1

STATUS OF IMPLEMENTATION

OF

INVESTMENT PROPOSALS

PRESENTATION ON

17/07/2007

2

India has states like Maharashtra, Gujarat and Karnataka, which have grown as fast as Asia's tiger economies during the past 10 years. It also has Bihar, with a population size of Germany's and a living standard at par with Burundi's.

While inequalities magnified inter-state competition seemed to have been intensified.

3

CHALLENGES

Development of Bihar has been a matter of concern since independence.

Low Human Development Indices.

Problem areas are:-Stagnant Economic GrowthPersistent PovertyComplex Social StratificationVery poor infrastructure

4

Public investment postulated to go up from Rs21,000 cr in 10th Plan to over Rs 58,000 crores in 11th Plan

Share of private investment in total investment postulated to go up from the present 59 % to 65 % - 10,08,000 cr.

State intends to attract large share of private investment and FDI

Strategy would be through Infrastructure Development as well as Investments in Social Services (Education, Health and Nutrition)

INVESTMENT

5

Utilisation of idle capital assets. Efficient use of existing potential.Direct investment from Central Government.Initiatives in areas of strategic importance e.g., Infrastructure such as Road, Bridges, Power, Increased Agricultural Productivity, Water Management including Flood Control & Interlinking of Rivers. Policy Initiatives for increased Private Investment.

STRATEGY FOR 8.5% GROWTH

6

Study by CRISIL pointed out that-

♦ Sector has grown at 0.38% in past 5 years Vs national avg. of 7.8%

♦ Investment flow is bleak

–Only 0.4% (Rs 7682 Cr) of proposed investments in India are planned in Bihar (Recent IEM Data)

BIHAR INDUSTRY:A RELATIVE ANALYSIS

35.07%

9.14%

55.80%

19.56%27.28%

53.16%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Agriculture Industry Services

Bihar India

Sector shares in economy – Bihar / India

70120170220270320370420

Bihar India

Manufacturing growth – Bihar / India2004-05

1993-94

1993

-94

1994

-95

1995

-96

1996

-97

1997

-98

1998

-99

2001

-02

2002

-03

2003

-04

2004

-05

1999

-00

2000

-01

7

Value Addition Potential

Food Processing

Leather

Drugs & Pharmaceuticals

Textile

Downstream petrochemicals engineering.

Access to market.

Out migration of skilled and un-skilled labours.

STRENGTHENING OF INDUSTRY SECTOR

8

Major impediments to investmentAbsence of long term policies, non implementation/ reversal of policy and approach of contract.

Inflexibility of labour laws.

Poor infrastructure – Government has already initiated steps to remove impediments. They are:-

Creation of enabling environment, legislative action, administrative reforms.

Improvement in public delivery system.

INVESTMENT CLIMATE

9

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 Sugar Sectors - 2006.

Amendment of Sugarcane Act 1985 to provide for other products from sugarcane apart from sugar.

Policy for establishing higher Technical Institutions in Private Sector - 2006.

Simplification of VAT Regime - 2006.

RECENT POLICY INITIATIVES

10

BIHAR SINGLE WINDOW CLEARANCE ACT, 2006

Provides for speedy processing of clearance and certificate.For promotion of all-round development of the State and the Industrial Development.Provides for investors’ friendly environmentUnder the Act, Section 5 provides for State Investment Promotion Board as an Empowered Committee.

11

STATUS OF CLEARANCE GIVEN BY THE BOARD

89Total6Others18Technical Institutions65Industrial Units

Proposals consist of 4.

85790Direct employment possibilities in the proposals cleared

3.

Rs.36323.496 crore

Investment involved2.89Total proposals cleared1.

12

4- Cement Plants 3

Out of the above:-1- New Sugar Mills 21

2- Mega Projects 143- Expansion of existing Sugar Mills (7 + 2)9

& addition of Ethanol Plant Proposals

5- Power Projects 3

6- Jute Mill 2

7- Handloom Park 1

8- Textile Park 1

9- Tractor Projects 1

10-Mini Steel Plant 1

13

STATUS OF IMPLEMENTATION

3Others

1M/s Ambuja Cement Ltd.

1M/s Balmukund Concast

1M/s Shakti Sudha Industry.

1M/s Patwari Steel Ltd.

1M/s International Tractor

9Existing Sugar Mills

Prominent among themC.16Number of proposals involvedB.

Rs.315 croreTotal Investment as on dateA.

14

CEMENT PLANTS3 proposals have been cleared.

M/s Century Plywood – Kahalgaon

M/s Ambuja Cements Ltd. – Pandarak

Birla Corporation Ltd., Barh

M/s Century Ply Wood has been allotted land at Kahalgaon

M/s Ambuja Cement has been arranged own land at Pandarak.

M/s Birla Corporation Ltd. Would arrange own land at Barh.

15

The supply of fly ash is yet to be tied up with NTPC.

Environmental impact report and clearance by the Ministry of Environment, Government of India likely to take 7 months.

The production would then come up in 10 months thereafter.

16

POWER PROJECTSProposals received from

1. M/s Vikas Metals & Power Ltd.2 X 250 MW (Begusarai)

2. M/s Century Plywood2 X 250 MW (Kahalgaon)

3. M/s J.A.S. Infrastructure1215 MW (Banka)

The allotment of coal block is yet to be done by Govt. of India.

17

JUTE MILL

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 start.

M/s Rameshwar Jute Mill is going to establish a jute mill in Kishanganj.

Land is yet to be identified by the proposers.

18

TEXTILE PARK /HANDLOOM PARK

Handloom Park at an estimated cost of Rs. 25 cr. is being established at Bhagalpur, Biharsharifand 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 est4imated cost of 120 cr. Is under implementation.

Special Purpose Vehicle has been formed. Land has been identified.

19

HIGHER TECHNICAL INSTITUTIONS

18 proposals have been cleared, which

include 3 Medical college cum Super

Speciality Hospital, Engineering

Colleges, Management Institutes.

Communication Institutes and

Entrepreneurs Training Institute.

20

OTHER PROPOSALS OTHER THAN SANCTIONED BY SIPB

2 LPG Bottling Plants are being set up at Muzaffarpur and Bhagalpur with capacity of 22 TMT and investment of about Rs.40.00 crore each.Land is available at Muzaffarpur.Work would start soon.At Bhagalpur land is yet to be identified.

21

SMALL SCALE & TINY SECTOR

Total registered units in the year 2006-07SSI units 22Tiny units 3419Total Investment Rs. 7243.07

(4697.31)*Total Employment 16578

(15732)*

22

SUGAR MILLS

21 proposals were cleared, but only M/s P & M Infrastructure Pvt. Ltd. have laid the foundation at Guruwalia.Another mill at Saharsa by the same company will come up shortly.Rest have delayed the implementation on account of fall in sugar price.

23

M/s Suprabhatam Sugar Industries Pvt. Ltd. is sanctioning up a sugar mill at Patna, Naubatpur.

Land has been identified and farmers are transferring the land voluntarily.

Civil works likely to start from August.

24

PROJECTS UNDER FOOD PROCESSING

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 Business Centre/Primary Processing Centre, Air Cargo Complex, Quality Assurance Centre with R & D facilities and development of rice mills cluster will be taken up.

25

HANDLOOM PROJECTS

Total Project cost around Rs.68 crore

Project duration – 2 years

IL&FS appointed as a Project Management Agency.

26

Salient features of the project

Textile Park

Handloom Park

Privatisation of 3 cooperative spinning mills and dyeing and processing plants.

Up gradation of training institutions.

Designing and product development.

HANDLOOM PROJECTS

27

ETHANOL PLANTS

4 Ethanol plants from Maize at Hajipur, Begusarai, Khagaria and Bhagalpur.

10 plants for Ethanol from Sugarcane juice at Araria, Katihar, Bhagalpur, Jamui, Munger, Nalanda Aurangabad, Rohtas and Buxor.

The total investment is around 4.00 billion USD.

The firms has signed up the non disclosure and other legal agreements.

28

Financial closure with Malaysian and other investors has been achieved. Mukherjee & Associates, Pune has been appointed as Engineering Consultant.ICAR would give consultancy for sugarcane cultivation.M/s Fleck from Austria is the coordinator for supply of Plant & Machinery from Europe Commitment charges to suppliers of plant & machinery already sent.The team would be positioned at the end of August and civil work likely to start in September.

29

INITIATIVES IN LEATHER SECTOR

Bihar is a major producer of good quality hides and skins.

Bihar ranks 3rd in production of hides and skins in the country. Produces 2.64 million bovine hides per annum.

Square shaped goat hide is world famous for its quality.

Acute shortage of trained manpower in footwear industry.

30

INITIAVES IN LEATHER SECTOR

State Govt. approached Ministry of Commerce, Govt. of India for establishment of Footwear Design & Dev. Institute in Bihar.

Report on potential of leather industry in Bihar has been prepared by CLRI.

CLRI is also making project report for establishment of CETP at Muzaffarpur.

A meeting is fixed on 21.07.2007 at Kanpur with leather industry Association.

31

REVIVAL OF THE CLOSED UNITS OF THE SUGAR CORPORATION LTD.

SBI Caps have submitted the diagnostic study report.

Only 8 out of 17 units are viable for revival.

In other cases, sale of assets for other industrial purposes is to be suggested.

Cabinet approval is being taken.

32

FISCAL RESPONSIBILITY & BUDGETMANAGEMENT ACT IMPLICATIONS

State has a huge debt of about Rs.42,498cr. with a GSDP of Rs.66,153 cr.

State Govt. enacted FRBM Act as per the recommendations of TFC

Fiscal deficit to be brought down to 3% of GSDP by 2008-09

33

FISCAL RESPONSIBILITY & BUDGETMANAGEMENT ACT IMPLICATIONS

State has low GSDP. This means low level of borrowings (Rs.2,000 cr.) and hence less resources for development.

Fiscal deficit was 6.11% (Rs.3,700 cr.) in 2005-06 and 4.57% (Rs.3,020 cr.) in 2006-07.

More grants required to the State to overcome huge development deficit for building up physical and social infrastructure and improving health and education services delivery.

34

RELAXATION FOR DEBT RELIEF FACILITY

Bihar stands to lose 1,925 cr. On account of debt relief because of unjustified restriction by Govt. of India.

Govt. of India insists that Fiscal Deficit remain at 2004-05 level throughout TFC period or at least 3% of GSDP.

Bihar FD was at a low level of 1.98% of GSDP at Rs.1,241 cr. Because of low exp due to model code of conduct for an extended period.

Bihar can’t keep FD at such a low level or even at 3% level throughout TFC period as it will severe limit resources for development.

Debt relief of 1,926 cr. Should be allowed as long as we achieve 3% level at the end of TFC period.

35

EXTERNAL AIDPositive discussions with WB, DFID and ADB.

Bihar Rural Livelihood Project approved for US $70 million for 5 year period.

A few Technical Assistance in Flood Forecasting, Public Expenditure Management, Road and Power Sector.

State Govt. has applied for Development Policy Loan for US $200 million.

Request assistance in providing grant for making DPRs for projects which can be posed for Project Loan.

36

ISSUESEstablishing a Petrochemical Complex at Barauni.

State has been emphasizing on

Large public investment to “bridge the infrastructure, social sector deficiencies. The State dependence on public investment inevitably would remain crucial.”

Since inception of the BarauniRefinery in 1964 demand is being made for a Petrochemical complex.

37

Minister of Petrochemical & Natural Gas, Government of India has communicated that “Planning of Petrochemical Complex at Barauni be it aromatic or olefinic based does not merit consideration on Techno-economic grounds.”

38

Hon’ble Chief Minister, Bihar wrote a letter to Hon’ble Prime Minister in May, 2007.

“In view of the need to develop the State, this project is to be given priority and decision may not be purely on economic and technical consideration.

Establishment of Petrochemical Complex to promote several allied industries, ancillary and auxiliary units would come up here and ultimately would promote the industrial environment in the State.”

39

REVIVAL OF BARAUNI FERTILIZER FACTORY

Declared sick by BIFR on 12.11.1992.

Revival matter is pending in BIFR.

Infrastructure created is unutilised.

40

REVIVAL OF IDPL, MUZAFFARPUR

Declared sick by BIFR in Jan, 1996.

Need for revival.

NIPER is being set up at Hajipur.

More Pharma units likely to be set up in the Industrial Area.

41

ALLOTMENT OF COAL BLOCKS FOR POWER PROJECT IN THE PRIVATE

SECTOR IN BIHARThree proposals have been received. They are:(i) M/s Vikas Metals & Power Ltd., Begusarai

( 2 × 250 MW)(ii) M/s Century Plywood, Kahalgaon

(2 × 250 MW)(iii) M/s J.A.S. Infrastructure,

Banka (1215MW)

Unless the coal blocks allotted, these power projects may not take off. World Bank Team also emphasized the need for speedy implementation of power projects in Bihar.

42

MINI STEEL PLANT

Allotment of Iron ore and Manganese ore block for the proposed Mini Steel Plant. USD is yet to be made.

43

CEMENT PLANTSThere are three proposals cleared by the State Investment Promotion Board.(i) M/s Century Plywood at Kahalgaon

1 M.T.

(ii) M/s Ambuja Cements at Pandarak near Barh 1 M.T.

(iii) M/s Birla Cement Plant at Barh 1 M.T.

Agreement for supply of fly ash on long term basis to the proposed cement units are yet to be signed by NTPC with the Investors.

44

RBHM JUTE MILL, KATIHARThis PSU closed and referred to BIFR for revival.

Declared sick by BIFR on 07.06.1993.

Jute growers in this region are affected.

State Govt. are establishing a Jute Park in Katihar & Kishanganj.

Revival of the Mill would speed up development of the Jute sector in Bihar.

45

PRIVATISATION OF THE BIHAR SUGAR CORPORATION

15 Sugar Mills and 2 Distilleries closed for more than 10 years.

Diagnostic Study Report by SBI Capital Market has been submitted.

Revival of 8 units for setting up sugar complex and disposal of the remaining for other industrial purposes are being taken up.

46

The gap between the assets and liabilities of the Corporation is around 365 crore (excluding the interest due to the State Government)As a PSU reform measure, the State Government efforts should be strengthened by special assistance from Central Government for meeting this gap.Recommendation to International Agencies for Developmental Policy Lending.Relaxation from FRMB restriction.

47

REVIVAL OF SICK & CLOSED UNITSState Government have already announced creation of Corpus Fund for revival of sick and closed units.Government’s contribution to be around 5 crore to the corpus.Financial institutions have not evinced interest in joining to contribute to the corpus.FIs are to be directed to join the efforts of the State Government to revive the sick & closed units on the recommendation of State Level Institutional Committee.

48

ROAD CONSTRUCTION

DEPARTMENT

49

INFRASTRUCTURE - ROADS

The State has

3629 Kms of National Highways

3232 Kms of State Highways

7714 Kms of Major District Roads

In three years the State will have Road Infrastructure which will rival the best in the country

50

National Highways

2123 Kms being 4- laned - 1608 Kmsunder NHDP, 245 Kms under Buddhist Circuit Project & 270 Kms on BOT basis

(MAP)

INFRASTRUCTURE – ROADS

51

Improving riding quality of all National Highways on which 4-laning not started – in 06-07 and upto June 07 renewed 1100 Kms.

MORTH were to give sanctions worth 235 Crores in 06-07 – as against which estimates worth Rs. 104 Crores only were sanctioned – never the less we spent 97 Crores under NHO against the original allocation of 70 Crores. In all spent 346 Crores (out of which State provided 180 Crores)

Continued……

52

State HighwaysAll 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.

INFRASTRUCTURE – ROADS

53

Quantum Jump

As against an average outlay of 40-50 Crores per year for roads under Plan outlay for 06-07 was 600 Crores. This financial year outlay is 922 Crores for roads alone. This does not include the allocation for State Highways under which the expected expenditure during this year is approx. 1000 Crores.

INFRASTRUCTURE – ROADS

54

Mukhya Mantri Setu Nirman Yojana445 bridges taken up for construction in 06-07 at a cost of 785 Crores

HallmarksSpeed 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.

INFRASTRUCTURE – ROADS

55

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.

INFRASTRUCTURE – ROADS

56

Expressway between Patna – Ranchi

under NHDP-VI

Patna Ring Road under NHDP-VII

REQUESTS

57

Conversion of Single/Intermediate

Lane to Double Lane under NHDP-IV1600 Km of National Highways is Single/Intermediate Lane Conversion of at least 1000 Kms to Double Lane under NHDP-IV

Consider Patna-Rajauli-Barhi-Ranchi-

Jamshedpur-Bahragora – Baripada –

Balasore – Bhuneshwar – Paradip Port

as an economic corridor under NHDP-V

REQUESTS

58

59

HEALTH

60

To Raise the Infrastructure and

Services in Health Sector to Indian

Public Health Standard

GOAL

61

STRENGTHENING HEALTH INFRASTRUCTURE

1553 per year for 3

years7517765881516580HSC5

331 per year for 3

years30812361544APHC4

201533533PHC to be

converted inCHC

3

207922101Sub DivisionalHospital2

11112538District Hospital1

Plan

Work Already taken

up

No. to be

created Existing No. as per

the IPHS

Name of theHealth

Facilities

Sl.No.

62

Beds in District Hospitals as per Indian Public Health Standard (IPHS)

Aurangabad, Araria, Bhojpur, Jehanabad, Katihar, Khagaria, Madhepura, Banka, Nalanda, Nawada, Purnea, Rohtas, Saharsa, Buxar, Jamui, Kaimur, Kishanganj, Lakshisrai

300 2

East Champaran, West Champaran, Gopalganj, Madhubani, Samastipur, Saran, Vaishali, Sitamarhi, Siwan

5003

Arwal, Sheikhpura, Sheohar, Supaul, Darbhanga, Muzaffarpur, Bhagalpur, Gaya, Patna, Begusarai, Munger

100 1

Name of DistrictsNumber of Beds

Sl. No.

63

Healthcare Services in the District Hospitals

Ancillary and Support Services:Medico-legal/postmortemAmbulance servicesDietary servicesLaundry servicesSecurity servicesWaste managementCounseling Services Warehousing/Central StoreMaintenance and repairElectric & Water Supply AC &Heating TransportCommunicationMedical Social WorkNursing ServicesSterilization DisinfectionHorticulture Lift and vertical transportRefrigeration

Diagnostic and Para Clinical Services:Laboratory servicesImaging servicesCT Scan servicesSonographyECGEEGEchocardiogramPathologyBlood BankPhysiotherapyDental Technology Drugs and Pharmacy

OPD ServicesIndoor Services, Emergency services

General MedicineGeneral SurgeryO&G servicesPaediatrics &NeonatologyCasualtyCritical Care (ICU)AnesthesiaOphthalmologyENTSkin & VD/ RTI/STIOrthopaedicsRadiology & UltrasonographyRadiotherapyDental carePublic Health Management

64

No. of Patients Visited per Govt. Hospital per Month

39

653

1018 11

01 1306 15

47

2758

3063

2685

2454 26

38

2565

2243

2224

2257

2120

2784

3508

0

500

1000

1500

2000

2500

3000

3500

4000

Jan.

, 06

Feb.

, 06

Mar

ch, 0

6

April

, 06

May

, 06

June

, 06

July

, 06

Augu

st, 0

6

Sep.

, 06

Oct

., 06

Nov.

, 06

Dec.

, 06

Jan.

, 07

Feb.

, 07

Mar

ch, 0

7

April

, 07

May

, 07

June

, 07

Months

Num

bers

65

EDUCATION

66

New teacher recruitment policy and rules: no contract or para-teachers – over 1,20,000 school teachers appointed through Panchayati RajInstituions (PRI)15 000 New Schools: learning centers abolished and 15000 new schools established – building const going on.Mukhyamantri Samgra Vidyalaya VikashKarykram : Not add a classroom, make a school-Integrated development of school: provision of boundary walls, major renovations, kitchen shed etc, games including children’s educational excursion and other facilities

RECENT MAJOR INITIATIVES

67

Free uniform and bicycles: All girls of 6-8 to get free uniform and of class 9-10 bicycles-enhance girls’ participation and reduce gender gaps Mid-day Meals: State share for cooking meals increased from Rs. 0.64 to Rs. 1.00, being given to mothers’ committees and SHG under overall VSS supervisionTeachers grievances and disengagement from non-teaching activities: A series of steps to enhance teacher’s morale and enhance teaching time

RECENT MAJOR INITIATIVES

68

CONTINUED: ACCELERATED SSAIMPLEMENTATION

44430.26

154958.52

37650.09

24689.41

1292.04896.780.00

20000.00

40000.00

60000.00

80000.00

100000.00

120000.00

140000.00

160000.00

180000.00

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007

Rs.

In L

akhs

69

Towards the Common School System: To address the question of equal opportunity and social justice in schooling, ensure fundamental right to education with quality and possibility of enhanced investment including PPP model at secondary level –the Commission has submitted a blueprint De-linking Inter from University and Colleges: The process has begun, 600 sec schools being upgraded to +2 level on NCERT pattern, curriculum and syllabus revamped – exercise also to enhance access to HE education.

70

Establishment of new Institutions in HE: Chankya National Law University, BIT Extn. Campus established.

New Institutions coming up: National level management institute on the IIM pattern, Aryabahtta Professional University, University of Nalanda

71

PANCHAYATI

RAJ

72

Empowerment of women and other disadvantaged sections of the society through affirmative action.Promotion of participation of the general masses through a mandatory quorum system for Gram Sabha meetings.Ppromotion of accountability and supervision in the functioning of the PRIs through ‘Social Audit’ and formation of Vigilance Committees.Grant of ‘Public Servant’ status to enhance the accountability of the elected PRI representatives.Gram Katchhary – Speedy, cheap and accessible, justice delivery system at door steps to function with the help of Nyayamitras

Enactment of Bihar Panchayat Raj Act, 2006ACHIEVEMENTS

73

Of the 2,53,260 elected representatives of PRIs, 1,30,031 are women.

Incident free General Panchyat Election,06 held by SEC

50% reservation for women and nomination of members of SC, ST & OBC (in case of non-representation) in DPCs

Successful conduct of election to DPCs by SEC

Achievements……..

Activity Mapping; 29 subjects, 20 line departments have been completed.

Devolution and Decentralization

74

A number of rules have been framed since the enactment of Bihar PanchayatRaj Act, 2006 for the smooth functioning of the PRIs.

Framing of Rules

Achievements……..

75

INITIATIVES

For effective ‘Road Map’ for decentralisationof power in respect of 29 subjects related to 20 line departments to ensure realisation of Panchayat Sarkar in true sense.

Task Force on Panchayati Raj

Human – training for elected representatives, officials and major stake-holder.

Infrastructure – construction of PanchayatSarkar Bhawan and Block Resource Centre.

Massive Capacity Building exercise to strengthen the service delivery system

76

To enable service delivery through CSC kiosks; creation of Panchayat Portal for easy transfer and access to data; creation of MIS & application of Plan plus for Planning

A project based on ‘PRIYASOFT’ for accounting has been submitted to GOI for approval.

Installation of E-governance, new Financial Management System and MIS

Linkage of bank accounts of PRIs through core banking system.

Simple, easy, transparent and equalising transfer system of funds

77

Resource mobilization

Hand Holding Support

Provision of skilled personnel subject to requirement at all the three tiers of PRIs on contract basis to ensure planning, execution and monitoring of various projects/programmes of Panchayats

Implementation of Recommendation of 3rd SFC

Constitution of the 4th State Finance Commission.

Constitution of State RBH Council to promote the traditional rural marketing system.

Activity Mapping Revisited

Devolution of funds through the creation of a Panchayat Window through activity mapping.

78

ENERGY

79

Negotiations on with NTPC to hand over distribution of Patna and Bhagalpur towns. NTPC to start due diligence soon.

Revenue based franchise system already introduced in 158 feeders in rural and urban areas. Revenue increased upto 200% in many feeders.

Improved resource mobilization. Revenue collection increased from Rs. 65 crores per month (2005-06) to Rs. 85 crores (2006-07). Rs. > 100 crores in last 3 months.

Bring down AT&C by 3% p.a. in the next five years.

POWER REFORMS

80

Total no. of villages - 39,015Electrified (as per old definition) as on

- 20,010Electrification under RGGVY

Scheme provide only for domestic lighting. No provision for Agriculture based industrial load. Additional infrastructure required for energizing pumpsets and agro based rural industries.State Govt. to create three phase line for agricultureCEA assessed demand for funds for three phasing in Bihar. Document on Road Map submitted to the Special Task Force of Planning Commission.Requirement of funds as assessed by STF may be provided to Bihar as special package.

POWER FOR AGRICULTURE

81

Current installed capacity of 587 MW insufficient Expansion of Barauni and Kanti Thermal Power Stations by adding 500 MW each.Setting up of new power plant under joint venture with NTPC at Nabinagar (3x660 MW). New Hydro Power plant proposed at Dagmara(126MW)Shell company under joint venture with IL&FS to develop new sites at Katihar and Pirpainti (to be handed over through competitive bidding).Nuclear Power Corporation team visited Rajauli for setting up of a Nuclear Power Plant of 1000 MW. NPC to expedite the workCoal blocks/linkages needed for the new projects

CAPACITY ADDITION IN GENERATION

82

Rural Works Department

83

VisionTo provide all weather rural road connectivity to all habitations by construction of remaining 33525 km of link routes and upgradation of 4227 km of through routes requiring about 15000 cr and maintenance of total constructed roads requiring 400 Crore per Year (on average basis for routine maintenance).

Achievement during 2006-07Completed 1251.35 km under State Plan and 1256 km under PMGSY (including NEAs part) with total expenditure of 152294 lac.

Rural Works Department

84

Initiatives undertaken

Mukhya Mantri Gram Sadak Yojana for providing connectivity to 500-999 population.

Strengthening of BRRDA .

Dedicated PIUs for implementation of Bharat Nirman Yojana.

Strengthening of Quality Control Mechanism

Updation of Core Network.

Outsourcing of Process Management with DPR Preparation to IL&FS.

85

Initiatives undertakenOutsourcing of constructions supervision.Formulation of Rural Roads Maintenance Policy.Capacity Building of contractors, e.g. equipment bank, soft loan, training etc.Training of Engineers.On-Line Monitoring of Schemes. Implementation of All State Plan Programmes through Bihar Rural Road Development Agency (BRRDA).Standard Bidding Document & E-Procurement.Registration/Renewal of Agencies simplified.

86