 55.33

West Bengal 28.7 8.1 63.2

Orissa 26.1 12.8 61.1

INDIA 30.43 8.67 60.9Source: Census of India, 2001

• In Jharkhand, percentage of people who are not workers exceeds that of Chhattisgarh by almost 10 percentage points. However, the situation in Jharkhand is very similar to Uttarakhand and India as a whole. Even Punjab, which is one of the economically developed states, has almost equal share of people who do not fall in the working category.

.• Among the three newly formed states, Jharkhand accounts for maximum

percentage of people who had not worked for the major part of the reference period (i.e. less than 6 months). The percentage points are almost doubled when compared with the economically developed states like Punjab and Maharashtra. The percentage of marginal workers is also much higher than all India average, which is very similar to Bihar.

• Percentage of main workers in the total population in Jharkhand is considerably lower than the India average. In fact, Jharkhand has the minimum percentage of people having full employment as compared to all the other states considered. This could be due to lower avenues for regular employment.

• Overall therefore, lower percentage of people working will lead to greater pressures on household budgets for meeting basic needs.



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3. Basic Necessity

a. Head Count Ratio (HCR)

The head-count ratio is computed on the basis of National Sample Survey data on consumption expenditure. People with an income below a predefined poverty norm( also called poverty line) are "poor" and the proportion of the poor to the aggregate population defines the head-count ratio.

Symbolically, HCR = q/n * 100 (Where q is the number of persons below poverty line and n is the total population.)

Table C.3 (a) Head Count Ratio

State 1999-00 2004-05

Jharkhand 43.96 33.15

Bihar 40.92 33.36

Chhattisgarh 40.54 36.46

Uttarakhand 15.20 31.67

Punjab 6.16 4.98

Maharashtra 25.02 25.05

Tamil Nadu 21.12 17.17

West Bengal 27.02 20.96

Orissa 47.15 40.09

India 26.10 21.76

Source: NSSO 55thand 61st (Consumer Expenditure)round, 1999-2000 & 2004-05

• Percentage of population below poverty line is significantly high for Jharkhand, much higher than that of India as a whole although over the years it has successfully reduced this percentage.

• Among the newly formed states, Chhattisgarh has the highest percentage of population below poverty line in 2004-05 followed by Jharkhand.

• When compared with the neighbouring states, Orissa has the highest percentage of population below poverty line. The HCR of Jharkhand is also higher than that of Bihar, the mother state.

• Jharkhand is far behind the economically better performing states such as Punjab, Maharashtra and Tamil Nadu.

• Overall, more than two out of every five people cannot meet their basic needs in Jharkhand. High poverty is reflected in all other measures of socio-



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economic development. This calls for constructive steps to be taken by the government to eradicate the stark poverty.



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b. Food Sufficiency

Food Sufficiency is defined as a household where every member has had at least two square meals a day . This measures the extent of nutritional poverty of a country. India has the largest number of the absolutely poor. This in turn implies that the number of households not having food sufficiency is also very high. It has been estimated that about 27.3 million people had to suffer some degree of hunger and as many as 23 percent of the population remained undernourished as of late 1990s.

Table C.3 (b) Percentage of household without food sufficiency, 2004-05

State% of households without

food sufficiency

Jharkhand 0.57

Bihar 2.69

Chhattisgarh 2.24

Uttarakhand 0.39

Punjab 0.65

Maharashtra 0.84

Tamil Nadu 0.30

West Bengal 8.91

Orissa 5.24

India 1.93Source: NSSO 61st (Employment & Unemployment) round

• The percentage of households not getting two square meals per day in Jharkhand is lower than that of its mother state Bihar. It also trails behind the all India figure.

• Among the newly formed states, Chhattisgarh has the maximumpercentage of households who live without sufficient food followed by Jharkhand.

• Jharkhand performs much better on this front compared to its neighbours like

West Bengal and Orissa.



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c. Safe Drinking Water & Sanitation Facility

If a household has access to piped drinking water, it is considered to have access to safe drinking water. While every household should have the provision of safe drinking water and basic sanitation facilities in its premises, this facility is not provided for the majority of households in rural areas and also in many parts of urban centres. The situation is grim in many states and well-governed states are those who would demonstrate a high proportion of rural and urban households enjoying such facilities.

Table C.3 (c) Percentage Households using piped drinking waterState Urban RuralJharkhand 44.4 0Bihar 19.8 1.2Chhattisgarh 55.5 6.0Orissa 51.7 1.9West Bengal 67.0 9.5India 71.0 27.9

Source : NFHS-III-2005-06

• Urban Jharkhand performs much better than the urban Bihar in providing their people access to piped drinking water. However, situation in the rural Jharkhand is alarming with neglible number of households having access to piped drinking water.

• Also both Bihar and Jharkhand have much lower coverage of piped drinking water as compared to the national average.

Table C.3 (d) Households having access to toilet facility

Source : NFHS-III-2005-06

• In

terms of providing access to toilet facility in urban areas Jharkhand performs much better than its neighboring states of Orissa and Chhattisgarh. However, the coverage of toilet facility is abysmally low in rural areas of the state.

• Jharkhand needs to develop the poor sanitation facilities which in turn will raise the standard of living of the people.

Jharkhand development report November 2008

State Urban RuralJharkhand 73.7 5.0Bihar 73.0 16.2Chhattisgarh 65.5 5.6Orissa 58.9 11.3West Bengal 90.5 44.8India 83.1 25.9

67


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4. Health

a. Infant Mortality Rate

Infant mortality rate (IMR) refers to the number of infants, per 1000 live births, dying before completing one year of age. Infancy is a stage when the human body is most susceptible to diseases, and therefore proper hygiene, care and nutrition are essential. The infant mortality rate can be significantly reduced through the dissemination of requisite health care for mother and child and is therefore a marker of a society’s socio-economic development. Reduction in infant mortality is a major policy goal and thus part of the strategy to achieve health for all in India.

Table C.4 (a) Infant Mortality rate (IMR)

State IMR(2005) IMR(2006) IMR(2007)

Male IMR/Female

IMR(2005)

Male IMR/Female

IMR(2006)

Male IMR/Female

IMR(2007)

Jharkhand 50 49 48 0.74 0.88 0.96

Bihar 61 60 58 0.97 0.92 0.98

Chhattisgarh 63 61 59 0.98 0.95 0.95

Uttarakhand 42 43 48 0.77 0.95 0.98

West Bengal 38 38 37 0.97 0.93 0.97

Orissa 75 73 71 0.96 0.99 0.97

Maharashtra 36 35 34 0.92 0.97 0.94

Punjab 44 44 43 0.85 0.78 0.93

Tamil Nadu 37 37 35 0.90 0.97 0.94

INDIA 58 57 55 0.92 0.95 0.98

Source: SRS Bulletin, respective years

• The infant mortality rate in Jharkhand has reduced marginally from 50 in 2005 to 48 in 2007.

• Though the ratio of male to female IMR has increased during the same period, it is still below the national average.

• Among the new states, Chhattisgarh has the highest IMR.

• Among the neighboring states, Orissa has very high IMR compared to others.



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b. Percentage of assisted births

Percentage of births assisted by trained health professional. Trained health professionals includes doctor, auxiliary nurse midwife, nurse, midwife, lady health visitor or other health professional. It does not include dais and other traditional attendants.

Table C.4 (b) Percentage of Assisted Births across different states

State 1992-93 1998-99 2005-06

Jharkhand 17.8 27.1 28.7


Uttarakhand 35.1 33.1 41.5

Bihar 25.1 27.0 30.9


Punjab 62.6 63.3 68.6

Tamil Nadu 83.8 90.3 93.2

West Bengal 44.4 58.0 45.7

Orissa 33.5 42.7 46.4

India 42.3 42.8 48.3Source: National Family Health Survey, I,II & III

• In Jharkhand, the percentage of assisted births has increased by a little more than 10 percentage points, since 1992-93.

• In contrast, in Bihar this percentage has just increased by 5 percentage points.

• Other new states have shown better performance in this context where the percentage of assisted births has increased substantially thereby depicting improvement of health facilities provided in the state.

• Among the neighbouring states, both West Bengal and Orissa have better health conditions prevailing than Jharkhand.

• In Tamil Nadu, more than 90 percent of women are being assisted by trained personnel during delivery.



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c. Estimated Death Rate

The Death rate gives the number of deaths during a year per thousand mid year population and is also known as the crude death rate. While the death rate gives only a rough indicator of the mortality situation, it accurately measures the impact of current mortality on population growth. Access to good quality health services is an important factor in reducing the death rate. Better household hygiene practices, access to sanitation, and water supply amenities aid in further reduction in death rate.

Table C.4 (c) Death Rate across different states, 2007State Death RateJharkhand 7.3Bihar 7.5Chhattisgarh 8.1Uttarakhand 6.8West Bengal 6.3Orissa 9.2Maharashtra 6.6Punjab 7.0Tamil Nadu 7.2INDIA 7.4

Source: Sample Registration System (SRS) Bulletin

• The average death rate of Jharkhand is slightly lower than that of India as a whole.

• The death rate of Jharkhand is slightly more than that of Maharashtra, Punjab and Tamil Nadu.

• Amongst the newly formed states, Chhattisgarh has the highest death rate followed by Jharkhand.

• Among the neighboring states, Orissa has a high death rate of 9.2 percent.



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5. Education

a. Literacy rate

The Literacy Rate is measured as a percentage of population aged seven years and above who are able to read and write simple sentences. As per the Census, literacy is defined as the ability to read and write the person’s name and to form simple sentences. Higher literacy levels in a state denote rising socio-economic development and universal literacy is a crucial step towards achieving overall progress.

Table C.5 (a) Literacy Rate across different states, 2004-05

States Literacy Rate (%)

Jharkhand 58.82

Bihar 54.84

Chhattisgarh 65.60

Uttarakhand 72.64

Maharashtra 77.28

Punjab 73.40

Kerala 91.82

West Bengal 72.15

Orissa 64.06

India 67.30Source: NSSO 61st (Employment and Unemployment) Round (2004-05)

• Jharkhand has a comparatively lower literacy rate with just 59% people beingliterate and falls below the all India figure.

.• Though the state performs better than its mother state, Bihar, it trails behind

the newly formed states. Amongst the three, Uttarakhand fares the best with almost three fourths of the population being literate.

• The high performing states like Maharashtra, Punjab, Tamil Nadu, have more than 70% literate population.

• In other words, Jharkhand has a long way to go if it is to achieve its socioeconomic development goals. And it should avail the benefits of various literacy campaigns introduced from time to time by the central government.



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b. Proportion of 10 plus children having completed Primary Education

Primary schools are up to either standard IV or V in different states and as per the formal education system a child between the ages 9 and 11 years would have ordinarily completed the primary level of education. Thus the primary school completion rate is the percentage of children in the age group 10 to 12 years who have completed this level of education. This ratio measures educational attainment based on enrolment at the right age and timely completion of primary school. Thus a higher percentage of timely completion of primary schooling gives an indication that the programmes and plans of the government are effective.

Table C.5 (b) Percentage of Children having completed primary schooling across different states, 2004-2005

StatesPrimary Completion

Rate (%)

Jharkhand 34.84

Bihar 28.04

Chhattisgarh 32.16

Uttarakhand 44.87

Maharashtra 49.08

Punjab 47.90

Kerala 61.86

West Bengal 49.81

Orissa 49.67

India 42.50 Source: NSSO 61st round (Employment & Unemployment)

• The earlier the children complete primary school, the more they can learn at higher levels of schooling. In Jharkhand barely a third of the 10 year olds have completed primary education. Though it is better than some neighboring states in this respect, its primary education system needs strengthening to achieve levels as in other parts of the country

• Among the newly formed states, Uttarakhand has the highest proportion of children completing primary schooling within the given age group followed by Jharkhand.

• Jharkhand also falls far below other neighbouring states like West Bengal and

Orissa.

• Jharkhand also falls behind the high-ranking states like Maharashtra and Punjab.

• Primary school completion rate is a very good proxy for the quality of education that is being provided in state schools. The figures suggest that primary educational institutions are not being able to provide education that



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will (i) retain the children in school, and (ii) provide them with education that their parents consider beneficial enough to send their children to school.



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c. Ratio of girls to boys enrolled in primary and middle school

Gender disparity in education is a concern in India. This ratio measures disparity at two levels of formal education. It is the ratio of number of girls enrolled in a particular level to the number of boys enrolled in a particular level.

Table C.5 (c) Ratio of girls to boys enrolled in primary and middle schoolStates 2001-02 2002-03 2003-04 2004-05 2005-06Jharkhand 0.7 0.6 0.8 0.8 0.8Bihar 0.6 0.7 0.7 0.7 0.7Chhattisgarh 0.8 0.9 0.9 0.9 0.8Uttarakhand 1.0 1.0 1.0 0.9 0.9West Bengal 0.9 0.9 1.0 1.0 0.9Orissa 0.7 0.9 0.9 0.9 0.9India 0.8 0.8 0.9 0.9 0.9


• The ratio of girls to boys enrolled in primary and middle school for Jharkhand has remained stagnant since the last 3 years. The ratio is below the primary level.

• The ratio of girls to boys in Jharkhand is higher than its mother state Bihar.

• Among the new states, Uttarakhand has minimum gender biasness in the state which is reflected in the higher ratio of girls to boys enrolment in primary and middle schooling. Uttarakhand is followed by Chhattisgarh.



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d. Pupil Teacher Ratio

The pupil teacher ratio is defined as number of students attended by a teacher. It reflects the degree up to which a teacher can devote personalized attention to his pupils. Adequate trained teachers are essential for the educational upliftment. It takes into account all the teachers teaching and the students enrolled in higher educational levels i.e. secondary, senior secondary or intermediate schools.

Table C.5 (d) Pupil Teacher Ratio across different statesState 2001-02 2002-03 2003-04 2004-05 2005-06Jharkhand 24 26 24 24 28Bihar 18 20 18 19 17Chhattisgarh 31 32 32 32 36Uttarakhand 35 38 37 38 44West Bengal 31 30 29 30 29Orissa 18 17 17 17 18INDIA 21 22 22 25 26

Source: Selected Educational Statistics ,respective years

• Lower pupil teacher ratio is an indication of better quality of education The pupil teacher ratio in Jharkhand has shown a marginal increase over the years, which calls for attracting talented and committed individuals to take up teaching as a profession.

• Among the new states, Jharkhand has the lowest pupil teacher ratio followed by Chhattisgarh and Uttarakhand.

• Jharkhand performs at par with India in terms of Pupil-Teacher Ratio at the higher educational level.



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e. Total expenditure of Education Department on Primary & Middle Level

This variable measures the per person expenditure made by the government on primary and middle level education. As a social and development sector issue it is important that the government spends adequately on this aspect.

Table C.5 (e) Total Expenditure on primary and middle level education per child in 6-14 years age group, (Rs. Per Person)

State 2005-06Jharkhand 1,821Bihar 1,393Chhattisgarh 1,788Maharashtra 2,301Punjab 1,189Orissa 1,743West Bengal 1,279India 1,810

Source : Analysis of budgeted expenditure on education, Ministry of HRD

• The expenditure on primary and middle education per person for Jharkhand is higher than that of Bihar. The expenditure is also higher than that of Chhattisgarh in 2005-06.

• At about 1800 rupees per head, the expenditure incurred by Jharkhand stategovernment on primary and middle school education is much less than

that of higher-ranking states like Maharashtra.

• The expenditure incurred by the state is a little higher than the national average.



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6. Agriculture

a.Net irrigated area/net sown area

Agriculture productivity is dependent on irrigation of the sown area. Higher percentage of net irrigated area to net area sown increases the productivity of the land and mitigates the negative impact of rainfall variation. For sustained agricultural growth, the availability of water is crucial and this is one aspect on which many states have failed to deliver.

Table C.6 (a) Net Irrigated Area over Net Sown AreaStates 2001-02 2002-03 2003-04 2004-05 2005-06Jharkhand 9.2 9.2 9.2 9.2 9.3Bihar 61.1 60.5 60.1 60.1 54.5Chhattisgarh 24.0 22.5 22.8 25.3 26.2Punjab 95.4 98.1 95.2 95.2 95.2Tamil Nadu 54.2 50.3 45.8 51.7 55.7Uttarakhand 44.5 44.9 44.5 44.5 45.0

Source: Ministry of Agriculture, Govt. of India

• Jharkhand fares very poorly in terms of irrigation of its agricultural land. Less

than 10 percent of the total sown area of Jharkhand is under irrigation and is almost stagnant over last five years.

• Economically better performing states like Punjab have as high as 95 percent of their sown area under irrigation.

• Among the newly formed states, Uttarakhand has the highest percentage of their sown area under irrigation followed by Chhattisgarh.

• The relatively low irrigated area for the state will continue to be a constraint on its agricultural development. However, since it receives high seasonal rains, efforts should be made to develop tanks, ponds and lakes across the state. These will not only help in maintaining high ground-water levels, but will also be used directly for irrigation purposes.



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b. Food grain yield

Agricultural productivity is measured through yield of basic food grains which includes cereals and pulses.

Table C.6 (b) Food grain yield (Kilograms per hectare)States 2001-02 2002-03 2003-04 2004-05 2005-06Jharkhand 1199 1053 1490 1,479 1,077Bihar 1664 1568 1600 1,535 1,311Chhattisgarh 1118 651 1228 1,278 1,111Orissa 1399 716 1341 1,414 1,349Punjab 4040 3828 3929 3,943 3,986Uttarakhand 1742 1508 1672 1,649 1,548West Bengal 2424 2374 2422 2,444 2,423Tamil Nadu 2209 1612 1549 1,536 1,847Maharashtra 874 846 897 917 948India 1734 1535 1731 1,744 1,716

Source: Ministry of Agriculture, Govt. of India

• Foodgrain yield in Jharkhand per hectare area is lower than its mother state Bihar.

• Among the newly formed states, Uttarakhand has the highest food grain yield followed by Chhattisgarh.

.• Jharkhand has however higher food-grain yield per hectare compared to

Maharashtra which is perceived to be an economically better performing state.

• Jharkhand is far behind the agriculturally rich states like Punjab or West Bengal. It needs to improve its agriculture productivity which is essential for the benefit of the masses.



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c. Bank Credit to Agriculture

Farmers’ access to resources is regarded as an important input for increasing productivity. Credit to the agricultural sector has always been a priority sector for banks as loans for agricultural needs are provided at cheaper rates of interest. A high growth rate of credit to the farmers can denote better prospects for agricultural output and this year the government has planned for trebling farm credit in a bid to revive growth in the agricultural sector.

Table C.6 (c) Bank credit to agriculture (Rs. ‘000) State 2007Jharkhand 123,775Bihar 664,689Chhattisgarh 188,533Maharashtra 2,439,864Orissa 381,670Uttarakhand 140,361Punjab 1,317,621West Bengal 815,019India 20,581,791

Source : Reserve Bank of India

• Bank credit to agriculture is considerably lower in Jharkhand as compared to economically developed states like Punjab, Maharashtra.

• Among the new states, bank credit to agriculture is considerably higher in Chhattisgarh followed by Uttarakhand.

• The lower amount of agricultural loan extended may affect the agricultural productivity further as there might be a consistent financial constraint on investment in agriculture.

• Improving agriculture productivity would require greater investments in farminputs, this will require greater lending activity in the future.



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7. Investment Scenario

a. Per Capita Gross State Domestic Product

GSDP is the market value of all the goods and services in the current year in the state. It is one of the widely used measures of economic growth.

Table C.7 (a) Per Capita GSDP at current prices across states

State 2000-2001 2002-2003 2003-04 2004-05 2005-06 2006-07Jharkhand 12,850 13,770 15,070 19,840 21,620 23,315 Bihar 6,850 7,610 7,690 8,320 8,840 10,228 Chhattisgarh 14,480 15,370 18,260 20,630 22,870 25,211 Uttarakhand 18,670 21,420 23,310 25,250 28,140 30,928 Maharashtra 27,700 30,120 33,430 36,940 41,510 45,987 Punjab 32,370 32,960 35,180 37,130 39,520 47,126 Tamil Nadu 23,760 25,010 27,530 31,170 34,420 37,478

Source: CSO

• The per capita GSDP of Jharkhand is lower than the other new sates.

• Jharkhand is much above its mother state Bihar in terms of per capita GDP.

• However, it is far below the developed states like Maharashtra and Punjab.

• Among the new states, Uttarakhand takes the lead followed by Chhattisgarh.



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b. State Per Capita Income and Growth in Per Capita income

Change in per capita income over time is measured by the annualized average growth rate of per capita income in a given period. It can be measured in current prices, which will express change in per capita income in nominal terms, or at constant prices, which adjusts for inflation to give a more realistic picture of the improvement in standard of living over time. The base year, presently, is 1999-2000 for constant prices. If the growth in population slows down over the years, this will result in a higher growth in income per capita and thus states which have been doing well at controlling population will perform better in raising personal income levels, other things remaining equal.

Table C.7(b): Growth (%) in Annual Per Capita Income (2001-2007)States Growth in Annual Per

Capita Income (at Current Prices)

Growth in Annual Per Capita Income in (at

Constant Prices)Jharkhand 13.4 8.9Bihar 6.7 3.1Chhattisgarh 12.6 7.9West Bengal 8.9 4.7Uttarakhand 10.4 6.8Maharashtra 10.1 5.6Tamil Nadu 8.7 5.0

Source: CSO

• Jharkhand has much higher growth rate in per capita income than its mother state, Bihar during 2001-07.

• The growth rate of Jharkhand is also higher than the other two newly formed states of Uttarakhand and Chhattisgarh.

• Although growth of per capita income in Jharkhand is higher than developed states like Maharashtra and Tamil Nadu, we can’t conclude that Jharkhand is in a better position than these states, since the developed states have already higher per capita income though the growth is less.



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c. Sectoral Shares in GSDP

Income in the state originates from various sectors – the primary sector: agriculture (including livestock products), forestry, fishing, mining activities; the secondary: manufacturing activities, construction, electricity, gas and water supply; the services sector: transportation, storage and communication, trade, hotels and restaurants, finance, banking and insurance, real estate, public administration etc. Traditionally the process of development has seen the contribution of the primary sector declining as secondary sector activities grow in importance. Recently, the surge in the services sector has added considerable value to economic activity in the country. Less developed states continue to have relatively larger shares of income still coming from the primary sector.

TableC.7(c)Sectoral shares in GSDP

StatesPrimary Sector Secondary Sector Tertiary Sector

2005-06 2006-07 2005-06 2006-07 2005-06 2006-07Jharkhand 24.7 23.6 41.1 42.2 34.3 34.2Bihar 28.1 30.4 13.9 14.6 58.0 55.0Chhattisgarh 29.9 28.7 33.9 36.0 36.3 35.3Uttarakhand 23.9 22.1 25.7 28.3 50.3 49.6Punjab 31.9 31.2 22.7 24.8 45.5 44.0West Bengal 24.6 23.6 20.8 21.6 54.6 54.8Maharashtra 13.2 12.6 27.2 27.0 59.7 60.3

Source : CSO

• The share of secondary sector in Jharkhand has increased while that of primary sector has reduced in 2006-07.

• Jharkhand’s share of the secondary sector is higher than economically developed states like Punjab and Maharashtra.

• The share of secondary sector is almost three times more than its mother state Bihar.

• Among the new states, Chhattisgarh has the highest share in primary sector followed by Jharkhand. The share of secondary sector is highest in Jharkhand followed by Chhattisgarh. As far as tertiary sector is concerned, Uttarakhand leads the other two states.



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d. Public Administration GSDP

Per capita public administration GSDP is the ratio of the GSDP contribution from public administration to the population of the state for the current year. This ratio captures essentially the per capita expenditure incurred on public administration.

Table C.7 (d) Public Administration GSDP across states

State

(Rs per person)2001-02 2002-2003 2003-04 2004-05 2005-06 2006-07

Jharkhand 866 570 997 886 1,026 1,187Bihar 539 476 561 574 597 723Chhattisgarh 898 817 676 740 791 1,002Uttarakhand 1,060 1,134 1,269 1,343 1,555 1,755Maharashtra 1,247 1,332 1,401 1,574 1,789 1,898Punjab 1,485 1,658 1,795 1,844 1,990 2,101Tamil Nadu 1,350 1,311 1,371 1,481 1,670 1,963

Source: CSO

• In Jharkhand per capita Public administration GSDP had increased over the years. It spends more than that spent by its mother state Bihar.

• Among the new states, Uttarakhand spends highest portion of its GSDP on public administration followed by Jharkhand.

• Jharkhand is far behind economically developed states like Maharashtra and Punjab.



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e. Gross Capital Formation

It is the aggregate of fixed assets purchased in the current, stocks of materials and finished goods in the current year, and work-in-progress in the current year. Gross Capital Formation measures the total of gross additions to fixed assets and changes in stocks. Estimates of capital formation cover (i) durable goods –the lifetime of which is one year or more- acquired by producers (ii) major improvements and alteration of the durable goods, (iii) new construction (iv) reclamation and improvement of land and the development and extension of timber tracts, mineral exploration, orchards, plantations etc. and (v) breeding stocks, draught animals, dairy cattle and the like.

It is therefore an indicator of the extent to which productive assets are being built up in the state by the public sector, the private corporate sector and the household sector. Supra-regional sectors such as railways, banking, communications and Central Government also contribute to the building of capacity in the state. As larger states would show higher levels of capital formation, adjusting for population normalizes the data for comparison across states.

Table C7 (e) Per Capita Gross Capital Formation, 2004-05

StateGross Capital formation per

person (in Rs)

Jharkhand 1,255

Bihar 116

Chhattisgarh 1,736

Uttarakhand 1,300

Maharashtra 1,821

Punjab 1,152

Tamil Nadu 2,281

West Bengal 493

Orissa 635

India 1,022 Source: Annual Survey of Industries

• Jharkhand has significantly higher per capita gross capital formation than that of India in general in India.

• Among the new states, Chhattisgarh has the highest gross capital formation followed by Uttarakhand.

• Jharkhand has more than ten times of gross capital formation than its mother state Bihar. The greater investment level is good progress for the future, provided it is sustained.

• Jharkhand is much better off than neighbouring states like West Bengal and Orissa.



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f. Commercial Bank Credit

It is the per capita credit granted by the Banks in the region for the purpose of business activities.

Table C.7 (f) Commercial Bank Credit across states (Rs per Person)State 2005-06 2006-07Jharkhand 3,641 4,048Bihar 1,553 1,974Chhattisgarh 4,521 5,272Uttarakhand 6,366 8,131Maharashtra 48,527 61,166Punjab 15,937 21,192Tamil Nadu 21,686 28,294Orissa 5,457 6,891West Bengal 8,434 11,264India 13,655 17,249

Source:. Reserve Bank of India

• Jharkhand has more than two times commercial bank credit that of Bihar on a per capita basis.

• Jharkhand is much behind the states of Maharashtra, Punjab and Tamil Nadu in terms of commercial bank credit.

• Among the newly formed states, Uttarakhand has the highest amount of commercial credit per person followed by Chhattisgarh.



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g. Total outstanding Bank Credit

The amount of bank credit utilized in a state measures the extent to which funds are being used for economic activity as all sectors of the economy – agriculture, industry, trade etc – take recourse to bank credit to meet their investment needs. In a poor country where resources are scarce, the banking system is a tool which is used to promote development, particularly as credit is made cheaper for priority sectors. Over time, the growth of total bank credit is a pointer to the expanding economic growth in the region as a higher rate denotes higher demand for financing economic activity.

Table: D.7(g) Total outstanding Bank Credit

States 2001 2007

CAGR(%) for Total Bank Credit Utilized

(2001-07)Jharkhand 473,335 1,231,154 17.27Chhattisgarh 374,897 1,423,788 24.91Uttarakhand 223,333 942,791 27.13Bihar 554,718 2,751,914 30.60West Bengal 2,947,559 10,333,469 23.25Orissa 626,234 3,012,290 29.93India 53,843,379 194,709,962 23.89

Source : Reserve Bank of India

• The compound annual growth rate (CAGR) for total commercial bank credit utilized in Jharkhand is comparatively lower to its neighboring states.

• The growth rate is also lower than the national average.

• The CAGR for total commercial bank credit utilized among the newly formed state is highest in case of Uttarakhand followed by Chhattisgarh.



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8. Consumer markets

a. Households in the top & bottom income levels

The households who earn less than Rs. 75,000 annually fall under the bottom income category and those households who earn more than Rs. 3,00,000 annually fall under the top income category. This indicator describes about the extent of inequality prevalent in the region.

Table C.8 (a) Percentage of households in the bottom and top income categories, 2008States Bottom Category Top CategoryJharkhand 50.6 8.8Bihar 78.6 1.6Chhattisgarh 48.5 10.5Maharashtra 25.1 20.0Orissa 60.0 5.0Punjab 21.8 17.6Tamil Nadu 33.4 10.7Uttarakhand 22.1 10.7West Bengal 43.0 11.0India 40.3 10.7

Source Market Skyline of India,2008

• Jharkhand has a very high percentage of households in the bottom category thereby depicting its poor socio economic background.

• Among the newly formed states, Uttarakhand has lowest percentage of households falling under the bottom category followed by Chhattisgarh. Uttarakhand has also high percentage of households under the top category compared to the other two states.

.• Jharkhand is far behind economically advanced states like Maharashtra and

Punjab where only 25 percent and 22 percent of the households earn less than Rs. 75,000 per annum.



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b. Per Capita Expenditure

The per capita expenditure of a region gives a clear picture as to what is the per capita amount spent by the residents of a particular region and thus gives a clear picture about the consumer patterns of the residents of a state.

Table C.8 (b) Annual Per Capita Consumption Expenditure across states (Rs’000 per person), 2008

State Rural Area Urban AreaJharkhand 16.3 38.1Bihar 6.8 12.8Chhattisgarh 18.3 44.0Maharashtra 21.3 64.1Orissa 17.1 35.1Punjab 23.5 41.1Tamil Nadu 18.4 38.4Uttarakhand 21.4 34.3West Bengal 19.5 44.7India 16.2 41.1

Source Market Skyline of India,2008

• Jharkhand’s per capita expenditure is much less compared to most other states but it performs much better than its parent state Bihar.

• Among the newly formed states, Uttarakhand and Chhattisgarh has the highest annual per capita expenditure in rural area and urban area respectively.

• The annual per capita expenditure of Jharkhand is much less than economically developed states like Maharashtra and Punjab.



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c. Households with T.V. Available

Television has become one of the most prevalent sources of entertainment and information across all geographical regions in the country and economic classes. The ownership of television requires significant expenditure- including the cost of television, access to electricity, and the cost of cable connection. The penetration of television reflects the affluence level of an area.

Table C.8 (c) Percentage of Households owning TV sets, 2001

State 2001 2006

Jharkhand 17 24

Bihar 9 15

Chhattisgarh 22 28

Orissa 16 24

West Bengal 27 32

Punjab 68 78

Uttarakhand 43 53

India 32 41 Source: Census of India,2001 and Market Skyline of India, 2006

• Only about one-fifths of the total households in Jharkhand own televisions. This is much lower than the all India average

• Though it has increased in 2006 compared to that of 2001, still the figure is much lower than the all India figure.

• With respect to Bihar, Jharkhand has higher percentage of households owning TV sets. However, when compared with the newly formed states Jharkhand trails behind with Uttarakhand having the highest percentage.

• Affluent states like Punjab outperform Jharkhand by a huge margin with more than two-fifths of the households in the state owning TV sets.

• TV penetration is almost half the all-India average. This not only reflects lower consumption of power but also the lack of entertainment and communication channels to large masses of the population. Apart from lower prices, availability of electricity is an important factor.



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d. Vehicular Population

Owning a vehicle denotes some level of affluence of the owner and the type of vehicle owned explains the degree of affluence.

Table C.8 (d) Percentage of household owning two-wheelers and four wheelers

StatesFour wheelers Two wheelers(excluding bicycles)

2001 2006 2001 2006

Jharkhand 2 2 9 14

Bihar 1 1 4 5

Chhattisgarh 1 2 11 17

Uttarakhand 3 5 12 20

Punjab 32 40 6 9

Orissa 1 1 8 13

West Bengal 2 3 5 10

India 3 4 12 18 Source: Census of India,2001 and Market Skyline 2006

• Jharkhand has much more private vehicle ownership than Bihar. The penetration is almost double in case of car owners.

• Jharkhand is showing an increasing trend in terms numbers of two wheelers and four wheelers when comparing the year 2006 with 2001.

• However the penetration is less than all India penetration. The penetration of cars in Jharkhand is just the half of all India penetration of cars

• When we compare Jharkhand with West Bengal one very interesting thing that is observed is that Jharkhand has better penetration of two wheelers than West Bengal, but the picture gets reversed in the case of penetration of four wheelers.

• The similar picture comes out in case of Jharkhand and Chhattisgarh as well but this time Chhattisgarh has better penetration of two wheelers and Jharkhand has better penetration of cars.



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9. Fiscal Status

a. Per Capita Revenue Receipts

Revenue receipts of a state denotes that it does not incur any obligation on the part of the government to return the amount at a future date. Revenue Receipts of states include the following: Tax revenue, Non-tax revenue, and Grants from center and transfer from funds.

Table C.9 (a) Revenue Receipts (Rs. per person)

State\Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 2,264 2,700 2,666 2,572 2,838 3,391Bihar 1,231 1,369 1,573 1,919 2,102 2,470Chhattisgarh 2,100 2,555 2,762 3,396 3,527 5,155Orissa 1,915 2,275 2,524 3,044 3,329 4,539Uttarakhand 3,219 3,705 4,054 5,469 6,480 7,083West Bengal 1,813 1,790 2,021 2,446 2,528 3,117India 2,486 2,685 2,986 3,570 3,927 4,708

Source: RBI

• Revenue receipts per person have shown an increasing trend in Jharkhand over the years. A prominent reason may be the presence of Jamshedpur in Jharkhand.

• Jharkhand has higher revenue receipts than its mother state Bihar.

• Among the newly formed state, Uttarakhand has the highest amount revenue receipts per person followed by Chhattisgarh.



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b. Per Capita Revenue Expenditure

Revenue expenditure of states is incurred for carrying out the day to day expenses in a specific accounting period. It includes non-developmental expenditure, development expenditure and transfer to funds. The revenue expenditure per person shows how much amount is spent per person in an accounting period. It basically includes the expenditure on administration, wages, maintenance and consumables.

Table C.9 (b) Revenue Expenditure(Rs. per person)State\Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 2,226 2,821 2,615 2,963 3,225 3,755Bihar 1,513 1,660 1,702 1,958 2,087 2,552Chhattisgarh 2,359 2,608 3,059 3,581 3,639 4,430Orissa 2,684 2,700 2,903 3,627 3,615 4,347Uttarakhand 3,337 4,231 4,911 6,637 6,948 6,713West Bengal 2,918 2,854 3,134 3,521 3,689 4,088India 3,061 3,213 3,563 3,982 4,160 4,757

Source: RBI

• Jharkhand has much higher per capita revenue expenditure than Bihar, but the increase for both the states shows a similar rate.

• Among the new states, Uttarakhand has the highest per capita revenue expenditure followed by Chhattisgarh.

• A lower revenue expenditure of Jharkhand shows that its current expenditure is under control .



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c. Per Capita Capital ExpenditureCapital expenditure is the expenditure which is incurred on capital goods. In other words, it means expenditure incurred for the acquisition of any long term asset, incurred with a long term perspective.

Table C.9 (c) Per Capita Capital Expenditure (Rs)State\Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 718 755 1,745 2,269 2,176 2,550Bihar 278 441 1,338 1,452 1,471 1,589Chhattisgarh 341 609 11,325 9,760 9,620 9,470Orissa 594 877 5,504 4,450 3,353 3,658Uttarakhand 548 1,350 29,301 9,373 9,860 13,532West Bengal 584 561 11,919 10,209 9,607 16,467India 607 814 9,000 7,442 6,389 12,538

Source RBI

• If we look at the figures we find an increasing trend in terms of capital expenditure of Jharkhand. And the trend holds equally good for most of the states.

• Jharkhand has a higher per capita capital expenditure than its mother state Bihar. This implies that a considerable portion is spent on building assets.

• Among the newly formed states, Uttarakhand has the highest per capita capital expenditure compared to the other two.

• Incurring higher capital expenditure is a positive sign for the growth of a state provided it is divided equally among all the sectors.



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d. Expenditure on Social Services

The level of Social Sector expenditure has crucial implications for the long-term prospects of the economy. This is a crucial component of developmental expenditure as it encompasses social services including education and health, rural development, food storage and warehousing.

Table C.9 (d.i) Percentage of Revenue Expenditure on Social ServicesState 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 40.88 38.90 33.91 35.74 39.83 41.30Bihar 35.25 33.54 35.60 37.12 35.68 37.03Chhattisgarh 38.95 37.73 34.37 36.01 37.84 40.92Orissa 33.00 34.54 34.15 31.80 34.15 33.95Uttarakhand 39.45 39.96 38.84 37.99 38.75 37.27West Bengal 35.49 32.81 31.20 31.81 32.15 34.32India 34.19 33.25 31.78 33.03 33.23 35.00

Source: RBI

Table D.9 (d.ii) Percentage of Capital Expenditure on Social ServicesState 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Jharkhand 12.7 18.4 8.3 7.7 9.1 12.0Bihar 5.7 5.7 2.4 1.6 1.6 5.7Chhattisgarh 15.0 10.6 0.8 1.6 2.1 2.8Orissa 6.7 5.0 0.6 0.9 1.3 2.4Uttarakhand 5.8 5.6 0.5 2.7 2.6 2.8West Bengal 3.2 2.7 0.1 0.2 0.6 0.4India 9.5 8.9 1.0 1.6 2.4 1.4

Source: RBI

• During 2006-07, an increasing share of social services in the revenue expenditure of Jharkhand is noticed compared to 2005-06. The need is to reduce its revenue expenditure but it should not be at the cost of the social services.

. • Jharkhand spends a higher proportion of its revenue expenditure on social

services than its parent state Bihar.

• Among the newly formed states, Jharkhand spends a larger portion of its revenue expenditure on social services than Chhattisgarh and Uttarakhand. Again Jharkhand spends larger portion of its capital expenditure on social services than the other two.

• Jharkhand also spends more revenue as well as capital expenditure on social compared to its neighbouring states like West Bengal and Orissa.



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e. Per Capita Gross Fiscal DeficitGross Fiscal Deficit (GFD) is the difference between the total revenue in the current year and total expenditure by the government. State governments’ GFD can be broadly broken up into the following components: revenue deficit, capital outlay and net lending.

Table C.9 (e) Gross Fiscal Deficit (Rs per person)States 2005-06 2006-07Jharkhand 1,701 1,757Bihar 566 749Chhattisgarh 589 617Maharashtra 1,630 1,507Orissa 371 237Punjab 1,438 2,126Uttarakhand 2,629 1,944West Bengal 1,330 1,365India 1,041 1,009

Source:RBI

• The deficit per person is high currently in Jharkhand compared to most states. However, for it to remain at low levels, sustained efforts should be pursued against expanding state government employment, wasteful expenditures, and ensuring timely completion of investment projects.

• The GFD of Jharkhand is also higher than its neighbouring states of West Bengal and Orissa.

• Among the newly formed states, Uttarakhand has the highest GFD per person followed by Jharkhand.



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Section IV : The Districts of Jharkhand

During its formation Jharkhand had 18 districts. Gradually 4 new districts were added after its formation - Sareikela and Kharsawan, Jamtara, Latehar and Simdega. Further two major subdivisions namely Khunti and Ramgarh of Ranchi and Hazaribagh district respectively have been created as new districts in October 2007. At present the state is divided in 24 districts. Jharkhand is endowed with vast natural resources specially the vast variety of minerals ranging from iron ore, coal, copper ore, mica, bauxite, graphite, lime stone, uranium and other minerals. It is the leading producer of mineral wealth in the country.

Ranchi is the largest district of the state and is rich in coal, limestone and asbestos, while Bokaro is famous for having the largest steel plant of the country owned by SAIL. Paschim Singhbhum is blessed with mineral wealth, especially iron ore and manganese, while Purbi Singhbhum is known for Jamshedpur, the first steel city of India- the Tata Steel plant.

In this section, we compare the relative performance of the districts based on various socio-economic parameters. However the district level comparison has been done between 22 old districts only since the data for the newly formed districts are yet not available. The parameters we have explored include safe drinking water, birth rate, sex ratio, literacy rate and head count ratio. The results show that most districts of Jharkhand have significant improvements with respect to socio-economic factors before they can best utilize the potential of their human resources. Another fact that comes to light is the wide disparities amongst districts. Dhanbad, Ranchi and Purbi Singhbhum are found to be performing well under most heads, whereas Godda, Gumla, Garhwa, Deogarh and Pakaur are among the laggards.



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1. Health and Civic Attainment

Coverage of health and basic facilities such as better sanitation facilities is one of the core responsibilities of any state. The following section discusses Jharkhand’s performance in this area.

a. Access to proper sanitation facility

Proper Sanitation facility has been considered as one of the basic necessities for good health. Ensuring better sanitation facility is not only the implied but also the ethical duty of the state. This variable observes the percentage of households who have water closet/latrines.

Table D.1 (a) Percentage of households with Water Closet/Latrine,2001

District

Percentage of households with proper sanitation

facility (%)

Bokaro 46.2

Chatra 26.5

Deoghar 58.1

Dhanbad 36.2

Dumka 36.8

Garhwa 39.3

Giridih 36.5

Godda 37.3

Gumla 21.3

Hazaribagh 49.5

Koderma 33.8

Lohardaga 40.5

Pakaur 37.6

Palamu 41.0

Paschim Singhbhum 26.6

Purbi Singhbhum 45.3

Ranchi 42.7

Sahibganj 28.1Source: Census 2001

• As per Census 2001, Deoghar has the highest percentage of households with water closet/latrines. Other better performing districts include Hazaribagh, Bokaro and Purbi Singhbhum.

• Districts like Gumla, Paschhim Singhbhum and Chatra have only around 27 percent of the households having water closet/latrines.



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b. Immunization of children

This variable looks at percentage of immunization of children between 12 to 35 months. Complete immunization here implies vaccination against diseases like tuberculosis, diphtheria, whooping cough (pertussis), tetanus, polio and measles. This indicator reflects the extent of availability of better health facilities and awareness about children’s health.

Table D.1 (b) Percentage of Children 12-35 months fully immunized (2008-09)

DistrictChildren 12-35 months fully

immunizedBokaro 51.9Chatra 23.2Deoghar 8.4Dhanbad 54.9Dumka 15.5Garhwa 37.2Giridih 43.2Godda 6.6Gumla 25.8Hazaribag 72.8Kodarma 38.1Lohardaga 61.1Pakaur 46.7Palamu 40.0Pashchimi Singhbhum 13.9Purbi Singhbhum 27.3Ranchi 47.1Sahibganj 31.9

Source: Indian Development Landscape, Indicus Analytics, 2008

• Among the available data set, districts like Hazaribagh, Lohardega and Dhanbad have comparatively better health conditions compared to others with more than 50 percent of the children being fully immunized.

• On the other hand, the districts of Deoghar, Godda and Dumka have performed poorly with less than 20 percent of the children being fully immunised.



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2. Education

a. Literacy Rate

Literacy Rate is defined as a percentage of literate population aged seven years and above. As per the census of India, literates are those who can read and write their name and can form simple sentences.

Table D.2 (a) Literacy rate across different Districts in Jharkhand, 2004-05

District Literacy rate District Literacy rate

Bokaro 61.67 Hazaribagh 68.35

Chatra 55.87 Kodarma 60.54

Deoghar 54.53 Lohardaga 63.96

Dhanbad 71.57 Pakaur 48.35

Dumka 45.04 Palamau 58.95

Garhwa 56.56 Paschim Singhbhum 46.45

Giridih 50.9 Purbi Singhbhum 70.87

Godda 58.38 Ranchi 60.94

Gumla 56.71 Sahibganj 48.36

Source: NSSO 61st (Employment & Unemployment) Round, 2004-05

• Dhanbad has the highest literacy rate among the districts of Jharkhand followed by Purbi Singhbhum and Hazaribagh. Ranchi, the capital of Jharkhand has also shown better performance in terms of percentage of literates.

• Lowest literacy rates in Jharkhand are prevalent in the districts of Pakaur, Dumka, Paschhim Singhbhum.



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b. Pupil Teacher Ratio

The pupil teacher ratio is the number of students per teacher. It takes into account all the teachers teaching the students enrolled in classes I to VIII. This ratio shows the average number of students every teacher is teaching. It reflects the degree up to that a teacher can devote personalized attention to his pupils. The lower the ratio, the better it is for developing the educational standard of a particular area since lesser number of students will get attention by a teacher. Adequate trained teachers are essential for the educational upliftment.

Table D.2 (b) Pupil Teacher Ratio across different Districts in Jharkhand (2008-09)District Ratio District RatioBokaro 119 Kodarma 112Chatra 115 Lohardaga 107Deoghar 88 Pakaur 81Dhanbad 74 Palamu 105Dumka 89 Pashchimi Singhbhum 28Garhwa 105 Purbi Singhbhum 75Giridih 125 Ranchi 81Godda 67 Sahibganj 67Gumla 64 Hazaribag 125


• Pupil Teacher Ratio is lowest in the district of Paschhim Singhbhum, which gives an indication of the better education conditions prevailing in the district. Other districts performing better are Godda, Gumla and Sahibganj.

• Districts like Giridih, Chatra, Bokaro and Hazaribagh have a very high Pupil Teacher Ratio thereby displaying poor education conditions in these districts.



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3. Demography

a. Crude Birth Rate

Crude birth rate measures the number of live births during a particular year per thousand mid year population. It is one of the basic indicators of population growth. India’s crude birth rate has been falling and stands at about 25 per thousand population.

Table D.3 (a) Crude Birth Rate (per thousand of population), 2008District Birth rate District Birth RateBokaro 24.4 Hazaribag 28.4Chatra 32.3 Kodarma 31.4Deoghar 31.5 Lohardaga 31.2Dhanbad 23.1 Pakaur 33.2Dumka 27.1 Palamu 32.9Garhwa 35.7 Pashchimi Singhbhum 26.8Giridih 33.9 Purbi Singhbhum 20.9Godda 29.8 Ranchi 25.0Gumla 29.1 Sahibganj 33.6


• Generally the crude birth rate in Jharkhand is not very low. Among the districts Purbi Singhbhum has the lowest crude birth rate of 20.9 per thousand population, while Garhwa has a very high crude birth rate of 35.7 per thousand population.



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b. 0-6 year Age Group Sex Ratio

Child sex ratio measures the number of female per 1000 male children in 0-6 age group. This ratio is indicative of discrimination against the girl child starting from birth to her overall upbringing. It specifically gets reflected in her access to food, nutrition, health care, and medical support services. The child sex ratio of Jharkhand as a whole is 965 females per 1000 males.

Table D.3 (b) 0-6 years Age sex ratio

District Sex ratioDistrict Sex ratioBokaro 946 Hazaribagh 965Chatra 984 Koderma 972Deoghar 973 Lohardaga 942Dhanbad 953 Pakaur 968Dumka 976 Palamu 974

Garhwa 960 Paschim Singhbhum 973

Giridih 961 Purbi Singhbhum 941Godda 996 Ranchi 960Gumla 977 Sahibganj 972

Source: Census 2001

• Among the districts of Jharkhand Godda has the highest 0 to 6 years sex ratio with 995 of girls per 1000 boys. Some of the other districts that perform better than the state average of 965 girls per 1000 boys are Chatra, Dumka, Gumla, Hazaribagh, Kodarma, Pakaur, Palamu, Paschim Singhbhum, Sahibganj and Deoghar

. • Purbi Singbhum has the lowest child sex ratio at 940. As the child sex ratio is

directly associated with mortality, it is indicative of discrimination against the girl child and the prevalence of female infanticide. Even better developed districts like Ranchi, Bokaro, and Dhanbad have very poor ratios, which is a cause for concern.



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4. Poverty

a. Head Count RatioThe Head Count Ratio is a measure of the percentage of population living below the poverty line and is defined as :

HCR = q/n * 100Where q= the number of persons below a predefined poverty norm( also called poverty line)

n= total population

This ratio takes into account percentage of all the people who are below the poverty line. This is the standard measure of poverty.

Table D.4 (a) Head Count Ratio across different Districts in Jharkhand (2004-05)Districts Ratio Districts Ratio Bokaro 37.4 Hazaribag 41.7Chatra 18.7 Kodarma 24.8Deoghar 24.7 Lohardaga 98.6Dhanbad 37.7 Pakaur 62.6Dumka 45.2 Palamu 53.4Garhwa 32.2 Pashchimi Singhbhum 50.7Giridih 29.7 Purbi Singhbhum 36.4Godda 48.2 Ranchi 22.1Gumla 71.3 Sahibganj 74.9

Source: Bhandari and Dubey 2004-05

• The Head Count Ratio is very high in districts of Lohardaga, Sahibganj and Gumla where it is more than 70 percent, showing the poor conditions of these districts. With the available resources and potentialities, these district deserve immediate attention for resources planning which could magnify these districts in every field of development.

• The lowest Head Count Ratio is in the districts of Ranchi, Kodarma and Chatra where it is below 25 percent.



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b. Households not getting Square Meals

The number of households where every member has had at least two square meals a day is an indicator of food sufficiency and a high proportion of food sufficient households reflects less poverty.

Table D.4 (b) Percentage of Households not getting two square meals a day for all membersDistrict Households District Households

Bokaro 0 Hazaribagh 27.11

Chatra 0 Kodarma 0.53

Deoghar 0 Lohardaga 0

Dhanbad 0 Pakaur 0

Dumka 0 Palamu 23.45

Garhwa 0 Pashchimi Singhbhum 7.28

Giridih 23.01 Purbi Singhbhum 5.62

Godda 3.91 Ranchi 0

Gumla 9.09 Sahibganj 0Source: NSSO 61st (Unemployment & Employment ) Round, 2004-05

• Districts like Giridih, Palamu and Hazaribagh have the highest number of households that do not get two square meals a day for all their members. There is an urgent need for combating drought, hunger and mass migration, increasing the productivity of agriculture, generating farm and forest-based livelihoods and promoting animal husbandry.

•• Districts like Bokaro, Chatra, Deoghar are better performers with negligible

households without food sufficiency.



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5. Economy

a. Growth in Employment

Growth in employment reflects the opportunities being created with respect to providing the labour force with gainful employment. A faster growth rate of the labour force than that of employment leads to greater unemployment. This indicator calculates the employment level and its increase in the region in the given tenure.

Table D.5 (a) Growth in Employment from 1991 to 2001

Source: Census of India

• Growth in employment is maximum in the case of districts of Sahibganj, Chatra and Palamu. But in cities like Bokaro and Dumka growth in employment is as low as 1.2 percent and 1.44 percent respectively.

• In the capital city Ranchi, employment growth is one of the lowest in the state, unusual for the capital of any state.

• If we look at urban growth of employment, we can see that Garhwa is the district which has shown maximum growth in urban employment followed by Lohardaga and Giridih is the district showing the least growth in urban employment.


Districts

Average annual Growth in

Employment

Average annual Growth in Rural

Employment

Average annual Growth in Urban Employment

1991-2001 1991-2001 1991-2001Bokaro 1.21 1.11 1.38Chatra 3.38 3.39 3.08Deoghar 2.89 2.89 2.86Dhanbad 2.09 2.22 1.94Dumka 1.43 1.38 2.55Garhwa 3.35 3.32 4.64Giridih 2.58 2.65 1.26Godda 2.15 2.12 3.78Gumla 2.04 1.98 4.24Hazaribagh 2.81 2.99 1.96Kodarma 2.77 2.67 3.45Lohardaga 2.62 2.48 4.56Pakaur 2.19 2.12 4.37Palamu 3.26 3.31 2.06Pashchim Singhbhum 1.48 1.37 2.53Purbi Singhbhum 2.28 1.75 3.05Ranchi 2.16 1.85 3.20Sahibganj 3.52 3.49 4.03

106


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• Similarly the districts showing the maximum and minimum growth in rural employment are Sahibganj and Bokaro respectively.

b. Per capita Rural & Urban Income and Market Size

The market size of a particular area is an indirect manner of moving towards the industrial development. A larger market size gives positive incentives to the producers and in turn contributes to the overall growth of that area. Similarly, the per capita income of a particular area indicates the extent of affluence of a particular area.

TableD.5(b)Per Capita Rural and Urban Income and Market Size,2008

Districts Market size (Rs Crore)

Per capita Income in Urban Areas (Rs)

Per capita Income in

Rural Areas (Rs.)

Bokaro 5,208 64,511 14,478Chatra 1,149 23,646 14,249Deoghar 3,397 69,138 23,507Dhanbad 6,199 36,855 20,601Dumka 2,770 50,335 13,891Garhwa 1,341 32,084 11,796Giridih 3,787 72,058 16,928Godda 1,650 23,469 15,844Gumla 2,160 35,518 15,622Hazaribag 5,848 52,181 20,210Kodarma 1,141 42,281 19,760Lohardaga 706 32,777 17,899Pakaur 2,475 26,112 37,497Palamu 3,304 45,306 13,957Pashchimi Singhbhum 4,890 49,195 19,215Purbi Singhbhum 5,310 64,260 10,789Ranchi 9,213 60,187 19,841Sahibganj 3,230 24,270 38,135

Source: :Market Skyline of India,2008

• Among the districts of Jharkhand, Giridih has the highest per capita income in urban areas followed by Deoghar. On the other hand, Godda has the lowest per capita income in urban areas.

• In rural area, the highest and lowest per capita income is seen in the districts of Sahibganj and Purbi Singhbhum respectively.

• Ranchi has the largest market size among all the districts of Jharkhand followed by Dhanbad.



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c. Percentage of Households with Two wheelers and Four Wheelers

Table D.5(c): Percentage of households owning Two wheelers and Four wheelers (2006)

Districts 2 wheeler 4 wheeler

Bokaro 33.6 4.4

Chatra 3.5 0.9

Deoghar 7.7 1.1

Dhanbad 23 3.5

Dumka 6.6 0.8

Garhwa 3.7 0.9

Giridih 7.1 1.1

Godda 5.6 0.8

Gumla 6.3 0.8

Hazaribagh 14.9 2.3

Kodarma 8.5 1.8

Lohardaga 8.6 0.9

Pakaur 3.1 0.5

Palamu 4.8 1.1

Pashchim Singhbhum 11.1 1.3

Purbi Singhbhum 38.7 5.8

Ranchi 19.1 3.7

Sahibganj 2.6 0.4Source : Market Skyline of India,2006

• Purbi Singhbhum and Bokaro have higher percentage of households owning two wheelers and four wheelers compared to other districts where the figure is very low.

• Pakaur and Chatra are among the districts who have fared badly in these indicators.



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d. Mobile Connections

Mobile phone technology has rapidly become a necessity in recent years especially in urban areas. Greater use of mobile telephone is an indicator of a better connectivity which in turn indicates technologically advancing economy and its growing acceptance among the general population. Further it also indicates how well a state is adapting to advancing technology and demand for the same especially since the telecom sector has now been privatized. Mobile density i.e. mobiles per 1000 persons has been used in the present discussion and it includes all the connections with all the service providers operating in the state in the respective years.

Table D.5 (d) Number of Mobile Connections per 1000 persons, 2005

Districts Connections per 1000 persons

Bokaro 8

Chatra 4

Deoghar 8

Dhanbad 11

Dumka 5

Garhwa 4

Giridih 3

Godda 4

Gumla 2

Hazaribagh 8

Jamtara 2

Koderma 7

Latehar 2

Lohardaga 4

Pakaur 4

Palamu 5

Paschim Singhbhum 5

Purbi Singhbhum 19

Ranchi 17

Sahibganj 4

Sareikela and Kharsawan 1

Simdega 2Source: Lok Sabha Unstarred question no. 5931 dated 04/05/2005

• Purbi Singhbhum has the maximum penetration of mobile connections. This may be because of presence of Jamshedpur in the district. As a industrial area the purchasing power of the population here is better.

• Except Purbi Singhbhum only Ranchi and Dhanbad are the other districts

which have more than 10 per 1000 penetration of mobiles among their population.



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6. Overall Performance of the districts

District wise comparison is a useful exercise as it highlights the priority issues that need to be taken up in each district. The performance of the districts of Jharkhand have been measured on different parameters of economy and aggregated to denote the overall role of the district in the economic upliftment of the state. Though Jharkhand has 24 districts, two of them, namely Khunti and Ramgarh have been carved out of Ranchi and Hazaribagh districts respectively in October 2007. As data is not yet available for these new districts separately, the following section ranks the districts of Jharkhand according to the 22 district divisions.

The parameters used for measuring the overall standing of the district in the state are

1. Education• Literacy Rate• Female Literacy Rate• Pupil Teacher ratio

2. Health and Civic Attainment• Safe Drinking Water• Women having trained assistance during delivery• Percentage of households with Water Closet/Latrine• Percentage of women receiving full Ante natal checkup – At least 3 visits for ANC

+ at least one TT injection + 100 or more IFA tablets/syrup3. Demography

• Crude Birth rate4. Poverty

• Head Count Ratio• Households not getting square meals

5. Economy• Growth in Employment• Number of Mobile Connections• Percentage of households with 4 wheelers• Percentage of households with TV

Motivation

Development is a sum of progress made not just in economy, but also provision of basic services such as health, education, water and sanitation among various others. For the assessment performance of the districts in education, three parameters have been used,



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namely, literacy rate, female to male literacy rate and teacher pupil ratio. Literacy rate which reflects the overall education levels achieved in the region. Female to male literacy rate depicts the gap in educational attainments between males and females. The gender gap in education reflects that even today education for girls isn’t considered as important as that for boys. The third variable taken is teacher pupil ratio which denotes the level of personalized attention every student is getting.

For measuring the performance of the district in health and civic attainment four variables have been taken namely, coverage of safe drinking water, the percentage of women having trained assistance during delivery, percentage of households with Water Closet/Latrine and Percentage of women receiving full Ante natal checkup – At least 3 visits for ANC + at least one TT injection + 100 or more IFA tablets/syrup.

The Crude Birth Rate reports the rate of increase in population. A high population growth rate is not good for an already populous country like India since the resources are limited and income levels are relatively low.

Underdevelopment in India has been characterized by mass poverty, as many households still cannot afford two square meals for all its members. Further a significant proportion of the population lives below the poverty line. Two widely used variables have been taken to asses performance in controlling poverty. The variables are head count ratio and percentage of households not getting square meals.

The last parameter is the status of economy which includes variables like the growth in employment which reflects how fast the new avenues of jobs are developing in the region, number of mobile connections which depicts the dynamism of technological advancement made in the economy, percentage of households owning assets such as four wheelers and TV.

MethodologyEach of the variables have been appropriately normalized so that districts that differ in absolute size are rendered comparable. Upon adequate normalizing we obtain ratios, which are then used for calculating the indices. Further, all the ratios that are used for generating the indices are such that the higher the value of the ratio the better the level of economic freedom that they signify. In case of certain ratios this has been achieved by taking the inverse or in case of percentages by subtracting from 100.

The economic index has been constructed in two steps.

Step 1: An index is obtained for each of the 10 ratios discussed in the data section. The following formula was used to obtain each of the 10 indices:

Iij= Sij – Min(S1j, S2j,…,S10j) Max(S1j, S2j,…,S10j)-Min(S1j, S2j,…,S10j)

Where Sij represents the value of ratio j for state i. The index is constructed for 22 districts of Jharkhand and therefore i ranges from 1 to 22. There are 10 ratios for which the indices have been constructed, j=1,2,…,10. Iij is the index value that is derived for district i over ratio j.



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The index value lies between 0 to 1 within each ratio. The district corresponding to index value 0 can be interpreted as having the lowest level of economic freedom and the district with index value of 1 can be said to have the highest level of economic freedom relative to other districts.

Step 2: Once all the indices for the 10 ratios were obtained, a composite index was obtained on the basis of all these indices. An additive composite index has been constructed for every parameter. This has been constructed by using the formula of arithmetic mean.

Ai=Σ Iij j 55

Then the districts were ranked for different parameters. After this the average of all the parameters was taken and the overall aggregate was calculated. The districts were then ranked on the basis of this overall aggregate.

The overall standings of the various districts of Jharkhand on the basis of these parameters are :

a. Overall performance

Table D.6 (a) Overall Ranks of the Districts in Jharkhand

Districts 2008 2007Purbi Singhbhum 1 1Dhanbad 2 2Ranchi 3 3Bokaro 4 6Koderma 5 5Hazaribagh 6 4Latehar 7 13Deoghar 8 8Chatra 9 7Lohardaga 10 10Garhwa 11 21Jamtara 12 19Sahibganj 13 15Paschim Singhbhum 14 11Sareikela and Kharsawan 15 9Godda 16 17Palamu 17 14Simdega 18 12Dumka 19 20Gumla 20 18Pakur 21 16Giridih 22 22



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A comparison of the overall performance of the districts in the last 2 years leads us to the conclusion that Purbi Singhbhum, Dhanbad and Ranchi maintain their ranks in top three. Some have shown improvement in their rankings like Latehar, Garhwa and Jamtara while some others have shown a decline in the rankings like Pakaur and Simdega. Garhwa has shown remarkable performance in effectively meeting its health, education and poverty challenges resulting in significant jump in its rank from the previous year.

Table D.6 (b) Standings on the basis of performance in different aspects

Overall Rank

Rating (Index) District

Education

Health and Civic

Attainment Poverty Demography Economy

Rating (Index) Rank

Rating (Index) Rank

Rating (Index) Rank

Rating (Index) Rank

Rating (Index) Rank

1 0.84 Purbi Singhbhum 0.68 2 0.97 1 0.79 10 1.00 1 0.83 12 0.72 Dhanbad 0.69 1 0.74 2 0.88 7 0.77 2 0.62 23 0.59 Ranchi 0.46 6 0.49 6 0.98 2 0.61 4 0.60 34 0.58 Bokaro 0.40 9 0.66 3 0.88 6 0.65 3 0.45 65 0.50 Koderma 0.38 12 0.54 4 0.95 4 0.20 14 0.38 76 0.42 Hazaribagh 0.56 3 0.31 11 0.36 20 0.36 9 0.47 47 0.42 Latehar 0.52 4 0.50 5 0.35 21 0.12 17 0.46 58 0.40 Deoghar 0.27 16 0.31 13 0.96 3 0.19 15 0.36 89 0.38 Chatra 0.29 15 0.25 16 1.00 1 0.15 16 0.31 1110 0.37 Lohardaga 0.48 5 0.37 10 0.50 19 0.21 13 0.25 1311 0.36 Garhwa 0.33 14 0.26 15 0.92 5 0.00 22 0.30 1212 0.36 Jamtara 0.05 22 0.42 8 0.83 8 0.45 7 0.08 2113 0.35 Sahibganj 0.18 17 0.42 9 0.65 15 0.09 20 0.32 1014 0.35 Paschim Singhbhum 0.39 11 0.30 14 0.67 13 0.47 5 0.16 1815 0.33 Sareikela and Kharsawan 0.09 20 0.44 7 0.67 13 0.47 5 0.06 2216 0.32 Godda 0.41 8 0.20 18 0.74 11 0.28 12 0.18 1617 0.32 Palamu 0.36 13 0.31 12 0.35 21 0.12 17 0.32 918 0.32 Simdega 0.46 7 0.10 22 0.50 17 0.32 10 0.21 1519 0.28 Dumka 0.07 21 0.25 17 0.83 8 0.45 7 0.15 1920 0.25 Gumla 0.40 10 0.14 21 0.50 17 0.32 10 0.12 2021 0.25 Pakur 0.16 19 0.20 19 0.73 12 0.11 19 0.17 1722 0.24 Giridih 0.17 18 0.19 20 0.51 16 0.08 21 0.23 14

• Purbi Singhbhum topped the list (which is most likely because of the presence of the industrial area like Jamshedpur), followed by Dhanbad. The capital city Ranchi acquired the third position.

• Due to the unavailability of the data for the newly formed districts in Jharkhand such as Jamtara, Simdega, Saraikela and Kharsawan, Latehar, their figures have been estimated on the basis of the figures of their parent districts.



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• Giridih secures the bottom position by performing badly in almost all the indicators.



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Section V Jharkhand’s best and worst constituencies

Parliamentary constituencies are territorial divisions identified for the purpose of electing representatives from different states of India. The number of seats allotted to a state is based on the population of the respective states. This section will examine the performance of parliamentary constituencies of Jharkhand on two parameters: socio economic performance and infrastructure provision at the state and all India level. This exercise aims to serve as a quantifiable reminder to the MPs about the shortcomings in their constituencies.

The rankings have been derived using district-level data from ‘Indicus District Development Database’. The variables selected for the ranking exercise are mentioned below:

a. Socio-economic category

1. Female literacy2. Primary to upper primary school transition



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3. Poverty ratio6, 4. Marginal workers5. Immunization of children6. Weight for age

b. Physical infrastructure category

1. Households electrified2. Households with telephones3. Areas connected by pucca roads

The next step is to map districts with parliamentary constituencies. This requires the percentage of a constituency's population in a district. If this is known, weighted averages of district values can be used to obtain estimates for constituencies. The population data for the individual constituencies was available from Delimitation Commission which itself used the Census data, 2001. With equal weights, one can now construct a socio-economic index and a physical infrastructure index at the constituency level with the respective district level socio economic and infrastructural variables adjusted accordingly. An important point to note here is that the lists of constituencies are the new constituencies as specified by the Delimitation Commission in the year 2008 and may or may not coincide with prevailing constituencies.

6 derived from work done by Amaresh Dubey



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Table 1

Parliamentary* Constituency

Index in the state Rank in the state

Socio economy Infrastructure Socio economy InfrastructureDhanbad 0.528 0.629 1 1Bokaro 0.46 0.457 2 2Jamsedpur 0.449 0.443 3 3

Khunti (ST) 0.445 0.332 4 6Ranchi 0.44 0.367 5 5

Hazaribagh 0.381 0.378 6 4

Singhbhum (ST) 0.321 0.26 7 7

Lohardaga (ST) 0.279 0.183 8 14Chatra(SC) 0.266 0.222 9 11Deoghar 0.262 0.258 10 8Giridih 0.26 0.237 11 10

Palamu (SC) 0.238 0.204 12 13

Dumka (ST) 0.208 0.222 13 12Godda 0.205 0.243 14 9

Note: * The constituencies are the new constituencies as declared by the Delimitation Commission

Table 1 shows the list constituencies of Jharkhand with their corresponding index values and respective positions in the state. The index values are given separately for both socio economy and infrastructure. As evident from the table, the constituency of Dhanbad has occupied the top position in the state followed by Bokaro and Jamshedpur in both the categories. The worst performers in the socio economy category are Godda and Dumka and that in the infrastructure category are Lohardaga and Palamu. The top performing constituencies are the mineral rich places which give them an edge over others. For instance, coal in Dhanbad, steel in Bokaro etc. On the contrary, the worst performing constituencies are basically clustered around the tribal regions of Lohardaga, Palamu which are generally the deprived areas.



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Table 2

Parliamentary Constituency*

All India Rank

Socio Economy Infrastructure Member of Parliament Political PartyDhanbad 279 209 Chandra Sekher Dubey Indian National CongressBokaro 345 338 NA NAJamsedpur 355 351 Sunil Kumar Mahato Jharkhand Murti MorchaKhunti (ST) 356 423 Sushila Keketta Indian National CongressRanchi 360 403 Subodh Kant Sahay Indian National CongressHazaribagh 443 393 Bhubneshwar Prasad Mehta Communist Party of IndiaSinghbhum (ST) 501 461 Bagun Sumbarai Indian National CongressLohardaga (ST) 527 509 Rameshwar Oraon Indian National CongressChatra(SC) 530 480 Dhirendra Agarwall Rashtriya Janta DalDeoghar 532 463 NA NA Giridih 533 472 Tek Lal Mahato Jharkhand Murti MorchaPalamu (SC) 537 497 Ghuran Ram Rashtriya Janta DalDumka (ST) 540 483 Shibu Soren Jharkhand Murti MorchaGodda 541 470 Furkan Ansari Indian National Congress *: The constituencies are the new constituencies identified by the Delimitation Commission

Table 2 gives the list of parliamentary constituencies with their respective members of parliament. The table also provides the position of the constituencies at the all India level. The all India ranks give the position of the constituencies of Jharkhand in the country as a whole. The all India rank shows that even the top performing constituencies of the state have occupied 279th rank among all the 543 constituencies in the country. The ranking exercise reinforces the popular perception of poor governance in the state, thereby depicting the challenges ahead for public representatives. Unless the public representatives are themselves aware of the necessary actions to be taken to develop their particular areas and learn from their successful counterparts, growing at an accelerated pace and providing basic services to the people would remain a dream. This exercise should go a long way in arming the voters with necessary information to push for appropriate manifestos and change in the upcoming elections next year.



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Section VI Potential Cities – An evaluation

‘Jharkhand’ meaning ‘forest land’, is known for its immense potential in terms of various natural resources. The abundance of minerals and forests in the state however has not helped the state in getting an edge over others, rather it is considered to be a laggard on various fronts. Poor infrastructure facilities, lack of quality education and health facilities etc characterize most of the cities in the state attracting very low investment. However, some cities in the state have immense potential where much of the industrial activities are taking place. This section focuses on those cities and attempts to examine their potential.

The quartet of Ranchi, Dhanbad, Jamshedpur and Bokaro cities hold tremendous potential in achieving high economic growth in the state. These are the cities where much of the state’s industrial activity is carried out. Brief industrial profiles of these cities have been given below:

Bokaro City is an industrial city housing several medium and small industries. It is also home to one of the largest steel plants in India. The Damodar Valley Corporation (DVC) has two big power plants in the city; Coal India Ltd. has two subsidiaries; Jharkhand State Electricity Board has a power captive plant. The steel township of the state is named as the Bokaro Steel City after the Bokaro Steel Plant was established in 1964. It is the district headquarters of the Bokaro district as well as Bokaro divisional range (Bokaro, Dhanbad and Giridih).

Ranchi, the capital city of Jharkhand having good reserves of forest and minerals offers an excellent place to set up medium and large-scale industries. Some of the well-known industries in the state include: Chotanagpur Rope Works Private - Namkum; Heavy Engineering Corporation – Dhurwa; Bharat Mineral and Ceramic Ind. – Mahilong etc. An autonomous body “Ranchi Industrial Area Development Authority” is responsible for developing the industries in Ranchi by arranging loans, supplying power, and water etc.

Jamshedpur, also known as ‘Tata Nagar’ is another important industrial hub of the state. Initially established for the manufacture of steel, it gradually transformed itself to an important industrial hub since small industries opened to change the raw steel into finished products. Some of the major industries established in the city are, TELCO, Indian Tube Company, The Tinplate Company of India Ltd. etc. Besides this, the city is home to the first private Iron and Steel Company of India.

Dhanbad is a mining town as it treasures vast mineral wealth of India and is internationally famous for its rich coal fields. Some of the industries in and around Dhanbad are Tata Iron & Steel Company, Foundry fuel products Pvt. Ltd., Akash Coke industries (P) Ltd, etc. Coal washing and coke making are the main coal related industry found in the city.

The industrial profile of these four major cities gives a clear picture of the potential of these cities, which is instrumental to the development of the whole state. Further, a detailed demographic as well as economic profile of these cities will provide valuable insights for the investors before they decide to bring in investment.



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Table 1: Demographic Profile 2001

Cities Population

Recent Migrants per 100,000 population Slum Population

Ranchi City 730,655 5,607 74,692Dhanbad City 958,280 4,074 37,579Jamshedpur City 1,091,204 3,471 75,924

Bokaro City 648,966 4,387 . Source: Census of India, 2001

Table 2: Economic Profile 2008

Cities

Annual Total Household Income of Urban Households (in

Rs Crore)

Annual Total Household Savings of

Urban Households (in Rs Crore)

Market Size (in Rs Crore)

Ranchi City 6,821 1,152 5,669

Dhanbad City 5,309 1,303 4,007

Jamshedpur City 7,962 3,596 4,366

Bokaro City 5,793 1,978 3,815 Source: City Skyline of India, Indicus Analytics, 2008

Jamshedpur city has the highest household income and household savings among four cities identified in the state.

Household savings in Jamshedpur city are as high as 45 percent of the household income as compared to Ranchi and Dhanbad where it is below 25 percent.

Ranchi city has the largest market size among all four major cities in the state and thus has higher chances of attracting investments.



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Section VII Ranking of Eastern Zone States

Eastern zone comprises of the states of West Bengal, Assam, Bihar, Jharkhand, Chhattisgarh and Orissa. The region lies on the east coast of India and on the Indo-Gangetic plain. Agriculture has been the mainstay for most of the states in the region thereby employing majority of the working population. Development of the industrial sector is concentrated mostly in West Bengal and Jamshedpur region of Jharkhand. Recently, the IT sector is also developing in these states. This section will look at how the states in the eastern zone are performing in sectors like agriculture, infrastructure etc. The rankings of these states in the eastern zone as well as in the whole country will be given.

The performance of the states was examined across eight heads - agriculture, consumer markets, education, law and order, health, infrastructure, investment-scenario and macro-economy. Six to eight variables were selected in each category and individual index was constructed in each of the sectors. A composite index was constructed by taking the simple average of the individual indices. The overall ranks of these states as well as the ranks in three categories, viz, agriculture, law & order and infrastructure have been given in the present analysis. The position of the states in three categories in the country is given in Table 1. The composite rank of these states is also mentioned.

Table 1: All-India Ranks

States Agriculture Law & Order Infrastructure Composite Rank 2008Assam 19 14 17 13West Bengal 8 15 14 15Chhattisgarh 18 11 18 16Orissa 17 13 16 17Jharkhand 20 17 20 19Bihar 15 19 19 20

Table 1 shows that no eastern zone state makes it in the top ten at all-India level. The potential of agriculture-sector generally remains untapped in the region. Except West Bengal no other state has performed well in agriculture. Dry-land farming; sustainable agricultural practices, commercialization of agriculture etc. are some of the possible measures which the states could take to improve this sector. The law & order situation is quite poor in the region. It is mainly disrupted by widespread naxalism. Equitable socio-economic development, strengthened internal-security, and a coordinated effort by all the affected states would go a long way in resolving this persistent problem. Infrastructure bottlenecks are another major hindrance in achieving overall development in the region. The provision of world-class infrastructure in certain spheres like power, telecommunications, information-technology, and transport would go a long way to remove these bottlenecks.



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Table 2: Eastern Zone Ranks

States Agriculture Law & Order Infrastructure Overall Rank 2008Assam 5 3 3 1West Bengal 1 4 1 2Chhattisgarh 4 1 4 3Orissa 3 2 2 4Jharkhand 6 5 6 5Bihar 2 6 5 6

Table 2 gives the position of the states in the eastern zone. In agriculture, West Bengal has done the best in the eastern region. Fertile alluvial soil and good irrigation facilities have helped in enhancing food grain yield in the state. River Hooghly and its tributaries - Mayurakshi, Damodar, Kangsabati and Rupnarayan while the northern part comprising of the districts of Darjeeling, Jalpaiguri and Cooch Bihar are watered by the swift flowing rivers Tista, Torsa, Jaldhaka and Ranjit. On the other hand, Jharkhand’s mineral rich land is generally unsuitable for agriculture.

Law and order situation in Chhattisgarh is comparatively better than the states under consideration. The success of ‘Salwa Judum’ in reducing the influence and menace of naxalism has been one of the major factors for this performance. On the other hand, widespread naxalism, high number of pending cases in the courts and high incidence of cognizable crimes in Jharkhand has pushed it to the last place in law and order situation in the region.

West Bengal has better infrastructure facilities than other states. The state has better connectivity to pucca roads, rich asset ownerships etc. On the other hand, Jharkhand has not been able to provide better infrastructure facilities to its citizens. Despite hosting Damodar Valley Corporation, India’s first multi-purpose hydro-project, Jharkhand has not been able to provide power, telephone and road connectivity in remote areas. This has pushed it to the bottom in terms of infrastructure in the region.

In terms of overall performance, Assam holds rank one among the eastern zone states. The state has performed better vis-à-vis its neighbors especially in providing education and health facilities to its people, which has pushed it to the top ranking. Jharkhand comes at fifth place, one place above its parent state Bihar. Unscientific agriculture, poor infrastructure, naxal problem, and political instability pose major developmental challenges for the state, which need to be transcended to achieve all-round development of the state.



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Section VIII Looking into the future

What will be the life of the average citizen in the future? This is a question that occupies the mind of most people as they wonder whether the future holds something good for them, will conditions be the same or could they be worse? Forecasting has its limitations as there is continual change in underlying conditions. Ten years ago, for instance, the state of Jharkhand did not even exist and no forecasts could predict when the state would come to being. However, even with these constraints, one can always indulge in some speculation, to imagine one probable scenario of the infinite combinations of the future.

It is therefore an interesting academic exercise to see where the various states in India are projected to be in 2020-21. The aim of economic growth is to raise the standard of living of the average citizen; the measure for this is typically the per capita income of the state or country. In this exercise, there has been no attempt to forecast any change in the rate of growth, that is, the states are assumed to grow at the rate they have grown in the past. In other words, the question that is answered here is - if the present growth trend continues, what will be the per capita income in the year 2020-21? More importantly, this per capita income has been translated into international dollar7 terms to compare with current conditions in countries around the world. This makes it easier to visualise the change ahead. One important point to note is that if a state grows at a faster rate than before, its position will naturally

7 International dollars refers to converting the income from the local currency in PPP terms or purchasing power parity terms. Market exchange rates fluctuate depending on the trade between countries; if a dollar is Rs. 43, it does not mean that Rs. 43 buys the same amount of goods and services in India as $1 does in the US. Therefore PPP exchange rates are calculated to account for these differences. International dollar therefore is a better method of comparing incomes measured in different currencies in the world.


State

Per capita income in international dollars 2020-21

Matching country’s current per capita income 2007

Rank of country in the world*

Annual rate of growth

Chandigarh 57,068 Norway 3 13.1%Delhi 21,467 Czech Republic 34 8.4%Gujarat 13,997 Malaysia 51 8.9%Himachal Pradesh 12,168 Turkey 58 8.3%Maharashtra 11,291 Mauritius 60 6.7%Andhra Pradesh 9,641 South Africa 72 8.2%Punjab 9,537 South Africa 72 5.6%Tamil Nadu 9,287 Brazil 74 9.3%Karnataka 8,004 Macedonia 75 7.0%West Bengal 7,391 Peru 81 7.1%Chhattisgarh 7,059 Tunisia 83 8.5%Orissa 6,710 Ukraine 86 8.0%Jharkhand 6,313 Azerbaijan 90 7.8%Assam 4,955 Bhutan 100 6.4%Madhya Pradesh 2,817 Guyana 123 3.9%Bihar 2,676 Congo 124 7.2%*India ranks 125th in the world today in per capita income out of 175 countries

123


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improve, whereas if it grows at a slower rate, there will be a comparative fall in the ranking. Thus, the exercise shows for instance that if Chandigarh grows at its present growth rate, by 2020-21, its citizens will enjoy the same per capita income as Norway does today. As Norway ranks third today in per capita income levels and India ranks 125th, it is clear what this jump will mean to the people of Chandigarh.

According to this exercise, by 2020, per capita income in Jharkhand will match the level in Azerbaijan today. Azerbaijan is a country in Central Asia, which has gained wealth through natural resources, as it is rich in oil and natural gas. It has a high rate of out- migration as people find better employment opportunities outside the country. Development indicators are not ranked high as health and education provision is still lacking in most parts of the country. There are thus points of similarity between Azerbaijan and Jharkhand. However, if Jharkhand can raise its level of economic growth, it has the potential to boost income and standard of living levels, higher than what are found in Azerbaijan today. Currently, Azerbaijan is ranked 90th in the world in terms of its per capita income level.

On the other hand, parent state Bihar which is the poorest state in India today needs a much higher boost. Given the present trend of economic growth, it will reach the same level as the Democratic Republic of Congo today. This country in West Africa has been through wars that have ravaged the economy. Human development indicators are much lower than in India. In per capita income terms, the country ranks 124, just one rank above India currently. This means that at current rates of growth, it will take 13 years for the average per capita income in Bihar to even match the present levels in India today.

This exercise has been done to give food for thought to the people and to the governing classes in the various states. By making comparisons of projected future income levels with present conditions in countries around the world, the importance of raising growth rates becomes much clearer. One does not know what will eventually transpire, but it is important to move towards improving upon the present growth rates, to push the economies on higher paths and deliver a better living for the citizens of the country.



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Appendix

Table 1.Total Population in the districts of Jharkhand (2001 & 2008)Districts 2001 2008

Bokaro 1,775,961 1,977,187

Chatra 790,680 914,979

Deoghar 1,161,370 1,315,932

Dhanbad 2,394,434 2,677,336

Dumka 1,754,571 1,905,451

Garhwa 1,034,151 1,197,402

Giridih 1,901,564 2,179,195

Godda 1,047,264 1,161,959

Gumla 1,345,520 1,450,259

Hazaribagh 2,277,108 2,559,382

Kodarma 498,683 569,007

Lohardaga 364,405 414,578

Pakaur 701,616 789,904

Palamu 2,092,004 2,399,785

Pashchim Singhbhum 2,080,265 2,239,936

Purbi Singhbhum 1,978,671 2,214,469

Ranchi 2,783,577 3,160,640

Sahibganj 927,584 1,053,599

Total 26,909,428 30,181,000

Source: Census 2001, Indian Development Landscape 2008



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Table 2.Proportion of SC & ST population (2001)

Districts SC ST

Bokaro 13 12

Chatra 32 4

Deoghar 13 12

Dhanbad 16 9

Dumka 7 40

Garhwa 24 15

Giridih 13 10

Godda 9 24

Gumla 5 68

Hazaribagh 15 12

Koderma 14 1

Lohardaga 4 56

Pakur 3 45

Palamu 26 19

Paschim Singhbhum 5 53

Purbi Singhbhum 5 28

Ranchi 5 42

Sahibganj 6 29 Source: Census 2001



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Table 3.Total Literate Population in the districts of Jharkhand (2001 & 2008)

District Name 2001 2008Bokaro 942,078 1,350,258Chatra 273,166 475,612Deoghar 475,684 752,501Dhanbad 1,367,678 1,974,958Dumka 699,682 1,064,170Garhwa 320,533 562,327Giridih 679,053 1,127,879Godda 371,184 566,021Gumla 578,182 850,560Hazaribagh 1,081,921 1,699,677Kodarma 210,679 341,008Lohardaga 158,918 252,374Pakaur 171,056 275,486Palamu 766,490 1,240,594Paschim Singhbhum 871,410 1,273,225Purbi Singhbhum 1,184,657 1,643,801Ranchi 1,537,826 2,263,084Sahibganj 279,980 450,587

Source: Census of India,2001 & Indian Development Landscape 2008



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Table 4.Work Participation Rate across sectors

Districts

Work participation rate - Rural

Work participation rate - Urban

Work participation rate - Total

Bokaro 32.7 23.7 28.7

Chatra 38.6 23.9 37.8

Deoghar 39 25.4 37.1

Dhanbad 30.7 24.9 27.7

Dumka 45.4 27.1 44.2

Garhwa 39.5 26.2 38.9

Giridih 34.5 24.3 33.8

Godda 40.8 25.4 40.3

Gumla 50.3 25.5 48.9

Hazaribag 37.5 25.5 34.7

Kodarma 36.7 27.4 35

Lohardaga 44.6 24.7 42.1

Pakaur 45 27.7 44.1

Palamu 38.7 24.7 37.8

Pashchimi Singhbhum 47.3 28 44.1

Purbi Singhbhum 44.9 26.7 34.9

Ranchi 45.2 26.5 38.7

Sahibganj 43.9 24.6 41.8

Source: Census 2001



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Table 5.Total amount of deposits and total credit as per place of sanction, 2007

Districts Deposits (in Rs '000')

Credit as per Place of sanction (in Rs '000')

Bokaro 38,165,200 13,230,500Chatra 4,965,600 888,300Deoghar 10,361,300 3,470,700Dhanbad 56,496,800 12,627,400Dumka 10,183,900 3,133,600Garhwa 4,428,700 1,077,000Giridih 13,433,800 4,882,600Godda 5,173,300 1,992,200Gumla 7,431,200 1,522,300Hazaribag 29,782,700 7,862,400Kodarma 5,426,700 1,342,600Lohardaga 2,444,700 746,600Pakaur 3,121,600 938,400Palamu 14,077,900 2,987,100Pashchimi Singhbhum 22,009,000 7,411,200Purbi Singhbhum 53,774,100 31,167,400Ranchi 83,499,900 24,313,000Sahibganj 4,605,000 1,513,700

Source : Reserve Bank of India, Basic Statistical Returns, March- 07



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Table 6.District-wise penetration of LPG & television, 2006

Districts % Hhlds using LPG% Hhlds

owning TV

Bokaro 23.8 43.0

Chatra 2.2 8.3

Deoghar 7.6 18.2

Dhanbad 18.8 59.5

Dumka 4.4 14.7

Garhwa 2.2 6.6

Giridih 2.8 8.5

Godda 1.3 9.3

Gumla 1.7 3.2

Hazaribagh 9.0 31.1

Kodarma 9.2 18.8

Lohardaga 6.7 12.8

Pakaur 2.0 6.4

Palamu 2.2 8.5

Paschim Singhbhum 5.2 10.7

Purbi Singhbhum 43.4 52.0

Ranchi 20.9 32.0

Sahibganj 4.5 9.9

Source : Market Skyline of India, 2006



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Bibliography

Bhandari, Laveesh and Amaresh Dubey (2001) Incidence of Poverty and Hunger in Indian Districts. RGICS working papers. Rajiv Gandhi Institute of Contemporary Studies, New Delhi.Central Statistical Organisation (2004) Capital Formation at State Level, Ministry of Statistics and Programme Implementation Seminar Series.— (2006) Economic Census 2005— (2006) National Accounts Statistics (http://mospi.nic.in/mospi_nad_main.htm)Ministry of Human Resource Development (2004) Selected Educational Statistics 2003-04.Ministry of Agriculture Land Use Statistics at a Glance 2001-02 and 2002-03.Ministry of Commerce and Industry (2006) SIA Newsletter Department of Industrial Policy and Promotion.Ministry of Communications & Information Technology Annual Report 2002-03Ministry of Health and Family Welfare (2002) Health Information of India.Ministry of Health and Family Welfare National Family Health Survey, Round 1 and 2— Reproductive and Child Health Survey, Rounds 1 and 2.Ministry of Home Affairs Crime in India 2005 National Crime Records Bureau.Ministry of Human Resource Development Annual Report various issuesMinistry of Rural Development Ministry of Shipping, Road Transport and Highways Basic Road StatisticsMinistry of Shipping, Road Transport and Highways Motor Transport Statistics.National Sample Survey Organisation (NSSO) (2001) Employment and Unemployment Situation in India 1999-2000 Part I and II NSS 55th Round, Ministry of Statistics and Programme Implementation.— (2003) 58th Round, Ministry of Statistics and Programme Implementation.Planning Commission (2002) State Plans – Trends, Concerns and Strategies, 10th Five Year Plan (2002-07), Vol. III.(2002) India Vision 2020— (2006) Towards Faster and More Inclusive Growth – An Approach to the 11th Five Year Plan.Registrar General and Census Commissioner (2001) Census of India Registrar General of India (2006) Sample Registration Bulletin Volume 38 No.1Reserve Bank of India(RBI) (2005) A Study of Debt Sustainability at State Level in India.— (2007) Basic Statistical Returns of Scheduled Commercial Banks in India.— (2007) State Finance : A Study of Budgets of 2005-06.All India Council for Technical Education AICTE Handbook for Approval ProcessFertilizer Association of India Fertiliser & Agricultural StatisticsIndian Council of Forestry Research and Education (2001) Forestry Statistics IndiaIndicus Analytics (2002) How are the states doing 2002 Report prepared for Confederation of Indian Industries.

— (2008) Market Skyline of India 2008— (2008) Indian Development Landscape

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http://www.jharkhandonline.gov.in/japit/Aboutus.aspx

http://www.worlib.org/vol17no1/singh_v17n1.shtml

http://egovonline.net/egovindia/egov India 2006 presentationsegov India 24th AugustSWANRam Sewak Sharma.pdf

http://egovonline.net/egovindia/egov India 2006 presentationsegov India 24th AugustSWANRam Sewak Sharma.pdf

http://www.hindustandainik.com/news/181_1949598,000900030009.htm

http://www.jharkhandonline.gov.in/japit/jhar.aspx

http://www.jharkhandindustry.in/indpolicy.php?file=it.html

http://www.jharkhandindustry.in/export-survey.php#survey

Jharkand Development Report 2009

Business

districts of jharkhand

people of jharkhand

state profile

nascent state

section v jharkhands

consecutive year

prabhat khabar

socioeconomic profile