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Bihar2009 2010

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    Bihar2009 2010 Bihar2009 2010 Presentation Transcript

    • BIHARNovember 2010 1
    • BIHAR November 2010 Investment climate of a state is determined by a mix of factors • Skilled and cost-effective labour • Procedures for entry and exit of firms • Labour market flexibility • Industrial regulation, labour regulation, other • Labour relations government regulations • Availability of raw materials and natural • Certainty about rules and regulations resources • Security, law and order situation Resources/Inputs Regulatory framework Investment climate of a state Physical and social Incentives to industry infrastructure • Condition of physical infrastructure such as • Tax incentives and exemptions power, water, roads, etc. • Investment subsidies and other incentives • Information infrastructure such as telecom, IT, • Availability of finance at cost-effective terms etc. • Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and • Profitability of the industry medical facilities 2
    • BIHAR November 2010 Contents  Advantage Bihar  State economy and socio-economic profile  Infrastructure status  State policies and incentives  Business opportunities  Doing business in Bihar 3
    • ADVANTAGE BIHARBihar November 2010 Bihar – State profile • Covering an area of 94,163 sq km, Bihar is located in the Eastern part of India. The state has a population of 83 million and is one of the most densely-populated states in the country. • The state shares its border with the states of Uttar Pradesh, Jharkhand and West Bengal and the neighbouring country of Nepal. • The state has 38 administrative districts. Patna is the capital city. Gaya, Bhagalpur, Muzaffarpur and Darbhanga are other key cities in the state. • The Ganges, one of the major rivers in the Indian sub-continent, flows through the state, making Bihar‟s land extremely fertile for agriculture. • The four agro-climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops. • The most commonly-spoken languages in the state are Hindi, English, Urdu and Bhojpuri. Source: Maps of India 4
    • ADVANTAGE BIHARBihar November 2010 Advantage Bihar … (1/2) High economic growth The economy of the state has grown at around 16.7 per cent from 2005-06 to 2009-2010. The state provides investment opportunities in sectors such as agro-based industry, food processing, sugar, power, leather, manufacturing and tourism. Policy incentives The state offers a wide range of policy incentives for businesses under the Industrial Policy, 2006. The state also provides incentives for the sugar, renewable energy, food processing and tourism sectors. Source: Maps of India 5
    • ADVANTAGE BIHARBihar November 2010 Advantage Bihar … (2/2) Rich labour pool The state has a large base of industrial labour, making it an ideal destination for wide range of industries. The state has institutes of national importance such as National Institute of Technology (NIT) and Indian Institute of Technology (IIT) which provide skilled manpower to the industries. Location advantage The state enjoys a unique location-specific advantage because of its proximity to the vast markets of Eastern and Northern India, access to the ports such as Kolkata and Haldia, raw-material sources and mineral reserves from the neighbouring states. Source: Maps of India 6
    • ADVANTAGE BIHARBihar November 2010 Bihar in figures … (1/2) Parameter Bihar All-states Source Economy GSDP as percentage of all states‟ GSDP 2.9 100.0 CMIE, as of 2007-08, current prices Average GSDP growth rate (%)^ 10.4 11.8 CMIE, 2000-01 to 2007-08, current prices Per capita GSDP (US$) 306.3 992.5 CMIE, as of 2007-08, current prices Physical infrastructure Installed power capacity (MW) 1,845.7 159,398.5 Central Electricity Authority, as of March 2010 Cellular Operators Association of India, as of June GSM cellular subscribers (No) 32,416,063 456,586,162 2010 Broadband subscribers (No) 63,305* 4,981,976 As of October 2008 Ministry of Road Transport and Highways, Annual National highway length (km) 3,642 70,548 Report 2008-09 Airports (No) 2 133 Industry sources ^ In terms of Indian rupee *Includes Jharkhand 7
    • ADVANTAGE BIHARBihar November 2010 Bihar in figures … (2/2) Parameter Bihar All-states Source Social indicators Literacy rate (%) 47.53 64.8 Census of India, 2001 Ministry of Health & Family Welfare, RHS Bulletin, Birth rate (per 1,000 population) 28.9 22.8 March 2008 Ease of doing business Outstanding investments (US$ billion) 23.7 1,972.6 CMIE, as of March 2010 Industrial infrastructure PPP projects (No) 6 515 www.pppindiadatabase.com PPP: public private partnership 8
    • ADVANTAGE BIHARBihar November 2010 Key industries with policy thrust and factor advantages Industry attractiveness matrix High Food processing Sugar Textiles/ Tourism Policy thrust Medium handlooms Leather Minerals Low Medium High *Factor advantage *Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital 9
    • BIHAR November 2010 Contents  Advantage Bihar  State economy and socio-economic profile  Infrastructure status  State policies and incentives  Business opportunities  Doing business in Bihar 10
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 Socio-economic snapshot of Bihar Parameters Bihar Capital Patna Geographical area (sq km) 94,163 Administrative districts (No) 38 Population density (persons per sq km) 881.4 Total population (million) 83.0 Male population (million) 43.2 Female population (million) 39.8 Decadal population growth rate (%) 28.4 Sex ratio (females per 1,000 males) 919 Literacy rate (%) 47.53 Male (%) 60.32 Female (%) 33.57 Life expectancy (years) Male (years) 61.6 Female (years) 59.7 Sources: CMIE, www.gov.bih.nic.in, Census 2001 11
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 Bihar‟s GSDP • In 2009-2010, the Gross State Domestic Product (GSDP) at current prices was US$ 32.7 billion. • Between March 2000 and March 2010, the average annual GSDP growth rate was 11.8 per cent. • The state had a robust average annual growth of 16.7 per cent between March 2006 and March 2010. Bihar‟s GSDP (US$ billion) 35.0 32.7 31.0 30.0 28.5 CAGR 11.8% 25.0 23.7 20.0 17.6 16.3 14.2 15.1 15.0 11.9 12.0 10.8 10.0 5.0 0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Source: CMIE 12
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 Bihar‟s NSDP • In 2009-2010, the Net State Domestic Product (NSDP) of Bihar was US$ 29.6 billion. • The average NSDP growth rate between 1999-2000 and 2009-2010 was about 11.6 per cent. • This growth has been driven by the secondary sector which includes manufacturing, electricity, gas and water supply and services sector including trade, real estate, hospitality and others. Bihar‟s NSDP (US$ billion) 35.0 28.1 29.6 30.0 25.6 CAGR 11.6% 25.0 21.4 20.0 14.6 15.7 15.0 13.0 13.7 9.9 10.9 10.9 10.0 5.0 0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Source: CMIE 13
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 The tertiary sector has an increasing share in Bihar‟s economy • At US$ 19.8 billion, the tertiary sector Percentage distribution of GSDP contributed 60.7 per cent to the GSDP (at CAGR current prices) in 2009-2010. 100.0% 80.0% 53.9 • It was followed by the primary sector, 60.0% 60.7 13.1% contributing US$ 7.6 billion (23.2 per cent), and the secondary sector contributing US$ 5.3 billion 40.0% 12.4 16.2 14.7% (16.2 per cent). 20.0% 33.7 23.2 7.7% • Between 1999-2000 and 2009-2010, secondary 0.0% sector was the fastest growing sector with a 1999-00 2009-10 CAGR of 14.7 per cent, followed by tertiary Primary Sector Secondary Sector Tertiary Sector sector, with a CAGR of 13.1 per cent. Source: CMIE • This growth has been supported by the manufacturing, electricity, gas and water supply, construction and services. 14
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 Per capita GSDP • Bihar‟s per capita GSDP increased over 2.5 times from US$ 135 in 1999-2000 to US$ 341 in 2009-2010. • A robust secondary and tertiary sector has helped Bihar increase its average per capita GSDP by around 9.7 per cent between 1999-2000 and 2009-2010. • At 14.9 per cent, the state had robust growth in per capita GSDP between March 2006 and March 2010. Per capita GSDP 400.0 327.9 341.3 350.0 306.3 CAGR 14.9% 300.0 258.7 250.0 195.6 US$ 200.0 173.8 183.8 144.8 166.5 150.0 135.2 142.3 100.0 50.0 0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Source: CMIE 15
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 Distribution of households by income • The per capita income of Bihar was US$ 341 in 2009-2010. • The distribution of households by socio-economic classification (SEC) indicates that a significantly large portion of Bihar‟s population falls in the low education and unskilled categories, although there is some concentration at the self-employed and junior-employee levels. Percentage distribution of households in rural areas Percentage distribution of households by SEC* in urban areas by SEC* E2 25.4 49.9 18.6 R4 9.3 43.5 E1 11.5 30.5 D 20.3 R3 23.4 40.7 C 16.9 19.9 14.6 B2 9.3 R2 8.3 11.8 8.5 B1 8.0 5.0 6.8 R1 A2 4.1 6.7 Rural 3.4 A1 3.5 Urban 0 20 40 60 0 10 20 30 Bihar All India Bihar All India Source: BW Marketing Whitebook, 2009-2010 * See Annexure for SEC categories 16
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 Consumer expenditure on household goods and services • In rural Bihar, expenditure on food has greater share compared to all-India. • Share of expenditure on durable goods in rural Bihar is comparable to that of all-India. . Share of average monthly per capita expenditure on household goods and other services 50.0% Urban 70.0% Rural 39.6% 59.7% 60.0% 52.3% 40.0% 33.7% 50.0% 30.0% 40.0% 20.0% 30.0% 20.0% 10.0% 7.1% 5.7% 5.2% 4.2% 10.0% 6.3% 3.2% 2.3% 2.6% 3.7% 2.2% 3.6% 3.1% 0.0% 0.0% Food Education Medical Durable Food Education Medical Durable goods goods All-India Bihar All-India Bihar Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round 17
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 Key industries in Bihar • The natural resources and policy incentives support agro-based sector. Agro-based industry and petroleum products (primarily, Barauni oil refinery) account for around 85 per cent of the total industrial output in the state. • There are 272 large and medium industries, a majority of which are located in Patna. Tirhut is the other major industrial centre. • Small scale industries, micro and artisan enterprises play a major role in terms of employment. As on September 2009, there were 178,863 permanent registered units with total investment of US$ 232.9 million and providing employment to 0.58 million workers. Industrial distribution in Bihar Key industries in Bihar • Food and beverages Food, beverage, • Rubber and plastics tobacco • Transport equipment 33.1% 32.7% Cotton, wool, jute, • Chemicals paper, leather • Tobacco • Textiles Rubber, plastic, • Leather chemicals • Paper, printing and publishing 16.9% 17.3% Material, metal, • Mines and minerals machine, transport, • Dairy equipments • Tea • Sugar Source: Economic Survey of Bihar, 2009-2010 18
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 Bihar is among the three large producers of maize and jute • Major crops produced in the state include sugarcane, Annual production rice, wheat, maize and potato. Crop as of 2007-08 („000 tonnes) • In 2007-08, total production of sugarcane, rice and Rice 5,340.0 wheat was 14.1 million tonnes. Wheat 4,674.0 Sugarcane 4,083.0 • In 2006-07, Bihar was among the three largest Rapeseed and mustard 111.0 producers of maize, jute and mesta in the country. Maize^ 1,720.0 Potato^ 1,178.1 Jute and mesta^* 250.2 Gram^ 50.0 Arhar^ 40.0 Sunflower seed^ 30.0 Tobacco^ 16.1 ^As of 2006-07 *A variety of jute Source: CMIE 19
    • STATE ECONOMY AND SOCIO-ECONOMIC PROFILEBihar November 2010 Investments • As of March 2010, total outstanding investments in Bihar Break up of investments by sectors were US$ 23.7 billion. 1.4% 2.2% • The electricity sector accounted for the largest share of investments (56.8 per cent), followed by services (23.6 5.7% 10.2% Food & beverages per cent) and chemicals (10.2 per cent). Chemicals 23.6% • As of March 2010, investments worth US$ 11.8 billion Electricity were under implementation. Services^ Irrigation • Between December 2005 and November 2009, 245 Others* investment proposals were approved by the State 56.8% Investment Promotion Board (SIPB). • In 2009-2010 (up to November 2009), SIPB has approved 81 proposals that are expected to strengthen the base of ^Services exclude financial services. medium scale industry in the state. *Others include construction, non-metallic mineral products, metals, metal products and mining. SIPB approved Cumulative As of March 2010 Year Source: CMIE proposals (No) (No) 2006-07 (up to January 2007) 72 2007-08 (up to December 2007) 43 115 2008-09 (up to December 2008) 49 164 2009-2010 (up to November 2009) 81 245 Source: Economic Survey of Bihar, 2009-2010 20
    • BIHAR November 2010 Contents  Advantage Bihar  State economy and socio-economic profile  Infrastructure status  State policies and incentives  Business opportunities  Doing business in Bihar 21
    • INFRASTRUCTURE STATUSBihar November 2010 Road network • There is 3,642 km of National Highways and 3,989 km of State Highways in Bihar. Besides, there are major district roads and village roads. • The east-west, four-lane, high-speed corridor and the golden quadrilateral road passes through Bihar. • The State Government aims to provide road infrastructure in Bihar, equivalent to „best in the country‟ by 2015. • According to the State Plan of the Road Source: Maps of India Construction Department of the State, the budgeted outlay for roads and highways was US$ Type of Road Length (Km) 576 million for 2009-2010, up from US$ 58.5 National Highway^ 3,642 million for 2005-06. State Highway 3,989 Major District Roads 8,156 • In terms of physical achievement, compared to Other District Roads 3,818 construction of 415.5 km of road in 2005-06, 2,417.1 km of road was constructed in 2008-09. Village Roads 63,262 Source: Economic Survey of Bihar, 2009-2010, ^Ministry of Road Transport and Highway, Government of India. 22
    • INFRASTRUCTURE STATUSBihar November 2010 Railway network • Bihar has an extensive railway network of more than 5,400 km. • Hajipur in Bihar is the headquarter of the East- Central Railway. The state‟s main railway junctions are at Patna, Gaya, Muzaffarpur, Katihar and Samastipur. • More than US$ 1.37 billion of investment has been planned for the modernisation of the railways in Bihar, including gauge-conversion, doubling of lines and electrification. • Several link-lines, such as Muzaffarpur- Samastipur-Barauni-Katihar and Muzaffarpur- Chapra-Siwan, have been converted to broad Source: Maps of India gauge from metre gauge. 23
    • INFRASTRUCTURE STATUSBihar November 2010 Airports • Bihar has one domestic airport, located in Patna and one international airport at Bodh Gaya. • Several domestic airlines connect Patna to Delhi, Kolkata, Mumbai, Lucknow, Bangalore, Hyderabad and Ranchi. • The airport in Bodh Gaya is used for international connectivity with Bangkok, Colombo and Kuala Lampur. Domestic airport International airport Source: Maps of India 24
    • INFRASTRUCTURE STATUSBihar November 2010 Waterways • The 1,620 km stretch of the river Ganges – that flows between Allahabad in Uttar Pradesh and Haldia in West Bengal – has been declared „National Waterway 1‟ and is being developed for navigation by the Inland Waterways Authority of India. • Patna has a low-level fixed terminal for handling containers.The National Inland Navigation Institute has been set up in Patna to train vessel crews. • It has been proposed that waterways be used to deliver coal to power plants located on the river- side. Source: Maps of India 25
    • INFRASTRUCTURE STATUSBihar November 2010 Telecom infrastructure • As of December 2009, there were 31.7 million Telecom infrastructure in Bihar subscribers as compared to 21.1 million in December March March 2009. As of December 2009, tele-density Parameter 2009 2009 in the state was 33 per cent. No of telephone exchanges 1,236 1,235 • Out of the total number of subscribers, 30.7 No of telephone connections 31.7 21.1 million were wireless subscribers and 1 million (million) were wire-line subscribers. No of wire line connections 1.0 1.0 (million) • As of March 2009, the state had 67,160 public No of mobile phone (million) 30.7 20.1 call offices and 9,056 post offices. Tele-density (per 100 33.0 22.2 population) Major telecom operators in Bihar Source: Department of Telecommunication, Annual Report 2009-2010 Bharat Sanchar Reliance Communications Nigam Limited (BSNL) Idea Cellular Bharti Airtel Vodafone Essar Dishnet Wireless Source: Cellular Operators Association of India 26
    • INFRASTRUCTURE STATUSBihar November 2010 Power • As of March 2010, Bihar had a total installed power generation capacity of 1,845.7 MW, of Installed power capacity (MW) which 584.6 MW was owned by state 1,970.0 1,970.0 2,000.0 1,845.7 utilities and 1,261.1 MW was owned by 1,767.6 1,644.1 central utilities. 1,750.0 1,500.0 • The total installed power capacity comprised 1,250.0 of 1,661.7 MW of coal-based power plants 1,000.0 and 129.4 MW of hydro power plants. 750.0 500.0 • Besides, there is 54.6 MW of installed power 250.0 generation capacity from renewable sources. 0.0 2005-06 2006-07 2007-08 2008-09 2009-2010 • As of March 2009, Bihar State Electricity Board served over 2.18 million consumers Source: Central Electricity Authority across eight transmission circles in the state. 27
    • INFRASTRUCTURE STATUSBihar November 2010 Urban infrastructure • Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), eight projects costing US$155 million have been sanctioned for the urban centres such as Patna and Gaya. • In 2009-2010, US$ 15.7 million was released for projects related to development of water supply and sewage system. • The key areas of development are solid-waste management system, water supply and sewage. City Water supply Solid-waste management Sewage Patna • Per capita water supply of 107 lpcd is • Solid-waste generated in the city is • Around 170 mld of sewage planned to be increased to 145 lpcd. 646 tpd. generated, of which 109 mld is treated. • US$ 116 million sanctioned for Patna • US$ 10.5 million sanctioned for and Danapur area for improvement of improvement of solid-waste • Planned investment of US$ water supply. management. 96.5 million for improvement of sewage management. Gaya • Total water supply in the city is 2.7 • Solid-waste generated in the city is • US$ 20.9 million has been mld. 15.5 tpd. sanctioned for improvement of sewage management. • US$ 7.3 million sanctioned for Gaya to • Planned investment of US$ 2 million improve water supply. for solid-waste management. lpcd: litre per capita per day, mld: million litre per day, tpd: tonnes per day. Source: City Development Plans, JNNURM, Ministry of Urban Development, Government of India 28
    • INFRASTRUCTURE STATUSBihar November 2010 Key public private partnership projects Project cost (US$ Project name Sector PPP type Stage million) Hajipur-Muzaffarpur Roads BOT-Annuity 141.7 Construction Chappra-Hajipur Roads BOT-Annuity 121.3 Construction Kosi bridge project Roads BOT-Annuity 90.9 Construction Mokama-Munger Roads BOT-Annuity 74.3 Construction Forbesganj-Jogbani Roads BOT-Annuity 15.6 Construction Ratu road commercial complex Urban development BOT-Annuity 0.9 Operating BOT: Build-operate-transfer Source: pppindiadatabase.com 29
    • INFRASTRUCTURE STATUSBihar November 2010 Education sector • As per Census 2001, the literacy rate in Bihar was 47.53 per cent. Education infrastructure in Bihar • Deemed/open universities: 13 • In 2007-08, total number of students enrolled in • Research institutions: 15 primary and upper primary (up to class VII) schools was 17.7 million, an increase of over 58 • Government-aided colleges: 451 per cent since 2003-04. • Engineering colleges: 7 • Medical colleges: 8 • Budgeted plan expenditure on education in the • Other colleges: 364 state has increased from US$ 97.3 million in 2005- • Teacher training colleges: 15 06 to US$ 245.8 million in 2008-09, of which 99.9 per cent have been utilised. • Other educational institutions: 164 Source: Economic Survey of Bihar, 2009-2010, Medical • The prestigious Indian Institute of Technology (IIT) Council of India has been established in Patna in 2008-09.The institute offers B. Tech and Ph. D. programmes in computer science and engineering, electrical engineering and mechanical engineering. Reputed technical institutes in Bihar • Indian Institute of Technology, Patna • National Institute of Technology, Patna • National Institute of Fashion Technology, Patna 30
    • INFRASTRUCTURE STATUSBihar November 2010 Health infrastructure • As of October 2009, Bihar had 10,634 health centres of Health indicators as of 2008 various categories. There are 487 rural primary health Persons served per doctor 25,000 centres (PHC), 46 urban PHCs, 1,234 additional PHCs and 70 referral hospitals. Birth rate* 28.9 Death rate* 7.3 • On an average, there are 110 health centres for a population of 1 million. At the district level, there is a Infant mortality rate** 56 wide variation in health coverage. Life expectancy at birth (years) as of 2001 Male 61.6 • Development of health infrastructure in Bihar has resulted into higher patient turnarounds in outpatients Female 59.7 department, from 10.5 million in 2006-07 to 16 million in 2008-09. *Per thousand persons ** Per thousand live births Sources: Economic Survey of Bihar, 2009-2010, Ministry of • An institute on the lines of All India Institute of Medical Health and Family Welfare, Government of India, Census 2001 Sciences (AIIMS) has been proposed to be set up in Patna.There will also be a medical college offering undergraduate, postgraduate and doctoral course. Government initiatives in the health sector • Increase in sanctioned manpower in departments such as medical, public health and family welfare. • Higher level of personnel appointments and training. • Involving private sector in support services related to cleaning, pathology and radiology. • Free drug distribution and indoor treatment. 31
    • INFRASTRUCTURE STATUSBihar November 2010 Cultural infrastructure • According to the „Sports Policy, 2007‟, the State Major museums in Bihar Government is undertaking various initiatives to promote sports in the state by augmenting • Patna Museum, Patna sports infrastructure, providing facilities for • Chandra Dhari Museum, Darbhanga coaching and supporting the promising players. • Gaya Museum, Gaya • An international conclave on „Experience • Nardhaha Museum, Nawada Buddhism - In the land of its origin‟ was • Bhagalpur Museum, Bhagalpur organised in February, 2010, to give major thrust • Maharaja Lakshimshwar Sing Museum, to cultural tourism and explore potential related Darbhanga to the Buddhist circuits in India, especially in • Sitaram Upadhya Museum, Buxar Bihar. • Bihar Sharif Museum, Nalanda • Bihar Government has released a „Cultural • Chandra Sekhar Singh Museum, Jamui Policy‟ in 2004, the purpose of which is to • Ramchandra Shahi Museum, Muzaffarpur preserve and promote local culture. Source: Youth, Art & Culture Department, Government of Bihar • There are 19 museums in the state and the State Government has taken steps for their development. 32
    • INFRASTRUCTURE STATUSBihar November 2010 Industrial infrastructure … (1/3) • The Bihar Industrial Area Development Authority (BIADA) is responsible for promoting and assisting the rapid development of industries in the industrial areas and estates. • Operations of BIADA are divided in four regions – Patna, Muzaffarpur, Darbhanga, Bhagalpur to facilitate quick services to entrepreneurs. • Regional offices, under the guidelines of head office, develop industrial area, industrial growth centres and implement projects. Industrial area Total land Vacant land Largest vacant land Average price of land Region (No) (acre) (acre) (acre) (US$/acre) Patna 17 1,506.2 239.4 2.8 79,500 Bhagalpur 12 1,236.3 261.6 150 11,000 Darbhanga 10 899.8 99.0 2.5 10,490 Muzaffarpur 7 1,040.4 284.0 3.5 23,670 As of May, 2010 Source: BIADA 33
    • INFRASTRUCTURE STATUSBihar November 2010 Industrial infrastructure … (2/3) • BIADA is developing industrial growth centres across Industrial growth centres in Bihar the state, which will have the infrastructure to • Kahalgaon • Gidha promote industries in sectors such as agro-processing, light engineering, electronics, repairs and servicing and • Begusarai • Maranga (Purnia) garments. • Aurangabad • Khagaria The other projects planned by BIADA are as follows: Source: Economic Survey of Bihar, 2008-09 • BIADA has proposed acquisition of 1,900 acres of land for Bihta Mega Industrial Park which will have prestigious educational institutes such as Indian Institute of Technology (IIT) and National Institute of Technology (NIT). • BIADA has allotted 150 acres of land for textile park and 25 acres of land for handloom park at mega growth centre at Kahalgaon. • BIADA will also allot land to Indian Oil Corporation Limited (IOCL) for its proposed petrochemical complex at Begusarai. • BIADA is building separate feeder lines for uninterrupted electric supply in the selected industrial areas of Patna, Fatuah, Hajipur, Muzaffarpur, Gidha, Barari and Maranga. 34
    • INFRASTRUCTURE STATUSBihar November 2010 Industrial infrastructure … (3/3) Centres Industries Industrial clusters in Bihar Major agricultural centre of trade, exporting grain, sugarcane, sesame and medium-grained Patna rice; has also emerged as a manufacturing hub in Bihar with the highest number of industrial units. Has the second-highest number of industrial Tirhut units in the state; food/beverage processing and manufacturing units are located here. Important trade centre for cloth; famous for Muzaffarpur exporting fruits, particularly, mango and litchi. Has major industrial units including those of Indian Oil Corporation‟s refinery; capacity Barauni addition of the existing thermal power station is being carried out. Famous worldwide for tussar silk; trading of agricultural produce and cloth is an important Bhagalpur economic activity. Other major industries include rice, sugar milling and wool weaving. Manufacturing Textile/sericulture Gaya Major weaving centre, important tourist hub Sugarcane Agro-based industries (except sugarcane) Source: Economic Survey of Bihar, 2008-09 35
    • INFRASTRUCTURE STATUSBihar November 2010 Infrastructure investments • As of March 2010, the total investments in Investments Bihar‟s infrastructure sector were around US$ Infrastructure type (US$ million) 9 billion. Power* 5,646.5 • Over 62 per cent of investments in Roads 1,884.4 infrastructure were in the area of power Oil and gas 7.2 generation and distribution. Railway 1,446.9 • About 21 per cent of the investments were in Total 8,984.9 road transport and around 16 per cent were in the railways sector. *Generation and distribution Source: CMIE • Other major infrastructure sector attracting As of March 2010. investments was oil and gas. 36
    • BIHAR November 2010 Contents  Advantage Bihar  State economy and socio-economic profile  Infrastructure status  State policies and incentives  Business opportunities  Doing business in Bihar 37
    • STATE POLICIES AND INCENTIVESBihar November 2010 Sector specific policies … (1/6) Industrial Policy, 2006 Aim: To establish new industries and revive sick units, provide conducive environment to attract domestic and foreign investment and provide environment for a balanced development of the state. Key initiatives and objectives: • Creation of corpus fund along with commercial bank and industry association for the revival of sick and closed units . A state- level committee will decide on concessions and/or exceptions to be provided for rehabilitation of concerned units. • Single-window clearance system to be provided. • Infrastructure Development Enabling Act, 2006, for development of infrastructure through private participation. • Establishment of land bank to meet requirements of industries and development schemes. • Enhancement of competitiveness of industrial units through pre- and post-production incentives. • Incentives to handloom sector industries. • Development of handicrafts, handloom, khadi, silk and village industries. • Provision of self-certification to simplify inspection of factories. 38
    • STATE POLICIES AND INCENTIVESBihar November 2010 Sector specific policies … (2/6) Industrial Policy, 2006 (continued) Key incentives: • Exemption from stamp duty and registration fee; provision of reimbursement of value-added tax (VAT). • Reimbursement of 50 per cent of cost on preparation of project report, up to US$ 1,630. • Incentives on purchase of land and sheds:  For small or tiny units at 50 per cent of the cost, up to a maximum of US$ 163,043.  For medium to large units at 25 per cent of the cost, up to a maximum of US$ 326,087. • Incentive grant of up to 50 per cent for expenditure on plant and machinery for captive power generation units. • Electricity duty exemption for five years for captive generation of power for new units. • Exemption from luxury tax, electricity duty, conversion charge and market fee for seven years. 39
    • STATE POLICIES AND INCENTIVESBihar November 2010 Sector specific policies … (3/6) Food Processing Policy Objectives: To address the infrastructure, technology, skills and marketing constraints being faced by rice, maize, pulses, honey, makhana, fruits and vegetables, and other food processing units in the state by facilitating the setting up of new food processing units. To aid the expansion and up-gradation of existing units. Key incentives: • Grant of US$ 3.25 million or up to 20 per cent of the total project cost, whichever is less, for setting up food parks. • Grant up to 40 per cent of the project cost, subject to a maximum of US$ 2.17 million, for a special purpose vehicle (SPV) for a common cluster infrastructure and up to 35 per cent of the project cost, subject to a maximum US$ 1.08 million, for an individual investor. • For expansion and capacity increase of existing units, the benefits of the scheme will only be available if the expansion project leads to capacity addition of at least 50 per cent. 40
    • STATE POLICIES AND INCENTIVESBihar November 2010 Sector specific policies … (4/6) Sugar Incentive Package Aim: To serve the sugar industry by building on the factor advantages of the state. Key incentives: • Re-imbursement of central excise duty on sugar for five years. • Exemption from purchase tax on sugarcane for five crushing-years. • Exemption from stamp duty and registration fees for land transfer. • Subsidy of 10 per cent on capital investment or a maximum of US$ 2.2 million, whichever is less, on machinery after completion of first year of commercial production. • Incentive package for distillery and ethanol as well as co-generation of power. 41
    • STATE POLICIES AND INCENTIVESBihar November 2010 Sector specific policies … (5/6) Bihar Tourism Policy Aim: To promote and develop tourism in Bihar and to transform tourism industry as a vital part of vibrant economic activities of the state. Key initiatives: • The State Government will prepare an area-based master plan for developing infrastructure that is necessary for the tourist destinations. The Department of Tourism will formulate a 20-year master plan with future projection for development of tourism in the state. • All facilities and incentives available for industry will apply to investment in tourism sector. • The state will promote private investment for setting up hotels and heritage hotels. The State Government will explore and develop possibilities of launching a paying-guest scheme. • Rules and regulations for land allotment will be simplified to create tourism infrastructure. • The Department of Tourism will identify potential tourist destinations where religious fairs and festivals are an integral part of culture and will promote such destinations. • Tourist information centres will be equipped with the modern information and communication technology devices. • The State Government will promote weekend tourism, wildlife tourism, aqua tourism and rural tourism. • Human resource required for growth of tourism will be developed. 42
    • STATE POLICIES AND INCENTIVESBihar November 2010 Sector specific policies … (6/6) Policy guidelines for private sector participation for developing non-conventional energy sources Aim: To encourage private sector participation in decentralised generation of grid-grade power, through the use of the available inputs for renewable and non-conventional energy sources such as solar, wind, water, biomass and other wastes. Key initiatives: • Any industry, institution, private agency, partnership firm, consortium, panchayat, cooperative society or registered society interested in installing and generating electricity from non-conventional energy sources such as mini- and micro-hydro plants, solar-thermal plants, solar-photovoltaic systems, biomass plants, bagasse-based plants, wind plants, cogeneration plants, municipal and industrial-waste plants will be eligible for availing incentives under the scheme. • The Bihar State Hydro-electric Power Corporation (BHPC) and/or Bihar Renewable Energy Development Agency (BREDA) will provide necessary information and assistance regarding identification and selection of feasible sites. • The project will be treated like that of any other industry and incentives / concessions applicable to new industrial units under industrial policy will be available to the project. • There will be no restriction on power generation capacity or supply of electricity to the grid. 43
    • BIHAR November 2010 Contents  Advantage Bihar  State economy and socio-economic profile  Infrastructure status  State policies and incentives  Business opportunities  Doing business in Bihar Company logos cited in this section are registered trademarks of the respective companies. 44
    • BUSINESS OPPORTUNITIESBihar November 2010 Food processing and dairy • Bihar is one of the largest producers of vegetables and fruits in the country. The factor advantages of the state Key players make it a suitable place for setting up units in the food processing sector. Bihar State Cooperative Milk Producer‟s Federation (COMPFED ) • The state is one of the leading producers of banana, Usher Agro Limited mango, litchi and vegetables such as onions, tomato, potato, egg-plant and makhanas in the country. • In 2008-09, total production of fruits in Bihar was 3.85 million tonnes and total production of major vegetables was 13.4 million tonnes. • Food processing is a priority sector for the State Government. Up to 40 per cent of the project cost for setting up food processing units is subsidised by the State Government. • Besides food processing, the State Government promotes cooperative marketing of milk and dairy products. Source: Economic Survey of Bihar, 2009-2010 45
    • BUSINESS OPPORTUNITIESBihar November 2010 Food processing and dairy – company profiles Bihar State Cooperative Milk • COMPFED is an organised milk processing cooperative, which collects milk through district Producer‟s Federation level cooperative unions, processes and markets the same. (COMPFED ) • It also supports members with interventions across technology, supply chain, marketing, training, etc. • COMPFED covers five districts directly and 26 districts through six district level cooperative unions. • In 2009-2010, COMPFED procured around 1 million litres of milk per day from a member base of around 0.46 million. Usher Agro Limited • Usher Agro Limited is one of the large basic food grain (rice and wheat) processing companies in India. The company established its rice processing mill in Buxar, Bihar in 2003 • In 2009, the revenue of the company was US$ 44.1 million compared to US$ 7.4 million in 2005. • The products of the company are sold under the brand name „Rasoi Raja‟. 46
    • BUSINESS OPPORTUNITIESBihar November 2010 Chemical, oil and gas • The major drivers of chemical, oil and gas industry in Bihar are proximity to sea ports – Kolkata and Key players Haldia, availability of labour, and the vast market of Indian Oil Corporation Limited Eastern India. Graphite India Limited • Petroleum remains a large contributor to the state‟s Krishi Rasayan Exports Private Limited GSDP as it has one of the largest public sector refineries in the country - Indian Oil Corporation Limited (IOCL). • IOCL is expected to set up petrochemical complex at Begusarai. • Oil and Natural gas Corporation Limited (ONGC) is carrying out exploration for petroleum and natural gas in four districts in Purnea division. • GAIL (India) Limited is considering setting up a gas based 300 MW power plant at Bettiah. Source: Economic Survey of Bihar, 2009-2010 47
    • BUSINESS OPPORTUNITIESBihar November 2010 Chemical, oil and gas – company profiles Indian Oil Corporation • IOCL is India‟s leading petroleum refinery and a Fortune 500 company. It has a refinery at Limited (IOCL) Barauni, with an annual capacity of 6 million metric tonnes. • Secondary processing facilities, such as a resid-fluidised catalytic cracker, diesel hydro-treating and a sulfur-recovery unit, have been added to the main refinery. • The 498-km long Haldia-Barauni crude oil pipeline (HBCPL) receives crude oil at the Haldia oil jetty and transports it to the Barauni refinery. Graphite India Limited • GIL was incorporated in 1963. The company has nine plants located across India and producing (GIL) graphite products, coke and power. • The coke division of the company at Barauni, in Bihar is engaged in manufacture of calcined petroleum coke (CPC) and has an installed capacity of 30,000 tonnes per annum. • In 2009-2010, the company produced 30,781 tonnes of calcined petroleum coke in its Barauni plant, surpassing installed capacity. Krishi Rasayan Exports • KREPL is one of the major agri-chemical manufacturer, with five composite technical Private Limited (KREPL) manufacturing units. Total revenue of the company in 2008-09 was US$ 61.5 million. • In 1973, the company set up its plant at Muzaffarpur in Bihar for producing dusting powder formulation. • The company operates a poultry feed unit in Muzaffarpur with a capacity of 150 tonnes per day in pellet-form. 48
    • BUSINESS OPPORTUNITIESBihar November 2010 Sugar • Sugar, the largest agro-based industry in the state Key players plays a prominent role in Bihar‟s economy. K. K. Birla Group • The North of the state is climatically well-suited for Riga Sugar Company Limited producing good quality sugarcane with minimum Vishnu Sugar Mills Limited inputs as compared to the other states. Eastern Sugar & Industries Limited • In 2007-08, about 108,560 hectares were under sugarcane production and the state produced about 3.85 million tonnes of sugarcane. • It is estimated that about 500,000 farmers are engaged in sugarcane cultivation and another 50,000 skilled and unskilled labours are working in sugar mills. • The State Government offers incentive package to the sugar industry.The Sugarcane Institute in Pusa and Rajendra Agricultural University are engaged in sugarcane-related research activities. 49
    • BUSINESS OPPORTUNITIESBihar November 2010 Sugar – company profiles K. K. Birla Group • The K K Birla Group‟s sugar company, Upper Ganges Sugar & Industries Limited (UGSIL), has two units in Bihar – Bharat Sugar Mills at Sidhwalia, with a crushing capacity of 5,000 tonnes per day (tpd) and Hasanpur Sugar Mills at Hasanpur, with a crushing capacity of 3,000 tpd. • The Sidhwalia unit also has a 18 MW cogeneration power plant. Riga Sugar Company • The company belongs to the P. L. Dhanuka group and was incorporated in 1980. Limited • It manufactures ethyle alcohol, molasses and sugar at Sitamarhi in Bihar. • The plant has crushing capacity of 5,000 tonnes per day. Vishnu Sugar Mills Limited • The company is promoted by the Bajoria family and was incorporated in 1932. • It manufactures molasses and sugar at Gopalganj in Bihar. • The plant has crushing capacity of 3,500 tonnes per day. Eastern Sugar & Industries • The company was incorporated in 1932. Limited • It manufactures molasses and sugar at Purba Champaran, in Bihar. • The plant has crushing capacity of 2,500 tonnes per day. 50
    • BUSINESS OPPORTUNITIESBihar November 2010 Manufacturing industry • After bifurcation of Bihar, a number of large units (mostly mining and engineering) of erstwhile Bihar are Key players now located in Jharkhand. Bata Industries Bharat Wagon and Engineering Company • The state has leather, textile and handloom industries Gangotri Iron & Steel Company as its prominent sectors, apart from some engineering units. • The state has ample raw materials (hides and skin of livestock), technical skills (leather technology institutes) and manpower, which are the major drivers for leather industry in the state. • There are 85 leather units in the state of which 60 are manufacturing units and 25 units take up job-work. 51
    • BUSINESS OPPORTUNITIESBihar November 2010 Manufacturing industry – company profiles Bata Industries • Promoted by the Toronto-based Bata Shoes, Bata is among India‟s largest manufacturer and marketer of footwear products. • The company has a tannery at Mokamehghat, in Bihar and a leather footwear factory at Bataganj, in Patna. Bharat Wagon and Engineering • The Bharat Wagon and Engineering Company is a part of Bharat Bhari Udyog Nigam, a Company Government of India undertaking . It has a over 50 years of experience in heavy-steel fabrication. • It has two units at Mokama and Muzaffarpur, which are ISO 9001 certified for manufacturing wagons; a third unit at Muzaffarpur manufactures gas cylinders. All three plants have captive-power generation capacity. Gangotri Iron & Steel Company • The company produces mild steel (MS) bars and billets. • In 2009, the company produced 19,665 tonnes of MS bar and 8,888 tonnes of MS billet. • In January 2009, the company set up a new unit in Bihta, in Bihar. The company has production capacity of 145,000 tonnes of MS bar, 108,900 tonnes of MS billet and 540,000 cubic metre of oxygen. 52
    • BUSINESS OPPORTUNITIESBihar November 2010 Tourism … (1/2) • The state has a rich cultural heritage as it is associated with pilgrimages and historical monuments related to religious gurus such as the Buddha, Mahavir, Guru Gobind Singh. • Tourism in the state revolves around the Buddhist circuit (Bodhgaya, Rajgir, Nalanda), the Jain circuit (Bisram, Mandar hill, Champanagar) and the Sufi circuit. • Monuments of historical and religious significance present tremendous potential for attracting both domestic and foreign tourists. • The state‟s tourism policy stresses on Source: Maps of India developing infrastructure and financing for tourism. • The Bihar Government is preparing a 20-year master plan for promotion and development of tourism in the state. 53
    • BUSINESS OPPORTUNITIESBihar November 2010 Tourism … (2/2) • In an effort to promote tourism in the state, the Department of Tourism, Government of Bihar, along with the Ministry of Tourism, Government of India, organised an international Buddhist Conclave in Nalanda and Rajgir in February, 2010. • The state is also developing the Buddhist tourist circuit (Bodh-Gaya-Rajgir-Nalanda) with an assistance of US$ 4.6 million from the Central Government. • In 2009, the total number of tourist arrival was around 16.1 million. Arrivals have grown at around 23.4 per cent between 2007 and 2009. Arrival of domestic tourists in Bihar Arrival of foreign tourists in Bihar 18 450 423 15.7 16 400 345.6 14 11.9 350 12 10.4 300 thousand million 10 250 8 200 177.4 6 150 4 100 2 50 0 0 2007 2008 2009 2007 2008 2009 Source: Ministry of Tourism, Government of India 54
    • BUSINESS OPPORTUNITIESBihar November 2010 Major industrial projects being implemented Investment Project Sector Promoter Location (US$ million) Power Power Grid Corporation of India Kahalgaon-II transmission line 3,867.8 Kahalgaon-Biharsharif distribution Limited (PGCIL) Kahalgaon-North Karanpura-Barh Power Kahalgaon-North PGCIL 2,000.0 composite transmission line distribution Karanpura Barh power project Power NTPC Limited 1,889.7 Barh Nabinagar power project Power Bharatiya Rail Bijlee Co Limited 1,087.0 Nabinagar Telecom Basic telecom sevices project Tata Teleservices Limited 1,087.0 Partially in Bihar services Patna Ganga railway bridge project Railways East Central Railway 181.5 Sonepur Sub-transmission and distribution Power Bihar State Electricity Board 178.9 Bihar project distribution Sugar (Paschimi Champaran) project Sugar Globe Sugar Refinery Limited 173.9 Champaran Sitamarhi-Jaynagar-Nirmali railway Sitamarhi-Jaynagar- Railways East Central Railway 143.2 line project Nirmali Nawada-Laxmipur railway line Railways East Central Railway 131.0 Nawada-Laxmipur project Araria-Galgalia railway line project Railways North Eastern Railway 115.2 Galgalia Sugar (Betiah) project Sugar Moria Sugar Private Limited 108.7 Betiah Source: projectstoday.com 55
    • BUSINESS OPPORTUNITIESBihar November 2010 Key industrial projects being planned Investment Project Sector Promoter Location (US$ million) Pirpainti thermal power project Power Nalanda Power Company 2,173.9 Pirpainti Nabinagar thermal power project Power Bihar State Electricity Board 1,956.5 Nabinagar Coal-based power (Buxar) project Power Krishak Bharati Co-Op. Limited 1,304.4 Buxar Hathiadah and Durgawati pumped storage Bihar State Hydroelectric Power 933.4 Bhabhua (hydel) power project Power Corporation Limited Ministry of Railways, Diesel locomotive (Marhowra) project Manufacturing 591.1 Marhowra Government of India Thermal power (Barauni) project Power Vikash Metal & Power Limited 543.5 Barauni Electric locomotive factory (Madhepura) Manufacturing Central Government 426.2 Madhepura project Khagaria- Bakhtiarpur (NH-31) road National Highways Authority of Roadways 383.9 Bakhtiarpur project India Integrated steel (Begusarai) project Finished steel Vikash Metal & Power Limited 326.1 Begusarai High sulphur crude maximisation project Refinery Indian Oil Corporation Limited 171.7 Barauni Co-generation power (Paschimi Paschimi Power Kamlapur Sugar & Industries 168.8 Champaran) project Champaran Hospital-cum-medical college (Bihta) Employees State Insurance Hospitals 138.5 Bihta project Corporation Water and Water supply scheme (Patna) Government of Bihar 95.9 Patna sewerage pipeline Source: projectstoday.com 56
    • BIHAR November 2010 Contents  Advantage Bihar  State economy and socio-economic profile  Infrastructure status  State policies and incentives  Business opportunities  Doing business in Bihar 57
    • DOING BUSINESS IN BIHARBihar November 2010 Key approvals required … (1/2) Approvals and clearances required Departments to be consulted Estimated time in days Incorporation of company Registrar of companies NA Registration, Industrial Entrepreneurs Nodal agency (Industries Department) NA Memorandum (IEM), industrial licenses Seven to 21 days (up to 90 Allotment of land Bihar Industrial Area Development Authority days for acquisition of non- industrial land) 30 days (45 days for Revenue and Land Reforms Department, Permission for land use conversion of non-industrial Government of Bihar land for use) Registration under Factories Act and Boilers Offices of Inspector of Factories, Inspector of Up to 120 days Act Boilers Site environmental approval, No objection Bihar State Pollution Control Board and Ministry certificate and consent under Water and of Environment and Forests, Government of 60 days Pollution Control Acts Bihar Approval of construction activity and building Urban Development and Housing Department, Seven days plan Government of Bihar NA: not available 58
    • DOING BUSINESS IN BIHARBihar November 2010 Key approvals required … (2/2) Approvals and clearances required Departments to be consulted Estimated time in days Sanction of power Bihar State Electricity Board Up to 30 days Water Resources Department, Government of Sanction of water Up to 30 days Bihar State Fire Service Headquarters, Government of Fire service clearance Up to 15 days Bihar Registration under state‟s Sales Tax Act, and Sales tax department, central and state excise Seven days Central and State Excise Act departments 59
    • DOING BUSINESS IN BIHARBihar November 2010 Cost of doing business in Bihar Cost parameter Cost estimate Source US$ 384,780 in Patliputra, US$ 83,700 in Bihar Industrial Area Development Industrial land (per acre) Muzaffarpur Authority Labour Resources Department, Labour (per man year) US$ 825 to US$ 1,275 Government of Bihar Office space rent US 20 cents to US 35 cents Industry sources (per sq ft per month) Residential rent US$ 145 to US$ 280 Industry sources (2,000 sq foot per month) Five-star hotel room (per night) US$ 100 to US$ 180 Leading hotels in the state Commercial and industrial electricity Industrial: US 8.8 cents to US 9.2 cents Bihar State Electricity Board (per kWh) Commercial: US 9.1 cents to US 10.5 cents 60
    • DOING BUSINESS IN BIHARBihar November 2010 Single-window approval mechanism • Bihar Single Window Clearance Act, 2006, and the Bihar Industrial Policy, 2006, promote industrial growth by giving rapid clearances, issuing of licenses and certificates and providing an overall investor- friendly environment in the state. • The Industries Department of the state and the District Investment Centre (DIC) act as nodal agencies for investments. • Proposals for investment greater than US$ 21.7 million are routed through Chief Minister and the Cabinet for approval. Investment handled Body Chairman Nodal agency US$ 2.17 million to State-level Industries Industries Development investment Development US$ 21.7 million (Udyog Mitra) promotion board Commissioner District-level Below US$ 2.17 million District Collector DIC committee 61
    • DOING BUSINESS IN BIHARBihar November 2010 Key investment promotion offices … (1/2) Industries Department, • State-level nodal body under the single-window regime for investments of above US$ 2.17 Government of Bihar million. • Primary functions involve coordinating applications from investors, processing and facilitating the process of getting clearances from various departments. • The Department, headed by the Principal Secretary, supervises district industry centres (DIC), industrial area development authorities and industrial premises in the state. District Industry Centre (DIC) • District-level nodal agency for investments below US$ 2.17 million. • DIC supports entrepreneurs in identifying local resources, supply of raw materials and equipment, arrangement of credit facilities, marketing, quality control, etc. Bihar Industrial Area • BIADA develops infrastructure for industries in segments such as roads, drainage, water, Development Authority (BIADA) power, etc. • Supports entrepreneurs in setting up industries and availing incentives offered by the State Government. 62
    • DOING BUSINESS IN BIHARBihar November 2010 Key investment promotion offices … (2/2) Bihar State Finance Corporation • The main state-level institution that provides term lending facilities to industrial entrepreneurs. • The corporation has been revived to supplement the role of banks in lending to industries. Bihar State Electricity Board • The board is responsible for the synchronised development of generation, transmission (BSEB) and distribution of power in the state. Bihar State Pollution Control • The purpose of the organisation is prevention and control of pollution through inspection Board of treatment plants, standards application, research and development activities, etc. • Headquartered at Patna, the organisation has seven zonal-offices. 63
    • DOING BUSINESS IN BIHARBihar November 2010 Contact list … (1/2) Key agency Contact information Industries Department, Vikas Bhawan Government of Bihar Bailey Road, Patna - 800 001, Bihar. Phone: 91-0612-2215 211 Fax: 91-0612-2217 991 Website: http://industries.bih.nic.in/ Bihar State Finance Corporation Fraser Road, Patna - 800 001, Bihar Phone: 91-0612-2332 210 Fax: 91-0612-2217 991 E-mail: bsfcpatna@gmail.com Website: http://bsfc.bih.nic.in/ 64
    • DOING BUSINESS IN BIHARBihar November 2010 Contact list … (2/2) Key agency Contact Information Bihar State Electricity Board (BSEB) Vidyut Bhawan, Bailey Road, Patna - 800 001, Bihar. Phone: 91-0612-2504 610 Website: http://bseb.bih.nic.in/ Bihar Industrial Area Development Authority Udyog Bhawan, First floor, (BIADA) East Gandhi Maidan, Patna - 800 004, Bihar Phone: 91-0612-2302 914 Fax: 91-0612-2302 989 E-mail: md@biada.in, info@biada.in, Website: http://www.biada.in Bihar State Pollution Control Board Beltron Bhawan, Shastri Nagar Jawahar Lal Nehru Marg, Patna - 800 023, Bihar Phone: 91-0612-2302 914 Fax: 91-0612-2281250 Email: bspsb@vsnl.net, Website: http://wgbis.ces.iisc.ernet.in 65
    • DOING BUSINESS IN BIHARBihar November 2010 Annexure … (1/3) Socio-economic classification (SEC) of urban and rural households – urban grid Certificate course, School up to four but not graduate School up to five Graduate/post Graduate/post years/ literate, but no formal to nine years professional SSC/HSC schooling graduate graduate Illiterate general Education/occupation Unskilled workers E2 E2 E1 D D D D Skilled workers E2 E1 D C C B2 B2 Petty traders E2 D D C C B2 B2 Shop owners D D C B2 B1 A2 A2 Entrepreneurs: employee none D C B2 B1 A2 A2 A1 Entrepreneurs: employee < 10 C B2 B2 B1 A2 A1 A1 Entrepreneurs: employee > 10 B1 B1 A2 A2 A1 A1 A1 Self-employed professionals D D D B2 B1 A2 A1 Clerical/salesman D D D C B2 B1 B1 Supervisory level D D C C B2 B1 A2 Officers/executives: junior C C C B2 B1 A2 A2 Officer/executive: middle/senior B1 B1 B1 B1 A2 A1 A1 Source: Market Research Society of India 66
    • DOING BUSINESS IN BIHARBihar November 2010 Annexure … (2/3) Socio-economic classification (SEC) of urban and rural households – rural grid Type of house Semi- Education Pucca pucca Kuccha Illiterate R4 R4 R4 Literate but no formal R3 R4 R4 school Up to fourth standard R3 R3 R4 Fifth to ninth standard R3 R3 R4 SSC/HSC R2 R3 R3 Some college but not R1 R2 R3 graduate Graduate/post-graduate R1 R2 R3 (general) Graduate/post-graduate R1 R2 R3 (professional) Source: Market Research Society of India 67
    • DOING BUSINESS IN BIHARBihar November 2010 Annexure … (3/3) Exchange rate Year INR equivalent of one US$ 2000 46.6 2001 48.3 2002 48.0 2003 45.6 2004 43.7 2005 45.2 2006 45.0 2007 42.0 2008 40.2 2009 46.0 2010 47.4 Average for the years 68
    • BIHAR November 2010 DISCLAIMER India Brand Equity Foundation (“IBEF”) engaged presentation to ensure that the information is accurate to ICRA Management Consulting Services Limited (IMaCS) the best of IMaCS‟s and IBEF‟s knowledge and belief, the to prepare this presentation and the same has been content is not to be construed in any manner whatsoever prepared by IMaCS in consultation with IBEF. as a substitute for professional advice. All rights reserved. All copyright in this presentation and IMaCS and IBEF neither recommend nor endorse any related works is solely and exclusively owned by IBEF. The specific products or services that may have been same may not be reproduced, wholly or in part in any mentioned in this presentation and nor do they assume material form (including photocopying or storing it in any any liability or responsibility for the outcome of decisions medium by electronic means and whether or not taken as a result of any reliance placed on this transiently or incidentally to some other use of this presentation. presentation), modified or in any manner communicated to any third party except with the written approval of Neither IMaCS nor IBEF shall be liable for any direct or IBEF. indirect damages that may arise due to any act or omission on the part of the user due to any reliance This presentation is for information purposes only. While placed or guidance taken from any portion of this due care has been taken during the compilation of this presentation. 69