118th Jan. 2008

Dr. Y.V. Reddy

2

Uttar PradeshUttar PradeshUttar PradeshUttar PradeshUttar PradeshUttar PradeshUttar PradeshUttar Pradesh

East

Champaran Sitamarhi

Madhubani

Supaul Araria

Darbhanga Saharsa

Samastipur

Madhepura

Purnia

Kishang

anj

Katihar

BhagalpurMunger

KhagariaBegusarai

Banka

Jamui

Nawada

Gaya

Aurangabad

PatnaBhojpurBuxar

Bhabhua

RohtasJahanabad

NalandaSheikhpura

LakhisaraiVaishali

Saran

MuzaffarpurSiwan

Gopalganj

West

Champaran

JharkhandJharkhandJharkhandJharkhandJharkhandJharkhandJharkhandJharkhand

West BengalWest BengalWest BengalWest BengalWest BengalWest BengalWest BengalWest Bengal

NepalNepalNepalNepalNepalNepalNepalNepal

3

Total Area 94,163 Sq.Km.

� Administrative Units

� Divisions 9

� Districts 38

� Sub Divisions 101

� Blocks 535

� Panchayats 8,471

� Population 8.29

(as per 2001 census) crore

Male 4.32 crore

Female 3.97 crore

BASIC DATA

4

Literacy Rate

Total 47.53

Male 60.32

Female 33.57

� Total Number of Registered SSI Units

under Factories Act

Sec. 2(m)(i) or m(ii) 2474

Under Section 85(i) or 85(ii) 2620

� Total Number of un registered Units 4,63,741

� Number of Large & Medium Industries 266

BASIC DATA

5

BIHAR'S DEVELOPMENTAL

CHALLENGES

� 3rd most populated state accounting for 1/7 of

India's population below poverty line.

� In human development indices and also in many

sectors, the State lags seriously behind the

National trends a contributing factor to the

growing income gap across States.

� Very poor infrastructure.

6

FOCUS FOR DEVELOPMENT OF

BIHAR

� Former President Dr. Kalam suggested 10

missions to make Bihar economically

prosperous.

� Strategy to increase the per capita income from

the existing Rs.6,700 (05-06) to Rs.35,000 by

2010.

� To create an investment friendly climate leading

to employment avenues.

� Goal of 100% literacy and employment by the

year 2015.

� Present human development index ranking of

Bihar is 15 which should be improved.

7

STRATEGY / KEY CHALLENGES

IMPROVING

� Infrastructure

� Human Capital Formation

� General Public Services

� Upgrading Quality of Educational Outcome

through institutional reforms.

� Reform Initiatives

8

IMPRESSIVE GAINS

� Female literacy rate.

� Control in the infant mortality rate.

� Access to improved water resource.

� Increase in rural income.

� Reduction in poverty level.

� Improved quality of public spending.

� More resources to local bodies

9

“RECENT REFORMS GIVE A RAY OF

HOPE TO BIHAR”� “A slew of fiscal & legislative reforms

implemented.”

� Silent transformation is taking place.

� First state to abolish Agriculture Product Marketing Control Act.

� Urban Land Ceiling Act repealed.

� Model Municipal Act adopted, 2007.

� Bihar Apartment Ownership Act, 2006 adopted.

� FRBM Act, 2006 enacted.

� Implementing Comprehensive Flood Management Information System to support flood control and management through early warning & emergency response system.

(Source : The World Bank in India, Sept.07)

10

� Estimated expenditure for the two year period

ending March 2008 - Rs. 23,277 crore as against

Rs.20,614 crore in the last 10 years.

� Fiscal deficit is only 2.3% of the GSDP.

� No overdraft and no loan taken from market.

� For two successive years, full budget passed

before March, 31st.

“Recent Reforms Give a Ray of Hope to Bihar”

11

“Recent reforms Give a Ray of Hope to Bihar”

� For the year 2007 - 08, developmental

expenditure target of Rs. 10,200 crore is nearly

thrice the amount for the year 2004-05

� Proposed expenditure for the current year for

the road sector is R. 3,532 i.e. more than 46% of

the amount for the last year.

� Increased expenditure for the Education Sector

� Substantial hike up in the expenditure for the

Health sector (R. 1,127 Crore from Rs. 760 Crore

for the year 2005-06)

12

DEVELOPMENT BASED GOVERNANCE

� Initiatives to remove the ‘Inequality Traps’.

� Reservation for women.

� Establishment of ‘Gram Kachhari’& appointment

of ‘Nyay Mitra’.

� Constitution of Maha Dalit Commission &

Commission for Extremely Backward Classes.

� Schemes for Mushahar Development.

� Constitution of Land Reforms Commission.

� Access to Infrastructure, Electricity, Water to

the disadvantaged groups.

� Empowerment of Women.

13

� Concrete action to stimulate private

investment–

� Single Window Clearance Act, 2006

� Creation of State Investment Promotion

Board.

� Passing of Infrastructure Development

(Enabling) Act, 2006.

� FRBM Act, 2006 enacted.

� The Bihar Sugarcane (Regulation of

supply & Purchase) Act, 1981amended is

awaiting presidential ascent.

� Industrial Promotion Policy, 2006.

RECENT INITIATIVES

14

� Policy for setting up Higher Technical

Institutions.

� Initiatives in PSU reforms.

� Provision for 50% reservation for women.

� Abolition of Agriculture Produce Market Act,

2006.

� 20 other important legislation enacted during

2006-07

Recent Initiatives

15

INITIATIVES FOR BUDHIST CIRCUIT

� The four-laning of following corridors have been proposed

through the Ministry of Tourism to the JBIC :

� Patna – Jehanabad – Gaya – Bodh Gaya – Dobhi (125 Km)

� Bakhtiarpur -Biharsharif–Nalanda–Rajgir–Gaya (128 Kms)

� Hajipur – Vaishali – Kesharia – Khajuria (113 Km)

� Approx. Cost Rs. 2053.71 Crores

� Preliminary Project Report has been sent to JBIC.

� Patna – Jehanabad – Gaya – Bodh Gaya – Dobhi (NH-83) has

also now been included for four-laning under NHDP-III by

MOSRT&H.

16

Four-Laning Projects

Buddhist

Circuit

Kesharia

NHDP-I – nearing completion

NHDP-II – East – West Corridor – in progress

NHDP-III – One corridor tendered – other DPRs under finalisation

Buddhist Circuit – Posed to JBIC – PPRs submitted

17

� Birthplace of two religions – Buddhism &

Jainism and of the 10th Guru of the Sikhs

� Vision for exploiting the comparative advantage

� Provide world class connectivity – air

connectivity, expressways

� Construction of 5 Star Hotels, Golf Courses, Yoga

and Meditation Centres at Gaya, Bodh Gaya,

Rajgir, Pawapuri & Vaishali – market these as

centres for peace and rejuvenation

� International University at Nalanda

TOURISM

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First Steps ….

� Development of Airport of international standard -

International airport at Gaya -flights from Thailand

etc – land for extension being made available.

� International Golf Course (18 Holes) – designed by

PGA - Land acquired at Bodh Gaya

� Further Steps…

� Development of Natural Hot Springs at Rajgir

� International Conventional Centre at Nalanda /

Rajgir

� Consultant from WTO visiting to draw strategic plan

TOURISM

19

AREAS OF CONCERN� Low Credit Deposit Ratio.

� Low branch coverage.

� C.D. Ratio.

� Poor Credit Plan Achievement for 2007-08.

� Low credit plan achievement in Agriculture, Industry, SSI

Sector and other priority sectors.

� Coverage under education loan scheme still to pick up

despite the direction of Hon’ble Finance Minister, Govt.

of India.

� Poor achievement in flood affected areas despite the RBI

circular.

� Lack of response for rehabilitation of sick and closed

industries.

20

POOR CREDIT PLAN ACHIEVEMENT

FOR 2006-07� Upto September, the achievement is only 27.40% of

the total credit plan.

25.901263.694879.672007-08

(Up to Sept. 07)

80.202985.403722.372006-07

80.592174.032697.482005-06

86.772030.112339.562004-05

83.541587.621900.342003-04

46.85860.171836.092002-03

35.52619.921745.462001-02

%ageAchievementTargetYear

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LOW BRANCH COVERAGE

� Bihar has one bank branch for a average

population of 20,500 as against National average

of 15,000, 9,000 in the case of Punjab, 11,000 in

the case of Maharastra & 14,000 in the case of

West Bengal.

947

316

165

466

Semi Urban

2594

80

1255

1259

Rural Branches

583412442Total

504464Co-op Banks

4014605RRBs

493221833CBs

UrbanNo. of Branches

No. of Banks

Agency

22

Low Branch Coverage

� Bihar needs 2,226 new branches to reach

National average.

� 28 blocks in Bihar are having no commercial

bank branches yet.

23

SSI SECTOR

15.11137.97913.062007-08

(Up to Sept. 07)

56.55376.11665.082006-07

49.92272.15545.212005-06

40.03217.03542.122004-05

30.29155.61513.702003-04

29.96125.34418.382002-03

32.16118.973692001-02

%ageAchievementTargetYear

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REHABILITATION OF SICK &

CLOSED INDUSTRIES

� 28.3% of the SSI units (registered) are closed.

� The main reasons for sickness were reported as

shortage of working capital & marketing

problems.

� State Government have announced creation of a

Corpus Fund and contribution; however,

Commercial Banks including State Bank of India

and other nationalised banks have not shown any

interest.

� Bank should play a pro-active role in reviving the

sick and closed units.

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LOW CREDIT DEPOSIT RATIO� Bihar’s core strength lies in Agriculture, Handloom, Silk and

Handicrafts.

� The immense potential for economic development in these

sectors. However, the C.D. Ratio of Bihar is only around 33%

against National average of 57%.

32.6117519.8353725.532007-08 (Up to Sept. 07)

33.8119048.4256341.872006-07

32.1014807.8746133.802005-06

29.8612031.2040294.882004-05

27.009603.8635824.002003-04

25.008089.0033815.002002-03

21.006945.5230482.022001-02

23.006396.0027591.002000-01

C.D. RatioCreditDepositYear

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OTHER AREAS OF CONCERN� For the flood affected areas, special credit plan with the

following components amounting to Rs.792.42 cr. was

prepared.

� Consumption loan

� Rural Housing

� KCC

� DIR

� Swarojgar Credit Cards, Artisan Credit Cards & SGSY

etc.

� As against the actual achievement is only Rs.282.4 cr.

27

DETAILS OF BLOCKS WITHOUT

COMMERCIAL BANK BRANCH

2Sitamarhi, SeoharBank of Baroda4

1SamastipurUnion Bank of India

7

3SheikhpuraCanara Bank6

1BhagalpurUCO Bank5

5Madhepura, Purnia, JamuiState Bank of India

3

7W. Champaran, Saran (Chapra), Gopalganj, Darbhanga

Central Bank of India

2

12Nalanda, Buxar, Rohtas, Bhabhua, Gaya, Nawada, Lakhisarai

Punjab National Bank

1

No. of Blocks

DistrictName of the Lead Bank

Sl.

28