1.Investment Opportunities in BiharPravasi Bharatiya Divas New Delhi, January 2008

2. Agenda The Changing Face of Bihar Investment Friendly Policies Adopted Infrastructure Development Initiated and Gaps that can be Bridgedwith PPP Sectors Ripe for Investment in Bihar Be Part of Bihars Growth. 3. Changing Face Of Bihar New Industrial and OtherInvestment ClimatePolicies initiated and beingimplementedInfrastructure Large Scale InfrastructureProjects Initiated Fast-track Court System. NotLaw and Order Just Talk. Results have evenencouraged World Bank. Greater AccountabilityGovernanceMeasures for Departments. 4. Major Investment Policy Initiatives Underway 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 SugarSectors - 2006. Amendment of Sugarcane Act 1985 to provide for other productsfrom sugarcane apart from sugar. Policy for establishing higher Technical Institutions in Private Sector- 2006. Simplification of VAT Regime - 2006. 5. Clearances By The SIPBTotal proposals cleared 108Investment involvedRs.38,000+ croreDirect employment 95000+possibilities in the proposalscleared 6. Distribution of The Cleared Projects 1-New Sugar Mills 21 2-Mega Projects 14 3-Expansion of existing Sugar Mills (7 + 2) 9 & addition of Ethanol Plant Proposals 4-Cement Plants 4 5-Power Projects 3 6-Jute Mill3 7-Handloom Park 1 8-Textile Park 1 9-Tractor Projects1 10- Mini Steel Plant 1 7. BIADA- Allotment of Industrial Units ALLOTMENT OF INDUSTRIAL UNITS450426400350168% Growth300 YoY in the250 allotment of200159Industrial Units150100105106 in Bihar50 34 02003-2004 2004-20052005-2006 2006-2007 2007-2008-50Total No. of UnitsLinear (Total No. of Units) 8. BIADA-Projects Cleared Project Cost (Rs. in Lakhs)140000131328.19120000100000Projects worth1313 Crores80000have been60000cleared/40000 initiated2000017245.7 5615.775843 1299.43 0 2003-2004 2004-2005 2005-20062006-2007 2007-2008Project Cost (Rs. in Lakhs) 9. Improving Investment Climate Infrastructure Focus Public investment postulated to go Roads & Transportationup from Rs 21,000 cr in 10th Plan toover Rs 60,000 crores in 11th Plan Power Share of private investment in totalinvestment postulated to go upfrom the present 59 % to 65 % - Education1,08,283 cr. Telecommunication State intends to attract large shareof private investment and FDI Health Strategy would be throughInfrastructure Development as wellas Investments in Social Services Social Development(Education, Health and Nutrition) 10. RoadsIn three years the State will have Road Infrastructure which will rival thebest in the country The State has 3629 Kms of National Highways 3232 Kms of State Highways 7714 Kms of Major District Roads As against an average outlay of 40-50Crores per year for roads under Planoutlay for 06-07 was 600 Crores. Thisfinancial year outlay is 922 Crores forroads alone. This does not include the allocation forState Highways under which theexpected expenditure during this year isapprox. 1000 Crores. 11. Roads & Transportation Speed and Quality Work Programme for every road with weekly physical and financial targets fines for slippage from work programme and bonus for early completion. Network of own Quality Control Labs. In addition Third Party Quality Control. Computerised Monitoring Data Centre at H.Q. computers with every Division. GIS Road Network Map with Database being drawn up. Capacity Enhancement Equipment Bank New simplified registration system for contractors Contracting Two Bid System for all contracts. New Standard Bidding Document includes best features of MORTH & CPWD bid documents. 12. Roads & Transportation National Highways 2123 Kms being 4- laned - 1608 Kms under NHDP, 245 Kms under Buddhist Circuit Project & 270 Kms on BOT basis 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. Mukhya Mantri Setu Nirman Yojana 445 bridges taken up for construction in 06-07 at a cost of 785 Crores 13. PowerCurrent installed capacity of 587 MWinsufficientExpansion of Barauni and Kanti ThermalPower Stations by adding 500 MW each. For power a 3 fold strategy has Setting up of new power plant under jointbeen adoptedventure with NTPC at Nabinagar (3x660 enhancing Generation,MW).New Hydro Power plantproposedat improving transmission Dagmara(126MW) efficiency andShell company under joint venture with increasing distribution andIL&FS to develop new sites at Katihar and rural electrification. Pirpainti (to be handed over throughcompetitive bidding).Nuclear Power Corporation team visitedRajauli for setting up of a Nuclear PowerPlant of 1000 MW. NPC to expedite the workCoal blocks/linkages needed for the newprojects 14. Power Total Public Investment envisaged- Muzaffarpur Thermal Power Station Rs 222 crores Strengthening of Transmission Lines Rs 2500 crores Strengthening of Distribution SystemRs 150 crores Rural Electrification under RGGVY Rs 1694 crores (all villages to be elctrified by 2009 under Bharat Nirman) New Potential Projects 12750 MW Rs 59350 crores Muzafferpur TPS 750 MWRs 3350 crores Nabinagar TP 4000 MWRs 16000 crores Katihar TPS2000 MWRs 8000crores Pirpainty4000 MWRs 16000 crores Nuclear Power2000 MWRs 16000 crores The state is on track for achieving 100%electrification of all rual areas by 2012 under theRajiv Gandhi Grameen Vidyut Yojna. 15. Health & Education ImprovementsEducation - 19 proposals have been cleared, which include 3 Medical collegecum Super Speciality Hospital, Engineering Colleges, Management Institutes.Communication Institutes and Entrepreneurs Training Institute.To Raise the Infrastructure and Services in Health Sector to Indian PublicHealth Standard 24*7 service in all Hospitals and PHCs Free medicine (100 normally required) Diagnostic facilities at PHC level Ambulance facilities at PHC level Recruitment of doctors and nurses Modernization of PHCs, Distt. Hospitals, Medical hospitals (Rs 300 crores being spent) 16. Policy Interventions Private Investment in Health Private participation is being encouraged in this sector Government will facilitate availability of land at market rate 50% concession on prevailing rates will be given on registration feeand stamp duty Government will provide road, electricity and water up to one pointwithin the boundary of the institution Government will provide 50% of the cost (maximization of Rs.75,000) of preparation of DPR to the private party Ambulances have been provided to all primary health care centers Two landmark initiatives for 24x7 healthcare: Dial 102 for ambulance services Dial1911 for specialist and emergency health services round the clock in Patna 17. Health InfrastructureUp gradation of facilities in PHC has resulted in the no of patients going upfrom 39 per month in January 2006 to 4524 patients per month in October2007.Name of theWorkSl. No. as per No. to beHealth Existing Already PlanNo. the IPHS created Facilitiestaken up1 District Hospital3825 11 11 Sub Divisional2101 22 79 20 HospitalPHC to be3converted in533 533 201CHC331 per year4APHC 15441236 308 for 3 years 1553 per year for 35 HSC 16580 8815 7765751 years 18. Opportunities for Investment-Education & Health Care Technical Eduction 30,000 students migrate from Bihar Medical Colleges Engineering Colleges 1 NIT, 3 govt and6 private Management Institutes Polytechnics Health Care Large no of patients go outside thestate- Kolkata, Delhi, Chennai, Mumbai,Varanasi- lack of adequate facilities 1.5 million OPD and 80,000 Indoorpatients in AIIMS from Bihar 50% patients in AIIMS from Bihar Hardly any super specialty medical/diagnostic facilities in Bihar 19. Not Just Show & TellA slew of fiscal & legislative reformsimplemented.Silent transformation is taking place.First state to abolish Agriculture ProductRECENT REFORMS GIVE AMarketing Control Act.RAY OF HOPE TO BIHAR Urban Land Ceiling Act repealed.-The World Bank in India, Model Municipal Act adopted, 2007. Sept.07Bihar Apartment Ownership Act, 2006adopted.Implementing Comprehensive FloodManagement Information System tosupport flood control and managementthrough early warning & emergencyresponse system. 20. Sectors Ripe For Investment Food Processing Sugarcane (Ethanol etc) Textiles & Handlooms Leather Education, Healthcare & Pharma Tourism 21. Food Processing- Bihars Strength Largest producers of fruits and vegetables 8.60 MT vegetables (9% of all India) 3.35 MT fruits (8% of all India) 0.28 MT litchi (71% of all India) 1.45 MT mango (13% of all India) 0.003 MT makhana (85% of all India) Maize1.5 MT (10% of all India) For ethanol 22. Food Processing Projects Total project cost - Rs.1,670 crore Total period -5 years IL&FS appointed as Project Management Agency. In the first phase, Integrated Food Zone, Rural Agri BusinessCentre/Primary Processing Centre, Air Cargo Complex, QualityAssurance Centre with R & D facilities and development of rice millscluster will be taken upOpportunities Litchi, Mango, Potato, Makhana Processing Honey Related Vegetable & Grains 23. Sugarcane & Ethanol Immediate Opportunity Sugarcane industry is the largest agro-based industry in Bihar. Visualizing the potential of this sector, the strategies of Bihar include: Expanding the area under cultivation from 2.30 lakhhectares to 5 lakh Hectares doubling the production of sugarcane from 143.64lakh MT Strengthening of research institutions in the state. Increase productivity of sugarcane to 70.00MT/Hecters. Encourage the production of ethanol fromsugarcane juice Encourage co-generation of power. 24. Sugarcane & Ethanol Incentive PolicyThe main features of this policy are: Revitalization of closed sugar mills. Exemption from purchase tax onsugarcane for 5 years. Grant of 100% subsidy on capitalinvestment (plant and machinery) to amax of 10 crores whichever is less Reimbursement of central excise duty onsugar. 25. Sugarcane & Ethanol Proposals ClearedSugarcane 21 proposals were cleared. Study Undertaken for the Revival of closed Units SBI Caps have submitted the diagnostic study report. 8 out of 17 units are viable for revival. In other cases, sale of assets for other industrialpurposes is suggested.Ethanol 4 Ethanol plants from Maize at Hajipur, Begusarai,Khagaria and Bhagalpur. 10 plants for Ethanol from Sugarcane juice at Araria,Katihar, Bhagalpur, Jamui, Munger, NalandaAurangabad, Rohtas and Buxor. The total investment is around 4.00 billion USD. 26. Opportunities for Investment- Sugar mills, ethanol, cogeneration Potential for manifold increase in productivity and area 55.43 MT/Hect to 120 MT/Hect 227,000 Hect to 1.5 million Hect Sugar Recovery from 9.6% to 10.36% Ideal agro-climate Ethanol manufacturing Electricity- Cogeneration 27. Leather Sector Bihar is a major producer of good State Govt. approached Ministryquality hides and skins.of Commerce, Govt. of India forestablishment of Footwear Design Bihar ranks 3rd in production of& Dev. Institute in Bihar.hides and skins in the country.Produces 2.64 million bovine Report on potential of leatherhides per annum.industry in Bihar has beenprepared by CLRI. Square shaped goat hide is worldfamous for its quality. CLRI is also making project reportfor establishment of CETP at Acute shortage of trained Muzaffarpur.manpower in footwear industry. 28. Textile, Handloom & Jute The opportunities in this sector Bihar has a strong weavingexist in the setup oftradition with more than 1.3 lacs Raw material bank,weavers. dyeing centers, and This sector has Skilled and cheaplabour. in the post weaving, packaging and finishing The government has announcedmany new initiatives to improve the centers.competitiveness Schemes for modernizingthe There is tremendous need forhandloom sector.design and product The strengthening of the training development.institutions has been initiated and Computer aided designtrainingalso being introduced. 29. InitiativesTextile & Handloom 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 estimated cost of 120 cr. Is under implementation. Special Purpose Vehicle has been formed. Land has been identified.Jute 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 started. M/s Rameshwar Jute Mill is going to establish a jute mill in Kishanganj. Land is yet to be identified by the proposers. 30. Bihar Tourism Has Huge Potential - Lots to Work WithBihar has enormous potential fordevelopment of new product ideas,some of which are the latest craze inthe western world today.Heritage Tourism: The state has anabundance of historical places,Religious Places, Archeological Sitesand forts, which can be suitablyrenovated and opened up for tourism.Health Tourism: Spring sites havetremendous potential for health tourismdue to their medical values.Entertainment Tourism: Bihar have agreat potential for features like;entertainment complexes such asamusement parks, water parks, cablecar rides, aquariums, casinos, soundand light shows, etcWaterfront Tourism: Bihar hassignificant potential for water-basedtourism.Cultural Tourism: Bihar has richcultural heritage which is exhibitedthrough the various fairs and festivalsand dances. 31. Facts Currently getting