Beruflich Dokumente
Kultur Dokumente
TheSupportProgrammeforUrbanReforminBihar(SPUR)isasixyearspartnershipprojectbetweenthe
Govt. of Bihar and the Department for International development, U.K. Systematic local economic
development is one of the key components of SPUR. As a first step, City Business Plans have been
preparedforthe29projecttowns.
City Business Plan is an operational tool for mapping economic development opportunities of urban
areas, enabling effective interface between government agencies and business communities for
attracting investment and improving business climate of towns. It is aimed to identify skill gaps and
designandimplementmarketbasedskillandenterprisedevelopmentprograms.CBPsalsoprovideroad
maps for enterprise development, promote local business opportunities, and streamline the approval
processes for business start ups as well as to strengthen fiscal and financial capacities of urban local
bodies for improving local infrastructure. CBPs of 14 towns (Patna, Danapur, Phulwarisharif, Khagaul,
Ara, Chhapra, Biharsharif, Siwan, Hajipur, Muzaffarpur, Motihari, Bettiah, Darbhanga and Sitamarhi)
have been prepared and CBPs of 13 towns (Gaya, Bodhgaya, DehrionSone, Aurangabad, Nawada,
Sasaram,Purnea,Katihar,Saharsa,Kishanganj,Bhagalpur,Munger&Jamalpur)areinthefinalstagesof
preparation.
SPUR would like to place the City Business Plans for wider review and consultation. All queries/
suggestions/remarkscanbesenttoasinha.spur@ipeglobal.comwithsubjectlineCityBusinessPlan
for________(town).
(SPUR)
Final Report
Page 1
DISCLAIMER
The information in this Report has been prepared based on information collected from primary and
secondary sources. Wherever information was not readily available, reasonable assumptions have
been made, in good faith to draw meaningful inferences and these have been mentioned in the
respective sections of the report. All such assumptions are subject to further corroboration based
on availability of information. The information and analysis presented in this Report is not and does
not purport to be comprehensive or to have been independently verified. This report has been
prepared by Feedback Infrastructure Services (P) Ltd for its client, Urban Development and
Housing Department, Govt. of Bihar for its use for furthering the project. No external agency shall
use any part of this report without the prior permission from Urban Development and Housing
Department and Feedback Infrastructure Services (P) Ltd.
The information contained in this Final Report is strictly confidential for the clients use only and is
specific to the particular project under specific circumstances and is not considered replicable or
suitable for other projects. The information and the report are also subject to updating, expansion,
revision and amendment. It does not, and does not purport to, contain all the information that may
be required.
This Report includes certain statements, estimates, projections and forecasts. Such statements,
estimates, projections, targets and forecasts are based on the information provided by the
concerned authorities and reasonable assumptions made by the management and employees of
Feedback Infrastructure Services (P) Ltd. No representation or warranty is given as to the
reasonableness of estimates or the assumptions on which they may be based and nothing in this
Report is, or should be relied on as, a promise, representation or warranty.
Final Report
Page 2
Executive Summary
The City Profile: As per provisional reports of Census 2011 India, the population of Hajipur is
1,47,126, which makes it the 16th most populous city in Bihar. The male and female population is
78,561 (53.4%) and 68,565 (46.4%) respectively. The sex ratio of Hajipur city is 873 per 1000
males, which is lower than that of Bihar state (916) and amongst the lowest among the cities of
Bihar. The total literates in Hajipur city are 100,691 of which 57,537 are males while 43,154 are
females. The average literacy rate of Hajipur city is 79.26%, which is higher than the state literacy
rate of 63.8%, but again on the lower side amongst the cities. The male and female literacy rates are
73.23% (Bihar: 73.39%) and 62.93% (Bihar: 53.33%) respectively.
At present there are 39 wards in the Hajipur Municipal Corporation. Over the years the city has
harnessed the agricultural base to develop its industrial and tertiary sectors. The main working
population of Hajipur is 25% of the total population. There are three industrial areas in Hajipur, the
main one being the Hajipur Industrial Estate established by BIADA. There are 97 agro-based
industries in Hajipur and out of the 127 industries based in the Industrial Estate, a little more than
half are in operation.
The Municipal Corporation covers an area of 19.64 sq. kms. Unlike many cities in Bihar, Hajipur
does not show a corridor kind of development. The city has grown along the Muzaffarpur Road
with the River Gandhak and the Railway track acting as the outer limits of the city on Western side.
In the recent years development in the north eastern and south eastern sides of the city is being
observed. The areas beyond the Railway Line in the northern side of the city have seen growth of
new development nodes towards Vaishali and Muzaffarpur, which are growing at a rate that is
much higher than the city.
The entire Municipal Corporation has 98 employees from a total of 230 sanctioned posts, which
amounts to only 43% of the sanctioned strength. At an overall level, the Corporation had been able
to maintain a positive closing balance each year (2004-05 to 2009-10). Revenue through property
tax contributed 12% to the total revenue income of the Municipality. Both revenue account and
capital account has been accruing a substantial amount of surplus. Hajipur Municipality derived
18.0% (average 2008-09 to 2010-11) of its revenues from taxes and about 12% (average 200809 to 2010-11) from non-tax sources, with grants providing a further 68% (average 2008-09 to
2010-11) of the revenues which reflects higher dependency on the government funds.
Growth of Economic Activities in Vaishali District
Sector
2001-02
2002-03 2003-04
Final Report
2004-05
Primary Sector
50231
80688
52344
75578
Secondary Sector
10117
12354
11964
14171
Tertiary Sector
79205
83909
93727
102082
139553
176951
158035
191831
Page 3
Economic Profile of Vaishali-Hajipur Region: Like in other parts of urban Bihar, recent trends
indicate gradual growth of the Tertiary sector, with an ever decreasing agricultural base.
Primary Sector: The share of primary activities in the district domestic product has increased by
50% from 2001-02 to 2004-05, which is largely due to diversification in agriculture and the
increase in agricultural productivity, due to better technological and scientific inputs in the
cropping techniques and management. As per the Economic Survey Report 2010-11, Vaishali
district was ranked second in the production of vegetables, fruits and flowers in 2008-09. Banana,
mango, litchi, guava, wheat and maize are the main agricultural products of the district. A huge
annual loss, amounting to 25 to 40% of the total fruits and vegetables produced, occurs on account
of poor methods of harvesting and transport facilities. This is due to poor pre and post harvest
management practices and lack of availability of appropriate fruit and vegetable processing
industries (FVPI).
The average annual production of fish in the state is nearly 2.61 lakh tonnes against the annual
demand of 4.56 lakh tonnes. Fish farming & development of sweet prawn and shrimp farming
practice, which fetch high value in international markets, have good potential in Hajipur. However,
siltation of ponds, availability of fish seed and adequate, suitable preservation infrastructure and
outdated technology are serious impediments to the development of this sector. The district stands
at 20th position when compared against average milk yield, and at 19th position when compared
average milk density (Lit /per day /sq km) of all districts (National Dairy Development Board, April
2008). The challenges in the dairy sector are very poor coverage of veterinary and artificial
insemination services and paucity of cattle feed and its production.
Secondary Sector: With three industrial areas in Hajipur and its proximity to Patna, industry is one
of the priority sectors in the economy of the Vaishali-Hajipur region. However, it needs to be
regularized and linked to lucrative markets in a sustainable manner.
Growth of Secondary Sector in Vaishali District
Sector
Registered MFG.
Un regd. MFG.
Manufacturing
(Secondary Sector)
2001-02
2572
7545
2002-03
4242
8112
2003-04
2828
9137
2004-05
4397
9774
12354
11964
14171
MFG.
10117
Source: - Planning commission website; State District Domestic Product Bihar 2001 to 2005; Directorate of statistics and
Evaluation, Govt. of Bihar.
The town has some industrial development. A few manufacturing units like a medicine
manufacturing units and sugar mills are present. The industrial sector in Vaishali is dependent on
micro and artisan units. The micro units have almost doubled from 2007-08 to 2008-09. The
artisan units also increased in 2007-08, but growth stopped in 2008-09. There has been no growth
in the tiny industry since 2006 which had 114 units.
Final Report
Page 4
Spice
Manufacturing
2%
Pulses Mill
1%
Wheat
Production,
Grinding
6%
Dalmot,
Namkeen, Sevai
Manufacturing
6%
Sattu,Besan
production
3%
Chayavan
Production
2%
Oil Production
21%
Potato
Preservation
10%
Achar
Manufacturing
26%
The two technical institutes set up here are Central Institute of Plastic Engineering Technology
(CIPET) and National Institute of Pharmaceutical Education & Research (NIPER). The location
of these teaching institutions will definitely add to the industrial development of Vaishali-Hajipur
Region and in fact that of the entire state. The type of units here are varied - pharma and plastic,
food processing units like Britannia biscuits, bakeries, juice and soft drinks, fire-fighting vehicles
and accessories, poultry feed, PVC ropes and twine, packing materials, inverter and stabilizer
manufacture and so on. An Agri Export Zone has been established under APEDA, GoI for the export
of litchis in the Muzaffarpur-Vaishali litchi growing region. This is facing some infrastructural issues
which have to be sorted out before it can take off successfully.
Growth of Tertiary Sector in District Vaishali
Sector
Electricity, Gas & W.supply
Construction
Trade, Hotels & Restaurants
Railways
Transport by other means
Storage
Communication
Banking & Insurance
Real, Ownership of Dwel. B.Ser.& Legal
Public Administration
Other Services
Tertiary Sector
Final Report
200102
2887
7894
6135
3720
3089
118
2553
7423
6076
12080
27230
79205
200203
2899
9577
7448
3937
3565
140
2775
7389
6786
10866
28527
83909
200304
3593
9966
8582
4301
3954
123
3114
7842
7874
13040
31338
93727
200405
4307
12359
9453
4784
4873
148
3463
7891
8555
13561
32688
102082
Page 5
Tertiary Sector: The most robust service sectors in Hajipur presently are construction, trade and
hospitality and public administration sectors. This could be attributed to the fact that Hajipur
Industrial Estate and EPIP have several upcoming industries which involve the building up of
industrial sites and housing colonies, which in turn result in the proliferation of other support
services like trade and hospitality.
Issues and Challenges to Economic Growth
Micro Credit practices in Vaishali-Hajipur region are not well established. This is often a
deterring factor for growth of local, small and household industries. So these require deepening
and increased outreach.
Low Crop Yield: Even though the region is rich in soil and water resources, its average yields of
Rice, Wheat, Maize and Sugarcane are only about 32, 44, 40 and 38 percent of the potential
yields, respectively. This is due to the lack of scientific cropping methods throughout the crop
cycle.
Limited support infrastructure for storage/processing
Poor Animal Husbandry practices: The cross bred cattle population is very low, which
impacts the milk production. The present quality and number of cattle are insufficient as
compared to the demand for milk and milk products. Fish & Poultry products are imported
from other districts to cater to the vast & growing demand.
Poor infrastructural facilities in commercial and residential areas, as a support for local
economic developmental activities.
Lack of trained manpower for processing, storage, marketing and branding
Perceived lack of positive governmental response to entrepreneurial ventures
Perceived lack of ease in business approval processes and transactions
Poor policy support for PPPs in Infrastructure development for Agro based Industries,
contract farming etc.
Larger and better developed urban agglomerations near Hajipur like Patna and
Muzaffarpur, tend to dwarf the town and resources are diverted to those centres.
No APMC act: Because the traders activities are now completely unregulated, non-transparent
transactions and price collusions are even more pronounced than they were under the APMC
system. Because of the lack of alternative marketing channels, small-scale farmers have no
choice but to utilize the current trader-dominated marketing system despite the rampant
exploitation.
Government schemes do not seem to have had the desired impact on productivity,
technology and marketability.
Investor confidence has not yet been generated in the region and state.
Negative Attitude of Financial Institutions: Though savings are high in Vaishali, the credit
deposit ratio is only 27% which is extremely poor. The local citizens have been victims of bank
apathy, as far as granting of loans is concerned.
Final Report
Page 6
Supply side Linkages:- The rich soil of the region make it ideal for production of vast range of
grains, vegetables and flowers. Presence of water bodies create potential for raising fish
culture. Sizeable bovine population in the region ensures sufficient availability of milk for the
dairy processing industry.
Demand side Linkages:- Hajipur is well connected to the urban centre of Patna on one side
and has strong connectivity through national highways to other regions of economic
importance.
The Processed Food Industry within agriculture and allied sector is divided into the following broad
segments:
Primary Processed Food which includes products such as packaged milk, unbranded edible
grains, milled rice, flour, pulses, spices, and salt sold in packaged or non-packaged forms.
Value-added Processed Food which includes products such as biscuits, bread, pickles, jams,
jellies, chips and other snacks, sauces, crushes, syrups, tinned items, dehydrated food products,
herbal products, processed dairy products (ghee, paneer, cheese, butter), processed poultry,
processed fish products, confectionery, chocolates and alcoholic and non-alcoholic beverages.
Establishment of a Multi-Product Food Park (MPFP): In view of the linkages described above
and the primary and secondary processed foods in demand, the enhanced and varied agricultural
productivity of Vaishali-Hajipur region and its close proximity to large terminal markets, as well as
many other reasons, make it an appropriate location for the development of an MPFP. The GoB, in
their vision for the Food Processing sector in Bihar has already stated their plan to establish a Food
Park in the Muzaffarpur Vaishali region. Though this proposed Food Park may be located in the
Hajipur Industrial Estate, the EPIP or the AEZ or wherever else the State and local administration
can provide land for it in the Vaishali-Hajipur region, it will provide employment to the Hajipur
population, provided they are suitably skilled. The Field Collection and Primary Processing Centres
which will feed such a Facility will be located in the blocks and village areas, whereas the MPFP can
be located in the BIADA Industrial Estate in Hajipur, depending on land availability. A network of
Agri Clinics, Agri Business Centre/s and Preservation Infrastructure will have to be established and
integrated with the MPFP as a support to this complex.
Final Report
Page 7
Source: Mega Food park Scheme, MoFPI, GoI and Feedback Analysis
Agri-Clinics and Agri Business Centres (ABCs): The high agricultural productivity of this region
can be further enhanced to make the farming business more profitable for the cultivators. AgriClinics & ABCs are envisaged to provide expert advice and services to farmers on various
technologies which would enhance productivity of crops/animals and ensure increased income to
farmers. The ATMA centre in Hajipur can be a facilitating agency for the agri-preneurs operating in
this field of business. The prospective agri businesses that have a potential and that can be
promoted in this region are:
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Page 8
Promotion of Organic Farming, Floriculture, Nurseries & Ploy/Green Houses: With the
establishment of the MPFP, it becomes essential to promote other livelihoods and support services
which will bolster this industry like Floriculture, Horticulture, Nurseries and Organic Farming.
These activities are already a part of the National Horticulture Missions plans in the state and
therefore funds are available for the same it is just a question of accessing them.
Organic farming has been taken up as one of the priority initiatives by the state government
with a sum of Rs. 255 crore being sanctioned for organic farming promotion within a span of
five years. Organic and vermicompost fertilizers can be made available to farmers this can be
linked to SHG activity. Training on organic farming can be provided to farmers this can be
linked to skill-development providers and NGOs. Seed replacement programs can be organized
to distribute quality seeds among the farmers and marketing can be done through appropriate
channels established in the ABCs. The agri-clinic network and work of ATMA and KVK in
Hajipur can be made largely responsible for promoting the above strategies.
Floriculture: The Vaishali-Hajipur region has the 2nd rank in the state for flower production @
486.29 tns. (2008-09) with the production of marigold, jasmine and tuberoses being on the
higher side as compared to that in other districts. Technology transfer needs to be organsied by
the agri-clinic network, which should educate the producers about suitable techniques to
optimize quality of flower production. In order to ensure an organized floral industry in
Vaishali-Hajipur region, floral vending zones, as a market place for selling the floral produce,
should be established with the help of local private sector.
Nurseries & Ploy/Green Houses: Under the National Horticulture Mission Plan for 2010-11,
there is a plan to establish one nursery in Hajipur at a cost of Rs. 11.68 lakhs. The saplings /
seedlings sold here should be in keeping with the varieties of plants which are agro-climatically
suited for this area i.e. mango, litchi, banana, betel vine, cauliflower, brinjal, marigold, jasmine,
tuberose tubers and so on. Cultivation of vegetables/flowers under controlled conditions can
also be established by constructing Hi-Tech and Normal green houses, polyhouse/plastic
tunnel/ shade nets in Vaishali district to produce vegetable/flowers for sale during the off
season. This has already been implemented by Bharat Seeds and could be promoted as an
economic opportunity in this region. The NHM Plan has targeted to establish 5 such green
houses in 2010-11 with an outlay of Rs. 11.688 lakhs.
Final Report
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Dairy & Animal Husbandry A milk processing plant is being established in Hajipur which will
supply processed milk to COMPFED, which is branding milk products from Bihar by the name of
Sudha. Besides, there is scope for development of milk powder plant and factory for other milk
based products. In order to support dairy processing industry in Hajipur, appropriate and robust
backward and forward linkages have to be forged, an artificial insemination centre should be
established in Hajipur for introducing high quality breeds of cattle in the region and requisite
facilities should be provided to support animal husbandry such as veterinary clinics. Cattle and
poultry feed plants can also be viable business enterprises based on the development of this sector.
Fish waste from the pisciculture and aquaculture units in the region, can supply raw material to
these feed plants. In the District Development Plan of Vaishali (2011-12), the authorities had
planned to invest Rs. 1670.30 lakhs in dairy development.
Pisciculture (Fish Culture) & AquacultureCurrently fish production in the Vaishali-Hajipur
region forms only 3.16% of the total fish production of the state. Fish culture can promote
employment opportunities and become a source of income to small & marginal farmers. The
strategies for this are: augmentation of the production capacity of fish seeds by establishment of a
local seed production centre, brood banks and portable hatcheries on the lines of those being
promoted in Orissa, desiltation and conservation of water bodies like ponds and tanks through the
NREGA scheme, construction of inlet and outlet for easier passage in mauns for culture-based
fisheries, provision of critical infrastructure for post-harvest marketing including common
collection centres, improved cold chains, means of transport and linkages, establishing a proper fish
vending zone for trading and bringing together the bulk buyers and suppliers of fish in the district,
and developing institutional frameworks for establishment and facilitation of marketing linkages
and capacity building.
Apiary & Honey Production - Honey production, especially litchi honey, can become a unique
product of Vaishali district due to its strength of production of good quality litchi. Honey production
could benefit from greater efforts to build an industrial cluster and by using better techniques.
Cluster areas should be demarcated where an integrated honey value chain can be developed, i.e.
right from beekeeping to processing of honey to packaging and transporting facilities. This will lead
to an agglomeration of similar industries in Hajipur creating an organized supply system of honey.
A honey processing plant has been proposed in Hajipur region this will assist in aggregation
facilities and developing uniform standards this can be located within the proposed MPFP. Place
branding is an important component of strategy to establish Hajipur as a premium honey
production centre. Public sector initiatives such as formation of beekeeping associations should be
launched to mobilize beekeepers, process and market branded honey of Vaishali. Adequate
financial support in terms of access to micro finance, formation of self help groups and provision of
subsidies should be provided to the beekeepers. Lease schemes can be set up for the equipment and
significant capacity building needs to be done. Pricing and retained margin is a key element of this
effort.
Promotion of Craft/Artisan Sector: Hajipur has traditional artisans who make products using
sikki grass, banana fiber and wood but do not have a commercially sustainable size of operation.
The strategies for this sectors are: Identification of craft clusters, appointing a private organization
Final Report
Page 10
or an SPV which will act as an apex organization to support this sector in the region, formation and
support of handicraft SHGs, formal and legal registration of handicraft co-operatives/ SHGs/
federations, establishing of marketing linkages, support with training, establishing a cadre of
master trainers to promote the crafts and modern design inputs from market-based and premier
design agencies. Apex agencies like the Export Promotion Council (EPCH) sponsored by the
Ministry of Textiles (GoI), All India Artisans and Craftworkers Welfare Association (Craftmark) and
the State agencies like the Industries Department which houses the Bihar State Handloom,
Powerloom & Handicraft Corporation should promote these handicrafts in a focused and integrated
manner so that finances and incentives also are utilized in the most optimal way. An integrated
approach to developing the sector will ensure that there is vertical integration of the components of
value chain right from supply of raw material to enhancing and managing the processing activity to
the sale of the finished product to end users.
Tourism & Hospitality Sector - Vaishali falls under Buddhist, Ramayana and Sufi tourist circuit
promoted by Bihar State Tourism Development Corporation. As such, it does have potential as a
tourist destination provided it is taken up is a focused manner and PPP opportunities are offered to
entrepreneurs for developing this sector. The recommendations for this sector are: conservation of
historic sites and improvement of on-site facilities, publicizing and promoting it as a tourist
destination, development of some tourist infrastructure like a budget hotel, a tourist shopping
complex including the sale of local arts and crafts, a spa-wellness-spirituality- nature cure centre,
providing water sports, an amusement park and ecological tours on the litchi and banana
plantations, creation of a trained tourist guide cadre and transport linkages. With the boost in
tourism, the hospitality sector will have to be necessarily developed in tandem. Many of the
strategies proposed above could be effected using the PPP route.
Alternative/ Renewable Energy - The crop residue and farm wastes like husk of rice and wheat,
seed coats of oil seeds, stalks and sticks of fibre crops, pulp and wastes of plantation crops, peelings,
pulp and stalks of fruits and vegetables are the raw materials used as input for direct cogeneration
of electricity through this process. There is a wealth of this kind of raw material available in the
Vaishali-Hajipur region, which could be used for this purpose. The SIPB has already approved the
setting up of one solar photo-voltaic battery plant and one 10 MW biomass based power plant in
the region. The strategies for promoting this industry could be as follows;
The value chain will have to be studied in details so that backward and forward Linkages can be
strung seamlessly together to ensure a smooth production process throughout the year. The
power produced by these plants should prove more than adequate to make up the short fall of
power faced by the industries based in Hajipur industrial areas. Therefore, there should be no
marketing problem.
Capacity-building efforts will have to be undertaken by the administration and the EDC to be
established in the city, to train suitable persons in the skills required for such ventures i.e.
installation, manufacturing processes & technology, marketing & sales, operation &
maintenance.
Final Report
Page 11
Incentives have already been provided by the Central and State governments for the
development of biomass plants in Bihar. The authorities should try to fastrack the approval
process for projects that come for biomass power generation.
The power buy back option should be given to the players which set up biomass-based power
plants in this region. This will reduce market risk for the players and encourage more number
of players to enter this sector in the town.
Easy credit should be arranged for the new establishments in this sector.
Various methods of communication should be used by the local authorities to increase
awareness of this sector, including information on how to setup a new biomass based power
plant in the area, tax and other benefits, trends of the industry and so on.
Specialty Hospitals Polyclinics, Diagnostic Labs, Telemedicine and Health Insurance Services
through PPP: Hajipur already has a healthcare service sector which is limited, unregulated and
often without standardized health care service delivery. Specialty hospital and diagnostic facilities
by private players like Fortis, Dr Lals Path Labs and other reputed private players will not only
foster quality of internal standards but also create employment opportunities, contribute to the
economy and control unregulated growth of sub standard health facilities. Feasibility studies
should be conducted prior to establishing of such facilities in the region. The 12th Plan may see the
launch of the National Urban Health Mission (NUHM), which will give this sector a much-needed
boost by promoting partnerships and enabling the environment for improving healthcare services
in urban areas.
Vocational Education & Skill Development: There are two ITIs in Hajipur, but they are limited in
their course offerings to electrical and fabrication trades. With the introduction of new avenues of
economic development like biomass energy production, urban agriculture, organic and contract
farming, agri-clinics, agri business centres, food-processing industries, healthcare, hospitality,
tourism and so on, it is of vital importance that the capacity of the local populace be developed in
these businesses, trades and services. This will call for the establishment of vocational education,
skill and entrepreneurial development centres which are market-linked and output-based, in and
around Hajipur. This can be done on a PPP basis in the city. The resources and funds under the
National and State Skill Development Missions, National Rural Livelihood Mission (NRLM), MSME
and the MoLE can be accessed for this purpose, depending on the sector and the target population
involved. However, this will have to be planned in a holistic and integrated manner so that efforts
are not duplicated.
Support Interventions for Unorganized Sector
A Feasibility Study needs to be undertaken to identify the major vending zone, type of industry
and physical area available without interrupting public utility of the urban space. One possible
location for this has been identified by stakeholders as the vacant railway land next to
Chauri Bazaar.
These vendors can be formalized by issuing them license for the space allocated and
providing supporting facilities (Solid Waste Management, Sanitation). If the allocation of a
separate area is not feasible, another manner to support them could be of setting up of weekly
Final Report
Page 12
bazaars in different parts of city in an organized manner with support from the Hajipur
Municipal Corporation.
Under the SJSRY, all towns are supposed to have a cell for Urban Poverty Eradication
functioning under DUDA. The ULB should appoint suitable persons in this cell and strengthen
their capacities to perform the role expected of them.
Strengthening of existing community-based groups like NHGs, NHCs, RCV & CDS through
trainings on rules and regulations for conducting group activities could be done through local
NGOs under the SJSRY.
Under the USEP component of SJSRY, assistance is given to groups of urban poor women for
setting up gainful self-employment ventures under the sub-scheme called" The Scheme for
Development of Women and Children in the Urban Areas (DWCUA)". These can be linked to
micro-enterprises required for providing backward linkages for the industrial estate units and
other established MEs like artisanal activities, food-processing, packaging, vermicomposting,
organic farming, floriculture and so on.
Skill Development of CDS/TCG/ SHG-s and facilitation for enterprise development and the
MEs/ skills that they require to be trained in. This can be done after the Training Needs
Assessment is done prior to establishing the EDC.
Financial Support in the form of loans and subsidies are required by persons in the
unorganized sector. The Central Bank of India is the lead bank for Hajipur and as such, it is their
duty to see to it that all loan proposals from disadvantaged groups are given due priority and
consideration. It is suggested that the ULB monitors such cases on a regular basis through the
LED Unit to be established. Capacity building and change management workshops or courses
aimed at bringing about attitudinal and behavior change in the staff of financial institutions
should be an essential part of their training curriculum.
Introduction of high value crops In order to promote production of non traditional crops in
the region, agri business centres supported by agri clinics need to be opened which provide
farmers access to new seeds, farming methods of new crops etc. Training and capacity building
of agriculturists in the farming of these new crops should be promoted through KVKs and
ATMAs.
Final Report
Page 13
plants. Improved and more scientific methods of farming and an appropriate level of
mechanization without harming labour interests are also required. Internet-based information
systems like e-chaupal should be established towards this end.
Greater Access to credit to famers and small entrepreneurs: There is urgent need to create
a complete ecosystem for credit on easy terms to marginal farmers and small and micro
entrepreneurs, which will assure them regular and timely working capital, while taking into
account the risks faced by them. The most vital element in this is changing the mind-sets of
bank personnel in the sanction of such loans.
Supporting infrastructure to improve business linkages and prevent produce loss: The
development and strengthening of region-specific supply chain infrastructure and linkage for
prevention of losses in the agricultural sector is essential for better business. The district has
very good potential for food-processing industries. However, storage and preservation systems
are inadequate. Hence, the strengthening of preservation infrastructure and food processing
units would meet the bi-pronged strategy of effective and economic use of local produce on the
one hand and create employment at the urban level on the other.
Alternative to Repealed APMC Act: - The Department of Agriculture, GoB needs to remedy the
exploitative situation that has arisen due to de-regulation of agricultural markets because of the
repeal of the APMC Act. The GoB will have to remedy this situation by giving due consideration
to the proposal of the Committee headed by Shri R.C.A. Jain to upgrade marketing of produce.
The establishment of a terminal market near Patna at Bihta is a step in this direction. A suitable
model of contract farming specific to crops can be adopted to solve the problems of small and
marginal farmers.
Food processing Sector: The Directorate of Food Processing has been formed in Bihar and has
also prepared a Vision Document for this sector. When the Food Processing Policy of Bihar is
formulated and implemented, there should be significant progress in this sector. At present,
there are two schemes under this Directorate - Scheme for integrated development of food
processing sector and Scheme for Food Parks, which have just started receiving some attention.
The Department of Industry and MSME will require to examine the synergies and linkages of
the Food Processing Sector with local business development so that the benefits accrue to the
urban poor also in an equitable manner. This can be especially explored with regard to storage
and maintaining the cold chain, clustering of food processing MEs around products specific to
the area i.e. establishment of the Multi-Product Food Park in the Hajipur-Vaishali Region.
Page 14
improving the business climate. This task Force will bring civil society, business persons and local
public authorities onto a single platform for effective networking and co-ordination of the CBP rollout. The indicative list of members on this Task Force will be as follows:
However, this will be an interim institutional arrangement, until such time as the LED Units at State
and ULB Level are constituted. The Urban Development & Housing Department, Government of
Bihar has recommended the following Institutional Structure for development of local economies
at State and ULB Level:
Final Report
Page 15
If for some reason, this recommendation is not feasible, the alternative suggested is to populate
strengthen the Urban Poverty Eradication Cell proposed under the SJSRY Scheme and have a
trained LED Consultant attached to this Cell, who will be able to facilitate the CBP along with the
concerned departments and agencies at ULB, District and State Level.
Final Report
Page 16
Table of Contents
DISCLAIMER .............................................................................................................................................................................. 2
Executive Summary ................................................................................................................................................................ 3
Table of Contents ................................................................................................................................................................... 17
List of Tables............................................................................................................................................................................ 22
List of Figures .......................................................................................................................................................................... 24
CHAPTER 1:- BACKGROUND & APPROACH TOWARDS LOCAL ECONOMIC DEVELOPMENT ............... 29
1.1.
1.1.1.
1.1.2.
1.1.3.
1.2.
1.3.
1.4.
1.5.
Tasks Involved..................................................................................................................................................... 36
2.2
2.3
2.4
2.5
2.6
2.6.1
State Level.................................................................................................................................................... 56
2.6.2
3.2
3.2.1
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Page 17
3.2.2
3.2.3
3.3
3.4
3.4.1
3.4.2
3.4.3
3.4.4
3.5
3.6
Recommendations ............................................................................................................................................. 78
4.1.1
4.1.2
Business Concerns of Private Sector Investments in General for Vaishali (Perception
Analysis)83
4.1.1
4.2
Value Chain & Demand Analysis for Food Processing Sector ..................................................... 88
4.2.2
4.2.3
Value Chain & Demand Analysis for Grain Milling Sector ............................................................ 92
4.2.4
Value Chain & Demand Analysis for Fish Processing Industry .................................................. 93
4.2.5
Value Chain & Demand Analysis for Biomass-based Energy Generation .............................. 95
4.3
4.4
4.5
4.5.1
4.5.1.2
4.5.1.3
4.5.2
Promotion of Organic Farming, Floriculture, Nurseries & Poly/Green Houses ............... 109
4.5.3
4.5.4
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Page 18
4.5.5
4.5.6
4.5.7
4.5.7.1
4.5.7.2
4.5.7.3
4.5.7.4
4.5.8
4.5.8.1
4.5.8.2
4.5.8.3
4.5.8.4
4.5.8.5
4.5.8.6
4.5.9
4.5.10
Promotion of Health, Education & Skill Development through PPP ..................................... 128
4.5.11
4.6
5.1.1
5.1.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.1.8
5.1.9
5.1.10
Urban infrastructure Development Scheme for Small & Medium Towns (UIDSSMT) .. 143
5.1.11
5.2
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Page 19
6.1.1
6.1.2
6.2
Taxes & other Costs Associated with Business Operations ........................................................... 157
6.2.1
6.2.2
6.2.3
6.3
7.2
7.3
7.3.1
7.3.2
7.3.3
7.3.4
Concessions................................................................................................................................................... 171
7.4
7.5
8.1.1
8.1.2
8.1.3
8.1.4
8.1.5
8.1.6
8.2
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Page 20
8.3
8.4
8.5
Capacity Building / Skill Development for State/ ULB Level Functionaries and Elected
Representatives .............................................................................................................................................................. 188
8.6
PPP and Human Capital Development Interventions for LED in Hajipur ................................ 188
8.7
8.7.1
8.7.2
8.7.3
10.2
11.1.1
11.2
ANNEXURE:........................................................................................................................................................................... 208
Annexure 1: List of Stakeholders ............................................................................................................................ 208
Annexure 2: Stakeholder Workshop Analysis and Suggestions ............................................................. 210
Annexure 3: Investments as per SIPB ................................................................................................................... 213
Annexure 5: Comments on Draft CBP Arrah and the changes made ........................................................ 222
Final Report
Page 21
List of Tables
Table 1 : Scores Adopted for Potentiality Index ....................................................................................................... 35
Table 2: Administrative Profile of Vaishali District ........................................................................................ 41
Table 3: Vaishali District Indicators (Source: Distt Dev Plan & Census 2001)............................................. 41
Table 4: GDDP & NDDP at 1999-2000 Prices............................................................................................................. 42
Table 5: Workforce Participation Rate in Vaishali (in percentages) ..................................................... 43
Table 6: Economic Establishments in Vaishali District.......................................................................................... 43
Table 7: Area and Production of Major Crops (2007-08 & 2008-09 Last estim.) ....................................... 44
Table 8: Productivity of Major Crops (2007-08 & 2008-09 Last estim.) Yield (kg/ha) ........................... 44
Table 9: Livestock Wealth in Bihar (2003) (Figures in '000) ..................................................................... 45
Table 10: Production of fish and fish seeds for the year 2009-10 ........................................................... 45
Table 11: Status of growth of Industrial Units .................................................................................................... 45
Table 12: Status of units in Hajipur Industrial Estate ............................................................................................ 46
Table 13: Types of Industries present in Hajipur Industrial Estate ................................................................. 46
Table 14: Agro-based Enterprises in Vaishali District (Source: DIC Data) .................................................... 46
Table 15: Sector-wise investments approved for Vaishali-Hajipur region by SIPB .................................. 53
Table 16: Existing Land Use Distribution of Hajipur .............................................................................................. 54
Table 17: Summary of Finances of Hajipur Municipal Corporation ................................................................. 60
Table 18 : Growth of Economic Activities in District Vaishali ............................................................................ 63
Table 19 : Growth of Primary Sector in District Vaishali ...................................................................................... 64
Table 20 : Production volumes of Major commodities of Primary Sector in District Vaishali .............. 65
Table 21 : Productivity of Major Crops in Bihar in w.r.t India ................................................................... 66
Table 22 : Growth of Secondary Sector in District Vaishali ................................................................................. 67
Table 23 : Growth of Tertiary Sector in District Vaishali ...................................................................................... 68
Table 24: Category-wise Classification of Workforce in Hajipur ....................................................................... 70
Table 25 : Ranking of various Cities in terms of Business Climate, 2008 ...................................................... 82
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Page 22
Page 23
Table 51: Major Steps in Registering Property and Land .................................................................................. 159
Table 52: Other Costs associated with Business Operations in Vaishali-Hajipur region ..................... 160
Table 53: Classification of PPP options ............................................................................................................... 175
Table 54: LED Principles and their implications for the HCD activities under the CBP ........................ 179
Table 55: Training / Capacity Building/ Skill Development in different sectors and job competencies
.................................................................................................................................................................................................... 182
Table 56: Operational Plan for Implementation of City/Municipal Business Plan ................................. 192
Table 49: Details for Relevant Government Departments/Public Sector Banks ..................................... 199
Table 50: Details for Business Enterprises/association/Organizations/Federation............................. 201
List of Figures
Figure 1 : Methodology adopted for City Business Planning Process.............................................................. 34
Figure 2: City Business Planning Process Key Stakeholders Interviews ................................................... 37
Figure 3: Types of Agro-based Enterprises in Vaishali District (Source: DIC Data) .................................. 47
Figure 4: Types of Enterprises in Vaishali-Hajipur region ................................................................................... 49
Figure 5: Growth Directions Hajipur .................................................................................................................... 57
Figure 6: Governance Structure - HMC.................................................................................................................... 61
Figure 7 : Growth of Economic Activities in Vaishali District (2001-05) ....................................................... 63
Figure 8 : Growth of Primary Sector in District Vaishali ...................................................................................... 65
Figure 9: Growth of Secondary Sector in District Vaishali ................................................................................... 67
Figure 10: Growth of Tertiary Sector in District Vaishali ..................................................................................... 69
Figure 11: Honey-Producing Districts of Bihar ......................................................................................................... 72
Figure 12: Business Linkage for Agriculture & Allied Sectors ............................................................................ 74
Figure 13: Proposed Investments approved by SIPB in Hajipur, Vaishali ..................................................... 81
Figure 14: Supply Chain for F&V and Agro based Marketing .............................................................................. 88
Figure 15: Value Chain for Fruit & Vegetable and Other Agro based Processing ....................................... 88
Figure 16: Value Chain for Dairy Processing.............................................................................................................. 89
Final Report
Page 24
Final Report
Page 25
List of Abbreviations
ACABC
ADB
AHVY
APMC
ATMA
BIADA
BREDA
BSRTC
BSTDC
BSFC
BUDA
CA
CB
CBD
CBP
CDP
CDS
CIFE
CIP
COMPFED
DDP
DGET
DIC
DIT
DoA
DoAHF
DoAHDF
DoFP
DoI
DPR
DUDA
EPIP
FP
FVPI
GDDP
GIS
GoB
GoI
HMC
IEC
IGA
ITDC
Final Report
KVIC
KVK
LAN
LED
LED TF
LQ
ME
MoA
MoFPI
MoMSME
MNRE
MoLE
MPFP
MT
NABARD
NDDP
NGO
NHC
NHG
NHM
NRI
NRLM
NRW
NSDC
O&M
PHED
PMEGP
PPP
PWD
RAU
RKVY
SD
SIPB
SME
SPUR
SPV
SSDM
STEP-UP
SWM
SWOT
SJSRY
T&Cs
TERI
Final Report
UCDN
UDHD
UDPFI
ULB
USEP
UWEP
WAN
WBM
Final Report
Page 28
The vision to create prosperous urban communities by improving the private sector investment
attractiveness and economic growth of poor communities requires multipronged strategies. These
strategies are implemented through policy innovations and investment projects at various levels of
State Government and Local Government through sustainable partnerships with business
communities, non government organizations and local communities.
Due to the institutional limitations of urban local bodies to engage private sector investments to
cities, the main operational strategy to promote economic development of urban local economies is
to align the Bihar urban local economic development vision and strategies formulated under the
Support Program for Urban Reforms (SPUR) in Bihar with the national urban development
programs primarily for creating enabling environments for the private sector to invest in cities in
areas of their core economic sectors, leverage municipal lands for economic development, promote
pro poor businesses, enterprise development, and rehabilitate and promote informal sector growth.
An important aspect of improving the business climate of cities is to establish the comparative
advantages of the various urban centers and economic clusters through market analyses of
investment potentials and identification of value chains for establishing where public and private
sector interventions can unlock unexploited opportunities.
Final Report
Page 29
The City (Municipal) Business Plan (CBP) is recommended as an operational tool to conceptualize
and guide the private sector and business community to identify the core economic
competitiveness of cities and facilitate a productive investment dialogue with local governments
and communities. The CBPs prepared on the basis of the comparative advantages of the cities
would provide the required baseline information and investment perspectives of the economic
development potentials and guide potential investors to direct their resources to realize maximum
economic returns. Business consultations and interface with various investor groups constitute an
important part of designing and structuring the City Business Plans as to attract businesses and
investments to cities. An important part of this business dialogue would be to identify the
procedural reforms needed at municipal and district levels to reduce the investment transaction
costs to prospective private investors.
The urban economic vision and local economic development strategies formulated for cities in
Bihar are aimed to identify and promote competitive core economic sectors based on detailed
competitiveness analyses and market assessments. The SWOT analysis conducted for the 28 project
towns identify core economic sectors in which these cities have comparative advantages. The LED
strategies formulated for project cities would be implemented through the CBPs being prepared for
them.
The City Business Plan is a medium and long term road map to guide the growth of core business
and economic sectors in the city towards achieving the economic vision of cities and to
enable/facilitate private sector investments in competitive and potential business opportunities.
The CBP also examines the supply and value chain linkages in the existing economic activities and
discusses the necessary market interventions required to enhance the profitability quotients of city
businesses.
Besides, the CBP helps in the assessment of the institutional and economic issues involved in
creating enabling business climate as well as financial and market viabilities of new investment
opportunities. It also helps to identify the future economic growth trajectory of cities, and ways by
which cities could leverage local resources such as developable lands and human resources of cities
and their regions for sustained development of local economies.
1.1.2.
The Support Program for Urban Reforms in Bihar (SPUR) is based on the premise that effective
urban centers play a significant role in economic growth and poverty reduction by providing the
nuclei for greater economic activity and services that can contribute to propoor development.
SPURs goal is economic growth and poverty reduction significantly accelerated in Bihar by 2014.
Its purpose is identified ULBs ability to provide urban services and attract private investment
significantly enhanced.
SPUR covers 28 urban centres in which it aims to directly improve the quality of services received
by 6.36 million urban citizens, of whom 2.83 million are poor. SPUR will also benefit large numbers
of people from nearby rural areas who depend on these cities. SPUR will promote state level
Final Report
Page 30
institutions and improve financial and managerial capacities, as well as accountability, of Urban
Local Bodies (ULBs).
Interventions under SPUR are designed across five mutually reinforcing outputs:
1. Effective policies and stronger institutions to promote and manage urban development in
place;
2. State and ULBs mobilize significantly increased resources for urban development and
manage them more effectively;
3. Identified ULBs plan, implement and manage urban infrastructure and services more
effectively;
4. Increased municipal capacity to attract private investment in urban areas;
5. Empowered poor communities and socially excluded groups access increased urban
resources and livelihood opportunities.
For administration and management purposes, the SPUR program proposes to prepare CBP for the
project towns in phases.
1.1.3.
The purpose of this consultancy assignment is to prepare City Business Plans (CBP) for the five
towns of Bihar (namely Arrah, Biharsharif, Chapra, Hajipur and Siwan) within the framework of
the Bihar Economic Development Planning and Urban Development Strategic Frameworks and
Guidelines.
The City Business Plan would be a medium and long term road map to guide the growth of core
business and economic sectors in the city towards achieving the economic vision of cities and to
enable/facilitate private sector investments in competitive and potential business opportunities.
The CBP would also examine the supply and value chain linkages in the existing industries/ local
economic enterprises and strategize necessary market interventions required to enhance
profitability of city businesses.
An important outcome of the City Business Plan would be to identify viable physical and economic
action plans and structure them for implementation within the functional responsibilities of urban
local bodies. Broadly, the CBPs would entail the following sections:
Municipal Land Auditing and Action Plans for Leveraging for Private Investments
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Page 31
Identify viable pilot street vendor zone development action plans based on the Bihar Vendor
Survey Report prepared by the Project,
Besides identifying and structuring implementable action plans, the CBP would also identify
institutional and administrative policy and procedural reforms required to exploit the development
potentials of the urban local body and its region.
After completing the CBP exercise, Workshops will be conducted in each of the identified ULBs and
the comments and observations arising out of these workshops will be incorporated while
finalizing the CBP.
Page 32
Regional Integration: Industries and enterprises have to be identified which have regional
linkages with the State and Nation. It should be aligned with the State policies and investment
direction to boost up the State achievements on one hand and also create a positive linkage for
growth.
Promoting partnerships: Since industries, transportation, land uses, natural resources, and
other key elements of a healthy economy are regional in scope, the private sector should
therefore, need to be motivated for creating regional structures.
Poverty Reduction through Empowerment: Local economic development efforts should be
targeted at reducing poverty by integrating local economic development with government
schemes earmarked for poverty alleviation.
Human Investment: Human resources are the building blocks of local communities and
therefore efforts should be made to provide life-long skills and learning opportunities by
investing in excellent schools, post-secondary institutions, and opportunities for continuous
education and training available to all.
Agriculture Department,
Lead Bank,
Chambers of Commerce
Final Report
Page 33
Semi-structured interviews were conducted with key informants in the government sectors for
adding further insight into issues such as credit, taxation, regulations, services, infrastructure and
opportunities. Structured interviews were conducted with enterprise owners and managers
particularly to understand industry specific issues related to inputs and raw material, market,
technology, competitiveness, and about the factors which have enabled and constrained business
development, as well as their business support service needs. Enterprises were randomly selected,
but there was an explicit attempt to cover all the major sector activities found in the study
locations.
The data collection was followed by a potentiality analysis of the surveyed industries. The industry
potentiality analysis is based on an approach of Model based analysis. This model identified seven
factors- availability or existence of which makes a sector potential. These were:
Factor Conditions (F), which can be grouped into human resources, material resources,
knowledge resources, credit availability, capital resources, and infrastructure
Demand Conditions (D), which describes the state of market & demand for products and
services
Final Report
Page 34
Each factor in each industry associates a score based on the following considerations. The scoring
has been done through stakeholder discussions.
The total score for potentiality (coined as the Potentiality Index) is calculated through a cumulative
average of the seven factors, weights (F, D, R, S, E, W, G respectively) being decided through an
objective approach consistent with the objective of the study and the vision of the Municipality.
Table 1 : Scores Adopted for Potentiality Index
Score
Factor Availability
Demand condition
Competitiveness of
raw material supply
All
Factors
Available
within
the
Region
Very good
2
Some available
within
the
region
Good
Multiple
source
Competition
Single or two
sources
Competition
exists
(Competition
leads
to
improvement)
Women
employment
generating
potential
Government
Policy
Highly
Women
oriented
Majority
obtained from
outside
the
region
Moderate
or
fluctuating
No Competition
Moderately
women
oriented
No scope for
women
employment
Favourable
Nothing
particular
in
Final Report
Page 35
1.5.Tasks Involved
The aim of the assignment is to prepare consensus-based city business plan indicating strategies
and mechanisms to meet the development requirements. The business plan would be formed as
shared vision for the city involving various stakeholders with a long-term development perspective.
The assignment is split into a number of following defined tasks:
Final Report
Page 36
Final Report
Page 37
SIWAN
CHHAPRA
ARRAH
HAJIPUR
BIHARSHARIFF
Bihar can be divided into North and South divisions for the purpose of economic analysis. This
division is naturally supported by the River Ganga, which draws a fine line between the two
divisions. North Bihar is largely agrarian, with most of the cities supporting primary activities.
South Bihar is comparatively better developed with sizeable employment in trade and commerce
and services. The analysis for North Bihar shows that in Class I cities, primary activities such as
agriculture, mining, quarrying etc. are main resource absorbers, with cities such as Hajipur, still
having primary activities as their basic sector.1 South Bihar also has a strong presence of primary
activities in almost all the cities and towns. However, the situation is slightly better here for other
sectors as compared to North Bihar. However, Class I cities in South Bihar indulge largely in
Primary activities.
However, across all the districts, the industrial sector is quite underdeveloped in Bihar. The
industrial sector in Bihar as a whole, remains in a poor state, with its growth rate much below the
national average. The size of the industrial sector in Bihar in terms of income is hardly 3.2% of net
domestic product of the State, whereas, the national average works out to 20.1%. Small industries,
dominated by tiny enterprises and artisan based industries, play a significant role in the industrial
sector of the state. Generally, their contribution to employment generation is substantial, even
when the levels of productivity and total production remain low in this sector. The share of tiny
Urban Development Strategy for Bihar: A Management Perspective by Prem Pangotra and Astha Govil W.P. No. 2008-04-02
April 2008
Final Report
Page 38
industrial units among all the SSI units (both registered and unregistered) is as high as 99.9
percent2.
Agro-based industries occupy a prominent place in the industrial scenario of present Bihar as they
account for nearly half of the net value added. Food, tobacco, leather and non metallic products
occupy prominent constituents of the industrial base in Bihar, though the group of industries,
comprising of cotton, jute, wool, paper, rubber, plastic and chemicals, also have their presence in
smaller ways. During the last two decades, agro-based industries viz; tea, dairy sector through
cooperatives and makhana industries have shown an increasing trend. Yet, these still account for a
small proportion of the State's Domestic Product.
The growth rate of both the credit and deposits in Bihar is lower than the national average.
Investment is a must for productive economic activities and the low institutional credit rates
indicate that credit needs are even now met by private moneylenders at higher rates of interest,
which adversely affect the profitability of enterprises. Naturally, this brings a serious bottleneck in
the industrial development of the State.
The overall position of physical infrastructure in the state is far from satisfactory and the general
level of development is low because of inadequate power. However, over the years the road
infrastructure has experienced a positive change and massive construction of roads are in the
process, which will take some time to show its impact on the process of economic development.
Absence of rural extension programme both in agriculture and industry and low nexus of these two
sectors to establish backward linkages for modern agro and food processing industry, are some
critical issues that need to be addressed on a priority basis.
Chamber of Commerce and Industry Associations in the state are yet to play their active role to
influence the policies and provide the proper linkages to the market outlets. However, the
industrial area authority and the huge number of sick industries in the state project a serious
concern due to pathetic role of private players in the state economy.
All said and done, the buoyancy in the agriculture sector provides ample opportunities towards
setting the pace for industrialization. Hence, it is only through this mode Bihar could bring in
economic development and resolve the issues of unemployment and poverty.
Towns are an integral part of the local economic landscape. A significant and increasing proportion
of the rural population lives in these locations, which also host a very large share of local non-farm
activity. The employment opportunities available in such locations and the standard of living of its
population are therefore important dimensions of local economic development. In addition, much
economic activity in small and medium-sized towns is closely interrelated to the surrounding
village economy through consumption, production, employment and financial linkages and various
Roadmap for Rural industrialization in Bihar, A report of the Special Task force in Bihar,Govt of India , New Delhi, 2008
Final Report
Page 39
types of economic and social service provision. Hence, whilst an expansion of the small town
economy is intimately dependent on development dynamics at the rural level, the reverse is also
true. In other words, the nature and extent of economic linkages between towns and their
hinterland, and between the former and the wider economy, constitute key factors shaping local
development dynamics and potential. Hence, policies and interventions aimed at developing
the local economy must account for existing patterns of interaction between the village and
town economies, and seek to reinforce synergistic links and mitigate adverse impacts
arising from resource flows and exchanges between both types of locations. Clearly, a
neglect of the urban aspects of the local economy undermines its development potential.
The marketing function of rural towns is particularly noteworthy. These locations not only serve as
consumption outlets and local distribution points for farm and non- farm village production, but
(perhaps more importantly) also act as intermediary centres linking their hinterland to the wider
economy through the supply of imported inputs and consumption goods and the export of village
surplus production. Often, access to wider markets requires value addition at town level, for
example through grading, packaging, and processing activities. The major thrust of
industrialization should be to provide farm products and market linkages, based on product
cluster formation.
Urbanization associated other critical developmental functions of small and medium towns include
the provision of financial, information, employment, health, education, and training services to rural
dwellers.
The LED of towns needs to be assessed and designed within this state context.
Vaishali
Page 40
Particulars
Number of Sub-Division
Number of Blocks
Number of Municipalities
Number of Gram Panchayats
Number of Police Stations
Number of Inhabited Villages
Number
3
16
1
290
22
1414
The total population of Vaishali district is 34,95,249 which pegs it as the 10th most populous district
in the state, with a decadal growth rate of 28.58% which is more than the state average (25.07%). It
has an area of 2,036 sq. km., the population density is 1,717 persons per square km., and this
district accounts for 3.37% of the states population. The rural population amounts to 93.35% of the
total population of the district. The sex ratio is 892, which is lower than the state sex ratio (916),
and has further decreased from the 2001 ratio of 920. This is not a favourable human development
indicator.
The literacy rate of Vaishali is 68.56% (17.07% higher than 2001) which is the 12th highest in the
state. The female literacy rate stands at 59.10% (22.52% higher than 2001) and the male literacy
rate is 77% (13.77% higher than 2001). It may be seen that the increase in the female literacy rate
is much higher than the increase in the male literacy rate. This could be attributed to the
Mukhyamantri Balika Cycle Yojana launched in 2007 which entitles girls in class IX and X to a free
cycle from the state or Rs. 2,000 to buy one and also Mukhyamantri Balika Poshak Yojana (MBPY)
which entitles female students from Class VI to VIII to Rs.700 every year for purchasing two pairs
of uniforms.
Table 3: Vaishali District Indicators (Source: Distt Dev Plan & Census 2001)
Indicator
Percentage of cultivable land to total geographical area 2006-07
Percentage of net area sown to geographical area 2006-07
Percentage of gross irrigated area to gross area sown 2006-07
Percentage of net irrigated area to net area sown 2006 07
Consumption of fertilizer in kg/hectare of gross area sown 2006-07
Average yield of food grains 2006-07 (kg/ha)
Length of highways and major district roads per lakh population (km)
31st march 2005
Length of highways and major district roads per thousand sq km in
area (km) 31st march 2005
Length of rural roads per lakh population (km) 2004-05
Length of rural roads per thousand sq km in area (km) 2004 05
Number of branches of scheduled commercial banks 2008 09
Credit deposit ratio 2008
Density of livestock per sq km 2003
Final Report
Number/ Amt./Qty.
64.69
63.09
47.14
56.66
0.38
1636
186.81
13.99
42.74
430.23
128
28.45
160
Page 41
Indicator
Density of poultry per sq km 2003
District wise fish production 2007 08 (MT)
Share of districts in total milk production 2007 08
Total workers (number)
Main workers (number)
Marginal workers (number)
Non workers (number)
Total workers to total population (%)
Cultivators to total workers (%)
Agriculture laborers to total workers (%)
Workers in HH industries to total workers (%)
Main workers to total population (%)
Marginal workers to total population (%)
Non workers to total population (%)
Percentage of villages having safe drinking water facilities (%)
Percentage of electrified villages (%)
Percentage of villages having a primary school (%)
Percentage of villages having a middle school (%)
Percentage of villages having a secondary /sr. secondary school (%)
Percentage of villages having any health care facilities (%)
Number/ Amt./Qty.
202
10800
1.86
782717
624452
158165
1935704
28.80
26.87
29.71
3.02
22.98
5.82
71.20
81
38
67.4
27.5
5.72
69.4
In 2001, the Workforce Participation Rate in Vaishali was 28.8% (Bihar: 32.9%). Only 45.3% of the
male population and a mere 10.9% of the female population work in Vaishali district. The fact that
71.2% of the population is non-working shows that there are a lot of untapped potential workers
who could be skilled and made employable, especially in the sectors which have potential to grow
in Vaishali.
The power scenario is of considerable concern and it is with the improvement of this indicator in
mind that the GoB is laying so much stress on alternative sources of power. Hence the CBP also
gives considerable emphasis to the development of this sector.
GDDP
2005-06
Vaishali
Bihar
5982.0
7428.8
NDDP
2006-07
2005-06
2006-07
7333.0
8918.0
5366.6
6718.9
6671.9
8166.6
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As per the latest available estimates for 2006-07 the GDDP at constant prices (1999-2000) is Rs
2181.3 crore yielding a per capita income of Rs. 7333 which ranks 14th in the state (Bihar Rs.
8918) and the NDDP at constant prices (1999-2000) is Rs 1984.7 crore yielding a per capita income
of Rs 6671.9
As per the census 2001, the work force participation rate of Vaishali district was 28.8% (29.2%Rural, 25.05% -urban). 56.58% of the total workers were engaged in cultivation and agricultural
labour, 23.2% in other activities (services) and only 3.02% in household industries. In rural
Vaishali, a major proportion of workforce was engaged in agriculture and allied activities (75.5%)
while in urban areas a major proportion of workforce was engaged in other activities (64.4%).
Manufacturing industries remained low in both rural and urban area at 3.9% and 6.2%
respectively, and this is despite the fact that there is an industrial estate in Hajipur. Due to the fact
that women form a significant part of the agricultural labour force, the female WPR is higher in the
rural areas as opposed to that in urban areas.
Table 5: Workforce Participation Rate in Vaishali (in percentages)
Place
Year
1981
1991
2001
1981
1991
2001
1981
1991
2001
City
District Urban
District
Total
26.1
23.9
25.0
25.9
24.0
25.0
26.2
25.5
28.8
Males
45.7
41.5
41.5
46.1
42.3
41.9
46.6
45.0
45.3
Females
3.1
3.5
6.0
3.4
3.3
6.0
5.8
4.4
10.9
According to the Economic Survey conducted in 2005, the number of economic establishments in
Vaishali district was 46,565, which is 3.8% of the state share. The comparison of the number of
economic establishments in the 5 districts involved in Patna Cluster II is shown in the table below:
Table 6: Economic Establishments in Vaishali District
S.
No.
Name
(ULB)
of
District
RURAL
1.
2.
3.
4.
5.
Chapra (Saran)
Nalanda (Biharsharif)
Vaishali (Hajipur)
Siwan (Siwan)
Bhojpur (Arrah)
38326
25907
38783
32659
18388
Vaishali district has the 8th highest amount of saving deposits in the state in 2011, which is Rs. 77 cr.
However, this has not translated into a good CD ratio which stands only at 28.45. This is a clear
indication of the banks reluctance to lend to local entrepreneurs and agriculturists.
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Some of the major crops in Vaishali district are wheat, rice and maize. All three major crops have
shown a steady increase in production. Though not among the highest producer of vegetables, it is
the highest producer of cauliflowers and brinjal also is being grown extensively in the district.
The productivity of major crops like rice wheat and maize has shown increase during 2007-08 to
2008-09. Especially in case of rice, the productivity has more than doubled in the one year. The
maize production and productivity is high in the district.
Table 7: Area and Production of Major Crops (2007-08 & 2008-09 Last estim.)
Major Crops
Cereals
/pulses
Rice
Wheat
Maize
Vegetables
Potato
Onion
Cauliflower
Brinjal
Others
Fruits
Mango
Guava
Banana
Others
2007-08
Area(Ha)
Prod.(Tons)
2008-09
Area(Ha)
Prod.(Tons)
57367
44156
22296
27828
123213
29838
57459
48191
22436
90765
150493
50490
13312
1672
4853
3018
20703
258590
33945
90089
67603
319870
12654
1689
4872
3054
21091
212897
32475
89234
68881
339684
8172
1265
3513
3084
56204
12144
26498
150499
8238
1289
3546
3168
77977
11316
26916
145863
Table 8: Productivity of Major Crops (2007-08 & 2008-09 Last estim.) Yield (kg/ha)
Major Crops
Rice
Wheat
Maize
Pulses
2007-08
485
2790
1338
515
2008-09
1580
3123
2250
559
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Animal Husbandry: In Livestock wealth Vaishali district does not hold any prominent position in
the district.
Table 9: Livestock Wealth in Bihar (2003) (Figures in '000)
Vaishali
Bihar
Cow
181.1 (1.7)
10470.2
Buffalo
145.0 (2.5)
5765.7
Pig
2.1 (0.3)
627.0
Sheep
4.5 (1.3)
346.3
Goat
235.9 (2.5)
9605.7
Poultry
411.4 (2.9)
13967.8
Fisheries: Fish cultivation or pisciculture in Vaishali is also not significant as it produces only
3.16% of the total state production. However, it is considered as one of the districts which has good
potential for developing its fisheries because of other locational and resource advantages.
Table 10: Production of fish and fish seeds for the year 2009-10
2009-10
Fish Production
(000 tonne)
9.40
297.40
Vaishali
Bihar
Fish Seeds
(Lakh)
0.00
3307.85
Industry: The town has some industrial development. A few manufacturing units like a medicine
manufacturing unit and sugar mills are present. This district has potential for agro-based
industries, specifically bananas. The industrial sector in Vaishali is dependent on micro and artisan
units. The micro units have almost doubled from 2007-08 to 2008-09. The artisan units also
increased in 2007-08, but growth stopped in 2008-09. There has been no growth in the tiny
industry since 2006 which had 114 units.
Table 11: Status of growth of Industrial Units
Units
Tiny
Artisan
Micro
Small
Investment ( in
crores)
Employment
2006-07
114
115
2
2007-08
122
75
4
2008-09
130
-
148.35
563
703.39
367
102.42
367
However, in the district as a whole, a very small size of the working population 3.02% -is engaged
in household industries, indicating that this sector has low priority in the district as a source of
occupation/livelihood.
Outside the periphery of the Hajipur city, there is a BIADA industrial estate with 127 industrial
units out of which 72 are presently working. Others have either closed down or not working. Some
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are still under construction. The type of units which are working include mainly general fabrication
and engineering works, repair and servicing, handmade paper industry, agricultural implements
among other.
Table 12: Status of units in Hajipur Industrial Estate
S.
No.
1
2
3
4
5
Status of Unit
Number
Working
Construction not started
New allotment
Under Construction/ Constructed
but possession pending
Closed Units
Total
Percentage
72
2
5
11
56.7
1.6
3.9
8.7
37
127
29.1
PET Bottles
Surgical Cotton
Mineral Water
Cold Storage
Paints
PVC/ Hume Pipes
Flour Mills
Mosquito Coil
COMFED Sudha Dairy
Manufacture of Water Tanks
Hatchery
Marble Works
According to the District Industries Centre data, the table below shows how many Micro and tiny
enterprises in the agro-based industry sector were set up in the district from 2005-2011:
Table 14: Agro-based Enterprises in Vaishali District (Source: DIC Data)
Name of Industry
Dalmot, Namkeen, Sevai Manufacturing (Snacks)
Sattu,Besan production
Chyavanprash Production
Oil Production
Aachar (Pickles) Manufacturing
Potato Preservation
Rice Mill / Rice Flake Manufacturing
Pulses Mill
Spice Manufacturing
Wheat Production, Grinding
Final Report
No. of Units
6
3
2
20
25
10
22
1
2
6
Present Status
Operational
Operational
Operational
Operational
Operational
Operational
Operational
Operational
Operational
Operational
Page 46
Wheat
Production,
Grinding
6%
Sattu,Besan
production
3%
Dalmot,
Namkeen, Sevai
Manufacturing
6%
Chayavan
Production
2%
Potato
Preservation
10%
Oil Production
21%
Achar
Manufacturing
26%
Owing to its surplus agricultural produce, the district has immense potential for setting up of the
agro - based cottage industries. Therefore, the region has the potential for setting up of
production catchments/ consumption pattern based food processing units. The growth of these
units will be complemented with the fact that the district has close proximity and good connectivity
with the state capital by road. It is also the headquarters of the Eastern Central Railways and as
such has excellent rail connectivity. Air connections also are very good with the Patna airport only
21.2 Kms away.
In addition to the BIADA Industrial
Estate, there is also an Export
Promotion Industrial Park (EPIP)
which has been started in Hajipur. As
of December 2011, there are 25
manufacturing units and educational
institutions housed in this estate. Out
of these, 10 are working, 9 are under
construction, 5 are new allotments
and 1 is closed. The two technical
institutes set up here are Central
Institute of Plastic Engineering
Technology (CIPET) and National
Institute
of
Pharmaceutical
Education & Research (NIPER).
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The location of these teaching institutions will definitely add to the industrial development of
Vaishali-Hajipur Region and in fact that of the entire state. The type of units here are varied pharma and plastic, food processing units like Britannia biscuits, bakeries, juice and soft drinks,
fire-fighting vehicles and accessories, poultry feed, PVC ropes and twine, packing materials, inverter
and stabilizer manufacture and so on. The employment of skilled persons in these units will provide
a steady source of income to Hajipur citizens.
An Agri Export Zone has been established under APEDA, GoI for the export of litchis in the
Muzaffarpur-Vaishali litchi growing region. This is facing some infrastructural issues which have to
be sorted out before it can take off successfully.
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strong presence of primary activities. The location quotient of Hajipur depicts the dependence on
agriculture and allied with an LQ>13 for primary activities.
The commercial activities in the town are concentrated in the central region, along the National
Highway and major roads within the town. Key commercial areas in the town include:
Gudri Bazaar
Thakur Pokhar Sabzi Mandi
Paswan Chowk Chota Bazaar
Anjanpeer Sabji Mandi
Sonarpatti in Gudri Bazaar area
A significant part of the population of the town is engaged in the services sector or is self employed.
Thus, commercial activities are providing employment to a large section of the population. To
complement the economys dependence on agriculture, and the movement of goods through the
town, Hajipur has potential to develop warehousing facilities in the region. The commercial
activities along the highways include wholesale, retail, auto repair and transport services,
restaurants, hotels, etc. Most of the informal sector in the town occupies the foot paths and the road
sides. On a broader assessment, the employment in the town is mainly the service sector followed
by the self employed.
Agriculture: The towns hinterland lies in the rich agricultural belt of the State. The region is a
major fruits and vegetable producing area, especially banana, litchis and mangoes. Ward nos. 1, 13,
32 have urban horticultural activities of growing banana and vegetable particularly cauliflower
cultivations over large stretches of land.
Figure 4: Types of Enterprises in Vaishali-Hajipur region
Urban Development Strategy of Bihar- A Management Perspective April 2008, Prem Pangotra and Astha Govil, IIM Ahmedabad
April 2008
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The improved level of agricultural development in its rural hinterland has enhanced business
opportunities linked to the agricultural sector (e.g. input supply, machinery repair services,
marketing/processing of agricultural produce), whilst at the same time leading to a larger local
market. Hence, agri-based services and small businesses are by far the main area of enterprise
activity. Commonly found private service activities include wholesale trading of agricultural
produce and manufactured items, agricultural equipment dealer, agro-chemical dealer, grain
trading, motorized and non-motorized transport and mechanical repairs.
The enterprise landscape in Hajipur city is dominated by small/micro units. In Hajipur there are
around 647 commercial units which are in the ULB records while there are several more hundreds
which not recorded and thus unregularized. The typical enterprise is formed with less than Rs 2
Lakhs engaging around two to five workers. The type of enterprises in the city can be seen in the
table above.
Cottage Industry
Cottage scale manufacturing also entails low investment costs, thereby attracting a significant
number of entrepreneurs, with skills often being passed on within the family from one generation
to the other. Such activities include pottery, wooden furniture making, wedding accessories making.
Ward 38 has a concentration of household units producing jam, jelly, chutney and similar food
products.
Small and Medium-scale Industry
The industries present in the Hajipur Industrial Estate and EPIP have already been described
earlier. These industries have a direct linkage with the urban area in terms of employment and
allied services. With urbanization and the growth of the urban construction sector, traditional
enterprises like steel works and grill-gate making also have had a boost. New entrants to the
industry sector are bottled water production, computer assembly and E-services. Although still a
primary sector dominant economy, the emergence of the BIADA Hajipur Industrial Estate, the
Export Promotion Industrial Park and establishment of the Agri Export Zone has created an
industrial environment in the region, with the ULB geared to promote industries.
Agro-based Industry: Agro-based industries in the Vaishali-Hajipur region have also been
discussed earlier. The primary nature of the economy has had its manifestation in the emergence of
the seed production activity. Seed production is a very promising activity within the ULB in Ward
No. 30 in which around 50 to 60 households are involved in vegetable seed production. The early
cauliflower seed production is very conducive in Hajipur because of climatic and geo morphological
features. However, lack of certification is limiting farmers and local seed producers in fetching
comparable prices with large industries. In Hajipur there are a few producers who market such
produce to different states Punjab, Haryana, UP, Orissa, MP, Rajasthan and even Andhra Pradesh.
But the potential could be tapped to develop some wards as Seed Wards following the Seed Village
concept. The concept of green-house based agriculture under controlled conditions has also been
introduced so that vegetables and flowers are produced in Hajipur off-season also.
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Annual production figures for the current year is 3 tons of cauliflower, 50 tons of Spinach and 2,5 tons of
carrot along with other vegetable seeds. The annual production has registered a 10-15% growth rate over
the last several years. However, there is stiff competition. The competitive edge of Bharat Seed Stores lies
in the vegetative coating and fungicide treatment of the seeds which creates a specialized clientele. The
entrepreneur has plans of further expansion of the unit to cater to the growing market. Technology
upgradation has been planned through introduction of Gravity Separator for grading and Digital Printing
of MRP on packages.
Mr Sinha wants more farmers to come under the fold of the business cluster or farmers cooperatives
need to be developed. However he mentions that doing business or setting up an enterprise is a time
taking exercise and getting sanctions are not only related to meeting procedural formalities . Although
there is a subsidy of 35% in this sector, 20-30% is spent on repetitive visits and meeting associated
expenses. According to him, decentralised single window operations can serve the purpose to some extent
this is something which GoB intends to implement in any case.
Another agriculture linked activity which has very recently emerged in Hajipur is Banana Fibre
making. Vaishali-Hajipur Region produces more than 2.5 Lac MT of Mothia and Chinia varieties.
Another agriculture linked activity which has very recently emerged in Hajipur is Banana Fibre
making. Vaishali-Hajipur Region produces more than 2.5 Lac MT of Mothia and Chinia varieties.
TheBihar government is promoting new varieties of Banana and is offering subsidies to the farmers
to encourage them to grow these varieties which offer significant advantage over the present
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Cold Chain and Preservation Business: Varieties of fruits, such as banana, litchi, makhana, lemon,
jack fruit, bael mango, and vegetables like potato, onion, tomato, cauliflower, garlic, bottle and
sponge gourd, chillies, peas, turmeric, betelvine etc. are grown in Hajipur in large quantities. But
neither the farmers are able to harness due benefits because of poor pre and post harvest
management and lack of availability of appropriate fruit and vegetable processing industries
(FVPI). There is a huge annual loss, amounting to 25 to 40% of the total fruits and vegetables
produced. There are already 22 cold storages in the Hajipur region which provide a storage
capacity of 81743 MT. Some are exclusively for potatoes and many are of the multi-purpose variety.
Five more cold storages have been sanctioned by the SIPB for the Vaishali-Hajipur region. These,
together with the existing ones, will serve the dual purpose of arresting wastage on one hand and
lead to effective employment generation on the other. Agri Business Centres have significant
potential in marketing the agri produce.
Animal Husbandry and Dairy
The agro climatic condition of the district is quite suitable for diary development, livestock and
poultry farming activities. It is one among the cattle concentrated area and also has a milk
processing plant. This gives lucrative income and employment to the people of Hajipur. However,
the district stands at 20th position when compared to the average milk yield, and at 19th position
when compared to the average milk density (Lit /per day /sq km) of all districts (National Dairy
Development Board, April 2008). There is some amount of secondary processing of milk into dairy
products in the Hajipur Industrial Estate, but there is ample scope to develop this further.
Table 15: Sector-wise investments approved for Vaishali-Hajipur region by SIPB
S.No Sector
1
Healthcare
3
Agro & Dairy-based
Industry (Steel units, sheet making, bottle
units, package drinking units, plastic
4
moulds, pipe making)
5
Industry - Bakery/Biscuits
Cold Storage/Warehousing Industrial
6
Units
7
Education
8
Biomass Powerplant
500
141
76.5
1.7
191.25
Many large and small companies are focusing on Hajipur as a potential destination for
industrial activities such as Britannia which is planning to set up its bakery unit in Hajipur. Bihar
provides a big market opportunity for various industries and therefore, these industries are
targeting Hajipur as their potential units destination. The State Investment Promotion Board
(SIPB) has approved a number of proposals for setting up of industrial units in the Hajipur
Industrial Area and the Export Promotion Industrial Park. Integration with the local economy of
Hajipur town will come in the form of supply of labour and setting up retail marketing outlets. The
forward and backward linkage will create employment, income and revenue. The industrial units
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sanctioned by SIPB includes medical facilities and research centre units, cattle & poultry feed units,
banana/bamboo fibre yarns, food processing units, packaging units, detergent powder production
plants, warehousing/cold storage units, ice cream/dairy production units, biscuit production units,
bakery production units, packaged drinking water, plastic mould units, cycle parts manufacturing
units. The sector-wise break-up of proposed investments is below:
S. No.
1
2
3
4
5
6
7
8
Area (Ha)
1027.2
13.5
105.0
35.4
2.0
62.9
478.3
240.0
52.3%
0.7%
5.3%
1.8%
0.1%
3.2%
24.4%
12.2%
1964.3
100.0
Page 54
Commercial
Household and other industries
Regional rail transport and Freight Transport
Educational, Health and other Social Infrastructure
Administrative center
The inner city reflects a mixed landuse pattern with a congregation of residential, and
commercial, in a single locality. This is not conducive to business or economic development
or good quality of life for the citys residents.
The open spaces are vacant and very often inaccessible. Therefore, if there are any plans for
establishing any business enterprises in these areas either by the government or by private
parties, they would not be commercially useful.
Several slums have come up in the recent past and based on rough estimate about one-third
of citys population resides in slums. Provision of basic infrastructure for these non-serviced
areas of the ULB would have to be a priority.
The road network and further developmental activities are not properly planned. It would
be beneficial if business and public concerns go hand in hand for effective development to
take place.
The traffic and transportation system is inadequate and requires significant strengthening
and improvement. Feasibility studies and integrated planning should be undertaken for this
so that it is turned into a business opportunity for the local entrepreneurs or atleast provide
adequate infrastructural support for the same.
Parking zones are not provided and thus it is leading to congestion on main roads and
haphazard parking. This is a major deterrent to commercial activity and economically viable
solutions need to be found for this problem.
The draft CDP recommends specific city level strategies for growth management, which include:
Regularization of illegal colonies by providing basic services and amenities in these areas
To clearly earmark the areas in the planning area for the industrial development
Regulating growth in the peri urban areas
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lack of job descriptions. Whatever training is provided is limited, sporadic and supply-driven. The
inability of municipal staff to prepare DPRs is just one indicator of the limited skills base.
Municipalities depend largely on allocations from State or Central governments for infrastructure
development. The 74th CA mandates the formation of a Wards Committee in each municipality with
a population above 3 lacs, and the Bihar Municipal Act 2007 goes further, envisaging one committee
in each ward. These arrangements have not been operationalized, hence there is no formal
involvement of citizens in urban planning. Any infrastructure funds held by the municipality tend to
be spent on the basis of political considerations rather than a systematic assessment of local needs
and priorities.
There are many NGOs in Bihar but their participation in the process of infrastructure development
and service delivery is minimal, being confined to a few centrally sponsored schemes for the poor.
The public grievance redressal system is very rudimentary, with no established mechanism for
responding to complainants, and apathy on the part of the administration to address concerns of
business communities regarding the project approvals and necessary environmental clearances.
The financial condition of ULBs in Bihar is characterized by poor revenue generation, inadequate
expenditure on development, operation and maintenance and high dependency on loans and grants
from the State Government for both development and establishment costs. Lack of a human
resource development strategy is a key factor in the limited ability of ULBs to utilize effectively the
funds available under various government schemes.
Holding Tax is the principal source of municipal revenue in Bihar, but revenue collection efficiency
is extremely low: from 4 percent to 37 percent in ULBs. Revenue flows from other sources are
irregular, unpredictable and insignificant. Establishment costs amount to 85 to 93 percent of total
revenue expenditure and are as high as 1.94 to 4.9 time self-generated revenue.
ULBs are often debt-ridden and unable to repay loans from financial institutions and the State. No
inventory of assets, liabilities and loans is kept and updated regularly; double entry accrual-based
accounting is yet to be introduced; and there is no internal audit function at present, though it is
stipulated in the Municipal Act, 2007. Budgets and other financial information are not used as tools
for planning, control and management, neither are they guided by an urban policy or ground
realities. None of the ULBs have any planning system for liquidation of monthly fixed expenses and
other liabilities against expected receipts; they simply concentrate on meeting essential monthly
expenditure. However, as can be seen in the next section, Hajipurs municipal finances are not in
such a poor state, which is a positive situation as far as City Business Development is concerned. .
2.6.2.1 Hajipur Municipal Corporation
The Hajipur Municipality was set up in the Year 1857. At present, the city is run by a Chairman,
Deputy Chairman and 37 Councillors on the legislative front and one Executive Officer to oversee
the executive works.
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The Bihar Municipal Corporation Act, 2007 governs all the Urban Local Bodies in the state. The Acts
specify governance framework, the spatial jurisdiction and the functional domain of the local
bodies. As per the Bihar Municipal Draft City Development Plan for Hajipur Corporation (HMC) Act
2007 all the seats in the Urban Local Bodies (ULBs) shall be filled by persons chosen (councilors)
by direct election from the territorial constituencies i.e. wards in the municipal area. It is
mandatory to reserve in every ULB not more than 50% of the total seats of the councilors for (i)
Scheduled Castes; (ii) Scheduled Tribes; and (iii) Backward Classes.
Hajipur Municipality takes care of the services of sanitation, streetlight, general public health, parks
and gardens, poverty alleviation, etc. Apart from the local bodies, a number of government
institutions are associated with the governance of Hajipur City. They include:
State Government Agencies:
It has been observed that in the absence of a coordinating agency, there are several constraints in
the integrated and comprehensive planning and delivery of services. Interdepartmental
coordination is one of the prominent issues and conflict that is becoming difficult to address or
resolve even at the level of heads of the service delivery agencies. It is observed that the citizen is
often concerned with the quality of service rather than who is delivering the service. The service
delivery often suffers because more than one agency is involved and there is no mechanism for
ensuring inters agency coordination. Some of the critical issues that emerge from the existence of
multiple agencies include:
Hajipur Municipality derived 18.0% (average 2008-09 to 2010-11) of its revenues from taxes
and about 12% (average 2008-09 to 2010-11) from non-tax sources, with grants providing a
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further 68% (average 2008-09 to 2010-11) of the revenues which reflects higher dependency
on the government funds.
Hajipur Municipality has performed well as far as revenue account is concerned. It may be noted
that operating ratio has been below unity (on an average) during the assessment period.
Revenue through property tax contributed 12% to the total revenue income of the Municipality.
Both revenue account and capital account has been accruing a substantial amount of surplus except
in few years showing a fluctuating trend. Substantial amounts from capital surplus had also been
diverted to Revenue accounts. At an overall level, the Municipality had been able to maintain a
positive closing balance during the assessment period. This is an advantage as far as City Business
Planning is concerned, as the ULB will have the financial band-width to handle larger volumes of
business in the long run.
Hajipur Municipal Financial Status
Table 17: Summary of Finances of Hajipur Municipal Corporation
2.6.3
Elected Wing: Hajipur has an elected body headed by the Mayor. Each ward elects one member
who collectively elects their Mayor. There are 39 election wards and accordingly 39 elected
representatives in Hajipur Municipal Corporation (HMC). The HMC with the help of administrative
and technical personnel, carries out the decisions of the Municipal Council.
Administrative Wing: The Executive Officer heads the Hajipur Municipality. The EO, belonging to
the cadre of state, is assisted by the City Manager in all his activities. He is also assisted by a group
of officials in administration.
Out of the total sanctioned staff of 230, the Municipality has only 98 existing staff indicating that the
local body is functioning with 43% of strength.
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The institutional structure of Municipalities is not adequate to explore and ramp up the economic
potential of the city and work towards it. Interactions with the Municipal functionaries revealed
that the institutional set up is only geared towards property tax collection, undoubtedly the most
important function of the ULB. Hence, the constitution of an LED Cell at ULB level is extremely
important for the purpose of business / entrepreneurial development of the ULB. The LED Cell will
work in close tandem with the UPE Cell designated for the implementation of the UPE Cell. The LED
Cell should be headed by Town Planning Officer (TPO) or the City Manager. Ideally, a Task Force
should be constituted at the District level, with representatives from the ULB. This LED TF, should
coordinate the with the district departments for the effective and timely implementation of the CBP.
This could be followed by the appointment of a Consultant individual or firm to who could be
entrusted with the task of implementing the CBP along with the existing, but strengthened (through
adequate capacity building) District and ULB administration and other key stakeholder groups like
NGOs and civil society organizations.
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Service Sector
The tourism, education, health, agro-based services like agri-clinics, agri-business centre-cumfood park, agricultural implement and tool-based services and commercial and retail outlets
have potential to grow in the Vaishali-Hajipur region.
These prospects will be taken up in a detailed manner in later Chapters.
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Sector
2001-02
2002-03
2003-04
2004-05
Primary Sector
50231
80688
52344
75578
Secondary Sector
10117
12354
11964
14171
Tertiary Sector
79205
83909
93727
102082
139553
176951
158035
191831
200000
150000
Tertiary
Sector
Secondary
Sector
100000
Primary
Sector
50000
0
2001-02
2002-03
2003-04
2004-05
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Primary Sector
Since Bihar is a part of the Gangetic plains, the state has rich soil and abundant water resources.
With the bifurcation of state in November 2000, the newly created Jharkhand state took away the
mineral rich part of the state and the present Bihar was left with its agro-based economy.
Table 19 : Growth of Primary Sector in District Vaishali
Sector
2001-02
2002-03
2003-04
2004-05
Agriculture
Forestry & Logging
Fishing
Mining & Quarrying
Primary Sector
43512
3602
3112
5
50231
72533
3838
4317
0
80688
44085
4151
4108
0
52344
67743
4502
3333
0
75578
Source: - Planning Commission website; State District Domestic Product Bihar 2001 to 2005; Directorate
of Statistics and Evaluation, Govt. of Bihar
As is evident from the table above, the primary sector activities in the district has registered a 50%
growth rate, which is largely due to diversification in agriculture and the increase in agricultural
productivity, due to better technological and scientific inputs in the cropping techniques and
management. As per the Economic Survey Report 2010-11, Vaishali district was ranked second in
the production of vegetables, fruits and flowers in 2008-09. Banana, mango, litchi, guava, wheat and
maize are the main agricultural products of the district. The services of the Agricultural Technical
Management Agency (ATMA) are available in this district, which should help in further enhancing
its productivity, thereby also providing further potential to agro-based industry and services to
develop in the region.
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2002-03
Agriculture
2003-04
Forestry
& Logging
Fishing
2004-05
Mining &
Quarrying
Major Crops
Cereals /pulses
Rice
Wheat
Maize
Vegetables
Potato
Onion
Cauliflower
Brinjal
Others
Fruits
Mango
Guava
Banana
Litchi
2007-08
Area(Ha)
Prod.(Tonne)
57367
27828
44156
123213
22296
29838
2008-09
Area(Ha)
Prod.(Tonne)
57459
90765
48191
150493
22436
50490
13312
1672
4853
3018
20703
258590
33945
90089
67603
319870
12654
1689
4872
3054
21091
212897
32475
89234
68881
339684
8172
1265
3513
3084
56204
12144
150499
26498
8238
1289
3546
3168
77977
11316
145863
26916
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Issues and Challenges: The district has very good potential for vegetable and fruit processing.
However, adequate and appropriate storage capacities for fruits and vegetables are absent. The
entire produce after harvest is immediately transported to the markets within and outside state
and some to the processing units mainly for fruits. This factor deprives farmers from reaping the
benefit of their produce on one hand and also does not help in generation of employment. Hence,
cold storages and food processing units would meet the bi-pronged strategy of effective and
economic disposal of vegetables on the one hand and create employment at the urban level on the
other.
Fruit Processing
Fruit processing industries grow from the situation of production surplus. Varieties of vegetables
particularly brinjals, potato, cauliflower and onions are grown in a very large quantity in the
Vaishali-Hajipur region. However, a huge annual loss, amounting to 25 to 40% of the total fruits and
vegetables produced, occurs on account of poor methods of harvesting and transport facilities.
Pisciculture & Aqua Culture
The average annual production of fish in the state is nearly 2.61 lakh tonnes against the annual
demand of 4.56 lakh tonnes. Thus it seems necessary to double the production to bridge the vast
gap between demand and supply. Fish farming & development of sweet prawn and shrimp farming
practice, which fetch high value in international markets, have good potential in Hajipur. However,
siltation of ponds, availability of fish seed and adequate, suitable preservation infrastructure and
outdated technology are serious impediments to the development of this sector.
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Dairy Processing
The agro climatic condition of the district is quite suitable for diary development, livestock and
poultry farming activities. The traditional occupation in this area has been the rearing of milch
cattle. Animals are used in agricultural work even today. In urban areas rearing of cows of hybrid
quality has increased. It is a cattle concentrated area. The district stands at 20th position when
compared against average milk yield, and at 19th position when compared average milk density
(Lit /per day /sq km) of all districts (National Dairy Development Board, April 2008). The
challenges in the dairy sector are very poor coverage of veterinary and artificial insemination
services and paucity of cattle feed and its production.
3.2.2
Secondary Sector
This region is better covered when it comes to the industrial or secondary sector. Due to locational
advantages and resource strengths of the region, there are two almost full industrial areas in
Hajipur with several industries are already functioning and many more proposed ones. As a result,
industry is one of the priority sectors in the economy of the Vaishali-Hajipur region. However, it
needs to be regularized and linked to lucrative markets in a sustainable manner.
Table 22 : Growth of Secondary Sector in District Vaishali
Sector
Registered MFG.
Un regd. MFG.
Manufacturing
(Secondary Sector)
2001-02
2572
7545
2002-03
4242
8112
2003-04
2828
9137
2004-05
4397
9774
12354
11964
14171
MFG.
10117
Source: - Planning commission website; State District Domestic Product Bihar 2001 to
2005; Directorate of Statistics and Evaluation, Govt. of Bihar.
10000
Unregd Mfg
8000
Regd Mfg
6000
4000
2000
0
2001-02
2002-03
2003-04
2004-05
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The details of the economic activities and industrial status of the Vaishali-Hajipur region have been
discussed in points 2.3 and 2.4 in the earlier Chapter. Suffice it to say that there is ample
opportunity for both entrepreneurs and for employment in this region due to the concentrated
focus being given by the State Government on the area.
Sector
Electricity, Gas & W.supply
Construction
Trade, Hotels & Restaurants
Railways
Transport by other means
Storage
Communication
Banking & Insurance
Real, Ownership of Dwel. B.Ser.&
Legal
Public Administration
Other Services
Tertiary Sector
200102
2887
7894
6135
3720
3089
118
2553
7423
200203
2899
9577
7448
3937
3565
140
2775
7389
200304
3593
9966
8582
4301
3954
123
3114
7842
200405
4307
12359
9453
4784
4873
148
3463
7891
6076
6786
7874
8555
12080
27230
79205
10866
28527
83909
13040
31338
93727
13561
32688
102082
Source: - Planning commission website; State District Domestic Product Bihar 2001 to 2005; Directorate of
statistics and Evaluation, Govt. of Bihar.
As can be seen from the table above and figure below, the most robust service sectors presently are
construction, trade and hospitality and public administration sectors. This could be attributed to
the fact that Hajipur Industrial Estate and EPIP have several upcoming industries which involve the
building up of industrial sites and housing colonies, which in turn result in the proliferation of other
support services like trade and hospitality.
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100000
Rs Lakhs
80000
60000
Storage
Transport (other means)
40000
Railways
20000
0
2001-02
2002-03
2003-04
2004-05
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Urban Street vending is not only a source of employment for the poor masses, but it also provides
affordable goods and services to the considerable fraction of urban population. As per the recent
SPUR survey in 2010, there are about 4,086 Street Vendors in the city of Hajipur, out of which,
about 61% of the vendors are fixed in location and 39% are mobile. Usually these vendors occupy
the right of way of the roads and the unattended areas on the busy commercial areas of the city. The
rest of the vendors are the mobile variety who move in various areas of the city. Around 39% sell
fruits and vegetable, 10% sell fish etc, 17.3% sell processed food, 6.3% clothes and 28% fall under
Others category.
Page 70
and has potential to grow a variety of crops. However, the productivity has to be enhanced by
better farming methods and the post harvest management practices have to be improved for
minimizing losses. The cultivation of high value crops and diversification would also benefit this
sector in a manner which would be financially sound and developmentally sustainable. In the
recently drafted Roadmap of Agriculture Development, the Agriculture Department of Bihar has
classified these interventions into four categories:
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The efforts made to develop this sector in the Vaishali-Hajipur region also will have to work on the
basis of these strategies.
Apiary & Honey Production
The data from the Horticulture Department of GoB indicates that Vaishali lies in the honeyproducing region of Bihar and as such, there is scope for this agro-business to develop here.
Figure 11: Honey-Producing Districts of Bihar
There are four to five honey flows in Bihar, of which one lies in the Vaishali-Hajipur region.
Approximately 3,900 MT of honey was produced in the state out of the total countrys production of
8,400 MT in 2002. Bihar is the only state producing litchi honey on commercial scale, and it should
rank at par with some of the premium honey in world market, in terms of its uniqueness and
quality. Honey yield of the Italian honeybee species is the highest in Bihar as compared to other
states with a production rate of 40 and 60 kg honey/hive/year under stationary and migratory bee
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keeping respectively. Bihar has potential to produce about 40,000 MT (Rajendra Agricultural
University estimate). The processing industry has not kept pace with the increase in beekeeping in
the state, which has no large processing unit and 80% of the honey is being processed outside the
state. There are a handful of processing units in the organised sector with most of the processing
happening in the unorganised sector with the main being the processing plant run by Mirzanagar
Gramodyog Samiti. With the tremendous emphasis being laid on natural and healthy foods, the
demand for honey has increased manifold both in India and abroad. Therefore, if adequate focus
and support is given to the bee-keeping and apiary sub-sector and quality control and certification
is made mandatory, it abounds with ample opportunities.
Agri Ventures include various input-based enterprises and services including seeds, fertilisers,
repair and servicing of implements like power tiller, zero till machine, rotavator, combine
harvester, paddy transplanter, cono weeder, reaper, sugarcane cutter planter, land leveller and
other modern and improved implements. The prospective agri businesses that have a potential and
that can be promoted in this region are:
The DoA, GoB intends setting up 40 ABCs in different parts of the state depending on the locational
strengths. Some of these could be located in the Vaishali-Hajipur area, after a feasibility study is
conducted. These ABCs can house the above services depending on the local needs of the region.
Based on the following linkages, agriculture, food processing and a range of allied sectors can be
assigned as the sector of prime economic significance in the Vaishali-Hajipur region.
Supply side Linkages:- The rich soil of the region makes it ideal for production of a vast range of
grains, fruits, vegetables and flowers. Presence of water bodies create potential for raising fish
culture. The bovine population in the region ensures sufficient availability of milk for the dairy
processing industry.
Demand side Linkages:- Hajipur is well connected to the urban centre of Patna on one side and
has strong connectivity through national highways to other regions of economic importance.
The Processed Food Industry within agriculture and allied sector is divided into the following broad
segments:
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Primary Processed Food which includes products such as packaged milk, unbranded edible
grains, milled rice, flour, pulses, spices, and salt sold in packaged or non-packaged forms.
Value-added Processed Food which includes products such as biscuits, bread, pickles, jams,
jellies, chips and other snacks, sauces, crushes, syrups, tinned items, dehydrated food products,
herbal products, processed dairy products (ghee, paneer, cheese, butter), processed poultry,
processed fish products, confectionery, chocolates and alcoholic and non-alcoholic beverages.
Figure 12: Business Linkage for Agriculture & Allied Sectors
Proximity to Patna,
Road connectivity
3.4.2
Hajipur has traditional artisans who make products using sikki grass, banana fiber and wood but do
not have a commercially sustainable size of operation. There is a necessity to federate the artisans
and bring their operations to a viable scale. The solution may lie in the development of cluster of
handicraft artisans with training, modern design and skillful marketing strategies in place for
backward and forward linkages and actual production. Apex agencies like the Export Promotion
Council (EPCH) sponsored by the Ministry of Textiles (GoI), All India Artisans and Craftworkers
Welfare Association (Craftmark) and the State agencies like the Industries Department which
houses the Bihar State Handloom, Powerloom & Handicraft Corporation should promote these
handicrafts in a focused and integrated manner so that finances and incentives also are utilized in
the most optimal way. The cluster development concept is viable for promotion of handicrafts
peculiar to a region and was one of the thrust areas of the Ministry of Micro Small & Medium
Enterprises for the 11th Five Year Plan.
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There is a huge shortfall of power in Bihar and industrial and indeed overall development of the
state is adversely affected by this factor. Hence, the GoB is now forced to look into every possible
mode of power generation. The crop residue and farm wastes like husk of rice and wheat, straw,
corn cobs, seed coats of oil seeds, stalks and sticks of fibre crops, pulp and wastes of plantation
crops, peelings, pulp and stalks of fruits and vegetables are the raw materials used as input for
direct cogeneration of electricity through this process. There is a wealth of this kind of raw material
available in the Vaishali-Hajipur region, which could be used for this purpose. The SIPB has already
approved the setting up of one solar photo-voltaic battery plant and one 10 MW biomass based
power plant in the region.
3.4.4
Earlier in the chapter, district-level analysis has shown that in the Vaishali-Hajipur region, the
sectors of construction, trade and hospitality industry, communications, pubic administration,
banking and insurance and the category termed as other services had the most number of
employees. Presently, the following sectors, will have to be focused on as far as the service-sector
based economy is concerned:
Tourism & Hospitality Sector
Vaishali has historical, archaeological and religious importance which makes it an attractive tourist
destination. Vaishali falls under Buddhist, Ramayana and Sufi tourist circuit promoted by Bihar
State Tourism Development Corporation. As such, it does have potential as a tourist destination
provided it is taken up is a focused manner and PPP opportunities are offered to entrepreneurs for
developing this sector. Transport and other linkages like the provision of sight-seeing tourist guides
and local arts and crafts shops should form an integral part of the tourist package.
With the boost in tourism, the hospitality sector will have to be necessarily developed in tandem. As
Hajipur is close to Patna, it may be feasible to promote Ayurvedic and wellness spas and
amusement parks, along with the hotel complexes, in order to attract the domestic as well as
foreign tourists which visit these centres. These could be PPP ventures also.
Agri-Clinics and Agri Business Centres
The high agricultural productivity of this region can be further enhanced to make the farming
business more profitable for the cultivators. Agri-Clinics are envisaged to provide expert advice
and services to farmers on various technologies including soil health, cropping practices, plant
protection, crop insurance, post harvest technology and clinical services for animals, feed and
fodder management, prices of various crops in the market etc. which would enhance productivity of
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crops/animals and ensure increased income to farmers. The ATMA centre in Hajipur can be a
facilitating agency for the agri-preneurs operating in this field of business.
Specialty Hospitals Polyclinics, Diagnostic Labs, Telemedicine and Health Insurance Services
through PPP
Hajipur already has a healthcare service sector which is limited, unregulated and often without
standardized health care service delivery. Specialty hospital and diagnostic facilities by private
players like Fortis, Dr Lals Path Labs and other reputed private players will not only foster quality
of internal standards but also create employment opportunities, contribute to the economy and
control unregulated growth of sub standard health facilities. Feasibility studies should be
conducted prior to establishing of such facilities in the region. The 12th Plan may see the launch of
the National Urban Health Mission (NUHM), which will give this sector a much-needed boost by
promoting partnerships and enabling the environment for improving healthcare services in urban
areas.
Vocational Education & Skill Development
There are two ITIs in Hajipur, but they are limited in their course offerings to electrical and
fabrication trades. With the introduction of new avenues of economic development like biomass
energy production, urban agriculture, organic and contract farming, agri-clinics, agri business
centres, food-processing industries and so on, it is of vital importance that the capacity of the local
populace be developed in these businesses, trades and services. This will call for the establishment
of vocational education, skill and entrepreneurial development centres which are market-linked
and output-based, in and around Hajipur. This can be done on a PPP basis in the city.
Industrial (MSME) Workforce
With the establishment of three industrial zones in the Vaishali-Hajipur region and the SIPB
approval of 46 MSME units in the area, the prospective employment of skilled labour in the area
will go up to nearly 6000 persons (see Annexure 3 for list of SIPB approvals). These workers will
mainly have to be in the food-processing, mineral water, preservation, storage and packaging
industry, plastics and chemicals and energy plants based on alternative sources. The skill
development business should be dove-tailed with these particular skills which will be in demand.
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3. Industrial Area: There are two Industrial estates and one agri export zone in the VaishaliHajipur region, which can be exploited for backward and forward linkages and the
possibility of supporting ancillary micro-enterprises like spare parts, packaging,
transportation and so on.
4. Education seeking society: Per capita spending at Rs 484 on education in Bihar evinces a
knowledge seeking economy. The concerted and successful efforts of the present State
Government to promote the education of the girl child will also provide a boost to efforts in
this sector. Skill development and capacity building are dire needs of these cities which can
be developed into profitable business ventures if they are supported by market-based
realities.
5. Fertile Agricultural Land: Good quality agricultural land has positioned Vaishali as one of
the districts with high agricultural productivity. 62.1% of the land is under net sown area. It
is especially known for its high levels of productivity in cash-rich crops like banana, litchi
and mango. The large produce base is a huge advantage, provided storage, primary and
secondary processing and marketing facilities are supported by effective linkaging and
networks.
6. Location: Proximity to the largest urban agglomeration of Patna Capital Region and the
proposed terminal market at Bihta for sale of produce.
Weaknesses
1. Micro Credit practices in Vaishali-Hajipur region are not well established. This is often
a deterring factor for growth of local, small and household industries. So these require
deepening and increased outreach.
2. Low Crop Yield: Even though the region is rich in soil and water resources, its average
yields of Rice, Wheat, Maize and Sugarcane are only about 32, 44, 40 and 38 percent of the
potential yields, respectively. This is due to the lack of scientific cropping methods
throughout the crop cycle.
3. Poor infrastructural facilities in commercial and residential areas, as a support for
local economic developmental activities.
4. Perceived lack of positive governmental response to entrepreneurial ventures.
5. Perceived lack of ease in business approval processes and transactions.
Opportunities
1. Amusement & Wellness Destination: There is an opportunity to develop Hajipur area as
an amusement and wellness destination along with tourism, due to its advantage of being a
Buddhist tourist destination for pilgrims and devotees.
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2. Biomass Waste Availability: The crop residue and farm wastes like husk of rice and
wheat, straw, corn cobs, seed coats of oil seeds, stalks and sticks of fibre crops, pulp and
wastes of plantation crops, peelings, pulp and stalks of fruits and vegetables are the raw
materials used as input for direct cogeneration of electricity in biomass energy plants.
Vaishali-Hajipur region, being one of the agriculturally rich and productive areas in the
state, can cash in on this opportunity as there is bound to be adequate bio waste available
for such a venture.
3. Relatively lower land cost as compared to Patna, with single window clearance to enable
local entrepreneurs to form start-ups with lower initial CAPEX requirement.
4. Presently, there is a lot of focus on Hajipur as it is well-located, well-connected and has a
large amount of agricultural produce. Hence, development of the region is being promoted
in an aggressive manner.
5. There are several prestigious teaching & research institutions in the region like CIPET
and NIPER, available for technical training in relevant industries for entrepreneurs, staff
and skilled labourers.
Threats
1. Migration of skilled work force towards other states and other big production centres.
2. Poor policy support for PPPs in Infrastructure development for Agro based Industries,
contract farming etc.
3. No APMC act: Because the traders activities are now completely unregulated, nontransparent transactions and price collusions are even more pronounced than they were
under the APMC system. Because of the lack of alternative marketing channels, small-scale
farmers have no choice but to utilize the current trader-dominated marketing system
despite the rampant exploitation.
4. Inability to induce investor confidence in Bihar and especially in its provincial towns.
5. Inability of governmental schemes to have the desired impact on productivity,
technology towards enhancing productivity both in agriculture and industries.
Source: Stakeholder Consultations in Hajipur and Feedback Analysis
3.6 Recommendations
1. Introduction of high value crops In order to promote production of non traditional
crops in the region, agri business centres supported by agri clinics need to be opened which
provide farmers access to new seeds, farming methods of new crops etc. Training and
capacity building of agriculturists in the farming of these new crops should be promoted
through KVKs and ATMAs.
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2. Organic Farming in Bihar is being adopted since last few years, but due to lack of
certification facilities and lack of knowledge among the people, the farmers are not getting
the proper market and right prices for their organic produce. The farmers need to be made
aware about certification and to reduce the extra burden being incurred towards cost of
certification. Further, cost of production can be reduced by use of organic manure which is
of good quality and rich in nutrients by the production from various sources like vermicompost and green manure. SHGs can be involved in this activity in the peri-urban areas in
Hajipur.
3. Improving the Agricultural Productivity: - Power availability to agriculturists and local
entrepreneurs will have to be enhanced through the establishment of biomass and coalbased plants. Improved and more scientific methods of farming and an appropriate level of
mechanization without harming labour interests are also required. Impetus to agri-clinics
and the formation of a district network of them is suggested, along with focussed inputs
from ATM and KVK on a regular and sustained basis through communication campaigns
and capacity-building events. Internet-based information systems like e-chaupal should be
established towards this end.
4. Agro/food processing is receiving intense and focused attention at the national level,
the time is appropriate for Bihar to evolve strategies, which will ensure an accelerated
growth of the food processing industry which, in turn, would exert the demand pull for the
agriculture sector to grow, increase processing, reduce wastage and ensure value addition
in perishables like fruits, vegetables, meat, fish and poultry. Vision 2015 for Bihar specially
sets target for reducing wastages to about 15 per cent and increase the level of processing
from the present negligible levels to at least 10 per cent.
5. Promotion of Dairy-based Industries: There is a tremendous demand for milk and its
products in the whole of Bihar. It is with the development of the dairy sector in mind that a
milk processing centre of 1.00 llpd is being set up in Hajipur, as well as a 100MT cattle feed
plant. The secondary processing of milk into different dairy-based products has potential in
this city, which is supported by COMFED. SHGs can be involved in the secondary processing
enterprises. However, this will have to be supported by improved veterinary services in the
area.
6. Greater Access to credit to famers and small entrepreneurs: - There is urgent need to
create a complete ecosystem for credit on easy terms to marginal farmers and small and
micro entrepreneurs, which will assure them regular and timely working capital, while
taking into account the risks faced by them. The most vital element in this is changing the
mind-sets of bank personnel in the sanction of such loans.
7. Supporting infrastructure to improve business linkages and prevent produce loss: The development and strengthening of region-specific supply chain infrastructure and
linkage for prevention of losses in the agricultural sector is essential for better business.
The district has very good potential for vegetable & Fruit production. However, storage
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systems for fruits and vegetables are very inadequate. Most of the produce after harvest is
immediately transported to the markets within and outside state and some to the
processing units mainly for fruits. This factor deprives farmers from reaping benefits for
their produce on the one hand and also does not help generation of employment. Hence, the
strengthening of preservation infrastructure and food processing units would meet the bipronged strategy of effective and economic use of local produce on the one hand and create
employment at the urban level on the other.
8. Alternative to Repealed APMC Act: In 2006, the government of Bihar repealed the
Agricultural Produce Marketing Committee (APMC) Act. However, private sector
investment in agriculture has been minimal, with the lack of development primarily caused
by poor governance. Consequently, many of the mandi facilities are still being utilized by the
traders. Because the traders activities are now completely unregulated, non-transparent
transactions and price collusions are even more pronounced than they were under the
APMC system. Because of the lack of alternative marketing channels, small-scale farmers
have no choice but to utilize the current trader-dominated marketing system despite the
rampant exploitation. The Department of Agriculture, GoB needs to remedy this situation by
giving due consideration to the proposal of the Committee headed by Shri R.C.A. Jain to
upgrade marketing of produce. The establishment of a terminal market near Patna at Bihta
is a step in this direction. A suitable model of contract farming specific to crops can be
adopted to solve the problems of small and marginal farmers.
9. Development of tourism potential of Vaishali district. Although Vaishali district has
many tourist destinations, but they are not popular due to lack of promotion of these tourist
spots. There is a need to identify and develop these tourist destinations and upgrading them
with world class facilities, in order to attract a higher footfall.
10. Identification of Craft Cluster Under the MSME-AHVY scheme, craft clusters have been
identified all over India which are facilitated with support from the government for
activities to develop the sector in the region. In 2010, 29 handicraft clusters have been
identified in Bihar. In Hajipur a wooden craft cluster has already been identified. A similar
cluster for sikki grass weaving should be identified and established in the Vaishali-Hajipur
region to promote this craft also.
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According to the World Bank Report4 on development in Bihar, the below average Investment
climate in Bihar can be attributed to the institutional, economic, political and infrastructural
environment that shapes the manufacturing sectors operations and expectations.
In terms of physical and institutional environment, Bihar ranks the lowest among the states of
India. For most of the other IC indicators such as penetration of infrastructure, financial systems
and workforce quality, Bihar is ranked at the bottom or close to it. This can be attributed mainly to
following reasons.
However, in recent times substantial improvement has been made to improve the investment
competitiveness of the state and create an enabling environment for local business to grow. Owing
to these positive developments Vaishali-Hajipur region has been sanctioned with the following
investments in various sectors of economic development.
Figure 13: Proposed Investments approved by SIPB in Hajipur, Vaishali
102
1.7
76.5
500
734
Healthcare
275
0
200
400
600
800
Source: - Proposals Approved by State Investment Promotion Board (SIPB) for details see Annexure 3
4Comparative
Final Report
analysis done for Draft Interim Report: Local Economic Development Assessment for Bihar
Page 81
Efforts should be made by the district and city administration to establish linkages with these units
in terms of employment and promotion of forward linked units like sack stitching, manufacture of
packaging material, transportation and so on.
Project Cities
Patna
Munger
Hajipur
Gaya
5Comparative
Final Report
analysis done for Draft Interim Report: Local Economic Development Assessment for Bihar
Page 82
Percentage of Responses
stated as serious concern (non
weighted)
2000-2005
2005-2011
59
51
57
52
60
56
55
45
49
52
55
43
59
51
70
68
87
80
74
61
83
75
82
72
LEGEND
Not
Serious
<
50%
Serious
Final Report
Page 83
The following points are put forward regarding each of the above indicators of the Business
perception of Investment climate in the Vaishali-Hajipur Region.
a) Investment Climate: With regard to quality of inputs & infrastructure, the business perception
regarding internet connectivity, adequate water availability and smooth roads have improved,
while the perceptions regarding quality of stable power supply, availability of credit/ loans
from banks and having a disciplined and well-trained work force, have deteriorated in the
period 2005 2011, as compared to the period 2000 - 2005. This implies that the Draft CDP
recommendations on improvement of the citys infrastructural facilities should be implemented
with seriousness by the State/ ULB and other stakeholders and skill development activities in
line with GoIs National Skill Development Mission and SJSRY are to be promoted on a large
scale. Also, banks need to be sensitized about the lack of availability of finance and their
reluctance to lend to entrepreneurs.
b) Simplicity of Rules and Procedures: With regard to simplicity of rules and procedures, the
perception in terms of environment regulations and setting up of new ventures is positive,
whereas their views about payment of taxes have deteriorated from the 2001-05 period. This
could be simplified through the implementation of the proposed single window system. The
MSME and the Industries department could also run a communication initiative to make these
systems intelligible for the layman.
c) Orientation of the Government: Orientation of the Government towards reforming for a
better future and political leadership is improved during period 2005 2011, while business
perceptions about senior bureaucracy and politicians have also improved marginally. Measures
for promoting transparency and approachability through E-governance and communication, as
well as promoting the use of RTI and other similar instruments and capacity building of political
and bureaucratic functionaries as suggested in this and other reports, would further improve
the situation.
d) Responsiveness of the government: Interestingly, the business perception regarding ease of
meeting and speed of decision making by the State Government has improved over the period
of time. However, the same is not the case with the local government the perception towards
their responsiveness to the requests and needs of entrepreneurs to resolve grievances has
taken a fall, especially that of the ULB functionaries. On a broad level, the institutionalization of
a performance management system within the local government, which would make the
officials accountable for their actions, would be the appropriate instrument to deal with apathy
and inertia among public functionaries to some extent. Appropriate capacity building initiatives
as suggested in this report, the single window clearance system and proper implementation of
RTI would also make a positive difference to this aspect. Frequent transfers are not the panacea
for these ills.
e) Corruption: Corruption level in local government is perceived as quite a bit higher than that at
the State government level. Some of the measures already suggested above would help improve
this aspect.
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f) Property rights and ease in transactions: The perception about the safety of immovable
property has become slightly better. However, the situation with regard to intellectual property
rights has worsened.
Employment
Generating
Potential
Women
Employment
11
2.5
13.5
3
4
5
2
3
3
2
3
2
2
2
2
1
1
1
1
1
1
0
1
1
0
0
0
8
12
11
2.5
11.5
2.5
2.5
11
2.5
11.5
Handicraft Items
10
10
Bakery
2.5
2.5
12
11
Carton Manufacture
2.5
9.5
12
2.5
2.5
11
13
Rice Mill
2.5
2.5
2.5
10.5
Potentiality
Index
Demand
Condition
3
Competition
* Factor
Availability
2
Sector/Main
Production
Sl No
Raw material
availability
Government
Policy &
Procedure
(Environmental
friendliness)
Score or
Total
* Factor Availability rating on a scale of 1-3 has been assigned on the basis of factors in the following table.
On the basis of the above analysis it may be seen that the agri-based and food processing industries,
are the ones which have the best potential. While the handicrafts business has potential, the
forward and backward linkages, is a deterrent to its promotion. However, the existing artisans may
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Page 85
be encouraged and strengthened with appropriate marketing systems to perform more effectively,
especially under the cluster development based system being promoted by the Central and State
Governments.
Table 28: Factor Availability for Potential Businesses in Vaishali
Infrastructure
Knowledge Resource
Credit Availability
Capital Resource
Human Resource
Material Resource
Sector/Main Production
Sl No
* Factor Availability
Banana Fibre
Detergent Production
Handicraft Items
10
Bakery
11
Carton Manufacture
12
13
Rice Mill
Final Report
Page 86
4.2
As suggested in Chapter 3, agro-based food processing industries are identified as a core economic
activity of Hajipur and its hinterland. According to a conservative estimate6, the current market for
food in Bihar is a huge Rs 40,000 crore. At the estimated national growth rate of consumption of 7
per cent, the food consumption market in Bihar is estimated at Rs 56,000 crore in 2010 and Rs
83,000 crore in 2015.
Table 29 : Market for Food based Industries in Bihar (in Rs crores)
Value Chain Analysis: The following is an attempt at mapping out the broad demand and supply
chains for the goods and services based on consultations with the industry and market players.
Respective value chains have been identified based on discussions with local retail and whole sale
dealers, industry and business associations and local officials.
Food Processing in Bihar; The Road Ahead, PG 39, Prepared by ILFS and NSSO 60 th round data
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Page 87
4.2.1 Value Chain & Demand Analysis for Food Processing Sector
India is the second largest producer of Fruits and Vegetables (F&V), accounting for 82 million tones
and 10.9% of global fruit production, and 47 million tonnes and 8.4% of vegetables production. The
prominent processed items are fruit pulps and juices, fruit-based ready-to serve beverages, canned
F&V, jams, squashes, pickles, chutneys, and dehydrated vegetables. The major products processed
and exported are dried and preserved vegetables, mango pulp, pickle, and chutney.
Vegetable and food grain processing has been done in Vaishali-Hajipur region in scattered units.
Although the region is blessed with ample production of a variety of vegetables and lentils (Vaishali
district is one of the leaders in brinjal, cauliflower, mango and litchi production), lack of
modernization in processing (mainly secondary processing) and lack of know-how towards value
addition prevents the entrepreneurs from fetching higher profits.
Figure 14: Supply Chain for F&V and Agro based Marketing
Figure 15: Value Chain for Fruit & Vegetable and Other Agro based Processing
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Currently, vegetables and fruits produced from farms are picked by the village commission agent at
very low prices to producers. These are then transported to local mandis and weekly haats and a
larger portion is exported to neighbor states like UP, MP and region of Bihar and Jharkhand, where
it is sold to retail consumers on further commission basis. This process is disadvantageous both to
farmers (who are typically paid around 40%-50% of retail price) and consumers (who are paying
more for commission than for product itself). Lastly, this system leads to wastage as high as 2025%.
Demand Potential: This sector is poised to grow at the rate of 8-10% annually and demand is
expected to come both from domestic markets as well as for Exports. Efforts should be made to
develop this sector with more emphasis laid on organized industries for secondary processing
(making potato wafers, squashes, preserves, vermicelli, atta, besan, sattu, frozen and dehydrated
products). Currently, most farm produce is directly exported to other states for further value
addition, hence contributing to economic prosperity of those states (Maharashtra, UP, AP etc.).
The Vaishali-Hajipur region is one of the cattle concentrated areas and there is distinct scope for
Dairy based activities, due to the huge demand for milk and milk-based products in the region.
Presently, owing to limited technological inputs most of the milk is just given primary treatment
and consumed in the local market.
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Primary Processing of milk is explained in diagram below. The milk processing plant proposed in
Hajipur, with the capacity of processing 1 llpd, will prove to be of great help to the dairy farmers
and co-operatives in this region. However, several other steps as enumerated later below, need to
be taken to manage the value chain in a way that will maximize benefits for the producers.
Figure 17: Primary Processing of milk
During the discussions with local entrepreneurs and stakeholders, it emerged that there are no
small or medium scale secondary processing facilities in the city or district. (See Figure 18 above
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Page 90
for secondary processing of milk). The milk processing industry was identified as one of the most
suitable agro based industries for this region. Since the basic ecosystem for milk based processing
is already being put in place in the Vaishali-Hajipur region, there is greater likelihood of such
industries flourishing i.e. ice-cream factory, Butter & Ghee processing units and Milk Culturing
units.
Demand Potential: Milk processing capacity in India has grown at a CAGR of 4% with almost
negligible growth in Bihar. Bihar produces about 2.9 million MT of milk out of which only 9-10% is
produced by COMPFED (Sudha Dairy). However, technology being used is obsolete with no primary
processing and cooling facility at the farm/village level. Private investment needs to be attracted to
bring latest technology into primary processing as well as create industries for secondary
processing with Hajipur itself instead for exporting milk for such value addition.
Promotion of the Dairy Industry in Hajipur:
The reasons for promotion of the dairy industry in Hajipur are as follows:
Per capita availability of milk in Bihar during 2005-06 was 154 gms per day against a
national average of 241 gms per day. The Indian Council of Medical Research has
recommended the minimum requirement of 220 gms of milk per person per day indicating
a shortage of around 66 gms per capita. Shortage of milk is chronic in Hajipur.
COMPFED is already operating in Vaishali district. Under this programme, the following
activities are proposed and some are already being implemented in Hajipur:
The above measures will facilitate the growth and success of the Dairy Development in Hajipur. Sale
of milk value-added products manufactured through secondary processing MEs can be done
through Sudha booths / kiosks at which local vegetables can also be stocked based on Delhi Safal
pattern. SHGs can be involved in the secondary processing and marketing activities. They could be
financed through the SJSRY for this activity.
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4.2.3 Value Chain & Demand Analysis for Grain Milling Sector
Grain-based products are the largest contributors to the Food Processing Industry, accounting for
over 28% to 30% of revenues. The total rice milling capacity in the country is about 200 million
tonnes per annum. Over 90% of the produce falls under the segment of Primary Processed Food.
Demand Potential: Currently there are 58 roller flour mills (about half of which are closed), 4872
rice mills (out of this only 51 modern cum modernized mills). The food processing in Bihar today is
mainly in the unorganized sector with more than 1000 bakeries & confectionaries and small-scale
grain processing continuing in the unorganized sector. The estimated growth rate of food
processing sector in Bihar during past two to three years has been 3.46% as compared to all India
figure of about 7%.
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There is need for scientific milling and processing of food grains like rice, wheat, maize and pulses.
In case of rice and wheat, old technologies like hullers or shellers are used for milling resulting in
lower recovery and consequently lower value. Most of the units are very small in their scale of
operation and using very primitive technology. Most of value addition (like de-husking, polishing,
packaging etc.) is done outside the Vaishali-Hajipur Region, which is a loss to the local economy.
These value addition activities need to be brought within the city economy through the creation of
such a facility in the region.
There is a proposal to convert Kisan Bazaar Samitis located in the towns of Bihar into Rural
Business Hubs. The local traders have stated that the godown and warehousing space provided
here is very limited for private individuals. Infrastructural facilities are sadly lacking. Under the
Rural Business Hub Initiative proposed, this area could be refurbished with the injection of funds so
that primary producers and traders could have access to proper marketing and processing
facilities in one area. This could also be extended to secondary processing with the adoption of the
Food Park scheme proposed by the Central Govt. and GoB, under which all the activities of the value
chain of primary produce are located in one large complex, thus cutting down transportation costs
and wastage, which are resulting in poor returns for producers.
4.2.4 Value Chain & Demand Analysis for Fish Processing Industry
Fisheries in the Vaishali-Hajipur region are very limited in their scale of operation and largely done
for local consumption. However, the availability of large number of water bodies and the large
number of cold storages in the area, makes a strong case for Fish processing industries in this
region. No fish processing industries are located in the state and further there are no proper
marketing facilities are available for fish produce. However, this sub-sector is poised to grow at the
rate of 3.9 % and hence presents a huge opportunity for the state to cash into, with appropriate
strategies and market linkages.
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As per the ULB administration, the area which comes under agriculture and water bodies in Hajipur
is approximately 24.4% of the land cover. The major water bodies in city are listed below:
Table 30 : List of Major Water Bodies in Hajipur
The Fisheries Department contracts out some of the ponds for pisciculture. The prospect of
developing the fish processing micro-enterprises and industry in this region may be a feasible
proposition. In addition, from among the existing fishing entrepreneurs and traditional fisherfolk,
there are wastes from cutting/ processing fish and trash fish unsuitable for human consumption,
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which can be processed to produce dried fish meal which is used as protein supplements in
compound poultry feeds as well as a fertilizer. The linkages between the existing and proposed
poultry feed plants in the region and the fish processing entrepreneurs and co-operative societies
will have to be created with the help of the Department of Animal and Fish Resources, GoB and the
DIC.
4.2.5 Value Chain & Demand Analysis for Biomass-based Energy Generation
Energy is a critical input to the development process. Where on the one side, industrial
development is not possible without growth in power availability, on the other side, agriculture
productivity is impacted by extent of irrigational facilities which cannot be increased unless power
is available. The state of Bihar has historically lagged behind other states in terms of growth in
power sector, but the recent thrust given to the sector and new power projects launched have
improved outlook for power sector in the state.
Market
India as well as Bihar has had negative energy balance making it a net importer of energy. Bihar
imports power from Jharkhand. Even though several power projects have been launched by the
state government, it still falls short from the demand. This creates market for development of
lateral projects including renewable energy projects. Currently, the power spectrum of Bihar
consists of only hydel and thermal power.
Figure 21: Growth of installed power capacity in Bihar vs Rest of India
Value Chain Analysis: Biomass based electric power generation technologies succeeded in niche
applications such as supplying electricity in decentralized location and industries generating
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Page 95
biomass waste. Biomass energy cost is highly variable, depending upon the source, location etc. The
base price of coal in India is Rs. 48 per Giga Joule (GJ) and biomass is Rs. 72 per GJ.
Figure 22: Value Chain for Renewable Energy
Raw Material The crop residue and farm wastes like husk of rice and wheat, straw, seed coats of
oil seeds, stalks and sticks of fibre crops, pulp and wastes of plantation crops, peelings, pulp and
stalks of fruits and vegetables are the raw materials used as input for direct cogeneration of
electricity through this process.
Investment Potential - Typical plant sizes at present range from 0.1 to 50 MW. Co-generation
applications are very efficient and economical.
Capacity
Rice
husk
10 MW
power Plant
Investment
Rs 50.8 Cr
Employment
20
Tentative IRR
25%
Biomass-based power plant in at Giddha Industrial Growth Centre, Bhojpur Distict, Bihar
The first biomass-based multi-fuel captive power plant in Bihar is being constructed at Giddha
Industrial Growth Centre. The plant is due to come online in December 2011. The plant will use
rice husk as fuel. When rice husk is not available, it will burn coal. The plant is being established
by a paper mill which would manufacture paper for cardboard and craft paper. The power plant
is being set up with a 60% subsidy from the state government, payable on purchase of plant and
machinery for captive power plants of 1-3 MW capacity, and using biomass as the fuel in
accordance with the states Industrial Incentive Policy 2011. This policy also provides for a 50%
subsidy on the purchase of plant and machinery for setting up captive power plants using coal.
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Page 96
4.3
Marketing Assessment
There are more that 7,000 rural markets and Haats in addition to 95 APMC mandis and 32
principal market yards7. Less than 13% of these rural markets have their own buildings and
premises for basic grading and sorting facility. Marketing channels for food grains and fruits and
vegetable is largely governed and supported by chain of intermediates (village agents, arahatiya,
wholesaler agent) from farm to end user.
Most of the agricultural produce is marketed through weekly/ periodic markets (haats) as and
when the produce is ready. Due to lack of storage and transportation facilities, most of the produce
is flooded into the market for shorter span, thereby creating low profit margins for farmers. In
terms of the various marketing costs borne by different players, retailers and farmers typically
bear the cost of sorting and cleaning, farmer and village intermediary bear the cost of packing and
bagging, intermediaries bear the cost of weighing, loading and unloading and wholesalers mainly
bear the cost of storage. If any, transport charges are shared between all the players in varying
proportion, physical handling/losses are borne by farmer, wholesaler and retailer and market
charges by the intermediaries.
Final Report
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Table 31 : Major Markets of Vaishali-Hajipur Region and Production Potential of major commodities
in hinterland
Commodity
Size of Agri. Market
Market Center
Modal Price
Production in Vaishali (as
(daily arrivals)
for commodity
Rs/Quintal
on 2008-09)
Food Grains
Rice 4.6 tonnes
Hajipur market
1200 - 1295
90765 MT (Rice)
(wheat, rice,
Wheat 5.3 tonnes
and
Patna
900-1000
150493 MT (wheat)
pulses, oil
Maize
market
50490 MT (maize)
seeds)
Cash Crop
and Allied
Sectors
Fruits
Vegetables
Source
Hajipur market
Mango
Guava
Banana Ripe 3 tonnes
Banana Green 9.9
tonnes
Litchi
Onion 62.8 tonnes
Potato 3.5 tonnes
Other vegetables
Hajipur market
3600
600
9400 MT
77977 MT (Mango)
11316 MT (Guava)
26916 MT (Litchi)
145683 MT (Banana)
650
Hajipur
and
Market
market
Patna
450 - 595
585 - 600
1000
32475 MT (Onion)
212897 MT (Potato)
89234 MT (Caulifower)
68881 (Brinjal )
From the above table it may be seen that wheat, potato and banana volumes are high and that
trading and primary and secondary processing of these commodities offer valuable scope for local
economic development on a regional basis, through processing and agri-marketing initiatives.
4.4
As suggested in Chapter 2, agro based food industries are the core economic competitive sector of
the local economy. Locationally, Vaishali-Hajipur region is blessed with rich agricultural belt of the
state and strong connectivity to large urban center like Patna, thereby also providing it a good
market in vicinity. The local produce from Vaishali-Hajipur region is either channelized into the sale
of fresh produce through the Hajipur Bazaar Samiti. Some portion of produce is also channeled
towards nearby mandis like Patna Mandi from where it is directed towards major wholesale
mandis of Naya Bazaar, Delhi and Postha, Kolkata. Quantity and state of (after processing, if any)
goods varies from product to product. Although Vaishali-Hajipur region is situated at the very heart
of the vegetable producing regions of Bihar, the paucity of food processing industries for secondary
level treatment results in transfer of most of the local produce to other areas.
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An integrated and efficient supply chain mechanism is non-existent in Bihar. The problem in supply
chain starts with limited and bad linkages of production areas with storage areas and processing
plants. Secondly, storage capacity is very limited and cost of storage is almost three times as
compared to other parts of the country due to use of gensets during frequent power outages.
Processing of agricultural produce (grading & sorting) is largely done in open through labor in
Mandis, with almost nil pre-cooling facilities, appropriate packaging and packaging facilities.
Figure 25: Fruit- Producing Regions in Bihar
Final Report
Page 99
Therefore, to address the need of better supply chain mechanism and increase better business
linkages a cluster based approach is proposed, which involves creation of requisite infrastructure
across the value chain with involvement of stakeholders. This will focus on a zone which will
provide economies of scale and deal with multi-products.
A number of food processing units including bakeries, juice, cream, namkeen production units are
present in Hajipur. While several food-processing industries are already in operation, many other
proposed ones are due to start, which includes the activities in the proposed Agricultural Export
Zone including the activities of the proposed in this region. While there is hardly any availability of
vacant land (0.5 acres) in the first Industrial Area of BIADA, around 6.26 acres is available in the
EPIP Hajipur.
Hajipur can be transformed into the food processing hub of Bihar. Given the growth potential of
Hajipur along with the district productivity and connectivity to Patna, there is enough market for
more food processing units to come up in the region. Following are the core agricultural products of
the Vaishali-Hajipur region, along with scale of the business operations proposed to boost local
economy.
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Table 32 : Matrix Showing Scale of Business operation of Typical Industrial unit in Vaishali-Hajipur region and major business linkages with Major Production
Center
Business Linkages
Food Processing
Production capacity
of Vaishali-Hajipur
Region (2008-09)
123213 MT (wheat)
Primary
Processing
90765 MT (Rice)
Food
grains,
Cereals &
Pulses
(Wheat,
Lentil,
Maize,
Grams,
etc.)
Resource
Base Cluster
Vaishali
District and
neighboring
regions
Potential
Markets
Domestic
markets &
regional
Exports
1933 MT (Mustard)
Type of
Industry
Land
require
ment (in
sqm)
Spice grinding
150
Mustard Oil
Milling
100
2.25
25
Negligible
Secondary
Processing
Domestic
markets &
regional
Exports
72 tonnes
per annum
34%
17%
Vegetable oil
Refinery
800
60
75
3000
16
1200
tonnes per
annum
Texturised
Soya Protein
150
14.15
60
2000
12
600 tonnes
per annum
24%
Maize flakes
150
1.9
25
1200-1300
250 tonnes
per annum
36%
Macaroni
manufacture
250
2.5
25
2000
120 tonnes
per annum
28%
Bakery
100
2.75
20
500
72 tonnes
per annum
30%
Biscuit
Making
75
3.15
20
500
50 tonnes
per annum
22%
144 lakh
cones per
annum
Ice cream
cone
manufacture
Final Report
28%
50490 MT(Maize)
Vaishali
District and
neighboring
regions
Tentati
ve IRR
50
Page 101
700-750
40%
Food Processing
Production
capacity of
Vaishali-Hajipur
Region (2008-09)
Resource
Base
Cluster
Type of
Industry
Land
require
ment
(in
sqm)
Total
Capital
cost
(excluding
land + civil
cost) in
Lakhs
Power
Requirem
ent (in
HP)
Water
Requireme
nt (in lts
per day)
Manpo
wer
requir
ement
Production
(@ 100%
utilization)
150
12
60
700-750
100 tonnes
18%
Tomato
Ketch-up
250
2.12
25
2000
16
250 tonnes
per annum
34%
Potato &
Banana Chips
250
2.05
10
1500
50 tonnes
per annum
31%
Potato
Products
70-75
5.0
35
1000-1200
200 tonnes
per annum
18%
Potato
Processing
100
2.5
10
2000
40 tonnes
per annum
35%
Mango
Processing
100
1.72
800-900
72 tonnes
per annum
17%
Dehydrated
Vegetables
500
21.85
50
2000
22
400 tonnes
per annum
18%
Chilli Pickles
45-50
0.6
Negligible
600
20 tonnes
per annum
22%
Potential
Markets
Primary
Processing
Tentati
ve IRR
32475 MT (Onion)
212897 MT (Potato)
3799 MT (Tomato)
Vegetable
s
& Fruits
11316 MT (Guava)
77977 MT (Mango)
( Potato,
Tomato,
Mango,
Banana)
145863 MT
(Banana)
Vaishali
District and
neighboring
regions
Secondary
Processing
Fish
Milk
Primary
Processing
Vaishali District
Domestic
markets &
regional
Exports
200 tonnes
per annum
Vaishali District
2.5 lakh
400
17.5
75
2000
10
litres
Primary
Processing
72 tonnes
Milk Toffee
60-65
1.13
Negligible
Negligible
6
per annum
Source: - Primary and Secondary Survey of Industries (June 2011) and Project feasibility models for Agro based Food Processing units by Ministry of Food Processing.
Final Report
Fish
Processing
Coffee
Flavored Milk
250
6.2
Page 102
60
5000
13
23%
17%
25%
4.5
Recommendations
Through a Cluster based approach under PPP mode and linking various components (training,
capital inflows, processing technology, storage, marketing etc) of supply chain management for core
sectors, the Vaishali-Hajipur region economy can be revived. This can help in reviving much-needed
handholding for small and medium enterprises critical to ensure employment generation, social
security and economies of scale. Various economic clusters could be identified in and around
Hajipur and subsequently the following steps need to be taken:
i)
Initialize the investment process by channelization of public funds for development of core
infrastructure in potential clusters to begin with
ii)
Provide liberal financial support to private investment in basic infrastructure in the food
processing sector like farm level pre-cooling facilities, cold chain, packaging, etc.
iii)
Identify (assigning responsibility & funds) institutional support to develop these economic
clusters and provide a policy environment which stimulates growth.
However, on the basis of the Demand and Market Analysis conducted, the scale of business
operations of typical industrial units in Vaishali-Hajipur region and the business linkages between
resource bases, production centers and markets, for the purpose of this report, the following
economic sectors and prospective entrepreneurial ventures are recommended for promotion,
development and strengthening.
Page 103
The following criteria should be adopted for identifying focus crops in the cluster:
The geographical limit of the identified cluster may be suitably delineated based on the diversity
and quantity of raw material available and contiguity of the potential area for future expansion.
Also, comparative advantage of crops in terms of processability, marketing opportunities, seasonal
advantage, local consumption, export/import substitution, scope for intensification and
productivity improvement should be duly taken into consideration. Since the Food Park would
require continuous supply of large volumes of raw material, this would necessitate investment in
food processing infrastructure, strengthening of supply chain to reduce wastage, prevent quality
deterioration and timely availability of various focus crops. An appropriate product mix should also
be chosen based on raw material available in the cluster and their scope for processing and value
addition.
The development of a FP needs a diverse and sustainable agricultural raw material supply region
serving as a catchment area for sourcing of agricultural produce. In addition to identification of
focus crops in the cluster, it is also important to analyze the existing marketing system and value
chains to identify the flow of agricultural produce and identify critical gaps so as to identify key
interventions that would be taken up by the Food Park so as to build an efficient supply chain for
various units in the food park. Based on the supply strengths of the cluster, it would then be
important to identify location of primary processing centers and collection centers within the
catchment area so as to secure smooth flow of raw material to the processing units in the FP.
4.5.1.2 Establishment of a Cluster-based Multi-product Food Park in Vaishali-Hajipur Region
There is sufficient justification and reason for the establishment of a Multi-product Food Park
(MPFP) in the Vaishali-Hajipur Region one that is both grain and pulses-based and fruit and
vegetable-based. The reasons are as follows:
Vaishali is a major wheat producing district of Bihar @ 150493 MTs (2008-09) and also
produces maize in large quantities @ 50940 MTs (2008-09)
There are already 97 rice, wheat and pulse-milling and other food-processing units in
Vaishali-Hajipur region.
There is more than sufficient production of vegetables and fruits in the region, especially
potato, brinjal and cauliflower.
This region is in very close proximity (10 Kms.) to proposed and existing terminal markets
in Patna and Bihta (proposed)
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The productivity of the land and the seasonality of the crop cycles of all the crop groups in
this region is such that there will be almost year-round availability of crops / raw material
for milling and / or processing. The harvesting seasons for various crops in Bihar is shown
below:
Table 33 : Crop Seasonality in Bihar
Crop
Season
From
To
Pulses
Kharif
November (Beg)
December (End)
Rabi
March (Beg)
March (End)
June
August
Mango
Rice/Paddy
Kharif
November (End)
December (End)
Wheat
Rabi
March (Mid)
April (End)
Potato
Autumn/Early
Mid November-December
Winter/Main
February-Early March
Spring/Late
Late March
Guava
With sound post-harvest management techniques in place, there should be a steady supply
of crop produce the whole year round for the Food Park processing and production to be
sustained in a planned manner.
The product-mix from the Multi-product Food Park should be such that all possible regional
produce of the area can be absorbed, processed by the units located in their area itself, and
marketing linkages built in order to reduce distance and transaction costs. There is already
evidence of a supply-driven product mix in the region these should be expanded and
upscaled with appropriate planning, management and technical inputs from government
and non-government institutions put in place for this purpose i.e. KVKs, Rajendranagar
Agricultural University, Agri Clinics and ATMA.
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Source: Mega Food park Scheme, MoFPI, GoI and Feedback Analysis
These stakeholder groups are already present in this region at village, block and district level, and
a few at state, inter-state and national levels. One of the main roles of the SPV, to be created for the
project management of the proposed MPFP, will be the integration of these stakeholder agencies to
function seamlessly across the value chain of the MPFP venture.
The Ministry of Food Processing can provide financial assistance in form of grant-in-aid @ 50% of
project cost excluding land component in general areas, subject to a maximum of Rs. 50.00 crore for
setting up of Mega Food Parks. Many states are also taking up these projects on Public Private
Partnership mode. The GoB, in their vision for the Food Processing sector in Bihar has already
stated their plan to establish a Food Park in the Muzaffarpur Vaishali region. Though this
proposed Food Park may be located in the Hajipur Industrial Estate, the EPIP or the AEZ or
wherever else the State and local administration can provide land for it in the Vaishali-Hajipur
region, it will provide employment to the Hajipur population, provided they are suitably skilled.
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Weigh bridge
CA chamber
Pressure ventilation
Incubation chambers
IQF facility
Variable humidity store (Additional
Equipment) 6,000 MT
Pre-cooling units
Effluent treatment plant
Packaging R&D & quality control lab
Training facility
ii)
At Production Area and Cluster level (cluster of 10-15 villages): Field Collection
Centres (FCCs) will need to be created at farm level to facilitate for pre-cooling, sorting,
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grading, cleaning, washing, packing and minimal processing along with provision of mobile
pre-cooling vans and reefer vans for transport of the produce from farm to the Primary
Processing Centres (Cluster 5-15 FCCs) and from PPC to retail/processing units to Food
Park at District level. This Supply chain mechanism would reduce wastage, improve quality,
provide sorted material for table and processing purposes and result in increased income to
farmers. Approximate area for PPC should be around 2-5 acres, which can be developed on
PPP basis.
iii)
iv)
v)
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of India Institutions such as National Seeds Corporation (NSC), State Farms Corporation of
India (SFCI), Indian Farmers Fertilizers Cooperative Ltd (IFFCO), Krishak Bharati
Cooperative Ltd. (KRIBHCO), Small Farmers Agri Business Consortium (SFAC), State Agro
Industries Corporations etc. will be approached by the DoA, GoB to engage the Agripreneurs as their authorized dealers on preferential basis without affecting their existing
network. The ABC will necessarily have to be located near the MPFP in Hajipur and it should
be seen to that there is no duplication of services provided by the two. The guidelines of the
Revised Agri-Clinics and Agri-Business Centres (Acabc) Scheme 2010 are available at the
following link: http://www.agriclinics.net/guidelines2010.pdf
vi)
4.5.2
With the establishment of the MPFP, it becomes essential to promote other livelihoods and support
services which will bolster this industry like Floriculture, Horticulture, Nurseries and Organic
Farming. These activities are already a part of the National Horticulture Missions plans in the state
and therefore funds are available for the same it is just a question of accessing them.
4.5.2.1 Organic farming increases the long term agricultural productivity by the use of advanced
techniques of farming, planting methods, quality seeds, bio-fertilisers etc. There is adequate
quantity of animal dung, compost, rotten crops and fodder for use in organic farming. Organic
farming has been taken up as one of the priority initiatives by the state government with a sum of
Rs. 255 crore being sanctioned organic farming promotion within a span of five years. Government
is developing organic grams (organic villages) for cultivation of organic crops. Steps should be
taken to promote agricultural productivity in Vaishali district, where in:
Organic and vermicompost fertilizers (produced by MEs and SHGs) can be made available to
farmers this can be linked to SHG activity
Training on organic farming can be provided to farmers this can be linked to skilldevelopment providers and NGOs
Seed replacement programs can be organized to distribute quality seeds among the farmers
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Marketing can be done through appropriate channels established by the ABCs and MPFP
The agri-clinic network and work of ATMA and KVK in Hajipur can be made largely responsible for
the above strategies.
4.5.2.2 Floriculture: The Vaishali-Hajipur region has the 2nd rank in the state for flower production
@ 486.29 tns. (2008-09) with the production of marigold, jasmine and tuberoses being on the
higher side as compared to that in other districts. The table below shows the current production
figures for major flowers produced in Siwan:
Table 36: Area and Production of Cut Flowers in Vaishali and Bihar in 2008-09 (in tonnes)
Region
Rose
Marigold
Vaishali
Bihar
4.83
66.54
332.51
4429.59
Jasmine
(Bela)
16.9
270.37
Tube Rose
Others
Total
36.18
364.75
121.6
982.50
486.29
5949.81
Market Assessment: Cut flowers produced in India are used within the country as well as
exported. The flowers that are traded within the country are usually rose, marigold, jasmine,
gladiolus, carnation, orchids etc. Currently roses account for 90% of total flower exports in India.
However, there is global demand for a number of other flowers such as carnation, gladiolus, liliums,
Anthurium, gerbera etc. The USA, Japan, Western Europe are the major markets for the flowers.
Besides, Eastern Europe, South Korea, Thailand and Indonesia are also coming up as large
consuming countries.
Value Chain Analysis: The supply chain of cut flowers in Bihar is still unorganised. Flowers are
brought to open yard wholesale markets in major cities where they are sold to large flower chains
or merchants which are numbered. The flower merchants distribute them to local retail outlets
after significant mark up in prices. More than 90% of the flower retailing in the cities happens on
open road sides, with different flowers arranged in large buckets. Not more than 10% of flower sale
comes from the good florist show rooms, where flowers are kept in controlled temperature
conditions, with considerable attention to value added service.
Table 37: Average market price for major flower crops
Flowers
Marigold
Jasmine
Crossandra
Chrysanthemum
Tuberose
Rose
Gladiolus
Carnation
Gerbera
Orchids
Liliums
Final Report
Unit
kg.
kg.
kg.
kg.
kg.
kg.
doz.
doz.
doz.
each stem
each stem
Anthuriums
each stem
15-45
Supply Scenario: The cut flower industry is still not well established either in Bihar or India as a
whole, and has gained importance only in recent years. The production of flower for commercial
purposes in Bihar is very low as compared to other states like Karnataka, Tamil Nadu and West
Bengal. Moreover the flowers that are produced are mostly the traditional flowers like marigold,
jasmine, tuberose etc. The cut flower industry which caters to the growing market of decoration
and bouquet involves production of rose, gladiolus, tuberose, carnation, orchids and more recently
liliums, gerbera, chrysanthemum, gypsophila etc. There is vast potential for export of these flowers
which fetch high value in the international markets.
Recommendations:
i)
Support through Agri-Clinic Network: Even though there is a market for cut flowers and
the soil condition of Vaishali is suitable for floriculture, the flowers are under protected
from the environmental conditions and biotic and abiotic stress. Hence, technology transfer
needs to be organsied by the agri-clinic network, which should educate the producers about
suitable techniques to optimize quality of flower production.
ii)
iii)
4.5.2.3 Nurseries & Poly/Green Houses: The proximity of Hajipur to Patna is very conducive to
developing a thriving nursery industry in the region, especially if land is procured on the national
and state highways running through the district, on which travelers can stop and purchase saplings.
Under the National Horticulture Mission Plan for 2010-11, there is a plan to establish one nursery
at a cost of Rs. 11.68 lakhs. The saplings / seedlings sold here should be in keeping with the
varieties of plants which are agro-climatically suited for this area i.e. mango, litchi, banana,
betelvine, cauliflower, brinjal, marigold, jasmine, tuberose tubers and so on.
Cultivation of vegetables/flowers under controlled conditions can also be established by
constructing Hi-Tech and Normal green houses, polyhouse/plastic tunnel/ shade nets in Vaishali
district to produce vegetable/flowers for sale during the off season. This has already been
implemented by Bharat Seeds and could be promoted as an economic opportunity in this region.
The NHM Plan has targeted to establish 5 such green houses in 2010-11 with an outlay of Rs.
11.688 lakhs.
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Source: Base Map Adopted from SPUR report - Bihar Strengthening Urban Management Programme
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4.5.3
Since seed is the delivery system through which almost all scientific advancements get transferred
to the crop production, availability of quality seed, is undisputedly a major factor for improvement
of this sector. It is proposed to achieve 33 percent seed replacement rate in four years for the self
pollinated crops. Strengthening of the seed production and distribution infrastructure has therefore
been stressed in the Annual Plan for 2011-12. During 2011-12, the major focus would be on
ensuring production and supply of recently evolved and high-yielding varieties. The Bihar Rajya
Beej Nigam has an important role in achieving the seed replacement rate targets envisaged in the
road map for agriculture. The Nigam requires assistance for seed procurement, its processing,
storage etc. Bihar Rajya Beej Nigam has an instrumental role in implementation of the Chief
Ministers Crash Seed programme wherein its responsibility lies in timely supply of foundation seed
to farmers. As seed certification is a big issue due to which farmers are unable to sell their products
the Bihar State Seed Certification Agency is to be assisted and strengthened to ensure production
protocol for quality seed production in the state.
There is already a growing number of agri-preneurs who are engaged in the seed multiplication
business in the Vaishali-Hajipur region and in Hajipur City 50-60 households engaged in this
activity are located in Ward No. 30. With the boost being given by the state to the seed production
business, the main factor to be addressed is that the entrepreneurs be given timely support in
capacity building, finance, certification and marketing linkages. The ABCs proposed can be accessed
for help in this matter.
Research and development initiatives are becoming increasingly common to improve the variety of
production of a crop. Hybrid seeds production centres have been established by various public
sector and private sector units in India which produce hybrid seeds of rice, corn, bajra, cotton,
vegetables, sunflower seeds etc. Similarly, a bioseed production centre should be established in
Hajipur on PPP basis such that improved quality of fruits and vegetables, suited to the soil and
climatic conditions of Vaishali, can be produced.
ii)
Artificial Insemination Centre Since, the quality and quantity of input for dairy industry
is dependent on the quality of cattle population in the region, techniques should be used to
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improve on the cattle quality of the region. Artificial insemination centre should be
established in Hajipur for introducing high quality breeds of cattle in the region.
iii)
Veterinary Hospital With the focus on dairy processing industry, requisite facilities
should be provided to support animal husbandry such as veterinary clinics to aid on
medical issues of cattle population in the district.
iv)
Development of Cattle Feed Plant Expansion of the dairy processing industry will
increase demand for cattle feed in the district. Towards this end, there is already a proposal
by COMPFED to establish a cattle feed plant of 100 MTs in Vaishali district. In addition to
this, SIPB has also approved the establishment of two cattle and poultry feed plants in the
EPIP. The cattle feed produced in these plants can be used within this region and the
surplus exported to neighboring districts and further as well.
In the District Development Plan of Vaishali (2011-12), the authorities had planned to invest Rs.
1670.30 lakhs in dairy development. However, there seems to have been no scope of accessing GoI
funds towards dairy development in 2011-12. The scenario may be different in the next financial
year.
4.5.5
The local topographical conditions, high demand position and stakeholder consultations have
indicated that the fisheries sector has much potential in this region. However, there are different
issues which are causing a decline in fish production and need to be addressed for this to happen.
The issues are as follows:
i)
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ii)
Establishment of an organized market for fish trade: Cities like Kolkata which have a
well established fish trade have fish trading zones for wholesale trade of fish. In case the
fishing industry is developed in the region, there needs to be a proper fish vending zone for
trading and bringing together the bulk buyers and suppliers of fish in the district. Hence, as
a planning initiative and to provide support infrastructure to the fish processing industry,
an organized and equipped market for fish trade zone should be established in the region.
iii)
Desiltation of Water Bodies: The Renovation of Govt. ponds can be planned to be done by
the local authorities through the National Rural Employment Guarantee Scheme. This
aspect has found mention in the District Development Plan of Vaishali (2011-12) also.
iv)
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v)
Post-Harvest Marketing: A Scheme is being proposed by GoB to build market linkages and
infrastructure for safe, fast and hygienic transport, in order to develop cold chains to reach
fish to different parts of State and beyond. Common collection centres, small four wheelers,
pickup vans and insulated rickshaw are proposed in this scheme along with ice plants at
some places. As per the norms of the Centrally sponsored scheme on Development of
Infrastructure Post Harvest Marketing, fisheries co-operative societies/NGOs would get
75% assistance from GOI and the rest 25% would be provided by the State Govt. as a special
package. Federations would get 100% assistance from GOI. The 2012-13 District
Development Plan of Vaishali may require to include this component in their plan for
developing the fisheries sector.
vi)
Capacity Building: Skill sets of local farmers and other relevant government and nongovernment personnel in fisheries and aqua culture will need to be developed and
refreshed, especially in more scientific methods of production. This can be done through the
main institutions of CIFE, Mumbai and College of Fisheries of RAU and then further through
extension workers at the district level. In the Road Map outlined for the Fisheries Sector by
the GoB, a Training Centre has been proposed at Patna also. Funds for training to the tune of
approximately Rs. 185 lakhs p.a. are available through the State Department, RKVY and the
National Fisheries Development Board (NFDB).
vii)
4.5.6
i)
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ii)
iii)
Financial Support and Access to Credit: Adequate financial support in terms of access to
micro finance, formation of self help groups and provision of subsidies should be provided
to the beekeepers. Lease schemes can be set up for the equipment and significant capacity
building needs to be done. Pricing and retained margin is a key element of this effort.
Cooperatives and self help groups should be promoted to develop critical mass and
bargaining power. This will remove reliance on loan providers and agents.
Sikki grass weaving is practiced mainly in Madhubani, Darbhanga, Vaishali and Sitarmahi districts
in Bihar and some districts in Orissa and Uttar Pradesh. Sikki grass weaving has not flourished as
well as many other art and craft forms due to the lack of connectivity with the market and
customisation of product design to modern needs.
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Major
Grass
Products
of
Sikki
4.5.7.2
Sikki grass is grown on the banks of river Gandak in Hajipur. It is collected by Harijans in the rainy
season from the banks. The collectors sell sikki grass in the local market or weekly haat to
independent weavers or master weaver of a cottage industry. The weavers process the raw
material and convert them into woven handicraft products with the use of hardly 2-3 tools. The
finished product is sold in the local weekly haat in the market to traders who take the products to
major trading centres of West Bengal, Uttar Pradesh etc.
Wild Sikki Grass is a virtual riverside weed which is cut in bundles and left in sunlight till it turns
supple. Then the golden strands are tied together into lengths of rope. It is further embellished with
dyed strands, woven into patterns of geometrical intricacy, which add elegance to the simple craft.
Major products of Sikki Grass are colorful decorative products, baskets, pouches, folders, table
mats, jewellery boxes, bangles etc.
4.5.7.3
Market Potential
Sikki craft has a variable price range from Rs.15 to 500 depending on the intricacy and the size of
the product. Sikki grass products can fetch a good premium if the link is established with the
handicraft buyer market. In cases where the sikki grass products are showcased in trade fairs and
exhibitions, a comparatively higher premium is fetched by the products.
4.5.7.4
i) Identification of Craft Cluster Under the AHVY scheme, craft clusters have been identified all
over India which facilitates support from the government for activities to develop the sector in
the region. There are 6 craft clusters identified in Bihar. Hajipur already contains an identified
wooden craft cluster. Similar cluster for sikki grass weaving should be identified in Hajipur to
promote the craft.
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ii) Institutional Development There should be a formal and legal registration of the handicraft
co-operatives or federations, organization or special purpose vehicle with private partnership
which acts as an apex organization for promotion and support of handicraft sector in the region.
iii) Mobilisation of Artisans into Self Help Groups The sikki weaving community should be
empowered by formation of self help groups. The self help group will have increased bargaining
power over an individual artisan, as well as it will have capacity to jointly execute bigger orders
which will enable them to handle corporate requests.
iv) Registration of sikki grass artisans The sikki grass artisans should be registered by the
nodal department and identity cards should be provided to them. This serves as a tool for
empowerment and organization of sikki grass weaving artisan community in the region. A list
of registered weavers can be made available on the website of the authority for traders and
buyers so that they can directly connect to the self help groups, weavers. If any subsidy of
government support is announced, the same can be easily disbursed amongst registered
weavers. A study can be conducted of the sikki grass based business in the region, in order to
research ways of promoting it.
v) Establishment of Market Linkages One way of establishing linkages with the market is to
organise specialised trade fairs and exhibitions. A local NGO with the requisite skills can be
appointed to take initiative towards establishing marketing linkages for sikki grass products.
Figure 28: Establishment of Market Linkages
vi) Enhancing weaving capacity of the region Currently the training on the weaving technique
is passed down in the family lineage by women in families of Vaishali. In order to maintain and
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further the growth of sikki grass products in Vaishali, an organized cadre of master trainers in
Sikki grass weaving should be established in the region. This can be done through the AHVY
Scheme.
vii) Integrated Sector Development An organized approach for development of the sikki grass
craft sector can be implemented which will involve development of sikki grass farming, quality
upgradation, design inputs, training of artisans and marketing of the products. Hence, it will
constitute vertical integration of the components of value chain right from supply of raw
material to enhancing and managing the processing activity to the sale of the finished product
to end users.
The town of Vaishali is located at about 35 kms from Hajipur. The following are major attractions in
Vaishali:
i) Ashokan Pillar - Emperor Ashoka built The Lion Pillar at Kolhua. It is made of a highly polished
single piece of red sandstone, surmounted by a bell shaped capital, 18.3 m high. A life-sized
figure of a lion is placed on top of the pillar. There is a small tank here known as Ramkund. This
pillar beside a brick stupa at Kolhua commemorates Buddha's last sermon.
ii) Bawan Pokhar Temple - An old temple built in the Pala period stands on the northern bank of
Bawan Pokhar and enshrines beautiful images of several Hindu gods.
iii) Budha Stupa-I: The exterior of this stupa which is now in a dilapidated condition has a plain
surface. One eighth of the sacred ashes of the lord Buddha were enshrined here in a stone
casket.
iv) Budha Stupa-II: Excavation at this site in 1958 led to the discovery of another casket
containing the ashes of the Lord Buddha
v) Abhishek Pushkarn (Coronation tank): It contains water that was believed to be sacred in
the old days. All of Vaishali's elected representatives were anointed here before their swearing
in. The Lichchavi stupa was located near here.
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vi) Kundalpur: Birth place of Lord Mahavira. 4Km.It is believed that the Jain Tirthankar, Lord
Mahavir was born over 2550 years ago. Mahavir is said to have spent the first 22 years of his
life here.
vii) Raja Vishal ka Garh: A huge mound with a circumference about one Kilometer and walls
nearly 2 m high with a 43m wide moat around them, is said to be the ancient parliament house.
Over seven thousand representatives of the federal assembly gathered here to legislate and
discuss the problems of the day.
viii) Shanti Stupa: On the south bank of the coronation tank, built by Buddha Vihar Society.
Prominence in tourist circuits of Bihar
Bihar State Tourism Development Corporation has identified six tourist circuits in the state, of
which Vaishali district forms a part of three circuits Buddhist circuit, Ramayana circuit and Sufi
circuit.
Figure 29: Tourist Destinations in Bihar
4.5.8.2
The tourism industry is gradually developing into a sizeable industry in Bihar. The traffic of tourists
has been growing in Bihar at a CAGR of 16.7% from 2005. With a fresh thrust of the state
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government on tourism, the inflow of foreign tourists has grown exponentially, where the volume
of domestic tourists has witnessed a sizeable increase as well.
Possible share of Vaishali District: Though Vaishali is a part of the Buddhist, Ramayan and Sufi
circuit of tourism in the state, the share of tourism of the distrist has varied from 0.34% in 2009 to
3.5% in 2005 of the total tourist traffic of Bihar. Evidently, Vaishali falls behind other districts in
terms of current tourism traffic, although there is sufficient tourism potential in the region. This
indicates that there is scope to enhance and develop the tourism activity in Vaishali.
Hajipur being the district headquarters, the support infrastructure and tourist facilities for tourists
visiting Vaishali should be provided in Hajipur. The tourist traffic figures for Vaishali indicate that
the tourism in Vaishali is fluctuating every year to the extent that it follows a cyclical pattern,
peaking every 5th year. However, this trend is visible only in domestic tourists. Foreign tourists in
Vaishali still form a very small proportion of the total foreign tourist traffic of the state. This implies
that there is more potential for domestic tourism rather than foreign tourism in Vaishali.
Figure 30: Tourist Traffic in Bihar
158
16.7
107
119
104
87
1
2005
2006
Foreign
2007
2008
Domestic
4
2009
Total
in
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2.5
2
1.5
1
0.5
0
2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
Vaishali Domestic
Vaishali Foreign
4.5.8.3
Opportunity in Hajipur
Vaishali can grow into a tourist destination of great importance and Hajipur being the biggest town
in Vaishali district, it can be developed to serve as node for tourism in the district. These
monuments/sites in Vaishali district are subject to poor maintenance and lack preservation. If these
sites are conserved, preserved and maintained by way of structural repairs on need basis, as per
archaeological norms, the tourism potential in the district can be increased.
The tourism infrastructure in Hajipur is required not only to support religious tourists, but also to
support business tourism in the place. With the increase in business activities, commercialization
and industrialization of Hajipur, there will be need for increase in hospitality infrastructure
including hotels, budget service apartments and other support facilities for business tourists.
4.5.8.4
Hajipur lacks in terms of adequate tourist infrastructure with no lodging facility for medium and
high income groups to stay and very few options for the low income group. The existing facilities
are in a poor state.
Table 38: Hotels in Hajipur
Hotels in Hajipur
(approved by Dept. of Tourism, GoB)
1
2
3
4
5
6
Final Report
Royal Anamika
Hotel Vaishali
Hotel Lichhvi
Hotel Urvashi
Hotel Gitanjali
Hotel Mayur
Range of Room
Rent
Low
Low
Low
Low
Low
Low
Page 123
Hotels in Hajipur
(approved by Dept. of Tourism, GoB)
7
Hotel Shyam
Low Range Hotels where rent is below Rs 300
4.5.8.5
Range of Room
Rent
Low
Due to the proximity of Patna, maximum tourists who visit Hajipur opt for staying at Patna,
which provides better tourist facilities.
Tourism in Vaishali lacks planned development in terms of creating facilities to aid tourists
visiting the region.
Vaishali has not been widely publicized as a tourist destination.
Though there are a number of tourist destinations in Vaishali, Hajipur itself does not
contain many places of tourist interest. Hence, the city can at most fulfill accommodation
needs for people who are travelling from far off to visit locations in the district.
4.5.8.6
Improvement in facilities at the site: The condition of the sites should be improved with
better lighting, landscaping and development of surroundings.
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and relaxation therapy, along with fulfilling their touristic aspirations. However, a project
feasibility study will have to be instituted for all such ventures.
iii)
4.5.9
Water Sports, Amusement Park and Ecological Tours Hajipur could also be an ideal
water-sports and amusement Park destination as it just across the Ganges and again, the
proximity of Patna will prove beneficial for tourists who want to indulge in their favourite
water sports. This can also be combined with ecological tours of the banana and litchi
plantations (especially in season time) located all around this region. Here again, feasibility
studies would be required before such ventures are established, as sustainability seems to
be an issue and also the power situation in Bihar is still a deterrent.
Creation of a Tourist Guide Cadre and Transportation Linkages - Tourists need
adequate and reasonably-priced transportation from one venue to another in tourist
locations. Entrepreneurs in Hajipur City can operate these transport services for the
convenience of these customers. The development of Tourist Guide Cadre to provide
services to tourists at reasonable rates is a must. This will have to form a part skill
development menu of the proposed EDC.
Development of Biomass Energy Sector
The value chain and demand analysis for the biomass energy sector has already been done earlier.
The SIPB also has approved some projects in this sector in the Vaishali-Hajipur region. In order to
promote biomass power in this region, the following steps can be taken:
i) Establishment of Biomass based renewable energy plant in Hajipur on PPP: The medium
of partnership between private sector and local authorities can be explored to launch a large
scale power plant based on biomass. Under PPP mode, land for the project along with
clearances can be made available by local authority, whereas the installation, operation and
maintenance of the plant shall have to be done by the private player for a specified number of
years. The authority can subsidize production by paying partial cost per unit being sold in the
local market. The SIPB has already approved the setting up of one solar photo-voltaic battery
plant and one 10 MW biomass-based power plant in the region. This plant will be in addition to
these as it will be on a larger scale.
ii) Backward and Forward Linkages will have to be strung seamlessly together to ensure a
smooth production process throughout the year. This will include the procurement of raw
material from the local millers and farmers, procurement of suitable machinery, appropriate
and adequate operation and maintenance services. In Bihar, presently nearly 1000 tonnes of
husk/day is transported to other states. Since there is no market for sale of rice husk therefore,
it is available free of cost from the rice millers. In some of the areas, rice mill owners are even
paying money for the disposal of rice husk. The potential power generation of rice husk-based
plants even if 50% of the rice husk in the region is made available is given below:
Final Report
Page 125
Source: Report on Renewable Energy Potential Assessment and Action Plan for Bihar(May 2011)
Though rice husk can also be used as raw material for biomass plants in Hajipur, in this region
the main basis will be wheat straw, maize cobs and sugarcane waste. The power produced by
these plants should prove more than adequate to make up the short fall of power faced by the
industries based in three industrial/economic zones located in the district. Therefore, there
should be no marketing problem.
iii) Capacity-building efforts will have to be undertaken by the administration and the EDC to be
established in the city, to train suitable persons in the skills required for such ventures i.e.
installation, manufacturing processes & technology, marketing & sales, operation &
maintenance. Strategic alliances with apex training institutions reputed in this sector will have
to be entered to. More on this can be found in Chapter 8.
iv) Providing incentives and exemptions for biomass power generation: The Co-operative
Dept, Govt of Bihar under Rashtriya Krishi Vikas Yojana (RKVY) is giving 50% of the project cost
for rice husk based gasifiers being installed in rice mills. The Central capital subsidy for biomass
gasifiers for thermal and electrical applications are as follows:
1. Rs. 2.0 lakh / 300 KWth for thermal applications.
2. Rs. 2.5 lakh / 100 KWe for electrical applications through dual fuel engines.
3. Rs. 8.0 lakh / 100 KWe for 100% producer gas engines with gasifier system.
4. Rs. 6.0 lakh / 100 KWe for 100% producer gas engine alone.
v) Power purchase option: The power buy back option should be given to the players which set
up biomass-based power plants in Vaishali-Hajipur region. This will reduce market risk for the
players and encourage more number of players to enter this sector.
vi) Facilitating credit access for new set ups: Easy credit should be arranged for the new
establishments in this sector.
Final Report
Page 126
vii) Strategy to increase awareness about benefits available to this sector: The local
authorities should try to increase awareness of this sector by placing information about this
business ion the website of local administration including information on how to setup a new
biomass based power plant in Hajipur, tax and other benefits, trends of the industry etc.
Besides, information dissemination should be done by arranging conferences on renewable
energy in the town, organizing workshops to educate people on the subject and promote the
business in Hajipur. This can be done through local NGOs.
Final Report
Page 127
ii)
Vocational Education & Skill Development: There are two ITIs in Hajipur, but they are
limited in their course offerings to electrical and fabrication trades. With the introduction of
new avenues of economic development like biomass energy production, urban agriculture,
organic and contract farming, agri-clinics, agri business centres, food-processing industries,
healthcare, hospitality, tourism and so on, it is of vital importance that the capacity of the
local populace be developed in these businesses, trades and services. This will call for the
establishment of vocational education, skill and entrepreneurial development centres which
are market-linked and output-based, in and around Hajipur. This can be done on a PPP basis
in the city. The resources and funds under the National and State Skill Development Missions,
National Rural Livelihood Mission (NRLM), MSME and the MoLE can be accessed for this
purpose, depending on the sector and the target population involved. However, this will have
to be planned in a holistic and integrated manner so that efforts are not duplicated.
Final Report
Page 128
Construction Workers
Uncertainty of work
Capital shortage
Absence of social security
Shop Workers
Absence of any insurance coverage
Bank loan not available for opening a new shop
Support Interventions for Unorganized Sector
A Feasibility Study needs to be undertaken to identify the major vending zone, type of
industry and physical area available without interrupting public utility of the urban space.
One possible location for this has been identified by stakeholders as the vacant railway
land next to Chauri Bazaar.
A feasibility study of relocating the vendors to any of these areas will be required. Once the area
has been identified and all necessary facilities are provided, the vendors will have to be
educated on the advantages of moving there as there is usually always resistance to such a
proposal.
Formalization for Informal Businesses: These vendors can be formalized by issuing them a
license for the space allocated and providing supporting facilities (Solid Waste Management,
Sanitation). If the allocation of a separate area is not feasible, another manner to support them
could be of setting up of weekly bazaars in different parts of city in an organized manner with
support from the Hajipur Municipal Corporation.
Establishment /Strengthening the UPE cell of the ULB: Under the SJSRY, all towns are
supposed to have a cell for Urban Poverty Eradication functioning under DUDA. In most ULBs in
Bihar, this cell has not yet been established. The ULB should appoint suitable persons in this cell
and strengthen their capacities to perform the role expected of them.
Strengthening of existing community-based groups like NHGs, NHCs, RCV & CDS through
trainings on rules and regulations for conducting group activities. This could be done through
local NGOs under the SJSRY.
Promotion of DWCUAs: Under the USEP component of SJSRY, assistance is given to groups of
urban poor women for setting up gainful self-employment ventures. This sub-scheme is called"
The Scheme for Development of Women and Children in the Urban Areas (DWCUA)". These can
be linked to micro-enterprises required for providing backward linkages for the industrial
enterprises and other established MEs like artisanal activities, food-processing and so on.
Final Report
Page 129
for approvals, licenses and permits, which need to be followed by individuals or groups in this
category while starting or running a ME or business.
Skill Development of CDS/TCG/ SHG-s and facilitation for enterprise development and the
MEs/ skills that they require to be trained in. This can be done after the Training Needs
Assessment is done prior to establishing the EDC.
Financial Support in the form of loans and subsidies are required by persons in the
unorganized sector. But because of their ostensible lack of creditworthiness and the endemic
reluctance of financial institutions to lend to such individuals/groups, they are unable to get the
required funds to start their ventures. The Central Bank of India is the lead bank for Vaishali
and as such, it is their duty to see to it that all loan proposals from disadvantaged groups are
given due priority and consideration. It is suggested that the ULB monitors such cases on a
regular basis through the LED Unit to be established. Capacity building and change
management workshops or courses aimed at bringing about attitudinal and behavior change in
the staff of financial institutions should be an essential part of their training curriculum.
4.6
Some of the activities / tasks suggested to be undertaken by SPUR in the implementation of the City
Business Plan of Hajipur are as follows:
In co-operation with the DIC and the MSME Department, SPUR will facilitate the creation of LED
Unit (See Chapter 11) in Hajipur for the purpose of furthering LED in the region.
Assistance to DUDA in establishment and strengthening of the UPE Cell in the ULB. This cell
should necessarily work in close co-ordination with the proposed LED Unit.
Study of the Industrial Incentive Policy of Bihar and its implementation on the ground, with the
objective of identifying bottlenecks and problematic issues in the smooth functioning of
business processes in the ULBs, especially with regard to the sanctions and approvals of
business enterprises by concerned authorities.
Assisting the state in harnessing the resources of industry and commerce associations located
in the ULBs and the state for the effective implementation of the CBP, especially with the aim of
improving investor confidence in the state in the sectors proposed for each ULB.
Facilitate the ULBs in promoting PPP for specific projects as identified by the CBP especially
with regard to robust models, frameworks and contract documents.
Engage with financial institutions for facilitating better access to funds for entrepreneurs,
especially from disadvantaged and excluded groups.
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Technical inputs for improving the credit and market access of local enterprises.
Support in knowledge management and monitoring of city business by including City Business
Plans and other relevant data and processes on the ULB web-portal and integrating this with EGovernance and MIS systems.
The above-mentioned tasks will all be done with the specific sectors and business activities
recommended for promotion in the Hajipur-Vaishali region. Chapter 9 in which there is a City
Business Action Plan shown in a tabular format will also be helpful in determining the role of SPUR
and other agencies in implementation of the CBP.
Final Report
Page 131
Schemes of
Ministry of
Agriculture
Backward
Region Grants
programme
(Mininstry of
Panchayati Raj)
Schemes of
Ministry of
MSME
Central/ Sate
Govt
Programmes
Relevant for City
Business Plan of
Chhapra
National Skill
Development
Mission (NSDC)
Swarn Jayanti
Rozgaar Yojana
(SJSRY)
Bihar Govt
Schemes for
Economic
Development
Final Report
Page 132
5.1.1
Swarnajayanti Sahari Rojgar Yojna (SJSRY) is a GoI sponsored poverty alleviation scheme in
operation since Ist December 1997. It is primarily an employment programme. The basic objective
of SJSRY is to cause improvement in the quality of life of urban people living below the poverty line
(BPL). Delivery of inputs under this scheme is required to be organized through ULBs and
community structures. The SJSRY programme is funded by GoI and the State Government on 75:25
basis. It has 3 sections:
1. Self-employment Programme
2. Thrift and Credit Groups
3. Wage and Employment Programme
a) Self-employment Programme
The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) have been revised in 2009
to overcome the difficulties faced by the States and to address certain
drawbacks in its implementation. The revised guidelines is in force from
01.04.09.It has five sections:
1) Urban Self Employment Programme (USEP)
2) Urban Women Self-Help Programme (UWSP)
3) Skill Training for Employment Promotion amongst Urban Poor (STEP-UP)
4) Urban Wage Employment Programme (UWEP)
5) Urban Community Development Network (UCDN)
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DWACUA, SHG/T&C society, the major components of SJSRY have not been formed yet after
so many years of implementation of the programme which indicates the role of UPE cell of
ULB is not satisfactory. UPE cell have failed to facilitate the community organizer to run the
programme successfully.
Final Report
Page 134
S.
No.
1
SJSRY Weaknesses
Urban
Self-Employment
Program
(USEP) has not taken off due to lack of
easy credit assistance to individual
urban poor beneficiaries for setting up
gainful self-employment ventures micro-enterprises.
Inadequate
support
for
Technology/marketing/infrastructure
/ knowledge & other support provided
to the urban poor in setting up their
enterprises as well as marketing their
products
Final Report
Page 135
S.
No.
4
SJSRY Weaknesses
Skill
Training
for
Employment
Promotion amongst Urban Poor(STEPUP) has not been well designed and
hence the trainings conducted have not
led to gainful employment
Final Report
Page 136
S.
No.
6
5.1.2
SJSRY Weaknesses
Urban
Community
Development
Network (UCDN) to support the
organization of the urban poor into
self-managed community structures to
enhance participation in the effective
implementation of urban poverty
alleviation programmes According to
the SJSRY Report prepared by SPUR,
there are no NHGs, NHCs or SHGs, T&C
Groups formed
PMEGP is to be administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME)
and implemented solely by Khadi and Village Industries Commission (KVIC), a statutory
organization under the administrative control of the Ministry of MSME. It is a central government
scheme for generation of employment opportunities through establishment of micro enterprises in
rural as well as urban areas. District Industries Centre (DIC) is the implementing agency for Prime
Minister Employment Generation Programme (PMEGP) in urban areas.
Objectives:
1. To generate employment opportunities in rural as well as urban areas of the country through
setting up of new self employment ventures/projects/micro enterprises.
2. To bring together widely dispersed traditional artisans/ rural and urban unemployed youth
and give them self-employment opportunities to the extent possible, at their place.
3. To provide continuous and sustainable employment to a large segment of traditional and
prospective artisans and rural and urban unemployed youth in the country, so as to help arrest
migration of rural youth to urban areas.
4. To increase the wage earning capacity of artisans and contribute to increase in the growth rate
of rural and urban employment.
Performance under MSME & PMEGP in Vaishali District
Hajipur town has some industrial development. Few of the manufacturing units like medicine
manufacturing units and food processing units are present. The industrial sector in Vaishali is
dependent on micro and artisan units. The micro units has almost doubled from 2007-08 to 200809. The artisan unit also increased in 2007-08 but stopped its growth in 2008-09. There has been
no growth in the tiny industry since 2006 which had 114 units. The PMEGP status of industrial
development in the Vaishali-Hajipur region has already been discussed in Chapter 2.
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Page 137
District
Target
Applications Recommended
No. of
Projects
Margin
Money
(Rs. In
lakh)
No.
82
114.6
203
Vaishali
Project
Amount
(Rs. In
Lakh)
Margin
Money
involve
d
(Rs. In
Lakh)
Emp.
(No.)
1339.8
461.7
1284
Applications Sanctioned
No.
Project
Amount
(Rs. In
Lakh)
Margin
Money
Involved
(Rs. In
Lakh)
Emp.
(No.)
36.45
12.75
46
From the above table, it may be seen that the performance of PMEGP in Vaishali is less than
satisfactory. One of the reasons cited for this was the reluctance of banks to sanction loans to
entrepreneurs financing their ventures. This was reported by stakeholders during study. The kind
of enterprises which have been sanctioned under this scheme by the DIC in Vaishali-Hajipur region
are as follows:
PET Bottles
Surgical Cotton
Mineral Water
Cold Storage
Paints
PVC/ Hume Pipes
Flour Mills
Mosquito Coil
COMFED Sudha Dairy
Water Tanks
Hatchery
Marble Works
The main issues with regard to the successful establishment and sustainability of these microenterprises in Hajipur are as follows:
1. lack of working capital,
2. poor backward-forward linkages,
3. poor infrastructure,
4. inadequate communication facilities and
5. delay in granting loans by banks and financial institutions
Final Report
Page 138
5.1.3
BRGF is the programme undertaken by central government to reduce the income disparities among
the States. Under this scheme fund is provided to States for undertaking various developmental
schemes. Municipalities also come under the purview of this programme. The effectiveness of this
programme lies in the fact that the fund is not earmarked for a specific purpose and can be used for
any project where there is a dearth of fund. In the year 2010-11, GoB received Rs. 595.16 cr under
this scheme of which Rs. 493.21 cr was spent which amounts to 82.87% utilization of the grant for
the year. In 2010-11, the DDP has stated that the resources available under BRGF are Rs. 17.5
crs. With regard to the City Business Plan of Hajipur, the grant could be utilized as a Viability
Gap Funding (VGF) measure by the LED Task Force to support the CBP implementation. It is
recommended that this fund be utilized for developing marketing sources and linkages for
the products of the district food, craft and others. This will be subject to the conditions of its
scope, availability and applicability.
5.1.4
The National Skill Development Corporation India (NSDC) aims to promote skill development by
catalyzing creation of large, quality, for-profit vocational institutions. It provides viability gap
funding to build scalable, for-profit vocational training initiatives. The skill development scheme by
NSDC will help in creating pool of trained human resources, which are required for the economic
development activities envisaged under City Business Plan. NSDC may be approached by the city
administration or the concerned stakeholder to initiate skill development projects in the VaishaliHajipur region focusing on the sectors identified in Chapter 4 and the HRD initiatives outlined in
Chapter 8.
5.1.5
The following schemes of Ministry of Food Processing Industries may be helpful in development of
infrastructure required for new food processing industries in the Vaishali-Hajipur region.
Mega Food Park and Food Park Schemes provide financial assistance is provided in the form
of grant-in-aid @ 50% of project cost excluding land component.
Scheme for cold chain, value addition and preservation infrastructure gives assistance for
creation of food processing infrastructure. All implementing agencies such as Government
organizations, Private sector organizations etc can avail financial assistance (grant-in-aid)
of 50% the total cost of plant and machinery and technical civil works under this
scheme.
Ministry of Food Processing Industries may be approached by the city administration or the
concerned stakeholders for developing projects in the Vaishali-Hajipur region.
Final Report
Page 139
5.1.6
The Directorate of Food Processing which is functioning under the Department of Industries, GoB
has the following two main schemes on offer since 2008:
i)
Scheme for integrated development of food processing sector: A scheme for the
integrated development of Food Processing Sector has been planned where the objective
would be to overcome the constraints related to infrastructure, technology, skills and
marketing faced by Rice, Maize, Pulses, Honey, Makhana, Fruits and Vegetables and other
food processing units in the state.
Eligibility & Funding: All projects in the food/agro sector, promoted either by Special
Purpose Vehicle (SPV) or by individual investors are eligible for assistance under this
scheme. The assistance is a grant of upto 40% of the project cost, subject to a maximum of
10 crores for SPV in case of common cluster infrastructure and upto 35% of the project cost
subject to a maximum of 5 crores in case of an individual investor.
Scope & Coverage: The project cost for the purpose of this scheme will include land,
factory building, plant & machinery, R & D, quality control centre, warehousing facility,
water supply, and electricity supply including captive power plant, effluent treatment, and
telecommunication lines tec. For expansion and capacity increase, the benefits of the
scheme will be available only if the expansion project leads to a capacity addition of atleast
50%.
ii)
5.1.7
Scheme for Food parks: The details of this scheme are similar to the GoI scheme for Mega
Food Parks which has already been described above in Chapter 4.
Schemes of Ministry of MSME (GOI)
The following schemes of Ministry of MSME may be helpful in development of setting up medium,
small and micro enterprises in Hajipur.
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) through KVIC and Coir
Board
Activities under the scheme include Technology Up-gradation, Setting up of Common Facility
Centres (CFCs), Development of new products & designs, New/improved packaging, etc, Market
promotion activities, Capacity building activities etc. This fund is for khadi, coir and village
industries, including leather and pottery. In Hajipur, it could be used for handicraft items industry
to be promoted for the sikki grass handicraft artisans.
Credit Guarantee Cover Fund Scheme for Small Industries
Government of India launched the Credit Guarantee Fund Scheme for Small Industries on 30th
August, 2000 with a view to alleviating the problem of collateral security and impediment to flow of
credit to Small Scale Industries (SSI) sector. This would be very useful for those entrepreneurs in
Hajipur, who are having chronic problems with accessing credit and loan facilities from banks.
Final Report
Page 140
Following are some of the schemes of Ministry of Textiles, which should be synergized with the CBP
proposals for development of economic activities in Hajipur.
Baba Saheb Ambedkar Hastshilp Vikas Yojana (AHVY)
Activities envisaged under the scheme include Organization of artisans clusters into SHGs/
Cooperatives, Skill upgradation through design and technology intervention, Infrastructure support
for improved quality and productivity, Credit facilitation and Marketing support etc.
5.1.9
Final Report
Page 141
Integrated Development of Food crops, including coarse cereals, minor millets and pulses
Agriculture Mechanization
Soil Health and Productivity
Development of Rainfed Farming Systems
Integrated Pest Management
Market Infrastructure
Horticulture
Animal Husbandry, Dairying & Fisheries
Concept to Completion Projects that have definite time-lines
Support to Institutions that promote Agriculture and Horticulture, etc.
Organic and Bio-fertilizers
Innovative Schemes
Final Report
Page 142
Page 143
Delineation of parking areas in the above commercial areas will further lead to
decongestion and provide a cleaner outlook.
Development of greenery and parks will lead to land use compliance on the one hand but
can be made into a profitable venture through private partnership. This will take care of
maintenance issues.
There are several water bodies in and around Hajipur desilting activities of these to help
storage and conservation of water could be undertaken under the UWEP component or
UIDSSMT. It could also be undertaken as part of the MNREGA activities in the district. In
2011-12, Vaishali district was allocated an amount of Rs. 137.38 crs. under this scheme.
O & M functions of public areas and facilities could be linked with CBO-s and CDS or
Community Development Societies to take up community level monitoring and
maintenance. This will foster to a community-centred and demand-led approach to O & M
and will also lead to some employment generation.
Private partnership initiatives can be designed for systemic waste management including
segregation, disposal, composting and marketing.
Development of hawkers zones and vending areas will lead to formalization of the informal
sector operators. This will lead to a synergistic relationship where institutional inclusion
will create opportunities for financial inclusion and the ULB-s will be in a position to levy
and collect taxes, however small.
Final Report
Page 144
Health, Education and Training will be revamped through PPP initiatives and by developing
suitable linkages with Specialised Training Institutes. This can be done with the help of
Ministry of Labour and Employment and the National Skill Development Mission.
The alignment of CBP with CDP is evident in pro poor initiatives where the CBP to a large
extent relies on livelihood generation of the poor through tiny and micro enterprise
development and efficient running of the SJSRY programme. Strengthening of SJSRY
programme is an important component of CBP
Introduction of Intra City & Tourism Transport Services: Tempos / by contract with
existing service providers (To start with tempos to be regularised along the major
corridors. With the improvement of the road infrastructure and efficiency of the services,
the improvement options have to be worked out). Since Hajipur is being developed as a
tourism and wellness destination, the transportation to these sites will also have to be
improved. This will also encourage transport and auto mechanic entrepreneurs.
The Capital Investment Plan of Hajipur in the draft CDP submitted to SPUR in June 2011
comprises of sectoral plans for the identified sectors for a time horizon of 20 years outlining
policy framework and investment interventions to achieve the vision for the urban
agglomeration of Hajipur. The focus sectors for CDP are water supply, sewerage
&sanitation, storm water drainage, solid waste management, roads, traffic & transportation,
street lighting, urban poverty & housing, urban heritage & tourism, urban environment &
social amenities. CDP addresses the infrastructure requirements based on population
projections which are done considering a medium to long term view of citys development.
On the other hand, CBP tries to identify core economic initiatives and projects, which can be
taken up for economic development of the city and the region and may be located outside
the limits of urban agglomeration area, In the Draft CDP the following tasks have been
outlined for implementation upto 2015:
Water Supply: Strengthening of Existing network, Rising mains, Water Treatment
Plant, Distribution Network, Metering Mechanism, Storage facilities at various locations,
Public Taps, New Pump sets at the intake wells and Bulk Meters at Treatment Plant,
Reuse of treated sewerage water from the proposed STP, Leak Detection Study,
Redistribution of Community Taps
Sewerage & Sanitation: Collection Network, Sewage Treatment Plant , Renovation and
construction of toilet blocks, Comprehensive Sewerage Sector Master Plan
Storm Water Drainage: New Closed Drains to be Constructed, Cleaning of all major &
minor drains
Final Report
Page 145
The following mandatory urban reforms have been suggested for Hajipur:
Introduction of a system of e-governance the LED Task Force and the UPE can use this
as an information, communication, monitoring and decision-making tool for the City
Business Plan implementation.
Reform of property tax with GIS, so that it becomes a major source of revenue, and
arrangement for its implementation so that collection efficiency reaches 85 % within
the next five years
Levy of reasonable user charges with the objective that full cost of operation and
maintenance is collected within the next five years
Internal earmarking within local body, budgets for basic services to the urban poor
Provision of basic services to urban poor
If these reforms are implemented, the investor confidence of entrepreneurs who are hesitant to
invest money in Hajipur, will be boosted and they might want to take up small ventures which they
find viable after further research and study of the project/s on hand.
Final Report
Page 146
Formal Business
Table 44: Major Steps in setting up a business set up
Major Steps in
setting up a
business set
up
Authorities
/Jurisdiction
Task/ Activities
Tentative Time
Associated cost
Obtaining
Land
necessary
Approvals
Within
industrial
area(s)
under
the
jurisdiction of Bihar
Industrial
Area
Development Authority
(BIADA)
an application form
(present cost Rs.100)
for
allotment
of
industrial plot/shed
Final Report
&
Details of
required.
Marketing position.
N.O.C.
board
Details
drainage
from
of
of
pollution
number
water
control
of
&
1)
Application fee
of Rs. 500/- in the form
of a Demand Draft for
small scale industrial
units (SSI)
2)
Application
and processing fee of
Rs. 1000/- in the form
of a Demand draft for
medium
&
large
industries, Note: Both
the above are nonrefundable/non
transferable
3)
Land allotment
money in the form of a
Demand draft @Rs.
2000/- per acre of land
Page 147
Skilled/unskilled
requirements.
labour
Documents Required
bio-data
of
of
Allotment is effected
only after 20% of the
land price is deposited
by the businessman.
The average time taken
for
approval
is
estimated between 1015 days.
Obtaining
Land
necessary
Approvals
Final Report
&
Establishing industries
within Municipal limits
Establishing industries
outside
Municipal
Limits
Page 148
municipality.
However
the
industrialist would have to obtain a
NOC from the Panchayat by submitting
the Land possession certificate and
attested
copies
of
the
sale
deed/Khatihaan.
Obtaining
Land
necessary
Approvals
&
Registration
with
District
Industries
Centre (DIC)
Other
governmental
Approvals /
certification
Other
governmental
Approvals /
certification
An application is to be submitted to
the
Municipality for
obtaining a Trade License, after
registration
with
the
District
Industries Centre (DIC).
Municipality issues a
Trade license levying
some nominal fees and
the average time taken
for issuance of Trade
license is between 2030 days.
Registration
with
the
Labour
Department is mandatory for any type
of non-residential activity, within 90
days of establishment of the Unit.
From 2 days up to a
week.
Time
taken
for
processing
and
issuance
Factory
inspection certificate is
not less than a week.
Page 149
ii.
Location
project location
iii.
map
indicating
iv.
Basic details of industrial unit
being set up
Page 150
Other
governmental
Approvals /
certification
Final Report
a certificate is issued
within 2-3 days.
a.
Almost a month
Weight
and
Measurement division
certificate is normally
issued within a week
after inspection visit
Firefighting
department
Page 151
Boiler
Machine
Inspection department
Source: - Various departmental literatures & website. Interview with ULB officials.
Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must
overcome in order to incorporate and register a new firm, along with their associated time and setup costs. It examines the procedures, time and cost involved in launching a commercial or
industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita
gross national income (GNI).
Steps to Incorporate and register a new firm: Shown below are the procedures, time, and costs
to Incorporate and register a new firm
Table 45: Steps to Incorporate and register a new firm
No. Procedure
Min Time
to
Associated Costs
Complete
1 day
Final Report
INR 100
INR 1,500
INR 500
INR 180 (INR 65 for MOA + INR 105 for
AOA + INR 10 for stamp paper for
declaration in Form 1)
INR 13,250 (filing fee on MOA: INR
12,400 + filing fee on AOA: INR 200 +
filing fee on Form 1: INR 200 + filing fee
on Form 18: INR 200 + filing fee on Form
32: INR 200 + POA from 5 subscribers:
INR 50)
INR 350 (costs starts at INR 350 for seal,
depending on number of words to be
engraved)
No. Procedure
*9
*
10
*
11
Min Time
to
Associated Costs
Complete
INR 100
No cost
No cost
* Takes place simultaneously with another procedure. Source: - World Bank Database Doing
Business in south Asia in 2007 Country Profile - India
Dealing with Construction Permits: Shown below are the procedures, time, and costs to build a
warehouse, including obtaining necessary licenses and permits, completing required notifications
and inspections, and obtaining utility connections.
Table 46: Steps for Obtaining Construction Permits
No. Procedure
Min Time
to
Associated Costs
Complete
No cost
The Municipal Corporation scrutinizes the plans and visits the site. The
plans are also internally reviewed by the Drainage Department to
obtain their approval.
Obtain building permit from the Patna Municipal Corporation
(Municipal)
1 day
No cost
105 days
No cost
Final Report
INR
7,432
(commercial
building permit fee
of INR 8 per square
meter of plot area)
No cost
Page 153
No. Procedure
Min Time
to
Associated Costs
Complete
No cost
1 day
Final Report
INR
200
(flat
application fee)
No cost
INR
500
(flat
installation charge)
No cost
No cost
No cost
INR 75,000
Page 154
Min Time
to
Associated Costs
Complete
No. Procedure
The building company must pay the final fees to obtain the connection.
Obtain permanent water and sewerage connections from the Patna
*
Water Board (Municipal)
15 days
14
* Obtain phone connection (with inspection) from the BSNL (National)
7 days
15
File completion certificate and apply for occupancy permit at the Patna
Municipal
Corporation
(Municipal)
16
17
1 day
All buildings higher than 15 meters or larger than 500 square meters
of built-up area require inspection and NOC by the Fire Service
Directorate.
Receive final inspection of the construction by the Patna Municipal
*
Corporation (Municipal)
1 day
18
19
20 days
INR
2,275
(flat
connection fee)
No cost
No cost
No cost
No cost
No cost
Rice Milling
2
Mustard oil milling
3
Spice grinding
Final Report
Expected Time/
Cost
NA
Page 155
S.no
6
Papad making
Sattu Manufacturing
Maize flakes
10
Macaroni manufacture
11
Bakery
12
Biscuit Making
13
14
15
Tomato Ketch-up
16
Potato & Banana Chips
17
Jam & jelly
18
Fruit Squash
19
Chilli Pickles
20
Fish Processing
Expected Time/
Cost
6.1.2
These are generally the businesses, which are individual or family driven and have a very limited
scale of operation. Most activities like local vending, petty shops, and food stalls etc. fall under this
category. Urban Vendors are by far the largest group as far as informal business/entrepreneurship
Final Report
Page 156
is concerned. In Hajipur, Vendors do not require any license (or permit) for vending business on the
footpath and other public places.
As per Bihar Urban vendor sector assessment, nearly 68% of street vendors pay rent to local goons
or unidentified elements. Majority of the vendors who pay a monthly rent have been found to pay a
sum of Rs. 300-400 per month whereas the most commonly paid rent on daily basis is Rs. 5-9/-.
Most of the rent payment goes to unidentified elements, which indicates that rent seeking is going
on through illegal channels. Proportion of street vendors paying rent to these elements is around
68%. Approximately, 29% of street vendors have been found to pay to designated channels such as
municipality (10.86%), landlord (10.59%) and contractors (7.56%).
Table 48: Vending Activity in Hajipur City
Name
ULB
of
Hajipur
Vegs
Fruit
Non Veg
Cloth
Food
Others
Total
659
921
491
192
649
1174
4086
Source:- Bihar Street Vendors Survey Report 2010 ,Pub :- Chandra Gupta Institute of Management Patna (CIMP).
6.2.1
Taxes
Table 49 : Comparative Assessment of Tax Liability
Indicator
Payments (number per year)
Time (hours per year)
Profit tax (%)
Labor tax and contributions (%)
Other taxes (%)
Total tax rate (% profit)
Patna
64
405
22.8
18.2
27.4
68.4
South Asia
31.1
282.9
17.8
7.8
14.2
39.9
OECD
14.2
199.3
16.8
23.3
3.0
43.0
Source: - World Bank Database Doing Business in south Asia in 2007 Country Profile India.
Final Report
online
filing
Total
tax rate Notes on
(%
TTR
profit)
Statutory tax
rate
Tax base
262
4%, as of Apr
2007: 3%
purchase price
23
47
30.00%
taxable profits
19.5
96
12.00%
gross salaries
13.5
Page 157
Tax or
mandatory
contribution
Statutory tax
rate
Stamp duty
10.00%
Employee's state
insurance
contribution
12
4.75%
Dividend tax
14.00%
Property tax
9.00%
Income
surcharge
paid jointly
10.00%
Total
tax rate Notes on
Tax base
(%
TTR
profit)
transaction value
6.1
not
included
gross salaries
dividend
distributions
assessed value
on all federal
taxes
INR 21,500
quarterly tax, INR per vehicle in use
150 for fitness,
and distance
INR 300 for
covered
registration
6% + INR 3.25 per
fuel consumption
liter
4.6
3.4
2.6
0.9
Vehicle tax
(pollution tax)
Fuel tax
State employee
tax
gross salaries
0.3
Fringe benefit
tax
30.00%
value of specified
corporate
expenses (usually
20%)
0.3
Tax on
insurance
contracts
12.00%
insurance
premium
0.3
online
filing
Environment tax
Education fees
paid jointly
Secondary &
Higher
education fees
paid jointly
State VAT
12
CENVAT (excise
duty)
Municipal
business tax
Tax on interest
Totals:
64
online
filing
included
in other
taxes
0.7
0.5
not
included
0.2
12.50%
value added
16.48%
value added
included
in other
taxes
included
in other
taxes
not
included
included
in other
taxes
0
withheld
20.00%
405
interest income
not
included
68.4
Source: - World Bank Database Doing Business in south Asia in 2007 Country Profile India. Interview with ULB officials.
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Page 158
6.2.2
Registering property/land
Listed below is a detailed summary of the steps, time and cost involved in registering property,
assuming a standardized case of an entrepreneur who wants to purchase land and a building that is
already registered and free of title dispute.
The information appearing on this page was collected as part of the Doing Business sub national
project, which measures and compares regulations relevant to the life cycle of a small to mediumsized domestic business in cities and regions.
Table 51: Major Steps in Registering Property and Land
No. Procedure
Time
to
Associated Costs
Complete
INR 500
Pay the stamp duty at the State Treasury and obtain stamp paper
3 days
(State)
3 days
Execute and register the final sale deed at the Sub registrars
61 days
Office (State)
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Page 159
6.2.3
Other costs
Table 52: Other Costs associated with Business Operations in Vaishali-Hajipur region
Within
Estate
Crores
Cost of Land
Rs 1.37
acres#
Cost of Labor
Cost of Power
50,000
per
Cost of Water
Commercial & Industrial: Not Regulated. Industries are allowed to set up their
own water pump to draw ground water.
Source: - Field Survey (June 2011), Investment Climate in Bihar, India Brand Equity Foundation, May 2008.
Final Report
Page 160
Realizing the need for speeding up the process of giving clearances and issuing certificates required
for setting up industrial undertakings in the State, Government of Bihar has in 2006 enacted the
Bihar Single Window Clearance Act, 2006.
Figure 33: Mechanism for Single window clearance of Business Proposals
Source:- Investment Climate in Bihar, India Brand Equity Foundation, May 2008.
This Act, which extends to the whole of State of Bihar was enacted with the following major
objectives in mind:
The enactment of such a law was to bring about a paradigm shift in the ways and means of doing
business in the State by providing single point clearances to promoters and thereby ensuring early
commercial production from such units.
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Page 161
Under this law, the State Government has the powers to constitute by notification, a District Single
Window Clearance Committee for each district, under the chairmanship of the District Collector
b.
6.4 Recommendations
1. Streamlining of Business Approvals systems: This needs to be addressed at two levels:
1.1
For approvals from departments other than ULB: Deployment of District Single
Window Clearance Committee under single window clearance scheme.
1.2 For Approvals from ULB: Urban governance reforms at ULBs level and Implementation
of e-governance for better approval systems. Reforms in land registration and building
construction approval procedures to ensure speedy approvals for construction of
supporting infrastructure like industry sheds, warehouses etc.
2. Providing institutional support and regulatory framework for development of agro
industry based economic development in Vaishali-Hajipur region.
2.1
Institutional support for Promotion of PPPs for Development of support Mechanism for
Agro-based Local Economy at Vaishali-Hajipur.
2.2
2.3
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Page 162
5.2
Setting of parameters and region to be brought under monitoring & review. These
parameters should cover issues like 1) how many of industries applications are processed
and approved, 2) What are areas (offices/approval agencies/produces) of major blockage
for materialization of business proposals 3) How adequate and what quality of supporting
infrastructure (power supply, Water supply, raw material etc.) are provided to local
industries. The above-mentioned Benchmark should be developed after thorough study of
each industry type and comparing it best practices in India/abroad.
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Page 163
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Page 164
Health: Hajipur has a thriving health business sector. However, most of it is unregulated
and often without standardized health care delivery. Specialty hospital and diagnostic
facility by private players like Fortis, Dr Lals Path Labs will not only bring forth quality of
internal standards but also create employment opportunities, contribute to the economy
and control unregulated growth of sub standard health facilities.
7.2.2
Way side facility (Hospitality Resource Creation on Highways): Way side facility is
an important part of tourism. In this vein, comfortable rest houses fitted with basic
amenities on highways flanks, alongside the fuel filling stations (petrol pumps), would
be created with public and private investments.
ii)
iii)
Aqua Tourism and Water Sports: With a vast expanse of natural water originating
in form of rivers coming down from Nepal and the sacred Ganga river and a wide Son
river, Bihar has a wide scope for developing aqua tourism and river sports.
Arrangements of floating restaurants and river cruises through motor launches and
motor boats are the highlights of developing tourism in Bihar where in ancient times
the "Viharas" played this crucial role of tourism. In the state capital, Patna, aqua
tourism is on the anvil.
iv)
Weekend Tourism: Developing tourist spots with an aim of attracting tourists from
the neighbouring urban centres and states would require a good amount of
investment for creating shopping malls, eating outlets, theme parks and
entertainment centres.
v)
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7.2.3
Food Park/ Agri Business Centres Food Park/ Agri Business Centres (ABCs) will be
promoted in important production belts in the region, which are expected to become a
central point for forward and backward linkages in the value chains and will be equipped
with infrastructure according to the requirements of target produce. It will act as a link
between cluster and terminal market sites and improve physical connectivity throughout
the value chain with a view to enhancing connectivity, marketing efficiency, and value
addition in the State. This has to be developed in PPP mode as it will require specialized
facilities and skill.
7.2.4
Skill Development Activities: The 11th Five Year Plan has mandated the setting up of the
National Skill Development Mission, under which skill development and vocational training
has been taken up in a massive way in the PPP mode. The human resources of the VaishaliHajipur Region will have to be trained in the various skills required for the ongoing and
proposed economic activities in the City Business Plan. For this to be implemented in an
effective and industry-linked manner, it would be better to bring in private entities to
undertake skill development programmes. It is especially important to focus on trades like
the food-processing, hospitality and tourism industries. More about this aspect can be seen
in the next Chapter on Human Resource Development.
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Page 166
Food Park / Agri Business Centre (ABCs): This centre will be promoted in Hajipur and is
expected to become a central point for forward and backward linkages in the value chains and will
be equipped with infrastructure according to the requirements of target produce. The Food Park/
ABCs will undertake various post harvest treatments to enhance shelf life, segregation of various
grades, primary processing, packing and local marketing to get better realization for the growers.
The focus of the marketing interventions would be the development of organisational capabilities
and infrastructure facilities (such as roads, power supply, water supply and tele-communication) to
raise farm incomes which will in due course raise the economy of the urban area. The main crops to
be cashed in on in Hajipur for this kind of venture are potato, wheat, mango and banana and some
other urban agriculture and organic crops proposed like mushrooms, baby corn and such like. SHGs
and micro-entrepreneurs of the area may be linked to this centre for backward and forward
linkages to utilize the skills already available in the area.
There are five broad categories of PPP prevalent worldwide and the basic features of these five
broad categories of PPP models are shown in Figure. Each model has its own pros and cons and can
be suitable to achieve some of the objectives of private participation. Special characteristics of some
sectors and their technological development, legal and regulatory regimes, and public and political
perception about the services in a sector may also be factors in deciding the suitability of a
particular form of private participation. For example, management contracts are common for
existing assets in the water and transport sectors, affermage/lease in the transport sector,
concessions in the transport and telecommunication sectors, and turnkey and private ownership of
assets in the power sector. A detailed discussion on each option follows.
Figure 34: PPP options relevant for Development Projects in India
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Page 167
The main pros and cons of this model include the following:
Pros:
1. Can be implemented in a short time
2. Least complex of all the broad categories of PPPs
3. In some countries, politically and socially more acceptable for certain projects (such as water
and strategic projects like ports and airports)
Cons:
1. Efficiency gains may be limited and little incentive for the private sector to invest
2. Almost all risks are borne by the public sector
3. Applicable mainly to existing infrastructure assets
4. There are several variants under the management contract including:
5. Supply or service contract
6. Maintenance management
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Page 168
7. Operational management
The main pros and cons of this model include the following:
Pros:
Cons:
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Page 169
7.3.3 Affermage/Lease
In this category of arrangement an operator (the leaseholder) is responsible for operating and
maintaining the infrastructure facility and services, but generally the operator is not required to
make any large investment. However, often this model is applied in combination with other models
such as build-rehabilitate-operate-transfer. In such a case, the contract period is generally much
longer and the private sector is required to make a significant level of investment.
The arrangements in an affermage and a lease are very similar. The difference between them is
technical. Under a lease, the operator retains revenue collected from customers/users of the facility
and makes a specified lease fee payment to the contracting authority. Under an affermage, the
operator and the contracting authority share revenue from customers/users. The figure below
shows the typical structure of an affermage/lease contract.
Figure 37: Typical structure of Affermage/Lease contract
In the affermage / lease types of arrangements, the operator takes lease of both infrastructure and
equipment from the government for an agreed period of time. Generally, the government maintains
the responsibility for investment and thus bears investment risks. The operational risks are
transferred to the operator. However, as part of lease, some assets may be transferred on a
permanent basis for a period which extends over the economic life of assets. Fixed facilities and
land are leased out for a longer period than for mobile assets. Land to be developed by the
leaseholder is usually transferred for a period of 15-30 years.
It may be noted here that if the assets transferred to the private sector under a lease agreement are
constrained in their use to a specific function or service, the value of assets is dependent upon the
revenue potential of that function or service. If assets are transferred to the private sector without
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Page 170
restrictions of use, the asset value is associated with the optimum use of the assets and the
revenues that they can generate.
Examples of leasing in the transport sector include Rajiv Gandhi Container Terminal, India, Laem
Chabang Port Terminals B2, B3 and B4 in Thailand, and Guangzhou Baiyan Airport in China.
The main pros and cons of this model include the following:
Pros:
Can be implemented in a short time
Significant private investment possible under longer term agreements
In some countries, legally and politically more acceptable for strategic projects like ports
and airports
Cons:
Has little incentive for the private sector to invest
Almost all risks are borne by the public sector
Generally used for existing infrastructure assets
Considerable regulatory oversight may be required
7.3.4 Concessions
In this form of PPP, the Government defines and grants specific rights to an entity (usually a private
company) to build and operate a facility for a fixed period of time. The Government may retain the
ultimate ownership of the facility and/or right to supply the services. In concessions, payments can
take place both ways: concessionaire pays to government for the concession rights and the
government may also pay the concessionaire, which it provides under the agreement to meet
certain specific conditions. Usually such payments by government may be necessary to make
projects commercially viable and/or reduce the level of commercial risk taken by the private sector,
particularly in the initial years of a PPP programme in a country when the private sector may not
have enough confidence in undertaking such a commercial venture. Typical concession periods
range between 5 to 50 years.
The figure below shows the typical structure of a concession contract. It may be noted that in a
concession model of PPP, an SPV may not always be necessary. An SPV may be necessary for a BOT
type of concession however.
The main pros and cons of this model include the following:
Pros:
Private sector bears a significant share of the risks
High level of private investment
Potential for efficiency gains in all phases of project development and implementation and
technological innovation is high
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Cons:
Highly complex to implement and administer
May have underlying fiscal costs to the government
Negotiation between parties and finally making a project deal may require long time
May require close regulatory oversight
Contingent liabilities to the government in the medium and long term
We further discuss here the most popular type of concession structure for roads and highways
in India, i.e., the BOT (Build Operate Transfer) Structure.
Build-Operate-Transfer
In a Build-Operate-Transfer or BOT (and its other variants namely Build-Transfer-Operate (BTO),
Build-Rehabilitate-Operate-Transfer (BROT), Build-Lease-Transfer (BLT) type of arrangement, the
concessionaire undertakes investments and operates the facility for a fixed period of time after
which the ownership reverts back to the public sector. In this type of arrangement, operating and
investment risks can be substantially transferred to the concessionaire. However, in a BOT type of
model the government has explicit and implicit contingent liabilities that may arise due to loan
guarantees provided and default of a sub-sovereign government and public or private entity on
non-guaranteed loans. By retaining ultimate ownership, the government controls policy and can
allocate risks to those parties best suited to bear them or remove them.
In a BOT concession, often the concessionaire may be required to establish a special purpose
vehicle (SPV) for implementing and operating the project. The SPV may be formed as a joint
venture company with equity participation from multiple private sector parties and the public
sector. In addition to equity participation, the government may also provide capital grants or other
Final Report
Page 172
financial incentives to a BOT project. BOT is a common form of PPP in the highway sector in India,
having been popularized by NHAI in its National Highway Development Program (NHDP).
Annuity Model
The Annuity Model is a variant of the PPP Concessions. This model is similar to the BOT Model
except that the commercial risk is assumed by the public sector, thus shielding the private sector
from any variations in Traffic.
Annuity Contacts were used initially by the NHAI for the development of National Highways largely
because the Private sector was risk-averse and was not willing to take up the commercial risk.
Under this arrangement a selected private bidder is awarded a contract to develop a section of the
highway and to maintain it over the whole contract period. The private bidder is compensated with
fixed semi-annual payments for his investments in the project. In this approach the concessionaire
does not need to bear the commercial risks involved with project operation. However, over time, as
the sector has matured, the private sector has shown greater risk appetite and is now willing to
assume commercial (traffic) risk. Therefore, the annuity road contract has lost its popularity with
Governments because significant risk transfer to the Private Sector was not taking place.
Final Report
Page 173
Cons:
Complex to implement and manage the contractual regimes
May have underlying fiscal costs to the government
Negotiation between parties and finally making a project deal may require long time
Regulatory efficiency is very important
There may be contingent liabilities to the government in the medium and long term
There can be three main types under this form:
Build-Own-Operate type of arrangement
Private Finance Initiative (a more recent innovation)
Divestiture by license or sale
Private ownership of assets has not been tried in the Highways sector in India, largely because of
the regulatory implications.
Final Report
Page 174
Supply and
Management
Contract
Main Variants
Ownership of
Capital Assets
Responsibility
of Investment
Assumption of
Risk
Duration
of
Contract
(years)
Suitability
for Project
Highway
Outsourcing
Public
Public
Public
1-3
Low
Maintenance
Management
Public
Public/Private
Public/Private
3-5
Operational
Management
Public
Public
Public
3-5
Public
Public
Public/Private
1-3
Low
Affermage
Public
Public
Public/Private
3-20
Medium
Lease
Public
Public
Public/Private
3-20
Medium
Annuity
Public/Private
Public/Private
Public
10-15
Low
BOT
Public/Private
Public/Private
Public/Private
15-30
High
BOO/DBFO
Private
Private
Private
Indefinite
Low
PFI
Public/Private
Private
Public/Private
10-30
High
Divestiture
Private
Private
Private
Indefinite
Low
Turnkey
Low
Low
Affermage/Lease
Concessions
Private
Ownership of
Assets (PFI)
The suitability of the PPP models for the various projects of ULB Hajipur can be judged based on the
evaluation and assessment carried out in this chapter and also the following factors:
Final Report
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Final Report
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Page 177
LED
Stakeholder
Groups
Public sector
providers of business
support eg extension
providers, including
government, NGOs
and private sector;
Final Report
Communities
including poor
producers and
consumers, and
CBOs at local
level;
Page 178
It is imperative that all these groups work in a synergistic, integrated and convergent manner
towards the LED in their region or city. Less than required capacity and skill in any one of these
groups will drag down the momentum of the CBP and render the implementation less than
satisfactory. The varied nature, composition, literacy and skill levels of these stakeholder groups
make capacity and skill development a complex and challenging task and it is no wonder that this
often presents the weakest link in successful LED implementation. The capacity/ skill development
activities suggested below will be based on the principles and target stakeholder groups mentioned
above.
S. No.
LED Principles
Create an enabling environment for coordination and convergence at the local level
for LED and build capacities of the relevant
institutions
and
personnel
towards
leveraging resources from different sources
for achievement of LED goals.
Final Report
Page 179
S. No.
LED Principles
Build
capacity
for
better
financial
management of public and private funds and
leveraging of financial resources from
different sources towards attainment of LED
goals and objectives on both a collective and
individual basis.
Build
capacity
for
leveraging
PPP
partnerships for LED and forging strong
relationships for sustainability of LED
projects and interventions
Final Report
Page 180
S. No.
LED Principles
Bihar being the poorest and least Build capacity in handling investment risks
advantaged State in the Country to attract especially for poor and disadvantaged groups
private
investments,
the
Central
Government should support the State and
Local Governments to minimize the
investment risks perceived by the
investors
through
appropriate
institutional and financial assistance.
10
11
Promoting pro poor business, micro Build capacity for knowledge economy and
enterprises and vending sector requires innovation,
MSME
development
and
political and administrative commitments inclusive LED strategies and implementation.
from the State and Local Governments, and
these actions should be supported by
formulating Pro Poor Business/ Micro
Enterprise Development Strategy and the
Bihar Vending Policy.
12
13
Final Report
Page 181
S.
No.
Existing/
Potential
Business
Sector /
Industry
Proposed
Flour Mills
Name of Training /
Skill Development
required
Target Group
Possible Training/
Skill Dev Institution
Flour Mill
Modernization
Flour Mill
Entrepreneurs/
Managers
Flour Mill
Entrepreneurs/
Managers
Regional Extension
Service Centres, MoFPI
Flour Milling
Technology (1 year)
Final Report
Apprenticeship
Training in Cold
storage, Ice Plant
Cold Storage
Mechanics &
Shop floor
workers
Central Food
Technological Research
Institute (CFTRI),
Mysore
- ITI, Hajipur could start
this course, if
sanctioned by DGET
- Under Apprenticeship
Scheme of DGET
Page 182
S.
No.
Existing/
Potential
Business Sector
/ Industry /
Skill
Food processing
Fruits and
Vegetables
Name of Training /
Skill Development
required
Target Group
Possible Training/
Skill Dev Institution
Food processing
(vegetables
especially brinjal,
potato and onion)
SHGs, SJSRY
Entrepreneurial
Groups, FP ME
Entrepreneurs
and workers
Agri-Business
Entrepreneurs,
ABC Managers,
MSME-DIC
Staff, Shop floor
personnel in
ABCs, SHGs,
SJSRY
Entrepreneurial
Groups
- Govt. Polytechnic ,
Hajipur (may be
requested to start
this under the Skill
Dev Prog funded by
MoLE)
- Entrepreneurial
Development Centre
(EDC) to be started
under SPUR in
Hajipur
- MSME-DI Centres,
Patna and
Muzaffarpur
- Entrepreneurial
Development Centre
(EDC) to be started
under SPUR
- Indian Institute of
Entrepreneurship,
Guwahati
- Sristi Foundation,
Patna
- MANAGE,
Hyderabad
- CIPHET, Ludhiana
- IARI, Pusa, Delhi
- Rajendranagar
Agricultural
University,
Samastipur
- Directorate of
Marketing &
Inspection, Nagpur
- Sristi Foundation,
Patna
- Entrepreneurial
Development Centre
(EDC) to be started
under SPUR in
Hajipur
- COMFED Training
Centre, Patna
- MSME-DI Centres,
Patna and Muzafpur
Final Report
Page 183
S.
No.
Existing/
Potential
Business Sector
/ Industry
Proposed
Food park, Agri
Ventures and
Agri- Business
Centres (ABCs)
Dairy-based
Production and
Industries: Milk
Producer,
Retailer of Milk &
Milk Products,
Distributor of
Milk & Milk
Products
Bulk Purchaser of
Milk and Milk
Products,
Transport
Contractor,
Milk plant and
related
machinery,
Packing Material
for Milk and Milk
Products, Repair
and Maintenance
of Milk Plant and
Accessories
Retail Industry
Final Report
Name of Training /
Skill Development
required
- Apiary, Bee-keeping
- Floriculture
- Horticulture
- Vermiculture
- Seed production
and processing
- Pisciculture & Aqua
Culture
- Urban Agriculture
- Organic farming
Dairy Technology,
Production of dairy
& milk-based
Products, Training in
clean milk
production &
handling
Retail Management
(RM), Marketing
Target Group
Possible Training/
Skill Dev Institution
SHGs, SJSRY
Entrepreneurial
Groups, Dairy /
Milk Dealers,
- Rajendranagar
Agricultural
University,
Samastipur
- Entrepreneurial
Development Centre
(EDC) to be started
under SPUR in
Hajipur
- COMFED Training
Centre, Patna
- MSME-DI Centres,
Patna and
Muzaffarpur
Entrepreneurs,
RM staff
- Arcade Business
College, Patna
- Inductus Business
School, Patna
- Siddhartha Institute
of Management
- NIESBUD Training
Centre, Patna
Page 184
S.
No.
Existing/
Potential
Business Sector
/ Industry
Proposed
Hospitality &
Hotel Industry
Promotion of
Tourism Industry
Final Report
Name of Training /
Skill Development
required
Target Group
Possible Training/
Skill Dev Institution
- M.Sc. Hospitality
Administration
- B.Sc.in Hospitality
and Hotel
Administration
- PGDM in
Accommodation
Operation and
Management
- Craftsmanship
Course in Food
Production
- Craftsmanship
Course in Food and
Beverage Service
- Certificate Course
in Hotel and Catering
Management
- Diploma in Food
Production
- Diploma in Food
and Beverage Service
- Diploma in Front
Office
- Diploma in House
Keeping
- Diploma in Bakery
and
Confectionery
- PGDM, Tourism &
Travel
- PGDM, Tourism &
Travel (Services)
- Short-term Joboriented Courses
Entrepreneurs,
Hospitality staff
at different
levels
- Institute of Hotel
Management,
Hajipur ,Vaishali
(Bihar)
- Indian Institute of
Business
Management, Patna
- Shanti Sewa Samiti's
Indian Institute of
Hotel Management,
Patna
- Institute Of Hotel
Management &
Catering Technology,
Patna
- Entrepreneurial
Development Centre
(EDC) to be started
under SPUR in
Hajipur
Tourism and
Travel
Vendors/
Agencies, Sales
Persons, Travel
Counsellors,
Guides,
Transport
Entrepreneurs,
Master Trainers
- Indian Institute of
Tourism and Travel
Management Goa,
Gwalior,
Bhubhaneshwar,
Nellore and Delhi
Page 185
S.
No.
10
Existing/
Potential
Business Sector
/ Industry
Proposed
Healthcare
Name of Training /
Skill Development
required
Target Group
Possible Training/
Skill Dev Institution
- Paramedical
personnel for prehospital care (eg. for
ambulances)
- Dialysis technicians
- Medical imaging
technicians
- Personnel for
operating the ECG
and EEG machines
- Perfusion
technology
technicians
- Advanced MRI
machines
Cluster Development
Executives
Programme
- Unemployed
but educated
(10+2 level)
youth in
Hajipur
- Patna Medical
College, Patna
- Nalanda Medical
College, Patna
- Sri Krishna Medical
College, Muzaffarpur
- Entrepreneurial
Development Centre
(EDC) to be started
under SPUR in
Hajipur
- Apprenticeship/
On-the-job training
with local medical
institutions
- Entrepreneurship
Development
Institute (EDI),
Ahmedabad
- Entrepreneurship
Development
Institute (EDI),
Ahmedabad
- The Livelihood
Institute, Patna
- Sristi Foundation,
Patna
- IIT-Mumbai,
- TERI
- Min. Of Renewable
Energy (MNRE), GoI
- Indian Renewable
Energy Development
Agency (IREDA)
11
Cluster
Development
12
PPP in LED
MSME / DI
Officials, Master
Trainers, NGOs
13
Livelihood
Promotion
MSME / DI
Officials, Master
Trainers, NGOs
14
Biomass Energy
Sector
Promotion of
Sustainable
Livelihoods for the
Poor
Installation,
Manufacturing
Processes &
Technology,
Marketing & Sales,
Operation &
Maintenance
Final Report
MSME / DI
Officials, Master
Trainers, NGOs
Entrepreneurs,
Unit Staff of
different levels,
concerned Govt .
functionaries at
diff levels
Page 186
S.
No.
15
Existing/
Potential
Business Sector
/ Industry
Proposed
Entrepreneurship
Development
Final Report
Name of Training /
Skill Development
required
Target Group
Possible Training/
Skill Dev Institution
- Entrepreneurship
Development
programme,
- Accreditation
Programme for
Entrepreneurial
Motivation Trainers
- Trainers' Training
Programme for
Enterprise
Launching &
Management.
Trainers'/Promoters'
Programme for
Support
Organisations such
as SISIs, DICs,
Development
Corporations etc
- Small Business
Promotion
Programme
- Executive
Development
Programme
- National Faculty
Development
Programme in
Entrepreneurship
- Integrated
Development
Approach For
Entrepreneurship
Development in
Urban Areas
- Entrepreneurship
Orientation for
Weaker
Sections/DWACRA
Functionaries
Entrepreneurs
Small and
Micro, SHG,
SJSRY
Members,
MSME / DI
Officials, Master
Trainers, NGOs
- Institute of
Entrepreneurial
Development, (IED)
Patna
- Small Industries
Service Institute
(SISI), Patna
- MSME-DI Centres,
Patna and
Muzaffarpur
- Entrepreneurial
Development Centre
(EDC) to be started
under SPUR
- Indian Institute of
Entrepreneurship,
Guwahati
- National Institute of
Micro, Small and
Medium Enterprises,
Hyderabad
- Entrepreneurship
Development
Institute (EDI),
Ahmedabad
- Sristi Foundation,
Patna
Page 187
8.5 Capacity Building / Skill Development for State/ ULB Level Functionaries
and Elected Representatives
A formal training need assessment will have to be conducted as part of the study which will lead to
the formulation of the Capacity Building Strategy for LED. However, in addition to the capacity
building activities suggested in the table above, the following CB activities are suggested for
State/ULB level functionaries, elected representatives, NGOs and key stakeholders in LED:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
8.6 PPP and Human Capital Development Interventions for LED in Hajipur
Under the 11th Five Year Plan, the GoI has envisioned the setting up of a National Skill Development
Mission. The National Skill Development Corporation (NSDC) was set up as part of a national skill
development mission to fulfill the growing need in India for skilled manpower across sectors and
Final Report
Page 188
narrow the existing gap between the demand and supply of skills. The objectives of PPP initiatives
for skill development in Hajipur are patterned on the NSDC objectives:
Upgrade skills to national standards through significant industry involvement and develop
necessary frameworks for standards, curriculum and quality assurance
Enhance, support and coordinate private sector initiatives for skill development through
appropriate Public-Private Partnership (PPP) models; strive for significant operational and
financial involvement from the private sector
Focus on underprivileged sections of society and backward regions of the country thereby
enabling a move out of poverty; similarly, focus significantly on the unorganized or informal
sector workforce.
Prioritize initiatives that can have a multiplier or catalytic effect as opposed to one-off
impact
With this PPP model for skill development in mind, the Hajipur ULB can call for proposals from
private entities inside and outside Bihar to participate in skill development initiatives in Hajipur
which are market and supply driven and outcome-based i.e. the skill development entity will be
paid for their services only if a certain percentage of their trainees are employed directly as a result
of the training offered by them. The RfP which is used by NSDC (available on NSDC website
http://www.nsdcindia.org/pdf/proposal-private-players.pdf) for private player participation in
skill development activities may be adapted by the ULB for calling for skill development proposals
in Hajipur, especially in the sectors which have been proposed for development under the City
Business Plan (CBP).
This effort will have to be initiated by the State Skill Development Mission to be set up, with the
help of SPUR under the LED Mission being proposed by SPUR. The LED Unit at the ULB Level will
then be responsible for implementing the same. All the potential business sectors, depending on the
training / skill development needs assessments, could run skill development and training
programmes and courses utilizing this route and could use the skill development modules which
have been developed by NSDC and other suitable training institutions, but adapted to the local
conditions, or develop their own modules in co-operation with business sector experts who have
the domain and market expertise required.
Page 189
centre for micro enterprise/ pro poor business start ups and it provide all technical assistance
involved in developing business/investment proposals and establish linkages with various
government and private organizations involved in technical and financial assistances. Besides, the
EDC would enable potential investors to leverage available government fiscal and financial
assistances. In general, EDC would be the resource centre for promoting micro enterprises and
interfacing between local entrepreneurs and local bodies for obtaining governmental approvals as
well as enabling business start ups in the urban region.
Develop Training Manuals, Modules and tool kits for the skill development programmes
identified. These need to be developed in line with the Skill development and Training
initiatives of the Central Government and State governments.
The EDC would provide support services in the areas of business feasibility studies, investment
proposals, sources of funding and marketing, business information management, etc as to
benefit potential entrepreneurs. It would also set up incubation units to promote unique local
innovations having the potentials to scaling up.
Design and implement all need based skill and entrepreneur development and management
program as envisaged above.
The EDCs would be required to update the database to determine the progress made by the
trained persons in employment and enterprise development. The database would enable the
program to determine the program effectiveness and efficiency and realization of the project
outcomes.
The EDC would establish linkages with local and national industries and organizations and
institutions in order to promote marketing of the products.
The EDC/MBC would seek the assistance of existing successful entrepreneurs as role models for
aspiring entrepreneurs.
Establish contact with business/industry organizations such as CII, BIA, FICCI, Chamber of
Commerce and other industry/ trade associations to explore opportunities to associate private
sector to strengthen the technical content of the training, fund a part of the total cost and to
utilize training facilities available with private sector and industry related organizations
Final Report
Page 190
Final Report
Page 191
Development
of
Core
Economic
Activities
of
VaishaliHajipur region
Final Report
Implementing Agency/
Agencies
Implementation
Schedule
Source of Funding
Imme
diate
<1
Year
Short
Term
15
years
Long
Term
>
5
years
1.
2.
3.
4.
5.
6.
1.
2.
3.
4.
NABARD
Central Bank of India
MSME
MoRD and DoRD
SPUR & LED TF
DoA, GoB
MoFPI
Min of MSME
PWD
Agriculture Min (GoI) &
Agri. Deptt. (GoB)
5. Private Entrepreneurs
1. Deptt. of Agriculture
(GoB)
Page 192
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
5.
1.
2.
3.
4.
Energy
Department,
GoB
DIT, GoB
ADB Loan
Private Investment
Bank Loans
ACABC, MoA, GoI
Agricultural Marketing
Information Network
Scheme, MoA, GoI
Local Banks & NABARD
SIDBI
SHG funds
SJSRY
AHVY etc.
MoFPI
Min of MSME
PWD
Ministry of Agri (GoI)
& Agri. Deptt. (GoB)
5. Private funds
MoA, GoI & DoA, GoB
Area of
Intervention
Development of
Core Economic
Activities
of
Vaishali-Hajipur
Region
Final Report
Implementing Agency/
Agencies
1. DoFP,
Department
of
Industries, GoB
2. Finance Department (GoB)
1. DoFP, GoB
2. Deptt. Of Industries, GoB
3. Deptt. Of Inforamtion &
Public Relations, GoB
4. NGOs
5. Private Media Agencies
1. Department of Industries,
GoB & DoFP
1. DoFP, GoB
2. Rural
Development
Department, GoB
3. Finance Department (GoB)
4. Department of Industries, GoB
and DIC, Vaishali
5. State Investment Promotion
Board
6. Bihar
State
Financial
Corporation (BSFC)
7. Bihar
Industrial
Area
Development
Authority
(BIADA)
8. SPUR
9. Private Entrepreneurs
Page 193
Implementation
Schedule
Imme
Short
Long
diate
Term
Term
<1
15
>
5
Year
years
years
Source of Funding
1. Create a Market
Development Fund for
promotion of the
processing products
2. Harnessing resources
and subsidies of
various schemes of the
Government of India
(MoA, NHM, MoFPI,
MoSME etc.) and Dir.
Of Food Processing,
GoB i.e. Integrated
Food Processing
Scheme & Food Park
Scheme
Area of
Intervention
Development
of
Core
Economic
Activities
of
VaishaliHajipur region
Implementation
Schedule
Imme
Short Long
diate
Term Term
<1
15
>
5
Year
years years
3. Promotion of Organic Farming, Floriculture, Horticulture, Nurseries & Poly/Green Houses
3.1 Organic Farming
3.1.1 Organic and vermicompost fertilizers production by MEs
and SHGs
3.1.2 Training on organic farming
3.1.3 Seed replacement programs
3.1.4 Marketing through ABCs and other appropriate channels
3.2 Floriculture
3.2.1 Support through Agri-Clinic Network
3.2.2 Identification of a Flower Vending Zone in Hajipur
3.2.3 Establishment of Co-operative Florist Organization/s
3.3 Establishing Nurseries & Poly/ Green houses
4. Development of Bio-Seed Research and Production
Centres
5. Promotion of Dairy Sector-based Activities
5.1 Establishing Furnished & fully operational Veterinary
Hospital
5.2 Promotion of milk federation and training on Animal
husbandry management.
5.3 Linkage with Financial institution for credit & Bank Loans
for development of animal husbandry.
5.4 Establishment of Cattle Feed Manufacturing unit.
5.5 Establishment of Milk Processing Plant in Hajipur.
5.6 Para veterinary and management training to animal
rearers.
5.7 Artificial Insemination Centre to be established
Final Report
Implementing Agency/
Agencies
1.
2.
3.
4.
5.
1.
2.
3.
6.
4.
5.
6.
1.
2.
3.
4.
5.
6.
ULB
DoA, GoB
NHM
SJSRY
ATMA & KVKs
Private Entrepreneurs &
Farmers
Bihar Rajya Beej Nigam
Deptt.
Of
Animal
Husbandry, Dairying &
Fisheries, GoI & GoB
COMFED, Bihar
Min of MSME
Deptt of Rural Dev.
(GoB)
Private Sector Entities
Micro-entrepreneurs
1. RKVY
2. Hari Khad (Daincha)
Scheme, DoA, GoB
3. SJSRY
4. Bank Loans
1.
2.
3.
Page 194
Source of Funding
1. DoA, GoB
2. Mukhyamantri Teevra
Beej Vistaar Yojana
3. Intensive Dairy Dev
Prog (IDDP)
4. Strengthening
infrastructure for
quality & clean milk
production Scheme
5. Dairy
Entrepreneurship Dev
Scheme
6. Bank Loans
7. SHG Funds
8. NABARD
9. COMFED
10. Private Finance
Implementing Agency/
Agencies
Implementation
Schedule
Imme
diate
<1
Year
Development
of
Core
Economic
Activities
of
VaishaliHajipur region
6.
6.1
6.2
6.3
6.4
6.5
6.6
1.
2.
3.
4.
5.
Department of Animal
Husbandry
and
Fisheries (DoAHF), GoB
NREGA
CIFE, Mumbai
College of Fisheries,
RAU
ULB, SPUR & LED TF
Short
Term
15
years
Source of Funding
Long
Term
>
5
years
1.
8.
9.
1.
2.
3.
DoA, GoB
Bank Loans
Private Funds
2.
3.
4.
5.
6.
7.
Final Report
DoA, GoB
DoMSME
SHGs
Private Entitie
SPUR & LED TF
Bee Keeping Extension
Centre, Muzaffarpur
Page 195
Area
of
Intervention
Implementing Agency/
Agencies
Implementation
Schedule
Imme
diate
<1
Year
Development
of
Core
Economic
Activities
of
VaishaliHajipur region
8.
8.1
8.2
8.3
8.4
8.5
8.6
8.7
Final Report
1. Archaeological Survey of
India (GoI)
2. Directorate
of
Archaeology (GoB)
3. Department of Tourism,
GoB
4. ULB & Utility Agencies i.e.
PWD, PHED etc.
5. Deptt. Of Information &
Public Relations, GoB
6. ITDC & BTDC
7. BSRTC
8. SSDM & EDC
9. Private Entities
1.
2.
3.
4.
BREDA
DIC
ULB
Deptt of PR & Info. GoB
Page 196
Short
Term
15
years
Source of Funding
Long
Term
>
5
years
1.
2.
3.
4.
5.
DoI, GoB
SJSRY
Local Banks
Private Entrepreneurs
AHVY
1. Archaeological Survey
of India (GoI)
2. Private & Public Trusts
3. ULB funds for public
works and facilities
4. ITDC & BTDC funds
5. BSRTC funds
6. SSDM & EDC funds
7. Private Funds
8. Bank Loans
1.
2.
3.
4.
MNRE, GoI
BREDA, GoB
Private funds
Bank Loans
Area
of
Intervention
1. UDHD
2. SPUR
3. SSDM
DGET, MoLE, GoI
Implementation
Schedule
Imme
Short
Long
diate
Term
Term
<1
15
>
5
Year
years
years
1.
2.
3.
Page 197
Source of Funding
Final Report
Implementing Agency/
Agencies
1.
2.
3.
4.
NSDC, GoI
SSDM, GoB
PPP investment funds
Bank Loans
1.
2.
1.
2.
Deptt of Industries
BIADA
ULB
DIC
1.
Deptt. Of Agriculture,
& DoFP, GoB
MoFPI
Health
Department,
GoB
BTDC & Deptt of
Tourism,. GoB
Bank Loans
Private Funds
2.
3.
4.
5.
6.
Area
of
Intervention
Business
Approval
Systems
Implementing Agency/
Agencies
Department of Industries
Implementation
Schedule
Imme
Short
Long
diate
Term
Term
<1
15
>
5
Year
years
years
Source of Funding
1.
DoI, GoB
2.
3.
4.
1.
2.
BIADA
Department
Finance (GoB)
DoA, GoB
Urban Reforms
13.2 Deployment of District Single Window Clearance
Committee.
13.3 Urban governance reforms at ULBs level and
Implementation of e-governance for better approvals
systems
13.4 Institutional support for Promotion of PPPs for
Development of support Mechanism for Agro-based
Local Economy at Vaishali-Hajipur.
1.
2.
Convergence
Vending
Monitoring &
Review of CBP
Final Report
1.
DoA, GoB
1.
2.
3.
1.
ULB
3.
13.5 Providing required regulatory framework for
alternative to APMC act.
13.6 Providing required regulatory framework for contract
farming
13.7 Convergence of various government schemes and
Budgets to meet objectives of CBP to be done at ULB
Level
Page 198
3.
of
1. DoA, GoB
ULB
ULB
S.
No.
Name of the
Department
Concerned
Position
Office address
1 General
Administration
District
Magistrate
Secretariat,
Kachahari
Hajipur
2 General
Administration
Dy. Collector
Secretariat,
Kachahari
Hajipur
9430277000 sanjivsinghbas@g
Road,
mail.com
3 General
Administration
Deputy
Development
Commissione
r
Secretariat,
Kachahari
Hajipur
4 Govt. Finance
District
Manager
(BSFC)
5 Govt.
Agriculture
District
Agriculture
Officer
Krishi
Bhawan 9431818744 dao-vaiPolice Line Dighi, 272290
bih@nic.in
Hajipur
6 Govt.
Agriculture
District
Horticulture
Officer
7 Govt. Animal
District
Animal
Husbandry
Officer
Final Report
Office
Phone
Official Email
9430606625
Page 199
S.
No.
Name of the
Department
Concerned
Position
Office address
Office
Phone
8 Govt.Urban Chairman
Development
Hajipur
Parishad,
Kachahari
Road,Hajiur
Nagar 9431026298
9 Govt.Urban Vice
Development
Chairman
Hajipur
Parishad,
Kachahari
Road,Hajiur
Nagar 9431030129
Hajipur
Parishad,
Kachahari
Road,Hajiur
Nagar 9470725816
11 Govt.Urban Executive
Development
Officer
Hajipur
Parishad,
Kachahari
Road,Hajiur
Nagar 9431632991
12 District
Industry Center
General
Manager
District
Center,
Hajipur
13 Urban
Development
Executive
Engineer
DUDA
9308114406
14 NABARD
District
Development
Manager
NABARD, Hajipur
9431026924
15 Lead Bank
Senior
Manager
Final Report
Official Email
nagarparishadha
zipur@gmail.com
Industry 9835223553
Page 200
S.
No.
Name of the
association/ent
erprise/busine
ss unit in CBP
implementatio
n
Concerned
position
Office address
Office
phone
Chamber of
Commerce
President
Vaishali Chamber
of Commerce
9835458958
Chamber of
Commerce
Treasurer
Vaishali Chamber
of Commerce
9631682623
Agriculture
Technology
Management
Agency,
Department of
Agriculture
Project Director
ATMA
Krishi Bhawan
Police Line Dighi,
Hajipur
9471474284 atmavaisha
li@gmail.co
m
Kanhaiya Pd.
Singh
Ashok Kumar
9431007808
06224287486
M/s Asiana
Plywood
Industries P. Ltd.
Braj Bhusan
Singh
9835412849
9430469616
9470841779
Jagdish Chandra
Bansal
Hajipur Industrial
Area, Hajipur844101
9334115415
06224272052
06224273855
Final Report
Official
email
Page 201
Area of
Operation
Overall
business
developme
nt in town
including
mobilizati
on,
facilitation
etc
S.
No.
Name of the
association/ent
erprise/busine
ss unit in CBP
implementatio
n
Concerned
position
Office address
M/s Bharat
Emery Stone Co.
Ashok Kumar
H.S. Maskara
B-13-16,
Industrial Area,
Hajipur-844101
06224272467,
274170
M/s Hajipur
Roller Flour
Mills
G. K. Gupta
S. C. Bansal
Industrial Area,
Hajipur-844101
9835250802
9931767569
10
M/s Hajipur
Industries
Association
President
C/o D. R. Polymer,
C-18, Phase-II,
Hajipur Industrial
Area, Hajipur
062242224979
11
M/s Lumbini
Beverages (P)
Ltd.
Ravi Khilani
Manoj Khilani
H-2, EPIP,
Industrial Area,
Hajipur-844101
9334885200 plant@lum
9334885201 bini.net
9334885202
06224273189,
273430
12
Manoj Kumar
Ranjan Kumar
B-44, Phase-I,
Ashok Path,
Industrial Area,
Hajipur-844101
9431021760
06224276516
13
M/s Rakesh
Eatables & Gen.
Prod. Pvt. Ltd.
Ajay Kumar
Rajnish Kumar
B-4, Industrial
Area, Hajipur844101
9308089852
06224271025,
271023,
271020,
271015
Final Report
Office
phone
Official
email
Page 202
Area of
Operation
S.
No.
Name of the
association/ent
erprise/busine
ss unit in CBP
implementatio
n
Concerned
position
Office address
Office
phone
Official
email
Area of
Operation
14
Incord
Foundation
NGO
Ravi Shanker
099342
40135
incordfoun
dation@ya
hoo.co.in
Economic
developme
nt
15
Vaishno
NGO
:Mukesh
Indu Sadan
Rajputan Tola
Hajipur - 844122
093341
71477
vaishno_ng
o@sify.com
16
Neet Foundation
NGO
Rajesh Kumar
Hathsarganj
Hajipur
Vaishali - 844101
98356
74933
neetfounda
tion@gmail
.com
Final Report
Page 203
Communit
y
developme
nt
However, this will be an interim institutional arrangement, until such time as the LED Units at State
and ULB Level are constituted. The Report on Developing Urban Local Economies (Bihar Urban
Economic Vision and Local Economic Development Framework) issued by the Urban Development
& Housing Department, Government of Bihar has recommended the following Institutional
Structure for development of local economies at State and ULB Level:
It envisages the creation of an Economic Empowerment and Poverty Alleviation Mission, which will
in turn constitute a LED Department, responsible for preparing LED strategies for all urban areas in
the State. Initially, it will focus on the 28 project towns and it would scale up the strategies and
implementation plans at a later stage taking into consideration the lessons learnt.
The LED Department of the Mission will be headed by a full time and senior Administrator, with
functional and financial authorities required to fulfill the responsibilities listed below. An Economic
Planner and a Financing Expert, experienced in economic development planning and public private
partnerships in infrastructure and economic investment projects, will support the LED Mission
Director in his day-to-day works.
Final Report
Page 204
Each ULB shall establish LED Unit within the municipalities during the start up phase of the project.
The LED Officers who are experienced in municipal management and interfacing with private
sector and local communities will head the local LED offices. The LED Officer will be supported by a
municipal planner and an economist for providing technical inputs for preparing LED strategies
and municipal business action plans as well as for interfacing with other economic development
stakeholders. The above LED positions, both at Mission and Municipalities will be full time
positions with focused functional terms of references. Both the Senior LED Director and Municipal
LED Officers will have a committed tenure of at least three years.
These officers will have both administrative and financial powers to meet the main responsibilities
listed below. The SPUR Program and the Project Management Consultants (PMC) responsible for
providing technical supports to the Project Management Unit (PMU) will provide technical supports
to the LED Department and Municipal LED offices during the initial phase of the program. The
broad implementation structure is presented below:
Figure 41: Broad Implementation Structure
Final Report
Page 205
The main functions and tasks of the Mission LED Director and Municipal LED Officer would include
the following:
1. Undertaking research and analysis to identify strengths, weakness, opportunities and threats
and investment priorities within the municipalities;
2. Developing and implementing LED strategy(s);
3. Facilitating networks and partnerships with other stakeholders/ key players and dialogue with
them to support economic development in line with those strategic directions;
4. Developing and maintaining updated data base and directory on existing businesses, projects,
socioeconomic statistics, etc, to assist in making more informed decisions by investors;
5. Facilitate single window clearances for all new small and medium enterprises, and micro
enterprises (pro poor businesses);
6. Structuring LED programs and projects in alignment with the CDP strategy and capital
investment plans and Central Government Urban Development Strategies and Programs;
7. Supporting new and existing micro enterprises and pro poor businesses to grow and
mainstream with financial institutions and establish sustainable business linkages;
8. Structure and manage the DFID supported Pro Poor Business/Micro Enterprise Financing
Deepening Challenge Fund and Business Linkage Challenge Funds established as part of the
Bihar Urban Management Fund;
9. Facilitate LED activities across municipal departments for effective implementation;
10. Support municipal administrations to enhance revenue generation through various financing
options such as leveraging municipal lands, and private participations in municipal capital
investments; and
11. Monitoring LED projects and strategies.
Industries Department
District Town Planning Wing
District Urban Development Agency
Social Welfare Department
Public Health
PWD B&R
Local Representative of Banking Fraternity
Representative from Manufacturing Industry
Final Report
Page 206
9.
10.
11.
12.
13.
14.
15.
By involving the stakeholders, the LED Unit can institutionalize the various initiatives to be taken as
part of local economic development process. In order to implement the various recommendations
of City Business Plan, the LED Unit shall:
1. Advise various concerned Government Departments, the development and implementation of
programmes and measures to facilitate business;
2. Develop and oversee and regularly review government regulations and procedures impacting
on business, with the aims of eliminating outdated or burdensome regulations on business,
3. Enhancing the quality of delivery and business-friendliness of government services to facilitate
business operations and development, and reducing regulatory impact and compliance cost to
the business sector;
4. Set up and steer Task Forces to take forward the regulatory reviews or other business
facilitation initiatives; and
5. Examine other relevant areas to facilitate business as appropriate.
If for some reason, this recommendation of constituting an LED Unit at ULB/District level is not
feasible, the alternative suggested is to populate strengthen the Urban Poverty Eradication Cell
proposed under the SJSRY Scheme and have a trained LED Consultant attached to this Cell, who will
be able to facilitate the CBP along with the concerned departments and agencies at ULB, District
and State Level.
Final Report
Page 207
ANNEXURE:
Annexure 1: List of Stakeholders
Attendance Sheet for Key Stakeholder Consultation Workshop on City
Business Plan for Hajipur & LED Task Force Members
Date: 21-9-2011
S.No
Designation / Organisation
D.M.
Task Force
Member &
Position
Chairperson
Add. Collector
Vice-Chairperson
Sub-Divisional Officer
Executive Officer
Secretary
Vice-Chairman
General Manager, D.I.C.
Member
Member
Member
Member
Final Report
Page 208
S.No
Designation / Organisation
Task Force
Member &
Position
DDM, NABARD
Member
Member
Vice-President
Chamber of Commerce
Member
Final Report
Member
Member
Member
Member
Page 209
SPUR Project meetings have been going on for 2 years and we have all attended
many meetings, but the proposed activities still have to take off on the ground
All efforts for the CBP have to be integrated at the city level between different
concerned departments and local bodies.
All such plans should be disseminated to the public so that people are informed
about it
Final Report
Page 210
Final Report
Page 211
Final Report
Tourism we need to restore and clean up our monuments and self-promotion and
self-governance without much dependence on the government is very imp i.e.
Kerala and Sikkim. Documentation and data is also crucial.
Savings of 77 crores as reflected in deposit amounts in Hajipur is not being
intelligently and fruitfully invested or revolved
Milk processing and storage has to be improved and upgraded to give boost to the
dairy industry in Hajipur
Sericulture can also be promoted
Education, Health and Tourism can be promoted through PPP ventures
We need to sit down and reflect and discuss as to why Hajipur is not developing the
way it should - LED task Force to be constituted can do this
Honey business and apiary can be promoted in Ward 39
In ward 33 banana (fibre and chips) and cauliflower business can do well
The DM finally requested the EO to constitute the LED Task Force as soon as
possible
Page 212
Proposal
Establishment of
Multipurpose Medical
facilities and Research
Centre in Hajipur.
Establishment of 1500
Tons/Month Parle-G
Biscuit in collaboration
with Parle Biscuit (P)
Ltd. at Hajipur Industrial
Area.
Establishment of 48,000
MT per year capacity
Cattle and Poultry Feed
unit at E.P.I.P, Hajipur
8.55
14.7
CM/ Cabinet
approval
date
622
SIPB
Approval
date
2.5.06
208
06-09-06
22.10.06
26-092006
06.01.07
Direct
Employment
60
19.03.11
02.01.08
Establishment of Fruit
and Vegetable Centre and
Packaging Centre on
Hajipur-Muzaffarpur
High-way
Setting up of a Fully
Integrated Fruit and
Vegetable Processing
Complex at Hajipur in
two phases
Final Report
Investment
(In Crores
Rs.)
275
27.11.06
55
200
20.12.06
Page 213
Sl.
No.
6
Proposal
Investment
(In Crores
Rs.)
Direct
Employment
1.37
16
SIPB
Approval
date
CM/ Cabinet
approval
date
Setting up a Food
Processing Unit at
Hajipur Industrial
Area/Export Zone
Establishment of 1.07
Lakh TPA Steel
Processing Unit at
Sahdei, Vaishali
318.75
Proposal for
establishment of Food
Park at Muzaffarpur,
Vaishali (Hajipur).
125
Establishment of
Warehousing, Container
Freight and Cold Storage
at Hajipur
10
2.28
15
17.03.08
31.05.08
11
Establishment of B.Ed.
Teacher's Training
Institute at Hajipur,
Vaishali.
1.61
19
11.07.08
(Consent
with
condition)
08.09.08
90
250
18.11.08
22.12.08
12
M/S ESVEEGEE
STARCH AND
CHEMICALS PVT. LTD.,
Ahmadabad.
Final Report
19.02.07
(Consent
in
principle)
14.08.08
49.75
250
08.10.07
(Consent
in
principle)
21.02.08
25.02.08
105
09.02.09
04.06.09
17.03.08
(Consent
in
principle)
Proposal for
establishment of Maize
Processing Unit at
Imadpur Raghunathpur,
Block- Bhagwanpur,
Dist.- Vaishali
Page 214
Sl.
No.
Proposal
Investment
(In Crores
Rs.)
Direct
Employment
SIPB
Approval
date
CM/ Cabinet
approval
date
13
1.1
72
19.10.09
11.02.10
14
Establishment of 7000
MT per year Capacity
Multi Commodity Cold
Storage, 2000 MT per
year Capacity Deep
Freezer and 2 MT per
hour I.Q.F Line Freezer at
Dighi Kala, Industrial
Estate Hajipur
8.72
09.11.09
11.02.10
15
Establishment of Honey
Processing and
Packaging Plant at
Mahua, Hajipur.
1.166
14
23.11.09
25.05.10
16
1.96
37
21.12.09
17
Proposal for
establishment of Icecream and Dairy Products
unit at Industrial Area,
Hajipur.
Proposal for
establishment of 36000
MT per year capacity
Biscuit production unit at
EPIP, Hajipur Industrial
Area.
50.57
328
21.12.09
Final Report
26.05.11
Page 215
25.05.10
Sl.
No.
Investment
(In Crores
Rs.)
54.67
Direct
Employment
SIPB
Approval
date
01.02.10
Proposal
Establishment of 2,33,000
MT per year capacity
Asbestos Cement Sheet
and Corrugated Sheets
Plant in two phases at
Goraul, Vaishali in the
name of UAL-Bihar
19
Establishment of 500 MT
capacity Multi Purpose
Cold Storage, 10 MT Precooling Room, 5 MT
Pulp Processing Unit in
Phase-1 and 1 MT
Individual Quick Freezer
in Phase-2 at Hajipur
Industrial Estate.
5.6
41
15.02.10
20
55
330
19.04.10
21
15.77
25
03.05.10
22
Proposal for
establishment of 50,000
MT per year capacity
Bakery Product and
production of Biscuit at
E.P.I.P., Hajipur.
Proposal for
establishment of 12.73
Crore pieces per year
capacity Preform Pet
Bottle's unit at E.P.I.P.
Hajipur.
Proposal for
establishment of 1000
MT per year capacity
Multipurpose Cold
Storage at EPIP, Hajipur.
15.66
400
24.05.10
23
57
23
24.05.10
24
Proposal for
establishment of 120 Lac
Liters per year capacity
Packaged Drinking Water
unit at Industrial Area,
Hajipur.
1.45
20
08.06.10
18
Final Report
210
CM/ Cabinet
approval
date
21.07.10
Page 216
27.02.11
Sl.
No.
Investment
(In Crores
Rs.)
Direct
Employment
SIPB
Approval
date
6.1
67
29.06.10
6.16
62
29.06.10
Proposal for
establishment of 75,000
MT per year capacity
Edible Oil Refinery Plant
and 1000 KVA Captive
Power Plant at Akbar
Malahi, Lalganj, Vaishali.
Proposal for
establishment of 1914
MT per year capacity
Plastic Molded unit at
E.P.I.P. , Hajipur.
Proposal for
establishment of 900 MT
per year capacity Banana
& Bamboo Fiber Yarns
unit at Hajipur.
49.5
130
29.06.10
5.62
40
21.07.10
2.06
120
21.07.10
Proposal
25
26
27
28
29
30
Proposal for
establishment of 15000
MT per year capacity
Biscuit production unit at
E.P.I.P., Hajipur.
26.51
219
13.08.10
31
4.51
51
13.08.10
32
Proposal for
establishment of 2400
MT per year capacity
Corrugated Box
production unit at
E.P.I.P., Hajipur.
Proposal for
establishment of 10,000
MT Modern Multi
Purpose Cold Storage at
Chandpur, Baligaon,
Patepur, Vaishali.
9.56
40
27.08.10
Final Report
Proposal for
establishment of 21,600
MT per year capacity
Flour and Bran
production unit at E.P.I.P.
, Hajipur.
Proposal for
establishment of 8400
MT per year capacity
Noodle production unit at
Industrial Area, Hajipur.
CM/ Cabinet
approval
date
Page 217
20.02.11
Sl.
No.
220
SIPB
Approval
date
27.08.10
1.35
53
27.08.10
Proposal for
establishment of 7.5 MW
Biomass based Power
Plant at three placesSasaram (Rohtas),
Harnaut (Nalanda),
Rafiganj (Aurangabad)
and 10 MW Biomass
based Power Plant at two
places- Vaishali (Dist.Vaishali), Begusarai
(Dist.-Begusarai),
Proposal for production
of 84000 MT per year
capacity of Cattle and
Poultry Feed at EPIP,
Hajipur, Vaishali.
191.25
225
29.11.10
(Consent
with
condition)
17.05
220
29.11.10
Proposal for
establishment of 96 Lac
Liters per year capacity
Packaged Drinking Water
unit at Hajipur.
1.58
32
29.11.10
Proposal for
establishment 20 Lac
pieces per year capacity
Cycle, Cycle Parts and
Accessories
manufacturing unit at
E.P.I.P, Hajipur.
45.1
500
25.02.11
Proposal
33
34
35
36
37
38
Final Report
Investment
(In Crores
Rs.)
31.89
Direct
Employment
CM/ Cabinet
approval
date
Page 218
80
SIPB
Approval
date
26.05.11
140.5
140
26.05.11
5.4853
21
27.07.11
0.7517
28
27.07.11
43
Proposal for
establishment of 11,000
MT Multipurpose Cold
Storage, Multiproduct
Grading Line and Agri
Mall Warehouse under
R.A.B.C. at Mansoorpur,
Kanti, Muzaffarpur.
8.545
40
27.07.11
44
Proposal for
establishment of 49,500
MT per year capacity
Roller Flour Mill at
E.P.I.P, Hajipur.
11.141
69
27.07.11
45
Proposal for
establishment of 75,000
MT per year capacity
Flour Mill unit at E.P.I.P,
Hajipur.
14.6753
40
27.07.11
Sl.
No.
Proposal
39
40
Proposal for
establishment of 330 Kilo
Liter per day capacity
ENA, IMFL, Country
Liquor, RS, IND Alcohol,
DNS, Ethanol Absolute
Alcohol production unit
at Patna/Vaishali.
41
42
Final Report
Investment
(In Crores
Rs.)
10
Direct
Employment
CM/ Cabinet
approval
date
Page 219
Sl.
No.
46
SN
Proposal
Proposal for capacity
expansion from 49,500
MT per year capacity to
75,000 MT per year
capacity in the existing
unit of Flour Mill at
Industrial Area, Hajipur.
Sector
Investment
(In Crores
Rs.)
Direct
Employment
SIPB
Approval
date
6.2
17
27.07.11
Healthcare
275
593
Industry - Bakery/Biscuits
141
76.5
Eduation
Biomass Powerplant
Final Report
CM/ Cabinet
approval
date
500
1.7
191.25
Page 220
Sl. No.
M/s Association of
Management
Studies, 17, Mall
Road , Meerut
Cant (U.P).
Investm
ent
(In
Crores
Rs.)
Proposal
Proposal for
establishment
of 10 MW Solar PV
Power
Plant unit at Vaishali
Establishment of
Engineering/
Management/
Medical College at
Hajipur
and Patna.
Proposal for
establishment of
6500 MT capacity Cold
Storage, 2 MT per hour
Potato Grading Line,
Weighing Line-1, 500
MT
Agri Input Godown and
600
MT capacity
Warehouse unit
under R.A.B.C at
Khalpura,
Motinagar, Hajipur.
55.00
Remark
Direct
Emplo
yment
31
17.50
5.61
27.08.
10
20
Proposed Investments
Industry
Rs. In Crores
Power
107.25
Agro-based Industries
731.73
Education
Final Report
SIPB
Appr
oval
date
17.5
Page 221
01.02.
07
23.03.
10
CM/
Cabinet
approv
al date
S.
No.
Final Report
Page 222
Section 2.4, the analysis should conclude Please refer to sections 2.4 and 2.5 in
which direction the town is growing and pages 47-54
why, what type of suburban linkage
determine the urban growth, is the sprawl
due to unorganized urban growth, and
what are the implications on the provision
of urban infrastructure and growth of
local economy. This section should
provide a clear analysis on the economic
base of the town, it is not clear.
8
Page 34, on what basis the report states Please refer to section 2.6.2.1 on page 57
that ULB is debt ridden, use the fiscal data
available for the town and qualify this
information, more than the debt servicing
issue, it is the poor capacity to design and
implement investment plan is a major
worry in most cases
Chapter 3 Identification of Core Economic Sector
9
10
11
Final Report
Page 223
12
Page 46, the food processing sector is Please refer to section 3.4.1 in pages 69stated as the competitive sector, but this 73
does not come from any sector or sub
sector analysis
13
Section 3.5, the SWOT analysis requires a Please refer to section 3.5 in pages 75-77
reworking based on clear methodology
and identification of strengths and
weakness, while some section is related to
State level profile, some are ULB based,
there is a big connect in the unit of
analysis, please rework on this section. On
what basis sweeping statements as stated
in the Threat section should be reviewed
and made more contextual
14
Page 49, lack of cold storage is stated as Please refer to paragraph on Cold Chain
one of the main constraints for agro based and Preservation Business in page 52
processing industry, the report does not which has details about cold storages
state the number and type of cold storages
in the district, if at all and what is its scope
based on the approximate outputs
Chapter 4 Business Competitive Assessment of the City
15
16
17
Final Report
Page 224
18
19
20
21
21a
22
23
Final Report
Page 225
24
25
28
29
30
31
Final Report
survey
and
secondary
Page 226
32
33
34
35
Final Report
Page 227
36
37
38
Final Report
Page 228
40
42
Section 8.4, S. No. 10 Urban Agriculture Table 55 for this report has been
mentions medicinal plantation and herbs : prepared in context of Hajipur and does
ATMA should have been mentioned for not include the mentioned point.
training institute as it is the nodal agency
Final Report
Page 229
43
Section 9.1, Table 56 does not provide all Section 9.1 in pages 191-197
possible sources of funding and merely
mentions the state department funds. No
GoI schemes have been considered
46
Action plan needs a complete revision Section 9.1 in pages 191-197
with relevant suggestions and information
for the town
Chapter 10 City Industry and Business Catalogue
47
The catalogue is very short and does not Please refer to section 10.1 in pages 198have enough information on the business 202
enterprises/ associations. The information
for the entries is also incomplete
Chapter 11 CBP Implementation Process
48
49
General Comments
50
51
52
Suggestions provided at the end of Please refer to section 3.6 on page 77-79
chapters are very generic
and the chapter 4 which includes
recommendations wrt every sector
considered.
Central and State Government schemes Please refer to sections 5.1.2 to 5.1.11 on
have not been mentioned in details
pages 136-142
The tables are not followed with adequate The tables are not standalone and are
analysis
integral to the section where such
analysis has been presented alongwith
the tabular information.
Final Report
Page 230
53
54
55
Final Report
Page 231