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was put before the hon’ble patna high court for privatisation by bihar state sugar corporation which has been withdrawn by state government in 2007.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 LtdSugar Mill 71.69

Jay Shri Ram Annapurna Rice Mil

Private Limited Rice Mill 54.49

India Green Fuel Private LimitedSugar Mill Distillery Plant 54.49

Ruchi Soya Industries LimitedPackaged Blended / Refined Oils

Textured Soya Protein Packaged 48.75

Grains

Maurya Sugar Private Limited Sugar Complex 38.72

Vaidyanath Sugar Mills Private LtdSugar Mill 38.72

Durga Agro Energy Limited Rice Mill 31.55

Amrapali Foods Limited Food Park 28.68

Suman Agritech Private LimitedVegetable Refined Oil 27.24

Approximate

Name of Investor Details Investment

(US $ Million)

ITC Ltd. Milk Processing Pant 22.94

Hindustan Coca-Cola Beverage PvtSoft Drinks

Non-alcoholic BeveragesLtd 22.37

Fruit Juice / Fruit Based Drinks

Packaged Drinking Water

Jhunjhunwala Vanspati LimitedEdible Oil Plant 21.51

Era Agritech (I) Pvt. Ltd. Agro Business Centre 20.07

Esveegee Starch & Chemical Pvt LtdMaize Processing Unit 20.07

Ambo Agro Products LimitedRefined Edible Rice Oil Mill 18.64

Bihar Agro Projects LimitedFood Park 17.21

Britannia Industries Ltd. Bakery Products 12.33

Tiger Warehousing Cold Chain PvtWarehousing Cold Storage 11.47

Ltd.

Skimmed Milk Powder

Prashant Jalan & Associates Poly Pack Milk7.17

Ice-cream

Curd manufacturing project

Jain Agro Distilleries Private LimitedDistillery 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:

YearsAmount(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