Jharkhand Development Report 2010

Jharkhand in its Ninth Year A Study for Prabhat Khabar November 2009 NDICUS w w w .indicus.net Indicus Analytics Pvt. Ltd. Nehru House, 2nd Floor, 4 Bahadur Shah Zafar Marg, New Delhi 110002 India Ph: +91-11-42512400 Email: indic@indicus.net 2

Contents Acknowledgement.......................................................................................................................................5 Introduction.................................................................................................................................................6 Data Qualification........................................................................................................................................8 Jharkhand – A Review..................................................................................................................................9 State Profile.............................................................................................................................................9 Section I: The Past and Future of Economic Development of Jharkhand...................................................11 Section II: A review of growth and development in the state of Jharkhand..............................................15 Section III: Jharkhand in its Ninth Year......................................................................................................21 Governance in Jharkhand......................................................................................................................21 1. Law and Order...............................................................................................................................21 2. Public Finance ...............................................................................................................................29 Price Movement................................................................................................................................35 Infrastructure.....................................................................................................................................36 B. Jharkhand as a Knowledge Economy................................................................................................44 1. Communication..............................................................................................................................44 2. Educational Institutions.................................................................................................................48 C. Socio Economic Profile .....................................................................................................................54 Demography......................................................................................................................................54 2. Workforce......................................................................................................................................57 3. Basic Necessity...............................................................................................................................59 4. Health............................................................................................................................................64 6. Agriculture.....................................................................................................................................73 .................................................................................................................................................................73 7. Investment Scenario......................................................................................................................76 3

8. Consumer markets.........................................................................................................................84 9. Fiscal Status...................................................................................................................................90 Section IV: The Districts of Jharkhand........................................................................................................96 1. Health and Civic Attainment .............................................................................................................97 2. Education...........................................................................................................................................99 3. Demography....................................................................................................................................102 4. Poverty.............................................................................................................................................104 ......................................................................................................................................................104 5. Economy..........................................................................................................................................107 6. Overall Performance of the Districts................................................................................................115 Section V: Industrial Profile of Jharkhand ...............................................................................................121 Section VI: Jharkhand’s best and worst constituencies ..........................................................................141 Section VII: Potential Cities – An evaluation............................................................................................144 Section VIII: Ranking of Eastern Zone States............................................................................................147 Section IX: Looking into the Future .........................................................................................................150 Appendix .................................................................................................................................................153 Bibliography.............................................................................................................................................161 4

Acknowledgement First and foremost we would like to acknowledge Prabhat Khabar for initiating and supporting this project for the fifth consecutive year for the people of Jharkhand. We would also like to thank Shri Harivansh ji for providing us with insightful information and vision in putting together and backing such a project. We would like to thank the eminent contributors for taking out their valuable time and sharing their thoughts about Jharkhand. Team Members Dr. Sumita kale Swati Gupta Tarrung Kapur Indicus Analytics, New Delhi indic@indicus.net November 2009 5

Introduction The passing of the Bihar Reorganization Bill gave birth to the 28 th state of the nation, Jharkhand on November 15th 2000 on the occasion of the birth anniversary of the legendary Bhagwan Birsa Munda. Jharkhand as a state is known as a vast reservoir of natural resources in terms of forest areas as well as minerals. However, in spite of this immense potential, it has not been able to utilize them properly and is thus counted among the backward states in the country. Its inheritance is considered to be one of the major reasons for this backwardness which is reflected in the development backlog over the years. The widespread unrest among the naxal community in recent times has further added to the problem. It thus puts a challenge before the state to provide good governance and to enable equitable growth and socio-economic progress. With a population size a third of Bihar and community-centered traditional ethos of tribal people, it will be relatively easier for the nascent state to pass on the benefits of growth to its citizens equally. The present study makes an attempt to analyze the strengths and weaknesses of the state, objectively using government's own data. Various aspects of Jharkhand's economy and the changes therein over time have been tracked to see the extent of progress in different indicators of growth and development. In each of the aspects, Jharkhand's status in comparison to other states has been discussed. Further, a comparative analysis of various districts of the state has also been presented. Given the importance of industries in engineering the growth of a region, a detailed profile of industries is done, identifying the largest and fastest growing industries in each district of Jharkhand. Latest available data from various government and semi-government sources have been used for this analysis. Since this study is the fifth in the series, data has been updated from the previous edition, where available. The study is divided into five sections each dealing with various issues related to development. Section I is an editorial by Dr. Laveesh Bhandari examining the present socio-economic situation of Jharkhand. The second section of the study studies the dependence of state’s economy on agriculture and the influence of NREGA especially in the year when large part of the state faced drought like situation. The third section of the study explores the quality of governance, examines knowledge and communication base as well as the socio-economic profile of Jharkhand. 6

The fourth section of the Study deals with the intra state analysis where the districts of the state are compared and ranked. The fifth section lays out the industrial profile of Jharkhand identifying the key growth drivers of industrial sector in each district of the state. The sixth section provides a comparative picture of the parliamentary constituencies in the state in terms of various socio-economic and infrastructure based parameters. The seventh section explores the potential cities of the state and finally the eighth section gives the state rankings in the eastern zones in terms of socio-economic variables. Gross domestic product and per capita income of Jharkhand vis-a-vis other states in 2020 has been discussed in the seventh section. The states, which are being considered for comparison, are in one way or the other, related to Jharkhand. We have considered the parent state of Jharkhand, Bihar, new states that were formed at the same time as Jharkhand, Chhattisgarh and Uttarakhand and the other neighbors of Jharkhand - West Bengal and Orissa. In some cases, where relevant, we have also considered states that have performed significantly well in the area being discussed. The Jharkhand Development Report is a depiction of the current scenario in Jharkhand across different socio-economic parameters, which will enable readers to understand the various elements crucial for growth and development in the state. It will also provide an indication to the policy makers to take constructive steps in those areas where the state is lagging behind. 7

Data Qualification Jharkhand was formed only eight years ago and generally the different government departments take an average of two years to release their data. Hence the data for the year 2007-08, and 2008-09 is not available more majority of the indictors. As a result, for most of the indicators, the latest data we have is for the period of 2006-07. Hence depending on the availability of the data the analysis has been done from 2001to 2006-07. Another point worth mentioning is that we have used the revised estimates rather than budgeted estimates for indicators related to expenditure incurred by the state government on various sectors like education, health etc. The revised estimates actually gives the estimates which has been revised and is thus an actual indicator of the amount of expenditure incurred on health and family welfare. The latest year for which the revised estimate is available is 2006-07. With a relatively short time span, the data shows a lot of fluctuations during this period. While analysis for these parameters is being done on the basis of this data, the trends will become clearer with passage of time and release of the data in forthcoming years. 8

Jharkhand – A Review State Profile State Jharkhand Capital Ranchi Area (sq. km.) 79,714 Population 2001 29,945,829 Density of Population per sq. km. 338 Average Annual growth rate of population 2.1 1991-2001 (%) Annual Per Capita Income 2008-09 (Rs.) Rs. 21,465 Percentage of Urban Population (%) 22.25 Literacy Rate (%), 2007-08 62.1 Number of Districts 24 Number of Towns 152 Number of Villages 32,616 Prominent Cities Ranchi, Jamshedpur, Dhanbad, Bokaro Prominent Airports Ranchi Principal Crops Maize, Rice, Wheat, Pulses Heavy Engineering, Coal Mining, Tussar Silk, Major Industries Steel, IT, Tourism Gross State Domestic Product Estimates GSDP at current prices (Rs. crore) 9

GSDP (Rs. crore) Growth (%) States 2003-04 2004-05 2005-06 2006-07 2007-08 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 4244922 5132332 5487891 6322909 6925332 11.80 20.91 6.93 15.22 9.53 Bihar 6617388 7365376 7956001 9976685 11472152 1.86 11.30 8.02 25.40 14.99 Chhattisgarh 3880209 4358904 5099884 5780640 6803595 19.42 12.34 17.00 13.35 17.70 Uttarakhand 2043878 2372001 2617194 2970934 . 10.64 16.05 10.34 13.52 . Maharashtra 34060005 38629684 43873116 50883615 59099522 13.73 13.42 13.57 15.98 16.15 Punjab 9008860 9666008 10865334 12118925 13846739 9.53 7.29 12.41 11.54 14.26 Tamil Nadu 17537080 20237357 23483693 27691723 30498868 10.89 15.40 16.04 17.92 10.14 Source: Central Statistical Organisation Note: The current series of GDP is based on the new 1999-2000 series. 10

Section I: The Past and Future of Economic Development of Jharkhand1 Soon after it was formed, Jharkhand decided to focus on all round economic development, this involved improving all three – primary, secondary and tertiary sectors. Since then there has been significant learning. Agriculture is not really growing rapidly enough, and it is evident that the state government does not have the required depth and human and financial capital to be able to finance a rapid improvement in technology and infrastructure in agriculture. The tertiary sector has a mind of its own – some services such as telecom are growing rapidly as they are in the rest of the country. The IT and other business services sectors do not like to locate very far from the major metros and therefore there is not much that the state can do there. All of this is not to say that small islands of success have not been found, we do find instances of an entrepreneur here or a farmer there who has done something out of the ordinary and shown to the people of Jharkhand and nationally, that despite many inherent disadvantages success is possible. However, these are at-best minor examples. The economic environment in Jharkhand today is not one that can enable equitable progress in all major segments of its economy, Hence large scale manufacturing that is based upon the great mineral wealth of the state appears to be one area, in which not only can significant employment be generated for the less educated and untrained, but also generate significant tax and non-tax revenues for the state government to improve infrastructure and education and health for all. And there-in the government has a major hurdle - Land. Both large scale manufacturing and mining industries need large tracts of land. And acquisition of this land is bound to displace many people from their land that their forefathers have lived in for many centuries. Moreover, mining has the potential to significantly harm the environment in the concerned area as well as a large ‘catchments’ area. On top of it, past history of land acquisition has been extremely poor, and there have been rare cases where it has occurred in a fair manner. My guess is that in 9 out of 10 cases, the owner has received significantly less than what his due was. And so there is great opposition to land acquisition; this opposition is from all sources – tribals, civil society, many political entities, and not to mention the Naxalite groups (who are exploiting this mass concern to further their own ends). The result is that, no one really believes that large scale industrialization of Jharkhand is possible in the next decade or so. And this thought is prevalent in Ranchi, as well as the economic powerhouses in Delhi and Mumbai. 1 Laveesh Bhandari, Director, Indicus Analytics Pvt Ltd 11

When the problem is large, it makes sense to break it into smaller ones and to chip away at it one at a time. Let us furst address the problem of land. Jharkhand’s total land area is almost 80,000 square kilometers (79,714 sq. km to be precise). Of this about 29% (or 24 thousand sq. km) is covered by forests and woodlands. About a quarter is cultivated, and more than a third is classified as Barren land, waste land, or fallow land. Only a very small percentage is under industry and urban areas. The point is, that industrialization and urbanization do not require too much land and are able to generate employment and incomes disproportionately higher than the quantity of land. My rouguess is that in the next 4-5 decades an less than 4000 square kilometers are required additionally for all of industry and urban requirements. Spread over 50 years this translates to about 80 square kilometers that are required or about 0.1% of land per year. And this should be able to generate income growth of about 10% per annum. Where will this land come from? Should total forest cover be reduced? Absolutely not. In fact we need to aim at an increase in forest cover in Jharkhand, and the beauty is that it is possible to do so, while having rapid economic growth. Countries in Europe are already achieving this – forest cover in Europe for instance has been increasing by about 0.1% per annum. So how would this be possible? First we need to appreciate the occupational structure of Jharkhand – a very large segment of the population undertakes multiple occupations simultaneously. Incomes from forest, agriculture and other economic activities supplement each other. Conventional data collection mechanisms are unable to capture this complexity of life in Jharkhand. In other words, people use land for agriculture, use forest land for incomes derived from the forest, and may also undertake other economic activities such as livestock etc. They do this, because incomes from none of these activities are sufficient to meet their requirements. The solution is therefore to increase income potential simultaneously from forests and agriculture. Is that possible? The answer is yes. This might seem strange, but it is true – the greater the incomes from land (whether in forests or agriculture) the lower will be the dependence on land in Jharkhand! Incomes from the forest are much more than merely tendu leaf collection – which needs to be stopped anyway. These require well functioning markets that can aggregate the forest dwellers collections and transfer them to areas of consumption nationally or internationally. The government knows this but does not really have the skills to manage this, and only private enterprise will be able to manage this. Greater agriculture incomes also do not necessarily need fertilizer-pesticide-HYV seeds-irrigation combination. In fact there is enough demand for organic produce in India and abroad to consume all that agriculturists in Jharkhand can produce. And this demand is only going to increase in future years. 12

Jharkhand should aim at increasing its land area under forests – from 30 to 35% in the next few decades. And it should also aim at improving the ‘quality’ of its forests. Land that is uncultivable and barren can be used for manufacturing. But, some of the land under forests will need to be released for mining and related activities as the minerals are located therein. What will happen to the dwellers residing there? What about their traditions and culture? There are two parts to the answer. First, a do-nothing attitude will anyway lead to a rapid degradation of the forest area to due to the population pressure, widespread migration to distant lands, decline of traditions and an irreversible break-down of social structure. Second, increasing productivity from forest related activities can strengthen all that we want to retain. And incomes and revenues generated from mining and manufacturing can and should be devoted to improving precisely this aspect of Jharkhand’s economy. The current conditions are such that if I was dependent upon agriculture and forestry, I would wholeheartedly oppose urbanization, industrialization and commercialization. For the greater wealth that they can generate will most probably not benefit me. The solution therefore is to link wealth creation in the non-traditional (I don’t like to use the word ‘modern’ for mining and industry) economy with improvements in incomes from the forest and agriculture. To put it another way, if a mining or manufacturing job provides Rs 5000 per month, occupations related to forests and agriculture should provide 6 or 7000 per person per month at the very minimum. For governments therefore the policy objective needs to be a sincere commitment to improving incomes from traditional occupations. And this will need to be done in a credible manner. The problem here is, no one really has any faith in Jharkhand’s political and bureaucratic classes’. Hence the fight is not really a fight of modern vs traditional, or Naxalites vs state, but that of credibility and sincerity of those who have political and economic power in Jharkhand. How can this be achieved? The first step is to make a roster of all whose land has been acquired in the last 60 years. And to ensure that they are properly rehabilitated. Note the emphasis on the word proper. Providing a few thousand rupees, or a job cleaning the factory floor, is not rehabilitation. When whole communities are uprooted, they not only need resettlement, but also occupational outcomes that are in line with the set of skills they possess. Land Banks (where the acquirer buys pieces of land that are voluntarily available for sale) are one option, converting of fallow or waste land into cultivable land is another. Both require significant investment, but this is the only option that is both fair and economically efficient. Note that rehabilitation can be done by private entities as well as the government. They both need to be answerable to the people if they fail in doing so. Hence just as the Constitution provides for a Chief Election Commissioner and a Supreme Court, we need to create a Chief R&R Commissioner who can take the central or state government to task. 13

The next issue is that of the environment. And here as well the problem can be addressed. Mining activities the world over are known to cause tremendous damage if proper precautions are not taken. Moreover, the damage may not be remain contained within the mine’s catchments, but spread to other parts. The availability of satellite technologies, cheap telecommunications networks, and the spread of a scientifically oriented civil society have made it possible to monitor the activities of the commercial sector on a real time basis. A well informed and well empowered environmental overseeing authority can exercise the right level of control on commercial entities. Whatever be the problem, there are enough solutions. The critical constraint is absence of faith of the masses in the sincerity of those who are economically and politically powerful. If this can be addressed, and I believe it is possible to do so, economic development can go hand in hand with improving the lifestyles of the masses as well as the environment. 14

Section II: A review of growth and development in the state of Jharkhand2 In November 2000, the state of Jharkhand came into being as the 28th state of India. Carved out of Bihar, the new state had to deal with the burden of a huge backlog of basic development objectives, a challenge in itself. With per capita 30% income of Rs. 21,465 in Econom ic Grow th 2008-09, Jharkhand has come a long 20% way from its inception, when per capita income was just Rs. 10,345. 10% It has left behind its parent state Bihar 0% whose per capita income in 2008-09 1994-95 1996-97 1998-99 2000-01 2004- 2006- 2008-09 remains a mere Rs. 12,643. Though -10% 2005 2007 income growth has significant fluctuations on a year to year -20% Jharkhand India basis, the economy has moved to a higher growth path since its conception in 2000, with an annual growth rate of 7.8 percent compared to 5.9 percent in the period 1993-94 to 1999-00. There has been a decline in the poverty levels as the percentage of people living below the poverty line came down from 44 percent in 1999-00 to 33.15 percent in 2004-05, but this is still a significant proportion of population whose needs need to be addressed. The ten percentage points reduction is more than what Bihar has achieved, where poverty rates fell from 41 percent to 33.36 percent over the same period. Sectoral Growth Annualised since 2000 The fastest growing sectors in Fastest Growth Slowest growth the economy since 2000 have been communication – with the Communication 23.0% Mining & quarrying 1.5% rise of the mobile industry, manufacturing in the registered Electricity, gas and water segment mainly and railways. 15.7% supply 0.4% However, the matter of Manufacturing concern is that the slowest Railways 11.1% Agriculture -0.6% growth has been recorded in agriculture, which forms the livelihood of 80 percent of the people, and which is still predominantly dependent on rainfall. Net irrigated area forms just 9.3 percent of net sown area and the vagaries of monsoon hit the economy hard, causing volatility in the economic growth of the state. An unfortunate trend has been of declining growth in agriculture - from an annual rate of 3.87 percent in the period 1995-96 to 1999-00 to a negative 0.6 percent for the period 2000-01 to 2008-09. 2 Sumita Kale, Chief Economist, Indicus Analytics Pvt. Ltd. 15

The drought in 2009 has further dealt a blow to the state. With all districts declared drought hit by July, even though there was some relief in rain later, the situation never recovered to normal. By the middle of October rice sowing was down 45 percent over the corresponding period last year, maize sowing was less by 30 percent and coarse cereals by 29 percent. Though there has been governmental help in the form of free grains for BPL families, subsidies for diesel etc. these are short term solutions. There has been hardly any increase in the irrigation facilities in the state since its inception. The need to mitigate the impact of low rainfall in the long term is growing in urgency. There are a variety of options such as dryland farming techniques, micro irrigation projects etc. that have not been exercised sufficiently. With high dependence on agriculture, which is yielding little growth in income and lack of other employment opportunities in rural areas, the disparity is alarming - annual per capita income in rural Jharkhand is estimated at Rs. 18,362 while urban areas enjoy per capita income of Rs. 52,860 in 2008-09. The Economic Census of 2005 shows Jharkhand to be the only state with negative growth in employment over the period 1998-2005. The growth in enterprises, other than those involved in crop plantation and agriculture was a meagre 3.2%, the second lowest in the country compared to Madhya Pradesh. Consequently labour has not seen a shift from agriculture to industry or the tertiary sector, resulting in low growth in rural incomes. Jharkhand’s large reserves of minerals has attracted industrial investment – Jharkhand is home to India’s largest steel plants in Bokaro and Jamshedpur. But 92% of manufacturing activity in the state is recorded in the registered sector, the highest proportion in the country. Employment opportunities are limited when manufacturing is concentrated in large-scale capital-intensive units. Schemes such as the NREGA that are meant to provide basic relief to the very poorest have also been floundering in the state. Even as official statistics (see table at end of section) list the achievements of the NREGA in great detail, media is rife with reports about the high levels of corruption in the state eg. Prof. Jean Dreze, member of the Central Employment Guarantee Council had pointed out in 2008 that the state was amongst the worst performing states in the countryi. There are mainly two reasons for the poor state of affairs: 1. Complete lack of trust between the administration and the people. In fact, the state machinery views any dissent as part of the Naxal mission complicating the matter even more as independent observers are also mistrusted. 2. Helplessness of rural people – illiteracy, poverty and ignorance of their rights make it difficult for the ordinary citizen who is the intended beneficiary to even demand the right to work from the state. Delayed wage payments were reportedii in the course of independent observations, payments for work done more than two years ago were still pending. The extreme levels of corruption also show up in the Transparency International India’s survey that reported that BPL families paid Rs. 16 crore in 2008iii to the police as well as for NREGA, land records, banking and free services such as health, school education, water supply etc. Clearly, 16

governance is an issue in this state requiring urgent reform, if the basic developmental and growth profile is to be raised. The lack of diversified activity and dependence on mining resources shows up in growth in other sectors also. The services sector contributes just a third of the state income, the lowest share amongst all states. This is to some extent a result of the large share of mining in the state’s income, compared to other states. Moreover, the composition of services within the sector shows large share of transportation and storage facilities, again an offshoot of the mining and industrial sector requirements, rather than catering to the needs of the people. This lopsided sectoral pattern is also reflected in other statistics; for example, rail connectivity is much higher than in other states – a result of the need to organize freight traffic. But the share of habitations that remain to be linked by pucca roads is almost 41 percent. Again it is ironic that only 32 percent of the households have electricity in a state that has a third of India’s coal reserves and abundant water resources, and also hosts India’s first multipurpose hydro project, Damodar Valley Corporation. The provision of electricity, road and telecom connectivity can give the required impetus to growth in the villages that will reduce inequality by boosting traditional livelihoods in the small-scale sector. There are significant challenges to overcome here since forests occupy almost 30 percent of the total state area, making accessibility a difficult task. However infrastructure provision and connectivity in particular are essentials for growth and development to be truly inclusive. Access to basic facilities like piped drinking water and sanitation services is much below the national average, an indication that the citizens of the state are still to lead a life with basic modern amenities. Just 5 percent of rural household have access to toilet facilities, while the corresponding figure for urban households is 74 percent, the national median levels are 39 and 89 respectively. Bihar meanwhile shows better, albeit marginally, coverage in rural areas where 16 percent of households have access to toilet facilities. The National Family Health Survey III revealed that not even one percent of rural households in Jharkhand had access to piped drinking water, the safest source of water. Urban households had a better coverage of 44.4 percent. The situation in Bihar is not very much better – 1.2 percent in rural areas and 19.8 percent of urban households have access to piped drinking water. In the social sector, the state has been making inroads into its poor performance of the past. While literacy rates have risen from less than 40 percent in 1991 to 54 percent in 2001, this level is still lower than the national 65 percent. The gender gap in literacy is another indicator that shows that 17

much needs to be done to raise the basic levels of development in the state. Less than 40 percent of the females were literate in the 2001 Census recording, the second lowest rate just above parent state Bihar. Moreover, even in 2004-05, just 34.84 percent of children had completed primary school. In Bihar, the state of affairs is even worse at 28.04 percent of the children having completed primary schooling. Without a basic level in education, it is useless to expect employability in the labour force. More than 70 percent of the children dropped out of schooling according to the 2004-05 government data. The reasons for dropouts are many. Apart from providing basic facilities in schools, what is needed is a complete overhaul of the school syllabus and exam system to make schooling more appropriate for children from diverse backgrounds. On the health front, there are mixed signals. There has been considerable progress in reducing the prevalence of leprosy, in treating tuberculosis and in child immunization. For instance, in 1998-99, just 8.8 percent of children below the age of 2 years received full immunization, by 2005-06 this share went up to cover 34 percent of the children. But the primary health centres, meant to deliver health facilities to the poor people are not in a good shape; only 9.8 percent have adequate infrastructure, compared to 31.8 percent all India. Though the situation in Jharkhand is worse than Uttarakhand where this share is 27.8 percent, it is far better than Chattisgarh where just 2.8 percent of the facilities pass muster. Unfortunately the low access to medical care shows up in the infant mortality rate falling marginally from 54 per 1000 live births to 49 over the same period. The percentage of births attended to by trained personnel has gone up from 17.5 in 1998-99 to 29 percent in 2005-06, much lower than the national average of 48.3 percent. There has been slower progress in Bihar where this indicator has risen from 24.8 percent to 30.9 percent over the same period. Malnutrition in children has increased which is a serious cause of concern. However, for sustainable and inclusive growth, the precondition is provision of security of life and property. With more than 60% of its districts under threat from the Naxalites, it is here that the state faces its biggest challenge today. With police force adjusted for population and for area less than the national average, it is clear that the state lacks adequate policing strength to deal with the problem. However, the main issue at stake is the complete withering away of the state and lack of trust in the government in various districts. The political leadership in the state was in complete turmoil leading to President’s Rule being imposed on the state in January 2009. While elections are due, it is unclear whether a clean verdict and government will take charge. Meanwhile, unless the web of corruption is broken, Jharkhand will not be able to move into a high sustainable and balanced growth trajectory. The state should shake away its legacy from Bihar and benchmark its progress with other states that have moved ahead, adopt, for instance, the Uttarakhand and Himachal Pradesh models for bringing the fruits of growth 18

to the people. The problem of governance and law and order is of prime importance, in building a state where the needs of all groups of citizens are addressed effectively. NREGA status as on October 2009 District Cumulative No. Cumulativ Cumulativ No. of of HH issued e No. of e No. of HH job cards HH HH workin demanded provided g under (Till the employme employme NREG reporting nt (Till the nt (Till the A month) reporting reporting during month) month) the reporti ng month Total BOKARO 143078 19712 19707 17736 CHATRA 152272 26179 26267 25314 DHANBAD 133655 41961 42093 33650 DUMKA 176940 57420 58704 51500 GARHWA 180520 28929 28944 27072 GIRIDIH 174124 27355 27430 22388 GODDA 185931 34850 34525 33213 GUMLA 178484 44304 44181 38148 HAZARIBAGH 166149 31588 31511 30230 JAMTARA 101037 15324 15301 10051 KODERMA 48446 8465 8428 6710 LATEHAR 110640 11303 11292 10484 LOHARDAGA 67334 21035 21829 17104 PAKUR 140317 55224 65884 63592 PALAMU 203739 28474 28448 24369 RANCHI 262538 33382 33268 30758 SAHEBGANJ 145574 53635 53608 52162 SARAIKELA 124870 32538 32429 30976 KHARSAWAN 19

SIMDEGA 97446 22053 21908 17384 WEST SINGHBHUM 220973 44901 44639 42887 DEOGHAR 172003 66663 66562 52241 EAST SINGHBUM 196879 52279 52259 47426 KHUNTI 82820 12027 11973 10458 RAMGARH 65501 14911 14958 14392 TOTAL 3531270 784512 796148 710245 Source: nrega.nic.in 20

Section III: Jharkhand in its Ninth Year Governance in Jharkhand This section explores the effectiveness of governance in Jharkhand. Good governance is the prerequisite for the overall development of a region. Good governance can be gauged from various angles like maintenance of law and order, management of finances of the government, control in the movement in prices and development in infrastructure. 1. Law and Order a. Value of property stolen & recovered The manner through which property is secured in a particular region depicts the efficiency of the state in securing the basic needs of its citizens. Table A.1 (a): Percentage of stolen property recovered States 2003 2004 2005 2006 2007 Jharkhand 20.6 16.2 18.3 16.3 16.2 Bihar 15 15.9 16.5 16 16.2 Uttarakhand 32 27.6 29 29.4 32.1 Chhattisgarh 28.9 33.2 50.7 22.8 41.3 West Bengal 23.7 22.9 22 20.7 16.4 Orissa 39 38.1 39.9 33.4 25.9 India 25.8 19.9 23.9 25.3 26 Source: Crime In India, National Crime Record Bureau, 2007 • In Jharkhand, the percentage of stolen property recovered has reduced from 2006 to 2007. This points to a volatile law and order situation in the state; the government has not been able to curb this problem effectively. • However, the percentage recovery of stolen property in Jharkhand is similar to its parent state, Bihar. 21

• Among the newly formed states, Chhattisgarh has been the most efficient in recovering stolen property followed by Uttarakhand. • Neighboring states like Orissa and West Bengal also fare well on this front compared to Jharkhand. 22

b. Juvenile Delinquency Juvenile delinquency refers to criminal acts committed by children below 18 years of age. Since these criminal acts are related to children who are future citizens of India, juvenile delinquency has become a major social problem and thus a major concern for the state government. The crimes committed by the juveniles fall under two categories – under the Indian Penal Code (IPC) and Under Special Laws (SL). Table A.1 (b): Incidence of crimes committed by Juveniles States 2003 2004 2005 2006 2007 Jharkhand 821 821 189 881 475 Bihar 260 214 286 210 1469 Uttarakhand 28 36 23 106 129 Chhattisgarh 1,179 1,819 2,924 2053 2025 West Bengal 106 75 131 99 133 Orissa 219 261 430 430 652 India 25,686 24,985 25,601 25817 33934 Source: Crime In India, National Crime Record Bureau, 2007 • Jharkhand has shown considerable fall in the incidence of crimes committed by the juveniles between 2006 and 2007. After reaching an extremely high rate of juvenile delinquencies in the year 2006, the rate has come down to almost half in the year 2007. The government of Jharkhand needs to maintain this rate of improvement to match up with rest of the states. • Compared to its parent state, the incidence of juvenile crimes in Jharkhand has reduced in the year 2007. Bihar has more than three times higher crime rate than that of Jharkhand. • Among the newly formed states, Chhattisgarh has the highest incidence of juvenile delinquency followed by Jharkhand. 23

c. Incidence of Murder Under the Indian Penal Code (IPC) murders come under the category of violent crimes. The measure of murder used here includes all reported cases of murder. The incidence of murder in a particular region indicates the effectiveness of police administration prevalent in that particular region. Table A.1 (c): Incidence of Murder Can you annualize the rate of change in these tables to make it per annum change? State 2001 2003 2004 2005 2006 2007 Per Annum Change 2001-07 (%) Jharkhand 1,507 1,482 1,488 1,523 1,492 1617 1.18 Bihar 3,643 3,772 3,948 3,471 3,249 3034 -3.00 Uttarakhand 316 293 262 279 274 268 -2.71 Chhattisgarh 880 797 927 1,013 1,098 1097 3.74 West Bengal 1,594 1,464 1,425 1,453 1,425 1652 0.60 Orissa 987 1,102 1,066 1,079 1,159 1210 3.45 India 36,202 33,821 33,608 32,200 32,481 32318 -1.87 Source: Crime in India, National Crime Record Bureau, 2007 • In Jharkhand the number of reported murders has increased in 2007 compared to the previous year. Continued efforts to improve policing are needed to bring in good law & order situation in the state. • Among the newly formed states, Uttarakhand has fared well compared to the other two states. • Among the neighboring states, Orissa has shown considerable rise in murders since 2001. 24

d. Incidence of Rape Rape is one of the major crimes against women and incidence of rape in a particular region is an indicator of the extent of safety provided to them. Over the years the punishment of committing rape has become stricter with an aim to check this heinous crime. While it is true that crimes against women are under-reported, the changes over time do reflect the trends. For the present analysis the number of reported cases of rape in respective years has been considered. Table A.1 (d): Incidence of Rape Per Annual Change 2001-07 State 2001 2003 2004 2005 2006 2007 (%) Jharkhand 567 1,482 797 753 799 855 7.09 Bihar 888 3,772 1,390 1,147 1,232 1555 9.79 Uttarakhand 74 293 115 133 147 117 7.93 Chhattisgarh 959 797 969 990 995 982 0.40 Orissa 790 1,102 770 799 985 939 2.92 India 16,075 33,821 18,233 17,651 19,348 20737 4.34 Source: Crime In India, National Crime Record Bureau, 2007 • Jharkhand reported an increase of about 50.8 percent in the number of rapes in a time span of six years (2001 to 2007). • Together Bihar and Jharkhand make this part of eastern India increasingly unsafe for women in terms of incidence of rape. • Jharkhand has fared well compared to Uttarakhand where the rate of growth in incidence is very high. However, it is far behind Chhattisgarh where the rate of growth in incidence of rape is quite low. e. Incidence of Crime against Women and Child 25

Crimes against women include rape, kidnapping & abduction, molestation, sexual harassment, forced prostitution, dowry deaths and importation of girls (NCRB, 2003). Under the Indian Penal Code (IPC) punishable crimes against children include infanticide, rape, kidnapping & abduction, foeticide, exposure and abandonment, procuration, selling and buying of girls, forced domestic and economic duties, and other unnatural duties. For the present discussion, all reported cases of crimes against women and children in the respective year have been considered. Table A.1(e): Incidence of Crime against Women and Children Per Annum Change 2001-07 State 2001 2002 2003 2004 2005 2006 2007 (%) Jharkhand 2,270 2,601 2,132 1,887 2,641 3,091 3391 6.92 Bihar 5,439 5,800 4,563 6,107 6,134 6,806 8223 7.13 Chhattisgarh 4,574 8,915 4,935 2,307 4,596 4,995 4799 0.80 Uttarakhand 795 897 745 750 862 1,089 1198 7.07 West Bengal 6,737 7,017 4,199 9,244 12,123 13,217 16905 16.57 Orissa 5,425 4,835 4,383 2,744 6,335 6,979 7505 5.56 India 154,609 158,147 144,353 102,504 170,528 183,732 205722 4.88 Source: Crime In India, National Crime Record Bureau, 2007 • Jharkhand registered a decline in the incidence of crime committed against women and children in 2004 since 2001 but the numbers increased thereafter. • Among the newer states, Uttarakhand has recorded the lowest incidence of crime committed against women and children followed by Jharkhand in 2007. • Jharkhand lies far below its neighbouring states, West Bengal and Orissa as well as mother state Bihar where the incidence of crime committed against women and children is considerably high. 26

f. Incidence of Crime against Schedule Castes and Schedule Tribes The Constitution of India provides that the state shall promote the social and economic upliftment of the weaker sections like Schedule Castes and Schedule Tribes. Since Independence, various laws have been passed to protect them from injustice and exploitation. As per Census 2001, SC & ST constitute around 40% of the total population of Jharkhand and thus crimes committed against these sections indicates the lack of equality in the state and ineffectiveness of governance. The crimes against Schedule Castes/ Schedule Tribes are broadly categorized under two categories 1. Under the Indian Penal Code (IPC) It includes crimes like murder, hurt, rape, kidnapping & abduction, dacoity, robbery, arson, others (other classified IPC crimes) 2. Under Special Laws (SL) It includes the crimes which come under Protection of Civil Rights Acts, 1955, Prevention of Atrocities Act 1989. For the following discussion, all the reported cases of crimes against Schedule Castes and Schedule Tribes in the respective years have been taken. Table A.1 (f): Incidence of Crime against SC and ST Per Annum Change 2001-07 State 2001 2003 2004 2005 2006 2007 (%) Jharkhand 440 184 249 760 665 538 3.41 Bihar 1,350 1,799 2,691 1,906 2,099 2786 12.83 Uttarakhand 186 134 140 100 69 71 -14.83 Chhattisgarh 987 1,483 1,374 951 1,027 511 -10.39 Orissa 2,468 1,641 1,917 2,041 1,502 1355 -9.51 India 39,718 32,141 32,422 31,840 32,861 30031 -4.55 Source: Crime in India, National Crime Record Bureau, 2007 • Crimes committed against SCs and STs have decreased in 2007 compared to 2006 although the incidence had increased in previous years. • Jharkhand has far less incidence of crime against SC/ST as compared to its parent state, Bihar. • Among the newly formed states, Uttarakhand has performed well compared to others. • Crime against SC/ST has decreased at all India level marginally in 2007. 27

g. Civil and Armed Police Strength Police force is essential for maintaining law and order, combating crime and regulating traffic. It is important for a state to have adequate police force, which should keep on increasing with the increase in population. Development and growth are feasible only when there is peace and order in the civil life of a state and the presence of a strong police force is essential for enforcing the law of the land and combating crime. Table A.1(g) Civil and Armed Police strength Per Annum Change 2001-07 States 2002 2003 2004 2005 2006 2007 (%) Jharkhand 8,930 17,659 20,992 24,563 25,730 29,198 21.83 Bihar 48,968 42,707 49,590 51,046 43,273 45,670 -1.16 Uttarakhand 9,092 10,373 12,173 11,947 9,518 9,920 1.46 Chhattisgarh 10,909 12,715 20,350 23,350 18,147 18,710 9.41 West Bengal 61,727 62,343 81,749 80,039 61,393 50,381 -3.33 Orissa 27,392 27,044 35,265 34,911 27,913 27,408 0.01 India 1,015,416 1,025,777 1,337,183 1,342,858 1,091,899 1,095,818 1.28 Source: Crime In India, National Crime Record Bureau, 2007 • The strength of police has increased in Jharkhand in 2007 compared to 2006. This may be attributed to increased Naxalite movement in the state. • Other states like West Bengal and Orissa have experienced reduction in the civil and armed police strengths. • An important insight derived from the table is that in Jharkhand the strength of police is high. In spite of this high presence of police personnel in Jharkhand, the crime committed is not low. This calls for the police strength to be more efficient in maintaining law and order in the state. 28

2. Public Finance a. Expenditure on Health, and Family Welfare Health and Family Welfare are crucial inputs into the well being of the population and the expenditure by the government in this sector indicates how seriously this commitment is taken. Public health & family welfare are some of the public services provided by the government. Expenditure in this sector reflects the proportion of total expenditure that the state invests in these public service. Table A.2 (a): Share of expenditure on Health and Family Welfare in total disbursements (%) States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 4.9 4.2 3.3 2.9 5.8 6.3 5 Bihar 4.9 4.2 2.9 2.6 2.6 4.4 3.9 Chhattisgarh 4.3 4 0.9 1.3 1.4 3.9 3.8 Madhya Pradesh 4.1 4.1 1.4 1.4 1.5 4 3.7 Orissa 3.7 3.8 1.6 2.2 2.8 3.4 3.5 Uttar Pradesh 3.6 3.8 0.9 2.1 2.6 6.4 5.2 Uttarakhand 4.4 3.8 0.7 2.3 2.4 4.6 5.5 West Bengal 5 4.9 1.1 1.3 1.6 4.4 4.4 India 4.4 4.1 1.4 1.8 2.1 4.1 4 Source : Reserve Bank of India; Budget Documents of State Governments • The percentage share of expenditure on health & family welfare in total expenditure has been higher in Jharkhand than that of other states except Uttarakhand and Uttar Pradesh where it is slightly higher. A possible reason might be that as a new state, Jharkhand is in the process of developing its overall infrastructural facilities for improving human resource potential which includes setting up hospitals, primary healthcare centres etc. 29

c. Share of expenditure on education to total disbursements A major priority of governments in developing economies is to build on human capital by improving access to and the quality of educational facilities to all sections of the society. The share of expenditure on education in total expenditure of the state budgets is just one indicator of the commitment of the state to fulfilling this objective. Table A.2 (b): Share of expenditure on education to total disbursements (%) States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 16.2 19 11.5 11.7 13.5 15.2 15.1 Bihar 20.7 18.4 14.3 13.9 14.2 17.5 16.7 Madhya Pradesh 12.5 12.2 4.2 3.9 4.2 11.9 11.6 Chhattisgarh 12.4 11 3.1 4.5 4.8 13.2 13.5 Orissa 12.4 11 3.1 4.5 4.8 12.6 13.5 Uttar Pradesh 16 14.6 2.9 6.5 8 15.2 14.1 Uttarakhand 21.1 20 3.6 9.2 9 16.9 16.7 India 16.1 15 5 6.3 7.2 14.2 14 Source : Reserve Bank of India; Budget Documents of State Governments • The share of educational expenditure out of total budget expenditure in Jharkhand is slightly higher than the All India figure. • Expenditure on education out of total expenditure in Jharkhand is also comparatively higher than the newly formed state of Chhattisgarh. However, it is lower than the proportionate spending on education by the parent state, Bihar. • Jharkhand also spends larger share of its budget on education compared to its neighbouring states like Orissa and Uttar Pradesh. 30

c. Expenditure on Administration Expenditure on administration includes the revenue expenditure of the state government in the administration of the state in the respective year. Administrative activities include activities like Secretariat-General Services, District Administration Services, Police, Public Works etc. It is an important measure of the importance given to administrative activities, relative to other budgetary items. Table A.2 (c): Percentage of Total Expenditure on Administration States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 10.7 9 7.2 6.7 9.7 9 8.4 Bihar 9.6 8.1 5.3 5.7 5.5 6.8 7.3 Chhattisgarh 6.4 6.4 1.3 1.7 2.4 2.2 1.5 Uttarakhand 9.5 7.4 1.4 4.1 3.7 2.8 3.1 West Bengal 6.5 6.3 1.4 1.8 2 1.4 1.2 Orissa 6.7 4.2 2.1 2.4 2.8 3.1 4.6 India 7.1 6.5 2.2 2.7 3.2 2.2 2.1 Source: Reserve Bank of India , Respective Years • Jharkhand spends a considerable share of almost 8.4 percent of its total expenditure on administrative activities. • Jharkhand spends a larger share of expenditure on administration compared to other newly formed states and other neighbouring states. • The percentage share of all India expenditure on administrative activities is also much lower than Jharkhand’s percentage share. 31

d. Expenditure on the Welfare of SC and ST The Constitution of India classifies Scheduled Castes and Scheduled Tribes (SC/ST) as socially and economically weaker sections of the society. The state is required to take constructive actions to empower them. The amount spent on them can indicate how much the state invests in the upliftment of this section. It includes total actual expenditure made by the government for the welfare of Schedule Castes and Schedule Tribes. Table A.2 (d): Percentage of Total Expenditure on Welfare of SC and ST States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 5.3 3.2 2.5 3 2.3 2.2 2.0 Bihar 1 0.7 0.5 0.4 0.4 0.6 0.8 Chhattisgarh 9.6 8.4 1.7 2.2 2.6 2.3 1.4 Madhya Pradesh 4.4 4.9 1.7 1.7 1.9 0.8 0.7 Orissa 2.2 2 0.7 1.1 1.4 1.6 2.4 Uttar Pradesh 1.8 2.3 0.4 1.5 1.6 1.5 0.9 Uttarakhand 1.2 0.9 0.2 1 1.1 0.8 0.9 West Bengal 0.7 0.7 0.2 0.3 0.3 0.2 0.2 India 1.9 1.8 0.6 0.9 1 0.8 0.8 Source: Reserve Bank of India, Respective Years • Jharkhand spends around 2 percent of the total expenditure on the welfare of SCs and STs which is much higher than the corresponding All-India average figure. • It should be mentioned that Jharkhand has a significant tribal population and this could be the reason behind greater expenditure on the welfare of SC/STs. • Among new states, Chhattisgarh spends a higher proportion of total expenditure on the welfare of the deprived sections. e. Expenditure on Development 32

Some of the major heads under development expenditure include social services such as education, medical and public health. Table A.2 (e): Percentage of Total Expenditure on Developmental Expenditure States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 63.1 65.5 47.8 50 50.7 55 53.5 Bihar 49.2 47.7 34.3 35.2 36.9 49.4 54.9 Chhattisgarh 62.6 63.5 16.7 22.4 23.6 28.7 20.6 Madhya Pradesh 61.3 58.6 25.3 22.3 23.1 15.7 13.1 Orissa 46.5 46.1 20 22.7 28.1 33 53.3 Uttar Pradesh 47.5 46.7 17.9 23.3 27.1 35.5 19.2 Uttarakhand 61.6 55.8 10.5 32.7 34.7 30.1 33.7 West Bengal 46.7 40 9.6 13.1 14 10.8 11.1 India 54.2 51.2 19.2 24.1 27.1 20.7 21.3 Source: Reserve Bank of India, Respective Years • In Jharkhand almost 53 percent of the total expenditure is being incurred on development activities in the year 2007-08. • When we compare the development expenditure of the new states with the older states we find that generally new states have to make greater expenditure on development. However, Jharkhand spending towards development is far higher than the other new states. • In 2007-08 India spent just 21.3 percent of its total expenditure on development compared to states like Jharkhand and Bihar, where the proportions crossed 50% 33

f. Grants from the Centre This indicator looks at the grants received in the year from the Central Government. It shows how dependent the state is on the Centre for its revenues. Table A.2 (f): Percentage of Total Revenue Receipts from Grants States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 14.3 25.2 25.1 16.5 20.6 17.4 14.4 Bihar 12.2 15.2 16.2 23.2 21.1 23.6 24.7 Chhattisgarh 11.1 14.5 11.4 17.1 14.9 18.1 22.1 Madhya Pradesh 13.3 13.9 12.4 13.8 14.5 19.1 19.5 Orissa 17.6 21.3 18.2 23.6 27.3 21.7 24.8 Uttar Pradesh 12.9 8.3 7.8 12.7 11.9 13.9 15.6 Uttarakhand 48.4 45.1 43.6 54.9 48.2 39.9 44.7 West Bengal 20.2 15.4 11.4 13.5 13.6 17.7 16.8 India 16.9 16.3 16.2 17.5 18.3 19.2 19.8 Source: Reserve Bank of India, Respective Years • The percentage of grants received by Jharkhand from the Centre has decreased in 2007-08 compared to 2006-07 though it had increased the previous year. • Among new states, Uttarakhand has the highest dependence on grants compared to the other two. Being a hilly state, Uttarakhand has topographical and climatic constraints and needs more investment for achieving the same level of development. • Jharkhand receives lower grants compared to neighbouring states like Bihar and Madhya Pradesh. 34

Price Movement The Consumer Price Index is one of the widely used indicators for assessing the movement of prices or inflation. b. Movement of Prices for Industrial Workers It is based on the Consumer Price Index of industrial workers (CPI – IW). The CPI – IW which also includes selected services and is measured on the basis of retail prices, and is used to used to determine the dearness allowance of employees in both the public and private sectors, is the appropriate indicator of general inflation.3 CPI for industrial workers is released by labour bureau, Ministry of Labour, Government of India. Table A.3 (b): Consumer Price Index for Industrial Workers (District-wise weighted average) State Percentage Change Percentage Change (April 2007 to March (April 2008 to 2008) March 2009) Jharkhand 6.66 8.67 Bihar 6.86 8.68 Delhi 4.85 7.65 Maharashtra 6.19 8.57 Source: Labour bureau Base: 2001=100 • The percentage change in CPI for industrial workers in Jharkhand is higher than developed states like Delhi and Maharashtra. Jharkhand is almost identical to its mother state Bihar in terms of percentage change in CPI for industrial workers. 3 Economic Survey, 2004-05 35

Infrastructure a. Road Connectivity Rural road connectivity is not only a key component of rural development but also an ingredient in ensuring sustainable poverty reduction. It promotes access to economic and social services by generating increased agricultural incomes and productive employment opportunities. The Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in the year 2000-01 by the Government of India to provide all weather road connectivity to unconnected rural habitations. It aimed to provide connectivity to all unconnected habitations having population above 1000 by 2003 and for population above 500 by the end of the Tenth Five Year Plan (2007). Table A.4 (a): Percentage of Habitations connected by pucca roads State 2000 2009 Jharkhand 50 59.6 Bihar 30.8 44.0 Chhattisgarh 27.5 76.2 Uttarakhand 48.8 57.7 Orissa 42.1 66.5 West Bengal 30.5 58.5 All India 59.2 72.8 Source: PMGSY, Ministry of Rural Development • Among newly formed states, Chhattisgarh has witnessed the maximum rise in habitations being connected by rural roads, followed by Jharkhand. • A marginal rise in connectivity has been experienced in Jharkhand as well as its parent state Bihar over a span of eight years. Still more than 40 percent of habitations remain to be connected by good roads. • The habitations connected by rural roads in the state is higher than the parent state Bihar. • Jharkhand has better connectivity than West Bengal among the neighboring states. 36

b. Transport Vehicles Transport vehicles include all the registered transport vehicles in the state across the given years. The major transport vehicles include buses, trucks, and taxis among others. It depicts the status of infrastructure of transportation in the state. Table A.4 (b): Registered Buses, Trucks, Taxis and Other Vehicles (Per lakh People) 2001 2002 2003 2004 Buses/ Buses/ Buses/ Buses/ trucks/ trucks/ trucks/ trucks/ States taxis Others taxis Others taxis Others taxis Others Jharkhand 416 601 424 87 441 101 325 125 Bihar 134 69 138 210 101 110 62 47 Chhattisgarh 278 277 295 305 366 344 288 108 Uttarakhand 348 359 371 366 405 378 300 134 West Bengal 316 43 312 43 463 90 415 45 Orissa 283 156 308 170 339 183 234 151 INDIA 573 400 580 418 660 445 354 324 Source: Department of Road Transport and Highways, Ministry of Shipping, Road Transport and Highways • The penetration of transport vehicles in Jharkhand is more than four times that of Bihar. • In Jharkhand the ratio of transport vehicles per million population is better than other newly formed states. 37

d. Railway Lines Railways form one of the most widely used transport services in India. It is an extremely efficient mode of transportation which unites the country economically, politically and culturally. The increase in route of railway lines within a state reflects how well its cities and villages are internally connected and also depicts its connectivity with other states. For the present discussion total rail length in kilometers has been used. Table A.4 (c): Length of Railway Lines (Kms) Change 2004-200 2005-200 (2001-07 States 2001-02 2002-03 2003-04 5 6 2006-07 ) (%) Jharkhand 1,797 1,798 1,943 1,941 1,955 1,941 7.43 Bihar 3,429 3,224 3,377 3,379 3,330 3,411 -0.53 Madhya Pradesh 4,845 4,825 4,849 4,905 4,903 4,884 0.80 Chhattisgarh 1,180 1,180 1,159 1,159 1,186 1,185 0.46 Uttarakhand 356 345 345 345 345 345 -3.22 Uttar Pradesh 8,578 8,799 8,566 8,545 8,546 8,575 -0.04 India 63,140 63,122 63,221 63,465 63,332 63,327 0.29 Source: Rajya Sabha Starred Question No. 103, dated 24.10.2008 ; Ministry of Railways, Government of India • Jharkhand has shown an increasing trend in the growth of length of railway lines over the years. • In some states like Bihar, Uttarakhand railway lengths have reduced marginally over the years. . 38

d. Movement through Aviation This indicator includes the number of passengers traveling per year and number of outbound flight movement per year from the state in the respective years. Development of aviation shows how fast the state is adapting to the rapid increase in economic growth. Passengers per outbound movement is the ratio of total number of passengers traveling in a day to the total number of flights going out in a day. Table A.4 (d): Passengers per Outbound Movement State 2005-06 2006-07 2007-08 Jharkhand 28 38 35 Bihar 52 53 60 Madhya Pradesh 31 43 35 Orissa 46 52 54 Chhattisgarh 44 51 52 West Bengal 84 86 91 India 86 88 88 Source: Airport Authority of India • The average numbers of passengers traveling in Jharkhand is generally low (less than 40 passengers per flight per day), reflecting on the low levels of economic growth and development in the state. Compared to Jharkhand, Chhattisgarh fares much better. • Among the neighbouring states, West Bengal has much more passengers per outbound movement than Jharkhand. This reflects the presence of Kolkata, the hub for transport in the region. 39

e. Households with Electricity and LPG It includes the total percentage of households having electricity and LPG connections. Along with economic growth, electricity consumption increases as power has become an integral part of improved and modernized infrastructure for production as well as consumption. The per capita consumption of electricity therefore reflects upon the level of such improvement and modernization, in short, of development. Table A.4 (e): Percentage of households having LPG connection and Electricity connections across states LPG Electricity State 2006 2007 2002-04 2007-08 Jharkhand 17.2 17.1 31.9 32.5 Bihar 13.4 12.7 14.1 21.7 Chhattisgarh 20.1 20.8 63.7 71.2 Uttarakhand 77.7 72.0 66.6 83.4 Maharashtra 54.1 51.8 83.6 77.6 Punjab 87.5 80.9 96.2 98.4 Tamil Nadu 51.1 49.5 87 91.2 INDIA 41.5 39.1 71.6 69.4 Source: District level Household Survey –III, II, Ministry of Petroleum and Natural Gas • Households in Jharkhand are more likely to have LPG and electricity connections than Bihar. However, there is significant scope for increasing the coverage of both LPG and electricity as the all India average stands at 39.1 percent and 69.4 percent respectively. • Amongst the newly formed states, Uttarakhand has the highest percentage of households having electricity and LPG connections, followed by Chhattisgarh. • The higher-ranking states like Maharashtra and Punjab are much better off than Jharkhand as in Punjab has more than 98 percent of households have electricity. 40

f. Electricity Electricity has become basic necessity of our daily lives. For the present discussion the percentage deficit or surplus of electricity supply in relation to its demand has been used. It explains how effectively the demand of electricity is being met in the state. Table A.4 (f): Surplus/deficit of Electricity across different States (%) 2002-200 2003-200 2004-200 2005-200 2006-200 States 3 4 5 6 7 2007-08 2008-09 Jharkhand -0.6 -4.2 -2.2 -6.9 -2.4 -10.9 -4.7 Uttarakhand -2.8 -2.1 -3.4 -13.5 -4.3 0 -1 Chhattisgarh -3.3 -2.7 -1.7 -12.9 -18.2 -14.8 -2.6 Punjab -6.3 -2.9 -9 -20.3 -1.2 -12.9 -10.6 Maharashtra -13.6 -10.2 -12.1 -23.1 -30.4 -24.9 -21.4 Bihar -7.8 -22.5 10.1 -15.1 -12.2 -27.8 -16.4 Orissa -2.1 -1.7 -0.8 -1.7 -3.4 -2.3 -1.5 West Bengal -1.4 -2.2 -1.6 -3 -0.7 -6 -3.2 India -9 -7.1 -7.3 -12.3 -13.5 -14.4 -11.1 Source: Central Electricity Authority (CEA) • Jharkhand was able to meet almost 95 percent of the demand of electricity in the state during 2008-09. The figures were more impressive in the initial years where they met almost entire demand. • Jharkhand has shown much better performance in meeting power demands than India as a whole. • Interestingly, Jharkhand’s performance is better than some of the developed states like Punjab and Maharashtra. • The neighbouring state of West Bengal has however performed better than Jharkhand in meeting the demands of electricity. • Among the new states, Uttarakhand leads in meeting the power demand while Chhattisgarh has taken over Jharkhand in terms of meeting the electricity requirement in the state. 41

g. Banks Banks have always been intermediaries of money in an economy. Most of the major transactions in the economy are done through banks. Higher number of banks in any state reflects the growth in the financial sector of the state and also its effort made in the direction of achieving financial inclusion among the society. For this discussion all the banks registered with RBI in the respective years have been taken. Table A.4 (g): Per capita bank branches across different states State 2007 2008 Jharkhand 0.5 0.54 Punjab 1.1 1.20 Bihar 0.4 0.40 Tamil Nadu 0.8 0.86 Chhattisgarh 0.5 0.50 Uttarakhand 1 1.02 Maharashtra 0.7 0.70 India 0.6 0.68 Source: RBI • Economically developed states like Punjab, Tamil Nadu and Maharashtra have better banking coverage than Jharkhand. • Among the new states, Uttarakhand has comparatively higher per capita bank branches compared to the other two states. • Low number of bank branches will impede the flow of investments and therefore the government should take constructive steps to address this problem. 42

h. Post Offices According to the Economic Survey 2003-04 ‘ The Indian postal network is among the largest networks in the world in terms of areas covered or population served..’ Besides providing access to affordable means of communication anywhere in the country, it also provides financial services such as savings accounts, money order transactions, Postal Life Insurance etc. It is actually the largest bank in India in terms of network, accounts and annual deposits. The number of post offices in the state is a good measure of the communication and financial services infrastructure . Table A.4 (h): Post Offices per ten thousand population across states, 2007 State 2005 2007 Jharkhand 1.0 1.0 Bihar 1.0 1.0 Chhattisgarh 1.4 1.4 Uttarakhand 2.9 2.8 Maharashtra 1.3 1.2 Punjab 1.5 1.5 Tamil Nadu 1.9 1.9 West Bengal 1.1 1.0 Orissa 2.1 2.1 INDIA 1.4 1.4 Source: India Posts, Ministry of communications & IT, Registrar General of India • The number of post offices per thousand population in Jharkhand is less than that of the all India average. • Though the density of post offices in Jharkhand is slightly better than Bihar, it still lags behind the other new states. • Uttarakhand, in fact, has the highest post office density, almost two times of the all India average. 43

B. Jharkhand as a Knowledge Economy Information is the foundation of any economy. Factors such as the method of provision of information, its spread and the extent of technical development in an economy, in terms of accepting and spreading information are crucial in determining the pace of development. This section assesses Jharkhand’s information base. 1. Communication Good communication is a key input in the development of any economy. Today telephones, cellular phones and internet are connecting the country with farthest parts of world. Increasingly various business and services are being provided through these communication modes. a. Telephone Connections Telephone lines play a major role in the communication of any state. It is one of the most easily accessible and cheap modes of communication. Almost the entire nation today has been covered by telecommunication network. The present analysis reports the number of telephones per 100 persons. Table B.1 (a): Telephone Density (%) across states 2006 State -07 2007-08 2008-09 Jharkhand 3.2 3.4 4.1 Bihar 6.7 11.1 22.1 Chhattisgarh 2.9 3.9 5.1 Uttarakhand 8.4 10.2 11.1 Maharashtra 26.8 36.1 53.6 Tamil Nadu 27.1 40.7 61.1 Punjab 36.8 47.6 61.7 West Bengal 13.9 20.1 33.5 Orissa 8.8 13.4 23.6 India 17.1 24.2 36.9 Source: Annual Report, Department of Telecommunications 44

• Only a little higher than 4 percent people have telephone connections in Jharkhand, a very low coverage ratio. • There is tremendous scope for increasing the coverage of telecommunications in Jharkhand. Even though coverage has increased in the last few years, it is still considerably lower than the national average. • Among the newly formed states, Uttarakhand has the highest density of telephone connections followed by Chhattisgarh. • Jharkhand’s figures stands much below in comparison to the figures of the developed states like Punjab, Maharashtra and Tamil Nadu. In Punjab more than 60 % population has telephone connection. b. Mobile Connections per 1000 people Mobile phone technology has rapidly become a necessity in recent years especially in urban areas. Greater use of mobile telephone is an indicator of a technologically advancing economy and its growing acceptance among the general population. Further it also indicates how well a state is adapting to advancing technology and demand for the same especially since the telecom sector has now been privatized. Mobile density i.e. mobiles per 1000 persons has been used in the present discussion and it includes all the connections with all the service providers operating in the state in the respective years. Table B.1 (b): Mobile Connections per 1000 people State 2006-07 2007-08 2008-09 Jharkhand 16.6 19.1 27.2 Bihar 55.8 98.4 210.9 Chhattisgarh 16.7 25.3 38.7 Uttarakhand 46.8 66.6 81.1 West Bengal 50.4 90.9 306.0 India 132.5 203.8 336.8 Source: Annual Report, Department of telecommunications • Penetration of mobile connections in Jharkhand is significantly lower than all India. • Bihar, its parent state, has almost seven times higher penetration than Jharkhand. 45

• Among the newly formed states, Uttarakhand has about 81 mobile connections per 1000 persons followed by Chhattisgarh with 38 mobile connections per 1000 person c. Internet Users The Internet has emerged as a new tool of communication for last few years. It is a highly versatile mode of accessing information. It is used for business promotion, transactions, making contracts etc. In this discussion all the registered internet connections have been considered. Table B.1 (c): Internet Connections (per lakh population) across States State 2001 2002 2003 Jharkhand 83 42 51 Bihar 13 14 22 Chhattisgarh 20 37 43 Uttarakhand 69 126 223 West Bengal 334 163 174 Orissa 50 47 60 Maharashtra 948 789 961 India 347 310 330 Source: Ministry of Telecommunication, Govt. of India., Rajya Sabha Unstarred Question No. 1733, dated 18.12.2003 • Internet has miniscule prevalence in Jharkhand, but it is much higher than its parent state. In comparison to the all India average Jharkhand’s internet penetration is not even one sixth. There is an urgent need to bridge this digital-gap. • Even though it is one of the newly formed states Uttarakhand, surprisingly has almost four times penetration of internet than Jharkhand. This difference is probably on account of high literacy rate in Uttarakhand. 46

2. Educational Institutions a. Pre-College Institutions/Schools Pre-college level of education forms the foundation for higher professional education. It also marks completion of school education. Current discussion includes all the registered pre-college institutions or schools in the state. Table B.2 (a): Number of Pre-College Institutions/Schools per Million People State 2002-03 2003-04 2004-05 2005-06 2006-07 Jharkhand 817 768 785 802 939 Bihar 629 616 606 598 616 Madhya Pradesh 1,470 1,665 2,158 2,104 2,158 Chhattisgarh 1,555 2,067 2,143 1,991 2,085 Uttar Pradesh 886 942 990 1,017 1,038 Uttarakhand 2,162 2,171 2,199 2,214 2,241 Maharashtra 1,340 1,375 1,375 861 865 Kerala 419 424 463 459 455 India 1,036 1,099 1,150 1,098 1,083 Source: Selected Educational Statistics, respective years • Density of pre-college institutes or schools is considerably lower in Jharkhand than all India average though it has shown a rising trend over the years. • Among the newly formed states, Uttarakhand has the highest density of pre college institutes followed by Chhattisgarh and Jharkhand. 48

b. Higher Educational Institutions/Post School Institutions The presence of higher educational institutions shows the existence of facilities and denotes ease of access to higher education. Presence of higher educational institutes is also indicative of the demand for the higher education. Good educational institutes not only attract students from within the state but also those from outside. It includes all the registered post=school and higher educational institutions in the state. Table B.2 (b): Number of Higher Educational Institutions/Post School Institutions per Million People State 2002-03 2003-04 2004-05 2005-06 2006-07 Jharkhand 6 6 5 6 6 Bihar 10 4 10 10 11 Madhya Pradesh 13 13 17 17 18 Chhattisgarh 12 11 11 19 19 Uttar Pradesh 7 7 11 15 14 Uttarakhand 9 9 13 18 23 Maharashtra 19 19 18 24 23 Kerala 12 12 12 17 16 India 1 13 15 19 19 Source: Selected Educational Statistics, respective years • Jharkhand has a very low number of higher educational institutions per million people compared to the newer states. • It also falls below its parent state, Bihar. The Government should take steps to increase the access of higher education to its people thereby investing in future human capital. 49

c. Engineering, Technical & Architecture Institutions Increasingly economies are becoming more technically advanced which requires technically trained work force. This makes the presence of technical colleges important to meet this growing demand. For this discussion all the registered engineering, technological and architecture institutes in the respective years have been considered. Table B.2(c): Number of Engineering, Technical & Architecture Institutions per 10 Million People State 2002-03 2003-04 2004-05 2005-06 2006-07 Jharkhand 1 2 2 4 3 Bihar 1 1 1 1 1 Madhya Pradesh 5 10 9 11 13 Chhattisgarh 1 1 1 7 7 Uttar Pradesh 4 4 4 6 6 Uttarakhand 2 2 2 13 14 Maharashtra 17 18 18 19 20 Kerala 20 20 20 30 29 India 9 10 12 14 14 Source: Selected Educational Statistics, respective years • Jharkhand has a long way to go to have considerable penetration of technically oriented institutes though the number has increased in 2005-06 compared to previous years. • Generally the presence of professional institutes is low in the new states except Uttarakhand where it has shown a considerable rise. In case of Jharkhand and Chhattisgarh, it could be attributed to the nascent phase of statehood, making it difficult to have an adequate infrastructure with respect to professional education. • However, Jharkhand falls far below states like Kerala where the educational standard is better than most other states. 50

• Realizing the importance of good quality education, the state government has already proposed to open an Indian Institute of Technology at Dumka, an Indian Institute of Management at Bokaro and an Indian Institute of Information Technology at Hazaribagh. 51

d. Medical Colleges Health is a public service and hence presence of adequate number of doctors and other nurses etc. is indispensable for the system to work effectively. For adequate training of medical professional, proper infrastructure is essential. All the registered medical colleges in the state have been included in this discussion. Medical colleges cover education in the various systems of medicine practiced in India – Allopathy, Ayurved, Homeopathy, Unani – as well as colleges offering training in nursing and pharmacy. Table B.2 (d): Number of Medical Colleges per 10 Million People State 2002-03 2003-04 2004-05 2005-06 2006-07 Jharkhand 1 3 3 2 2 Bihar 3 3 3 3 3 Madhya Pradesh 4 4 4 15 14 Chhattisgarh 1 1 1 9 9 Uttar Pradesh 2 2 2 5 5 Uttarakhand 1 1 1 21 21 Maharashtra 12 12 11 34 34 Kerala 12 12 12 37 37 India 7 7 7 18 18 Source: Selected Educational Statistics, respective years • Jharkhand is far behind the educationally developed states like Kerala. • Among the newly formed states, Jharkhand has the lowest number of medical colleges compared to other two states. • Jharkhand’s figure is also far behind India as a whole. 52

e. Management, Law, IT, Agricultural Colleges Management, Law , Information Technology and Agricultural Education are specialized courses of education. Increasingly economies require people with management and legal skills who can provide consultancy in the growing service sector. This section includes all the registered management, law, IT and agricultural colleges in the state in the respective years. Table B.2 (e): Number of Management, Law, IT, Agricultural Colleges perMillion People State 2002-03 2003-04 2004-05 2005-06 2007-07 Jharkhand 0.5 0.5 0.3 0.8 0.9 Bihar 0.7 0.7 0.7 0.4 1.8 Madhya Pradesh 3.3 3.3 3.2 2.2 2.2 Chhattisgarh 1.5 1.5 1.4 2.2 2.5 Uttar Pradesh 0.7 1.5 3.9 3.8 3.3 Uttarakhand 3.2 3.1 3 3 6.2 Maharashtra 1.3 1.3 1.3 4 4.2 Kerala 2.5 2.5 2.5 2.5 0.9 India 1.9 1.9 2.2 2.3 2.3 Source: Selected Educational Statistics, respective years • In Jharkhand the penetration of management educational institutions is less than the all India average. • In 2005-06, the number of management institutes per million students in Jharkhand has slightly increased, giving some solace to aspiring management students. • Among the newly formed states, Uttarakhand has shown comparatively better performance followed by Chhattisgarh. 53

C. Socio Economic Profile Demography a. Population Population of a particular region refers to the number of people residing within that specified geographical area. Table C.1 (a): Growth rate of Population (in per cent) States 2001 2001-05 2006-10 Jharkhand 26945829 1.77 1.78 Bihar 82998509 1.77 1.78 Chhattisgarh 20833803 1.77 1.76 Uttarakhand 8489349 2.21 2.24 Punjab 24358999 1.12 1.15 Maharashtra 96878627 1.06 1.08 Tamil Nadu 62405679 0.83 0.8 West Bengal 80176197 1.3 1.28 Orissa 36804660 0.89 0.89 India 1028610328 1.55 1.52 Source: Estimated Population, Registrar General of India • Jharkhand accounts for 2.6 % of India’s Population. However the parent state Bihar is three times more populated than Jharkhand. • Average annual population growth in Jharkhand as remained almost same between the period 2001-05 and 2006-10. • Among the newly formed states, Uttarakhand has the highest population growth rate as compared to Jharkhand and Chhattisgarh. 54

b. Sex Ratio The sex ratio is measured as number of females per thousand males. Sex ratio is an indicator of the extent of gender bias prevailing in a particular region and reflects on the extent of discrimination shown against a girl child. Table C.1 (b) Sex Ratio, 2001 State 2006 2007 2008 2009 2010 Jharkhand 919 920 921 922 923 Bihar 913 914 914 914 914 Chhattisgarh 937 939 941 942 943 Uttarakhand 938 939 941 941 942 Maharashtra 944 946 947 948 948 Punjab 905 907 908 909 911 Tamil Nadu 981 982 982 983 983 INDIA 32821 937 938 939 940 Source: Census of India, 2001 • The number of females per thousand males of Jharkhand is lower than India as a whole. • In spite of faring better than its mother state, Bihar, and economically better performing states such as Punjab, Jharkhand trails behind the two other newly formed states. • A positive aspect emerges from the fact that the sex ratio in Jharkhand is expected to show improvement over the period while the sex ratio in parent state Bihar is more or less stagnant over the years, according to the Census of India projections. 55

c. SC and ST population The proportion of scheduled castes(SC) and scheduled tribes(ST) residing in a particular region shows the proportion of backward sections in the entire population. Backward communities need special progammes and policies aimed at their development to allow these sections to merge with the mainstream over time. Table C.1 (c) Percentage of SC & ST population, 2001 States S S C T Jharkhand 11.8 26.3 Bihar 15.7 0.9 Chhattisgarh 11.6 31.8 Uttarakhand 17.9 3.0 Punjab 28.9 0.0 Maharashtra 10.2 8.9 Tamil Nadu 19.0 1.0 West Bengal 23.0 5.5 Orissa 16.5 22.1 INDIA 16.2 8.2 Source: Census of India, 2001 • STs constitute a considerable proportion of Jharkhand’s population. This proportion is more than three times that of all India. • Among the newly formed states, Chhattisgarh has the highest proportion of tribal population followed by Jharkhand,where as Uttarakhand has the highest proportion of SC population. • Among Jharkhand’s neighboring states, West Bengal has the highest proportion of SC population. Orissa is another state with considerable proportion of tribal population. 56

2. Workforce The workforce is defined as the percentage of the total population working in return for monetary incentives. Therefore, it does not include housewives/homemakers, working in a family business etc., i.e. people enganged in work that does not involve monetary incentives is not included in this indicator Table C.2 Percentage of workers in total population, 2001 States Main workers Marginal workers Non-workers 23.92 13.59 62.48 Jharkhand Bihar 25.37 8.34 66.3 Chhattisgarh 33.86 12.6 53.54 Uttarakhand 27.36 9.56 63.08 Punjab 32.17 5.3 62.53 Maharashtra 35.87 6.63 57.5 Tamil Nadu 38.07 6.6 55.33 West Bengal 28.7 8.1 63.2 Orissa 26.1 12.8 61.1 INDIA 30.43 8.67 60.9 Source: Census of India, 2001 • In Jharkhand, percentage of people who are not workers exceeds that of Chhattisgarh by almost 10 percentage points. However, the situation in Jharkhand is very similar to Uttarakhand and India as a whole. Even Punjab, which is one of the economically developed states, has almost equal share of people who do not fall in the working category. . • Among the three newly formed states, Jharkhand accounts for maximum percentage of people who had not worked for the major part of the reference period (i.e. less than 6 months). The percentage points are almost doubled when compared with the economically developed states like Punjab and Maharashtra. The percentage of marginal workers is also much higher than all India average, which is very similar to Bihar. 57

• Percentage of main workers in the total population in Jharkhand is considerably lower than the India average. In fact, Jharkhand has the minimum percentage of people having full employment as compared to all the other states considered. This could be due to lower avenues for regular employment. • Overall therefore, lower percentage of people working will lead to greater pressures on household budgets for meeting basic needs. 58

3. Basic Necessity a. Head Count Ratio (HCR) The head-count ratio is computed on the basis of National Sample Survey data on consumption expenditure. People with an income below a predefined poverty norm( also called poverty line) are "poor" and the proportion of the poor to the aggregate population defines the head-count ratio. Symbolically, HCR = q/n * 100 (Where q is the number of persons below poverty line and n is the total population.) Table C.3 (a) Head Count Ratio State 1999-00 2004-05 Jharkhand 43.96 33.15 Bihar 40.92 33.36 Chhattisgarh 40.54 36.46 Uttarakhand 15.20 31.67 Punjab 6.16 4.98 Maharashtra 25.02 25.05 Tamil Nadu 21.12 17.17 West Bengal 27.02 20.96 Orissa 47.15 40.09 India 26.10 21.76 Source: NSSO 55thand 61st (Consumer Expenditure)round, 1999-2000 & 2004-05 • Percentage of population below poverty line is significantly high for Jharkhand, much higher than that of India as a whole although over the years it has successfully reduced this percentage. 59

• Among the newly formed states, Chhattisgarh has the highest percentage of population below poverty line in 2004-05 followed by Jharkhand. • When compared with the neighbouring states, Orissa has the highest percentage of population below poverty line. The HCR of Jharkhand is also higher than that of Bihar, the mother state. • Jharkhand is far behind the economically better performing states such as Punjab, Maharashtra and Tamil Nadu. • Overall, more than two out of every five people cannot meet their basic needs in Jharkhand. High poverty is reflected in all other measures of socio-economic development. This calls for constructive steps to be taken by the government to eradicate the stark poverty. b. Food Sufficiency Food Sufficiency is defined as a household where every member has had at least two square meals a day . This measures the extent of nutritional poverty of a country. India has the largest number of the absolutely poor. This in turn implies that the number of households not having food sufficiency is also very high. Table C.3 (b) Percentage of household without food sufficiency, 2004-05 % of households without State food sufficiency Jharkhand 0.57 Bihar 2.69 Chhattisgarh 2.24 Uttarakhand 0.39 Punjab 0.65 Maharashtra 0.84 Tamil Nadu 0.30 WestBengal 8.91 60

Orissa 5.24 India 1.93 Source: NSSO 61st (Employment & Unemployment) round • The percentage of households not getting two square meals per day in Jharkhand is lower than that of its mother state Bihar. It also trails behind the all India figure. • Among the newly formed states, Chhattisgarh has the maximum percentage of households who live without sufficient food followed by Jharkhand. • Jharkhand performs much better on this front compared to its neighbours like West Bengal and Orissa. 61

c. Safe Drinking Water & Sanitation Facility If a household has access to piped drinking water, it is considered to have access to safe drinking water. While every household should have the provision of safe drinking water and basic sanitation facilities in its premises, this facility is not provided for the majority of households in rural areas and also in many parts of urban centres. The situation is grim in many states and well-governed states are those who would demonstrate a high proportion of rural and urban households enjoying such facilities. Table C.3 (c) Percentage Households using piped drinking water (2005-06) State Urban Rural Jharkhand 44.4 0 Bihar 19.8 1.2 Chhattisgarh 55.5 6.0 Orissa 51.7 1.9 West Bengal 67.0 9.5 India 71.0 27.9 Source : National Family and Health Survey-III • Urban Jharkhand performs much better than the urban Bihar in providing their people access to piped drinking water. However, situation in the rural Jharkhand is alarming with no household having access to piped drinking water. • Also both Bihar and Jharkhand have much lower coverage of piped drinking water as compared to the national average. 62

Table C.3 (d) Households having access to toilet facility in 2005-06 State Urban Rural Jharkhand 73.7 5.0 Bihar 73.0 16.2 Chhattisgarh 65.5 5.6 Orissa 58.9 11.3 West Bengal 90.5 44.8 India 83.1 25.9 Source : National Family and Health Survey-III • In terms of providing access to toilet facility to households in urban areas Jharkhand performs much better than its neighboring states of Orissa and Chhattisgarh. However, the coverage of toilet facility is abysmally low in rural areas of the state. • Jharkhand needs to develop the infrastructure facilities in sanitation and water supply which in turn will raise the health and standard of living of the people. 63

4. Health a. Infant Mortality Rate Infant mortality rate (IMR) refers to the percentage of infants dying before completing one year of age. Infancy is a stage when the human body is most susceptible to diseases, and therefore proper hygiene, care and nutrition are essential. The infant mortality rate can be significantly reduced through the dissemination of requisite health care for mother and child and is therefore a marker of a society’s socio-economic development. Reduction in infant mortality is a major policy goal and thus part of the strategy to achieve health for all in India. The ratio of Male IMR to Female IMR is an indicator of the extent of gender bias in the society – a higher ratio denoting a more equitable society. Table C.4 (a) Infant Mortality rate (IMR) Male Male Male IMR/Female IMR/Female IMR/Female State IMR(2005) IMR(2006) IMR(2007) IMR(2005) IMR(2006) IMR(2007) Jharkhand 50 49 48 0.74 0.88 0.96 Bihar 61 60 58 0.97 0.92 0.98 Chhattisgarh 63 61 59 0.98 0.95 0.95 Uttarakhand 42 43 48 0.77 0.95 0.98 West Bengal 38 38 37 0.97 0.93 0.97 Orissa 75 73 71 0.96 0.99 0.97 Maharashtra 36 35 34 0.92 0.97 0.94 Punjab 44 44 43 0.85 0.78 0.93 Tamil Nadu 37 37 35 0.90 0.97 0.94 INDIA 58 57 55 0.92 0.95 0.98 Source: SRS Bulletin, respective years • The infant mortality rate in Jharkhand has reduced marginally from 50 in 2005 to 48 in 2007. • Though the ratio of male to female IMR has increased during the same period, it is still below the national average. 64

• Among the new states, Chhattisgarh has the highest IMR. • Among the neighboring states, Orissa has very high IMR compared to others. b. Percentage of assisted births Percentage of births assisted by trained health professionals. Trained health professional includes the following: doctor, auxiliary nurse midwife, nurse, midwife, lady health visitor or other health professional. It does not include dais and other traditional attendants. Table C.4 (b) Percentage of Assisted Births across different states State 2002-04 2007-08 Jharkhand 26.7 25 Chhattisgarh 27.1 29.6 Uttarakhand 32.8 35.5 Bihar 25.2 31.9 Maharashtra 62.6 69.4 Punjab 64.2 77.1 Tamil Nadu 89.3 95.6 West Bengal 54.8 51.6 Orissa 40.3 50.9 India 48 52.6 Source: District Level Household Survey (DLHS III) • In Jharkhand, the percentage of assisted births has reduced marginally by 1.7 percentage points, since 2002-04. • In contrast, in Bihar this percentage has increased by 6.7 percentage points. • Other new states have shown better performance in this context where the percentage of assisted births has increased by average 2.6 percentage points thereby depicting improvement of health facilities provided in the state. 65

• Among the neighboring states, Orissa has shown remarkable improvement in health conditions prevailing than Jharkhand. • In Tamil Nadu, more than 95 percent of women are assisted by trained personnel during delivery. c. Estimated Death Rate The death rate gives the number of deaths during a year per thousand mid year population and is also known as the crude death rate. While the death rate gives only a rough indicator of the mortality situation, it accurately measures the impact of current mortality on population growth. Access to good quality health services is an important factor in reducing the death rate. Better household hygiene practices, access to sanitation, and water supply amenities aid in further reduction in death rate. Table C.4 (c) Death Rate across different states, 2007 State Death Rate Jharkhand 7.3 Bihar 7.5 Chhattisgarh 8.1 Uttarakhand 6.8 West Bengal 6.3 Orissa 9.2 Maharashtra 6.6 Punjab 7.0 Tamil Nadu 7.2 INDIA 7.4 Source: Sample Registration System (SRS) Bulletin • The average death rate of Jharkhand is slightly lower than that of India as a whole. • The death rate of Jharkhand is slightly more than that of Maharashtra, Punjab and Tamil Nadu. 66

• Amongst the newly formed states, Chhattisgarh has the highest death rate followed by Jharkhand. • Among the neighboring states, Orissa has a high death rate of 9.2 percent. 5. Education a. Literacy rate The Literacy Rate is measured as a percentage of population aged seven years and above who are able to read and write simple sentences. As per the Census, literacy is defined as the ability to read and write the person’s name and to form simple sentences. Higher literacy levels in a state denote rising socio-economic development and universal literacy is a crucial step towards achieving overall progress. Table C.5 (a) Literacy Rate across different states States 2002-04 2007-08 Jharkhand 56.4 62.1 Bihar 51 58.7 Chhattisgarh 60.7 65.7 Uttarakhand 71.2 79.1 Maharashtra 73.5 74.7 Punjab 70.6 75.9 Kerala 89.3 92.9 West Bengal 68.7 72.1 Orissa 62.8 69.2 India 67.2 71.9 Source: District Level Household Survey III, II • Jharkhand has a comparatively lower literacy rate with just 62% people being literate and falls below the all India figure. • Though the state performs better than its mother state, Bihar, it trails behind the newly formed states. Amongst the three, Uttarakhand fares the best with almost three fourths of the population being literate. 67

• The high performing states like Maharashtra, Punjab, West Bengal, have more than 70% literate population. • In other words, Jharkhand has a long way to go if it is to achieve its socioeconomic development goals. The state should avail the benefits of various literacy campaigns introduced from time to time by the central government. b. Proportion of 10 plus children having completed Primary Education Primary schools are up to either standard IV or V in different states and as per the formal education system a child between the ages 9 and 11 years would have ordinarily completed the primary level of education. Thus the primary school completion rate is the percentage of children in the age group 10 to 12 years who have completed this level of education. This ratio measures educational attainment based on enrolment at the right age and timely completion of primary school. Thus a higher percentage of timely completion of primary schooling gives an indication that the programmes and plans of the government are effective. Table C.5 (b) Percentage of Children having completed primary schooling across different states, 2004-2005 Primary Completion States Rate (%) Jharkhand 34.84 Bihar 28.04 Chhattisgarh 32.16 Uttarakhand 44.87 Maharashtra 49.08 Punjab 47.90 Kerala 61.86 West Bengal 49.81 Orissa 49.67 India 42.50 Source: NSSO 61st round (Employment & Unemployment) 68

• The earlier the children complete primary school, the more they can learn at higher levels of schooling. In Jharkhand barely a third of the 10 year olds have completed primary education. Though it is better than some neighboring states in this respect, its primary educational system needs strengthening to achieve levels as in other parts of the country • Among the newly formed states, Uttarakhand has the highest proportion of children completing primary schooling within the given age group followed by Jharkhand. • Jharkhand also falls far below other neighbouring states like West Bengal and Orissa. • Jharkhand also falls behind the high-ranking states like Maharashtra and Punjab. • Primary school completion rate is a very good proxy for the quality of education that is being provided in state schools. The figures suggest that primary educational institutions are not being able to provide education that will (i) retain the children in school, and (ii) provide them with education that their parents consider beneficial enough to send their children to school. c. Ratio of girls to boys enrolled in primary and middle school Gender disparity in education is a concern in India. This ratio measures disparity at two levels of formal education. It is the ratio of number of girls enrolled in a particular level to the number of boys enrolled in a particular level. Table C.5 (c) Ratio of girls to boys enrolled in primary and middle school States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Jharkhand 0.7 0.6 0.8 0.8 0.8 0.8 Bihar 0.6 0.7 0.7 0.7 0.7 0.7 Chhattisgarh 0.8 0.9 0.9 0.9 0.8 0.9 Uttarakhand 1 1 1 0.9 0.9 1.0 West Bengal 0.9 0.9 1 1 0.9 1.0 Orissa 0.7 0.9 0.9 0.9 0.9 0.9 India 0.8 0.8 0.9 0.9 0.9 0.9 Source: Selected Educational Statistics, respective years 69

• The ratio of girls to boys enrolled in primary and middle school for Jharkhand has remained stagnant since the last 3 years. The ratio is below the India level. • The ratio of girls to boys in Jharkhand is higher than its mother state Bihar. • Among the new states, Uttarakhand has minimum gender bias in the state which is reflected in the higher ratio of girls to boys enrolment in primary and middle schooling. Uttarakhand is followed by Jharkhand. 70

d. Pupil Teacher Ratio The pupil teacher ratio is defined as the number of students attended by a teacher. It reflects the degree up to which a teacher can devote personalized attention to his pupils. Adequate trained teachers are essential for the educational upliftment. It takes into account all the teachers teaching and the students enrolled in higher educational levels i.e. secondary, senior secondary or intermediate schools. Table C.5 (d) Pupil Teacher Ratio across different states State 2001-02 2002-03 2003-04 2004-05 2005-06 Jharkhand 24 26 24 24 28 Bihar 18 20 18 19 17 Chhattisgarh 31 32 32 32 36 Uttarakhand 35 38 37 38 44 West Bengal 31 30 29 30 29 Orissa 18 17 17 17 18 INDIA 21 22 22 25 26 Source: Selected Educational Statistics, respective years • Lower pupil teacher ratio is an indication of better quality of education. The pupil teacher ratio in Jharkhand has shown a marginal increase over the years, which calls for attracting talented and committed individuals to take up teaching as profession. • Among the new states, Jharkhand has the lowest pupil teacher ratio followed by Chhattisgarh and Uttarakhand. • Jharkhand performs at par with India in terms of Pupil-Teacher Ratio at the higher educational level. 71

e. Total expenditure of Education Department on Primary & Middle Level This variable measures the per person expenditure made by the government on primary and middle level education. As a social and development sector issue it is important that the government spends adequately on this aspect. Table C.5 (e) Total Expenditure on primary and middle level education per child in 6-14 years age group, (Rs. Per Person) State 2005-06 Jharkhand 1,821 Bihar 1,393 Chhattisgarh 1,788 Maharashtra 2,301 Punjab 1,189 Orissa 1,743 West Bengal 1,279 India 1,810 Source : Analysis of budgeted expenditure on education, Ministry of HRD • The expenditure on primary and middle education per person for Jharkhand is higher than that of Bihar. The expenditure is also higher than that of Chhattisgarh in 2005-06. • At about 1800 Rupees per head, the expenditure incurred by the Jharkhand state government on primary and middle school education is much less than that of higher-ranking states like Maharashtra. • The expenditure incurred by the state is a little higher than the national average. 72

6. Agriculture a. Net irrigated area/net sown area Agriculture productivity is dependent on irrigation of the sown area. Higher percentage of net irrigated area to net area sown increases the productivity of the land and mitigates tjhe negative impact of rainfall variation. For sustained agricultural growth, the availability of water is crucial and this is one aspect on which many states have failed to deliver. Table C.6 (a) Net Irrigated Area over Net Sown Area (%) States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Jharkhand 9.2 9.2 9.2 9.2 9.3 9.3 Bihar 61.1 60.5 60.1 60.1 54.5 56.9 Chhattisgarh 24 22.5 22.8 25.3 26.2 27.1 Punjab 95.4 98.1 95.2 95.2 95.2 94.9 Tamil Nadu 54.2 50.3 45.8 51.7 55.7 56.4 Uttarakhand 44.5 44.9 44.5 44.5 45 44.7 Source: Ministry of Agriculture, Govt. of India • Jharkhand does not fare well in terms of irrigation of its agricultural land. Less than 10 percent of the total sown area of Jharkhand is under irrigation and this ratio has been almost stagnant over last five years. • Economically better performing states like Punjab have as high as 95 percent of their sown area under irrigation. • Among the newly formed states, Uttarakhand has the highest percentage of their sown area under irrigation followed by Chhattisgarh. • The relatively low irrigated area for the state will continue to be a constraint on its agricultural development. However, since it receives high seasonal rains, efforts should be made to develop tanks, ponds and lakes across the state. These will not only help in maintaining high ground-water levels, but will also be used directly for irrigation purposes. 73

b. Food grain yield Agricultural productivity is measured through yield of basic food grains which includes cereals and pulses. Table C.6 (b) Food grain yield (Kilograms per hectare) 2001- States 02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 1199 1053 1490 1,479 1,077 1,550 1,588 Bihar 1664 1568 1600 1,535 1,311 1,656 1,540 Chhattisgarh 1118 651 1228 1,278 1,111 1,148 1,239 Orissa 1399 716 1341 1,414 1,349 1,359 1,500 Punjab 4040 3828 3929 3,943 3,986 4,017 4,252 Uttarakhand 1742 1508 1672 1,649 1,548 1,760 1,675 West Bengal 2424 2374 2422 2,444 2,423 2,511 2,476 Tamil Nadu 2209 1612 1549 1,536 1,847 2,610 2,178 Maharashtra 874 846 897 917 948 940 1,166 India 1734 1535 1731 1,744 1,716 1,756 1,854 Source: Ministry of Agriculture, Govt. of India • Foodgrain yield in Jharkhand per hectare area is marginally higher than its mother state Bihar. • Among the newly formed states, Uttarakhand has the highest food grain yield followed by Chhattisgarh. . • Jharkhand has however higher food-grain yield per hectare compared to Maharashtra which is perceived to be an economically better performing state. • Jharkhand is far behind the agriculturally rich states like Punjab or West Bengal. It needs to improve its agriculture productivity which is essential for the benefit of the masses. c. Bank Credit to Agriculture 74

Farmers’ access to resources is regarded as an important input for increasing productivity. Credit to the agricultural sector has always been a priority sector for banks as loans for agricultural needs are provided at cheaper rates of interest. A high growth rate of credit to the farmers can denote better prospects for agricultural output and this year the government has planned for trebling farm credit in a bid to revive growth in the agricultural sector. Table C.6 (c) Bank credit to Agriculture (Rs. lakh) State 2007 2008 Jharkhand 123,775 137,462 Bihar 664,689 678,349 Chhattisgarh 188,533 258,232 Maharashtra 2,439,864 2,652,043 Orissa 381,670 477,133 Uttarakhand 140,361 174,280 Punjab 1,317,621 1,535,239 West Bengal 815,019 940,252 India 20,581,79 1 27,414,112 Source : Reserve Bank of India • Bank credit to agriculture is considerably lower in Jharkhand as compared to economically developed states like Punjab, Maharashtra. • Among the new states, bank credit to agriculture is considerably higher in Chhattisgarh followed by Uttarakhand. • The lower amount of agricultural loan extended may affect the agricultural productivity further as there might be a consistent financial constraint on investment in agriculture. • Improving agriculture productivity would require greater investments in farm inputs, this will require greater lending activity in the future. 75

7. Investment Scenario a. Total outstanding Bank Credit The amount of bank credit utilized in a state measures the extent to which funds are being used for economic activity as all sectors of the economy – agriculture, industry, trade etc – take recourse to bank credit to meet their investment needs. In a poor country where resources are scarce, the banking system is a tool which is used to promote development, particularly as credit is made cheaper for priority sectors. Over time, the growth of total bank credit is a pointer to the expanding economic growth in the region as a higher rate denotes higher demand for financing economic activity. Table: D.7(a) Total outstanding Bank Credit CAGR(%) for Total Bank Credit Utilized States 2001 2008 (2001-08) Jharkhand 473,335 1,738,310 20.42 Chhattisgarh 374,897 2,045,902 27.43 Uttarakhand 223,333 1,158,477 26.51 Bihar 554,718 3,054,865 27.60 West Bengal 2,947,559 12,551,150 23.00 Orissa 626,234 3,362,388 27.14 India 53,843,379 241,700,652 23.93 Source : Reserve Bank of India • The compound annual growth rate (CAGR) for total commercial bank credit utilized in Jharkhand is comparatively lower than its neighboring states. • The growth rate is also lower than the national average. • The CAGR for total commercial bank credit utilized among the newly formed states is highest in case of Chhattisgarh followed by Uttarakhand. 76

b. Per Capita Gross State Domestic Product GSDP is the market value of all the goods and services in the current year in the state. It is one of the widely used measures of the economic growth. Table C.7 (b) Per Capita GSDP at current prices across states (in Rs.) 2000-200 2002-200 State 1 3 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 12,850 13,770 15,070 19,840 21,620 23,315 22,743 Bihar 6,850 7,610 7,690 8,320 8,840 10,228 12,231 Chhattisgarh 14,480 15,370 18,260 20,630 22,870 25,211 28,899 Uttarakhand 18,670 21,420 23,310 25,250 28,140 30,928 NA Maharashtra 27,700 30,120 33,430 36,940 41,510 45,987 56,411 Punjab 32,370 32,960 35,180 37,130 39,520 47,126 52,266 Tamil Nadu 23,760 25,010 27,530 31,170 34,420 37,478 46,034 Source: CSO • The per capita GSDP of Jharkhand is lower than the other new sates. • Jharkhand is however much above its mother state Bihar in terms of per capita GDP. • However, it is far below the developed states like Maharashtra and Punjab. • Among the new states, Uttarakhand takes the lead followed by Chhattisgarh. 77

c. State Per Capita Income and Growth in Per Capita income Change in per capita income over time is measured by the annualized average growth rate of per capita income in a given period. It can be measured in current prices, which will express change in per capita income in nominal terms, or at constant prices, which adjusts for inflation to give a more realistic picture of the improvement in standard of living over time. The base year, presently, is 1999-2000 for constant prices. If the growth in population slows down over the years, this will result in a higher growth in income per capita and thus states which have been doing well at controlling population will perform betters in raising personal income levels, other things remaining equal. Table C.7 (c): Growth in Per Capita income (%) (2001-2008) States Growth Growth per year per year in Per in Per Capita Capita Income Income in in Current Constant Prices Prices Jharkhand 10.4 6.5 Bihar 8.2 4.5 Chhattisgarh 13.0 6.2 West Bengal 9.6 5.1 Uttarakhand# 10.8 7.1 Maharashtra 11.1 6.5 Tamil Nadu 11.0 6.5 # Growth in Uttarakhand based on period 2001-07 Source: CSO • Jharkhand has much higher growth rate in per capita income than its mother state, Bihar during 2001-08. • Among the newly formed states, Uttarakhand has the highest growth in per capita income followed by Jharkhand and Chhattisgarh. • Although growth of per capita income in Jharkhand is higher than developed states like Maharashtra and Tamil Nadu, this cannot be taken to conclude that Jharkhand is in a better 78

position than these states, since the developed states already have much higher per capita income though the growth is less. d. Sectoral Shares in GSDP Income in the state originates from various sectors – the primary sector: agriculture (including livestock products), forestry, fishing, mining activities; the secondary: manufacturing activities, construction, electricity, gas and water supply; the services sector: transportation, storage and communication, trade, hotels and restaurants, finance, banking and insurance, real estate, public administration etc. Traditionally the process of development has seen the contribution of the primary sector declining as secondary sector activities grow in importance. Recently, the surge in the services sector has added considerable value to economic activity in the country. Less developed states continue to have relatively larger shares of income still coming from the primary sector. Table C.7(d) Sectoral shares in GSDP (%) Primary Sector Secondary Sector Tertiary Sector States 2001-02 2007-08 2001-02 2007-08 2001-02 2007-08 Jharkhand 29.3 21.9 35.3 39.5 35.5 38.6 Bihar 37.9 24.8 11.2 15.7 51.0 59.5 Chhattisgarh 37.2 31.7 20.8 34.3 42.0 33.9 Uttarakhand # 30.1 20.7 18.8 29.5 51.1 49.8 Punjab 35.0 32.5 22.7 24.7 42.3 42.8 West Bengal 31.3 24.8 15.2 19.4 53.5 55.8 Maharashtra 16.2 14.5 25.7 26.8 58.2 58.7 Source : CSO # Data for Uttarakhand is for the year 2006-07 due to the non-availability of data for 2007-08 • The share of primary sector in Jharkhand has decreased by 7.4 percentage points during 2001-02 to 2007-08. • The rise in share of secondary sector in GSDP has been far higher in case of the Chhattisgarh and Uttarakhand as compared to Jharkhand. • Jharkhand’s share of the secondary sector is more than that of the economically developed states like Punjab and Maharashtra. • The share of secondary sector is almost three times more than its mother state Bihar. 79

• Among the new states, Chhattisgarh has the highest share in primary sector followed by Jharkhand. The share of secondary sector is highest in Jharkhand followed by Chhattisgarh. As far as tertiary sector is concerned, Uttarakhand leads the other two states. e. Public Administration GSDP Per capita public administration GSDP is the ratio of the GSDP contribution from public administration to the population of the state for the current year. This ratio captures essentially the per capita expenditure incurred on public administration. Table C.7 (e) Public Administration GSDP across states (Rs per person) 2002-200 State 2001-02 3 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 866 570 997 886 1,026 1,187 910 Bihar 539 476 561 574 597 723 840 Chhattisgarh 898 817 676 740 791 1,002 1,021 Uttarakhand 1,060 1,134 1,269 1,343 1,555 1,755 NA Maharashtra 1,247 1,332 1,401 1,574 1,789 1,898 2,361 Punjab 1,485 1,658 1,795 1,844 1,990 2,101 2,343 Tamil Nadu 1,350 1,311 1,371 1,481 1,670 1,963 1,911 Source: CSO • In Jharkhand per capita public administration GSDP had increased over the years. It spends more than that spent by its mother state Bihar. • Among the new states, Uttarakhand spends highest portion of its GSDP on public administration followed by Jharkhand (based on 2006-07 data) • Jharkhand is far behind the economically developed states like Maharashtra and Punjab. 80

f. Gross Capital Formation It is the aggregate of fixed assets purchased in the current, stocks of materials and finished goods in the current year, and work-in-progress in the current year. Gross Capital Formation measures the total of gross additions to fixed assets and changes in stocks. Estimates of capital formation cover (i) durable goods –the lifetime of which is one year or more- acquired by producers (ii) major improvements and alteration of the durable goods, (iii) new construction (iv) reclamation and improvement of land and the development and extension of timber tracts, mineral exploration, orchards, plantations etc. and (v) breeding stocks, draught animals, dairy cattle and the like. It is therefore an indicator of the extent to which productive assets are being built up in the state by the public sector, the private corporate sector and the household sector. Supra-regional sectors such as railways, banking, communications and Central Government also contribute to the building of capacity in the state. As larger states would show higher levels of capital formation, adjusting for population normalizes the data for comparison across states. Table C7 (f) Per Capita Gross Capital Formation, 2005-06 Gross Capital formation per person (Rs. per State person) Jharkhand 1,769 Bihar -64 Chhattisgarh 2,475 Uttarakhand 2,257 Maharashtra 2,813 Punjab 1,666 Tamil Nadu 2,944 West Bengal 520 Orissa 2,060 India 1,544 Source: Annual Survey of Industries • Jharkhand has higher per capita gross capital formation than that of India, the national average. 81

• Among the new states, Chhattisgarh has the highest gross capital formation followed by Uttarakhand. • Jharkhand has more than ten times of gross capital formation than its mother state Bihar. The greater investment level is good progress for the future, provided it is sustained. • Jharkhand is much better off than neighbouring states like West Bengal when it comes to gross capital formation. g. Commercial Bank Credit Loans disbursed by the financial sector form a crucial input in growth of economic activity as they provide funds enabling productive activity. The indicator used here to, per capita credit granted by the commercial banks in the region, is a measure of the access to financial resources within the state. Table C.7 (g) Commercial Bank Credit across states (Rs per Person) State 2005-06 2006-07 2007-08 Jharkhand 3,641 4,048 5,024 Bihar 1,553 1,974 2,042 Chhattisgarh 4,521 5,272 6,560 Uttarakhand 6,366 8,131 9,729 Maharashtra 48,527 61,166 77,315 Punjab 15,937 21,192 25,388 Tamil Nadu 21,686 28,294 34,367 Orissa 5,457 6,891 7,727 West Bengal 8,434 11,264 13,542 India 13,655 17,249 21,088 Source:. Reserve Bank of India • Jharkhand has more than two times the commercial bank credit than Bihar on a per capita basis. 82

• Jharkhand is much behind the states of Maharashtra, Punjab and Tamil Nadu in terms of commercial bank credit. • Among the newly formed states, Uttarakhand has the highest amount of commercial credit per person followed by Chhattisgarh. 83

8. Consumer markets a. Households in the top & bottom income levels The households who earn less than Rs. 75,000 annually fall under the bottom income category and those households who earn more than Rs. 3,00,000 annually fall under the top income category. This indicator describes the extent of inequality prevalent in the region. Table C.8 (a) Percentage of households in the bottom and top income categories, 2008 States Bottom Category Top Category Jharkhand 50.6 8.8 Bihar 78.6 1.6 Chhattisgarh 48.5 10.5 Maharashtra 25.1 20.0 Orissa 60.0 5.0 Punjab 21.8 17.6 Tamil Nadu 33.4 10.7 Uttarakhand 22.1 10.7 West Bengal 43.0 11.0 India 40.3 10.7 Source Market Skyline of India,2008 • Jharkhand has a very high percentage of households in the bottom category thereby depicting its poor socio economic background. However this category has a lower share than in Bihar, where income levels are much lower. • Among the newly formed states, Uttarakhand has lowest percentage of households falling under the bottom category followed by Chhattisgarh. Uttarakhand has a higher percentage of households under the top category compared to the other two states. . • Jharkhand is far behind economically advanced states like Maharashtra and Punjab where only 25 percent and 22 percent of the households earn less than Rs. 75,000 per annum. 84

b. Per Capita Expenditure The per capita expenditure of a region gives a clear picture of the consumer patterns of the residents of the state. This indicator is important to understand the nature of consumer markets in the state. Table C.8 (b) Annual Per Capita Expenditure across states (Rs per person), 2008 State Rural Area Urban Area Jharkhand 16,300 38100 Bihar 6800 12800 Chhattisgarh 18300 44000 Maharashtra 21300 64100 Orissa 17100 35100 Punjab 23500 41100 Tamil Nadu 18400 38400 Uttarakhand 21400 34300 West Bengal 19500 44700 India 16200 41100 Source Market Skyline of India,2008 • Jharkhand’s per capita expenditure is much less compared to most other states but it performs much better than its parent state Bihar. • Among the newly formed states, Uttarakhand and Chhattisgarh has the highest annual per capita expenditure in rural area and urban area respectively. • The annual per capita expenditure of Jharkhand is much less than economically developed states like Maharashtra and Punjab. 85

c. Households with T.V. Available Television has become one of the most important sources of entertainment and information across the country, amongst all economic classes. The ownership of television requires significant expenditure- including the cost of television, access to electricity, and the cost of cable connection. The penetration of television reflects the affluence level of an area. Table C.8 (c) Percentage of Households owning TV sets, 2001 State 2001 2006 Jharkhand 17 24 Bihar 9 15 Chhattisgarh 22 28 Orissa 16 24 West Bengal 27 32 Punjab 68 78 Uttarakhand 43 53 India 32 41 Source: Census of India,2001 and Market Skyline of India, 2006 • Only about one-fifths of the total households in Jharkhand own televisions. This is much lower than the all India average • Though it has increased in 2006 compared to that of 2001, still the figure is much lower than the all India figure. • With respect to Bihar, Jharkhand has higher percentage of households owning TV sets. However, when compared with the newly formed states Jharkhand trails behind with Uttarakhand having the highest percentage. 86

• Affluent states like Punjab outperform Jharkhand by a huge margin with more than two-fifths of the households in the state owning TV sets. • TV penetration is almost half the all-India average. This not only reflects lower consumption of power but also the lack of entertainment and communication channels to large masses of the population. Apart from lower prices, availability of stable electricity is an important factor in television penetration. 87

d. Vehicular Population Owning a vehicle denotes some level of affluence of the owner and the type of vehicle owned explains the degree of affluence. As the state economy grows and matures, people begin by purchasing two wheelers and then move on to fourwheelers. Table C.8 (d) Percentage of household owning two-wheelers and four wheelers Four wheelers Two wheelers(excluding bicycles) States 2001 2006 2001 2006 Jharkhand 2 2 9 14 Bihar 1 1 4 5 Chhattisgarh 1 2 11 17 Uttarakhand 3 5 12 20 Punjab 32 40 6 9 Orissa 1 1 8 13 West Bengal 2 3 5 10 India 3 4 12 18 Source: Census of India, 2001 and Market Skyline 2006 • Jharkhand has much more private vehicle ownership than Bihar. The penetration is almost double in case of car owners. • Jharkhand is showing an increasing trend in terms numbers of two wheelers and four wheelers when comparing the year 2006 with 2001. • However the penetration is less than all India penetration. The penetration of cars in Jharkhand is just the half of all India penetration of cars • When we compare Jharkhand with West Bengal one very interesting fact that is observed is that Jharkhand has better penetration of two wheelers than West Bengal, but the picture gets reversed in the case of penetration of four wheelers. 88

• The similar picture comes out in case of Jharkhand and Chhattisgarh as well but this time Chhattisgarh has better penetration of two wheelers and Jharkhand has better penetration of cars. 89

9. Fiscal Status a. Per Capita Revenue Receipts Revenue receipts of a state comprise those receipts to the government that do not incur any obligation to be returned at a future date. At the state level, Revenue Receipts include the following: Tax revenue, Non-tax revenue, and Grants from Centre and transfer from funds. Table C.9 (a) Revenue Receipts (Rs. per person) StateYear 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 2,264 2,700 2,666 2,572 2,838 3,391 4,301 Bihar 1,231 1,369 1,573 1,919 2,102 2,470 2,640 Chhattisgarh 2,100 2,555 2,762 3,396 3,527 5,155 5,351 Orissa 1,915 2,275 2,524 3,044 3,329 4,539 5,020 Uttarakhand 3,219 3,705 4,054 5,469 6,480 7,083 8,257 West Bengal 1,813 1,790 2,021 2,446 2,528 3,117 4,495 India 2,486 2,685 2,986 3,570 3,927 4,708 5,289 Source: RBI • Revenue receipts per person have shown an increasing trend in Jharkhand over the years. A prominent reason may be the transfer of Jamshedpur to Jharkhand. • Jharkhand has higher revenue receipts than its mother state Bihar. • Among the newly formed state, Uttarakhand has the highest amount revenue receipts per person followed by Chhattisgarh. 90

b. Per Capita Revenue Expenditure Revenue expenditure of states is incurred for carrying out the day to day expenses in a specific accounting period. It includes non-developmental expenditure, development expenditure and transfer to funds. The revenue expenditure per person shows how much amount is spent per person in an accounting period. It basically includes the expenditure on administration, wages, maintenance and consumables. Table C.9 (b) Per Capita Revenue Expenditure(Rs. per person) StateYear 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 2,226 2,821 2,615 2,963 3,225 3,755 4,301 Bihar 1,513 1,660 1,702 1,958 2,087 2,552 2,640 Chhattisgarh 2,359 2,608 3,059 3,581 3,639 4,430 5,351 Orissa 2,684 2,700 2,903 3,627 3,615 4,347 5,020 Uttarakhand 3,337 4,231 4,911 6,637 6,948 6,713 8,257 West Bengal 2,918 2,854 3,134 3,521 3,689 4,088 4,495 India 3,061 3,213 3,563 3,982 4,160 4,757 5,289 Source: RBI • Jharkhand has much higher per capita revenue expenditure than Bihar, but the increase for both the states shows a similar rate. • Among the new states, Uttarakhand has the highest per capita revenue expenditure followed by Chhattisgarh. • A lower revenue expenditure of Jharkhand shows that its current expenditure is under control. 91

b. Per Capita Capital Expenditure Capital expenditure is the expenditure which is incurred on capital goods. In other words, it means expenditure incurred for the acquisition of any long term asset, incurred with a long term perspective. Table C.9 (c) Per Capita Capital Expenditure (Rs per person) StateYear 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 718 755 1,745 2,269 2,176 2,550 2,955 Bihar 278 441 1,338 1,452 1,471 1,589 1,462 Chhattisgarh 341 609 11,325 9,760 9,620 9,470 19,729 Orissa 594 877 5,504 4,450 3,353 3,658 1,352 Uttarakhand 548 1,350 29,301 9,373 9,860 13,532 13,732 West Bengal 584 561 11,919 10,209 9,607 16,467 18,728 India 607 814 9,000 7,442 6,389 12,538 14,235 Source RBI • If we look at the figures we find an increasing trend in terms of capital expenditure of Jharkhand. And the trend holds equally good for most of the states. • Jharkhand has a higher per capita capital expenditure than its mother state Bihar. This implies that a considerable portion is spent on building assets. • Among the newly formed states, Chhattisgarh has the highest per capita capital expenditure compared to the other two. • Incurring higher capital expenditure is a positive sign for the growth of a state provided it is divided equally among all the sectors. 92

d. Expenditure on Social Services The level of Social Sector expenditure has crucial implications for the long-term prospects of the economy. This is a crucial component of developmental expenditure as it encompasses social services including education and health, rural development, food storage and warehousing. Table C.9 (d.i) Percentage of Revenue Expenditure on Social Services State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 40.88 38.9 33.91 35.74 39.83 41.3 38.35 Bihar 35.25 33.54 35.6 37.12 35.68 37.03 38.51 Chhattisgarh 38.95 37.73 34.37 36.01 37.84 40.92 39.95 Orissa 33 34.54 34.15 31.8 34.15 33.95 34.23 Uttarakhand 39.45 39.96 38.84 37.99 38.75 37.27 39.28 West Bengal 35.49 32.81 31.2 31.81 32.15 34.32 35.53 India 34.19 33.25 31.78 33.03 33.23 35 35.90 Source: RBI Table D.9 (d.ii) Percentage of Capital Expenditure on Social Services State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Jharkhand 12.7 18.4 8.3 7.7 9.1 12 15.74 Bihar 5.7 5.7 2.4 1.6 1.6 5.7 7.46 Chhattisgarh 15 10.6 0.8 1.6 2.1 2.8 1.86 Orissa 6.7 5 0.6 0.9 1.3 2.4 11.61 Uttarakhand 5.8 5.6 0.5 2.7 2.6 2.8 3.85 West Bengal 3.2 2.7 0.1 0.2 0.6 0.4 0.53 India 9.5 8.9 1 1.6 2.4 1.4 1.60 Source: RBI 93

• Jharkhand spends a lower proportion of its revenue expenditure on social services than its parent state Bihar. • Among the newly formed states, Jharkhand spends a lower portion of its revenue expenditure on social services than Chhattisgarh and Uttarakhand. However, Jharkhand spends larger portion of its capital expenditure on social services than the other two. • Jharkhand also spends more revenue as well as capital expenditure on social compared to its neighbouring states like West Bengal and Orissa. 94

e. Per Capita Gross Fiscal Deficit Gross Fiscal Deficit (GFD) is the difference between the total revenue in the current year and total expenditure by the government. State governments’ GFD can be broadly broken up into the following components: revenue deficit, capital outlay and net lending. Table C.9 (e) Gross Fiscal Deficit (Rs per person) States 2005-06 2006-07 2007-08 Jharkhand 1,701 1,757 2,042 Bihar 566 749 381 Chhattisgarh 589 617 750 Maharashtra 1,630 1,507 985 Orissa 371 237 284 Punjab 1,438 2,126 1,879 Uttarakhand 2,629 1,944 1,627 West Bengal 1,330 1,365 1,359 India 1,041 1,009 966 Source: RBI • The deficit per person is high currently in Jharkhand compared to most states. However, for it to remain at low levels, sustained efforts should be pursued against expanding state government employment, wasteful expenditures, and ensuring timely completion of investment projects. • The GFD of Jharkhand is also higher than its neighbouring states of West Bengal and Orissa. • Among the newly formed states, Uttarakhand has the highest GFD per person followed by Jharkhand. 95

Section IV: The Districts of Jharkhand At inception Jharkhand had 18 districts. Over the years 4 new districts were added - Sareikela and Kharsawan, Jamtara, Latehar and Simdega. Further two major subdivisions namely Khunti and Ramgarh of Ranchi and Hazaribagh district respectively have been created as new districts in October 2007. At present the state is divided in 24 districts. Jharkhand is endowed with vast natural resources, a widevariety of minerals ranging from iron ore, coal, copper ore, mica, bauxite, graphite, lime stone, uranium and other minerals. It is the leading producer of minerals in the country. Ranchi is the largest district of the state and is rich in coal, limestone and asbestos, while Bokaro is famous for the largest steel plant of the country owned by SAIL. Paschim Singhbhum is blessed with mineral wealth, especially iron ore and manganese, while Purbi Singhbhum is known for Jamshedpur, the first steel city of India- the Tata Steel plant. In this section, we compare the relative performance of the districts based on various socio- economic parameters. However the district level comparison has been done between 22 old districts only since the data for the newly formed districts are as yet not available. Some of the parameters we have explored include safe drinking water, birth rate, sex ratio, literacy rate, mobile connections and ownership of TV and motor vehicles. The results show that most districts of Jharkhand have significant improvements to make with respect to socio-economic factors before they can best utilize the potential of their human resources. Another fact that comes to light is the wide disparities amongst districts. Dhanbad, Bokaro, Ranchi and Purbi Singhbhum are found to be performing well under most heads, whereas Godda, Gumla, Garhwa, Deogarh and Pakaur are among the laggards. 96

1. Health and Civic Attainment Coverage of health and basic facilities such as proper sanitation facilities is one of the core responsibilities of any state. The following section discusses Jharkhand’s performance at district level in this area. a. Access to proper sanitation facility Proper sanitation facility has been considered as one of the basic necessities for good health. Ensuring better sanitation facility is not only implied but also the ethical duty of the state. This variable measures the percentage of households who have water closet/latrines. Table D.1 (a) Percentage of households with Water Closet/Latrine,2007-08 District Percentage of households with proper sanitation facility (%) Bokaro 36.9 Chatra 7.5 Deoghar 12.5 Dhanbad 29.1 Dumka 15.8 Garhwa 5.9 Giridih 6.8 Godda 5.0 Gumla 11.4 Hazaribagh 25.6 Jamtara 5.7 Kodarma 15.0 latehar 7.6 Lohardaga 15.1 97

Pakaur 7.0 Palamu 8.0 Paschim Singhbhum 17.1 Purbi Singhbhum 53.3 Ranchi 28.6 Sahibganj 8.1 Simdega 6.3 Saraikela 15.7 Source: District Level Household Survey 3, Ministry of Health and Family Welfare • As per DLHS 3, Purbi Singhbhum has the highest percentage of households with water closet/latrines. Other better performing districts include Bokaro, Dhanbad and Ranchi. • Districts like Garhwa, Jamtara and Godda have least share of households which can access the basic sanitation facilities. b. Immunization of children This variable looks at percentage of immunization of children between 12 to 35 months. Complete immunization here implies vaccination against diseases like tuberculosis, diphtheria, whooping cough (pertussis), tetanus, polio and measles. This indicator reflects the extent of availability of better health facilities and awareness about children’s health. Table D.1 (b) Percentage of Children 12-35 months fully immunized (2008-09) Children 12-35 months fully District immunized Bokaro 51.9 Chatra 23.2 Deoghar 8.4 Dhanbad 54.9 98

Dumka 15.5 Garhwa 37.2 Giridih 43.2 Godda 6.6 Gumla 25.8 Hazaribag 72.8 Kodarma 38.1 Lohardaga 61.1 Pakaur 46.7 Palamu 40.0 Pashchimi Singhbhum 13.9 Purbi Singhbhum 27.3 Ranchi 47.1 Sahibganj 31.9 Source: Indian Development Landscape, Indicus Analytics, 2008 • Among the available data set, districts like Hazaribagh, Lohardega and Dhanbad have comparatively better health conditions compared to others with more than 50 percent of the children being fully immunized. • On the other hand, the districts of Deoghar, Godda and Dumka have performed poorly with less than 20 percent of the children being fully immunised. 2. Education a. Literacy Rate Literacy Rate is defined as the percentage of literate population aged seven years and above. As per the Census of India, literates are those who can read and write their name and can form simple sentences. Table D.2 (a) Literacy rate across different Districts in Jharkhand, 2007-08 99

District Literacy Rate Bokaro 72.8 Chatra 58.7 Deoghar 62.5 Dhanbad 72.7 Dumka 61.5 Garhwa 58.5 Giridih 57.2 Godda 50.3 Gumla 62.4 Hazaribagh 69.5 Jamtara 57.2 Kodarma 63.7 latehar 63.3 Lohardaga 65.6 Pakaur 44.0 Palamu 62.9 Paschim Singhbhum 69.1 Purbi Singhbhum 76.5 Ranchi 70.4 Sahibganj 45.9 Simdega 64.9 Saraikela 67.4 Source: District Level Household Survey 3, Ministry of Health and Family Welfare • Purbi Singhbhum has the highest literacy rate among the districts of Jharkhand followed by Bokaro and Dhanbad. Ranchi, the capital of Jharkhand has also shown better performance in terms of percentage of literates. 100

• Lowest literacy rates in Jharkhand are prevalent in the districts of Godda, Sahibganj and Pakaur. b. Pupil Teacher Ratio The pupil teacher ratio is the number of students per teacher. It takes into account all the teachers teaching the students enrolled in classes I to VIII. This ratio shows the average number of students every teacher is teaching. It reflects the degree up to that a teacher can devote personalized attention to his pupils. The lower the ratio, the better it is for developing the educational standard of a particular area since lesser number of students will get attention by a teacher. Adequate trained teachers are essential for the educational upliftment in a region. Table D.2 (b) Pupil Teacher Ratio across different Districts in Jharkhand (2008-09) District Ratio District Ratio Bokaro 119 112 Kodarma Chatra 115 Lohardaga 107 Deoghar 88 Pakaur 81 Dhanbad 74 Palamu 105 Dumka 89 Pashchimi Singhbhum 28 Garhwa 105 Purbi Singhbhum 75 Giridih 125 Ranchi 81 Godda 67 Sahibganj 67 Gumla 64 Hazaribag 125 Source: Indian Development Landscape, Indicus Analytics, 2008 • Pupil Teacher Ratio is lowest in the district of Paschhim Singhbhum, which gives an indication of the better education conditions prevailing in the district. Other districts performing better are Godda, Gumla and Sahibganj. • Districts like Giridih, Chatra, Bokaro and Hazaribagh have a very high Pupil Teacher Ratio thereby displaying poor education conditions in these districts. 101

3. Demography a. Crude Birth Rate Crude birth rate measures the number of live births during a particular year per thousand mid year population. It is one of the basic indicators of population growth. India’s crude birth rate has been falling and stands at about 25 per thousand population. Table D.3 (a) Crude Birth Rate (per thousand of population), 2008 District Birth rate District Birth Rate Bokaro 24.4 Hazaribag 28.4 Chatra 32.3 Kodarma 31.4 Deoghar 31.5 Lohardaga 31.2 Dhanbad 23.1 Pakaur 33.2 Dumka 27.1 Palamu 32.9 Garhwa 35.7 Pashchimi Singhbhum 26.8 Giridih 33.9 Purbi Singhbhum 20.9 Godda 29.8 Ranchi 25.0 Gumla 29.1 Sahibganj 33.6 Source: Indian Development Landscape, Indicus Analytics, 2008 • Generally the crude birth rate in Jharkhand is not very low. Among the districts Purbi Singhbhum has the lowest crude birth rate of 20.9 per thousand population, while Garhwa has a very high crude birth rate of 35.7 per thousand population. b. 0-6 year Age Group Sex Ratio Child sex ratio measures the number of female per 1000 male children in 0-6 age group. This ratio is indicative of discrimination against the girl child starting from birth to her overall upbringing. It 102

specifically gets reflected in her access to food, nutrition, health care, and medical support services. The child sex ratio of Jharkhand as a whole is 965 females per 1000 males. Table D.3 (b) 0-6 years Age sex ratio District Sex ratioDistrict Sex ratio Bokaro 946 Hazaribagh 965 Chatra 984 Koderma 972 Deoghar 973 Lohardaga 942 Dhanbad 953 Pakaur 968 Dumka 976 Palamu 974 Garhwa 960 Paschim Singhbhum 973 Giridih 961 Purbi Singhbhum 941 Godda 996 Ranchi 960 Gumla 977 Sahibganj 972 Source: Census 2001 • Among the districts of Jharkhand Godda has the highest 0 to 6 years sex ratio with 995 of girls per 1000 boys. Some of the other districts that perform better than the state average of 965 girls per 1000 boys are Chatra, Dumka, Gumla, Hazaribagh, Kodarma, Pakaur, Palamu, Paschim Singhbhum, Sahibganj and Deoghar . • Purbi Singbhum has the lowest child sex ratio at 940. As the child sex ratio is directly associated with mortality, it is indicative of discrimination against the girl child and the prevalence of female infanticide. Even better developed districts like Ranchi, Bokaro, and Dhanbad have very poor ratios, which is a cause for concern. 103

4. Poverty a. Head Count Ratio The Head Count Ratio is a measure of the percentage of population living below the poverty line and is defined as : HCR = q/n * 100 Where q= the number of persons below a predefined poverty norm (also called poverty line) n= total population This ratio takes into account percentage of all the people who are below the poverty line. This is the standard measure of poverty. Table D.4 (a) Head Count Ratio across different Districts in Jharkhand (2004-05) Districts Ratio Districts Ratio Bokaro 37.4 Hazaribag 41.7 Chatra 18.7 Kodarma 24.8 Deoghar 24.7 Lohardaga 98.6 Dhanbad 37.7 Pakaur 62.6 Dumka 45.2 Palamu 53.4 Garhwa 32.2 Pashchimi Singhbhum 50.7 Giridih 29.7 Purbi Singhbhum 36.4 Godda 48.2 Ranchi 22.1 Gumla 71.3 Sahibganj 74.9 Source: Bhandari and Dubey 2004-05 • The Head Count Ratio is very high in districts of Lohardaga, Sahibganj and Gumla where it is more than 70 percent, showing the poor conditions of these districts. With the available resources and potentialities, these district deserve immediate 104

attention for resources planning which could magnify these districts in every field of development. • The lowest Head Count Ratio is in the districts of Ranchi, Kodarma and Chatra where it is below 25 percent. 105

b. Households not getting Square Meals The number of households where every member has had at least two square meals a day is an indicator of food sufficiency and a high proportion of food sufficient households reflects less poverty. Table D.4 (b) Percentage of Households not getting two square meals a day for all members District Households District Households Bokaro 0 Hazaribagh 27.11 Chatra 0 Kodarma 0.53 Deoghar 0 Lohardaga 0 Dhanbad 0 Pakaur 0 Dumka 0 Palamu 23.45 Garhwa 0 Pashchimi Singhbhum 7.28 Giridih 23.01 Purbi Singhbhum 5.62 Godda 3.91 Ranchi 0 Gumla 9.09 Sahibganj 0 Source: NSSO 61st (Unemployment & Employment ) Round, 2004-05 • Districts like Giridih, Palamu and Hazaribagh have the highest number of households that do not get two square meals a day for all their members. There is an urgent need for combating drought, hunger and mass migration, increasing the productivity of agriculture, generating farm and forest-based livelihoods and promoting animal husbandry. • Districts like Bokaro, Chatra, Deoghar are better performers with negligible households without food sufficiency. 106

5. Economy a. Growth in Employment Growth in employment reflects the opportunities being created with respect to providing the labour force with gainful employment. A faster growth rate of the labour force than that of employment leads to greater unemployment. This indicator calculates the employment level and its increase in the region in the given tenure. Table D.5 (a) Growth in Employment from 1991 to 2001 Districts Average annual Growth in Average annual Growth in Rural Average annual Growth in Urban Employment Employment Employment 1991-2001 1991-2001 1991-2001 Bokaro 1.21 1.11 1.38 Chatra 3.38 3.39 3.08 Deoghar 2.89 2.89 2.86 Dhanbad 2.09 2.22 1.94 Dumka 1.43 1.38 2.55 Garhwa 3.35 3.32 4.64 Giridih 2.58 2.65 1.26 Godda 2.15 2.12 3.78 Gumla 2.04 1.98 4.24 Hazaribagh 2.81 2.99 1.96 Kodarma 2.77 2.67 3.45 Lohardaga 2.62 2.48 4.56 Pakaur 2.19 2.12 4.37 Palamu 3.26 3.31 2.06 Pashchim Singhbhum 1.48 1.37 2.53 Purbi Singhbhum 2.28 1.75 3.05 Ranchi 2.16 1.85 3.20 Sahibganj 3.52 3.49 4.03 107

S oSource: Census of India • Growth in employment is maximum in the case of districts of Sahibganj, Chatra and Palamu. But in cities like Bokaro and Dumka growth in employment is as low as 1.2 percent and 1.44 percent respectively. • In the capital city Ranchi, employment growth is one of the lowest in the state, unusual for the capital of any state. • If we look at urban growth of employment, we can see that Garhwa is the district which has shown maximum growth in urban employment followed by Lohardaga and Giridih is the district showing the least growth in urban employment. • Similarly the districts showing the maximum and minimum growth in rural employment are Sahibganj and Bokaro respectively. b. Per capita Rural and Urban Income and Market Size The market size of a particular area is an indirect indicator of the movement towards industrial development. A larger market size gives positive incentives to the producers and in turn 108

contributes to the overall growth of that area. Similarly, the per capita income of a particular area indicates the extent of affluence of a particular area. TableD.5(b)Per Capita Rural and Urban Income and Market Size,2008 Districts Market size (Rs Per capita Income in Per capita Income Crore) Urban Areas (Rs) in Rural Areas (Rs.) Bokaro 5,208 64,511 14,478 Chatra 1,149 23,646 14,249 Deoghar 3,397 69,138 23,507 Dhanbad 6,199 36,855 20,601 Dumka 2,770 50,335 13,891 Garhwa 1,341 32,084 11,796 Giridih 3,787 72,058 16,928 Godda 1,650 23,469 15,844 Gumla 2,160 35,518 15,622 Hazaribag 5,848 52,181 20,210 Kodarma 1,141 42,281 19,760 Lohardaga 706 32,777 17,899 Pakaur 2,475 26,112 37,497 Palamu 3,304 45,306 13,957 Pashchimi Singhbhum 4,890 49,195 19,215 Purbi Singhbhum 5,310 64,260 10,789 Ranchi 9,213 60,187 19,841 Sahibganj 3,230 24,270 38,135 Source: Market Skyline of India, Indicus Analytics, 2008 • Among the districts of Jharkhand, Giridih has the highest per capita income in urban areas followed by Deoghar. On the other hand, Godda has the lowest per capita income in urban areas. 109

• In rural area, the highest and lowest per capita income is seen in the districts of Sahibganj and Purbi Singhbhum respectively. • Ranchi has the largest market size among all the districts of Jharkhand followed by Dhanbad. 110

c. Percentage of Households with Motor Vehicles Table D.5(c): Percentage of households owning a motor vehicle (2007-08) District % of households have a motor vehicle Bokaro 34.4 Chatra 7.6 Deoghar 12.6 Dhanbad 23.0 Dumka 6.0 Garhwa 6.1 Giridih 10.2 Godda 5.3 Gumla 7.2 Hazaribagh 21.9 Jamtara 9.4 Kodarma 12.0 Latehar 5.2 Lohardaga 12.9 Pakaur 3.8 Palamu 8.6 Paschim Singhbhum 15.7 Purbi Singhbhum 36.7 Ranchi 24.6 Sahibganj 2.8 Saraikela 16.3 Simdega 7.3 111

Source: District Level Household Survey 3, Ministry of Health and Family Welfare • Purbi Singhbhum and Bokaro have higher percentage of households owning motor vehicles compared to other districts where the figure is very low. • In Pakaur and Sahibganj districts, have fared badly in this indicator as even less than 5 per cent households possess a motor vehicle. 112

d. Mobile Connections Mobile phone technology has rapidly become a necessity in recent years. Greater use of mobile telephone is an indicator of a better connectivity which in turn indicates technologically advancing economy and its growing acceptance among the general population. Further it also indicates how well a state is adapting to advancing technology and demand for the same especially since the telecom sector has now been privatized. Mobile density i.e. mobiles per 1000 persons has been used in the present discussion and it includes all the connections with all the service providers operating in the state in the respective years. Table D.5 (d) Number of Mobile Connections per 1000 persons, 2005 Districts Connections per 1000 persons Bokaro 8 Chatra 4 Deoghar 8 Dhanbad 11 Dumka 5 Garhwa 4 Giridih 3 Godda 4 Gumla 2 Hazaribagh 8 Jamtara 2 Koderma 7 Latehar 2 Lohardaga 4 Pakaur 4 Palamu 5 Paschim Singhbhum 5 Purbi Singhbhum 19 Ranchi 17 113

Sahibganj 4 Sareikela and Kharsawan 1 Simdega 2 Source: Lok Sabha Unstarred question no. 5931 dated 04/05/2005 • Purbi Singhbhum has the maximum penetration of mobile connections. This may be because of presence of Jamshedpur in the district. Because of the presence of an industrial area the purchasing power of the population in the district is better. • Except Purbi Singhbhum, only Ranchi and Dhanbad are the other districts which have more than 10 per 1000 penetration of mobiles among their population. 114

6. Overall Performance of the Districts District wise comparison is a useful exercise as it highlights the priority issues that need to be taken up in each district. The performance of the districts of Jharkhand have been measured on different parameters of economy and aggregated to denote the overall role of the district in the economic upliftment of the state. Though Jharkhand has 24 districts, two of them, namely Khunti and Ramgarh have been carved out of Ranchi and Hazaribagh districts respectively in October 2007. As data is not yet available for these new districts separately, the following section ranks the districts of Jharkhand according to the 22 district divisions. The parameters used for measuring the overall standing of the district in the state are 1. Education • Literacy Rate • Female Literacy Rate • Pupil Teacher ratio 2. Health and Civic Attainment • Safe Drinking Water • Women having trained assistance during delivery • Percentage of households with Water Closet/Latrine • Percentage of women receiving full Ante natal checkup – At least 3 visits for ANC + at least one TT injection + 100 or more IFA tablets/syrup 3. Demography • Crude Birth rate 4. Poverty • Head Count Ratio • Households not getting square meals 5. Economy • Growth in Employment • Number of Mobile Connections • Percentage of households with 4 wheelers • Percentage of households with TV 115

Motivation Development is a sum of progress made not just in economy, but also provision of basic services such as health, education, water and sanitation among various others. For the assessment performance of the districts in education, three parameters have been used, namely, literacy rate, female to male literacy rate and teacher pupil ratio. Literacy rate which reflects the overall education levels achieved in the region. Female to male literacy rate depicts the gap in educational attainments between males and females. The gender gap in education reflects that even today education for girls isn’t considered as important as that for boys. The third variable taken is teacher pupil ratio which denotes the level of personalized attention every student is getting. For measuring the performance of the district in health and civic attainment four variables have been taken namely, coverage of safe drinking water, the percentage of women having trained assistance during delivery, percentage of households with Water Closet/Latrine and Percentage of women receiving full Ante natal checkup – At least 3 visits for ANC + at least one TT injection + 100 or more IFA tablets/syrup. The Crude Birth Rate reports the rate of increase in population. A high population growth rate is not good for an already populous country like India since the resources are limited and income levels are relatively low. Underdevelopment in India has been characterized by mass poverty, as many households still cannot afford two square meals for all its members. Further a significant proportion of the population lives below the poverty line. Two widely used variables have been taken to asses performance in controlling poverty. The variables are head count ratio and percentage of households not getting square meals. The last parameter is the status of economy which includes variables like the growth in employment which reflects how fast the new avenues of jobs are developing in the region, number of mobile connections which depicts the dynamism of technological advancement made in the economy, percentage of households owning assets such as four wheelers and TV. 116

Methodology Each of the variables have been appropriately normalized so that districts that differ in absolute size are rendered comparable. Upon adequate normalizing we obtain ratios, which are then used for calculating the indices. Further, all the ratios that are used for generating the indices are such that the higher the value of the ratio the better the level of economic freedom that they signify. In case of certain ratios this has been achieved by taking the inverse or in case of percentages by subtracting from 100. The economic index has been constructed in two steps. Step 1: An index is obtained for each of the 10 ratios discussed in the data section. The following formula was used to obtain each of the 10 indices: Iij= Sij – Min(S1j, S2j,…,S10j) Max(S1j, S2j,…,S10j)-Min(S1j, S2j,…,S10j) Where Sij represents the value of ratio j for state i. The index is constructed for 22 districts of Jharkhand and therefore i ranges from 1 to 22. There are 10 ratios for which the indices have been constructed, j=1,2,…,10. Iij is the index value that is derived for district i over ratio j. The index value lies between 0 to 1 within each ratio. The district corresponding to index value 0 can be interpreted as having the lowest level of economic freedom and the district with index value of 1 can be said to have the highest level of economic freedom relative to other districts. Step 2: Once all the indices for the 10 ratios were obtained, a composite index was obtained on the basis of all these indices. An additive composite index has been constructed for every parameter. This has been constructed by using the formula of arithmetic mean. Ai=Σ Iij j 55 117

Then the districts were ranked for different parameters. After this the average of all the parameters was taken and the overall aggregate was calculated. The districts were then ranked on the basis of this overall aggregate. The overall standings of the various districts of Jharkhand on the basis of these parameters are : a. Overall performance Table D.6 (a) Overall Ranks of the Districts in Jharkhand District Ranking Ranking 2009 2008 Purbi Singhbhum 1 1 Dhanbad 2 2 Bokaro 3 4 Ranchi 4 3 Hazaribagh 5 6 Paschim Singhbhum 6 14 Sareikela and Kharsawan 7 15 Koderma 8 5 Deoghar 9 8 Chatra 10 9 Lohardaga 11 10 Jamtara 12 12 Garhwa 13 11 Dumka 14 19 Gumla 15 20 Palamu 16 17 Simdega 17 18 Latehar 18 7 Godda 19 16 Giridih 20 22 Sahibganj 21 13 118

Pakur 22 21 A comparison of the overall performance of the districts in the last 2 years leads us to the conclusion that while Purbi Singhbhum and Dhanbad maintain first two positions, Bokaro has replaced Ranchi from third position to fourth position. Districts like Paschim Singhbhum and Sareikela have shown major signs of improvement in the education and health sector, resultantly they have obtained sixth and seventh rank respectively as compared to fourteenth and fifteenth place last year. Latehar and Sahibganj are the laggard districts as their rankings have dropped by eleven and eight places respectively. The development process in these districts has not been undertaken as a result they lag in almost all the spheres including economic, social and demographic. Table D.6 (b) Standings on the basis of performance in different aspects Health and Civic Education Attainment Poverty Demography Economy Overall Rating Rating Rating Rating Rating Rating Rank (Index) District (Index) Rank (Index) Rank (Index) Rank (Index) Rank (Index) Rank 1 0.82 Purbi Singhbhum 0.73 3 0.84 1 0.79 10 1.00 1 0.84 1 2 0.67 Dhanbad 0.62 4 0.63 3 0.88 7 0.77 2 0.62 3 3 0.65 Bokaro 0.56 6 0.69 2 0.88 6 0.65 3 0.54 4 4 0.64 Ranchi 0.57 5 0.52 5 0.98 2 0.61 4 0.65 2 5 0.50 Hazaribagh 0.50 9 0.56 4 0.36 20 0.36 9 0.54 5 6 0.48 Paschim Singhbhum 0.83 1 0.35 8 0.67 13 0.47 5 0.24 16 7 0.45 Sareikela and Kharsawan 0.74 2 0.41 7 0.67 13 0.47 5 0.25 15 8 0.45 Koderma 0.35 15 0.42 6 0.95 4 0.20 14 0.38 7 9 0.40 Deoghar 0.36 14 0.18 12 0.96 3 0.19 15 0.41 6 10 0.35 Chatra 0.30 17 0.15 19 1.00 1 0.15 16 0.31 9 11 0.34 Lohardaga 0.45 12 0.26 9 0.50 19 0.21 13 0.30 12 12 0.34 Jamtara 0.45 11 0.19 11 0.83 8 0.45 7 0.15 20 119

13 0.33 Garhwa 0.28 18 0.18 14 0.92 5 0.00 22 0.31 10 14 0.32 Dumka 0.34 16 0.20 10 0.83 8 0.45 7 0.13 22 15 0.28 Gumla 0.45 10 0.17 15 0.50 17 0.32 10 0.15 19 16 0.28 Palamu 0.37 13 0.15 17 0.35 21 0.12 17 0.34 8 17 0.28 Simdega 0.54 7 0.17 16 0.50 17 0.32 10 0.14 21 18 0.28 Latehar 0.53 8 0.18 13 0.35 21 0.12 17 0.25 13 19 0.25 Godda 0.18 20 0.10 20 0.74 11 0.28 12 0.18 17 20 0.24 Giridih 0.21 19 0.15 18 0.51 16 0.08 21 0.25 14 21 0.23 Sahibganj 0.11 21 0.06 21 0.65 15 0.09 20 0.31 11 22 0.17 Pakaur 0.05 22 0.01 22 0.73 12 0.11 19 0.16 18 • Purbi Singhbhum topped the list (which is most likely because of the presence of the industrial area like Jamshedpur), followed by Dhanbad. Bokaro has acquired the third position. • Sahibganj and Pakaur are the worst districts as their performance is poor in almost all the indicators. 120

Section V: Industrial Profile of Jharkhand Owing to its rich mineral base, Jharkhand has the presence of some of the biggest industrial plants in India. The total value of industrial product of the state at the end of the financial year 2008-09 was Rs. 571,206.14 million. The industrial sector in Jharkhand employs around 1.76 million people. The value of raw material consumed in the state is Rs. 232,779.4 million. A. Composition of Industries – a) Share of Industries – Jharkhand industrial profile is dominated by the presence of iron and steel industries as the state has largest iron ore reserves in India. Iron and steel industry accounts for more than half of the industrial product of Jharkhand. As steel is the key input to auto manufacturing, the second largest industry in the state is that of motor vehicles which contributes 12 per cent to the total industrial value. Jharkhand has third largest coal reserves in India forming base for coke oven industry which is the third largest industry in Jharkhand and has 7 per cent share in total industrial product of the state. The non-ferrous metals and minerals industries account for 3.72 per cent and 3.57 per cent share respectively to Jharkhand’s industrial output. Top industries in Jharkhand and their respective shares Industry % share Basic iron & steel 56.02 Motor vehicles 12.10 Coke oven products 7.70 Basic precious and non-ferrous metals 3.72 Non-metallic mineral products 3.57 Auto components 3.15 Other fabricated metal products 1.88 Special purpose machinery 1.71 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 b) Fastest Growing Industries in Jharkhand – The industrial activity in Jharkhand has grown several times since the inception of the state in 2000. The small size industries tend to 121

display higher rate of growth due to their small base nature as compared to the large size industries. Hence, for our purpose of analysis, top ten industries of Jharkhand were considered to find out the fastest growing industries. The growth rate is based on three data points pertaining to the years 2000-01, 2005-06 and 2008-09. Top Five Fastest Growing Industries (2000-1 to 2008-09) Growth Industry rate (%) Basic Iron & Steel 24 Motor vehicles 16 Coke oven products 15 Non-metallic mineral products 12 Basic precious and non-ferrous metals 11 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 • Iron and steel industry which accounts for maximum industrial output of the state has shown 24 per cent annual growth rate. This can be accounted to rise in demand for steel during last eight years with expanding infrastructural activities, growth in auto industry and robust demand from construction sector. • With pick up in auto sales at national level, the motor vehicle industry in Jharkhand has registered an average growth rate of 16 per cent during past eight years. • Coal is one of the key sources of energy in India with power sector having high dependence on coal as raw material. Jharkhand with huge coal reserves witnessed robust growth in coke oven industry which rose at the rate of 15 per cent between 2001 and 2009. • The minerals and metals related industries were among the other fastest growing industries in Jharkhand. 122

c) Top Industries in Districts of Jharkhand – i. Bokaro – SAIL had set up its steel plant in Bokaro district of Jharkhand in 1964. Thus iron and steel is the major sector in the district accounting for 95 per cent of the total industrial value of the district. Source: Industrial Skyline of India, Indicus Analytics, 2008-09 Share in industrial product value of the Industry district (%) ii) Chatra – Basic Iron & Steel 94.65 The Chatra district has Coke oven products 3.2 high Other Fabricated Metal Products 0.78 presence of fabricated metal product industries and structural metal products, tanks, reservoirs and steam generators. These two industries together account for 50 per cent of the district’s industrial output. Share in industrial product value of the Industry district (%) Other fabricated metal products 27 Structural metal products, tanks, reservoirs and steam generators 23 Grain, starch products and animal feeds 19 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 iii) Deoghar – The iron and steel industry and the non-metallic mineral products have maximum share in the industrial production in Deoghar district of Jharkhand. Another major industrial activity comprises of grain, starch products and animal feeds. Industry Share in industrial product value of the district 123

(%) Basic Iron & Steel 27 Non-metallic mineral products 20 Grain, starch products and animal feeds 17.10 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 iv) Dhanbad – The industrial production in Dhanbad is majorly dominated by coke oven products which account for 67 per cent of the district’s industrial value production. Known for its coal reserves, the place if better known as “Coal City of India”. Metals and mineral product manufacturing are the other prominent industries in the city. Share in industrial product value of Industry the district (%) Coke oven products 67.56 Basic precious and non-ferrous metals 7.43 Non-metallic mineral products 7.21 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 v) Dumka – Food processing is the major industrial activity in Dumka with 36 per cent contribution to the industrial product value of the district. Manufacturing of grain, starch products and animal feeds is the second largest industry in the state with 21 per cent share. The ‘wood products, cork, straw and plating materials’ industry accounts for 15 per cent of the industrial activity. Share in industrial product value of Industry the district ( %) Food Processing 36.86 Grain, starch products and animal feeds 21.28 Products of wood, cork, straw and plating materials 15.88 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 124

vi) Garhwa – The industrial profile of Garhwa district is largely dominated by chemical industry which accounts for more than half of the industrial production value in the district. The other significant industries include fabricated metal products and man-made fibres. Share in industrial product value of the district Industry (%) Basic chemicals 52.37 Other fabricated metal products 9.37 Man-made fibers 6.47 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 vii) Giridih – Giridih has large deposits of mica and coal reserves which has led to the flourishing of industries such as non-mineral metallic products and coke oven products. Mineral Products constitute 56 per cent of the industrial base in Giridih while coke oven and iron & steel work constitute 12.9 per cent and 11.52 per cent of the district industrial product respectively. Share in industrial product value of the Industry District (%) Non-metallic mineral products 56.89 Coke oven products 12.90 Basic Iron & Steel 11.52 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 viii) Godda – The top three industries in Godda district of Jharkhand constitutes 70 per cent of the overall secondary output. These industries include grain, starch products, non-metallic mineral products and manufacturing sector. Industry Share in industrial product value of the 125

district ( %) Grain, starch products and animal feeds 33.07 Non-metallic mineral products 20.72 Manufacturing 15.86 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 ix) Gumla – Bauxite and Laterite are the important minerals available in Gumla district, hence the non-metallic mineral industry has the highest share of 27 per cent towards the industrial product value in the district. Grain and starch products and tobacco sector are the other two significant industries. Share in industrial product Industry value of the district (%) Non-metallic mineral products 27.73 Grain, starch products and animal feeds 20.26 Tobacco products 14.55 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 x) Hazaribagh – In Hazaribagh district, 65 per cent of the industrial activity takes place in mineral and metal related products. The non-metallic mineral products have highest share 41 per cent and the fabricated metal products contribute 15 per cent to the secondary activities in the district. Share in industrial product value of the Industry district (%) Non-metallic mineral products 41.54 Other fabricated metal products 15.31 Structural metal products, tanks, reservoirs and steam generators 8.99 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xi) Koderma – The basic iron and steel industry accounts majorly for the industrial output in Koderma district. Other industries include metal products and non-metallic mineral products. 126

Share in industrial product value of the Industry district (%) Basic Iron & Steel 84.82 Structural metal products, tanks, reservoirs and steam generators 3.36 Non-metallic mineral products 3.21 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xii) Lohardaga – Unlike other districts in Jharkhand, Lohardaga’s industrial profile is not dominated by any one particular industry. There are wide range of secondary activities taking place in the district such as grain, starch products, publishing, plastic products, metals, manufacturing. Share in industrial product value of Industry the district (%) Grain, starch products and animal feeds 13.10 Publishing 12.11 Plastic products 12.11 Basic Iron & Steel 12.11 Casting of metals 12.11 Manufacturing n.e.c. 12.11 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xiii) Pakaur – Pakaur district has high presence of non-metallic mineral products and tobacco product industries. Another significant industry is ‘Grain, starch products and animal feeds’. Share in industrial product value of the Industry district (%) Non-metallic mineral products 27.64 Tobacco products 25.46 Grain, starch products and animal feeds 17.94 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 127

xiv) Palamu – The industrial activity in Palamu is largely characterized by ‘Grain, starch products and animal feeds’ which accounts for 41 per cent of its output. Structural metal products and mineral industry have 10 per cent share each in the district’s industrial value. Share in industrial product value of the Industry district (in %) Grain, starch products and animal feeds 41.19 Structural metal products, tanks, reservoirs and steam generators 13.81 Non-metallic mineral products 12.24 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xv) Pashchimi Singhbhum – In Pashchimi Singhbhum, auto components industry is the major sector comprising of the industrial profile of the district. The auto ancillary sector accounts for one third of the industrial product value. Share in industrial product value of the district Industry (%) Auto components 33.31 Other fabricated metal products 10.88 Non-metallic mineral products 9.50 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 128

xvi) Purbi Singhbhum – Motor vehicles is the largest industry in the Purbi Singhbhum district accounting for two third of the industrial product value. Other industries operating in the district includes ‘Basic precious and non-ferrous metals’ and ‘Special purpose machinery’. Share in industrial product value Industry of the district (%) Motor vehicles 66.03 Basic precious and non-ferrous metals 9.20 Special purpose machinery 7.91 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xvii) Ranchi – Ranchi, the capital of Jharkhand is better known as ‘Steel City’ with more than 50 per cent of its industrial product value coming from basic iron and steel industry. The industry primarily constitutes of small and medium scale steel fabrication units. Metals are the second biggest industrial sector in Ranchi. Share in industrial product value of the district Industry (%) Basic Iron & Steel 55.37 Basic precious and non-ferrous metals 16.93 Casting of metals 9.57 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xviii) Sahibganj – The secondary sector in Sahibganj constitutes of small scale and cottage industries prominently dealing in the tobacco products. Tobacco sector accounts for 55 per cent of the district’s industrial product. Share in industrial product value of the Industry district (%) Tobacco products 55.12 Manufacturing 13.85 129

Grain, starch products and animal feeds 7.55 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 B. Employment- a) Share of Industries in employment generation in Jharkhand - Maximum employment in Jharkhand is generated by the tobacco sector which employs around 38.6 per cent of the industrial workers. The metal products industry is the second largest employer with almost 10 per cent share in employment generation. Jharkhand, with a large forest cover, has wood product manufacturing as one of the significant source of work generation. Almost 9.6 per cent of the industrial workers are engaged in manufacturing of wood products. The non-metallic mineral products engage almost 7 per cent of the industrial workers in the state of Jharkhand. The beverages and apparel industry each employs more than 6 per cent of the industrial workforce. The iron and steel industry, though has highest share in industrial output, due to its capital intensive nature employs only 3.5 per cent of the workforce. Top Employment generating Industries in Jharkhand Share in industrial product value of the district (%) Industry Tobacco products 38.64 Other fabricated metal products; metal working service activities 9.66 Products of wood, cork, straw and plating materials 9.61 Non-metallic mineral products n.e.c. 6.91 Beverages 6.48 Wearing apparel, except fur apparel 6.03 130

Grain, starch products and animal feeds 5.61 Basic Iron & Steel 3.54 Structural metal products, tanks, reservoirs and steam generators 1.78 Production, processing and preservation of meat, fish, fruit vegetables, oils and fats 1.53 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 131

b) Top employment-generating industries in districts of Jharkhand – i) Bokaro – Bokaro, marked by the presence of the largest steel plant in India, has almost 46 per cent of its industrial workers engaged in the iron and steel sector. The tobacco sector, the second largest employment generating sector after iron and steel industry, accounts for 16 per cent of the industrial employment in the district. Share in employment generation Industry (%) Basic Iron & Steel 46 Tobacco products 16.64 Non-metallic mineral products 11.41 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 ii) Chatra – In Chatra district, 44 per cent of the industrial workers are engaged in tobacco production. The second largest employment generating sector in the district is structural metal products, followed by apparel sector. Share in employment generation Industry (%) Tobacco products 44.24 Structural metal products, tanks, reservoirs and steam generators 14.51 Apparel 12.64 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 iii) Deoghar – Maximum employment in the Deoghar district is generated by the tobacco industry where more than 60 per cent of the industrial workers are employed. Metal Products manufacturing employs almost 25 per cent of the industrial workers in the District. Industry Share in 132

employment generation (%) Tobacco products 64.63 Other fabricated metal products 25 Non-metallic mineral products 2.15 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 iv) Dhanbad - While coal accounts for maximum industrial production in value terms in Dhanbad district, yet maximum number of workers are employed in the tobacco industry. The garment sector creates second largest employment in the industrial sector of the District. Coke oven products sector employs 15 per cent of the total industrial workers. Share in employment Industry generation (%) Tobacco products 23.94 Apparel 17.73 Coke oven products 15 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 v) Dumka – More than half of the industrial employment in Dumka is generated in tobacco sector. The other prominent industries in terms of workforce are metal products and wood products. Share in employment generation Industry (%) Tobacco products 52.10 Other fabricated metal products 17.97 Products of wood, cork, straw and plating materials 11.89 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 133

vi) Garhwa – Among the industrial units, the garment sector generates maximum employment in Garhwa district accounting for 30.7 per cent of the total industrial workforce. The non-metallic mineral products and man-made fibre industry each has around 14 per cent contribution to the employment creation. Share in employment generation Industry (%) Apparel 30.74 Non-metallic mineral products 14.72 Man-made fibers 14.55 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 134

vii) Giridih – In Giridih, beverage industry is the largest employer engaging around 41 per cent industrial workers of the district. The readymade garment sector falls at second place with 21 per cent share in employment generation in the secondary sector of the district. Share in employment Industry generation (%) Beverages 41.52 Apparel 21.67 Non-metallic mineral products 8.39 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 viii) Godda – The prime employment generating industries in Godda district are apparel and tobacco sector. Each of them have more than 20 per cent share to the total workforce engaged in industrial activities. Share in employment generation Industry (%) Apparel 22.07 Tobacco products 20.14 Grain, starch products and animal feeds 14.38 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 ix) Gumla – Gumla district has high dependence on the metal product industry as 45 per cent of the workforce is engaged by this sector. Other significant industries from the perspective of creating employment includes wood products, grain & starch products. Share in employment generation Industry (%) Other fabricated metal products 45.18 Products of wood, cork, straw and plating materials 19.67 135

Grain, starch products and animal feeds 15.01 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 x) Hazaribag – The Textiles sector is the largest employer in Hazaribag district of Jharkhand engaging 21 per cent of the industrial workers. The wood products and non- metallic mineral product industries provide employment to 18 per cent and 16 per cent workers. Share in employment generation Industry (%) Other textiles 21.32 Products of wood, cork, straw and plating materials 18.26 Non-metallic mineral products 16.30 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xi) Koderma – In Koderma district, a large share of the industrial employment is generated by the production of tobacco products. Other prime industries generating employment are wood products and grain & starch products. Share in employment generation Industry (%) Tobacco products 55.50 Products of wood, cork, straw and plating materials 14.60 Grain, starch products and animal feeds 6.71 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xii) Lohardaga – Lohardaga district has almost half of its industrial workforce engaged in non-metallic mineral products industry. The second largest employment generating industry in the district is ‘Grain, starch production and animal feeds’. This industry employs around 33 per cent of the workforce. Footwear manufacturing is the third biggest industry, however its share is only 4 per cent. 136

Share in employment generation Industry (%) Non-metallic mineral products 45.81 Grain, starch products and animal feeds 33.25 Footwear 4.03 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xiii) Pakaur – In Pakaur district, tobacco production and processing is the key occupation of those engaged in secondary activity. Even as tobacco production contributes 25 per cent to the total industrial output if the district, it employs more than 95 per cent of the workers. Share in employment generation Industry (%) Tobacco products 95.75 Non-metallic mineral products n.e.c. 1.86 Beverages 0.59 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xiv) Palamu – In Palamu district, tobacco products and wood product industries are the key employment generators with the respective shares of 36 per cent and 30 per cent. Readymade garments or apparel industry is the third largest employer in industrial segment. Share in employment generation Industry (%) Tobacco products 36.02 Products of wood, cork, straw and plating materials 30.14 Apparel 12.27 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 137

xv) Pashchimi Singhbhum – Paschimi Singhbhum has tobacco products and beverage manufacturing sectors as the top employment generating sectors with their combined share exceeding 50 per cent. While auto components sector accounts for maximum industrial output in value terms, it does not fall in top three employers category. Share in employment generation Industry (%) Tobacco products 30.46 Beverages 27.55 Products of wood, cork, straw and plating materials 12.08 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xvi) Purbi Singhbhum – In Purbi Singhbhum district, the ‘Grain, starch and animal feeds’ industry accounts for 25 per cent of the industrial workforce while 17 per cent is engaged by tobacco industry. The metal related products are the third largest employment generator and have 14 per cent contribution to employment generation. Share in employment Industry generation (%) Grain, starch products and animal feeds 25.17 Tobacco products 17.27 Structural metal products, tanks, reservoirs and steam generators 14 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xvii) Ranchi – While iron and steel contributes maximum to the industrial output value in the capital city of Jharkhand, the sector does not fall among the highest employment sectors. It is the non-metallic mineral products which employs maximum workforce, followed by wood product and fabricated metal products industry. Share in employment Industry generation (%) 138

Non-metallic mineral products 18.35 Products of wood, cork, straw and plating materials 17.38 Other fabricated metal products; metal working service activities 14.81 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 xviii) Sahibganj – In Sahibganj, tobacco is the leading employment generating industry providing employment to almost 50 per cent of the industrial workforce of the district. Beverages and ‘grain, starch and animal feeds’ industries have 18.5 per cent and 11.8 per cent shares respectively in employment generation. Share in employment generation Industry (%) Tobacco products 49.06 Beverages 18.52 Grain, starch products and animal feeds 11.86 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 C. Consumption of Raw Materials The input consumption by the top industries in Jharkhand is discussed below. 1. The Iron and Steel industry has the highest raw material consumption in Jharkhand accounting for close to 40 per cent of the total value of the inputs used. 2. The auto sector is the second largest consumer of the raw material in Jharkhand with its share in total raw material consumption being close to 17 per cent. 3. Coke oven product industry which has coke as its major input, accounts for almost 10 per cent of the total input values in Jharkhand. 4. Basic precious and non-ferrous metals industry follows the top three industries in the State in terms of raw material consumption with its share being 5 per cent. 5. The auto components sector with its presence among the top ten industries in Jharkhand, has considerable input consumption amounting to 4.6 % of the total value. 6. Other industries with high raw material consumption value include metal products, minerals, ‘grain, starch and animal feeds’ and ‘special purpose machinery’. Top Raw Material Consuming Industries of Jharkhand 139

Share in total raw material consumption Industry (%) Basic Iron & Steel 39 Motor vehicles 17.31 Coke oven products 10 Basic precious and non-ferrous metals 5.08 Auto Components 4.60 Other fabricated metal products; metal working service activities 3.78 Non-metallic mineral products 3.73 Grain, starch products and animal feeds 2.59 Special purpose machinery 2.06 Source: Industrial Skyline of India, Indicus Analytics, 2008-09 140

Section VI: Jharkhand’s best and worst constituencies Parliamentary constituencies are territorial divisions identified for the purpose of electing representatives from different states of India. The number of seats allotted to a state is based on the population of the respective states. This section will examine the performance of parliamentary constituencies of Jharkhand on two parameters: socio economic performance and infrastructure provision at the state and all India level. This exercise aims to serve as a quantifiable reminder to the MPs about the shortcomings in their constituencies. The rankings have been derived using district-level data from ‘Indicus District Development Database’. The variables selected for the ranking exercise are mentioned below: a. Socio-economic category 1. Female literacy 2. Primary to upper primary school transition 3. Poverty ratio4, 4. Marginal workers 5. Immunization of children 6. Weight for age b. Physical infrastructure category 1. Households electrified 2. Households with telephones 3. Areas connected by pucca roads The next step is to map districts with parliamentary constituencies. This requires the percentage of a constituency's population in a district. If this is known, weighted averages of district values can be used to obtain estimates for constituencies. The population data for the individual constituencies was available from Delimitation Commission which itself used the Census data, 2001. With equal weights, one can now construct a socio-economic index and a physical infrastructure index at the constituency level with the respective district level socio economic and infrastructural variables adjusted accordingly. An important point to note here is that the lists of constituencies are the new constituencies as specified by the Delimitation Commission in the year 2008 and may or may not coincide with prevailing constituencies. Table 1 Index in the state Rank in the state Parliamentary* Constituency Socio economy Infrastructure Socio economy Infrastructure 4 derived from work done by Amaresh Dubey 141

Dhanbad 0.528 0.629 1 1 Bokaro 0.46 0.457 2 2 Jamsedpur 0.449 0.443 3 3 Khunti (ST) 0.445 0.332 4 6 Ranchi 0.44 0.367 5 5 Hazaribagh 0.381 0.378 6 4 Singhbhum (ST) 0.321 0.26 7 7 Lohardaga (ST) 0.279 0.183 8 14 Chatra(SC) 0.266 0.222 9 11 Deoghar 0.262 0.258 10 8 Giridih 0.26 0.237 11 10 Palamu (SC) 0.238 0.204 12 13 Dumka (ST) 0.208 0.222 13 12 Godda 0.205 0.243 14 9 Note: * The constituencies are the new constituencies as declared by the Delimitation Commission Table 1 shows the list constituencies of Jharkhand with their corresponding index values and respective positions in the state. The index values are given separately for both socio economy and infrastructure. As evident from the table, the constituency of Dhanbad has occupied the top position in the state followed by Bokaro and Jamshedpur in both the categories. The worst performers in the socio economy category are Godda and Dumka and that in the infrastructure category are Lohardaga and Palamu. The top performing constituencies are the mineral rich places which give them an edge over others. For instance, coal in Dhanbad, steel in Bokaro etc. On the contrary, the worst performing constituencies are basically clustered around the tribal regions of Lohardaga, Palamu which are generally the deprived areas. 142

Table 2 All India Rank Parliamentary Constituency* Socio Economy Infrastructure Member of Parliament Political Party Dhanbad 279 209 Chandra Sekher Dubey Indian National Congress Bokaro 345 338 NA NA Jamsedpur 355 351 Sunil Kumar Mahato Jharkhand Murti Morcha Khunti (ST) 356 423 Sushila Keketta Indian National Congress Ranchi 360 403 Subodh Kant Sahay Indian National Congress Hazaribagh 443 393 Bhubneshwar Prasad Mehta Communist Party of India Singhbhum (ST) 501 461 Bagun Sumbarai Indian National Congress Lohardaga (ST) 527 509 Rameshwar Oraon Indian National Congress Chatra(SC) 530 480 Dhirendra Agarwall Rashtriya Janta Dal Deoghar 532 463 NA NA Giridih 533 472 Tek Lal Mahato Jharkhand Murti Morcha Palamu (SC) 537 497 Ghuran Ram Rashtriya Janta Dal Dumka (ST) 540 483 Shibu Soren Jharkhand Murti Morcha Godda 541 470 Furkan Ansari Indian National Congress *: The constituencies are the new constituencies identified by the Delimitation Commission Table 2 gives the list of parliamentary constituencies with their respective members of parliament. The table also provides the position of the constituencies at the all India level. The all India ranks give the position of the constituencies of Jharkhand in the country as a whole. The all India rank shows that even the top performing constituencies of the state have occupied 279th rank among all the 543 constituencies in the country. The ranking exercise reinforces the popular perception of poor governance in the state, thereby depicting the challenges ahead for public representatives. Unless the public representatives are themselves aware of the necessary actions to be taken to develop their particular areas and learn from their successful counterparts, growing at an accelerated pace and providing basic services to the people would remain a dream. This exercise should go a long way in arming the voters with necessary information to push for appropriate manifestos and change in the upcoming elections next year. 143

Section VII: Potential Cities – An evaluation ‘Jharkhand’ meaning ‘forest land’, is known for its immense potential in terms of various natural resources. The abundance of minerals and forests in the state however has not helped the state in getting an edge over others, rather it is considered to be a laggard on various fronts. Poor infrastructure facilities, lack of quality education and health facilities etc characterize most of the cities in the state attracting very low investment. However, some cities in the state have immense potential where much of the industrial activities are taking place. This section focuses on those cities and attempts to examine their potential. The quartet of Ranchi, Dhanbad, Jamshedpur and Bokaro cities hold tremendous potential in achieving high economic growth in the state. These are the cities where much of the state’s industrial activity is carried out. Brief industrial profiles of these cities have been given below: Bokaro City is an industrial city housing several medium and small industries. It is also home to one of the largest steel plants in India. The Damodar Valley Corporation (DVC) has two big power plants in the city; Coal India Ltd. has two subsidiaries; Jharkhand State Electricity Board has a power captive plant. The steel township of the state is named as the Bokaro Steel City after the Bokaro Steel Plant was established in 1964. It is the district headquarters of the Bokaro district as well as Bokaro divisional range (Bokaro, Dhanbad and Giridih). Ranchi, the capital city of Jharkhand having good reserves of forest and minerals offers an excellent place to set up medium and large-scale industries. Some of the well-known industries in the state include: Chotanagpur Rope Works Private - Namkum; Heavy Engineering Corporation – Dhurwa; Bharat Mineral and Ceramic Ind. – Mahilong etc. An autonomous body “Ranchi Industrial Area Development Authority” is responsible for developing the industries in Ranchi by arranging loans, supplying power, and water etc. Jamshedpur, also known as ‘Tata Nagar’ is another important industrial hub of the state. Initially established for the manufacture of steel, it gradually transformed itself to an important industrial hub since small industries opened to change the raw steel into finished products. Some of the major industries established in the city are, TELCO, Indian Tube Company, The Tinplate Company of India Ltd. etc. Besides this, the city is home to the first private Iron and Steel Company of India. Dhanbad is a mining town as it treasures vast mineral wealth of India and is internationally famous for its rich coal fields. Some of the industries in and around Dhanbad are Tata Iron & Steel Company, Foundry fuel products Pvt. Ltd., Akash Coke industries (P) Ltd, etc. Coal washing and coke making are the main coal related industry found in the city. The industrial profile of these four major cities gives a clear picture of the potential of these cities, which is instrumental for the development of the whole state. Further, a detailed demographic as 144

well as economic profile of these cities will provide valuable insights for the investors before they decide to bring in investment. Table 1: Demographic Profile 2001 Recent Migrants per 100,000 Cities Population population Slum Population Ranchi City 730,655 5,607 74,692 Dhanbad City 958,280 4,074 37,579 Jamshedpur City 1,091,204 3,471 75,924 Bokaro City 648,966 4,387 . Source: Census of India, 2001 Table 2: Economic Profile 2008 Annual Total Annual Total Household Income Household Savings of Urban of Urban Households (in Rs Households (in Rs Market Size (in Rs Cities Crore) Crore) Crore) Ranchi City 6,821 1,152 5,669 Dhanbad City 5,309 1,303 4,007 Jamshedpur City 7,962 3,596 4,366 Bokaro City 5,793 1,978 3,815 Source: City Skyline of India, Indicus Analytics, 2008 Table 3: Social Profile Employment Rate Literacy rate (%) City (%) Dhanbad 77 73 Bokaro 72 72.80 Ranchi 72 70 Jamshedpur 76 82 Source: City Skyline of India, Indicus Analytics, 2008-09, DLHS 3 145

 Jamshedpur city has the highest household income and household savings among four cities identified in the state.  Household savings in Jamshedpur city are as high as 45 percent of the household income as compared to Ranchi and Dhanbad where it is below 25 percent.  Ranchi city has the largest market size among all four major cities in the state and thus has higher chances of attracting investments.  Dhanbad and Jamshedpur have higher employment rates as compared to the other two cities, Bokaro and Ranchi.  The literacy rate among all the four cities is more than the state average (62 per cent).  Jamshedpur has highest literacy rate of 82 per cent among the four cities followed by Dhanbad. 146

Section VIII: Ranking of Eastern Zone States Eastern zone comprises of the states of West Bengal, Assam, Bihar, Jharkhand, Chhattisgarh and Orissa. The region lies on the east coast of India and on the Indo-Gangetic plain. Agriculture has been the mainstay for most of the states in the region thereby employing majority of the working population. Development of the industrial sector is concentrated mostly in West Bengal and Jamshedpur region of Jharkhand. Recently, the IT sector is also developing in these states. This section will look at how the states in the eastern zone are performing in sectors like agriculture, infrastructure etc. The rankings of these states in the eastern zone as well as in the whole country will be given. The performance of the states was examined across eight heads - agriculture, consumer markets, education, law and order, health, infrastructure, investment-scenario and macro-economy. Six to eight variables were selected in each category and individual index was constructed in each of the sectors. A composite index was constructed by taking the simple average of the individual indices. The overall ranks of these states as well as the ranks in three categories, viz, agriculture, law & order and infrastructure have been given in the present analysis. The position of the states in three categories in the country is given in Table 1. The composite rank of these states is also mentioned. Table 1: All-India Ranks Agricultur Law & Infrastructur Composite States e Order e Rank 2009 Assam 20 17 17 15 West Bengal 11 20 13 14 Chhattisgarh 18 10 19 16 Orissa 17 16 15 17 Jharkhand 19 15 20 19 Bihar 16 19 18 20 Table 1 shows that no eastern zone state makes it to the top ten at all-India level. The potential of agriculture-sector generally remains untapped in the region. Except West Bengal no other state has performed well in agriculture. Dry-land farming; sustainable agricultural practices, commercialization of agriculture etc. are some of the possible measures which the states could take to improve this sector. The law and order situation is quite poor in the region. It is mainly disrupted by widespread naxalism. Equitable socio-economic development, strengthened internal-security, and a coordinated 147

effort by all the affected states would go a long way in resolving this persistent problem. Infrastructure bottlenecks are another major hindrance in achieving overall development in the region. The provision of world-class infrastructure in certain spheres like power, telecommunications, information-technology, and transport would go a long way in removing these bottlenecks. Table 2: Eastern Zone Ranks Overall Law & Healt Rank States Agriculture Order Infrastructure h Education 2009 Assam 6 4 3 2 1 2 West Bengal 1 6 1 1 2 1 Chhattisgarh 4 1 5 5 4 3 Orissa 3 3 2 4 3 4 Jharkhand 5 2 6 3 5 5 Bihar 2 5 4 6 6 6 Table 2 gives the position of the states in the eastern zone. In agriculture, West Bengal has done the best in the eastern region. Fertile alluvial soil and good irrigation facilities have helped in enhancing food grain yield in the state. River Hooghly and its tributaries - Mayurakshi, Damodar, Kangsabati and Rupnarayan while the northern part comprising of the districts of Darjeeling, Jalpaiguri and Cooch Bihar are watered by the swift flowing rivers Tista, Torsa, Jaldhaka and Ranjit. On the other hand, Jharkhand’s mineral rich land is generally unsuitable for agriculture. Law and order situation in Chhattisgarh is comparatively better than the other states under consideration. The success of ‘Salwa Judum’ in reducing the influence and menace of naxalism has been one of the major factors for this performance. On the other hand, widespread naxalism, inadequacy of policemen, high number of pending cases in the courts and high incidence of cognizable crimes in Jharkhand has pushed it to the last place in law and order situation in the region. West Bengal has better infrastructure facilities than other eastern states. The state has better connectivity to pucca roads, rich asset ownerships etc. On the other hand, Jharkhand has not been able to provide better infrastructure facilities to its citizens. Despite hosting Damodar Valley 148

Corporation, India’s first multi-purpose hydro-project, Jharkhand has not been able to provide power, telephone and road connectivity in remote areas. This has pushed it to the bottom in terms of infrastructure in the region. In provision of basic healthcare facilities, West Bengal is the best state in the eastern zone. Jharkhand does fairly better than other eastern states in health sector as indicated by relatively better infant mortality ratio, sex ratio and state government expenditure on health and family welfare. The status of education is worst in Jharkhand in the eastern region while Assam has done the best. The literacy rate in the state is one among the lowest as the primary schooling has not been emphasized upon. More schools at primary level need to be opened and appointment of teachers also required to be raised. The state government should allocate higher expenditure towards education to build its human resource. In terms of overall performance, West Bengal holds rank one among the eastern zone states. The state has performed better vis-à-vis its neighbors in agriculture, infrastructure, health and education, which has pushed it to the top ranking. Jharkhand comes at fifth place, one place above its parent state Bihar. Unscientific agriculture, poor infrastructure, naxal problem, and political instability pose major developmental challenges for the state, which need to be transcended to achieve all-round development of the state. 149

Section IX: Looking into the Future What will life look like ten years from now? This is a question that occupies people around, as ordinary citizens wonder what there is to look forward to, policy makers and administrators need to visualise and plan for a better world. There are clear limitations to the ability of forecasters and the year 2008 is an excellent example of this. In fact, ten years ago, the state of Jharkhand was itself just a concept, an ideal towards which people were working. Yet, it is important to have some idea of what to expect ahead and work towards improvements. Thus, even with all the constraints of forecasting abilities, one can always indulge in some speculation, to imagine one probable scenario of the infinite combinations of the future. An interesting academic exercise is to see where the various states in India are projected to be in 2020-21. Per capita Rank of Annual Matching income in country in rate of country’s international the growth current per dollars world* capita income 2008 State 2020-21 Chandigarh 48593 Singapore 6 11.4% Delhi 29869 Italy 27 9.9% Goa 28386 Greece 28 9.2% Haryana 19433 Estonia 55 9.7% Gujarat 17220 Poland 63 10.2% Maharashtra 15585 Russia 65 8.3% Kerala 14795 Mexico 67 8.8% Himachal Pradesh 11950 Bulgaria 81 7.8% Tamil Nadu 10464 Iran 83 6.6% Andhra Pradesh 9752 South Africa 89 7.7% West Bengal 7758 Azerbaijan 101 6.9% Orissa 7430 Jamaica 104 8.5% Chhattisgarh 6820 Tunisia 108 8.6% Jharkhand 5999 Thailand 115 7.9% Assam 4540 Sri Lanka 126 5.6% Madhya Pradesh 3525 Mongolia 139 5.1% 150 Bihar 2763 Pakistan 145 6.4% India ranks 144th in per capita income in the world today

The aim of economic growth is to raise the standard of living of the average citizen; the measure for this is typically the per capita income of the state or country. In this exercise, there has been no attempt to forecast any change in the rate of growth, that is, the states are assumed to grow at the rate they have grown in the past. In other words, the question that is answered here is - if the present growth trend continues, what will be the per capita income in the year 2020-21? More importantly, this per capita income has been translated into international dollar5 terms to compare with current conditions in countries around the world. This makes it easier to visualise the change ahead. One important point to note is that if a state grows at a faster rate than before, its position will naturally improve, whereas if it grows at a slower rate, there will be a comparative fall in the ranking. Thus, the exercise shows for instance that if Chandigarh grows at its present growth rate, by 2020-21, its citizens will enjoy the same per capita income as Singapore does today. As Singapore ranks sixth today in per capita income levels and India ranks 144 th, it is clear what this jump will mean to the people of Chandigarh. Looking ahead, growth rates keep changing. Two years ago, the world was on a high and 2008 saw a collapse that left no state or country untouched. Despite this, a slow recovery has been initiated and India has been doing much better than other countries. It has the strongest growth prospects for 2010. Jharkhand meanwhile, lost some of its high growth steam in 2007-08. However, with a projected growth of 7.9% till 2020-21, the state can be expected to reach the level of income enjoyed today by Thailand, a country that ranks 115th in the world today. However, if Jharkhand can raise its level of economic growth, it has the potential to boost income and standard of living levels, higher than what are found in Thailand today. Parent state Bihar which is the poorest state in India today needs a much higher boost. Given the present trend of economic growth, it will reach the same level as Pakistan and India are today. This means that at current rates of growth, it will take more than a decade for the average per capita income in Bihar to even match the present levels in India today. 5 International dollars refers to converting the income from the local currency in PPP terms or purchasing power parity terms. Market exchange rates fluctuate depending on the trade between countries; if a dollar is Rs. 43, it does not mean that Rs. 43 buys the same amount of goods and services in India as $1 does in the US. Therefore PPP exchange rates are calculated to account for these differences. International dollar therefore is a better method of comparing incomes measured in different currencies in the world. 151

This exercise has been done to give food for thought to the people and to the governing classes in the various states. By making comparisons of projected future income levels with present conditions in countries around the world, the importance of raising growth rates becomes much clearer. What lies in the future is always uncertain but it is important to understand where present growth rates will lead to and work towards improving upon the present growth rates, to push the economies on higher paths and deliver a better living for the citizens of the country. 152

Appendix Table 1.Total Population in the districts of Jharkhand (2001 & 2008) Districts 2001 2008 Bokaro 1,775,961 1,977,187 Chatra 790,680 914,979 Deoghar 1,161,370 1,315,932 Dhanbad 2,394,434 2,677,336 Dumka 1,754,571 1,905,451 Garhwa 1,034,151 1,197,402 Giridih 1,901,564 2,179,195 Godda 1,047,264 1,161,959 Gumla 1,345,520 1,450,259 Hazaribagh 2,277,108 2,559,382 Kodarma 498,683 569,007 Lohardaga 364,405 414,578 Pakaur 701,616 789,904 Palamu 2,092,004 2,399,785 Pashchim Singhbhum 2,080,265 2,239,936 Purbi Singhbhum 1,978,671 2,214,469 Ranchi 2,783,577 3,160,640 Sahibganj 927,584 1,053,599 Total 26,909,428 30,181,000 Source: Census 2001, Indian Development Landscape 2008 153

Table 2.Proportion of SC & ST population (2001) Districts SC ST Bokaro 13 12 Chatra 32 4 Deoghar 13 12 Dhanbad 16 9 Dumka 7 40 Garhwa 24 15 Giridih 13 10 Godda 9 24 Gumla 5 68 Hazaribagh 15 12 Koderma 14 1 Lohardaga 4 56 Pakur 3 45 Palamu 26 19 Paschim Singhbhum 5 53 Purbi Singhbhum 5 28 Ranchi 5 42 Sahibganj 6 29 Source: Census 2001 154

Table 3.Total Literate Population in the districts of Jharkhand (2007-08) District Literacy Rate Bokaro 72.8 Chatra 58.7 Deoghar 62.5 Dhanbad 72.7 Dumka 61.5 Garhwa 58.5 Giridih 57.2 Godda 50.3 Gumla 62.4 Hazaribagh 69.5 Jamtara 57.2 Kodarma 63.7 latehar 63.3 Lohardaga 65.6 Pakaur 44.0 Palamu 62.9 Paschim 69.1 Singhbhum Purbi Singhbhum 76.5 Ranchi 70.4 Sahibganj 45.9 Simdega 64.9 Saraikela 67.4 Source: District Level Household Survey III, Ministry of Health and Family Welfare 155

Table 4.Work Participation Rate across sectors Work Work Work participation participation participation Districts rate - Rural rate - Urban rate - Total Bokaro 32.7 23.7 28.7 Chatra 38.6 23.9 37.8 Deoghar 39 25.4 37.1 Dhanbad 30.7 24.9 27.7 Dumka 45.4 27.1 44.2 Garhwa 39.5 26.2 38.9 Giridih 34.5 24.3 33.8 Godda 40.8 25.4 40.3 Gumla 50.3 25.5 48.9 Hazaribag 37.5 25.5 34.7 Kodarma 36.7 27.4 35 Lohardaga 44.6 24.7 42.1 Pakaur 45 27.7 44.1 Palamu 38.7 24.7 37.8 Pashchimi Singhbhum 47.3 28 44.1 Purbi Singhbhum 44.9 26.7 34.9 Ranchi 45.2 26.5 38.7 Sahibganj 43.9 24.6 41.8 Source: Census 2001 156

Table 5.Total amount of deposits and total credit as per place of sanction, 2008 Districts Deposits Credit as (in Rs per Place '000') of sanction (in Rs '000') Bokaro 4298020 14312100 0 Chatra 6178500 959400 Deoghar 1237190 4301500 0 Dhanbad 6531560 17794100 0 Dumka 8981200 3042500 Garhwa 5224600 1377000 Giridih 1546840 6158400 0 Godda 6621100 2318400 Gumla 5407600 1244100 Hazaribag 1797450 5197000 0 Kodarma 6319900 1609300 Lohardaga 2615700 913300 Pakaur 3484200 1205000 Palamu 1432730 2864600 0 Pashchimi 1785290 5752100 Singhbhum 0 Purbi Singhbhum 6540670 38842000 0 Ranchi 9662160 30313800 0 157

Sahibganj 5274700 1881900 Source : Reserve Bank of India, Basic Statistical Returns, March 2008 158

Table 6.District-wise penetration of LPG & television, 2007-08 Districts % of % of households households owning TV having a motor vehicle Bokaro 51.1 34.4 Chatra 8.0 7.6 Deoghar 22.3 12.6 Dhanbad 56.7 23.0 Dumka 11.0 6.0 Garhwa 9.5 6.1 Giridih 11.3 10.2 Godda 11.4 5.3 Gumla 10.1 7.2 Hazaribagh 35.3 21.9 Kodarma 19.2 12.0 Lohardaga 14.7 12.9 Pakaur 8.5 3.8 Palamu 13.0 8.6 Paschim 18.4 15.7 Singhbhum Purbi Singhbhum 52.8 36.7 Ranchi 39.0 24.6 Sahibganj 9.7 2.8 Jamtara 18.9 9.4 Latehar 7.9 5.2 Ranchi 39.0 24.6 Saraikela 30.0 16.3 Simdega 6.4 7.3 159

Source: District Level Household Survey III, Ministry of Health and Family Welfare 160

Bibliography Bhandari, Laveesh and Amaresh Dubey (2001) Incidence of Poverty and Hunger in Indian Districts. RGICS working papers. Rajiv Gandhi Institute of Contemporary Studies, New Delhi. Central Statistical Organisation (2005) Capital Formation at State Level, Ministry of Statistics and Programme Implementation Seminar Series. — (2006) Economic Census 2005 — (2007) National Accounts Statistics (http://mospi.nic.in/mospi_nad_main.htm) Ministry of Human Resource Development (2007) Selected Educational Statistics 2006-07. Ministry of Agriculture Land Use Statistics at a Glance 2001-02 and 2002-03. Ministry of Communications & Information Technology Annual Report 2008-09 Ministry of Health and Family Welfare National Family Health Survey, Round 3 — Reproductive and Child Health Survey, Round 3. Ministry of Home Affairs Crime in India 2007 National Crime Records Bureau. Ministry of Human Resource Development Annual Report various issues Ministry of Rural Development Ministry of Shipping, Road Transport and Highways Basic Road Statistics Ministry of Shipping, Road Transport and Highways Motor Transport Statistics. Ministry of Health and Family Welfare (2008), District Level Household Survey (2007-08), III National Sample Survey Organisation (NSSO) (2005) Employment and Unemployment Situation in India 2004-05 Part I and II NSS 61th Round, Ministry of Statistics and Programme Implementation. Planning Commission (2002) State Plans – Trends, Concerns and Strategies, 10th Five Year Plan (2002-07), Vol. III. (2002) India Vision 2020 — (2006) Towards Faster and More Inclusive Growth – An Approach to the 11th Five Year Plan. Registrar General and Census Commissioner (2001) Census of India Registrar General of India (2007) Sample Registration Bulletin Volume 39 No.1 Reserve Bank of India(RBI) (2005) A Study of Debt Sustainability at State Level in India. — (2008) Basic Statistical Returns of Scheduled Commercial Banks in India. 161

— (2008) State Finance : A Study of Budgets of 2007-08. All India Council for Technical Education AICTE Handbook for Approval Process Fertilizer Association of India Fertiliser & Agricultural Statistics Indicus Analytics (2009) State of the States 2009 Report prepared for India Today. — (2008) Market Skyline of India 2008 — (2008) Indian Development Landscape State Governments various years Economic Survey. Pradhan Mantri Gram Sadak Yojana, Ministry of Rural Development 162

i The only solution to NREGA corruption in Jharkhand http://openspace.org.in/node/801 ii Hindu May 23rd 2009 http://www.thehindu.com/2009/05/23/stories/2009052358062000.htm iii Times of India, October 23th, 2009. http://timesofindia.indiatimes.com/city/ranchi/Jharkhand-BPL-families-paid-Rs-16- cr-as-bribe-Report-/articleshow/5117280.cms

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Jharkhand Development Report 2010

by Indicus Analytics Private Limited on Feb 17, 2010

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