BIHAR

TOMB OF SHER SHAH SURI, SASARAM, BIHAR

March 2021
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Introduction 4

Economic Snapshot 9

Physical Infrastructure 15

Social Infrastructure 23

Industrial Infrastructure 26

Key Sectors 28

Key Procedures & Policies 35

Appendix 43

2
Executive summary

1 Fastest growing state 5 Third largest mobile

in India
• The Gross State Domestic Product
(GSDP) of Bihar increased at a CAGR
of 13.27% from 2016 to 2020 and is
projected to register a CAGR of 13.04%
between 2016 and 2021.
subscriber base
 With 84.22 million mobile subscribers in
January 2020, Bihar* accounted for the
5
third largest mobile subscriber base among
1 all the Indian states.

2 Fastest per capita 4 Strong agriculture

income growth
 Bihar has witnessed strong growth in
2 4 sector
• Bihar has high agricultural production
per capita net state domestic product. making it one of the strongest sectors
At current prices, per capita NSDP of of the state. About 80% of the state’s
the state grew at a CAGR of 13.41% (in
Rs.) between 2015 and 2021.
3 population is employed in agriculture,
which is much higher as compared to
India’s average. The state has
. developed as the number one state in
the eastern region in terms of
agricultural production.
3 Leader in the production of
fruits and vegetables
• Bihar is the fourth largest producer of vegetables
and the eighth largest producer of fruits in India.
.
Note: * - includes Jharkhand,
Source: Central Statistics Office, Ministry of Statistics and Programme Implementation, Ministry for Integrated Development of Horticulture, NSDP- Net State Domestic Product

3
INTRODUCTION

4
Bihar fact file

Patna
Capital 1,106 persons per sq km 120,590,000
Population density total population

94,163 sq.km.
geographical area
49,800,0000 54,300,000
female population male population

918
63.8% Sex ratio
literacy rate administrative districts: 38 (females per 1,000 males)
Key Insights

 Bihar is located in the eastern part of India. The state is surrounded by Nepal in the north, West Bengal in the east, Uttar Pradesh in the west and
Jharkhand in the south.
 The state has a number of rivers; the most important of which is the Ganges.
 Patna, Gaya, Bhagalpur, Muzaffarpur and Darbhanga are some of the key cities in Bihar.
 The most commonly spoken languages in the state are Hindi, English, Urdu, Bhojpuri, Maithili and Angika.
 The 4 agro-climatic seasons and fertile soil of Bihar support cultivation of a wide range of crops.

Source: Government of Bihar website, Census 2011

5
Advantage: Bihar

High Economic Growth with Policy incentives

flourishing industries
• The GSDP of Bihar increased at a CAGR of 13.27%
between 2015-16 and 2019-20.
• Food processing, dairy, sugar, manufacturing and
healthcare are some of the fast-growing industries in
the state. The state has planned initiatives for the
development of other sectors such as education and
tourism.
• As per the women empowerment policy, the state is
increasing its focus on women empowerment by ensuring
availability of resources (education and employment) for
women, which would in turn lead to increased contribution
from women in development of the economy.
• The total number of registered workers under the ESIS
was 2.02 lakh in 2017-18, and the number has increased
to 2.83 lakh in 2018-19, an increase of 40%.

Rich labour pool

• The state has a large base of
cost-effective industrial labour,
making it an ideal destination
for a wide range of industries.
• The state has institutes of
national importance such as
National Institute
Technology and Indian Institute
of Technology, which provide
skilled manpower to 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 ports
such as Kolkata and Haldia and
of to raw material sources and
mineral reserves from the
neighbouring states.

Source: Ministry of Statistics and Programme Implementation, News articles

6
Bihar in figures

Bihar Contribution to Indian Economy (2018-19) Physical Infrastructure in Bihar

GSDP GSDP as a percentage of all states’ GSDP Installed power capacity (MW) (as of February 2021)
India: 100.0 | Bihar: 3.76
India: 379,130.41 Bihar: 5,803.30
GSDP growth rate** (%) Wireless subscribers (million) (as of September 2020)
India: 10.0 | Bihar : 13.27
India: 1,148.58 | Bihar: 84.28

Per capita GSDP* (US$)

India: 1,977.60| Bihar : 725.93 Internet subscribers (million) (as of September 2020)
India: 776.455 | Bihar : 51.68

Social Indicators National highway length (km) (as of December 2020)

India: 1,36,440 | Bihar: 5,420.78
Literacy rate (%)
India: 77.7| Bihar : 70.9
Airport (No.)
Birth rate (per 1,000 population) (2018) India: 153 | Bihar : 5
India: 20| Bihar : 26.2

Industrial Infrastructure Investments (as of December 2020)

Cumulative FDI equity inflows (From October

PPP projects under construction (no)
India: 466| Bihar : 11 2019 to December 2020) (US$ million)
India: 75,351.56 | Bihar : 16.79
PPP projects operational and maintenance
stage (no.)
India: 901| Bihar : 10

Note: GSDP, per capita GSDP figures are taken at current prices, For source refer to Annexure

7
State vision

2 HEALTH 3 EDUCATION
 Build medical institutions, create awareness and bring about  Achieve zero dropout rate in secondary education.
technological advancements.  Increase spending on building schools and colleges
 Introduce radiology and pathology services in every district. with easy access and upgraded infrastructure.
 Government hospitals across 36 districts to be provided  Launch policy initiatives to ensure compulsory
with CT scan services. enrolments
 All Government hospitals likely to commence dialysis  Open vocational training institutes.
services.
1 TOURISM
 Knowledge and religious hubs
to be built and will attract
100,000 tourists per year by
4 GSDP GROWTH
2022.  Agriculture to play a significant
 Construct mega religious role with opportunities in food
theme parks (Buddhism and
Jainism). 2 3 processing and agro-based
industries.
 Eight centres for educational,  Use quality seeds and
cultural and religious tourism fertilisers and upgraded
planned. technology
 Planned roadmap for  Provide institutional credit and
improved connectivity; luxury crop insurance.
hotels to be constructed
through PPP mode. 1 4  Develop infrastructure with
focus on roads and energy
 Tourism service centres to be sector.
set up.

Source: Confederation of Indian Industry

8
ECONOMIC SNAPSHOT

9
Economic Snapshot – GSDP

GSDP of Bihar at current prices Bihar’s per capita GSDP at current prices

100.00 CAGR (In Rs.) 13.27% 8 800.00 60,000

CAGR (In Rs.) 11.17%
90.00

94.48
7 700.00

725.93
50,000

86.79
80.00

6.86

50,735
6
600.00

76.99

638.88
70.00

6.12

621.65
72.73

44,652
60.00 5 40,000

5.30

552.27
500.00
62.76

40,065
507.46
4.69

37,052
50.00 4
56.77

4.21

400.00 30,000

33,218
40.00
3.72

3
30.00 300.00
2 20,000
20.00
200.00
10.00 1
10,000
0.00 0 100.00
2015-16

2016-17

2017-18

2018-19

2019-20

2020-21BE
0.00 0

2015-16

2016-17

2017-18

2018-19

2019-20
US$ billion Rs. trillion US$ Rs.
 In 2019-20, Bihar’s GSDP at current prices was about Rs. 6.11
trillion (US$ 87.65 billion).
 The per capita GSDP of Bihar increased to Rs. 50,735 (US$
 The state’s GSDP expanded at a CAGR (in Rs.) of 13.27% between
725.93) in 2019-20.
2015-16 and 2019-20.
 The per capita GSDP of Bihar rose at a CAGR of 11.17% (in
 The GSDP for 2020-21 (at current prices) is projected to be Rs.
Rs.) between 2015-16 and 2019-20.
6,85,797 crore (US$ 94.48 billion), 12.09% higher than the revised
estimate for 2019-20.

Note: BE- Budget Estimate

Source: Central Statistics Office

10
Economic Snapshot – NSDP

Bihar’s NSDP at current prices Per capita NSDP of Bihar at current prices

90.00 CAGR (in Rs.) 13.41% 6 800.00 50,000

CAGR (In Rs.) 11.30%
80.00 45,000

5.63

46,664.15
700.00
5

79.83
70.00 40,000

667.68
40,981.99
4.87
600.00

70.66
66.89 35,000

36,849.78

586.38
60.00 4
4.31

571.76
34,044.90
500.00 30,000
3.87
57.67

507.45
50.00

30,403.87
51.96

464.46
3.40

3 400.00 25,000
40.00
300.00 20,000
30.00 2
15,000
20.00 200.00
10,000
1
10.00 100.00 5,000
0.00 0 0.00 0
2015-16

2016-17

2017-18

2018-19

2019-20

2015-16

2016-17

2017-18

2018-19

2019-20
US$ billion Rs. trillion US$ Rs.

 Bihar’s per capita NSDP stood at Rs. 46,664.15 (US$ 667.68)

 In 2019-20, Bihar’s NSDP was Rs. 5.63 trillion (US$ 80.51
in 2019-20.
billion).
 Robust growth across secondary and tertiary sectors boosted
 Average NSDP growth rate in the state was ~13.41% (in Rs.)
the average per capita NSDP of Bihar at a CAGR of ~11.30%
between 2015-16 and 2019-20.
(in Rs.) between 2015-16 and 2019-20.

Note: Conversion rate - As per slide 45

Source: Central Statistics Office

11
Economic snapshot – Percentage distribution of GSVA

 In 2019-20, the tertiary sector contributed 55.74% to Bihar’s Gross Visakhapatnam

Percentageport
distribution
traffic (million
of GSVAtonnes)
State Value Added (GSVA) at current prices, followed by the
secondary sector (22.13%) and primary sector (22.13%). 100%
29.64% CAGR 55.74%
90%
 The tertiary sector grew the fastest among the three sectors from
2011-12 to 2019-20 (28.93% CAGR). 80% 28.93%

70%
 The primary sector expanded at a CAGR of 10.40% between 2011- 29.64%
12 and 2019-20. 60%

50%
 The secondary sector expanded at a CAGR of 14.87% between
2011-12 and 2019-20. 40% 14.87% 22.13%
40.71%
30%
 The growth is led by various activities such as construction,
electricity supply, trade and repair services 20%
22.13%

10% 10.40%

0%
2011-12 2019-20

Primary Sector Secondary Sector Tertiary Sector

Source: Central Statistics Office

12
Economic snapshot – FDI inflow and investments

Investment intentions in terms of IEMs filed

FDI* Inflows in Bihar in April 2000 - March 2020 (US$ million)

Proposed
Year Number investments 6
(US$ million) 120 119

2016 19 898.99
100
10

2017 7 72.77 10
80

2018 9 1,122.25
60
2019 8 96.01
43
40
2020* 1 7.52 2 11
7
20
 According to the Department for Promotion of Industry and Internal
6
Trade (DPIIT), the cumulative FDI inflows in Bihar were valued at
24
US$ 16.79 million between October 2019 and December 2020. 0

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20
FY01-FY11

FY01-FY20
 In 2019, eight investments were filed in the state and the amount of
investments proposed was Rs. 671 crore (US$ 96.01 million).

 In January 2020, one investment worth Rs. 50 crore (US$ 7.52

million) was proposed in the state.

Note: * - Including Jharkhand, IEMs - Industrial Entrepreneur Memoranda, *- Till January 2020
Source: Department for Promotion of Industry and Internal Trade

13
Economic snapshot – Export

Export Trend (US$ million) Composition of Key Items Exported from Bihar (FY21)

1,800.00
1,640.33 1,661.13
1,600.00 28.97%

1,400.00 1,345.31 32.57%

1,160.72
1,200.00
1,034.66 2.77%
1,000.00
823.53
7.92%
800.00

600.00 546.31
12.11%
15.66%
400.00

200.00 Petroleum Products Buffalo Meat

Other Cereals Rice (other than Basmoti)
0.00
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21* Drug Formulations, Biologicals Others

 Total merchandise export from the state stood at US$ 1,661.13 million in 2020. In 2020-21 (until January 2021), exports stood at US$ 1,160.72
million.

 Major items exported from the state of Bihar were petroleum products, buffalo meat, other cereals and rice (other than basmoti).

Source: Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and Industry
Note: * Until January 2021

14
PHYSICAL INFRASTRUCTURE

15
Physical infrastructure – Roads

 Bihar has 5,412.37 km of national highways and 3,739.11 km of state Roads in Bihar
highways. The state also has 13,456.91 km of major district roads.

 As of September 2019, 52,194.11 km of road works have been Length (kms)

Type of road
(2019-20)
completed in Bihar under Pradhan Mantri Gram Sadak Yojana.

 Under BSHP - 2, construction of ROB (part of SH 83 - Baghi- National highways (as of

5,420.78
Barbigha Road) is expected to complete in January 2019. Total cost December 2020)
of the project was Rs. 32.74 crore (US$ 5.08 million).
State highways 3,739.11
 The public investments in rural roads by the State Government has
increased by more than five times from Rs. 1,874 crore (US$ 268.14
million) in 2012-13 to Rs. 10,476 crore (US$ 1.50 billion) in 2019-20. Major district roads 13,456.91

 Under State Budget 2020-21, Rs. 17,345 crore (US$ 2.46 billion) has
Total 22,608.39
been allocated for road and bridges construction.

 In December 2020, Union Minister for Road Transport and

Highways, Mr. Nitin Gadkari, inaugurated the three lane 1.5 km long
Koilwar bridge in Bihar, a major road for transport between Bihar and
UP. A sum of Rs. 266 crore (US$ 35.96 million) has been spent on
the bridge.

 In Bihar, road work worth Rs. 30000 crore (US$ 4.06 billion) is
undergoing. For compensation against land acquisitions, a total of
Rs. 4600 crore (US$ 621.81 million) has been announced.
 By 2023, a 7-km four lane Koshi bridge worth Rs. 1478 crore (US$
199.79 million) is likely to be constructed.
 In January 2021, the road construction department decided to build
bypass roads at 120 urban locations across the state, under the Saat
Nischay Part-2 programme, with the aim to ease traffic congestion.
 The total length of roads is 708 kilometres, with the cost
estimated at Rs. 4,154 crore (US$ 559.99 million).

Note: 2017, NH - National Highway, ROB - Road Over Bridges, BSHP - Bihar State Highway Project
Source: Economic and Highways, State Budget 2015-16, Road Construction Dept., Bihar Rajya Pul Nirman Nigam Ltd

16
Physical infrastructure – Railways

• The length of rail route in Bihar was 3714 kms. The share of rail route in Bihar was 5.5% of the total rail route. The density of rail route in
Bihar was 39.4 kms per 1000 sq. km of area.
• 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.
• Several link-lines, such as Muzaffarpur-Samastipur-Barauni-Katihar and Muzaffarpur-Chapra-Siwan, have been converted to broad gauge
from metre gauge.
• The Government of India has signed agreements with Alstom and General Electric for production of electric and diesel locomotives. Two
greenfield locomotive factories are in the process of being established in Bihar. One locomotive factory in already operational in
Madhepura while the other is being set up.
• In September 2020, the Prime Minister, Mr. Narendra Modi inaugurated the ‘Kosi Rail Mahasetu’ project and new rail lines and
electrification projects in Bihar. These projects include a new railway bridge on the Kiul river, two new railway lines, five electrification
projects, one electric locomotive shed at Barauni and a third line between Barh and Bakhtiyarpur.

Source: Economic Survey 2018-19

17
Physical infrastructure – Airports

Airport indicators in 2020-21 (April-November)

Parameter Patna Gaya

Aircraft movement (nos.) 11,449 472

Passenger traffic (nos.) 14,75,677 39,101

 Bihar has one domestic airport in Patna and one international airport
in Bodh Gaya. Several domestic airlines connect Patna to Delhi, Freight handled (MT) 7,224 0
Kolkata, Mumbai, Lucknow, Bengaluru, Hyderabad and Ranchi.

 The airport in Bodh Gaya is used for international connectivity with

Bangkok (Thailand), Colombo (Sri Lanka), Yangon (Myanmar),
Dhaka (Bangladesh), Paro (Bhutan) and Kuala Lumpur (Malaysia).

 In 2020-21, the total passenger traffic and freight handled at Patna

airport was 14,75,677 and 7,224 MT, respectively.

 On December 17, 2020, SpiceJet announced the launch of 30 new

domestic flights, including six new flights from Darbhanga, Bihar,
which stated its operations on a phased basis from December 20,
2020.

Source: Airport Authority of India

18
Physical infrastructure – Waterways

National Approximate
S. No State
Waterways length (km)As

UP, Bihar,
1 NW-1 1,620 Jharkhand and
West Bengal

2 NW-37 296 Bihar and UP

 The 1,620 km stretch of the river Ganges that flows between Allahabad in 3 NW-40 354 Bihar and UP
Uttar Pradesh and Haldia in West Bengal has been declared ‘National
Waterway 1’, and is being developed by the Inland Waterways Authority of 4 NW-54 86 UP and Bihar
India.

 Patna has a low-level fixed terminal on National Waterway-1 for handling 5 NW-58 236 Bihar
containers. The National Inland Navigation Institute has been set up in
Patna to train vessel crews. 6 NW-81 35 Bihar

 As per National Waterways Act, 2016, 111 waterways have been declared
7 NW-94 141 Bihar
as National Waterways (NWs) including the 5 existing NWs. The techno-
economic feasibility for the newly declared 106 NWs has been initiated.
Under this new scheme, 6 NWs have been planned in the state of Bihar.

 In January 2018, approval for implementation of the Jal Marg Vikas Project
(JMVP) was given under which plan for development of NW-1, ferry
services, ship repair facilities, roll-on roll-off (RO-RO) services, state-of-the-
art terminals at Kalughat and Gaighat will be developed in the state of
Bihar. The projects are likely to create direct and indirect employment for
more than 50,000 people in the state

Source: Bihar Report Card 2015, Press Information Bureau

19
Physical infrastructure – Power and Petroleum

Power Installed power capacity (MW)

 The BSEB is a vertically integrated agency and is responsible for
generation, transmission and distribution of electricity in Bihar 7,000.00
 As of February 2021, Bihar had a total installed power generation
capacity of 5,803.30 MW, of which 4,748.39 MW was contributed by 6,000.00
central utilities, 70.70 MW by state utilities and 984.21 MW by private

5,803.30
utilities.
5,000.00
 During the same period, of the total thermal power plant capacity,

4,566.47
coal-based plants accounted for the largest share with capacity

4,341.47
4,000.00
contribution of 5,338.39 MW.
 Hydropower plants accounted for a power generation capacity of 110

3,607.54
3,000.00
MW. Besides, 354.91 MW of installed power generation capacity

3,029.89
came from renewable sources.
2,000.00
 On September 27, 2020, a 660-MW unit of its supercritical thermal
power plant in Bihar was synchronised with the grid by NTPC Ltd.,
which would enable the commercial generation of electricity from it. 1,000.00
Five units with a capacity of 660 MW each, spread over 3,200 acres
of land at Barh in the Patna district, were set up by NTPC. 0.00

FY16

FY17

FY18

FY19

FY20
Petroleum
 To boost the state’s petroleum and gas sector, Bihar introduced 10 projects worth Rs. 21,000 crore (US$ 2.85 billion). Out of 10, three projects
were launched in September 2020 - for the Petroleum sector - in Bihar’s Durgapur-Banka section of the Paradip - Haldia-Durgapur pipeline
augmentation project and two LPG bottling plants. The other five initiatives were completed projects.

Note: BSEB - Bihar State Electricity Board, MW- Megawatt

Source: Central Electricity Authority

20
Physical Infrastructure – Telecom

 The Office of Controller of Communication Accounts (CCA) regulates Telecom Infrastructure* (as of September 2020)
and monitors the telecom department in the state.
Wireless subscribers
 According to Telecom Regulatory Authority of India (TRAI), Bihar* 84,281,959
had ~84.28 million wireless subscribers and 191,912 wireline
subscribers, as of September 2020. Wireline subscribers
191,912
 Tele-density in Bihar* stood at 52.60%, as of September 2020.

 By end of September 2020, 22.48 million subscribers had submitted Tele density (in%)
52.60
requests for mobile number portability in Bihar since its inception.

 In October 2020, Minister for Communications, Electronics &

Internet subscribers (million No.) 51.68
Information Technology, Mr. Ravi Shankar Prasad stated that
~46,000 villages in Bihar will be connected through optical fibre
network in next 6-7 months.
Performance status of Bharat Net Project
• He added that every village will have a Wi-Fi spot, which will offer
free services for a year. This free network will also be provided to
primary schools, Anganwadi centres and ASHA employees.

Service-ready GPs
8,817
(November 2020)

Note: * - includes Jharkhand,

Source: Telecom Regulatory Authority of India

21
Physical infrastructure – Urban development

Smart Cities in Bihar Urban Infrastructure in Bihar

Cities Population Area (sq km) Literacy rate Scheme Estimated cost US$ million

Bhagalpur 412,209 2,569 63.14% Solid Waste Management for

1.92
Danapur, Khagaul and Phulwari
Biharsharif 297,268 23.5 74.80% Khagaul Water Supply Scheme 2.18

Muzaffarpur 396,590 3,172 83.08% Danapur Water Supply Scheme 11.44

Patna 2,049,156 3202 83.37% Phulwarisharif Water Supply

4.09
Scheme
 Non metro markets like Patna and other tier II cities have grown rapidly
Patna Water Supply Scheme 70.83
in regard to consumption, thus becoming main target markets, posing a
huge potential of transforming themselves into new business centres in Solid Waste Management for
6.13
comparison with metro cities. Patna
 4 cities of Bihar namely, Bhagalpur, Bihar Sharif, Patna and Muzaffarpur Purchase of buses for Patna
6.62
are to be developed as smart cities. Apart from that 27 cities of Bihar Urban Transport
were selected for infrastructure development under AMRUT scheme. Bodhgaya Water Supply
5.56
 In September 2020, Prime Minister, Mr. Narendra Modi, inaugurated Scheme
various projects under 'Namami Gange' Yojana and 'AMRUT' Yojana Bodhgaya Sewerage Scheme 15.92
worth Rs. 541 crore (US$ 73.50 million). Four schemes included
sewerage treatment plants at Beur, Karam-Leechak in Patna city, Purchase of buses for Bodhgaya
1.12
Urban Transport
water-related projects in Siwan and Chhapra under the 'AMRUT'
Yojana.
 Munger water supply scheme under AMRUT Mission to help residents
get pure water through pipelines; foundation stone of Jamalpur water
supply scheme; and Muzaffarpur riverfront development scheme under
Namami Gange.
Source: Department of Urban Development and Housing, GOB, AMRUT - Atal Mission for Rejuvenation and Urban Transformation

22
SOCIAL INFRASTRUCTURE

23
Social infrastructure – Education

 The literacy rate of the state was recorded as 61.8%. Male literacy rate
in the state is 71.2% and female literacy rate is 51.5%.
Reputed technical institutes in Bihar
 The total number of students enrolled in primary and upper primary (up
to class VIII) schools rose to 21.6 million in 2014-15 from 17.7 million in  Indian Institute of Technology, Patna
2007-08. The enrolment of girls in the state is progressing, with the rate  National Institute of Technology, Patna
of re-enrolment of girls increasing at a faster rate than that of the boys.
However, the dropout rates have witnessed a decline over the past  National Institute of Fashion Technology, Patna
years.
Reputed medical institutes in Bihar
 The prestigious IIT was established in Patna in August 2008. The
institute offers B.Tech programmes in 3 disciplines: Computer Science  Indira Gandhi Institute of Medical Sciences, Patna
and Engineering, Electrical Engineering and Mechanical Engineering.  Jawaharlal Nehru Medical College, Bhagalpur
PhD programmes are offered in Engineering, Science and Humanities
and Social Sciences. The state Government is coming up with various  Patna Medical College, Patna
initiatives for increasing employment prospects in the state under the
Bihar Skill Development Mission. The scheme has been allotted a  On September 15, 2020, The Union Cabinet, chaired by the Prime
budget of US$ 2.9 million. Minister, Mr. Narendra Modi, approved establishment of a new All
India Institute of Medical Sciences (AIIMS) at Darbhanga, Bihar,
 Under State Budget 2020-21, the Government proposed to allocate Rs.
under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY).
35,191.05 crore (US$ 4.99 billion) towards education sector.
 The total cost of this project is estimated to be Rs. 1,264 crore
 Under the Mukhyamantri Balak-Balika Cycle Yojana, every student will
(US$ 171.72 million) and be completed within 48 months from the
get an amount for a cycle which has been increased from Rs. 2,500 to
date of approval by Government of India. This move aims at
Rs. 3,000 (US$ 35.77 to 42.92).
strengthening the states’ infrastructure related to healthcare,
 Under the Mukhyamantri Balika Poshak Yojana, will provide uniform for education; this will also boost employment in the state.
female students in class 9 to 12 which has been increased from Rs. Employment generation for ~3,000 persons in various faculty &
1,000 to Rs. 1,500 (US$ 14.30 to 21.46). non-faculty posts is estimated.

Source: Economic Survey of Bihar 2015-16, Medical Council of India, University Grants Commission, Bihar Government Budget 2019-20, IIT - Indian Institute of Technology

24
Social infrastructure – Health

 As of April 2020, the health centres under various categories had

reached 12,912 in the state, of which 2,111 are primary health Health indicators (As of September 2018)
centres and 10,554 are sub centres. There were 134 district
hospitals, 68 community health centres and 44 sub-district hospitals Average Number of outpatient visits per day 309
in the state. Birth rate 26.8
 Under the State Budget 2019-20, Central Government and State
Death rate 6.0
Government initiated the construction of 11 new medical colleges for
which Rs. 5,540 crore (US$ 792.67 million) has been approved. Infant mortality rate 38

 Till 2021, a total of 23 medical universities and 9 nursing colleges are

planned to be established in the state, under the Government and
Life expectancy at birth (years)
private sector. In order to improve the medical knowledge and
develop super speciality facilities in the state, the Government of
Bihar is working towards implementation of Bihar Health Service Male (2012-16) 68.9
Investment Incentive Policy. Female (2012-16) 68.5

Government initiatives in the health sector

Health infrastructure (April 2020)
 Increase in sanctioned manpower in departments such as
medical, public health and family welfare.
District hospitals 134
 Higher level of personnel appointments and training.
Community Health Centres 68
 Involving private sector in support services related to cleaning,
pathology and radiology. Sub district hospitals 45
 Free drug distribution and indoor treatment Primary health centres 2,111

Sub centres 10,554

Source: Sample Registration System (SRS) Bulletin, State Budget 2019-20,

25
INDUSTRIAL INFRASTRUCTURE

26
Industrial Infrastructure

Centres Industries
Major agricultural centre of trade, exporting grain,
sugarcane, sesame and medium-grained rice; has
Patna
also emerged as a manufacturing hub in Bihar, with
the highest number of industrial units.
Has the 2nd highest number of industrial units in the
Tirhut state; food/beverage processing and manufacturing
units located here.
Important trade centre for cloth; famous for exporting
Muzaffarpur
fruits, particularly mango and litchi.
Has major industrial units including those of Indian
Oil Corporation; capacity of the existing thermal
Barauni
power station has undergone major renovation and
modernisation.
Famous globally for tussar silk; trading of agricultural
produce and cloth is an important economic activity;
Bhagalpur
other major industries include rice, sugar milling and
wool weaving.
Gaya Major weaving centre; important tourist hub.

The central Government of India approved the formation of an AKICDC (Amritsar-Kolkata Industrial Corridor Development Corporation),
development work of which started in 2014. The BIADA is responsible for promoting and assisting rapid development of industries in the
industrial areas and estates.
Operations of BIADA are divided into 4 regions - Patna, Muzaffarpur, Darbhanga, Bhagalpur - to facilitate quick services to entrepreneurs. The
total developed land by BIADA is of 5,184 acres; of which industrial units have been allotted 3,438 acres (66%). BIADA of Patna had attained the
maximum share of 3,144.82 acres.

Source: Economic Survey of Bihar, 2015-16 BIADA - Bihar Industrial Area Development Authority, Labour Bureau Government of India

27
KEY SECTORS

28
Key sectors – Agriculture and Allied sectors…(1/2)

 Bihar is one of the largest producers of vegetables and fruits in the Area and production of horticulture crops (2019-20)
country, making it a suitable place for setting up units in the food
processing sector. The state is one of the leading producers of fruits
such as banana, mango, guava, litchi and vegetables such as onion,
Area Production
Year
tomato, potato and eggplant in the country. (‘000 Ha) (‘000 MT)
 The Food Park scheme in Bihar has been declared to be the most
Fruits 324.58 4,256.21
admired scheme by the Ministry of Food Processing Industry in the
history of food processing in India.
Vegetables 821.50 16,327.53
 According to State Budget 2019-20, Rs. 1,430 crore (US$ 204.60
million) has been allocated for farmers in drought-prone regions as Spices 9.15 13.83
agriculture input subsidy also allocated Rs. 1,692 crore (US$ 242.09
million) towards the recently announced Mukhyamantri Harit Krishi Plantation 12.14 54.07
Sanyantra Yojana.
Aromatics &
7.74 2.50
 In 2019-20, the total production of horticulture crops in the state was Medicinal
expected to be 20,676.37 thousand metric tonnes and area under Honey - 14.80
production was 1,175.98 thousand hectares. In 2019-20, the total
production of vegetables and fruits in the state was estimated at
16,327.53 thousand metric tonnes and 4,256.21 thousand metric
tonnes, respectively.
Leading districts of crop production

Rice Rohtas, Aurangabad, West Champaran, Gaya

Maize Madhepura, Khagaria, Saharsa, Katihar, Bhagalpur
Wheat Rohtas, East Champaran, Muzaffarpur, Siwan
Note: ^ - As per 3rd Advance Estimates
Pulses Patna, Aurangabad, Bhojpur
Source: Economic Survey of Bihar, 2017-18, Horticulture Database 2018-19, National
Horticulture Board, Department of Agriculture Co-operation and Farmers Welfare

29
Key sectors – Agriculture and Allied sectors…(2/2)

COMPFED is an organised milk processing cooperative which collects milk

through district level cooperative unions, and processes and markets the same.
It 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.
Bihar State
Around 11,000 women have been already trained under its training management Cooperative Milk
program Producer’s Federation
In April 2018, the State Government of Bihar inaugurated six plants of Bihar State (COMPFED)
Milk Cooperative Federation.

Usher Agro Limited is one of the largest basic food grain (rice and wheat) processing
companies in India. The company established its rice processing mill in Buxar, Bihar Usher Agro Ltd
in 2003.
The company's product list consists of rice, bran, wheat and husk which are sold
under the brand name of ‘Rasoi Raja’.

30
Key sectors – Sugar ... (1/2)

 Sugar, the largest agro-based industry in the state, plays a prominent Sugarcane prices (US$/quintals) - as of 2019-18P
role in Bihar’s economy. The northern part of the state is climatically
well suited for producing good quality sugarcane with minimum inputs
Super variety 4.81
as compared to other states.

 In order to promote the sugarcane industry, the state Government General variety 4.50
grants various rebates and concessions, some of which include - VAT
reduction on denatured spirit and ethanol from 12.5 to 4.0% and Low variety 4.11
eradication of literage fees on liquor and ethanol.

 During sugar season 2019-20, 11 sugar mills were operating in the

state of Bihar. During 2019-20, 220.50 lakh MT sugar is estimated to
be produced in Bihar.

Note: P - Provisional
Source: Economic Survey of Bihar, 2016-17, Bihar Report Card, 2015 Sugarcane Industries Department, Government of Bihar

31
Key sectors – Sugar ... (2/2)

 K K Birla Group’s sugar company, Upper Ganges Sugar and Industries Limited (UGSIL), has two units in Bihar:
Bharat Sugar Mills at Sidhwalia [crushing capacity of 5,000 tonnes per day (TPD)] and Hasanpur Sugar Mills at
Hasanpur (crushing capacity of 3,000 TPD).
K. K. Birla Group  The Sidhwalia unit has an 18 MW cogeneration power plant.

 The company belongs to the Dhanuka Group and was incorporated in 1980.

 It manufactures ethyl alcohol, molasses and sugar at Sitamarhi. The plant has a crushing capacity of 5,000 tonnes
per day.
Riga Sugar Co Ltd

 The company was incorporated in 1964.

 It manufactures molasses and sugar at Purba Champaran, in Bihar.

Eastern Sugar and
 The plant has a crushing capacity of 2,500 tonnes per day.
Industries Ltd

 The company is promoted by the Bajoria family and was incorporated in 1932.

Vishnu Sugar Mills Ltd  It manufactures molasses and sugar at Gopalganj in Bihar.

32
Key sectors – Tourism … (1/2)

 The state has a rich cultural heritage as it is associated with Arrival of foreign tourists in Bihar (in million)
pilgrimages and historical monuments related to religious gurus such
as the Buddha, Mahavir and Guru Gobind Singh. Tourism in the state 1.10
revolves around Buddhism (Bodhgaya, Rajgir, Nalanda), Jainism

1.09
(Bisram, Mandar hill, Champanagar) and Sufism.

1.09
1.08

1.08
 The state Government has established the Bihar State Tourism
Development Corporation with the prime objective of developing 1.06
hotels, transports, railways, swimming pools, health tourism, etc. and
running them on a commercial basis for the benefit of tourists. 1.04
 The Government has planned two mega religious tourism circuits
(Buddhism and Jainism), two mega theme parks based on the life of 1.02
Buddha and Mahavir (to be constructed at Bodh Gaya and Rajgir)

1.01
and eight mega centres for educational, cultural and religious tourism 1.00
[Bodh Gaya, Rajgir, Patna city, Vaishali, Nalanda, Vikramasila, Ashok
Dham, Yoga Sansthan (Munger)].
0.98
 In 2019, foreign tourist arrival reached 1.093 million and domestic
tourist stood at 33.99 million. 0.96

2016

2017

2018

2019
Note: P - Provisional, *- till September 2019
Source: Ministry of Tourism, Government of Bihar

33
Key sectors – Tourism … (2/2)
Goals and actions set up by the Bihar State Council under the Bihar@2022 vision document for improving the tourism sector are as follows:
Goals to achieve by 2022
 Construction of 2 mega religious tourism circuits of Buddhism and
Jainism
 Construction of 2 mega theme parks based on the lives of Buddha
and Mahavir at Rajgir and Bodh Gaya
 Construction of 8 mega centres for religious, educational and
cultural education at Bodh Gaya, Patna, Rajgir, Vaishali, Ashok
Dham, Nalanda, Vikramasila, Yoga Sansthana and Munger
 By 2022, the state is targeting 100 lakh Indian and foreign tourists
every year
Source: Ministry of Tourism, Government of Bihar
34
Action points
 Establishment of schools within a 1 km radius of every habitation in
order to increase access to schools irrespective of the capacity to
pay.
 Fast track upgradation of the infrastructure of state schools and
ensuring availability of sufficient teachers
 Policy initiatives and awareness campaigns in order to ensure
higher enrolment and zero dropout
 Establishment of centres of excellence in all primary schools in rural
areas.
 Improvement of hygiene in schools and colleges
KEY PROCEDURES AND POLICIES

35
Single-window approval mechanism

 Bihar Single Window Clearance Act, 2006 and the Bihar Industrial Incentive Policy, 2011, promote industrial growth by giving rapid clearances,
issuing licenses and certificates and providing an overall investor-friendly environment in the state.

 The industries department of the state and the DIC act as nodal agencies for investments.

 Proposals for investments greater than US$ 21.7 million are routed through the Chief Minister and the cabinet for approval.

 The state has an online Common Application Form (CAF) and single window clearance system in place, which guarantee 30 days clearance to all
investment proposals submitted to the State Promotion Board is guaranteed by Bihar Industrial Investment Promotion Act, 2016.

Investment handled Body Chairman Nodal agency

US$ 2.17 million to State-Level Investment Promotion Industries Development Industries Development
US$ 21.7 million Board Commissioner (Udyog Mitra)

Below US$ 2.17 million District-Level Committee District Collector DIC

DIC - District Industries Centre

36
Contact list … (1/2)

Agency Contact information

Vikas Bhawan
Bailey Road,
Industries Department, Government of Bihar Patna - 800 001, Bihar.
Phone: 91-612-2215 211
Fax: 91-612-2217 991
Website: http://industries.bih.nic.in

District Industries Centre, Patna

District Industry Centre (DIC) Phone - 0612-2270865
Fax: 0612-2218900

1st Floor, Udyog Bhawan,

East Gandhi Maidan,
Patna - 800 004, Bihar
Bihar Industrial Area Development Authority Phone: 91-612-2675 991, 2675 002, 2675
(BIADA) 352
Fax: 91-612-2675 889
E-mail: biada@rediffmail.com
Website: http:///www.biadabihar.in

37
Contact list … (2/2)

Agency Contact information

Fraser Road,
Patna - 800 001, Bihar
- Bihar State Finance Corporation Phone: 91-612-2332 785
E-mail: bsfcpatna@gmail.com
Website: http://bsfc.bih.nic.in

Bihar State Electricity Board (BSEB)
Bihar State Pollution Control Board
Vidyut Bhawan,
Bailey Road,
Patna - 800 001, Bihar.
Phone: 91-0612-2504 036
Fax: 91-0612-2504 968
Website: http://www.bspcb.bih.nic.in/
Beltron Bhawan, Shastri Nagar
Jawahar Lal Nehru Marg,
Patna - 800 023, Bihar
Phone: 91-0612-2281 250
Fax: 91-0612-2281 050
Email: bspsb@vsnl.net
Website: http://bspcb.bih.nic.in

38
Key approvals required
Approvals and clearances required
Incorporation of the company
Registration, Industrial Entrepreneurs
Memorandum (IEM), Industrial Licenses
Allotment of land
Permission for land use
Registration under Factories Act and
Boilers Act
Site environmental approval, no
objection certificate and consent under
Water and Pollution Control Acts
Approval of construction activity and
building plan
Sanction of power
Sanction of water
Fire service clearance
Registration under state’s Sales Tax Act,
and Central and State Excise Act
NA: Not Available
39
Departments to be consulted Estimated time taken (days)
Registrar of Companies NA
Nodal Agency (Industries
Department) NA
Bihar Industrial Area Development Seven to 21 days (up to 90 days for
Authority acquisition of non-industrial land)
Revenue and Land Reforms 30 days (45 days for conversion
Department, Government of Bihar of non-industrial land for use)
Offices of Inspector of Factories,
Up to 120 days
Inspector of Boilers
Bihar State Pollution Control Board
and Ministry of Environment and
60 days
Forests, Government of Bihar
Urban Development and Housing
Department, Government of Bihar Seven days
Bihar State Electricity Board Up to 30 days
Water Resources Department,
Up to 30 days
Government of Bihar
State Fire Service Headquarters,
Up to 15 days
Government of Bihar
Sales Tax Department, Central and
Seven days
State Excise Departments
Cost of doing business in Bihar

Cost parameter Cost estimate Source

US$ 1,715,111 in Patliputra,

Industrial land (per acre), as of January 2017 Bihar Industrial Area Development Authority
US$ 252,222 in Muzaffarpur

Ministry of Labour and Employment,

Labour (minimum wages per day) US$ 2.3 to US$ 5.7
Government of India

Office space rent

US 50 cents to US$ 1.2 Industry sources
(per sq ft per month)

Residential rent
US$ 175 to US$ 350 Industry sources
(2,000 sq ft per month)

Five-star hotel room (per night) US$ 100-200 Leading hotels in the state

Industrial: US 10.3 cents to US 11.1 cents

Commercial and industrial electricity (per kwh) Bihar State Electricity Board
Commercial: US 9.8 cents to US 11.2 cents

40
State acts, policies and incentives … (1/2)

1
Bihar Agriculture Investment Policy 2020
• To encourage investments in the agriculture sector.
• To attract investments for agro-based industries in the state. Read more

Bihar Wood-based Industries Investment Promotion Policy, 2020

• To promote investments in wood-based industries in Bihar through financial

2
assistance.
• To upgrade technology, reduce wastage, enable value-added storage and promote
exports to boost development in the industry.
• To provide financial assistance to industries.
• To upgrade the skill levels of artisans by equipping them with modern and efficient
tools. Read more

3
Amendment 2020 in Bihar Industrial Investment Promotion Policy-2016
Any unit investing >Rs. 25 lakhs OR providing employment to 25 workers/persons will be
eligible to apply under this policy. Read more

4
Special Land Allotment and Amnesty Policy, 2020
To attract industrial plots in relation to availability of land at attractive prices and easier
terms. Read more

5
Saat Nishchay Part-2
In December 2020, the Bihar government approved a proposal to provide free
coronavirus vaccines to all citizens in the state. Read more

41
State acts, policies and incentives … (2/2)

Investment subsidies for NRIs

6
• The state Government has offered incentive packages in the form of various tax concessions,
capital and interest subsidies, reduced power tariffs, etc. to attract foreign funds in the region.

Incentives for NRIs

• Bihar Foundation organized a two-day global meet of Non-Resident Bihari's on 18-19 February 2012

7
with an aim to attract NRBs from across the world so that they can share their views on the state and
its development. NRIs from Bihar who have been successful in their respective fields were invited to
the event to share their experiences.

Availability of finance for NRIs

8 • The Government is taking steps to provide adequate facilities to enable NRIs to start small
scale industries in the state.

Incentives for new investments in plant and machinery

• Companies investing US$ 18.7 million or more in plant and machinery during the period from 1 April

9 2013 to 31 March 2015 would be entitled to deduct an investment allowance of 15% of the investment.
• Incentives to semiconductor wafer fabrication manufacturing facilities including zero customs duty for
plant and machinery

Incentives for waste to energy projects

• The Government would provide low interest-bearing fund from the National Clean Energy Fund

10 to IREDA to lend to viable renewable energy projects. ‘Generation-based incentive’ has been
reintroduced for wind energy projects and a sum of US$ 150 million has been allocated for this
purpose.

42
APPENDIX

43
Sources

Data Sources

GSDP (state) Directorate of Economics and Statistics of Bihar, Central Statistics Office

Per capita GSDP figures Directorate of Economics and Statistics of Bihar, Central Statistics Office

GSDP (India) Directorate of Economics and Statistics of Bihar, Central Statistics Office

Installed power capacity (MW) Central Electricity Authority

Wireless subscribers (No) Telecom Regulatory Authority of India

Internet subscribers (Mn) Telecom Regulatory Authority of India

National highway length (km) NHAI and Roads and Building Department

Airports (No) Airports Authority of India

Literacy rate (%) Census 2011

Birth rate (per 1,000 population) SRS Bulletin

Cumulative FDI equity inflows (US$ billion) Department for Promotion of Industry and Internal Trade

Operational PPP projects (No) DEA, Ministry of Finance, Government of India

PPP projects under construction (no) DEA, Ministry of Finance, Government of India

44
Exchange Rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33

2006-07 45.29 2007 41.29

2007-08 40.24 2008 43.42

2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95 2012 53.49
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2019-20 70.49 2020 74.18
2020-21 72.59 2021* 73.69
Note: As of February 2021
Source: Reserve Bank of India, Average for the year

45
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46