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KNOW INDIA
Bihar
Economic Infrastructure
Major Industries
Policy Framework

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INDIAN STATE : BIHAR

Economic Infrastructure

Power

The present power scenario in the state is outlined below (as on September 2006)

 
Average
National Bihar
Percentage of villages electrified 84 per cent 41 per cent
Household electrification 55.8 per cent 10.3 per cent
Per Capita Consumption 612 units 76 units
Installed capacity 1,18,619 MW 584 MW
Actual Generation 71,000-75,000 MW (approx) 30 MW

The demand and supply scenario in the power sector is as follows (as on September 2006):

Figures in MW
  Peak Off-Peak
Demand 1500 1100
Supply 950 900
Shortage 550 200

A new power policy is on the anvil with the following core components:

  • Augment generation and distribution by encouraging private investment.
  • Bring down average transmission and commercial losses (AT&C) by 3 per annum in the next five years
  • Stop cross subsidy and recover costs

The state has undertaken a number of reforms to improve upon the power situation in the state. These include:

  • SEB is being re-organized into eight companies and the Power Finance Corporation (PFC) has been appointed as consultants for implementation.
  • State Regulatory Commission is in place and an application has been filed for tariff revision

Roads

The road network in the state is outline below:

  • 3629 Kms of National Highways
  • 3232 Kms of State Highways
  • 7714 Kms of Major District Roads

Total anticipated expenditure in the major roads sector in the next three years:

  • 4-Laning - 11400 Crores (NHAI)
  • State Highways - 4000 Crores
  • Major District Roads - 2500 Crores
  • Total - 17,900 Crores

As for the rural roads, the following works have been taken up:

  • Construction of 2400 km of link routes and upgradation of 2000 km of through routes costing Rs. 1416.88 crores under Pradhan Mantri Gram Sadak Yojna.
  • Construction of 1000 km of link routes costing Rs. 300 crores under Mukhya Mantri Gram Sadak Yojana
  • Upgradation of 2460 km of through routes costing Rs. 599 crores under state plan.

Railways

Bihar has a fairly good railway network. A few railway routes connecting important places like Muzaffarpur-Samastipur-Barauni-Katihar and Muzaffarpur-Chapra-Siwan have been converted into broad gauge. The main rail junctions are at Patna, Gaya, Muzaffarpur, Katihar and Samastipur, etc.

Finance

Bihar State Financial Corporation (BSFC) is the main state level institution providing term lending facilities to industrial entrepreneurs. Banks have also shown increasing interest in term lending to industrial units. BSFC will be restructured and strengthened to meet the growing financial and mercantile needs of entrepreneurs. The Corporation also undertakes the appraisal of projects coming up in the state with a view to raising money from the capital market (Public/Rights Issues).



 
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