For updated information, please visit www.ibef.org March 2021 TOMB OF SHER SHAH SURI, SASARAM, BIHAR BIHAR
For updated information, please visit www.ibef.orgMarch 2021
TOMB OF SHER SHAH SURI, SASARAM, BIHAR
BIHAR
2
Executive Summary 3
Introduction 4
Economic Snapshot 9
Physical Infrastructure 15
Social Infrastructure 23
Industrial Infrastructure 26
Key Sectors 28
Key Procedures & Policies 35
Appendix 43
Table of Contents
3
Executive summary
3 Leader in the production of fruits and vegetables
• Bihar is the fourth largest producer of vegetablesand the eighth largest producer of fruits in India.
.
5 Third largest mobile subscriber base With 84.22 million mobile subscribers in
January 2020, Bihar* accounted for thethird largest mobile subscriber base amongall the Indian states.
1 Fastest growing state in India• The Gross State Domestic Product
(GSDP) of Bihar increased at a CAGRof 13.27% from 2016 to 2020 and isprojected to register a CAGR of 13.04%between 2016 and 2021.
4 Strong agriculture sector
• Bihar has high agricultural productionmaking it one of the strongest sectorsof the state. About 80% of the state’spopulation is employed in agriculture,which is much higher as compared toIndia’s average. The state hasdeveloped as the number one state inthe eastern region in terms ofagricultural production.
2 Fastest per capita income growth Bihar has witnessed strong growth in
per capita net state domestic product.At current prices, per capita NSDP ofthe state grew at a CAGR of 13.41% (inRs.) between 2015 and 2021.
.
5
4
3
2
1
Source: Central Statistics Office, Ministry of Statistics and Programme Implementation, Ministry for Integrated Development of Horticulture, NSDP- Net State Domestic ProductNote: * - includes Jharkhand,
5
Bihar fact file
Bihar is located in the eastern part of India. The state is surrounded by Nepal in the north, West Bengal in the east, Uttar Pradesh in the west andJharkhand in the south.
The state has a number of rivers; the most important of which is the Ganges.
Patna, Gaya, Bhagalpur, Muzaffarpur and Darbhanga are some of the key cities in Bihar.
The most commonly spoken languages in the state are Hindi, English, Urdu, Bhojpuri, Maithili and Angika.
The 4 agro-climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops.
Key Insightsadministrative districts: 38
1,106 persons per sq kmPopulation density
49,800,0000female population
PatnaCapital
94,163 sq.km.geographical area
63.8%literacy rate
120,590,000total population
54,300,000male population
918Sex ratio
(females per 1,000 males)
Source: Government of Bihar website, Census 2011
6
Advantage: Bihar
Location advantage• The state enjoys a unique
location specific advantagebecause of its proximity to thevast markets of eastern andnorthern India, access to portssuch as Kolkata and Haldia andto raw material sources andmineral reserves from theneighbouring states.
Policy incentives
• As per the women empowerment policy, the state isincreasing its focus on women empowerment by ensuringavailability of resources (education and employment) forwomen, which would in turn lead to increased contributionfrom women in development of the economy.
• The total number of registered workers under the ESISwas 2.02 lakh in 2017-18, and the number has increasedto 2.83 lakh in 2018-19, an increase of 40%.
Rich labour pool
• The state has a large base ofcost-effective industrial labour,making it an ideal destinationfor a wide range of industries.
• The state has institutes ofnational importance such asNational Institute ofTechnology and Indian Instituteof Technology, which provideskilled manpower to industries.
High Economic Growth with flourishing industries
• The GSDP of Bihar increased at a CAGR of 13.27%between 2015-16 and 2019-20.
• Food processing, dairy, sugar, manufacturing andhealthcare are some of the fast-growing industries inthe state. The state has planned initiatives for thedevelopment of other sectors such as education andtourism.
Source: Ministry of Statistics and Programme Implementation, News articles
7
Bihar in figures
Bihar Contribution to Indian Economy (2018-19)
Social Indicators
Physical Infrastructure in Bihar
Industrial Infrastructure
GSDP as a percentage of all states’ GSDPIndia: 100.0
Per capita GSDP* (US$)India: 1,977.60| Bihar : 725.93
GSDP growth rate** (%)India: 10.0 | Bihar : 13.27
Literacy rate (%)India: 77.7| Bihar : 70.9
PPP projects under construction (no)India: 466| Bihar : 11
PPP projects operational and maintenance stage (no.)India: 901| Bihar : 10
Installed power capacity (MW) (as of February 2021)India: 379,130.41 Bihar: 5,803.30
Internet subscribers (million) (as of September 2020)India: 776.455 | Bihar : 51.68
Wireless subscribers (million) (as of September 2020)India: 1,148.58 | Bihar: 84.28
India: 1,36,440 | Bihar: 5,420.78
Airport (No.)India: 153 | Bihar : 5
GSDP| Bihar: 3.76
Birth rate (per 1,000 population) (2018)India: 20| Bihar : 26.2
Investments (as of December 2020)
Cumulative FDI equity inflows (From October 2019 to December 2020) (US$ million)India: 75,351.56 | Bihar : 16.79
Note: GSDP, per capita GSDP figures are taken at current prices, For source refer to Annexure
National highway length (km) (as of December 2020)
8
State vision
Source: Confederation of Indian Industry
4 GSDP GROWTH Agriculture to play a significant
role with opportunities in foodprocessing and agro-basedindustries.
Use quality seeds andfertilisers and upgradedtechnology
Provide institutional credit andcrop insurance.
Develop infrastructure withfocus on roads and energysector.
1 TOURISM Knowledge and religious hubs
to be built and will attract100,000 tourists per year by2022.
Construct mega religioustheme parks (Buddhism andJainism).
Eight centres for educational,cultural and religious tourismplanned.
Planned roadmap forimproved connectivity; luxuryhotels to be constructedthrough PPP mode.
Tourism service centres to beset up.
3 EDUCATION Achieve zero dropout rate in secondary education. Increase spending on building schools and colleges
with easy access and upgraded infrastructure. Launch policy initiatives to ensure compulsory
enrolments Open vocational training institutes.
2 HEALTH Build medical institutions, create awareness and bring about
technological advancements. Introduce radiology and pathology services in every district. Government hospitals across 36 districts to be provided
with CT scan services. All Government hospitals likely to commence dialysis
services.
1
2 3
4
10
Economic Snapshot – GSDP
GSDP of Bihar at current prices
In 2019-20, Bihar’s GSDP at current prices was about Rs. 6.11trillion (US$ 87.65 billion).
The state’s GSDP expanded at a CAGR (in Rs.) of 13.27% between2015-16 and 2019-20.
The GSDP for 2020-21 (at current prices) is projected to be Rs.6,85,797 crore (US$ 94.48 billion), 12.09% higher than the revisedestimate for 2019-20.
56.7
7
62.7
6 72.7
3
76.9
9 86.7
9
94.4
8
3.72 4.
21 4.69 5.
30
6.12 6.
86
0
1
2
3
4
5
6
7
8
0.0010.0020.0030.0040.0050.0060.0070.0080.0090.00
100.00
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
2020
-21B
E
US$ billion Rs. trillion
CAGR (In Rs.) 13.27%
Note: BE- Budget EstimateSource: Central Statistics Office
Bihar’s per capita GSDP at current prices
The per capita GSDP of Bihar increased to Rs. 50,735 (US$725.93) in 2019-20.
The per capita GSDP of Bihar rose at a CAGR of 11.17% (inRs.) between 2015-16 and 2019-20.
507.
46
552.
27 621.
65
638.
88 725.
93
33,2
18
37,0
52
40,0
65 44,6
52 50,7
35
0
10,000
20,000
30,000
40,000
50,000
60,000
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ Rs.
CAGR (In Rs.) 11.17%
11
Economic Snapshot – NSDP
464.
46
507.
45 571.
76
586.
38 667.
68
30,4
03.8
7
34,0
44.9
0
36,8
49.7
8
40,9
81.9
9
46,6
64.1
5
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ Rs.
Per capita NSDP of Bihar at current prices
Source: Central Statistics Office
CAGR (In Rs.) 11.30%
Bihar’s NSDP at current prices
In 2019-20, Bihar’s NSDP was Rs. 5.63 trillion (US$ 80.51billion).
Average NSDP growth rate in the state was ~13.41% (in Rs.)between 2015-16 and 2019-20.
51.9
6
57.6
7 66.8
9
70.6
6 79.8
3
3.40
3.87 4.
31
4.87
5.63
0
1
2
3
4
5
6
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
US$ billion Rs. trillion
CAGR (in Rs.) 13.41%
Note: Conversion rate - As per slide 45
Bihar’s per capita NSDP stood at Rs. 46,664.15 (US$ 667.68)in 2019-20.
Robust growth across secondary and tertiary sectors boostedthe average per capita NSDP of Bihar at a CAGR of ~11.30%(in Rs.) between 2015-16 and 2019-20.
12
Economic snapshot – Percentage distribution of GSVA
40.71%
22.13%
29.64%
22.13%
29.64% 55.74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011-12 2019-20
Primary Sector Secondary Sector Tertiary Sector
In 2019-20, the tertiary sector contributed 55.74% to Bihar’s Gross
State Value Added (GSVA) at current prices, followed by the
secondary sector (22.13%) and primary sector (22.13%).
The tertiary sector grew the fastest among the three sectors from
2011-12 to 2019-20 (28.93% CAGR).
The primary sector expanded at a CAGR of 10.40% between 2011-
12 and 2019-20.
The secondary sector expanded at a CAGR of 14.87% between
2011-12 and 2019-20.
The growth is led by various activities such as construction,
electricity supply, trade and repair services
Visakhapatnam port traffic (million tonnes)Percentage distribution of GSVA
10.40%
28.93%
14.87%
CAGR
Source: Central Statistics Office
13
Economic snapshot – FDI inflow and investments
FDI* Inflows in Bihar in April 2000 - March 2020 (US$ million)
Source: Department for Promotion of Industry and Internal Trade
According to the Department for Promotion of Industry and InternalTrade (DPIIT), the cumulative FDI inflows in Bihar were valued atUS$ 16.79 million between October 2019 and December 2020.
In 2019, eight investments were filed in the state and the amount ofinvestments proposed was Rs. 671 crore (US$ 96.01 million).
In January 2020, one investment worth Rs. 50 crore (US$ 7.52million) was proposed in the state.
Note: * - Including Jharkhand, IEMs - Industrial Entrepreneur Memoranda, *- Till January 2020
Investment intentions in terms of IEMs filed
Year NumberProposed investments (US$ million)
2016 19 898.99
2017 7 72.77
2018 9 1,122.25
2019 8 96.01
2020* 1 7.52
624
72 11
43
10
10
6
119
0
20
40
60
80
100
120
FY01
-FY1
1
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY01
-FY2
0
14
Economic snapshot – Export
Total merchandise export from the state stood at US$ 1,661.13 million in 2020. In 2020-21 (until January 2021), exports stood at US$ 1,160.72million.
Major items exported from the state of Bihar were petroleum products, buffalo meat, other cereals and rice (other than basmoti).
Source: Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and IndustryNote: * Until January 2021
Export Trend (US$ million)
1,034.66
546.31
823.53
1,345.31
1,640.33 1,661.13
1,160.72
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
1,800.00
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Composition of Key Items Exported from Bihar (FY21)
32.57%
15.66%12.11%
7.92%
2.77%
28.97%
Petroleum Products Buffalo Meat
Other Cereals Rice (other than Basmoti)
Drug Formulations, Biologicals Others
16
Physical infrastructure – Roads
Bihar has 5,412.37 km of national highways and 3,739.11 km of statehighways. The state also has 13,456.91 km of major district roads.
As of September 2019, 52,194.11 km of road works have beencompleted in Bihar under Pradhan Mantri Gram Sadak Yojana.
Under BSHP - 2, construction of ROB (part of SH 83 - Baghi-Barbigha Road) is expected to complete in January 2019. Total costof the project was Rs. 32.74 crore (US$ 5.08 million).
The public investments in rural roads by the State Government hasincreased by more than five times from Rs. 1,874 crore (US$ 268.14million) in 2012-13 to Rs. 10,476 crore (US$ 1.50 billion) in 2019-20.
Under State Budget 2020-21, Rs. 17,345 crore (US$ 2.46 billion) hasbeen allocated for road and bridges construction.
In December 2020, Union Minister for Road Transport andHighways, Mr. Nitin Gadkari, inaugurated the three lane 1.5 km longKoilwar bridge in Bihar, a major road for transport between Bihar andUP. A sum of Rs. 266 crore (US$ 35.96 million) has been spent onthe bridge.
In Bihar, road work worth Rs. 30000 crore (US$ 4.06 billion) isundergoing. For compensation against land acquisitions, a total ofRs. 4600 crore (US$ 621.81 million) has been announced.
By 2023, a 7-km four lane Koshi bridge worth Rs. 1478 crore (US$199.79 million) is likely to be constructed.
Type of road Length (kms) (2019-20)
National highways (as of December 2020) 5,420.78
State highways 3,739.11
Major district roads 13,456.91
Total 22,608.39
Source: Economic and Highways, State Budget 2015-16, Road Construction Dept., Bihar Rajya Pul Nirman Nigam LtdNote: 2017, NH - National Highway, ROB - Road Over Bridges, BSHP - Bihar State Highway Project
Roads in Bihar
In January 2021, the road construction department decided to buildbypass roads at 120 urban locations across the state, under the SaatNischay Part-2 programme, with the aim to ease traffic congestion.
The total length of roads is 708 kilometres, with the costestimated at Rs. 4,154 crore (US$ 559.99 million).
17
Physical infrastructure – Railways
• The length of rail route in Bihar was 3714 kms. The share of rail route in Bihar was 5.5% of the total rail route. The density of rail route in Bihar was 39.4 kms per 1000 sq. km of area.
• Hajipur in Bihar is the headquarter of the East-Central Railway. The state’s main railway junctions are at Patna, Gaya, Muzaffarpur, Katihar and Samastipur.
• Several link-lines, such as Muzaffarpur-Samastipur-Barauni-Katihar and Muzaffarpur-Chapra-Siwan, have been converted to broad gauge from metre gauge.
• The Government of India has signed agreements with Alstom and General Electric for production of electric and diesel locomotives. Two greenfield locomotive factories are in the process of being established in Bihar. One locomotive factory in already operational in Madhepura while the other is being set up.
• In September 2020, the Prime Minister, Mr. Narendra Modi inaugurated the ‘Kosi Rail Mahasetu’ project and new rail lines and electrification projects in Bihar. These projects include a new railway bridge on the Kiul river, two new railway lines, five electrification projects, one electric locomotive shed at Barauni and a third line between Barh and Bakhtiyarpur.
Source: Economic Survey 2018-19
18
Physical infrastructure – Airports
Bihar has one domestic airport in Patna and one international airportin Bodh Gaya. Several domestic airlines connect Patna to Delhi,Kolkata, Mumbai, Lucknow, Bengaluru, Hyderabad and Ranchi.
The airport in Bodh Gaya is used for international connectivity withBangkok (Thailand), Colombo (Sri Lanka), Yangon (Myanmar),Dhaka (Bangladesh), Paro (Bhutan) and Kuala Lumpur (Malaysia).
In 2020-21, the total passenger traffic and freight handled at Patnaairport was 14,75,677 and 7,224 MT, respectively.
On December 17, 2020, SpiceJet announced the launch of 30 newdomestic flights, including six new flights from Darbhanga, Bihar,which stated its operations on a phased basis from December 20,2020.
Parameter Patna Gaya
Aircraft movement (nos.) 11,449 472
Passenger traffic (nos.) 14,75,677 39,101
Freight handled (MT) 7,224 0
Airport indicators in 2020-21 (April-November)
Source: Airport Authority of India
19
Physical infrastructure – Waterways
The 1,620 km stretch of the river Ganges that flows between Allahabad inUttar Pradesh and Haldia in West Bengal has been declared ‘NationalWaterway 1’, and is being developed by the Inland Waterways Authority ofIndia.
Patna has a low-level fixed terminal on National Waterway-1 for handlingcontainers. The National Inland Navigation Institute has been set up inPatna to train vessel crews.
As per National Waterways Act, 2016, 111 waterways have been declaredas National Waterways (NWs) including the 5 existing NWs. The techno-economic feasibility for the newly declared 106 NWs has been initiated.Under this new scheme, 6 NWs have been planned in the state of Bihar.
In January 2018, approval for implementation of the Jal Marg Vikas Project(JMVP) was given under which plan for development of NW-1, ferryservices, ship repair facilities, roll-on roll-off (RO-RO) services, state-of-the-art terminals at Kalughat and Gaighat will be developed in the state ofBihar. The projects are likely to create direct and indirect employment formore than 50,000 people in the state
S. No National Waterways
Approximate length (km)As State
1 NW-1 1,620UP, Bihar,
Jharkhand and West Bengal
2 NW-37 296 Bihar and UP
3 NW-40 354 Bihar and UP
4 NW-54 86 UP and Bihar
5 NW-58 236 Bihar
6 NW-81 35 Bihar
7 NW-94 141 Bihar
Source: Bihar Report Card 2015, Press Information Bureau
20
Physical infrastructure – Power and Petroleum
Power
The BSEB is a vertically integrated agency and is responsible forgeneration, transmission and distribution of electricity in Bihar
As of February 2021, Bihar had a total installed power generationcapacity of 5,803.30 MW, of which 4,748.39 MW was contributed bycentral utilities, 70.70 MW by state utilities and 984.21 MW by privateutilities.
During the same period, of the total thermal power plant capacity,coal-based plants accounted for the largest share with capacitycontribution of 5,338.39 MW.
Hydropower plants accounted for a power generation capacity of 110MW. Besides, 354.91 MW of installed power generation capacitycame from renewable sources.
On September 27, 2020, a 660-MW unit of its supercritical thermalpower plant in Bihar was synchronised with the grid by NTPC Ltd.,which would enable the commercial generation of electricity from it.Five units with a capacity of 660 MW each, spread over 3,200 acresof land at Barh in the Patna district, were set up by NTPC.
Installed power capacity (MW)
Source: Central Electricity Authority
3,02
9.89 3,60
7.54 4,
341.
47
4,56
6.47
5,80
3.30
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
FY16
FY17
FY18
FY19
FY20
Note: BSEB - Bihar State Electricity Board, MW- Megawatt
Petroleum
To boost the state’s petroleum and gas sector, Bihar introduced 10 projects worth Rs. 21,000 crore (US$ 2.85 billion). Out of 10, three projectswere launched in September 2020 - for the Petroleum sector - in Bihar’s Durgapur-Banka section of the Paradip - Haldia-Durgapur pipelineaugmentation project and two LPG bottling plants. The other five initiatives were completed projects.
21
Physical Infrastructure – Telecom
The Office of Controller of Communication Accounts (CCA) regulatesand monitors the telecom department in the state.
According to Telecom Regulatory Authority of India (TRAI), Bihar*had ~84.28 million wireless subscribers and 191,912 wirelinesubscribers, as of September 2020.
Tele-density in Bihar* stood at 52.60%, as of September 2020.
By end of September 2020, 22.48 million subscribers had submittedrequests for mobile number portability in Bihar since its inception.
In October 2020, Minister for Communications, Electronics &Information Technology, Mr. Ravi Shankar Prasad stated that~46,000 villages in Bihar will be connected through optical fibrenetwork in next 6-7 months.
• He added that every village will have a Wi-Fi spot, which will offerfree services for a year. This free network will also be provided toprimary schools, Anganwadi centres and ASHA employees.
Wireless subscribers 84,281,959
Wireline subscribers 191,912
Tele density (in%) 52.60
Internet subscribers (million No.) 51.68
Source: Telecom Regulatory Authority of India
Telecom Infrastructure* (as of September 2020)
Note: * - includes Jharkhand,
Service-ready GPs (November 2020) 8,817
Performance status of Bharat Net Project
22
Physical infrastructure – Urban development
Non metro markets like Patna and other tier II cities have grown rapidlyin regard to consumption, thus becoming main target markets, posing ahuge potential of transforming themselves into new business centres incomparison with metro cities.
4 cities of Bihar namely, Bhagalpur, Bihar Sharif, Patna and Muzaffarpurare to be developed as smart cities. Apart from that 27 cities of Biharwere selected for infrastructure development under AMRUT scheme.
In September 2020, Prime Minister, Mr. Narendra Modi, inauguratedvarious projects under 'Namami Gange' Yojana and 'AMRUT' Yojanaworth Rs. 541 crore (US$ 73.50 million). Four schemes includedsewerage treatment plants at Beur, Karam-Leechak in Patna city,water-related projects in Siwan and Chhapra under the 'AMRUT'Yojana.
Munger water supply scheme under AMRUT Mission to help residentsget pure water through pipelines; foundation stone of Jamalpur watersupply scheme; and Muzaffarpur riverfront development scheme underNamami Gange.
Scheme Estimated cost US$ million
Solid Waste Management for Danapur, Khagaul and Phulwari 1.92
Khagaul Water Supply Scheme 2.18
Danapur Water Supply Scheme 11.44
Phulwarisharif Water Supply Scheme 4.09
Patna Water Supply Scheme 70.83
Solid Waste Management for Patna 6.13
Purchase of buses for Patna Urban Transport 6.62
Bodhgaya Water Supply Scheme 5.56
Bodhgaya Sewerage Scheme 15.92
Purchase of buses for Bodhgaya Urban Transport 1.12
Urban Infrastructure in Bihar
Source: Department of Urban Development and Housing, GOB, AMRUT - Atal Mission for Rejuvenation and Urban Transformation
Cities Population Area (sq km) Literacy rate
Bhagalpur 412,209 2,569 63.14%
Biharsharif 297,268 23.5 74.80%
Muzaffarpur 396,590 3,172 83.08%
Patna 2,049,156 3202 83.37%
Smart Cities in Bihar
24
Social infrastructure – Education
The literacy rate of the state was recorded as 61.8%. Male literacy ratein the state is 71.2% and female literacy rate is 51.5%.
The total number of students enrolled in primary and upper primary (upto class VIII) schools rose to 21.6 million in 2014-15 from 17.7 million in2007-08. The enrolment of girls in the state is progressing, with the rateof re-enrolment of girls increasing at a faster rate than that of the boys.However, the dropout rates have witnessed a decline over the pastyears.
The prestigious IIT was established in Patna in August 2008. Theinstitute offers B.Tech programmes in 3 disciplines: Computer Scienceand Engineering, Electrical Engineering and Mechanical Engineering.PhD programmes are offered in Engineering, Science and Humanitiesand Social Sciences. The state Government is coming up with variousinitiatives for increasing employment prospects in the state under theBihar Skill Development Mission. The scheme has been allotted abudget of US$ 2.9 million.
Under State Budget 2020-21, the Government proposed to allocate Rs.35,191.05 crore (US$ 4.99 billion) towards education sector.
Under the Mukhyamantri Balak-Balika Cycle Yojana, every student willget an amount for a cycle which has been increased from Rs. 2,500 toRs. 3,000 (US$ 35.77 to 42.92).
Under the Mukhyamantri Balika Poshak Yojana, will provide uniform forfemale students in class 9 to 12 which has been increased from Rs.1,000 to Rs. 1,500 (US$ 14.30 to 21.46).
Source: Economic Survey of Bihar 2015-16, Medical Council of India, University Grants Commission, Bihar Government Budget 2019-20, IIT - Indian Institute of Technology
Reputed technical institutes in Bihar
Indian Institute of Technology, Patna
National Institute of Technology, Patna
National Institute of Fashion Technology, Patna
On September 15, 2020, The Union Cabinet, chaired by the PrimeMinister, Mr. Narendra Modi, approved establishment of a new AllIndia Institute of Medical Sciences (AIIMS) at Darbhanga, Bihar,under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY).
The total cost of this project is estimated to be Rs. 1,264 crore(US$ 171.72 million) and be completed within 48 months from thedate of approval by Government of India. This move aims atstrengthening the states’ infrastructure related to healthcare,education; this will also boost employment in the state.Employment generation for ~3,000 persons in various faculty &non-faculty posts is estimated.
Reputed medical institutes in Bihar
Indira Gandhi Institute of Medical Sciences, Patna
Jawaharlal Nehru Medical College, Bhagalpur
Patna Medical College, Patna
25
Social infrastructure – Health
As of April 2020, the health centres under various categories hadreached 12,912 in the state, of which 2,111 are primary healthcentres and 10,554 are sub centres. There were 134 districthospitals, 68 community health centres and 44 sub-district hospitalsin the state.
Under the State Budget 2019-20, Central Government and StateGovernment initiated the construction of 11 new medical colleges forwhich Rs. 5,540 crore (US$ 792.67 million) has been approved.
Till 2021, a total of 23 medical universities and 9 nursing colleges areplanned to be established in the state, under the Government andprivate sector. In order to improve the medical knowledge anddevelop super speciality facilities in the state, the Government ofBihar is working towards implementation of Bihar Health ServiceInvestment Incentive Policy.
District hospitals 134
Community Health Centres 68
Sub district hospitals 45
Primary health centres 2,111
Sub centres 10,554
Health indicators (As of September 2018)
Average Number of outpatient visits per day 309
Birth rate 26.8
Death rate 6.0
Infant mortality rate 38
Life expectancy at birth (years)
Male (2012-16) 68.9
Female (2012-16) 68.5
Health infrastructure (April 2020)
Source: Sample Registration System (SRS) Bulletin, State Budget 2019-20,
Government initiatives in the health sector
Increase in sanctioned manpower in departments such as medical, public health and family welfare.
Higher level of personnel appointments and training.
Involving private sector in support services related to cleaning, pathology and radiology.
Free drug distribution and indoor treatment
27
Industrial Infrastructure
Source: Economic Survey of Bihar, 2015-16 BIADA - Bihar Industrial Area Development Authority, Labour Bureau Government of India
Centres Industries
Patna
Major agricultural centre of trade, exporting grain,sugarcane, sesame and medium-grained rice; hasalso emerged as a manufacturing hub in Bihar, withthe highest number of industrial units.
TirhutHas the 2nd highest number of industrial units in thestate; food/beverage processing and manufacturingunits located here.
Muzaffarpur Important trade centre for cloth; famous for exportingfruits, particularly mango and litchi.
Barauni
Has major industrial units including those of IndianOil Corporation; capacity of the existing thermalpower station has undergone major renovation andmodernisation.
Bhagalpur
Famous globally for tussar silk; trading of agriculturalproduce and cloth is an important economic activity;other major industries include rice, sugar milling andwool weaving.
Gaya Major weaving centre; important tourist hub.
The central Government of India approved the formation of an AKICDC (Amritsar-Kolkata Industrial Corridor Development Corporation), development work of which started in 2014. The BIADA is responsible for promoting and assisting rapid development of industries in the
industrial areas and estates.Operations of BIADA are divided into 4 regions - Patna, Muzaffarpur, Darbhanga, Bhagalpur - to facilitate quick services to entrepreneurs. The
total developed land by BIADA is of 5,184 acres; of which industrial units have been allotted 3,438 acres (66%). BIADA of Patna had attained the maximum share of 3,144.82 acres.
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Key sectors – Agriculture and Allied sectors…(1/2)
Bihar is one of the largest producers of vegetables and fruits in thecountry, making it a suitable place for setting up units in the foodprocessing sector. The state is one of the leading producers of fruitssuch as banana, mango, guava, litchi and vegetables such as onion,tomato, potato and eggplant in the country.
The Food Park scheme in Bihar has been declared to be the mostadmired scheme by the Ministry of Food Processing Industry in thehistory of food processing in India.
According to State Budget 2019-20, Rs. 1,430 crore (US$ 204.60million) has been allocated for farmers in drought-prone regions asagriculture input subsidy also allocated Rs. 1,692 crore (US$ 242.09million) towards the recently announced Mukhyamantri Harit KrishiSanyantra Yojana.
In 2019-20, the total production of horticulture crops in the state wasexpected to be 20,676.37 thousand metric tonnes and area underproduction was 1,175.98 thousand hectares. In 2019-20, the totalproduction of vegetables and fruits in the state was estimated at16,327.53 thousand metric tonnes and 4,256.21 thousand metrictonnes, respectively. Leading districts of crop production
Rice Rohtas, Aurangabad, West Champaran, Gaya
Maize Madhepura, Khagaria, Saharsa, Katihar, Bhagalpur
Wheat Rohtas, East Champaran, Muzaffarpur, Siwan
Pulses Patna, Aurangabad, BhojpurSource: Economic Survey of Bihar, 2017-18, Horticulture Database 2018-19, National Horticulture Board, Department of Agriculture Co-operation and Farmers Welfare
Note: ^ - As per 3rd Advance Estimates
YearArea
(‘000 Ha)Production (‘000 MT)
Fruits 324.58 4,256.21
Vegetables 821.50 16,327.53
Spices 9.15 13.83
Plantation 12.14 54.07
Aromatics &Medicinal 7.74 2.50
Honey - 14.80
Area and production of horticulture crops (2019-20)
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Key sectors – Agriculture and Allied sectors…(2/2)
COMPFED is an organised milk processing cooperative which collects milk through district level cooperative unions, and processes and markets the same.It supports members with interventions across technology, supply chain, marketing, training, etc.COMPFED covers five districts directly and 26 districts through six district level cooperative unions. Around 11,000 women have been already trained under its training management programIn April 2018, the State Government of Bihar inaugurated six plants of Bihar State Milk Cooperative Federation.
Usher Agro Limited is one of the largest basic food grain (rice and wheat) processing companies in India. The company established its rice processing mill in Buxar, Bihar in 2003.The company's product list consists of rice, bran, wheat and husk which are sold under the brand name of ‘Rasoi Raja’.
Bihar State Cooperative Milk
Producer’s Federation (COMPFED)
Usher Agro Ltd
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Key sectors – Sugar ... (1/2)
Sugar, the largest agro-based industry in the state, plays a prominentrole in Bihar’s economy. The northern part of the state is climaticallywell suited for producing good quality sugarcane with minimum inputsas compared to other states.
In order to promote the sugarcane industry, the state Governmentgrants various rebates and concessions, some of which include - VATreduction on denatured spirit and ethanol from 12.5 to 4.0% anderadication of literage fees on liquor and ethanol.
During sugar season 2019-20, 11 sugar mills were operating in thestate of Bihar. During 2019-20, 220.50 lakh MT sugar is estimated tobe produced in Bihar.
Super variety 4.81
General variety 4.50
Low variety 4.11
Sugarcane prices (US$/quintals) - as of 2019-18P
Source: Economic Survey of Bihar, 2016-17, Bihar Report Card, 2015 Sugarcane Industries Department, Government of BiharNote: P - Provisional
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Key sectors – Sugar ... (2/2)
The company belongs to the Dhanuka Group and was incorporated in 1980.
It manufactures ethyl alcohol, molasses and sugar at Sitamarhi. The plant has a crushing capacity of 5,000 tonnesper day.
Riga Sugar Co Ltd
The company was incorporated in 1964.
It manufactures molasses and sugar at Purba Champaran, in Bihar.
The plant has a crushing capacity of 2,500 tonnes per day.Eastern Sugar and Industries Ltd
K K Birla Group’s sugar company, Upper Ganges Sugar and Industries Limited (UGSIL), has two units in Bihar:Bharat Sugar Mills at Sidhwalia [crushing capacity of 5,000 tonnes per day (TPD)] and Hasanpur Sugar Mills atHasanpur (crushing capacity of 3,000 TPD).
The Sidhwalia unit has an 18 MW cogeneration power plant.K. K. Birla Group
The company is promoted by the Bajoria family and was incorporated in 1932.
It manufactures molasses and sugar at Gopalganj in Bihar.Vishnu Sugar Mills Ltd
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Key sectors – Tourism … (1/2)
The state has a rich cultural heritage as it is associated withpilgrimages and historical monuments related to religious gurus suchas the Buddha, Mahavir and Guru Gobind Singh. Tourism in the staterevolves around Buddhism (Bodhgaya, Rajgir, Nalanda), Jainism(Bisram, Mandar hill, Champanagar) and Sufism.
The state Government has established the Bihar State TourismDevelopment Corporation with the prime objective of developinghotels, transports, railways, swimming pools, health tourism, etc. andrunning them on a commercial basis for the benefit of tourists.
The Government has planned two mega religious tourism circuits(Buddhism and Jainism), two mega theme parks based on the life ofBuddha and Mahavir (to be constructed at Bodh Gaya and Rajgir)and eight mega centres for educational, cultural and religious tourism[Bodh Gaya, Rajgir, Patna city, Vaishali, Nalanda, Vikramasila, AshokDham, Yoga Sansthan (Munger)].
In 2019, foreign tourist arrival reached 1.093 million and domestictourist stood at 33.99 million.
Source: Ministry of Tourism, Government of Bihar
Arrival of foreign tourists in Bihar (in million)
1.01
1.08 1.
09 1.09
0.96
0.98
1.00
1.02
1.04
1.06
1.08
1.10
2016
2017
2018
2019
Note: P - Provisional, *- till September 2019
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Key sectors – Tourism … (2/2)
Goals and actions set up by the Bihar State Council under the Bihar@2022 vision document for improving the tourism sector are as follows:
Source: Ministry of Tourism, Government of Bihar
Goals to achieve by 2022
Construction of 2 mega religious tourism circuits of Buddhism and Jainism
Construction of 2 mega theme parks based on the lives of Buddha and Mahavir at Rajgir and Bodh Gaya
Construction of 8 mega centres for religious, educational and cultural education at Bodh Gaya, Patna, Rajgir, Vaishali, Ashok Dham, Nalanda, Vikramasila, Yoga Sansthana and Munger
By 2022, the state is targeting 100 lakh Indian and foreign tourists every year
Action points
Establishment of schools within a 1 km radius of every habitation in order to increase access to schools irrespective of the capacity to pay.
Fast track upgradation of the infrastructure of state schools and ensuring availability of sufficient teachers
Policy initiatives and awareness campaigns in order to ensure higher enrolment and zero dropout
Establishment of centres of excellence in all primary schools in rural areas.
Improvement of hygiene in schools and colleges
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Single-window approval mechanism
Bihar Single Window Clearance Act, 2006 and the Bihar Industrial Incentive Policy, 2011, promote industrial growth by giving rapid clearances,issuing licenses and certificates and providing an overall investor-friendly environment in the state.
The industries department of the state and the DIC act as nodal agencies for investments.
Proposals for investments greater than US$ 21.7 million are routed through the Chief Minister and the cabinet for approval.
The state has an online Common Application Form (CAF) and single window clearance system in place, which guarantee 30 days clearance to allinvestment proposals submitted to the State Promotion Board is guaranteed by Bihar Industrial Investment Promotion Act, 2016.
Investment handled Body Chairman Nodal agency
US$ 2.17 million to US$ 21.7 million
State-Level Investment Promotion Board
Industries Development Commissioner
Industries Development (Udyog Mitra)
Below US$ 2.17 million District-Level Committee District Collector DIC
DIC - District Industries Centre
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Contact list … (1/2)
Agency Contact information
Industries Department, Government of Bihar
Vikas BhawanBailey Road, Patna - 800 001, Bihar.Phone: 91-612-2215 211Fax: 91-612-2217 991Website: http://industries.bih.nic.in
District Industry Centre (DIC)District Industries Centre, PatnaPhone - 0612-2270865Fax: 0612-2218900
Bihar Industrial Area Development Authority (BIADA)
1st Floor, Udyog Bhawan, East Gandhi Maidan, Patna - 800 004, Bihar Phone: 91-612-2675 991, 2675 002, 2675 352Fax: 91-612-2675 889E-mail: [email protected]: http:///www.biadabihar.in
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Contact list … (2/2)
Agency Contact information
- Bihar State Finance Corporation
Fraser Road, Patna - 800 001, BiharPhone: 91-612-2332 785E-mail: [email protected]: http://bsfc.bih.nic.in
Bihar State Electricity Board (BSEB)
Vidyut Bhawan, Bailey Road, Patna - 800 001, Bihar.Phone: 91-0612-2504 036Fax: 91-0612-2504 968Website: http://www.bspcb.bih.nic.in/
Bihar State Pollution Control Board
Beltron Bhawan, Shastri NagarJawahar Lal Nehru Marg, Patna - 800 023, BiharPhone: 91-0612-2281 250 Fax: 91-0612-2281 050 Email: [email protected]: http://bspcb.bih.nic.in
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Key approvals required
Approvals and clearances required Departments to be consulted Estimated time taken (days)
Revenue and Land Reforms Department, Government of Bihar
Registrar of Companies
Nodal Agency (Industries Department)
Bihar Industrial Area Development Authority
Offices of Inspector of Factories, Inspector of Boilers
Bihar State Pollution Control Board and Ministry of Environment and
Forests, Government of Bihar
Urban Development and Housing Department, Government of Bihar
Bihar State Electricity Board
Water Resources Department, Government of Bihar
State Fire Service Headquarters, Government of Bihar
Sales Tax Department, Central and State Excise Departments
NA
NA
Seven to 21 days (up to 90 days for acquisition of non-industrial land)
30 days (45 days for conversion of non-industrial land for use)
Up to 120 days
60 days
Seven days
Up to 30 days
Up to 30 days
Up to 15 days
Seven days
Registration, Industrial Entrepreneurs Memorandum (IEM), Industrial Licenses
Incorporation of the company
Allotment of land
Permission for land use
Registration under Factories Act and Boilers Act
Site environmental approval, no objection certificate and consent under Water and Pollution Control Acts
Approval of construction activity and building plan
Sanction of power
Sanction of water
Fire service clearance
Registration under state’s Sales Tax Act, and Central and State Excise Act
NA: Not Available
40
Cost of doing business in Bihar
Cost parameter Cost estimate Source
Industrial land (per acre), as of January 2017 US$ 1,715,111 in Patliputra, US$ 252,222 in Muzaffarpur Bihar Industrial Area Development Authority
Labour (minimum wages per day) US$ 2.3 to US$ 5.7 Ministry of Labour and Employment, Government of India
Office space rent (per sq ft per month) US 50 cents to US$ 1.2 Industry sources
Residential rent (2,000 sq ft per month) US$ 175 to US$ 350 Industry sources
Five-star hotel room (per night) US$ 100-200 Leading hotels in the state
Commercial and industrial electricity (per kwh) Industrial: US 10.3 cents to US 11.1 centsCommercial: US 9.8 cents to US 11.2 cents Bihar State Electricity Board
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State acts, policies and incentives … (1/2)
Bihar Agriculture Investment Policy 2020• To encourage investments in the agriculture sector.• To attract investments for agro-based industries in the state.1Bihar Wood-based Industries Investment Promotion Policy, 2020 • To promote investments in wood-based industries in Bihar through financial
assistance.• To upgrade technology, reduce wastage, enable value-added storage and promote
exports to boost development in the industry.• To provide financial assistance to industries.• To upgrade the skill levels of artisans by equipping them with modern and efficient
tools.
2
Amendment 2020 in Bihar Industrial Investment Promotion Policy-2016Any unit investing >Rs. 25 lakhs OR providing employment to 25 workers/persons will be eligible to apply under this policy.3Special Land Allotment and Amnesty Policy, 2020To attract industrial plots in relation to availability of land at attractive prices and easier terms.4Saat Nishchay Part-2In December 2020, the Bihar government approved a proposal to provide free coronavirus vaccines to all citizens in the state.5
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State acts, policies and incentives … (2/2)
Investment subsidies for NRIs• The state Government has offered incentive packages in the form of various tax concessions,
capital and interest subsidies, reduced power tariffs, etc. to attract foreign funds in the region.6Incentives for NRIs• Bihar Foundation organized a two-day global meet of Non-Resident Bihari's on 18-19 February 2012
with an aim to attract NRBs from across the world so that they can share their views on the state and its development. NRIs from Bihar who have been successful in their respective fields were invited to the event to share their experiences.
7Availability of finance for NRIs
• The Government is taking steps to provide adequate facilities to enable NRIs to start small scale industries in the state.8
9
10
Incentives for new investments in plant and machinery• Companies investing US$ 18.7 million or more in plant and machinery during the period from 1 April
2013 to 31 March 2015 would be entitled to deduct an investment allowance of 15% of the investment.• Incentives to semiconductor wafer fabrication manufacturing facilities including zero customs duty for
plant and machinery
Incentives for waste to energy projects• The Government would provide low interest-bearing fund from the National Clean Energy Fund
to IREDA to lend to viable renewable energy projects. ‘Generation-based incentive’ has been reintroduced for wind energy projects and a sum of US$ 150 million has been allocated for this purpose.
44
Sources
Data Sources
GSDP (state) Directorate of Economics and Statistics of Bihar, Central Statistics Office
Per capita GSDP figures Directorate of Economics and Statistics of Bihar, Central Statistics Office
GSDP (India) Directorate of Economics and Statistics of Bihar, Central Statistics Office
Installed power capacity (MW) Central Electricity Authority
Wireless subscribers (No) Telecom Regulatory Authority of India
Internet subscribers (Mn) Telecom Regulatory Authority of India
National highway length (km) NHAI and Roads and Building Department
Airports (No) Airports Authority of India
Literacy rate (%) Census 2011
Birth rate (per 1,000 population) SRS Bulletin
Cumulative FDI equity inflows (US$ billion) Department for Promotion of Industry and Internal Trade
Operational PPP projects (No) DEA, Ministry of Finance, Government of India
PPP projects under construction (no) DEA, Ministry of Finance, Government of India
45
Exchange Rates
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year Rs. Equivalent of one US$
2004-05 44.95
2005-06 44.28
2006-07 45.29
2007-08 40.24
2008-09 45.91
2009-10 47.42
2010-11 45.58
2011-12 47.95
2012-13 54.45
2013-14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
2018-19 69.89
2019-20 70.49
2020-21 72.59
Source: Reserve Bank of India, Average for the yearNote: As of February 2021
Year Rs. Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
2018 68.36
2019 69.89
2020 74.18
2021* 73.69
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