Bihar: A land of Immense
Opportunities for Agro and Food
Processing
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 around
150,000
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
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
State Investment promotion board (SIPB) :
Approved Projects
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
Resource Map
Potential for Agro and Food Processing
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
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
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
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 of
the 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
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
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
AGRICULTURE POTENTIAL IN BIHAR-ROAD
MAP 2007-08 2012-13
14.86 29.72
Rice Qtl/ha Qtl/ha
Maize 26.71 Qtl/ha 35.25 Qtl/ha
7.22 10.13
Pulses Qtl/ha Qtl/ha
12
10.32
Oil seeds Qtl/ha
Qtl/ha
Fruits 109.32 Qtl/ha 146.05 Qtl/ha
Vegetables 165.92 Qtl/ha 200.60 Qtl/ha
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 10
years (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 generating
set with no upper limit
25% VAT reimbursement for existing industries for 5 years
2. Abolishment of APMC Act
3. Bihar Single Window clearance Act 2006
SPECIAL SCHEMES FOR FOOD
PROCESSING SECTOR
1. Scheme for integrated development of food
processing sector
2. Scheme for Food Parks
Scheme for Integrated Development of Food Processing Sector
Scheme for Integrated Development of Food Processing Sector
Scheme for Integrated Development of Food Processing Sector
Scheme for Integrated Development of Food Processing
Sector
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
Release Of Assistance
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 of
orders 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 Food Parks
Scheme For Food Parks
Scheme For Food Parks
Scheme For Food Parks
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
Approved
Approved foodprojects under Food
processing Processing
projects
Schemes
Rice 4 Projects worth around Rs. 70 Crores given final approval
10 -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 approval
4Projects 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, 1
large farm-to-market proposal being considered
Other Food 1Project of Rs. 9.59 Crores given final approval
Processing 3 Projects worth around Rs. 200 Crores given in-principle
projects approval
ADB Project : Modernisation of
Agricultural Markets
APMC Act repealed by State Government
Aimed at modernisation of agricultural markets and
growth of food processing sector
Erstwhile APMC markets presently unregulated but
functional
95 such markets spread across the state
Total land area available more than 1300 Acres
Many such markets strategically located close to major cities
Modernisation of these markets to be focus of Agribusiness
Infrastructure Development Investment Program (AIDP) of
Asian Development Bank
Modernisation of Agricultural Markets
AIDP is flagship Program of Asian Development Bank in
Agriculture Sector in India and in line with the 11th Five Year
Plan objectives
Program aimed at funding critical infrastructure projects in
agricultural sector
Around 20 erstwhile major APMC mandis may be selected in
the first phase for developing them as part of integrated value
chains in PPP framework
Viability Gap Funding (VGF) as one of the key options for
funding along with State Government Schemes for these value
chains
IFC- Investment Climate Reform
Programme
Aimed at improvement in overall investment climate
Focus on Agricultural produces – specially maize and
sugarcane
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
IL&FS-CDI Ltd as Project Management Agency (PMA)
Preparation of techno-feasibility reports for various clusters
Identification of entrepreneurs & helping them in finalizing
the business plan
Preparation of project profiles alongwith entreprenuers for
submission to PAMC
Preparation of DPRs on behalf of entrepreneurs and
submission to PAMC with its recommendation
Assistance to entrepreneurs in accessing bank finance
Monitoring progress of projects and assisting PAMC in release
of eligible grants.
Thanks