bihar - ibef · bihar has a steady inflow of investments across sectors • as of december 2008,...

BIHARSeptember 2009

2

Investment climate of a state

• Skilled and cost-effective labour

• Labour market flexibility

• Labour relations

• Availability of raw materials and natural

resources

• Tax incentives and exemptions

• Investment subsidies and other incentives

• Availability of finance at cost-effective terms

• Incentives for foreign direct investment

(FDI)

• Profitability of the industry

• Procedures for entry and exit of firms

• Industrial regulation, labour regulation,

other government regulations

• Certainty about rules and regulations

• Security, law and order situation

• Condition of physical infrastructure such as

power, water, roads, etc.

• Information infrastructure such as telecom,

IT, etc.

• Social infrastructure such as educational

and medical facilities

Resources/Inputs

Incentives to industryPhysical and social

infrastructure

Regulatory framework

Investment climate of a state is determined by a

mix of factors

BIHAR September 2009

Bihar‘s performance on key socio-economic indicators

Availability of social and physical infrastructure in the state

Policy framework and investment approval mechanism

Cost of doing business in Bihar

Key industries and players

3


The focus of this presentation is to discuss…

10.211.5 11.0

12.9 12.8 13.7 13.5

17.219.1 18.6

0

5

10

15

20

25

1999-0

0

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

• The gross state domestic product (GSDP) has

grown at a compound annual growth rate

(CAGR) of 6.9 per cent between 1999–2000 and

2008–09 to reach US$ 18.6 billion; growth has

been driven mainly by the services sector.

• The structural composition of the state‘s

economy has transformed over the years-

namely, there has been significant growth in the

tertiary sector.

• The state‘s primary sector currently accounts for

30.1 per cent of the GSDP, having fallen from a

share of 35.4 per cent in 1999–2000.

4

Source: Economic Survey of Bihar, 2008–09

GSDP of Bihar (US$ billion)

Bihar September 2009

PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS

CAGR 6.9%

Significant improvement in Bihar‘s economic performance in

recent years

• The secondary sector accounts for 5.5 per cent

share, having grown at a CAGR of 2.8 per cent

between 1999–2000 and 2008–09.

5


35.4% 30.1%

7.8%5.5%

56.9%64.4%

0%

20%

40%

60%

80%

100%

1999-00 2008-09

Primary Secondary Tertiary

Percentage distribution of GSDP


CAGR

5.0%

2.8%

8.4%

Significant improvement in Bihar‘s economic performance in

recent years


4.1

11.8

40.7

43.5

5.0

14.6

30.5

49.9

0 20 40 60

R1

R2

R3

R4

Bihar All IndiaIn percent

Households in the state have medium to low consuming

potential

• The per capita income of Bihar was US$ 236 in

2007–08 as compared to US$ 850 for all-India.

• Distribution of households by socio-economic

classification (SEC) shows that a significantly

large portion of Bihar‘s population falls in the

low education and unskilled categories, although

there is some concentration at the self-

employed and junior employee levels.

6

Percentage distribution of households in urban areas

by SEC*

Rural

Source: BW Marketing Whitebook, 2009–10

* See Annexure for SEC categories

Percentage distribution of households in rural areas

by SEC*

3.5

6.7

8.0

8.3

19.9

23.4

11.5

18.6

3.4

6.8

8.5

9.3

16.9

20.3

9.3

25.4

0 10 20 30

A1

A2

B1

B2

C

D

E1

E2

Bihar All India

In percent

Urban



• In ownership of household goods and basic

amenities such as sewing machines, in-house

toilets, clocks and ceiling fans, rural Bihar lags

as compared to all-India levels.

7

Households in the state have low disposable incomes

Source: BW Marketing Whitebook, 2009–10

Percentage of rural population owning household goods and basic

amenities



Industrial performance has been driven by unregistered units

• The unorganised sector accounts for around 65 per cent of the manufacturing output of the state; unregistered units dominate the overall industrial sector in the state, accounting for one-third of total units.

• There are 263 large and medium industries, a majority of which are located in Patna division, followed by Tirhut.

8 Source: Economic Survey of Bihar, 2008–09


Key industries in Bihar

• Food and beverages

• Rubber and plastics

• Transport equipment

• Chemicals

• Tobacco

• Textiles

• Leather

• Wood

• Paper/printing and publishing

• Mines and minerals

• Dairy

• Tea

• Sugar

Sector-wise industry representation in Bihar


Bihar has a steady inflow of investments across sectors

• As of December 2008, outstanding investments* in Bihar stood at US$ 22.8 billion with a potential for employment of 120,000.

• Out of 164 investments approved in the last three years, until December 2008, 15 have been implemented, one is ready to commence operations and 49 are at advanced stages of implementation.

9

Source: CMIESource: Economic Survey of Bihar, 2008–09

SIPB = State Investment Promotion Board

YearNumber of proposals

approved by SIPBCumulative

Up to January 2007 72

2007 43 115

2008 49 164

9.0%

0.7%

71.3%

13.8% 4.9%

0.3%

Break up of investment by sector

Manufacturing

Mining

Electricity

Services

Irrigation

Construction

*Outstanding investments include new projects and those under implementation,

but not projects shelved



Patna, Tirhut, Muzaffarpur, Barauni, Bhagalpur and Gaya are the

major industrial centres in Bihar

10

Centres Industries

Patna

Major agricultural centre of trade exporting grain, sugarcane, sesame and medium-

grained rice; has also emerged as a manufacturing hub in Bihar, with the highest

number of industrial units

Tirhut Has the second-highest number of units in the state; food/beverage processing and

manufacturing units located here

MuzaffarpurImportant trade centre for cloth; famous for exporting fruits, particularly, mango

and litchi

BarauniHas major industrial units including those of Indian Oil Corporation‘s refinery; a

thermal power station has been proposed to be set up

Bhagalpur

Famous worldwide for silk; trading of agricultural produce and cloth is an important

economic activity. Other major industries include rice, sugar milling and wool

weaving

GayaMajor weaving centre having around 8,000 operational powerlooms; important

tourist hub




11








Labour in Bihar is mostly unskilled and predominantly involved in

agriculture

• Of the total population of 82.9 million, roughly 28 million or 34 per cent form the workforce of the

state.

• Though Bihar is the third-most populated state in India, it accounts for only about 7 per cent of the

total organised sector employment in the public sector; in the private sector, the share of Bihar is still

lower at about 3 per cent.

• There has been a large increase of subsidiary status workers in the state, pointing to the presence of

a high degree of disguised unemployment as well as temporary or casual labour.

• The major percentage of the workers is in the agriculture sector as cultivators or agricultural

labourers.

• The women worker participation rate is poor in Bihar.

12

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE


Social infrastructure in the form of educational institutes and

medical institutions has scope for improvement … (1/2)

• As per Census 2001, the literacy rate in Bihar is

47 per cent, much lower than national average

of 65.4 per cent.

• The state government constituted the

Common Schooling System Commission in

August 2006. The commission has started

working towards making available elementary,

secondary and senior secondary education to

all.

• The state government has also decided to

provide single-window clearance to facilitate

private sector participation in institutions of

higher education.

13

Status of educational institutes

• 13 universities/deemed/open universities

• 11 research institutions

• 259 government-aided colleges

• 245 private colleges

• 7 engineering colleges

• 23 medical colleges

• 15 teacher training colleges

• 63 other educational institutions

Educational infrastructure



Social infrastructure in the form of educational institutes and

medical institutions has scope for improvement … (2/2)

14

Medical infrastructure

• There are about 121 hospitals, 1,648 primary health centres, 101 community centres and 10,337 sub-centres in the state.

• The penetration of medical facilities is lower as compared to the rest of the country.

Comparison of health indicators

*Per thousand persons

** Per thousand live births

Source: Census 2001

All-India Bihar

Population served per

doctor1,607 2,364

Birth rate* 24.8 31.0

Death rate* 8.1 10.5

Infant mortality rate** 63.0 61.0

Life expectancy at birth (years)

Male 64.1 61.6

Female 65.4 59.7



15

Infrastructure for collection of savings and disbursal of

credit in place, but credit disbursement is low

• As of March 2008, Bihar‘s credit-deposit ratio was

28.2 per cent, far below the national average of 74.4

per cent.

• As on March 31, 2008, Bihar accounted for 2.1 per

cent and 0.8 per cent of total deposits and credits,

respectively, in the country; these figures are one of

the lowest among the major Indian states.

• Low credit reflects risk aversion on part of banks

and impacts the profitability of enterprises, which

are forced to go to private, often, more expensive

lenders.

• The National Bank for Agriculture and Rural

Development (NABARD) manages the rural

infrastructure development fund for the state.

Financial institutions in Bihar

Co-operative societies* 293

Regional rural banks** 1,465

Indian commercial bank branches* 3,769

*2007-08

** 2006-07

Source: Reserve Bank of India



Transport infrastructure is inadequate, but it is being ramped up

16

• Bihar has a total road length of 83,000 km, of which

76.3 per cent are village roads, the remaining being

district and state roads, and national highways.

• While 5.3 per cent of the total length of national

highways run through Bihar, some of the districts

such as Banka, Jamui and Kishenganj are devoid of

national highways; about 57 per cent of habitations

in Bihar are accessible by road.

• Bihar has 88 km of roads per 100 sq km Less than

50 per cent of the roads in Bihar are surfaced as

against a national average of 60 per cent.

• The East-West four-lane, high-speed corridor

passes through Bihar.

• Patna and Gaya have domestic airports.

• Most district headquarters have

airstrips/aerodromes; small air taxi/charter services

are available at Patna.

• Patna is connected to Delhi, Kolkata, Mumbai,

Lucknow and Ranchi by air service.


Roads Civil aviation


Rail infrastructure is adequate, inland waterways are being

developed

17

• The river Ganga between Allahabad and Haldia (1,620 km) has been declared as ‗National Waterway 1‘ and is being developed for navigation by the Inland Waterways Authority of India.

• Patna is planned to be a permanent terminal and cargo handling facilities are being developed.

• The National Inland Navigation Institute has been set up in Patna to train vessel crews.

• Bihar‘s railway network is fairly well developed; the total rail length in the state is more than 5,400 km

• Hajipur in Bihar is the headquarters of the East Central Railway; the state‘s main rail junctions are at Patna, Gaya, Muzaffarpur, Katihar and Samastipur.

• More than US$ 1.4 billion of estimated investment has been planned for the modernisation of railways in Bihar — including gauge conversion, doubling of lines and electrification.

• Several link lines, such as Muzaffarpur-Samastipur-Barauni-Katihar and Muzaffarpur-Chapra-Siwan, have been converted into broad gauge.


Railways Waterways


Power infrastructure is being developed; telecommunications

infrastructure is adequate

18

Power

• After the bifurcation of the state, 70 per cent of the generation capacity of Bihar fell under the jurisdiction of the new state, Jharkhand.

• As of March 2009, Bihar had 1,970 MW of installed power capacity, of which 1,846.6 MW was contributed by state-owned thermal power plants, 73 MW was generated from hydel power sources, while 50.4 MW was generated by renewable sources.

• About 41 per cent of villages are electrified.

• Two thermal and six hydel power plants have been proposed to be set up with a total installed capacity of 4,146 MW.

• The state government has initiated reforms in the power sector and reorganisation of the state electricity board.



Power infrastructure is being developed; telecommunications

infrastructure is adequate

19

Telecommunications

• As of March 2009, Bihar had 3.2 million direct exchange lines (DEL), less than 4 per cent of the total exchange lines in the country.

• However, the number of DELs grew by about 40.8 per cent over the previous year, surpassing the national average growth of 12.6 per cent.

• Bihar has a teledensity of 22.2 per cent as compared to the national average of 36.9 per cent.

• As of March 2008, there were 11.8 million subscribers/connections, of which 10.8 million were wireless subscribers and 1 million were wireline subscribers. As of March 2009, there were 21.1 million subscribers/connections, of which 20.1 million were wireless subscribers and 1 million were wireline subscribers.

• The state has 9,057 post offices.


20

Bihar is aggressive on building industrial infrastructure ... (1/2)

Infrastructure Details

Export Promotion

Industrial Park (EPIP),

Hajipur

A 94-acre area is being developed, with an investment of US$ 2.6 million, as a

multi-product export processing zone by the Union Ministry of Commerce and

Industry, Government of India, and the Bihar government.

Food parks at Hajipur and

Begusarai

The food parks have been sanctioned by the Union Ministry of Food Processing

Industry, Government of India, and will include infrastructure such as cold storage,

cold chain, refrigerated vehicles, effluent treatment plants, etc.

Air cargo complex, Patna The complex is proposed to be set up adjacent to the Patna airport at an

investment of US$ 1.65 million; it is being promoted by the Bihar Industrial Area

Development Authority and the Airports Authority of India to facilitate exports

of fruits, vegetables, horticulture products, silk and other items.

Software technology parks

(STP)

Being set up on the campus of the New Government Polytechnic Complex in

Patna, the project involves payment of US$ 0.2 million as grants-in-aid and

provision of three acres of land for construction of 5,000 sq ft of built-up space

with requisite facilities; construction is in progress.



21

Bihar is aggressive on building industrial infrastructure ... (2/2)

Infrastructure Details

Inland Container

Depot, Sitalpur

One of the mega infrastructure project sanctioned and financed by

the Union Ministry of Commerce and Industry, Government of

India, at a projected cost of US$ 5.1 million to facilitate exports;

land acquisition is in process.

Its salient features include two full train-length rail lines, substantial

covered warehouse space for import and export cargo, container

space, etc.

Agro-export zone The zone is expected to cover 12 districts at a cost of US$ 2

million for exporting litchi, vegetables and honey; it is expected to

benefit 10,000 farmers.



22








Key nodal agencies in Bihar ... (1/2)

23

Industry Department,

Government of Bihar

• State-level nodal body under the single-window regime for investments of above

US$ 2.17 million; primary functions involve coordinating applications from

investors, and processing and facilitating the process of getting clearances from

various departments.

• Industry Department, headed by the Principal Secretary, supervises district industry

centres (DIC), industrial area development authorities and industrial premises in the

state.

District Industry

Centre (DIC)

• District-level nodal agency for investments below US$ 2.17 million.

• DIC to support entrepreneurs in identifying local resources, supply of raw materials

and equipment, arrangement of credit facilities, marketing, quality control, etc.

Bihar Industrial Area

Development

Authority (BIADA)

• BIADA develops infrastructure for industries in segments such as roads, drainage,

water, power, etc.

• Supports entrepreneurs in setting up industries and in availing incentives offered by

the government.

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM


24

Bihar State Finance

Corporation

• The main state-level institution that provides term lending facilities to

industrial entrepreneurs.

• The corporation has been revived to supplement the role of banks in

lending to industries.

Bihar State Electricity

Board (BSEB)

• The board is responsible for the synchronised development of

generation, transmission and distribution of power in the state.

Bihar State Pollution

Control Board

• The purpose of the organisation is prevention and control of pollution

through inspection of treatment plants, laying down standards,

conducting research and development, etc.

• Headquartered at Patna, the organisation has seven zonal offices.


Key nodal agencies in Bihar ... (1/2)


25

Industrial Policy, 2006 … (1/2)

Aims to achieve the following:

• Establish new industries and revive sick units, as far as practically possible

• Provide conducive environment to attract internal and foreign investment

• Bring in balanced development of the state

Key initiatives under this policy include the following:

• Stamp duty and registration fee exemption of 100 per cent; provision of reimbursement of value-added tax

• Reimbursement of project report preparation cost up to US$ 1,667

• Incentives on purchase of land and sheds, up to a maximum of US$ 33,300

• Incentive grant of up to 50 per cent for expenditure on plant and machinery for captive power generation units

• Electricity duty exemption for five years

• Exemption from luxury tax, electricity duty, conversion charge and market fee for seven years


Attractive investment climate through investment friendly and

sector specific policies ... (1/5)


26

Industrial Policy, 2006 … (2/2)

• Single-window clearance system

• Infrastructure Development Enabling Act, 2006, for development of infrastructure through private participation

• Enhancement of competitiveness of industrial units through pre- and post-production incentives

• Incentives to handloom sector industries

• Provision of self-certification to simplify inspection of factories

• Establishment of land bank to meet requirements of industries and development schemes

• To develop handicrafts, handloom, khadi, silk and village industries





27

Food Processing: Policy and Schemes

To address the infrastructure, technology, skills and marketing constraints being faced by rice,

maize, pulses, honey, makhana, fruits and vegetables, and other food processing units in the state by

facilitating the setting up of new food processing units, and also aid in expansion and upgradation of

existing units.

Scheme for food parks:

• Grant of US$ 3.25 million or up to 20 per cent of the total project cost, whichever is less, will

be given for setting up food parks.

Scheme for integrated development of the food processing sector:

• Grant up to 40 per cent of the project cost, subject to a maximum of US$ 2.17 million, for a

special purpose vehicle (SPV) in case of common cluster infrastructure and up to 35 per cent of

the project cost, subject to a maximum US$ 1.08 million, in case of an individual investor.

• For expansion and capacity increase of existing units, the benefits of the scheme will only be

available if the expansion project leads to capacity addition of at least 50 per cent.





28

Sugar Incentive Package

The package aims at reviving the sugar industry by building on the factor advantages of the state.

Key initiatives under the incentive package include the following:

• Re-imbursement of central excise duty on sugar for five years

• Exemption from purchase tax on sugarcane for five crushing years

• Exemption from stamp duty and registration fees for land transfer

• Subsidy of 10 per cent on capital investment or a maximum of US$ 2.2 million, whichever is less, on

machinery after completion of first year of commercial production

• Incentive package for distillery and ethanol as well as co-generation of power





29

Bihar Single Window Clearance Act, 2006

The act aims at speedy processing of clearances for implementation of industrial and other projects.

• Each district has a single-window clearance committee with the District Commissioner as the Chairman

and five other members; the committee receives applications for all clearances for setting up industrial

units, reviews and monitors the processing of applications, and informs the applicant of the deemed

approval date.

• Similar state-level committees constituted under the chairmanship of the Industrial Development

Commissioner; the State Investment Promotion Board (SIPB) has been notified as the empowered

committee. The state board reviews and monitors the disposal of applications by the district committees,

state-level committees and other authorities.

• The state government notifies nodal agencies at the state level, which are headed by the Director

Technical, Industry Department; at the district level, the DIC acts as the nodal agency. Nodal agencies to

provide secretarial support to district committees, state-level committees and SIPB, the empowered

committee.





Single-window clearance mechanism for speedy implementation

of industrial projects

• The Bihar Industrial Policy, 2006, has

revamped the single-window clearance

mechanism set up in the state through the

Bihar Single Window Clearance Act, 2006.

• The Industries Department of the state

and the DIC act as nodal agencies for

investments.

• Proposals for investment greater than US$

21.7 million are routed through Chief

Minister and the Cabinet for approval.

30

Investment

handled

Body Chairman Nodal agency

Between US$

2.17 million and

US$ 21.7 million

State-level

investment

promotion

board

Industries

Development

Commissioner

Industries

Development

(Udyog Mitra) —

state level

Below US$ 2.17

million

District-level

committee

District

Collector

DIC — district

level



Estimated time for approvals and agencies concerned

... (1/2)

31

List of approvals and clearances required Departments to be consulted Estimated time in days

Incorporation of company Registrar of companies N/A

Registration, Industrial Entrepreneurs

Memorandum (IEM), industrial licensesNodal agency (Industry Department) N/A

Allotment of land Bihar Industrial Area Development Authority

Seven to 21 days (up to 90

days for acquisition of non-

industrial land)

Permission for land useRevenue and Land Reforms Department,

Government of Bihar

30 days (45 days for

conversion of non-industrial

land for use)

Registration under Factories Act and

Boilers Act

Offices of Inspector of Factories, Inspector of

BoilersUp to 120 days

Site environmental approval, NOC and

consent under water and pollution control

acts

Bihar State Pollution Control Board and

Ministry Of Environment And Forests,

Government of Bihar

60 days

Approval of construction activity and

building plan

Urban Development and Housing Department,

Government of BiharSeven days



Estimated time for approvals and agencies concerned

... (2/2)

32

List of approvals and clearances

requiredDepartments to be consulted Estimated time in days

Sanction of power Bihar State Electricity Board Up to 30 days

Sanction of waterWater Resources Department,

Government of BiharUp to 30 days

Fire service clearanceState Fire Service Headquarters,

Government of BiharUp to 15 days

Registration under state‘s sales tax act,

and central and excise acts

Sales tax department, central and state

excise departmentsSeven days



33









34

Cost parameter Cost estimate Source

Industrial land (per acre)Government land: US$ 245,000 in

Hajipur; US$ 76,000 in Muzzaffarpur

Bihar Industrial Area

Development Authority

Office space rent (per sqft, per

month)20-35 cents Discussions with property dealers

Residential rent (2,000 sqft, per

month)US$ 145-280 Discussions with property dealers

Five-star hotel room (per

night)US$ 100-180 Leading hotels in the state

Commercial and industrial

electricity

Industrial

8.8-9.2 cents per kWh

Commercial

9.1-10.5 cents per kWh

Bihar State Electricity Board

COST OF DOING BUSINESS


35








Key industries that have developed because of policy thrust and

factor advantages

36

Low

High

High

Minerals

TourismTextiles/

Handlooms

Leather

Food

Processing

Sugar

Industry Attractiveness Matrix

Factor advantage

Po

licy t

hru

st

*Factor advantages include benefits due to geographical location and availability of factors such as talent

pool, natural resources and capital

KEY INDUSTRIES AND PLAYERS


Overview of food processing industry in Bihar

Overview

• Bihar is ideally placed to capitalise on food processing opportunities given its factor advantages; the state is one of the largest producers of vegetables in the country.

• The state is the leading producer of litchis, honey and makhanas, as well as the fourth-largest producer of mangoes in the country.

• Owing to its climatic conditions, Bihar has the potential to farm medicinal and herbal tea.

• Food processing is a priority sector for the state government; up to 40 per cent of the project cost for setting up food processing units is subsidised by the government.

37

Key Player

COMPFED



Key player in the food processing industry

38

COMPFED — Bihar

State Cooperative

Milk Producer‘s

Federation

• COMPFED is a success story of organised milk processing — it supports

members with interventions across technology, supply chain, marketing,

training, etc.

• In 2006–07, COMPFED procured 0.61 million litres of milk per day.



Overview

• Sugar plays a prominent role in Bihar‘s economy; the north of the state is climatically well-suited to producing good quality sugarcane with minimum inputs as compared to other states.

• About 250,000 hectares is under sugarcane production and Bihar produces about 336,000 tonnes of sugar, annually; it is estimated that about 500,000 farmers are engaged in sugarcane cultivation.

• Existing facilities run on old technologies, but many are expanding to tap the ethanol market.

• Tobacco is another important agro-based, cash crop; the availability of tendu leaves and cheap labour has helped Bihar to become the country's sixth-largest tobacco producing state.

39

Overview of agro-based industry in Bihar ... (1/2)

Key Players

K K Birla Group

ITC



40

K. K. Birla Group• The K K Birla Group‘s sugar company, Upper Ganges Sugar (UGSIL), has

two units in Bihar — Bharat Sugar Mills at Sidhwalia with a crushing

capacity of 5,500 tonnes/day and Hasanpur Sugar Mills at Hasanpur with

a crushing capacity of 3,000 tonnes/day.

• The Sidhwalia unit has a 18 MW co-generation power plant.

ITC• ITC is India‘s largest cigarette manufacturer and a leading diversified

business conglomerate.

• ITC has cigarette-manufacturing plants at Munger and Saharanpur in

Bihar; in 2007, ITC adopted the Munger district for development.


Overview of agro-based industry in Bihar ... (2/2)


Overview of manufacturing industry in Bihar ... (1/2)

Overview

• Consequent to the bifurcation of Bihar, the state lost most of its large units (mostly mining and engineering units) to Jharkhand.

• Currently, the state has leather, and textile and handloom industries as its prominent sectors, apart from a few engineering units.

• The state has 90 leather units and tanneries, both in the private sector as well as under the Bihar State Leather Industries Development Corporation.

• Petroleum remains a huge contributor to its GSDP as the state has one of the largest public sector refineries, that of Indian Oil Corporation (IOC).

41

Key Players

Bata Industries

Bharat Wagon and Engineering Company

Indian Oil Corporation (IOC)



Key players in manufacturing industry ... (2/2)

42

Bata Industries• Promoted by the Toronto-based Bata Shoes, Bata is India‘s largest manufacturer

and marketer of footwear products.

• The company has a tannery at Mokamehghat in Bihar and a leather footwear

factory at Bataganj in Patna.

Bharat Wagon and

Engineering Company

• Part of Bharat Bhari Udyog Nigam — a Government of India undertaking — the

Bharat Wagon and Engineering Company has a rich experience of over half a

century in heavy steel fabrication.

• It has two units at Mokama and Muzaffarpur, which are ISO 9001 certified for

manufacture of wagons; a third unit at Muzaffarpur manufactures gas cylinders.

Indian Oil Corporation• IOC is India‘s leading petroleum refinery and a Fortune 500 company. It has a

refinery at Barauni with an annual capacity of 6 million metric tonnes.

• Secondary processing facilities, such as a resid fluidised catalytic cracker, diesel

hydrotreating and a sulphur recovery unit, have been added to the main

refinery.

• The 498-km long Haldia-Barauni crude oil pipeline (HBCPL) receives crude oil

at the Haldia oil jetty and transports it to the Barauni Refinery.



Overview of tourism industry

• The state has a rich cultural heritage as it is associated with pilgrimages related to Buddha, Mahavir, Guru Gobind Singh, as well as historical monuments.

• Monuments of historical and religious significance present tremendous potential for attracting both domestic and foreign tourists.

• The state‘s tourism policy stresses on developing infrastructure and financing for tourism.

• Conservation of heritage sites, promotion of tour packages, publicity, etc., are also focus areas of the policy.

• The Bihar government is preparing a 20-year master plan for the future projection and development of tourism in the state.

• The state is also developing the Buddhist tourist circuit (Bodh-Gaya-Rajgir-Nalanda) with an assistance of US$ 4.6 million from the Central government.

43



Annexure

Socio-economic classification (SEC) of urban and rural households

4444

Source: Market Research Society of India

Education/Occupation

Illit

era

te

School up t

o four

year

s/ litera

te,

but

no form

al

schoolin

g

School up t

o fiv

eto

nin

e

year

s

SSC

/HSC

Cert

ific

ate c

ours

e,

but

not

grad

uat

e

Gra

duat

e/p

ost

gr

aduat

e

genera

l

Gra

duat

e/p

ost

gr

aduat

epro

fess

ional

Unskilled workers E2 E2 E1 D D D D

Skilled workers E2 E1 D C C B2 B2

Petty traders E2 D D C C B2 B2

Shop owners D D C B2 B1 A2 A2

Entrepreneurs: employee none D C B2 B1 A2 A2 A1

Entrepreneurs: employee < 10 C B2 B2 B1 A2 A1 A1

Entrepreneurs: employee > 10 B1 B1 A2 A2 A1 A1 A1

Self-employed professionals D D D B2 B1 A2 A1

Clerical/salesman D D D C B2 B1 B1

Supervisory level D D C C B2 B1 A2

Officers/executives: junior C C C B2 B1 A2 A2

Officer/executive: middle/senior B1 B1 B1 B1 A2 A1 A1

Urban SEC grid


4545

Source: Market Research Society of India

Rural SEC grid

Education

Type of house

PuccaSemi-pucca Kuccha

Illiterate R4 R4 R4

Literate but no formal school

R3 R4 R4

Up to fourth standard R3 R3 R4

Fifth to ninth standard R3 R3 R4

SSC/HSC R2 R3 R3

Some college but not graduate

R1 R2 R3

Graduate/post-graduate (general)

R1 R2 R3

Graduate/post-graduate (professional)

R1 R2 R3


Annexure

Socio-economic classification (SEC) of urban and rural households

46

Year INR equivalent of one US$

2000 46.6

2001 48.3

2002 48.0

2003 45.6

2004 43.7

2005 45.2

2006 45.0

2007 42.0

2008 40.2

2009 46.0

Annexure

Exchange rate



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