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Political factors affecting
business environment of Bihar
Gurparvesh kaur (17)
infrastructure management
BIHAR-The land of Buddha
Bihar is the 12th largest state of India in terms of
its area and the 3rd largest in terms of
population. Buddhism and Jainism were born in
the state of Bihar.
• Capital-patna
• Chief Minister-Nitish kumar
• Governor-Devanand Konwar
• Area-94,163.00 sq. kms
• No. of districts -38
Facts and Figures
Description 2011 2001
Approximate Population 10.38 Crore 8.30 Crore
Actual Population 103,804,637 82,998,509
Male 54,185,347 43,243,795
Female 49,619,290 39,754,714
Population Growth 25.07% 28.43%
Percantage of total
Population
8.58% 8.07%
Industries in bihar
• Agro industry
• sugar industry
• Silk industry
• Coal industry
• Brewery industry
Agro industry
Bihar is the first largest producer of vegetables and
second largest producer of fruits in the country.
Production of maize, sugarcane, litchi,mango,
vegetables, and aromatic rice is also carried out.
Bihar is the largest producer of honey in the
country. Bihar accounts for 65% of India's annual
litchi production
Initiatives undertaken by bihar government
to develop agro indusrty
• SCHEME FOR FOOD PARKS
Objective:To create modern enabling infrastructure for food
processing units in the state with farm to market linkages.
• SCHEME FOR INTEGRATED DEVELOPMENT OF FOOD
PROCESSING SECTOR
Objective To address the infrastructure, technology, skills and
marketing constraints being faced by Rice, Maize, Pulses,
Honey, Fruits and Vegetables and other food processing units
in the State by facilitating setting up of new food processing
units, and also aid in expansion and up- gradation of the
existing units.
sugar
industry
Sugar industry plays a prominent role in bihar’s
economy. The north of the state is climatically well
suited for producing good quality of sugercane with
minimum inputs as compared to other states. 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 total production of sugar in Bihar Sugar
Industry was :-
4.21 lakh tons in 2002-2003
2.77 lakh tons in 2003-2004
2.47 lakh tons in 2004-2005
In 2002 an application was put before the hon’ble
patna high court for privatisation by bihar state
sugar corporation which has been withdrawn by
state government in 2007.
The initiative of the present government under the
regime of Mr Nitish Kumar :-
• There are over 40-sugar mills operational.
• The state government has also approved the
proposal for the setting up of 15 new sugar mills in
the state which will bring in an investment of Rs.
3,771 crore in Bihar Sugar Industry
Approximate
Name of Investor Details Investment
(US $ Million)
Gulshan Polyols Ltd. Maize Processing Unit 96.07
Hindustan Petroleum Corporation Ltd
Sugar Mill 71.69
Jay Shri Ram Annapurna Rice Mil
Private Limited Rice Mill 54.49
India Green Fuel Private Limited
Sugar Mill Distillery Plant 54.49
Ruchi Soya Industries Limited
Packaged Blended / Refined Oils
Textured Soya Protein Packaged 48.75
Grains
Maurya Sugar Private Limited Sugar Complex 38.72
Vaidyanath Sugar Mills Private Ltd
Sugar Mill 38.72
Durga Agro Energy Limited Rice Mill 31.55
Amrapali Foods Limited Food Park 28.68
Suman Agritech Private Limited
Vegetable Refined Oil 27.24
Approximate
Name of Investor Details Investment
(US $ Million)
ITC Ltd. Milk Processing Pant 22.94
Hindustan Coca-Cola Beverage Pvt
Soft Drinks
Non-alcoholic Beverages
Ltd 22.37
Fruit Juice / Fruit Based Drinks
Packaged Drinking Water
Jhunjhunwala Vanspati Limited
Edible Oil Plant 21.51
Era Agritech (I) Pvt. Ltd. Agro Business Centre 20.07
Esveegee Starch & Chemical Pvt Ltd
Maize Processing Unit 20.07
Ambo Agro Products Limited
Refined Edible Rice Oil Mill 18.64
Bihar Agro Projects Limited
Food Park 17.21
Britannia Industries Ltd. Bakery Products 12.33
Tiger Warehousing Cold Chain Pvt
Warehousing Cold Storage 11.47
Ltd.
Skimmed Milk Powder
Prashant Jalan & Associates Poly Pack Milk
7.17
Ice-cream
Curd manufacturing project
Jain Agro Distilleries Private Limited
Distillery Plant 6.74
silk industry
• Bhagalpur is known as silk city.
• Total number of weavers in Bihar
is more than 90,000.
• Gaya another major weaving
centre has around 8000 weavers.
• Infrastructure Leasing and
Financial Services is preparing
Project Report for Textile Parks and
also for Cluster Development
Programmers.
• Shuttle less and hi-tech
technology is also adopted..
To promote the silk sector
In order to promote sericulture activities in Bihar
under silk sector, Central Silk Board (CSB) has
implemented a Centrally Sponsored Scheme viz.
“Catalytic Development Programme” (CDP) during
the XI Plan period, in collaboration with the State
Sericulture Department.
Under this scheme:-
• Financial assistance is provided to the Government of
Bihar to assist stakeholders of silk industry.
• CDP is a unique and an effective tool for transfer of
technologies in the field evolved by the Research
Institutes.
• The components under CDP envisage development
and expansion of host plantation, development of
farms and post cocoon infrastructure, up-gradation of
reeling and processing technologies in silk, Enterprise
Development Programme, support for extension and
publicity etc.
.
These components of CDP have generated substantial employment
under silk sector. As per the requirement of the Bihar State for
sericulture activities and based on the proposals received by CSB, the
following are the details of year-wise Financial assistance provided by
CSB under the CDP during the XI Plan period to Bihar State:
Years
Amount(Rs. in lakhs)
2007-08 nil
2008-09 43.90
2009-10 171.32
2010-11 384.32
2011-12 357.76
Total 957.30
Coal industry
The division of Bihar in 2000, when the industrially
advanced and mineral-rich southern-half of the
state was carved out to form the separate state of
Jharkhand, had a strong impact on development in
the north mainly through a loss of revenue. The
new State of Bihar
produces 60% of
the output of the
Undivided Bihar.
But CM Nitish Kumar managed to get coal linkage for
Barauni Thermal power plant crucial for the power-
starved state.
Unmoved by Kumar's intense campaign for a coal
linkage, the coal ministry had turned down the demand
for assured supply of coal for the Barauni plant.
The ministry made a U-turn and agreed to the CM's
demand for coal supply for the 2x250mw project as a
special case for mitigating power shortage in the
backward state, after Kumar managed to secure PM's
intervention.
Barauni Thermal Power Plant is the only state sector
power project in Bihar that is expected to add 500mw
generation capacity
Brewery industry
Bihar is becoming a
brewery hub with the
significant domestic and
foreign firms establishing
manufacturing facilities in
the state due to the
availability of the cheap
labour and raw materials
along with the improved
law and order and
investment-friendly
government policies.
Initiatives by present government to
promote the brewery industry
Big investments are coming up in this sector as
domestic and foreign brewery companies are in the
process to establish new production units in the state.
Three major firms –
1. United Breweries,
2. Danish Brewery Company Carlsberg Group
3. Cobra Beer
are in the process to set up new units and will start
production this year.”
Vijay Mallya-promoted United Breweries (UB), which
has got a stronghold in the Indian beer market, is
establishing a new unit near Bihar capital Patna.
United Breweries is also establishing a production
unit to make litchi-flavoured wine. The firm has
leased litchi gardens and is establishing processing
units in Muzaffarpur district of Bihar.
Nearly 70% of litchis manufactured in India come
from Muzaffarpur and also the nearby districts. The
firm is mulling to manufacture litchi-flavoured wine
by mixing pulpy extracts of the fruit with various
types of spirits.
Bhojpuri cinema
• Rajinder prasad requestedproducer bishwanath
porasad to make a movie in bhojpuri
• He made “ganga maiya tohe piyari chahibho”
• Today the cinema ranks amoung top
entertainment industries in india
• Policies of the govt now don’t support the
industry as much
• Maharashtra though has acted as home to these
bhojpuri actors leaving the turnover with
Maharashtra.
sources
• www.biharprabha.com
• www.bihartimes.in
• www.bihardays.com
• Www.agroindustry-bihar.com

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Political factors affecting business environment of bihar

  • 1. Political factors affecting business environment of Bihar Gurparvesh kaur (17) infrastructure management
  • 3. Bihar is the 12th largest state of India in terms of its area and the 3rd largest in terms of population. Buddhism and Jainism were born in the state of Bihar. • Capital-patna • Chief Minister-Nitish kumar • Governor-Devanand Konwar • Area-94,163.00 sq. kms • No. of districts -38
  • 4. Facts and Figures Description 2011 2001 Approximate Population 10.38 Crore 8.30 Crore Actual Population 103,804,637 82,998,509 Male 54,185,347 43,243,795 Female 49,619,290 39,754,714 Population Growth 25.07% 28.43% Percantage of total Population 8.58% 8.07%
  • 5. Industries in bihar • Agro industry • sugar industry • Silk industry • Coal industry • Brewery industry
  • 6. Agro industry Bihar is the first largest producer of vegetables and second largest producer of fruits in the country. Production of maize, sugarcane, litchi,mango, vegetables, and aromatic rice is also carried out. Bihar is the largest producer of honey in the country. Bihar accounts for 65% of India's annual litchi production
  • 7. Initiatives undertaken by bihar government to develop agro indusrty • SCHEME FOR FOOD PARKS Objective:To create modern enabling infrastructure for food processing units in the state with farm to market linkages. • SCHEME FOR INTEGRATED DEVELOPMENT OF FOOD PROCESSING SECTOR Objective To address the infrastructure, technology, skills and marketing constraints being faced by Rice, Maize, Pulses, Honey, Fruits and Vegetables and other food processing units in the State by facilitating setting up of new food processing units, and also aid in expansion and up- gradation of the existing units.
  • 8. sugar industry Sugar industry plays a prominent role in bihar’s economy. The north of the state is climatically well suited for producing good quality of sugercane with minimum inputs as compared to other states. 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.
  • 9. The total production of sugar in Bihar Sugar Industry was :- 4.21 lakh tons in 2002-2003 2.77 lakh tons in 2003-2004 2.47 lakh tons in 2004-2005 In 2002 an application was put before the hon’ble patna high court for privatisation by bihar state sugar corporation which has been withdrawn by state government in 2007.
  • 10. The initiative of the present government under the regime of Mr Nitish Kumar :- • There are over 40-sugar mills operational. • The state government has also approved the proposal for the setting up of 15 new sugar mills in the state which will bring in an investment of Rs. 3,771 crore in Bihar Sugar Industry
  • 11. Approximate Name of Investor Details Investment (US $ Million) Gulshan Polyols Ltd. Maize Processing Unit 96.07 Hindustan Petroleum Corporation Ltd Sugar Mill 71.69 Jay Shri Ram Annapurna Rice Mil Private Limited Rice Mill 54.49 India Green Fuel Private Limited Sugar Mill Distillery Plant 54.49 Ruchi Soya Industries Limited Packaged Blended / Refined Oils Textured Soya Protein Packaged 48.75 Grains Maurya Sugar Private Limited Sugar Complex 38.72 Vaidyanath Sugar Mills Private Ltd Sugar Mill 38.72 Durga Agro Energy Limited Rice Mill 31.55 Amrapali Foods Limited Food Park 28.68 Suman Agritech Private Limited Vegetable Refined Oil 27.24
  • 12. Approximate Name of Investor Details Investment (US $ Million) ITC Ltd. Milk Processing Pant 22.94 Hindustan Coca-Cola Beverage Pvt Soft Drinks Non-alcoholic Beverages Ltd 22.37 Fruit Juice / Fruit Based Drinks Packaged Drinking Water Jhunjhunwala Vanspati Limited Edible Oil Plant 21.51 Era Agritech (I) Pvt. Ltd. Agro Business Centre 20.07 Esveegee Starch & Chemical Pvt Ltd Maize Processing Unit 20.07 Ambo Agro Products Limited Refined Edible Rice Oil Mill 18.64 Bihar Agro Projects Limited Food Park 17.21 Britannia Industries Ltd. Bakery Products 12.33 Tiger Warehousing Cold Chain Pvt Warehousing Cold Storage 11.47 Ltd. Skimmed Milk Powder Prashant Jalan & Associates Poly Pack Milk 7.17 Ice-cream Curd manufacturing project Jain Agro Distilleries Private Limited Distillery Plant 6.74
  • 13. silk industry • Bhagalpur is known as silk city. • Total number of weavers in Bihar is more than 90,000. • Gaya another major weaving centre has around 8000 weavers. • Infrastructure Leasing and Financial Services is preparing Project Report for Textile Parks and also for Cluster Development Programmers. • Shuttle less and hi-tech technology is also adopted..
  • 14. To promote the silk sector In order to promote sericulture activities in Bihar under silk sector, Central Silk Board (CSB) has implemented a Centrally Sponsored Scheme viz. “Catalytic Development Programme” (CDP) during the XI Plan period, in collaboration with the State Sericulture Department.
  • 15. Under this scheme:- • Financial assistance is provided to the Government of Bihar to assist stakeholders of silk industry. • CDP is a unique and an effective tool for transfer of technologies in the field evolved by the Research Institutes. • The components under CDP envisage development and expansion of host plantation, development of farms and post cocoon infrastructure, up-gradation of reeling and processing technologies in silk, Enterprise Development Programme, support for extension and publicity etc. .
  • 16. These components of CDP have generated substantial employment under silk sector. As per the requirement of the Bihar State for sericulture activities and based on the proposals received by CSB, the following are the details of year-wise Financial assistance provided by CSB under the CDP during the XI Plan period to Bihar State: Years Amount(Rs. in lakhs) 2007-08 nil 2008-09 43.90 2009-10 171.32 2010-11 384.32 2011-12 357.76 Total 957.30
  • 17. Coal industry The division of Bihar in 2000, when the industrially advanced and mineral-rich southern-half of the state was carved out to form the separate state of Jharkhand, had a strong impact on development in the north mainly through a loss of revenue. The new State of Bihar produces 60% of the output of the Undivided Bihar.
  • 18. But CM Nitish Kumar managed to get coal linkage for Barauni Thermal power plant crucial for the power- starved state. Unmoved by Kumar's intense campaign for a coal linkage, the coal ministry had turned down the demand for assured supply of coal for the Barauni plant. The ministry made a U-turn and agreed to the CM's demand for coal supply for the 2x250mw project as a special case for mitigating power shortage in the backward state, after Kumar managed to secure PM's intervention. Barauni Thermal Power Plant is the only state sector power project in Bihar that is expected to add 500mw generation capacity
  • 19. Brewery industry Bihar is becoming a brewery hub with the significant domestic and foreign firms establishing manufacturing facilities in the state due to the availability of the cheap labour and raw materials along with the improved law and order and investment-friendly government policies.
  • 20. Initiatives by present government to promote the brewery industry Big investments are coming up in this sector as domestic and foreign brewery companies are in the process to establish new production units in the state. Three major firms – 1. United Breweries, 2. Danish Brewery Company Carlsberg Group 3. Cobra Beer are in the process to set up new units and will start production this year.” Vijay Mallya-promoted United Breweries (UB), which has got a stronghold in the Indian beer market, is establishing a new unit near Bihar capital Patna.
  • 21. United Breweries is also establishing a production unit to make litchi-flavoured wine. The firm has leased litchi gardens and is establishing processing units in Muzaffarpur district of Bihar. Nearly 70% of litchis manufactured in India come from Muzaffarpur and also the nearby districts. The firm is mulling to manufacture litchi-flavoured wine by mixing pulpy extracts of the fruit with various types of spirits.
  • 22. Bhojpuri cinema • Rajinder prasad requestedproducer bishwanath porasad to make a movie in bhojpuri • He made “ganga maiya tohe piyari chahibho” • Today the cinema ranks amoung top entertainment industries in india • Policies of the govt now don’t support the industry as much • Maharashtra though has acted as home to these bhojpuri actors leaving the turnover with Maharashtra.
  • 23. sources • www.biharprabha.com • www.bihartimes.in • www.bihardays.com • Www.agroindustry-bihar.com