BIHAR

COMPILED BY:

NAME ROLL NO.

SAM ALLWYN 1004
DEEPA DATTANI 1017
TANUSH KAGNE 1041
HETAL KATIRA 1043
NIDA KHAN 1044
 STATE PROFILE
Bihar is located in the eastern part of the country. It is an entirely land-
locked state, although the outlet to the sea through the port of Kolkata is not
far away. Bihar lies mid-way between the humid West Bengal in the east
and the sub humid Uttar Pradesh in the west which provides it with a
transitional position in respect of climate, economy and culture.

Bihar is India’s third most populated state, and more than half the people
live below the poverty line. For many years the state has been immobilized
by an obdurate caste system and linked political corruption, and many have
little or no access to that essential provision: a consistent energy service.

It is bounded by Nepal in the north and by newly formed Jharkhand State in

the south. The river Ganga, cutting straight across Bihar from west to east
has rendered the region fertile and plentiful. Bihar, is the 12th largest state
in terms of geographical size and 3rd largest by population, has close to 85
per cent rural population. Bihar has been a great religious centre for Hindus,
Jains and most importantly, the Buddhists.

Patna its capital city today, Patliputra in those times was home to one of the
greatest monarchs in the history of the world who ruled over much of the
Indian - Subcontinent and extended as far as Iran and Afghanistan to the
West.
 BIHAR STATISTICS

State capital Patna

Chief Minister Nitish Kumar
Area 94,163.00 sq. kms
Area under forests 30078.03 sq km
Population (2001) 8,28,78,796
Population density 880 per sq km
Male population 4,31,53,964
Female population 3,97,24,832
Sex ratio 921
Literacy rate 47.53%
No. of districts 38
No. of towns 130
Largest city Patna
Languages spoken Hindi, Urdu, Bhojpuri, Magahi, Maithili
Literacy rate 66.60%
Per Capita Income (03-
Rs 21696
04)
Temperature Min. 5 °C; Max. 45 °C
Average Rainfall 1200 mm

BIHAR ECONOMY

The economy of Bihar is largely service orientated, but it also has a

significant agricultural base. The state also has a small industrial sector. As
of today, agriculture accounts for 35%, industry 9% and service 55% of the
economy of the state.
The state has a per capita income of $148 a year against India's average of
$997 and 30.6% of the state's population lives below the poverty line
against India's average of 22.15%. However, Bihar's GSDP grew by 18%
over the period 2006-2007, which was higher than in the past 10 years.

The economy of Bihar is largely service oriented, but it also has a significant
agricultural base. The state also has a small industrial sector. As of 2008,
agriculture accounted for 35%, industry 9% and service 55% of the
economy of the state. Manufacturing sector performed very poorly in the
state between 2002–2006, with an average growth rate of 0.38% compared
to India's 7.8%. 

Bihar was the lowest GDP per capita in India, although there are pockets of
higher than the average per capita income. Between 1999 and 2008, GDP
grew by 5.1% a year, which was below the Indian average of 7.3%. More
recently, Bihar's state GDP recorded a growth of 18% between 2006–2007,
and stood at 94251 Crores Rupees. This makes Bihar the fastest growing
major state. In actual terms, Bihar state GDP is ranked 2nd out of 28 states.

Corruption is an import hurdle for the government to overcome according to

Transparency International India, which highlighted Bihar as the Union's
most corrupt state in a 2005 report. Despite the recent economic gains,
significant challenges remain and the government has also stated that
combating corruption is now the biggest challenge the administration is
faced with . The state's debt was estimated at 77% of GDP by 2007. The
Finance Ministry has given top priority to create investment opportunities for
big industrial houses like Reliance. Further developments have taken place
in the growth of small industries, improvements in IT infrastructure, the new
software park in Patna, and the completion of the expressway from the
Purvanchal border through Bihar to Jharkhand. 

Since the start of 2009, Bihar’s growth rate was one of those rare state-level
economic variables hotly debated and discussed throughout the country.

Reports of Bihar being the fastest growing state in the country made every
one sit up. Despite many academics and journalists poring over its
economic data, consensus on its true growth rate has yet to be reached.
And given that state-wise economic growth data tends to get reconciled with
a lag of two years, consensus is elusive.

A cursory look at Bihar’s growth figures over the last decade explains why
they lend themselves to such varied interpretations and analysis. Not only
has the yearly growth rate swung wildly every year, the data also gets
revised from the initial estimates. The initial estimates for 2007-08 and
2008-09 were nowhere near the final figures (see graph). As a result, the
analysis on Bihar’s economy and Nitish Kumar’s rule could change between
February and March (when the last state economic survey was released)
since Bihar no longer grew at 6.35 percent — it grew at a more remarkable
10.74 percent.  

Given the volatile characteristic of growth data, observers like Shaibal

Gupta of the Patna-based Asia Development Research Institute feel that
Bihar’s economic growth has yet to stabilise and as such, it is too early to
comment based on the growth data alone.

 Praveen Jha, professor of economics at the Jawaharlal Nehru University

stops short of saying that the figures are fudged. “The volatility is simply
inexplicable. In fact, a committee led by state cabinet minister, Jagdanand
Singh, during the last year of RJD (Lalu Prasad’s party) rule concluded that
the data collected within the state is not reliable,” points out Jha, who has
done a detailed analysis of Bihar’s growth rate.

A look at Gujarat, which is close to two and half times Bihar’s economy and
is seen by many as the fastest growing state in the country today, reveals a
crucial difference. While the growth rate in Gujarat may occasionally
decelerate from one year to another, it never registers negative growth or an
actual decline in the state GDP. Bihar, on the other hand, is habituated to
going two steps forward and one step back. Arresting this tendency could
just be the key thing that Nitish Kumar needs to focus on in his second term.
 ONCE UPON A TIME IN BIHAR …….NOW…..

The IMF very recently revised the outlook of the world economic growth
along with the other countries that will cilluminate the growth of the world
GDP. The fund raised its 2010 global output forecast to 4.6% from 4.2% in
April's review of the global economy, but kept its 2011 view unchanged at
4.3%. Similarly for India the growth rate was pegged at 9.5% for the year
2010. The IMF hiked its growth projection from the earlier estimate of 8.8%
it made in April. GDP growth forecasts for Asia have been revised upward
for 2010, from about 7% in the April WEO (World Economic Outlook) to
about 7.5%Even our finance minister have raised the growth rate of Indian
GDP to 9%.If Indian economy goes according to the estimated figures one
can then imagine the growth one will find on the business street of India.

We all know that world GDP will grow when India and other Asian countries
(China, India, Indonesia)  will participate as the western world is struggling
to keep its head up. Likewise did we ever went for a thought that from where
the Indian economy will get its growth rate of 9.5% or 9% as addressed by
the powerful finance heads. It means which states will bring the growth of
9.5% for India likewise the cilluminate growth of the world GDP.

Once up on a time Bihar used called as naam hi kaafi hai". Actually, the
name itself is good enough to infuse good amount of terror and insecurity
amongst the majority. Screwed up law and order, politically incorrect
education system, a state more owned than run by shrewd politicians good
enough to feed fodder amounting more than you can earn in your 7 lives,
Bihar the name that makes every one count the nights and days of terror of
living an normal life.

After SHRI LALOO PARSAD YADAV became the minister of railway Bihar
still was under the threat of dacoit and air of other crimes. Each time he
flagged off a new train in Bihar the brass of the Government Railway Police
(GRP) anticipated more trouble. The anxiety kept of climbing higher and
higher. The trains passing through Bihar have witnessed 963 incidents of
dacoity and looting (439 dacoities and 524 lootings) in the last eight years.
This boils down roughly to at least one train robbery every third day. Add to
this 506 murders, over 6,000 burglaries, more than 850 cases of drugging
and overall 20,000 cognizable offences committed on running trains during
this period. The conclusion: more than seven crimes take place everyday on
trains passing through Bihar.

One will be shocked to read all these statistics and imagining the quantum
of terror one have witnessed particularly who lived in the state. All the above
statistics make one thing clear about the healthy condition of the law and
enforcement within the state circle. In fact Indian railways did not earn so
much as compared to the dacoits who did the robbery and other practices
on the trains passing in an around Bihar. This is the Bihar called out before
20 years back. This might be called as ONCE UPON A TIME IN BIHAR.

After the emergence of the Jharkhand, Chhattisgarh and the New Bihar one
will be compelled to say in real terms ONCE UPON A TIME IN BIHAR
……………. NOW……..

The recent developments in Chhattisgarh have changed the status and

outlook of the globalised world as a new invented state. Today it is one the
top ladder of investments and the growth imagined, not by the Indian
corporate but by the global giants sitting across the world. In fact Jharkhand
and Chhattisgarh and the New Bihar is witnessing the turn around of its
fortunes once the legal system became under real control of peace. The
recent data by CSO indicates that from 2004-05 to 2008-09, Bihar on an
average grew by a staggering 11.03% annually, almost neck to neck with
India's fastest growing state. States like Bihar, Jharkhand and Chhattisgarh
which were ranked once upon a time as poor have now being crowned with
growth rate of 11%, 8.5% and 7.5% respectively. This is not the pride of a
state it's the pride of Indian that once upon time these states were avoided
form any important discussion tables are now on the top of the table. One
might say the growth of these states is very low as compared to the other
states of India's. I must argue that any thing which comes out from the dark
is positive. If India need to achieve the growth rate of 9.5% then these
states needs to come up with flying growth numbers to amplify the growth of
India.
If we look at some of the investments and growth dreamt by the Indian and
global corporate for these three states we will find some proud making
stories and the invisible growth and foresight of ONCE UPON A TIME IN
BIHAR.

Big names like Vedanta Resources, Tata Steel, Mesco Steel and Bhushan
Steel are all set to invest more than Rs.40,000 crore in these three states.
All these might sound as foreseeable future activities . But some statistic will
make you see clearly the real growth.

As per a study by ASSOCHAM ECO PULSE on "States Performance in Per

Capita Income Growth" – Jharkhand's per capita income grew to Rs.14,990
(16.6% growth), Orissa to Rs.14,795 (11.5% growth) and Chhattisgarh to
Rs.16,365 (8.8% growth).these numbers reveals the financial discipline
being applied and followed in these three states. Their is balance being
played in all corners of these states which makes these states to generate
growth and attracting investments. One example of financial discipline being
followed is that foreign travel has been banned to avoid unnecessary
expenditures.

The Bihar Chief Minister Nitish Kumar has recently said, Love for Hindi does
not necessarily mean to oppose English. English cannot be ignored.
However, English could not be made compulsory language in schools, but
all facilities should be made available to students to learn and read
English. After almost four decades, Bihar has woken up to English
education in the state, making English a compulsory subject in Board
Examinations from the commencement of the academic session 2010. The
Government of Bihar has taken the initiative to hone the spoken English
skills of the government high school teachers  and thereby their students in
the state to keep pace with the time.  This will change the upcoming new
generation of Bihar. After a decade Bihar will be having equal quality
students with skilled force to tackle the corporate jungles of India and global
too.
Adequate steps have been implemented to stop reckless expenditure in
administrative departments in these states. Expenditures are planned in
such a way that where only guarantee growth of these State's GDP and
improvement in productivity is achieved.

So now it can be said that I am proud to be from the state of Bihar and
being a Bihari  I feel more pride. In fact in the coming days I might get more
things to fill up the gap of ONCE UPON A TIME IN BIHAR………
NOW………

BIHAR AT GLANCE

Sr. No. Indicators State National

1. Share of Agriculture in GDP 39.0 24.3

2. Rural Population (%) 89.5 72.2

3. Work force participation rate (%) 77.3 63.9

4. Population Density (Persons/Sq. Km.) 880 324

 SWOT ANALYSIS OF BIHAR
STRENGTH
 Great cultural and historical
legacy.
 Rich heritage and great
potential for tourism
 Cultural artifacts and global
appeal of its legacy.
 Diligent, smart and
intelligent and competent
human capital.
 Highly passionate, young
dynamic, never say die attitude
gives Biharis the winning edge.
 Global presence of Bihari
Diaspora across the globe and
great support groups of NRB’s.
Biharis are highly successful in
all walks of life.
OPPORTUNITIES
 High credit ratios and
untapped human capital, if
utilized in Bihar it can change
the fortune of the state.
 Global Tourism potential as
it is known as the Land of
Bhuddha and Ashoka
 Highly fertile land and
WEAKNESS
 Lack of proper infrastructure
like power, road and health
services.
 Low employment
opportunities and heavy
dependence on agrarian sector.
 High rate of crime , violence
and governance issues.
 Negative bias of media and
lack of support from all quarters.
 Society divided on the basis
of caste, region and feudal
mindset.
 Casual approach towards the
Brand Bihar ,self serving bias
due to which Biharis fail to act
collectively for the cause of state.
THREAT
 Social division and political
intervention in every sphere of
society
 Negative bias of media and
history of neglect
 Law and order situation and
Kidnapping menace.
 Huge number of dependent
 organized agricultural sector, if population as compared with
used till the optimum level can other states.
boost up the state.
 Unlike other states with
 High expectations and similar problems Bihar has been
dependence on government slow to respond to external and
institution for bringing up internal challenges
change.

SWOT ANALYSIS ON TRADE & COMMERECE OF

BIHAR

Strengths: -
1. Huge manpower of all types - laborers, engineers, CA/CSs, Lawyers,
MBAs, IASs, IPSs and forget not politicians if they are on good minds etc.

2.  Agricultural Land - Bihar has extensive cultivable land fertile enough to

grow all seasoned crops. Even cash crops like jute and sugarcane are
grown. Fruits and vegetables are exported. 

Weaknesses:
1. Corruption: Corruption at all levels, political, bureaucratic, social and at
individual level.

2. Social Divisions: Social divisions in the form of casts, subcaste and

religion.
3.  Lack of Minerals/Natural Resource: Bihar is not very rich in minerals
which are a major factors for many states for their development.

4. Poor Infrastructure: Infrastructure like roads, railways and

communications play a vital role setting up of industries, urbanization,
employment etc.

5. Lack of Industries

6. Public Vulnerability: Public of Bihar is so Bhola Bhala that they are always

taken for granted and a good ride as well by the shrewed politicians and
political parties. Once the public becomes wiser all the problems will be
solved.

 
 Opportunities:
 1. River Ganga: river Ganga is the life line for Bihar and it can prove to be
the blood of Bihar if it is economically exploited. The other rivers along with
the dams and barrages can be the source for several industries and water
related factories.Thermal power, mineral water plants, textiles and tourism
as well can be developed harnessing/ utilizing river water.

2. Skilled Workers: As discussed above.

3. Industrialization: Once industries start cropping up in Bihar things will

automatically change and several opportunities will come up like
employment, economic growth, market growth and a chain of development.

4. Fisheries: Bihar has a lot of scope for Fisheries Sector. This can prove to
be the one of the most flourishing business opportunities. Export
opportunities a re very good in fish cultivation.

5. Tourism:  Bodh Gaya, Nalanda, Patna, Vikramshila etc. can be

developed as tourist places. If rivers and rivulates can be well
captured/harnessed then Bihar has lots of opportunities for tourism sector.

6. Agriculture: Needless to say. Yes other than staple crops, if the

government and Private-Public Partnership(PPP) join hands and work
together for development and cultivation of Cash crops, fruits, herbs,
sugarcane et. it will be no less than Punjab or Haryana. 

7. Textile Industry: 

 
 Threats:
1. Corruption

2. Social Divide

3. Social evils like illiteracy, poverty and unemployment.

4. Annual Flood

Bihar has a tremendous prospect to be the most developed state. If a

scholar or an economist will do the SWOT analysis he will find the Bihar can
become a "Cash Cow" in no sooner time if politics is corrected.

INDUSTRIAL INCENTIVE POLICY

SUBJECT: INCENTIVE POLICY-2006 FOR ACCELERATED

INDUSTRIAL GROWTH OF THE STATE.

Today there is a requirement to provide a new industrialized shape full of

industries to Bihar State. There is a need to establish new industries and to
revive the sick and closed units of the state. For this purpose favorable
environment should be created to attract the investors of state and from
abroad. In this connection the Industrial Policy - 2003 has been reviewed.
After reviewing the policy, a decision has been taken to prepare a new
industrial policy in the present circumstances so that there may be a
balanced industrial growth in the state. In the light of the aforesaid facts a
new Industrial Incentive Policy - 2006 has been
prepared in consultation with Bihar Industries Association, Bihar Chamber of
Commerce, Confederation of Indian Industry and all concerned Government
Departments. In the preparation of this policy the Industrial policies of
different states have been kept in view. Under this Industrial Incentive
Policy- 2006 there are provisions for granting preproduction incentive of
subsidy /exemption from stamp duty and registration fee and post
production incentive of grant/exemption for preparation of project reports,
purchase of land/shed, technical know-how, captive power generation/diesel
generating set, quality certificate. Vat, luxury tax, electricity duty, conversion
fee, market fee etc. With the implementation of this Industrial Incentive
Policy- 2006, it is expected that there will be growth in the per capita income
of the state and industrial growth as well as accelerated employment
opportunities.

1.2 STRATEGY

(i) To create favorable circumstances in order to establish industries in the

State so that among the investors, there may be positive communication.
(ii) Bihar Single Window Clearance Act - 2006 -
To promote all round development of the state and industrial growth rapid
clearance procedures for establishing industries, to issue license and
certificates, to provide a congenial atmosphere to the investors of Bihar
state and in this regard and for other concerned subjects Bihar Single
Window Clearance Act - 2006 has been enacted.
(iii) Bihar Infrastructure Development Enabling Act- 2006 –
To provide for rapid development of physical and social infrastructure in the
State and to attract private sector participation and to provide for
acomprehensive legislation for designing, financing, construction, operation,
maintenance of infrastructure projects, so that administrative and procedural
delays are reduced, for identifying generic project risks, Bihar Infrastructure
Development Enabling Act, 2006 has been enacted.
(iv) In order to simplify the inspection of factories, provision of self-
certification will be made.
(v) Industrial growth is adversely affected due to the complicated labour
laws. Such labour laws will be made simple and development oriented.
(vi) Human resources will be developed in such a way, which can promote
and create industrialization of high degree. Besides existing different
institutions will be strengthened to improve skill.
(vii) Land Bank- To meet the requirement of land for industries and
development schemes, Land Bank will be established in the state. By this
Bank, Land will be made available according to the requirements to different
industries and for development schemes.
(viii) Marketing arrangements will be made for small, tiny, cottage industries,
handloom and handicraft.
(ix) For the creation of the basic facilities of international level, to enhance
capital investment in the industrial areas and invite the private sector for
investment and to encourage public private partnership for this purpose.
(x) Development of Infrastructure.
(xi) In order to revive sick units, to identify such units and to suggest
necessary remedial measures and to prevent sickness by developing a
district level monitoring system.
(xii) To develop handicraft, handloom, khadi, silk and village industries.

Incentives/exemption facilities for Industries in Bihar to accelerate

Industrial development and to attract investments.

1. PRE - PRODUCTION INCENTIVES

Stamp duty and Registration fee:

Tiny, small, medium and large scale industries which are to be established
in the industrial area / shed and outside the area of the Authority will enjoy
the full (100%) exemption in stamp duty and registration fee in lease / sale /
transfer. This facility will be granted only for the first time and thereafter will
not be granted.

2. POST-PRODUCTION INCENTIVES

(i) Project- Report Incentive:

Reimbursement of the cost incurred in the project report preparation by the

industrial units at the rate of 50% subject to a maximum of Rs.75,000/- will
be made available provided, the project report is prepared by any of the
firms recognised by the Industry Department. The reimbursement will be
made to the unit after commencement of the production.
(ii) Incentive granted on land/Shed:

The Industrial Units located in Bihar Industrial Area Development Authority /

Export Promotion Industrial Park / Food Park / Agri Export Zone would be
eligible for the following incentive / subsidy. These facilities / concession to
the industrial units will be made available only after the commencement of
production.
1. Small/Tiny units/Financial Limit. 50% or 7.50 lacs
(Maximum)
2. All large/medium/mega units/Financial Units 25% or 15 lacs
(Maximum)
(iii) Financial assistance for Technical-know-how:
If an entrepreneur obtains Technical Know-how from any recognised
National research center / laboratory or institution to establish or to expand
his industry, he will be reimbursed 30% (maximum Rs. 15.00 lacks) of the
fee paid to the institution/organization for the technical know-how. This
facility will be provided to the unit after commencement of production.
(iv) Incentive Grant for capital investment on Captive Power
Generation/Diesel Generating Set:
50% (Fifty percent) of the amount Spent on plant and machinery in the
establishment of Captive Power Generation/Diesel Generating set will be
granted to the industry. No upper limit for this amount has been fixed. This
facility will be made available after the unit comes into production.
(v) New industrial units will be granted relief from payment of electricity duty
under the Bihar Electricity Duty Act, 1948 for the generation and for own
consumption of electricity from D.G. Set and Captive Power Units.
(vi) Subsidy / Incentive on VAT:
This facility will be available to Small / large / medium industries. The
industrial unit will get a passbook from the State Government in which the
details of the tax paid under Bihar VAT would be entered and verified by the
commercial Taxes Department in the form prescribed. The Director,
Industries will be authorised to pay the incentive amount on the basis of the
verification. The new Units will avail 80% reimbursement against the
admitted VAT
amount deposited in the account of the Government, for a period of ten
years. The maximum Subsidy amount is payable 300% of the capital
Invested.
Clarification: The incentive would not be payable on the amounts imposed
as penalty and the difference of amount between tax assessed and
accepted under the Central Sales Tax/Bihar Value Added Tax Act, 2005
and Bihar Entry Tax Act.
(vii) Zero VAT:
Zero VAT means the production of items, which do not attract VAT. Such
units which produce items attracting zero Vat and Pay income tax would be
eligible for incentive upto a maximum utilization of 70% of the installed
capacity (maximum limit) as per para (vi) above. Incentive will be payable
after the inspection/recommendation by a committee constituted under the
chairmanship of the Director Industries on the basis of inspection and
recommendation by technical officer of the Department.

(viii) Besides aforesaid subsidy / concessions, the following exemptions will

be
provided:
a. 100% exemption for seven years in luxury tax for seven years
b. 100% exemption in electricity duty for seven years.
c. 100% exemption in conversion charge.
d. 100% exemption in market Fee for seven years.
(ix) Facilities granted for the units working under adverse situation:
Such working units which have been working under adverse situation for
years will be reimbursed 25 percent of the deposited VAT amount in the
account of state government against admitted VAT amount. This
reimbursement will be admissible for five years continuously.
(x) Industrial Rehabilitation Fund:
In order to revive the sick and closed industry, with the co-operation of the
Commercial Banks, the State Government and Bihar Industry Association, a
corpus fund will be created.
(xi) S.C / S.T / Women / Handicapped:
a. Under this category, entrepreneurs will avail 5% additional
grant/exemption/subsidy than the limit fixed under this policy.
b. Up to a turnover limit of Rs.30 lakhs per annum S.C / S.T. / Women /
Handicapped category entrepreneurs who run small and tiny industries will
avail 100% subsidy of the deposited amount in the account of Government
in the form of VAT for a period of ten years.
(xii) Exemption from AMG / MMG:
Working units at present and new units will avail exemption from AMG /
MMG from the date of declaration of the New Industrial Policy. This facility
will be granted for five years.
(xiii) Central Sales Tax (CST):
Only 1% CST will be payable on the items produced by the registered small
and medium units in Bihar.

3. INDUSTRIAL SICKNESS:

3.1 Rehabilitation of Sick Units

Industrial sickness is a part of the process of industrialization. It leads to

unemployment, blockage of capital, loss of state revenue and non-utilisation
of assets. Hence it is necessary to take proper steps in order to rehabilitate
the sickindustries. As such govt. is concerned about this and would take the
following steps to stem sickness and revive sick industries.

3.2 Small Sector

(i) State Level Committee: For the rehabilitation of small industry a State
Level Committee under the chairmanship of Director of Industries will be
constituted. Its members comprise representatives from the banks, financial
institutions, Reserve Bank of India, Industries Association, experts and
Government.
(ii) The above committee would be empowered with necessary statutory
powers in order to rehabilitate the sick industry so that approved
rehabilitation package may be implemented effectively.
(iii) The guidelines of the Reserve Bank of India / IDBI / SIDBI would be
relied upon to identify sickness in sick and small units. Appropriate
rehabilitation package would be approved for their rehabilitation.
(iv) The sick industries being revived will not require sickness certificate on
an annual basis, instead the revival package shall specify the period of
revival of sick units.
(v) The industry declared sick by the State Level Committee would be
eligible to receive reliefs and concessions from banks and financial
institution as per instructions of RBI. These concessions and reliefs will be
considered to be given within a definite time frame.
(vi) After the identification of sickness within a prescribed time frame the
rehabilitation package would be prepared and the state level institutions
would monitor the sick industries and their rehabilitation.
(vii) Those sick and closed units which have availed the benefits of any
Industrial Policy in the past can avail even second time the facilities under
this policy. If any sick or closed unit wants to avail the benefits under the
Industrial Policy for the second time it will avail only the difference between
the prior availed amount and the proposed amount under new policy. But
this facility for rehabilitation to the unit will be made available
only on the recommendation of the concerned committee constituted by the
State Government. Such facility to the unit can be made available maximum
of two times only.

(viii) Facility provided to the sick and closed units:

Exemptions from Annual Minimum Guarantee (AMG), Monthly
Minimum Guarantee (MMG) and Delayed Payment Surcharge (DPS) would
be available to the unit from the date of declaration of the unit as a sick unit.
This facility would be admissible for a period of five years.
3.3 Sickness in Medium and Large Industries:
(i) A committee would be constituted under the chairmanship of Secretary
Industry to explore the possibility and determine remedies for the revival of
medium and large scale industries and Public Sector Undertakings (PSUS)
which are sick and not referred to the BIFR and have a potential for revival.
The recommendations of the above committee detailing the reliefs and
concessions shall be placed for approval before the highpowered
committee existing under the chairmanship of the Chief Secretary.
(ii) The rehabilitation package envisaged by BIFR /IRB I/BICICO /BSFC
/Bank and state level inter institutional committee shall be placed before the
committee under the chairmanship of the Secretary, Industry for
consideration and recommendation of Government.
(iii) Sick Industry means such industry, which has been registered by the
Board for Industrial and Financial Reconstruction (BIFR).
(iv) Decision regarding closed industrial units shall be taken by a State Level
Committee constituted under the chairmanship of Secretary Industries
Department.
(v) Those sick and closed units which have availed the benefits of any
Industrial Policy in the past can avail even second time the facilities under
this policy. If any sick or closed unit wants to avail the benefits under the
Industrial Policy for the second time it will avail only the difference between
the prior availed amount and the proposed amount under new policy. But
this facility for rehabilitation to the unit will be made available only on the
recommendation of the concerned committee constituted by the State
Government. Such facility to the unit can be made available maximum of
two times only.

(vi) Facilities to sick and closed units:

Exemption of Annual Minimum Guarantee (AMG), Monthly Minimum
Guarantee (MMG) and delayed payment surcharge to the unit will be
granted from the date of declaration of unit as a sick unit. This facility will be
available for five years.

4. FACILITIES FOR EXPANSION-DIVERSIFICATION AND

MODERNISATION OF UNIT:

Those units undergoing Expansion/Diversification/Modernisation will be

eligible for incentives, upon their incremental production as described in
Para 2.

5. INCENTIVE ON QUALITY CERTIFICATION:

75% of cost incurred in obtaining certificate of I.S.O. standard (or
equivalent) from reputed national/international level organizations, would be
reimbursed by the State Government.

6. INFORMATION TECHNOLOGY MISSION:

6.1 The State Government would launch an I.T Mission for the
development of Information Technology Industries with the
following objectives:

(i) Economic Development.

(ii) Human Resource Development
(iii) To provide simple, effective and transparent administration.
(iv) State of the Art Communication System

6.2 The State Government will provide the following relief / incentive to the
Information Technology Sector for its rapid development. It has been
observed that several rules and regulations applicable to industry need
not be required for the I.T. industry. As such, there would be a provision of
selfcertification and software units would be exempted from the following:
(i) Pollution Control Act to be effective only as per Govt. of India guidelines.
(ii) Legal Power Cuts.
(iii) Zoning Regulations in respect of location.

The following exemptions under the relevant Acts will be applicable to the
I.T industries:
(i) The I.T. Industry will be added in schedule-1 of the Bihar Shops and
Establishment Act 1953 and concessions under sections 7,8 and 12 (I) shall
be extended to it. By this the industry would be given exemption from the
provisions relating to the hours of business and weekly closure.
(ii) The hours of work for women employees would be relaxed under section
66 of the factories Act, 1948. Accordingly for I.T. establishments, Women
would be able to work between 5 Am and 10 Pm instead of 6Am to 7 Pm in
suchestablishments.
(iii) I.T industry will be provided with exemptions under section 87 of the
Employees State Insurance Act 1948.
(iv) The information Technology industry will be added as an independent
employment in the schedule of minimum wages Act 1948 so that the
workers may be classified separately.
Information Technology and Biotechnology industries established in the
state would qualify for the incentives under para-2 of the policy. All
incentives applicable to industries would also be automatically available to
I.T. and Biotechnology Industry.
The Industry Department will promote Biotechnology and Information
Technology on priority basis in industrial areas.

7. HANDLOOM SECTOR:

(i) Electricity Tariff- In view of the state powerloom to be competitive with the
power loom sector of other states, there will be a provision of electricity
grant of 75 paise per unit of in electricity tariff.
(ii) Quality power supply will be made available for powerlooms.
(iii) Workshop-cum-residence scheme for weavers- In weavers dominated
area, scheme of construction of common facility centre and in case weavers
do not have the room, land, construction of Government shed would be
implemented. All the facilities available under Cluster Development
Programme would be available to weavers. Arrangements for training under
the scheme would be made.
(iv) Establishment of Integrated Textile Park- Textile Park will be established
in the State. By this improvement and design, quality up-gradation and
assistance in marketing would be available to the weavers.
(v) Establishment of Urban Haat (market)- An Urban Haat will be
established in Patna where there will be provision for sale of the handloom
and handicraft products.
(vi) Revival of Central Processing Plants -State Government will revive the
central processing plant Biharsharif and Dye and Finishing plant,
Darbhanga. In these, the weavers may avail the facilities of dying, finishing
and processing of their products.
(vii) Reimbursement of loan due of the weavers- Scheme of reimbursement
of old loan dues and interest from weavers in the State would be
implemented.

8. IMPLEMENTATION OF RESERVATION POLICY:

Those units which comply with the Reservation Policy of the Govt. of Bihar
will be given an additional 10% over and above the fiscal incentives for
which they are eligible under this Policy.

9. MONITORING AND REVIEW:

All concerned departments and organizations would issue necessary follow

up notifications within a month to give effect to the provisions of this Policy.
This will be duly monitored by Government so that the State Government
may carry
out a mid - term review of this Policy.

10. The incentives / subsidies / relief’s outlined in this policy

shall be available to only such new industrial units which
commence commercial production within five years from
01.04.2006.

List of Industries Not Eligible For Incentives:

1. Rice Huller
2. Flour Mills (Including Besan, Dal & Chura Mills) of less than 50 TPD
Capacity.
3. Condiments (Masala & Papad) Mills
4. Confectionery (Excluding Mechanised Confectionery)
5. Preparation of Sweetmeat & Salted Snacks.
6. Bread Manufacturing (Except Mechanized Bakery)
7. Production of Ice Candy and Ice Food.
8. Manufacturing and Processing of Betel Nut.
9. Fireworks and Crackers Units
10. Coal / Coke Screening
11. Firewood and Charcoal Manufacture
12. Painting and Spray Painting Units
13. Fertilizer Mixing Plants.
14. Brick Manufacturing Units (Except Units Engaged in Manufacturing
Refractory
Bricks and Bricks from Fly Ash, Red Earth, Raw Industrial Waste Material).
15. Manufacture of Tarpaulins Made of Canvas
16. Saw Mills and Wood Sawing
17. Furniture and Wood Sawing.
18. Drilling Rings, Bore Well and Tube Well Establishing Units.
19. Tea Blending/Mixing Units.
20. Units Connected with Cutting of Raw Tobacco and Gul Related
Products and Guraku
21. Bottling and Repackaging of Drugs/Pharmaceuticals/Chemicals without
Processing and value addition (Excluding formulation and manufacturing
units)
22. Book Binding
23. Rubber Stamp Making
24. Notebook and Envelope Making.
25. Photo Copying
26. Stenciling Units
27. Processing of Stencil Papers.
28. Distilled Water Manufacturing Units.
29. Tailoring (Except Readymade Garment Manufacturing Units)
30. Sewing of Socks with Woven Cloth and their Repacking.
31. Laundry/Dry Cleaning.
32. Photography/Studio Labs.
33. Clinical/Pathological Laboratories/Nursing Homes/Clinics
34. Beauty Parlours.
35. Video Parlours
36. Goods Transport.
37. Video/Audio Cassette Recording/Watch Repairing / Vehicle Workshop
and Service Stations.
38. Lime Kilns.
39. Petrol Pumps.
40. Narcotic Drugs.
 INDUSTRIES IN BIHAR
There are many various industries in Bihar. Their main focus is on
Agriculture.

Industries like :

Agro Product Industry, Sugar Industry, Metal Industry, Software & IT

Services industry, Drug & Chemical Industry, etc

BIHAR, MOST CONGESTED TELECOM CIRCLE SAYS TRAI

Telecom Regulatory authority of India has revealed its network congestion

report for the month of January to March 2009 which quotes Bihar as the
most congested telecom circle followed by Andhra Pradesh Kolkata ,Assam,
Himachal Pradesh  and Mumbai ,among telecom operators Reliance
Telecom and idea are most congested followed by  Vodafone.

The network congestion report analysis for the month January, February
and march 2009 shows that the performance of the telecom service
providers with respect to the congestion on POI’s has dropped in the month
of March 2009 as compared with the performance in December 2008.

During this period Cellular Mobile Telephone Subscriber base has increased

from 346.89 million in December 2008 to 391.76 million in March
2009.While comparing with private operators BSNL and MTNL the number
of POIs having congestion has decreased from 35 in December 2008 to 27
in the month of March 2009.
Bihar Sugar Industry

Bihar Sugar Industry Background 

The Bihar Sugar Industry has prospered in the past few years with all
courtesy to the efforts taken by the state government for revamping the
industry. The climate of Bihar has been a conducive factor towards the
flourishing Sugar industry of Bihar. Besides providing employment to the
majority of the population in the state, it also offers facilities of transport and
communication, and assists in developing the rural areas by mobilizing the
resources in the best possible manner. Till now, there are in all 28 sugar
mills in the Bihar Sugar Industry, out which only 9 operates. The area under
sugarcane production is 2.30 lakh hectares and the state produces around
129.95 lakh M.T sugarcane. 

Why Bihar is suitable for Sugar Industry

 
The Northern Bihar is climatically apt to produce sugarcane. The inputs
used are comparatively lesser than that of other states. Obsolete equipment
and inadequate skills are the two factors which are driving towards the
closing down of many sugar mills in Bihar. Modernized plants and
equipments should be used and personnel should be retained in proper
manner. If the sugarcane and the sugar industry of Bihar is revived, then it
shall definitely generate both wealth and employment for the state. The
potential of the industry is huge. 
  Bihar per capita Income is $94,where INDIA'S per capita income is
$255.
 People live BPL(Below Poverty Line) is 46.2% against India's average
is 26.1% 
 A/c to the 5th Economic census (2005) No of people employed Bihar
Rural/Urban is 1101857 and 864699 where is India’s average Rural
and Urban is 52069351 and 48834770.
 Bihar Employment growth rate is not up to the mark, it grows 0.23%
annually(1998-2005)  

If we want to develop BIHAR than we have to attract the investor or

corporate to invest in BIHAR. Government Industrial policy should be
liberalised. Bihar is Agriculture based state so, we have pointed out some
sector /areas where BIHAR can grow.

 Agriculture
 Education
 Infrastructure
 Tourism  etc

We can work through BOT (Built Operate and Transfer) Pattern.

Government should Give priority to Agriculture Export zone, Food park,

Established Industrial Park, Set up IT Park. Through all these activities
government will increase the employability in the state.
Investment Possibilities in Bihar and Role of NRIs

Bihar is on the path of progress. The new regime in Bihar is taking

serious effort in this direction and progresses have been in almost
sectors like Infrastructures (Roads, Electricity), Primary & Higher
education and more than that progress have been made of even
modus- vivendi of common man. In my recent India visit during April-
May, 2007, I found that in buses, trains, pan shops, tea shops, hotels
and restaurants, people has started about talking about development in
Bihar and new perspectives in the changed environment. Even law &
order of the state has improved; now you can roam in Patna till late
night and other parts of Bihar also that fear has gone. Local
businessman community and educated community are now doing have
been activated to do some things for the state.

In the changed environment, Now international business community

and NRIs have golden opportunity to invest in Bihar ; Educated class of
Bihar have now better chance to look back to their motherland and start
helping people of Bihar in their own way; start giving support to local
entrepreneurs and can work for entrepreneurship development among
youths.

This article is aimed to explore those areas where NRIs /NRBs can pay
their attention. Let’s call spade and spade and differentiate between
working NRIs (NRIs who are employee of any company, organization,
R&D institute or University) and NRIs who are an employer and
businessman.

What working NRIs/NRBs/Scientists and Professors can do?

In my view, all erudite of Bihar who are working class living in different
parts of Country and abroad can have better chance in following:

1. Financial helps: they can take School and colleges for their
infrastructure development as their pilot project, they can help in
establishing R&D centers in Bihar to build working environment in the
state.
2. Help Talents and Help needy talents: Bihar is well known for
genius brains; there is no doubt about it, but what I feel that there are
big gap between rich and poor. Rich people can send their children
outside or even give beter education in Bihar but poor after certain
extent doesn’t have capability to continue their education. We all need
to help all those students. For that either they can explore individual
way or can go for society for giving their plan.
BiharBrains www.biharbrains.org has started BiharBrains Talents
search scheme where any NRIs can give their plan to help needy
talents and BB will be only the agent to executing it .
Recently some schemes have been started by BiharBrains. To name a
few, Sri (Late) Anil kumar singh yojna for needy children (for the dist of
Gaya), Janipur school yojna has already been started by the society.
This is to be noted here that this society is a platform of NRIs/NRBs and
has chapters in 18 places in India and abroad.
3. Providing consultancy for enormous opportunities in Abroad: I
do feel that the students of Bihar have less acquaintance about
opportunities in abroad. They can be very helpful in building their career
and providing guidance in abroad.
BiharBrains is the best platform for doing this activity. Here everybody
can take free online membership and help, guide those students.

What Business community/NRIs Business man can do?

Post global meet has played significant role in making new business
environment in the state. Here are the following regionwise sectors
where business community of India, particularly from Bihar who are
living in India and abroad can start their business or help others to
invest in the state.

A. Patna Region: Patna has great potential in Finance, Trade &

Commerce, Entertainment & Media, Tourism, Dairy Technology, IT and
R&D Companies where
Patna can be the best choice of investors.Patna can be the city of
education and higher learning along with center for R&D.
NRIs and business community may think about establishing R&D
centers in the field of embedded technology, nanotechnology, Bio
technology and physical sciences where Bihar has great achievers.
Recently Dept of Science & Technology has revived its Technical
education policy and made rule for private partnership program (PPP)
under which govt can give full support to any who wants to invest in
Bihar in terms of space, Bank loans and mutual partnership with govt.
This is the best time to grab this opportunity.

In Dairy Technology, Patna and Muzaffarpur have shown its potential

and this is the only industries in Bihar which has excellent track record
in terms of profits. NRIs can invest in diaries industries in Bihar.

B. Vaishali & Muzaffarpur bound areas: Hajipur can be the good

place for Tourism (Vaishali), Manufacturing Industries, and food
processing industries because of nearness from the state capital and
open space for the big industries.
In fruits exports (Litchi, Mango and Banana), both city can be
developed as center and there are large possibility of opening export –
import company in this area where investment from private sector is
required.
NRIs and Business man can try for the possibility of these industries in
this region of Bihar

C. Sitamarhi & Raxaul: Sitamarhi can be the best destination for

tourism and can attract Hindu religious people as it is the birth place of
Hindu Goddess Sita. The govt and private agencies should come
forward to develop this city and bound areas. This district is also good
in Sugar Industry. Riga Sugar Factory, near Sitamarhi is well known
which should be given more importance and revived by govt. Other non
govt agencies should come for the investment in sugar industries in this
district.
In Litchi production, Sitamarhi is second best after Muzaffarpur. Raxaul
can be developed for the international trade with India and Nepal.

D. Darbhanga: This region can be developed as good place for

floriculture and horticulture. Pan, Makhan and Machhali (fish) are three
important things for the people in Mithila region. People of whole Mithila
are known for their brilliancies since ancient times.
As whole Darbhanga, Madhubani, Saharsha and Supaul has large no
of ponds, fishery industries can be developed. There is immediate need
of Establishment of Fishery Research Institute at Darbhanga.
F. Samastipur: This dist is famous for Famous for Khaini (Tambaku)
production and Wheat. This needs to be more advertised as it is cash
crops. The establishment of sugar industry in this dist will be good
option for the investors.

G. Bhagalpur Region: Bhagalpur has great potential in Silk Industry,

Textile, Handloom & Handicraft, Gems & Jewelry, and Furniture &
Artifacts etc. This city should be popularized and advertised as “Silk city
of India” .This region is also be developed for tourism as same as
Nalanda. Vikramshila can be the good spot for the tourist.
H. Begusarai: Begusarai district in known for the industries in the field
of petroleum, chemical, petrochemical integrate complex including
upstream & downstream industry. Presently only govt has its own
industry in this field but this dist needs more investment by private
sector.

I. Purnia and Katihar Region: This dist is good in agro based industry
like Jute, Leather and allied products, animal products, fisheries,
poultry. The entrepreneurship can be developed in the youths of this
district so 38 as they can earn huge amount of Money from this sector.

J. Munger Region: can be developed Electrical & Mechanical

Hardware Industry,and Heavy Industry etc.
K. Gaya, Nalanda & all Budhist Cicuit Regions: No need to say
much about this Buddhist circuit. Because of internal terrorism this dist
has got bad name. Because of tourist attraction, there are plenty of
opportunities in hotel industry in Gaya, Rajgir, Pawauri, Nalanda, Patna,
Fatuha where much money can be earned from the foreigners. Nalanda
will be center for world tourism particularly after revival of Nalanda
University which is on full swing.
Here business opporunties are enormous where NRIs can invest and
start development process in the state.
L. Bhojpur Region: Bhojpur Region of Bihar can be developed as the
center agriculture .ifgovt pays attention; this has potential to produce
wheat and paddy as Punjab and Haryana produces.
In the above mentioned district wise investment opportunities is based
on my personal experience and after talking to many business and
educated communities of Bihar.
In a nutshell, we can say that Bihar has enormous opportunities in
Higher education & Research, Tourism and hotel industry at Tourist
spots, Agro-based industries and their export-import units, Food
processing units’ etc where Bihar can give model to the nation in
building strong India and developed nation by 2020.
All NRIs /NRBs/Business Communities can give a thought for these
sectors for investments in Bihar in a changed environment.

Transportation

Bihar has two operational airports: Lok Nayak Jayaprakash Airport, Patna,
and the Gaya Airport, Gaya. The Patna airport is connected to Delhi,
Mumbai, Kolkata, Lucknow, Bangaluru, Hyderabad, Chennai, Pune and
Ranchi.

The Patna airport is categorized as a restricted international airport, with

customs facilities to receive international chartered flights.

The Gaya Airport is an international airport connected to Colombo,

Singapore, Bangkok, Paro and more.

Bihar is well-connected by railway lines to the rest of India. Most of the

towns are interconnected, and they also are directly connected to Kolkata,
Delhi and Mumbai. Patna, Gaya, Bhagalpur, Muzaffarpur, Darbhanga,
Katihar, Barauni and Chhapra are Bihar's best-connected railway stations.

The state has a vast network of National and State highways. East-West
corridor goes through the cities of Bihar (muzaffarpur-darbhanga-purnia
NH57) 4-6 LANES.

For Buddhist pilgrims, the best option for travel to Bihar is to reach Patna or
Gaya, either by air or train, and then travel to Bodh Gaya, Nalanda, Rajgir
and Vaishali. Sarnath in Uttar Pradesh also is not very far.
The Ganges — navigable throughout the year — was the principal river
highway across the vast north Indian Gangetic plain. Vessels capable of
accommodating five hundred merchants were known to ply this river in the
ancient period; it served as a conduit for overseas trade, as goods were
carried from Pataliputra (later Patna) and Champa ( later Bhagalpur) out to
the seas and to ports in Sri Lanka and Southeast Asia. The role of Ganges
as a channel for trade was enhanced by its natural links - it embraces all the
major rivers and streams in both north and south Bihar. [115]

In recent times Inland Waterways Authority of India has declared the

Ganges between Allahabad and Haldia to be a national inland waterway
and has taken steps to restore its navigability.

CONCLUSION
Bihar has immense potential to emerge as the most industrialized state in
India. It possesses the richest mineral reserves in the country. It also is
endowed with resources such as surface and ground water, fertile land,
disciplined and skilled man power etc. with proper support from government
Bihar in coming years will grow as a major power hub which will help India
as a nation to further boost up its GDP. Government can utilize their
strength i.e. population with comprises almost around 70% of youth and
they can be employed and skill of this youth can be developed and can be
employed and utilize at cheap rate.