Dr. Y.V.

Reddy

18th Jan. 2008

West Champaran

Nepal
East Champaran Sitamarhi Gopalganj

Madhubani
Supaul Araria

nj anga Kish

Siwan Uttar Pradesh Saran Bhojpur

Muzaffarpur
Darbhanga

rsa ha Sa

ura hep Mad

Buxar

Patna Nalanda
Sheikhpura

Rohtas

Jahanabad
d ba ga n

Va li ha is

Samastipur

Purnia Katihar

Be Khagaria gu sa rai

Lakhisarai

Mu ng er

Bhagalpur West Bengal

ua abh Bh

Nawada Gaya Jamui Jharkhand

Banka

a ur A

BASIC DATA
Total Area 94,163 Sq.Km. 9 38 101 535 8,471 8.29 4.32 crore 3.97 crore
3

Administrative Units Divisions Districts Sub Divisions Blocks Panchayats Population (as per 2001 census) crore Male Female

BASIC DATA
Literacy Rate Total Male Female Total Number of Registered SSI Units under Factories Act Sec. 2(m)(i) or m(ii) Under Section 85(i) or 85(ii) Total Number of un registered Units Number of Large & Medium Industries 2474 2620 4,63,741 266
4

47.53 60.32 33.57

BIHAR'S DEVELOPMENTAL CHALLENGES

3rd most populated state accounting for 1/7 of India's population below poverty line. In human development indices and also in many sectors, the State lags seriously behind the National trends a contributing factor to growing income gap across States. Very poor infrastructure. the

FOCUS FOR DEVELOPMENT OF BIHAR

Former President Dr. Kalam suggested 10 missions to make Bihar economically prosperous. Strategy to increase the per capita income from the existing Rs.6,700 (05-06) to Rs.35,000 by 2010. To create an investment friendly climate leading to employment avenues. Goal of 100% literacy and employment by the year 2015. Present human development index ranking of Bihar is 15 which should be improved.
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STRATEGY / KEY CHALLENGES

IMPROVING Infrastructure Human Capital Formation General Public Services Upgrading Quality of Educational Outcome through institutional reforms. Reform Initiatives

IMPRESSIVE GAINS
Female literacy rate. Control in the infant mortality rate. Access to improved water resource. Increase in rural income. Reduction in poverty level. Improved quality of public spending. More resources to local bodies

RECENT REFORMS GIVE A RAY OF HOPE TO BIHAR

A slew of implemented. fiscal & legislative reforms Silent transformation is taking place. First state to abolish Agriculture Product Marketing Control Act. Urban Land Ceiling Act repealed. Model Municipal Act adopted, 2007. Bihar Apartment Ownership Act, 2006 adopted. FRBM Act, 2006 enacted. Implementing Comprehensive Flood Management Information System to support flood control and management through early warning & emergency response system.
(Source : The World Bank in India, Sept.07)
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Recent Reforms Give a Ray of Hope to Bihar

Estimated expenditure for the two year period ending March 2008 - Rs. 23,277 crore as against Rs.20,614 crore in the last 10 years. Fiscal deficit is only 2.3% of the GSDP. No overdraft and no loan taken from market. For two successive years, full budget passed before March, 31st.

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Recent reforms Give a Ray of Hope to Bihar

For the year 2007 - 08, developmental expenditure target of Rs. 10,200 crore is nearly thrice the amount for the year 2004-05 Proposed expenditure for the current year for the road sector is R. 3,532 i.e. more than 46% of the amount for the last year. Increased expenditure for the Education Sector Substantial hike up in the expenditure for the Health sector (R. 1,127 Crore from Rs. 760 Crore for the year 2005-06)
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DEVELOPMENT BASED GOVERNANCE

Initiatives to remove the Inequality Traps. Reservation for women. Establishment of Gram Kachhari& appointment of Nyay Mitra. Constitution of Maha Dalit Commission & Commission for Extremely Backward Classes. Schemes for Mushahar Development. Constitution of Land Reforms Commission. Access to Infrastructure, Electricity, Water to the disadvantaged groups. Empowerment of Women.
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RECENT INITIATIVES
Concrete action investment to stimulate private

Single Window Clearance Act, 2006 Creation of State Investment Promotion Board. Passing of Infrastructure Development (Enabling) Act, 2006. FRBM Act, 2006 enacted. The Bihar Sugarcane (Regulation of supply & Purchase) Act, 1981amended is awaiting presidential ascent. Industrial Promotion Policy, 2006.
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Recent Initiatives
Policy for Institutions. setting up Higher Technical

Initiatives in PSU reforms. Provision for 50% reservation for women. Abolition of Agriculture Produce Market Act, 2006. 20 other important legislation enacted during 2006-07

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INITIATIVES FOR BUDHIST CIRCUIT

The four-laning of following corridors have been proposed through the Ministry of Tourism to the JBIC : Patna Jehanabad Gaya Bodh Gaya Dobhi (125 Km) Bakhtiarpur -BiharsharifNalandaRajgirGaya (128 Kms) Hajipur Vaishali Kesharia Khajuria (113 Km) Approx. Cost Rs. 2053.71 Crores Preliminary Project Report has been sent to JBIC. Patna Jehanabad Gaya Bodh Gaya Dobhi (NH-83) has also now been included for four-laning under NHDP-III by MOSRT&H.
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Four-Laning Projects
NHDP-I nearing completion NHDP-II East West Corridor in progress NHDP-III One corridor tendered other DPRs under finalisation Buddhist Circuit Buddhist Circuit Posed to JBIC PPRs submitted

Kesharia

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TOURISM
Birthplace of two religions Buddhism & Jainism and of the 10th Guru of the Sikhs Vision for exploiting the comparative Provide world class connectivity air connectivity, expressways Construction of 5 Star Hotels, Golf Courses, Yoga and Meditation Centres at Gaya, Bodh Gaya, Rajgir, Pawapuri & Vaishali market these as centres for peace and rejuvenation International University at Nalanda
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advantage

TOURISM
First Steps . Development of Airport of international standard International airport at Gaya -flights from Thailand etc land for extension being made available. International Golf Course (18 Holes) designed by PGA - Land acquired at Bodh Gaya Further Steps Development of Natural Hot Springs at Rajgir International Conventional Centre at Nalanda / Rajgir Consultant from WTO visiting to draw strategic plan
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AREAS OF CONCERN
Low Credit Deposit Ratio. Low branch coverage. C.D. Ratio. Poor Credit Plan Achievement for 2007-08. Low credit plan achievement in Agriculture, Industry, SSI Sector and other priority sectors. Coverage under education loan scheme still to pick up despite the direction of Honble Finance Minister, Govt. of India. Poor achievement in flood affected areas despite the RBI circular. Lack of response for rehabilitation of sick and closed industries.
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POOR CREDIT PLAN ACHIEVEMENT FOR 2006-07

Upto September, the achievement is only 27.40% of the total credit plan.
Year
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 (Up to Sept. 07)

Target
1745.46 1836.09 1900.34 2339.56 2697.48 3722.37 4879.67

Achievement
619.92 860.17 1587.62 2030.11 2174.03 2985.40 1263.69

%age
35.52 46.85 83.54 86.77 80.59 80.20 25.90
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LOW BRANCH COVERAGE

Bihar has one bank branch for a average population of 20,500 as against National average of 15,000, 9,000 in the case of Punjab, 11,000 in the case of Maharastra & 14,000 in the case of West Bengal.
Agency CBs RRBs Co-op Banks Total No. of Banks 33 5 4 42 No. of Branches 2218 1460 446 4124 Rural Branches 1259 1255 80 2594 Semi Urban 466 165 316 947 Urban 493 40 50 583
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Low Branch Coverage

Bihar needs 2,226 new branches to reach National average. 28 blocks in Bihar are having no commercial bank branches yet.

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SSI SECTOR
Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 (Up to Sept. 07) Target 369 418.38 513.70 542.12 545.21 665.08 913.06 Achievement 118.97 125.34 155.61 217.03 272.15 376.11 137.97 %age 32.16 29.96 30.29 40.03 49.92 56.55 15.11

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REHABILITATION OF SICK & CLOSED INDUSTRIES

28.3% of the SSI units (registered) are closed. The main reasons for sickness were reported as shortage of working capital & marketing problems. State Government have announced creation of a Corpus Fund and contribution; however, Commercial Banks including State Bank of India and other nationalised banks have not shown any interest. Bank should play a pro-active role in reviving the sick and closed units. 24

LOW CREDIT DEPOSIT RATIO

Bihars core strength lies in Agriculture, Handloom, Silk and Handicrafts. The immense potential for economic development in these sectors. However, the C.D. Ratio of Bihar is only around 33% against National average of 57%.
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
(Up to Sept. 07)
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Deposit 27591.00 30482.02 33815.00 35824.00 40294.88 46133.80 56341.87 53725.53

Credit 6396.00 6945.52 8089.00 9603.86 12031.20 14807.87 19048.42 17519.83

C.D. Ratio 23.00 21.00 25.00 27.00 29.86 32.10 33.81 32.61

OTHER AREAS OF CONCERN

For the flood affected areas, special credit plan with the following components amounting to Rs.792.42 cr. was prepared. Consumption loan Rural Housing KCC DIR Swarojgar Credit Cards, Artisan Credit Cards & SGSY etc. As against the actual achievement is only Rs.282.4 cr.

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DETAILS OF BLOCKS WITHOUT COMMERCIAL BANK BRANCH

Sl.
1 2 3 4 5 6 7

Name of the Lead Bank

Punjab National Bank

District
Nalanda, Buxar, Rohtas, Bhabhua, Gaya, Nawada, Lakhisarai

No. of Blocks
12 7 5 2 1 3 1
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Central Bank of W. Champaran, Saran (Chapra), India Gopalganj, Darbhanga State Bank of Madhepura, Purnia, Jamui India Bank of Baroda Sitamarhi, Seohar UCO Bank Canara Bank Bhagalpur Sheikhpura

Union Bank of Samastipur India

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