PRESENTATION ON 30.07.

07 AT MAURITIUS

India

has

states

like

Maharashtra,

Gujarat and Karnataka, which have grown as fast as Asia's tiger economies during the past 10 years. It also has Bihar, with a population size of Germany's and a living standard at par with Burundi's. While inequalities magnified inter-state competition intensified. seemed to have been

CHALLENGES
Development of Bihar has been a matter of concern since independence. Low Human Development Indices. Problem areas are:Stagnant Economic Growth Persistent Poverty Complex Social Stratification Very poor infrastructure

INVESTMENT
Public investment postulated to go up from Rs 21,000 cr in 10th Plan to over Rs 58,000 crores in 11th Plan Share of private investment in total investment postulated to go up from the present 59 % to 65 % - 10,08,000 cr. State intends to attract large share of private investment and FDI Strategy would be through Infrastructure Development as well as Investments in Social Services (Education, Health and Nutrition)

STRATEGY FOR 8.5% GROWTH

Utilisation of idle capital assets. Efficient use of existing potential. Direct investment Government. from Central

Initiatives in areas of strategic importance e.g., Infrastructure such as Road, Bridges, Power, Increased Agricultural Productivity, Water Management including Flood Control & Interlinking of Rivers. Policy Initiatives for increased Investment. Private

BIHAR INDUSTRY:A RELATIVE ANALYSIS

Study by CRISIL pointed out that420 370 320 270 220 170 120 70

Manufacturing growth Bihar / India

2004-05 1993-94

Sector

has

grown

at

1993-94

1994-95

1998-99

1999-00

1995-96

1996-97

1997-98

2001-02

2002-03

national avg. of 7.8%

Bihar
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Agriculture 35.07%

India
53.16%

Investment flow is bleak

Only 0.4% (Rs 7682 Cr) of proposed investments in India are planned in Bihar (Recent IEM Data)

Sector shares in economy Bihar / India 55.80%

27.28% 19.56% 9.14%

Industry Bihar India

2000-01

Services

2003-04

2004-05

0.38% in past 5 years Vs

STRENGTHENING OF INDUSTRY SECTOR

Value Addition Potential Food Processing Leather Drugs & Pharmaceuticals Textile Downstream petrochemicals engineering. Access to market. Out migration of skilled and un-skilled labours.

INVESTMENT CLIMATE
Major impediments to investment
Absence of long term policies, non implementation/ reversal of policy and approach of contract. Inflexibility of labour laws. Poor infrastructure Government has already initiated steps to remove impediments. They are:Creation of enabling environment, legislative action, administrative reforms. Improvement in public delivery system.

RECENT POLICY INITIATIVES

Bihar Single Window Clearance Act-2006 Bihar Infrastructure Development Enabling Act 2006. New Industrial Policy -2006 Price Preference Policy- 2006 New Policy Initiatives for Entertainment, Tea Processing and Sugar Sectors - 2006. Amendment of Sugarcane Act 1985 to provide for other products from sugarcane apart from sugar. Policy for establishing higher Institutions in Private Sector - 2006. Technical

BIHAR SINGLE WINDOW CLEARANCE ACT, 2006

Provides for speedy processing clearance and certificate. of

For promotion of all-round development of the State and the Industrial Development. Provides for environment investors friendly

Under the Act, Section 5 provides for State Investment Promotion Board as an Empowered Committee.

RECENT INITIATIVES
BIHAR FOUNDATION CONSTITUTED AND REGISTERED WITH CM BIHAR AS PATRON TO ACT AS A FORUM BETWEEN NRBs AND THE STATE TO FACILITATE DEVELOPMENT OF THE STATE WITH BIHARI DIASPORAS PARTICIPATION TO OPEN LOCAL CHAPTERS OUTSIDE AND WITHIN THE COUNTRY TO PROVIDE INPUTS AND SUGGESTIONS FOR DEVELOPMENT OF THE STATE

STATUS OF CLEARANCE GIVEN BY THE BOARD

1. Total proposals cleared 2. Investment involved 3. Direct employment possibilities in the proposals cleared 4. Proposals consist of Industrial Units Technical Institutions Others Total 89 Rs.36323.49 6 crore 85790

65 18 6 89

Out of the above:1- New Sugar Mills 2- Mega Projects 21 14

3- Expansion of existing Sugar Mills (7 + 2) 9 & addition of Ethanol Plant Proposals 4- Cement Plants 5- Power Projects 6- Jute Mill 7- Handloom Park 8- Textile Park 9- Tractor Projects 10- Mini Steel Plant 3 3 2 1 1 1 1

CEMENT PLANTS
3 proposals have been cleared. M/s Century Plywood Kahalgaon M/s Ambuja Cements Ltd. Pandarak Birla Corporation Ltd., Barh M/s Century Ply Wood has allotted land at Kahalgaon been

M/s Ambuja Cement has been arranged own land at Pandarak. M/s Birla Corporation Ltd. Would arrange own land at Barh.

POWER PROJECTS
Proposals received from 1. M/s Vikas Metals & Power Ltd. 2 X 250 MW (Begusarai) 2. M/s Century Plywood 2 X 250 MW (Kahalgaon) 3. M/s J.A.S. Infrastructure 1215 MW (Banka) The allotment of coal block is yet to be done by Govt. of India.

JUTE MILL
M/s Bengali Jute Twine Ltd is establishing unit in Begusarai at an estimated cost of Rs 8.00 crore. Land has already been allotted. Civil work has start. M/s Rameshwar Jute Mill is going to establish a jute mill in Kishanganj. Land is yet to be identified by the proposers.

TEXTILE PARK /HANDLOOM PARK

Handloom Park at an estimated cost of Rs. 25 cr. is being established at Bhagalpur, Biharsharif and 5 other places. Special Purpose Vehicle has been constituted at Bhagalpur for this purpose. Land has been identified. Textile Park at Kahalgaon, Bhagalpur at an est4imated cost of 120 cr. Is under implementation. Special Purpose Vehicle has been formed. Land has been identified.

HIGHER TECHNICAL INSTITUTIONS

18 proposals have been cleared, which include 3 Medical college cum Super Speciality Colleges, Hospital, Management Engineering Institutes. and

Communication

Institutes

Entrepreneurs Training Institute.

SMALL SCALE & TINY SECTOR

Total registered units in the year 200607 SSI units Tiny units Total Investment Total Employment 22 3419 Rs. 7243.07 (4697.31)* 16578 (15732)*

SUGAR MILLS
21 proposals were cleared, but only M/s P & M Infrastructure Pvt. Ltd. have laid the foundation at Guruwalia. Another mill at Saharsa by the same company will come up shortly. Rest have delayed the implementation on account of fall in sugar price.

M/s Suprabhatam Sugar Industries Pvt. Ltd. is sanctioning up a sugar mill at Patna, Naubatpur. Land has been identified and farmers are transferring the land voluntarily. Civil works likely to start from August.

PROJECTS UNDER FOOD PROCESSING

Total project cost Total period Rs.1,670 crore 5 years

IL&FS appointed as Project Management Agency. In the first phase, Integrated Food Zone, Rural Agri Business Centre/Primary Processing Centre, Air Cargo Complex, Quality Assurance Centre with R & D facilities and development of rice mills cluster will be taken up.

HANDLOOM PROJECTS
Total Project cost around Rs.68 crore Project duration 2 years IL&FS appointed as a Project

Management Agency.

HANDLOOM PROJECTS
Salient features of the project Textile Park Handloom Park Privatisation of 3 cooperative spinning mills and dyeing and processing plants. Up gradation of training institutions. Designing and product

ETHANOL PLANTS
4 Ethanol plants from Maize at Hajipur, Begusarai, Khagaria and Bhagalpur. 10 plants for Ethanol from Sugarcane juice at Araria, Katihar, Bhagalpur, Jamui, Munger, Nalanda Aurangabad, Rohtas and Buxor. The total investment is around 4.00 billion USD. The firms has signed up the non disclosure and other legal agreements.

Financial closure with Malaysian and other investors has been achieved. Mukherjee & Associates, Pune has been appointed as Engineering Consultant. ICAR would give consultancy for sugarcane cultivation. M/s Fleck from Austria is the coordinator for supply of Plant & Machinery from Europe Commitment charges to suppliers of plant & machinery already sent. The team would be positioned at the end of August and civil work likely to start in September.

INITIATIVES IN LEATHER SECTOR

Bihar is a major producer of good quality hides and skins. Bihar ranks 3rd in production of hides and skins in the country. Produces 2.64 million bovine hides per annum. Square shaped goat hide is world famous for its quality. Acute shortage of trained manpower in footwear industry.

INITIAVES IN LEATHER SECTOR

State Govt. approached Ministry of Commerce, Govt. of India for establishment of Footwear Design & Dev. Institute in Bihar. Report on potential of leather industry in Bihar has been prepared by CLRI. CLRI is also making project report for establishment of CETP at Muzaffarpur. A meeting is fixed on 21.07.2007 at Kanpur with leather industry Association.

REVIVAL OF THE CLOSED UNITS OF THE SUGAR CORPORATION LTD.

SBI Caps have submitted diagnostic study report. the

Only 8 out of 17 units are viable for revival. In other cases, sale of assets for other industrial purposes is to be suggested. Cabinet approval is being taken.

CEMENT PLANTS
There are three proposals cleared by the State Investment Promotion Board.
(i) M/s Century Plywood at Kahalgaon 1 M.T. (ii) M/s Ambuja Cements at Pandarak near Barh 1 M.T. (iii) M/s Birla Cement Plant at Barh 1 M.T.

Agreement for supply of fly ash on long term basis to the proposed cement units are yet to be signed by NTPC with the Investors.

PRIVATISATION OF THE BIHAR SUGAR CORPORATION

15 Sugar Mills and 2 Distilleries closed for more than 10 years. Diagnostic Study Report by SBI Capital Market has been submitted. Revival of 8 units for setting up sugar complex and disposal of the remaining for other industrial purposes are being taken up.

INVESTMENT SCOPE
MAURITIAN INVESTORS CAN FOCUS ON - SUGAR & ETHANOL - FOOD-PROCESSING SECTOR - HANDLOOM & TEXTILES - PHARMA - LEATHER - TOURISM PPP PROJECTS ON INFRASTRUCTURE

ROAD CONSTRUCTION DEPARTMENT

INFRASTRUCTURE - ROADS
The State has 3629 Kms of National Highways 3232 Kms of State Highways 7714 Kms of Major District Roads In three years the State will have Road Infrastructure which will rival the best in the country

INFRASTRUCTURE ROADS
National Highways 2123 Kms being 4- laned - 1608 Kms under NHDP, 245 Kms under Buddhist Circuit Project & 270 Kms on BOT basis (MAP)

INFRASTRUCTURE ROADS
State Highways All State Highways being 2-laned 2035 Km under RSVY & 927 Km with assistance from ADB. 162 Kms being 4-laned on BOT basis. Major District Roads: - 7714 Kms 4500 Kms taken up in 06-07 for widening and strengthening in various stages of completion. 2000 Kms being taken up this year.

INFRASTRUCTURE ROADS
Quantum Jump As against an average outlay of 40-50 Crores per year for roads under Plan outlay for 06-07 was 600 Crores. This financial year outlay is 922 Crores for roads alone. This does not include the allocation for State Highways under which the expected expenditure during this year is approx. 1000 Crores.

HEALTH

GOAL
To Raise the Infrastructure and

Services in Health Sector to Indian Public Health Standard

STRENGTHENING HEALTH INFRASTRUCTURE

Sl. No. 1 2 3 Name of the Health Facilities District Hospital Sub Divisional Hospital PHC to be converted in CHC APHC No. as per the IPHS 38 101 533 Existing No. to be created 11 79 533 Work Already taken up 11 20 201 331 per year for 3 years 751 1553 per year for 3 years Plan

25 22

1544

1236

308

HSC

16580

8815

7765

Healthcare Services in the District Hospitals

OPD Services Indoor Services, Emergency services General Medicine General Surgery O&G services Paediatrics & Neonatology Casualty Critical Care (ICU) Anesthesia Ophthalmology ENT Skin & VD/ RTI/STI Orthopaedics Radiology & Ultrasonography Radiotherapy Dental care Public Health Management Diagnostic and Para Clinical Services: Laboratory services Imaging services CT Scan services Sonography ECG EEG Echocardiogram Pathology Blood Bank Physiotherapy Dental Technology Drugs and Pharmacy Ancillary and Support Services: Medico-legal/postmortem Ambulance services Dietary services Laundry services Security services Waste management Counseling Services Warehousing/Central Store Maintenance and repair Electric & Water Supply AC &Heating Transport Communication Medical Social Work Nursing Services Sterilization Disinfection Horticulture Lift and vertical transport Refrigeration

Numbers

1000

1500

2000

2500

3000

3500

4000

500

0
Jan., 06 Feb., 06 March, 06 April, 06 May, 06 June, 06 July, 06 August, 06 Sep., 06 Oct., 06 Nov., 06 Dec., 06 Jan., 07 Feb., 07 March, 07 April, 07 May, 07 June, 07

39 653 1018 1101 1306 1547 2758 3063 2685 2454 2638 2565 2243 2224 2257 2120 2784 3508

No. of Patients Visited per Govt. Hospital per Month

Months

EDUCATION

RECENT MAJOR INITIATIVES

New teacher recruitment policy and rules: no contract or para-teachers over 1,20,000 school teachers appointed through Panchayati Raj Instituions (PRI) 15 000 New Schools: learning centers abolished and 15000 new schools established building const going on. Mukhyamantri Samgra Vidyalaya Vikash Karykram : Not add a classroom, make a school-Integrated development of school: provision of boundary walls, major renovations, kitchen shed etc, games including childrens

RECENT MAJOR INITIATIVES

Free uniform and bicycles: All girls of 6-8 to get free uniform and of class 9-10 bicyclesenhance girls participation and reduce gender gaps Mid-day Meals: State share for cooking meals increased from Rs. 0.64 to Rs. 1.00, being given to mothers committees and SHG under overall VSS supervision Teachers grievances and disengagement from non-teaching activities: A series of steps to enhance teachers morale and enhance teaching time

Establishment of new Institutions in HE: Chankya National Law University, BIT Extn. Campus established. New Institutions coming up: National level management institute on the IIM pattern, Aryabahtta Professional University, University of Nalanda

PANCHAYATI RAJ

ACHIEVEMENTS
Enactment of Bihar Panchayat Raj Act, 2006
Empowerment of women and other disadvantaged sections of the society through affirmative action. Promotion of participation of the general masses through a mandatory quorum system for Gram Sabha meetings. Ppromotion of accountability and supervision in the functioning of the PRIs through Social Audit and formation of Vigilance Committees. Grant of Public Servant status to enhance the accountability of the elected PRI representatives. Gram Katchhary Speedy, cheap and accessible, justice delivery system at door steps to function

Achievements..

Incident free General Panchyat Election,06 held by SEC Of the 2,53,260 elected representatives of PRIs, 1,30,031 are women. Successful conduct of election to DPCs by SEC 50% reservation for women and nomination of members of SC, ST & OBC (in case of non-representation) in DPCs Devolution and Decentralization Activity Mapping; 29 subjects, 20 line departments have been completed.

Achievements..

Framing of Rules A number of rules have been framed since the enactment of Bihar Panchayat Raj Act, 2006 for functioning of the PRIs. the smooth

Installation of E-governance, new Financial Management System and MIS To enable service delivery through CSC kiosks; creation of Panchayat Portal for easy transfer and access to data; creation of MIS & application of Plan plus for Planning A project based on PRIYASOFT for accounting has been submitted to GOI for approval. Simple, easy, transparent and equalising transfer system of funds Linkage of bank accounts of PRIs through core banking system.

ENERGY

POWER REFORMS
Negotiations on with NTPC to hand over distribution of Patna and Bhagalpur towns. NTPC to start due diligence soon. Revenue based franchise system already introduced in 158 feeders in rural and urban areas. Revenue increased upto 200% in many feeders. Improved resource mobilization. Revenue collection increased from Rs. 65 crores per month (2005-06) to Rs. 85 crores (2006-07). Rs. > 100 crores in last 3 months. Bring down AT&C by 3% p.a. in the next five years.

CAPACITY ADDITION IN GENERATION

Current installed capacity of 587 MW insufficient Expansion of Barauni and Kanti Thermal Power Stations by adding 500 MW each. Setting up of new power plant under joint venture with NTPC at Nabinagar (3x660 MW). New Hydro Power plant proposed at Dagmara(126MW) Shell company under joint venture with IL&FS to develop new sites at Katihar and Pirpainti (to be handed over through competitive bidding). Nuclear Power Corporation team visited Rajauli for setting up of a Nuclear Power Plant of 1000 MW. NPC to expedite the work Coal blocks/linkages needed for the new projects

Rural Works Department

Rural Works Department

Vision
To provide all weather rural road connectivity to all habitations by construction of remaining 33525 km of link routes and upgradation of 4227 km of through routes requiring about 15000 cr and maintenance of total constructed roads requiring 400 Crore per Year (on average basis for routine maintenance).

Achievement during 2006-07

Completed 1251.35 km under State Plan and 1256 km under PMGSY (including NEAs part)

Initiatives undertaken
Mukhya Mantri Gram Sadak Yojana for providing connectivity to 500-999 population. Strengthening of BRRDA . Dedicated PIUs for implementation of Bharat Nirman Yojana. Strengthening Mechanism of Quality Control

Updation of Core Network. Outsourcing of Process Management with