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Bihar, fundamentally an agrarian economy, has a large agricultural and animal production base offering abundant supply of raw material to be processed for human consumption. Despite these natural advantages, the level of food processing is very low and there is scope to improve the food processing levels to meet the increasing requirements of the state‘s growing population, while at the same time offering a sustainable consumption market. Further, the rising income and changing life style in the cities as well as rural Bihar is changing the consumption demand towards processed food. Therefore, the state offers a substantial opportunity for the food processing industry and is expected to play a leading role in the industrialization drive of this state.
Some of the strategic advantages in this sector across key product offerings are listed below.
Priority sectors in the food processing sector
The food processing units discussed below shall be considered under the priority sectors for the purpose of availing the incentives under this policy.
Notes:
The above list of units/ enterprises is only indicative and the State Government may suitably revise the list under the priority sector from time to time.
Units/ enterprises set up for the purpose of packaging/ repackaging of food items imported from other states or countries shall not be considered under the priority sector.
If a unit/ enterprise is setting up two or more kinds of facilities in an integrated manner/for captive use purpose, the facilities would be treated as a single project and combined cost of the facilities would be considered for grant calculation purposes. The classification of the units/ enterprises into priority or non- priority would be as per the nature of the main/mother facility, i.e. the core facility.
In case a unit migrates from non-priority sector to priority sector through capacity expansion and/or facility addition etc., it would enjoy the incentives as per the priority sector for the portion that falls under the priority sector.
Units for manufacturing any food item fit for human/ animal consumption which does not contain any grain, F&V or any processed/preserved items (like pulp concentrate, extract .) made from grain/F&V as its main ingredient would be considered under the non-priority sector.
Unit established for processing of by-products of the main food processing facility will be considered for a grant under the non-priority sector if the end product resulting from the processing of the by-product is not a food product fit for human/ animal consumption (with any exceptions defined above). If the final product is fit for human/ animal consumption it would be categorized as per the above list.
Leather sector has a massive potential for employment, output growth and export. In India, the sector is one of the top foreign exchange earners. Bihar has a huge potential for investment in the leather sector. On account of large raw material base (in terms of hides and skins produced in the state), plenty of cheap as well as skilled and semi-skilled labour, and a huge domestic market for consumption, it offers both comparative and competitive advantage to a prospective investor in this sector.
The leather industry mainly includes units that are involved in production of finished or semi-finished leather and manufacturing of various kinds of leather goods. The state govt. has a clear focus to promote all the facilities in the value chain, from raw material processing to finished-goods manufacturing.
Our strategic advantages in this sector across factors of production are as follows:
Priority sectors in the leather sector
The following kinds of facilities/ units would be considered as under the prioritysectors:
Note: The above list of units/ enterprises is only indicative and the State Government may suitably revise the list under the priority sector from time to time.
Apart from these, the GoB would strive for the promotion of rural technologies developed by CSIR-CLRI. Units using these technologies would be treated as a priority sector for incentivising purposes. Following is the list of important rural technologies developed by the CSIR-CLRI.
Note: The above list is only indicative and the State Government may take suitable decision with regard to inclusion of any other kind of technology in the list.
The textile sector plays a key role in the Indian economy by way of significant contribution to GDP, manufacturing output, employment generation, and export earnings. The sector contributes 14% to industrial production, 4% to India‘s GDP and constitutes 13% of the country‘s export earnings. The textile sector is one of the largest source of employment generators in India; it employs over 4.5 crore people, directly.
Bihar has ample potential to house textile units and other value chain activities. Silk is the focus product in Bihar, for textile units. Bihar has been famous for the production of silk. Bhagalpur district of Bihar has been a centre of silk fabric manufacturing. Tassar silk of Bhagalpur is an exclusive product of Bihar which has the potential to fetch premium prices. Bihar had produced around 60 tonnes silk during 2014-15.
Jute is another fibre product produced in the state. Bihar produced around 1420 thousand tonnes of jute in 2014-15. A jute park is being establishing in Maranga, Purnea with an investment of INR 42.36 crore, by registered SPV M/s Punrasar Jute Park Ltd. Under PPP mode, the State Government has provided 44.30 acres' land as equity and INR 2 crore as a grant. In the jute park, at present, two units' M/s Tirupati Commodities Private Ltd. & M/s Punrasar Jute Park Training Centre have been established and are functional. They are producing jute yarn, jute twin, jute cloths and other jute products.
There are 14,000 power-looms in Bihar concentrated mainly in Bhagalpur, Gaya, and Banka districts. Their main products are staple chadar/bed sheets, furnishing clothes, etc. There is a training centre at Nathnagar (Bhagalpur), run by the Ministry of Textiles, where 120 power-loom weavers are trained each year.
Textile industry is a highly labour-intensive industry. Bihar is home of around one lakh weavers for whom manufacturing and dealing with fabric and garment is their livelihood. The presence of weaver's community is, therefore, an important asset base in terms of availability of skilled and semi-skilled workers for textile units. Apart from the regular weaver community, a large number of youths (especially, the female youth) in the state can be employed in the textile manufacturing units which can offer conducive employment opportunities such as sewing, stitching, cutting, and other tailoring requirements.
Priority sectors in the textile sector
The priority sectors for investment identified by the State Government in this sector are as follows:
Globally, the IT & ITeS industry, along with the hardware manufacturing sector, is the largest and fastest growing industry in the world. It is expected to reach around USD 2.4 trillion by 2020. The demand in the Indian market is poised to reach more than USD 400 billion by 2020. The importance of IT/ITeS sector is not that of a standalone sector, rather as an integral part of other industries. It has a significant penetration in to all walks of life. It has been established now that the growth in IT/ITeS sector would spur further growth in the fields of agriculture, education, healthcare, energy, telecommunication, rural development, tourism, textile, etc. The sector is yet to take off and move in the desired direction with a pace that offers potential for many entrepreneurial ventures and start up units. The availability of educated youth and cheap labour in the state pose a clear advantage to the investment in this sector, in the state. The State Government's has also notified land for two IT Parks at Bihta (Patna) and Rajgir.
Priority sectors in the IT, ITeS, electrical and electronic hardware manufacturing sector
Note:The above list of units/ enterprises is only indicative and the State Government may suitably revise the list under the priority sector from time to time.