ravi_r_misra

8/7/2019 Ravi_R_Misra

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Bihar: A land of Immense

Opportunities for Agro and Food

Processing


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Changing Bihar : Some pointers

Average annual growth rate around 5.5 % - up from 3-4 %

Total deposits in FY 2008 rose by Rs. 11,681 crore over FY

2007

Number of motor vehicles being registered annually at around150,000

From 80,000 in FY 2006

Total no. of GSM subscribers at around 1.24 crores at the end

of 2008 From 9.70 lacs 3 years back


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Changing Bihar : Priorities

Roads Agenda for 11th Plan

Up gradation of 1600 km of National Highways to 4 lanes

Two laning of all State Highways

Upgradation of all major District Roads Total estimated budget : Rs. 18,000 Crores

Power Agenda for 11th Plan

2 Thermal power plants

6 Hydro power plants

Total Installed Capacity planned : 4000 MW


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State Investment promotion board (SIPB) :

Approved Projects

190

Rs. 12000Crores

125000 persons

Total proposals cleared during

last 3 years

Investment involved

Direct employmentpossibilities in the

proposals cleared


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Food Processing Sector Identified as Key

to industrial growth A vision document for Food processing sector in the state for

next 10 years prepared

Vision Document Identified wide range of interventions

Development of 2 Integrated Food Zones/ Food Parks

Setting up of 100 Rural Agri Business Centres

Development of Rice/Makhana/Maize clusters

Setting up of Modern Abattoirs and Fish Processing Units

Setting up a Nodal Quality Assurance/Product Dev. Centre Investment potential of around Rs. 1500 crores identified in

food processing sector


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Resource Map


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Potential for Agro and Food Processing

Paddy: 50 lacs MT produced in an area of 40 lacsHaPaddy: 50 lacs MT produced in an area of 40 lacsHa

Maize: 20 lacs MT produced in an area of 7 lacsHaMaize: 20 lacs MT produced in an area of 7 lacsHa

Vegetables: Third largest producer, approx 130Lacs MTVegetables: Third largest producer, approx 130Lacs MT

Fruits: Seventh Largest produces, approx 30 lacs

MT

Fruits: Seventh Largest produces, approx 30 lacs

MT

Unique products: Litchi and MakhanaUnique products: Litchi and Makhana


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Opportunities for Rice Based Industries

1. Modern Rice Mills

Some famous fine varieties: Katarani, Sona Chood

Thriving milling industry in Rohtas, Buxar, Kaimur,

Aurangabad, Bhojpur

Bihar is one of the largest markets for milled rice

Current milling capacity in the state not enough to meet the

demand

2. Husk Based Power Plants Large quantity of Paddy production

Productivity of Bhabhua one of the highest in India

3.11t/ha


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Opportunities for Maize Based Industries

1. Starch, Poultry feed, corn oil, flakes, flour

unit

In Bihar maize is grown throught the year but

Winter maize (Rabi) unique to the state Khagaria, Madhepura, Katihar, Purnea, Saharasa,

Begusarai are main maize producing districts

Insignificant processing in the state

Major Supplier to maize based industry located in

Northern and Eastern India


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Fruits & Vegetable Based Processing

1. Litchi Processing

Bihar produces 75% of the litchi in the country

Highly perishable fruit, processing center should be close to

production

Shahi litchi flavour is absent outside the Muzaffarpur litchi cluster

Only 5000 MT of processing capacity in Bihar, not even 5 % of

estimated production

Litchi producing area well connected by road and rail

2. Other Fruits and Vegetable Processing

Banana ripening and processing: About 10 lacs MT production in

Vaishali and Bhagalpur region Makhana: 20, 000 MT of production in districts like Darbhanga,

Madhubani, Purnea and Katihar


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Jute Processing

State is a major jute producing region

Accounts for 13 % of jute production, second after WB

Purnea, Araria, Kishanganj, Katihar, Supaul and Madhepura

major jute producing districts

A comprehensive business plan made for balanced growth ofthe sector

Processing identified as a weakness, less than 5 % processed

in State

State Offers immense opportunities for setting up of facilities

Value added products, diversified jute products etc.

One Jute park under PPP mode coming up in Purnea with an

estimated investment of Rs.125 crores


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Tea Sector Prospects

Area under Tea Cultivation increasing

State Govt. coming with a special policy package to promote

tea cultivation and processing in the State

Policy to provide :

To provide tea processing an industry status

Backward linkage for the tea processors

Incentive as per the existing land ceiling act

Grant on plant & machinery for tea processing units


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Sugar Sector Prospects

Traditionally State has been an important sugar producing

region State Government trying to revive 19 closed sugar mills

Reliance and HPCL among Bidders awarded mills for revival

in the first phase

Fresh bids being invited for other mills

Ethanol producion to be focus of new investment plans


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AGRICULTURE POTENTIAL IN BIHAR-ROAD MAP

Rice14.86

Qtl/ha29.72

Qtl/ha

2007-08 2012-13

Maize26.71 Qtl/ha 35.25 Qtl/ha

Pulses7.22

Qtl/ha10.13

Qtl/ha

Oil seeds10.32

Qtl/ha

12

Qtl/ha

Fruits 109.32 Qtl/ha146.05 Qtl/ha

Vegetables 165.92 Qtl/ha 200.60 Qtl/ha


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Enabling Policy Environment

1. Industrial Incentive Policy 2006 Stamp duty and registration fee waiver in

lease/sale/transfer of land for setting up Units

VAT reimbursements @ 80% of deposited amount for 10years (max. 300% of capital investment)

Incentive provisions for Zero VAT items also available(max 70 % of installed capacity)

Reimbursement of 50% capital investment on plant &machinery for captive power generation/Diesel generatingset with no upper limit

25% VAT reimbursement for existing industries for 5 years2. Abolishment of APMC Act

3. Bihar Single Window clearance Act 2006


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SPECIAL SCHEMES FORFOODPROCESSING SECTOR


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1. Scheme for integrated development of foodprocessing sector

2. Scheme for Food Parks


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Scheme for Integrated Development of Food Processing Sector

To facilitate setting up of new food

processing units by addressing theinfrastructure, technology, skills andmarketing constraints

To aid in expansion or up-gradationof existing units

Objective


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Scheme for Integrated Development of Food Processing Sector

For SPV Grant up to 40% of theproject cost, subject to maximum

Rs. 10Crores in case of commoncluster infrastructure and

Up to 35% of the project cost

subject to maximum Rs. 5 Crores incase of an individual investor.

Amount ofFunding


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Scope and Coverage of the Scheme

1. Land & Factory building, plant and machinery, R& D

quality control center, warehousing facilities, training

center, trade and display center, water supply, electric

supply including captive power plant, effluent treatment,telecommunication lines etc.

2. The cost of land considered for project cost would be the

registered value of the land

Note: For expansion and capacity increase projects, benefits

available only if expansion is at least 50% of the present

capacity.

Scheme for Integrated Development of Food Processing

Sector


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First Installment : 10 % of the assistance, as advance, on final approval of

the project

Second Installment: 20 % of the assistance, as advance, after the financial

closure of the project and award of contracts for civil work and placing oforders for proposed plant and machinery

Third Installment: 40% of the assistance after the utilization of the

previous installments and after the proportionate expenditure (i.e. 30% of

the share of Individual Investors/SPVs) has been incurred by the individual

investors/SPVs Fourth Installment: 30% of the assistance after the utilization of the

previous installments and after the completion of the project

Scheme for Integrated Development of Food Processing

Sector

Release Of Assistance


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Scheme For Food Parks

To be set up by a Special PurposeVehicle (SPV), registered as a corporatebody with 51% equity of the privateentrepreneurs while rest of the equitymay be with state government agencies,banks and financials institutions etc.

20%of the project cost subject to max.Rs. 15 Crores

Eligibility& Funding


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Central Processing Hub

Common Infrastructure

Physical and Environmental

Infrastructure Factory building and for processing

units

Primary Processing Centers

Cold Chain network.

Engineering and ConstructionSupervision Consultancy

Projectcomponents


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Release of Assistance First Installment: 20% of the total state government share of grant in

advance after final approval of the project by PAMC.

Second Installment: 40% of grant after the utilization of the 1st installment

and after the proportionate expenditure (i.e. 20% of the share of SPV)incurred by the SPV. Utilization Certificate (UC) of the 1st Installment will be

submitted by the SPV at the time of making claim for the 2nd Installment.

Third Installment: 30% of grant after the utilization of the 2nd installment

and after the proportionate expenditure (i.e. 40 % of the share of SPV) has

been incurred by the SPV. UC of the 2nd Installment will be submitted by the

SPV at the time of making claim for the 3rd Installment.

Fourth Installment: Final 10% of the state grant share will be released after

successful completion of the project. The UC of the 3rd Installment will also

be submitted by the SPV at the time of making claim for the final Installment


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Approved food processing projectsApproved projects under Food ProcessingSchemes

Rice 4 Projects worth around Rs. 70 Crores given final approval10 -15 projects worth Rs. 50 Crores in pipeline

Logistic Hub 1 Project comprising modern dry and controlled storage

facilities given final approval

Estimated Project cost Rs. 49 Crore

RABC 2Projects of Rs. 15 Crores given final approval4Projects of Rs. 30 Crores given in-principle approval

10 more projects worth Rs. 50 Crores in pipeline

Maize 1 project of around Rs. 15 Crores given in-principle approval

Some large investment proposals being finalised

Makhana 3 Projects worth Rs 5 Crores given in-principle approval, 1large farm-to-market proposal being considered

Other Food

Processing

projects

1Project of Rs. 9.59 Crores given final approval

3 Projects worth around Rs. 200 Crores given in-principle

approval


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IFC- Investment Climate Reform

Programme

Aimed at improvement in overall investment climate

Focus on Agricultural produces specially maize andsugarcane

Detailed Value Chain mapping done

Agricultural Competitiveness Partnership being worked on Task forces on maize and poultry are being proposed

To facilitate Public-Private-Dialogue (PPD) Similar task force is being proposed for sugarcane sector


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