Economic Survey 2015 - 16 - Open Budgets India

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Government of Bihar Finance Department

Economic Survey 2015 - 16

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Government of Bihar Finance Department

Economic Survey 2015 - 16

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CH'EFMINlSTTR BIHAR

Forcword

Thc dnnud F;conordc Suncy 2015-16 for Bihar, bs in rhe pd., pro&{ru

the detailcd informrtion on its economy, along with asEessno of rhe rcocnt

m

aticerlt! economic tronds, It is I m.ecr of sdirftaiio tht

ovcn in the hcc oJ scverr constrainu, Bihar hss continuod

to.oalnuh itr

gmwth momonturll. Slgnifiently, the Ststc govemmont has also puntr.d a

numbcr of dovelopment strrtegie thEt brs mrda tho gorlrth FogogE rd inclu3iVe oae, rtnrl ng in subsrsmial rcduction of poverty md impooved

nrur of hrlnm dcv€lopmcnt in the rcocnt paot. Our holirdc rppmch of 'Growth widr Justice' has rcduced social incqudity ard potritiraely impqcted the marginalizcd scctions oflhe society,

Tbe bcsic purpose of thc eurvey ig to appuiso the state

citiz

.sbout thc curEor

of economic gffairs. But, ttre effort will bc motc mouringfut if the

survey enrhurce dcvelopnaont profeosionah, rcholarc md intvosted mindr to sond their vtluablc fpedbacks oJl our developmcnt rtroegr.

4,,,s

(Nltllh Konrr)

ABDUL BARI SIDDIQUI FiDrlce Minkter. Bibrr

PATNA

preface

The state government has been publishing the annual Economic Survey since 200641- and this is the tenth Report. Bascd on data, the survey attempts to pres€nt an autlentic account of the

Bihar's economy. From the data, one can decipher not just developments in the last year, but the overall a€nd in impo(ant economic indicators.

I sincerely hope rhar policy maken, academicians, development expens and professionals in different fields

will find

the report

informative and uscful.

(Abdul Bari Siddiqui)

CONTENTS Chapter

Title Glossary of Abbreviations Index of Tables and Appendices Executive Summary

i-ii iii-xiii xiv-xxvi

Chapter I

:

Bihar Economy : An Overview 1.1 Demography 1.2 State Domestic Product 1.3 Regional Disparity 1.4 Wholesale and Consumer Price Indices Appendices

1-19 2 3-6 7-8 8-9 10-19

Chapter II

:

State Finances 2.1 Overview of Financial Position 2.2 Fiscal Performance 2.3 Deficit Management 2.4 Debt Management 2.5 Tax : GSDP Ratio 2.6 Revenue Account: Receipt and Expenditure 2.7 Resource Management 2.8 Performance of Tax Departments 2.9 Expenditure Management 2.10 Revenue Expenditure 2.11 Expenditure on Salary and Pension 2.12 Quality of Expenditure 2.13 Sectoral Expenditure 2.14 Per Capita Expenditure on Social and Economic Services 2.15 Comparison of Budget Estimates of 2015-16 and Actual Amounts of 2014-15 2.16 Fourteenth Finance Commission’s Recommendations and Their Impact on Bihar’s Public Finance 2.17 State Public Sector Undertakings and Corporations Appendices

20-93 20-30 30-38 38-42 42-45 45-46 46-49 50-59 59-65 66-68 69-70 70-71 71-72 72-74 75

Chapter III :

Agriculture and Allied Sectors 3.1 Rainfall 3.2 Land Utilisation 3.3 Production and Productivity I

75-78 78-82 83-89 90-93 94-133 94-96 96-97 97-106

3.4 3.5 3.6 3.7

Chapter IV :

Chapter V

:

Chapter VI :

Irrigation Agricultural Inputs Agricultural Credit Animal Husbandry Appendices

106-107 107-111 111-112 112-115 116-133

Enterprises Sector 4.1 Annual Survey of Industries 4.2 Micro, Small and Medium Enterprises (MSME) 4.3 Prime Minister’s Employment Generation Programme (PMEGP) 4.4 Agro-based Industries 4.5 Non-Agro-Based Industry 4.6 Support Institutions Appendices

134-158 135-139 139-140

Infrastructure 5.1 Roads 5.2 Bridges Sector 5.3 Road Transport 5.4 Railways 5.5 Airways 5.6 Telecommunication 5.7 Postal Network 5.8 Irrigation Appendices

159-190 159-167 167-169 170-173 173 173-174 174-175 176-178 178-187 188-190

Energy Sector 6.1 Availability of Power 6.2 Projection of Power Requirement 6.3 Institutional Structure of Power Sector 6.4 Distribution Companies 6.5 Operational and Financial Status 6.6 Programmes for Electrification and Distribution Schemes 6.7 Transmission 6.8 Generation 6.9 Recent Developments in Power Sector 6.10 Bihar Renewable Energy Development Agency (BREDA) 6.11 Bihar State Hydroelectric Power Corporation Limited

191-206 191 191-194 195-196 196-197 197 197-200 200-201 201-203 204 204-205 206

II

140-141 141-149 149-153 154-155 156-158

Chapter VII :

Rural Development 7.1 Poverty 7.2 Rural Development Programmes 7.3 Panchayati Raj Institutions (PRI) 7.4 Land Distribution 7.5 Disaster Management 7.6 Environment Appendices

207-228 207-208 208-214 214-217 217-219 219-221 221-222 223-228

Chapter VIII : Urban Development 8.1 Level of Urbanisation 8.2 Expenditure on Urban Development 8.3 Urban Development Programmes 8.4 Urban Poverty 8.5 Municipal Finance 8.6 Institutions for Urban Development

229-249 229-232 232 232-239 239-244 244-247 247-249

Chapter IX :

Banking and Allied Sectors 9.1 Banking Infrastructure 9.2 Deposits and Credits 9.3 Sectoral Share in Priority Sector Advances 9.4 Financial Institutions 9.5 Rural Infrastructure Development Fund (RIDF) 9.6 Micro-Finance in Bihar 9.7 Financial Inclusion 9.8 Corporate Climate in Bihar Appendices

250-284 251-256 256-265 265-271 271-273 273-275 276-279 279-280 280-281 282-284

Chapter X

Human Development 10.1 Health 10.2 Drinking Water Supply and Sanitation 10.3 Education, Art, Culture and Youth 10.4 Social Welfare 10.5 Women Empowerment 10.6 Labour Resource and Welfare 10.7 Social Security for Old and Disabled Appendices

285-353 286-296 296-299 299-311 311-319 319-323 323-325 325-326 327-353

:

III

GLOSSARY OF ABBREVIATIONS AIBP AMRUT ANM AREP ASER ASHA ASI AWC AWW BERC BIADA BIGWIS BREDA BRGF BSDM BSHP BSHPC BSUP BSWAN BUDCL BUIDCO CADA CADWM CAGR CBS CLRI COMFED CPWD CSO CSS CST DCRF DDUGJY DFID DIC DPAP FRBMA GDDP IAY ICDS

Accelerated Irrigation Benefit Programme Atal Mission for Rejuvenation and Urban Transformation Auxiliary Nurse-cum-Midwife Accelerated Rural Electrification Programme Annual Survey of Education Report Accredited Social Health Activist Annual Survey of Industries Anganwadi Centres Anganwadi Worker Bihar Electricity Regulatory Commission Bihar Industrial Area Development Authority Bihar Ground Water Irrigation Scheme Bihar Renewable Energy Development Agency Backward Region Grant Fund Bihar Skill Development Mission Bihar State Highway Programme Bihar State Hydro Electric Power Corporation Basic Services for Urban Poor Bihar State Wide Area Network Bihar Urban Development Corporation Limited Bihar Urban Infrastructure Development Corporation Limited Command Area Development Agencies Command Area Development & Water management Compounded Annual Growth Rate Core Banking Services Central Leather Research Institute Cooperative Milk Producers Federation Limited Central Public Works Department Central Statistical Organisation Centrally Sponsored Scheme Central Sales Tax Debt Consolidation and Relief Facility Deendayal Upadhyaya Gram Jyoti Yojna Department for International Development District Industries Centre Drought Prone Area Programme Fiscal Responsibility and Budget Management Act Gross District Domestic Product Indira Awas Yojana Integrated Child Development Scheme i

IGMSY IHSDP KGBV MGNREGA MMGSY MNSY MSME NABARD NDMA NDRF NHAI NRHM NRLM NSSO NULM PACS PDS PHC PMEGP PRI PSU R-APDRP RAY RGSEAG RIDF RSETI RSVY SCADA SDRF SIPB SJVNL SLBC SPUR SRR SRI SRS SSA UIDSSMT UIG WUA

Indira Gandhi Matriva Sahyog Yojana Integrated Housing and Slum Development Programme Kasturba Gandhi Balika Vidyalaya Mahatma Gandhi National Rural Employment Guarantee Act Mukhyamantri Gram Sadak Yojna Mukhyamantri Nari Shakti Yojna Micro, Small and Medium Enterprises National Bank of Agricultural and Rural Development National Disaster Management Authority National Disaster Response Force National Highway Authority of India National Rural Health Mission National Rural Livelihood Mission National Sample Survey Organisation National Urban Livelihood Mission Primary Agricultural Cooperative Societies Public Distribution System Primary Health Centre Prime Minister Employment Generation Programme Panchayati Raj Institution Public Sector Undertakings Restructured Accelerated Power Development and Reforms Programme Rajiv Awas Yojana Rajiv Gandhi Scheme for Empowerment of Adolescent Girls Rural Infrastructure Development Fund Rural Self Employment Training Institute Rashtriya Sam Vikas Yojna Supervisory Control and Data Acquisition State Disaster Response Force State Investment Promotion Board Sutluj Jal Vidyut Nigam Limited State Level Bankers Committee Support Programme for Urban Reforms Seed Replacement Rate System of Rice Intensification Sample Registration System Sarva Shiksha Abhiyan Urban infrastructure Development Scheme for Small and Medium Towns Urban Infrastructure and Governance Water Users Association

ii

INDEX OF TABLES Table No.

1.1 1.2 1.3 1.4 1.5 1.6 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25

Title Chapter I : Bihar Economy : An Overview Demographic Profile and Administrative Structure of Bihar and India (2001 and 2011) Annual Growth Rate of GSDP Capita Net State Domestic Product (NSDP) at 2004-05 Prices of Major Indian States Sectoral Composition of GSDP at Constant (2004-05) Prices Relatively Prosperous and Backward Districts of Bihar Wholesale and Consumer Price Indices in Bihar and India Chapter II : State Finances Receipts and Expenditure Major Fiscal Indicators Fiscal and Financial Performance Indicators Deficit/Surplus position of States Gross Fiscal Deficit Decomposition of Gross Fiscal Deficit of Bihar Financing of Gross Fiscal Deficit Outstanding Liabilities Composition of Outstanding Liabilities in the Consolidated Fund Public Debt Repayment Liabilities Net Public Debt Received Tax : GSDP Ratio of States (2013-14 Revenue Account Expenditure Pattern Interest Payment and Receipt Parameters of Expenditure Transfer of Resources from Central Government Revenue Receipts Tax Revenues under Different Heads Composition of Tax Revenues Growth Rates of Tax Revenue Share of Direct and Indirect Taxes Major Non-Tax Revenues Composition of Non-Tax Revenues Growth Rates of Non-Tax Revenues iii

Page No.

2 4 5 6 8 9 22 33-34 37 38 39 40 41 42 43 44 44 46 47 48 48 49 49 51 52 52 53 53 54 55 55

2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35

Variation between the Estimated and Actual Realisation of Tax and Non-Tax Revenue (2014-15) Cost of Collection of Taxes Tax and Non-tax Revenue as Percentage of GSDP Buoyancy of Important Tax and Non-Tax Revenue Sources Grants and Contributions from Central Government Act-wise Commercial Tax Collection Share of Commercial Taxes in Total Revenue Comparative Commodity-wise Collection of Sales Tax Collections of State Excise Duty Revenue from Stamp Duty and Registration Fees

56 57 58 58 59 60 60 61-62 63 64

2.36

District-wise Revenue from Stamp Duty and Registration Fees, 2015-16 (Upto Sept., 2015)

65

2.37

Expenditure from Consolidated Fund

66

2.38

Composition of Government Expenditure

67

2.39

Percentage Composition of Total Expenditure

67

2.40

Growth Rates of Expenditure

68

2.41

Details of Revenue Expenditure

69

2.42

Expenditure on Salaries and Pensions

70

2.43

Quality Parameters of Expenditure

71

2.44

Expenditure on Social Services

72

2.45

Expenditure on Economic Services

74

2.46

Per Capita Expenditure on Social and Economic Services

75

2.47

Summary of Actual Amounts (2014-15) and Budget Estimates (2015-16)

76

2.48

Percentage Distribution of Consolidated Fund – Receipts and Expenditure

77

2.49

Shares of Vertical Devolution and Criteria for Horizontal Devolution through Successive Finance Commissions

79

2.50

Inter-Se Vertical Devolution from the Eleventh through Fourteenth Finance Commissions

80

2.51

Transfers Recommended by Fourteenth Finance Commission

81

2.52

Non-Plan Grants for Bihar Under Fourteenth Finance Commission Recommendations

82

2.53

State Government Investment in Public Sector

83

2.54

Investment in Working and Non-Working Public Sector Companies (March 31, 2014)

83

2.55

Sector-wise Government Companies and Corporations (2013-14)

84

2.56

Summarised Results of Public Sector as per their latest accounts (as on 31st March 2014) iv

86-89

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17

Chapter III : Agriculture and Allied Sectors Annual Rainfall for Different Seasons Land Utilization Pattern Cropping Pattern Production Levels of Major Crops Productivity Level of Major Crops Leading Districts for Production and Productivity of Rice, Wheat, Maize and Pulses Area and Production of Vegetables Area and Production of Fruits Area and Production of Flowers Distribution of Certified Seeds and Seed Replacement Rate (SRR) for Important Crops Consumption of Fertilizers Number of Farm Implements Distributed on Subsidy Agricultural Credit Flow Livestock Wealth (2003, 2007 and 2012) Livestock and Fish Production Livestock Services Chapter IV : Enterprises Sector Annual Growth Rate of Industrial Sector in Bihar Contribution of Industrial Sector in GSDP Number of Factories and Factories in Operation Industries in Bihar Structural Ratios of Industries in India and Bihar (2012-13) Share of Gross Value Added in Gross Value of Output Estimate of Employment and Emoluments Paid in the Factory Sector (2012-13) Year-wise Micro, Small and Medium Registered Units set up in Bihar Distribution of Micro, Small and Medium Enterprises Registered in 2014-15 Performance of PMEGP Achievements of Food Processing Units Performance of Sugar Mills Number of Dairy Cooperative Societies Progress of Unions and Projects in Daily Milk Collection Milk Procurement per Functional Dairy Cooperative Society Activities by COMFED Handloom Concentrated Districts in Bihar v

95 96 97 98 99 102 103 104 105 106 108 110 111 113 114 114 134 135 136 136 137 137 138 139 140 141 142 144 146 147 147 148 149

4.18 4.19 4.20 4.21 4.22 4.23

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27

Targets and Achievements of Training Programmes Achievements in Sericulture Aggregate Performance of KVI Sector at all-India Physical and Financial Achievements of Udyog Mitra Achievements of DIC under MSME Region wise Details of BIADA Activities (as on September, 2015) Chapter V : Infrastructure Statewise Road Length per Lakh of Population and per 100 sq.km. (2013) Length of Roads in Bihar Status of Highways in Bihar (September 2015) Road Length and Expenditure on Development and Maintenance of National Highways Progress of Work under Conversion of State Highways Status of Roads under different projects (As on Sept. 2015) Programme-wise Length of Rural Roads Constructed (2014-15) Status of Selected Projects for Implementation under RIDF-XIV to XX Number of Completed Bridges Turnover of Bihar Rajya Pul Nirman Nigam Limited Total Registered Motor Vehicles in Major States of India (March, 2013) Number of Registered Vehicles Revenue Collection of Department of Transport Number of Passengers Carried by BSRTC Rail Route Network in Indian Major States (March, 2012) Aircraft Movements, Number of Passengers and Freights at Patna Airport Telephone Connections in Bihar Tele-density of Major Indian States Postal Facilities in Bihar (As on March 31, 2014) Postal Traffic in Bihar Outstanding Balances and Number of Accounts in Post Offices Ultimate Created and Utilised Irrigation Potential in Bihar Creation of Irrigation Potential under Major and Medium Irrigation Water Utilisation Efficiency of Major and Medium Irrigation Schemes Status of Farmers Societies Status of Minor Water Resources in Bihar Irrigated Area through Minor Irrigation Sources vi

150 151 153 154 155 155

160 160 161 162 162 163 165 168 169 169 170 171 171 172 173 174 174 175 176 177 178 179 180 181 182 182 183

District-wise Number of Ahars, Pynes and Ponds made functional under Different Programmes Command Area Development Programme under Agriculture Road 5.29 Map II 5.30 Proposal for Implementation of Schemes during the 2017–2022 Chapter VI : Energy Sector 6.1 Power Scenario (2010-11 to 2014-15) 6.2 Status of Electrification of Rural and Urban Household 6.3 Annual Energy Requirement for Rural and Urban Households 6.4 Annual Energy and Peak Demand Requirement at State Periphery 6.5 Yearwise and Sourcewise Details of Capacity Expansion 6.6 Estimated Availability of Power and Energy (2015-16 to 2018-19) 6.7 Projected Surplus/ Deficit in Power and Energy (2015-16 to 2018-19) 6.8 Allocation of Funds under BSPHCL 6.9 Category-wise Number of Effective Consumers (As per billing data) 6.10 Financial Status of Power Sector 6.11 Capital Expenditure of R-APDRP 6.12 Progress of Work under DDUGJY (Erstwhile RGGVY) 6.13 Projected Required Capacity for Power (2015-16 to 2018-19) 6.14 Plan of Action for Strengthening Transmission 6.15 Existing Generation Capacity (March 2015) 6.16 Details of Existing and Planned Generation Units 6.17 Achievements of BREDA Chapter VII : Rural Development 7.1 Poverty Ratio of Bihar and India 7.2 Average Monthly Per Capita Expenditure (2011-12) 7.3 Progress of SHGs 7.4 Extent of Livelihood Related Activities by SHGs 7.5 Performance of MGNREGS 7.6 Completed Works under MGNREGS 7.7 Performance of the IAY Scheme 7.8 Social Background of PDS Dealers 7.9 Allotment and lifting of wheat and Rice for BPL and Antyoday 7.10 Overviews of Panchayati Raj Institutions in Bihar 7.11 Overview of Financial Progress of PRIs 7.12 Land Distribution Pattern 7.13 Progress under the Scheme of Provision of House Sites to Mahadalit Families 7.14 Amount Allotted for Floods and Cyclones 5.28

vii

184 186 187 191 192 192 193 193 194 194 196 196 197 198 199 200 201 201 203 205 208 208 209 209 210 211 212 213 214 215 216 217 218 221

8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9

Chapter VIII : Urban Development Trend of Urbanisation in Bihar Distribution of Urban Population by Size Class of Town North-South Divide in Bihar Access to Basic Urban Services in Bihar by Size Class of Towns (2011) Budget Allocations, Disbursements and Expenditure for Urban Development Programmes under Urban Infrastructure and Governance Details of Urban Development Schemes under UIDSSMT Details of Namami Gange Scheme Progress of Work under IHSDP Progress of Work under Rajiv Awas Yojana (RAY) Progress of Work for Urban Transport Poverty Line and Poverty Ratios (2004-05 and 2011-12) Slum Population in Bihar (2001 and 2011) Attributes of Slums in Bihar and India Progress of Training Work under EST&P Progress of Work under SUSV Progress of Work under NULM Progress of Work under SUH ULB-wise Progress of Work under SUH Progress of Work under SM&ID Financial Allocation for Programmes under NULM (2015-16) Indicators of Municipal Finances for 28 Largest ULBs Key Indicators of Financial Status of 28 Largest ULBs Income from Internal Sources for 28 Largest ULBs Chapter IX : Banking and Allied Sectors Distribution of Commercial Bank Branch Offices (2010-2015) Distribution of Branches of Commercial Banks among States Number of Branches of State and District Central Cooperative Banks (As on March 31) Number of RRBs Branches in Bihar (As on September, 2015) Rural Deposits of Scheduled Commercial Banks by Type of Deposit (as on March, 2014) Distribution of Employees of SCBs (March, 2014) Distribution of Female Employees of SCBs (March, 2014 State-wise Deposits and Credit of Scheduled Commercial Banks in India (March 31) Credit-Deposit (CD) Ratio of All Banks in Bihar viii

230 230 231 231 232 233 233 235 237 238 238 239 239 240 241 241 242 242 242 243 244 245 246 246 251 252 253 254 254 255 256 257 258

9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35

10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8

Bank Group-wise and Area-wise Credit-Deposit Ratio (2014-15) Credit-Deposit (CD) Ratio of the Scheduled Commercial Banks as on March 31 District-wise Credit-Deposit (CD) Ratio Credit-Deposit (CD) Ratio of Nationalised Commercial Banks Credit-Deposit (CD) Ratio of Private Commercial Banks (2014-15) Credit-Deposit (CD) and Investment Plus Credit-Deposit (ICD) Ratios of RRBs Sectoral Share of Advances under Annual Credit Plans (2014-15) ACP Achievement - All Banks Agency-wise Analysis of ACP Achievement (2014-15) Agriculture Credit Flow Outstanding Agricultural Advances Selected Indicators of Primary Agricultural Credit Societies (March 31, 2014) Working Results of State Cooperative Banks Working Results of SCARDBs Number of Kisan Credit Cards (NEW) issued by Banks Sector-wise Refinancing by NABARD Details of Sector-wise Investment Credit Refinance in Bihar by NABARD Cumulative Disbursements under RIDF till March 2015 Sanctions and Disbursements in Bihar under RIDF till March, 2015 Estimated Benefits under RIDF –XIX as on March, 2015 Performance of SHGs in Bihar SHG-Bank Linkage in Selected States of India (March 2015) Growth of Micro-financing in Bihar Microfinancing by RRBs during (2014-15) Roadmap of Financial Inclusion (September 2015) State-wise Number of Registration of New Limited Companies during 2013-14 Chapter X : Human Development Trend of Social Services Expenditure Life Expectancy at Birth Selected Health Indicators for Bihar and India Monthly Average Number of Patients Visiting Government Hospitals Overall Status of Health Infrastructure Districtwise Average Number of Outpatients Visiting per Day Number of Health Personnel Number of Institutional Delivery ix

260 261 262 263 264 265 265 266 266 267 267 268 269 270 271 272 273 274 274 275 276 277 278 278 279 280

286 286 287 288 288 290 291 291

10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 10.36 10.37 10.38

Antigen-wise Immunisation Coverage Prevalence of Main Diseases in Bihar Staffing Position in ICDS Resource Utilisation in ICDS Achievement under Water Supply and Sanitation Financial Progress under NRDWP Financial Progress in State Plan Schemes for Water Supply and Sanitation Physical Achievements in State Plan Schemes for Water Supply and Sanitation Trend of Literacy Rates in India and Bihar Total Enrolment in Primary and Upper Primary Levels Dropout Rates at Primary, Upper Primary, Secondary and Higher Secondary Levels Dropout Rates (SC & ST ) at Primary, Upper Primary and Secondary Levels Expenditure on Education Expenditure on Education — Elementary, Secondary and Higher Education Coverage of MDMS Status of Fund Received and Expenditure by BEP Percentage of Learning Outcomes based on ASER Report Institutions of Higher Education Overview of Outlay Allocation of SC and ST Welfare Achievements of Bihar State Scheduled Caste Cooperative Corporation Financial Progress of BC and EBC Welfare Physical and Financial Details of BC and EBC Welfare Department Gender Budget Summary Overview of Gender Budget Flagship Schemes to Address Gender Disparity Number of Cases Registered and Disposed under Social Empowerment Work Participation Rates in Bihar (2011) Targets of Skill Development Physical & financial Progress of Schemes for Modernization of Employment Exchanges Pension Schemes for Old Age, Widow and Persons with Disabilities

x

292 294 295 295 297 298 298 298 300 302 303 304 305 306 306 308 309 309 313 315 316 317 319 320 320 322 323 324 325 326

INDEX OF APPENDICES

Appendix

Title

Page No.

Chapter I : Bihar Economy : An Overview Table A 1.1

District-wise Demographic Profile of Bihar (2001 and 2011)

10

Table A 1.2

Gross State Domestic Product (GSDP) and Net State Domestic Product (NSDP) of Bihar At Factor Cost

11

Table A 1.3

Gross State Domestic Product (GSDP) of Bihar at Factor Cost (Current Prices)

12

Table A 1.4

Gross State Domestic Product (GSDP) of Bihar at Factor Cost (2004-05 Prices)

13

Table A 1.5

Net State Domestic Product (NSDP) of Bihar at Factor Cost (Current Prices)

14

Table A 1.6

Net State Domestic Product (NSDP) of Bihar at Factor Cost (2004-05 Prices)

15

Table A 1.7

Yearly Growth Rate of GSDP by Sector (2004-05 Prices)

16

Table A 1.8

District-wise Per Capita Gross District Domestic Product at 2004-05 Prices

17

Table A 1.9

District-wise Consumption of Petroleum Products

18

Table A 1.10 District-wise Small Savings in Post Offices and Public Provident Fund

19

Chapter II : State Finances Table A 2.1

Act-wise / Circle-wise Collection 2013-14 and 2014-15

90-91

Table A 2.2

Act-wise / Circle-wise Collection 2015-16 (Up to September 2015)

92

Table A 2.3

District-wise No. of Document and Revenue from Stamp Duty and Registration Fees

93

Chapter III : Agriculture and Allied Sectors Table A 3.1

District-wise Annual Rainfall for Different Seasons

Table A 3.2

District-wise Land Utilisation Pattern (2012-13)

Table A 3.3

District-wise Area, Production and Productivity of Rice

119

Table A 3.4

District-wise Area, Production and Productivity of Wheat

120

Table A 3.5

District-wise Area, Production and Productivity of Maize

121

Table A 3.6

District-wise Area, Production and Productivity of Pulses

122

Table A 3.7

District-wise Area and Production of Important Vegetables

123-124

Table A 3.8

District-wise Area and Production of Important Fruits

125-127

xi

116 117-118

Table A 3.9

District-wise Area and Production of Flowers

128

Table A 3.10

District-wise Area, Production and Productivity of Sugarcane

129

Table A 3.11

District-wise Cooperative Credit Distribution

130

Table A 3.12

District-wise Livestock Wealth (2012)

131

Table A 3.13

District-wise Achievement for Livestock-Related Services

132

Table A 3.14

District-wise Production of Fish and Fish Seed Production

133

Chapter IV : Enterprises Sector Table A 4.1

Value of output and Net value added of selected agro and non-agro based industries (2012-13) (Bihar and India)

156

Table A 4.2

Structure of Industries in Bihar (2012-13)

157

Table A 4.3

Micro/ Small/ Medium Enterprises Registered in 2014-15

158

Chapter V : Infrastructure

Table A 5.1

District-wise Road Network in Bihar

188

Table A 5.2

District-wise approved length and physical achievement of State Highways under RSVY (2014-15)

189

Table A 5.3

Statistics of Registered Vehicles in Bihar During 2014-15

190

Chapter VII : Rural Development Table A 7.1

Number and Percentage of Population below poverty line for Major States - 2011-12

Table A 7.2

District-wise Progress under MGNREGS

Table A 7.3

District-wise Financial Progress under MGNREGS

226

Table A 7.4

District-wise Distribution of PDS Dealers by Their Social Background in Bihar

227

Table A 7.5

District-wise Allotment and Lifting of Wheat and Rice under NFSA during (2014-15)

228

223 224-225

Chapter IX : Banking and Allied Sectors Table A 9.1

District-wise Performance Under Annual Credit Plan as on 282-283 31.3.2015

Table A 9.2

District-wise Achievement Kisan Credit Card (NEW and RENEW) Numbers

284

Chapter X : Human Development Table A 10.1

Number of Health Institutions (September, 2015)

327

Table A 10.2

District-wise Employment of Regular and Contractual Doctors

328

Table A 10.3

District-wise Employment of Grade A Nurses

329

Table A 10.4

District-wise Employment of ANM

330

Table A 10.5

District-wise Employment of Asha Worker

331

xii

Table A 10.6

District-wise Number of Institutional Deliveries

332

Table A 10.7

District-wise Coverage under Janani Suraksha Yojana (JSY)

333

Table A 10.8

Prevalence of Diseases (September 2015)

Table A 10.9

District-wise Fund Disbursed to Health Societies

336

Table A 10.10

District-wise Hand Pumps under National Rural Drinking Water Programme (NRDWP)

337

Table A 10.11

District-wise Achievement under Central Rural Programme in Individual Household Lantrine (IHHL)

338

Table A 10.12

District-wise Achievement in Individual Household Lantrine (IHHL) under Central Rural Sanitation Programme

334-335

Sanitation

339

Table A 10.13 Total Enrolment in Primary and Upper Primary Levels (All)

340

Table A 10.14 Total Enrolment in Primary and Upper Primary Levels (SC)

341

Table A 10.15 Total Enrolment in Primary and Upper Primary Levels (ST)

342

Table A 10.16

District-wise Annual Growth Rate of Enrolment (2009-10 to 2013-14)

Table A 10.17 District-wise Primary and Upper Primary Schools in Bihar (2013) Table A 10.18

District-wise Number of Teachers at Primary and Upper Primary Level (2013)

343 344 345

Table A 10.19 District-wise Coverage of MDMS (Class I-V)

346

Table A 10.20 District-wise Coverage of MDMS (Class VI-VIII)

347

Table A 10.21 District-wise Colleges of Bihar

348

Table A 10.22 Districtwise Colleges of Bihar up to 2014-15

349

Table A 10.23 Percentage Share of SC and ST Population (2001 to 2011)

350

Table A 10.24 District Level Overview of SC/ST Welfare Table A 10.25 Percentage Distribution of Population by Religion

xiii

351-352 353

EXECUTIVE SUMMARY

BIHAR ECONOMY : AN OVERVIEW

1.

The growth performance of the Bihar economy has been steady in the recent decade. During 2005-06 to 2014-15, the GSDP at constant prices grew annually at 10.52 percent. In the immediate past (2010-11 to 2014-15) the growth rate of GSDP was slightly lower at 9.89 percent. This slower growth during the recent past is a reflection of the slowing down of the overall national economy. But, even now the growth of the Bihar economy is faster than that of the national economy. Presently, Bihar is one of the fastest growing states in India.

2.

During the period 2005-06 to 2014-15, the sectors which recorded more than 15 percent growth rate are — Registered Manufacturing (19.31 percent), Construction (16.58 percent), Banking and Insurance (17.70 percent), and Transport/Storage/ Communication (15.08 percent). The growth rate of Agriculture and Animal Husbandry sector, the main sources of livelihood of nearly 90 percent of states’ population, has been 6.02 percent.

3.

In spite of a high growth phase, Bihar even now ranks at the lowest rung of the per capita income table. In 2012-13, the per capita income of Bihar was 37.0 percent of allIndia average; in 2014-15, this ratio went up to 40.6 percent. So, the momentum of growth has got to be sustained for many more years if the gap between the per capita income of Bihar and India is to be wiped out.

4.

During the triennium of 2004-05 to 2006-07, the shares of three major sectors in GSDP were — 30.2 percent for primary, 14.8 percent for secondary, and 55.0 percent for tertiary sector. About a decade later, during the triennium of 2012-13 to 2014-15, the share of primary sector has come down to 20.5 percent. Simultaneously, the share of secondary sector rose to 18.4 percent and that of tertiary sector to 61.2 percent. Within the major sectors, the shares of some sub-sectors have shown substantial change over the period. In the primary sector, Agriculture and Animal Husbandry showed substantial decline in its share. Within the secondary sector, it is Construction whose share has increased substantially from 8.0 percent to 12.8 percent. Within the tertiary sector, the sub-sectors which recorded higher growth rate and propelled its share to increase was Communication, Banking and Insurance, Trade, Hotel and Restaurants. The Public Administration and other services experienced a drop in their shares in GSDP.

5.

There exists substantial disparity in per capita income among the districts of Bihar. In 2011-12, Patna (Rs. 63,063), Munger (Rs. 22,051) and Begusarai (Rs. 17,587) turn out to be the most prosperous districts of the state. The poorest districts according to the data are — Madhepura (Rs. 8609), Supaul (Rs. 8492) and Sheohar (Rs.7092). If one leaves out Patna (the capital of the state), the per capita income of Munger is around 3 times that of Sheohar, the poorest district. xiv

6.

The rise in Consumer Price Index (CPI), for agricultural and rural labourers, has been relatively slower in Bihar compared to India as a whole. In case of Industrial workers, the price rise was higher for Bihar compared to India. In November 2015, the CPI for agricultural workers stood at 746 (Bihar) and 853 (India); for rural labourers, the figures were 752 (Bihar) and 857 (India) and, for industrial workers, the figures were 287 (Bihar) and 270 (India).

STATE FINANCES

1.

The revenue surplus of Bihar increased to Rs 6441 crore in 2013-14 before decreasing again to Rs 5848 crore in 2014-15. The Gross Fiscal Deficit (GFD) has increased continuously from Rs 3970 crore in 2010-11 to Rs 11,178 crore in 2014-15 due to substantial increases (Rs. 8954 crore) in capital investments. In spite of this, the GFD of the state government is still comfortably within the limit of 3 percent, as per FRBM Act.

2.

The revenue receipts of the state government increased by Rs 9499 crore during 201415 to reach Rs 78,418 crore. The revenue expenditure went up by Rs 10,093 crore to reach Rs 72570 crore in 2014-15. The increases in development expenditure accounted for 57 percent of the increase in revenue expenditure (Rs 5703 crore).

3.

The 14 percent growth in the revenue receipts witnessed during 2014-15 was less than nearly 16 percent growth seen during the preceding three years. The growth in revenue receipts during 2014-15 was mainly due to the 52 percent increase in central grants, from Rs 12,584 crore to Rs 19,146 crore. The central grants in fact will get reduced to Rs 18,171 crore in the current fiscal which is the first year of the period of the Fourteenth Finance Commission.

4.

Between 2010-11 and 2014-15, the developmental revenue expenditure increased more than two-fold from Rs. 22,92 crore to Rs. 46,158 crore. The non-developmental revenue expenditure grew at a little slower rate, rising from Rs. 15,287 crore to Rs. 26,408 crore, bulk of it owing to pension as well as interest payments.

5.

Of the total capital outlay of Rs 18,150 crore in 2014-15, as much as Rs 14,728 crore was spent on economic services, almost 28 percent of it (Rs 4177 crore) on creating the infrastructure of roads and bridges. The capital outlay on social services amounted to Rs 1674 crore; out of this, 19 percent (Rs 315 crore) was spent on creating and improving health infrastructure, 53 percent (Rs. 885 crore) on improving the water supply and sanitation, and 16 percent (Rs 263 crore) on creating educational infrastructure in the state.

6.

The gap between plan and non-plan expenditure had started closing since 2007-08. During 2014-15, the non-plan expenditure was only 1.2 times the plan expenditure, compared to 1.4 times the year before. During 2014-15, the total plan and non-plan expenditure was Rs 43,939 crore and Rs. 50,759 crore, respectively.

7.

The state government had an outstanding public debt of Rs. 47,285 crore in 2010-11, equaling 23.2 percent of its GSDP. In 2014-15, the outstanding debt had increased to Rs. 74,570 crore, and the Debt: GSDP ratio had declined substantially to 18.5 percent, well below the prescribed limit of 28 percent. The ratio of interest payment to revenue xv

receipts also got reduced to 7.8 percent in 2014-15, much below the prescribed limit of 15 percent. This clearly indicates that the debt problem is well under the control of the state government. 8.

In 2007-08, own tax and non-tax revenue receipts of Bihar together covered barely 24 percent of its total revenue expenditure. The ratio has improved since then, reaching the peak of nearly 31 percent in 2014-15. But it is still a long way from attaining the desired level of financial self-sufficiency.

9.

During 2010-11 to 2014-15, the revenue receipts grew at an annual rate of 15 percent, while revenue expenditure grew at a higher rate of 17 percent. Thus, though there was a revenue surplus in each of these five years, the surplus decreased over the years. The total revenue receipts increased 1.76 times during the five-year period from Rs. 44,532 crore (2010-11) to Rs. 78,418 crore (2014-15). Simultaneously, its own revenue, tax and non-tax combined, have grown at a faster rate of 20 percent during this period, increasing from Rs. 10,855 crore (2010-11) to Rs. 22,309 crore (2014-15).

10.

An analysis of the tax receipts of the state government reveals that its major sources are Sales Tax (VAT), Stamp and Registration Fees, State Excise Duty, Taxes on Goods and Passengers and Taxes on Vehicles. These five taxes together account for 93 percent of the state government’s total tax receipts.

11.

During the period 2010-11 to 2014-15, the growth in per capita expenditure on social services was nearly twofold , as it increased from Rs 1479 to Rs 2849, and the growth in per capita expenditure on economic services was also 1.7 times (from Rs 768 to Rs 1298). The per capita capital outlay increased 1.8 times from Rs 902 to Rs 1631.

AGRICULTURE AND ALLIED SECTORS

1.

Bihar’s water resources are indeed abundant, as it receives an average of 1009 mms. of rainfall each year, around 85 percent of it from the south-west monsoon. The annual rainfall is reasonably adequate for the state’s agricultural operations. However, it is the year-to-year variation which tends to create flood or draught-like situations in some years. During the period 2001 to 2013, the annual rainfall has varied from being 678 mms. in 2010 to 1506 mms. in 2007.

2.

The net area sown was 56.2 percent of total geographical area in 2010-11 and it has increased marginally to 57.7 percent in 2012-13. Simultaneously, there has also been an increase in gross sown area between 2010-11 (7194 thousand hectares) and 2012-13 (7778 thousand hectares). The cropping intensity has increased marginally from 1.37 in 2010-11 to 1.44 in 2012-13.

3.

The agricultural economy of Bihar is very much skewed in favour of the subsistence sector, since the acreage under foodgrains, even after a decrease in recent years, is more than 90 percent. Presently, Bihar produces rice (82.4 lakh tonnes), wheat (35.7 lakh tonnes), pulses (4.3 lakh tonnes), oilseeds (1.3 lakh tonnes) and sugarcane (155.0 lakh tonnes). The total cereals production is estimated at 143.2 lakh tonnes for its population of nearly 10 crores. xvi

4.

The Gangetic alluvial soil is a major boon for the vegetable producers of the state. Bihar ranks first among all the states in terms of vegetable production. In 2014-15, the total vegetable production in Bihar was 144.99 lakh tonnes. Out of the total production, potato accounted for 63.46 lakh tones. The levels of production of five major fruits in Bihar in 2014-15 were — mango (1272 thousand tonnes), guava (370 thousand tonnes), litchi (198 thousand tonnes), lemon (129 thousand tonnes), and banana (1527 thousand tonnes). In 2013-14, about 99 tonnes of rose, 6799 tonnes of marigold, 318 tonnes of jasmine (Bela) and 536 tonnes of the tuberose were also produced in Bihar.

5.

Under the Agriculture Road Map II, as many as 23 crops were identified and promotion programmes for their seeds have been initiated by the state government. There has also been the revival of Bihar Rajya Beej Nigam (BRBN), strengthening of Bihar Seeds Certification Agency, and multiplication of foundation and breeder seeds by state farms. Recently, the scheme of 'Mukhyamantri Tibra Beej Vistar Yojana' has helped farmers in the field of paddy cultivation. The Seed Replacement Rate (SRR) for major crops like paddy, wheat and maize have increased substantially in recent years. More specifically, the SRR for self-pollinated crops have reached the scientific level of 33 percent.

6.

In 2012-13, the total consumption of fertilizers in Bihar was 46.42 lakh tonnes, which came down to 41.16 lakh tonnes in 2014-15, registering a decrease of 11.3 percent in three years. However, this is not particularly worrisome, as the farmers are recently replacing chemical fertilizers with eco-friendly bio-fertilizers.

7.

The promotion of organic farming has been made a part of the Agricultural Road Map II of Bihar. This programme would cost Rs. 255 crore over a period of 5 years. The vermi-compost production has been made demand-based, with a provision of 50 percent subsidy for a commercial unit producing of at least 1000 tonnes of vermi-compost per year. During 2013-14, a total of Rs. 149.79 crore has been spent on promoting organic farming.

8.

Along with physical inputs, agricultural operations also require adequate credit support. The data related to the agricultural credit reveals that credit supply is not adequate in Bihar in comparison to its demand. The share of three different sources in agricultural credit in 2014-15 stood at Commercial Banks (61.30 percent), Regional Rural Banks (37.65 percent) and Cooperative Banks (1.05 percent).

9.

Animal husbandry is one of the key sectors as it contributes about one-fifth of the total rural income. Milk is the most important produce of this sector. The production of milk has increased from 65.17 lakh tonnes in 2010-11 to 77.75 lakh tonnes in 2014-15. The production of egg has also increased from 74.46 crores in 2010-11 to 98.45 crores in 2014-15. The production of fish was 4.79 lakh tonnes in 2014-15.

xvii

ENTERPRISES SECTOR

1.

In 2014-15, the industrial sector in Bihar has grown by 9.10 percent, which was marginally lower than the growth rate of GSDP at 9.45 percent. The slower growth of industrial sector in 2014-15 is due to the slower growth of manufacturing sector which grew at a little over 5 percent. This is basically a reflection of the slower growth of manufacturing sector in the entire national economy. A deceleration in growth rate was also observed for construction and electricity/water supply/gas; but even after that, construction sector grew by 10.45 percent and the latter grew by 7.52 percent. With a considerable improvement is availability of power in Bihar, it is expected that its industrial sector will grow at higher rate in the coming years.

2.

The distribution of the factories between agro-based and non-agro-based indicates that the share of agro-based industries in Bihar is lower (34.1 percent), compared to the national figure (39.5 percent). This actually implies that the substantial potential that Bihar has for agro-based industries is yet to be realised fully.

3.

The number of registered micro, small and medium enterprises is — 54 units (medium), 1964 units (small) and 2.00 lakh units (micro) at present. Between 2010-11 and 2014-15, a period of 5 years, the growth of enterprises has been — 315 percent (medium units), 27 percent (small units) and 9 percent (micro units). This higher growth of medium enterprises, compared to small and micro enterprises, is a positive trend in the industrial scenario in Bihar.

4.

Both in 2012-13 and 2013-14, the performance of PMEGP was modest, the actual attainments being nearly half of the target. In 2013-14, 3093 persons were benefited by the programme, against a target of 5591. A total credit of Rs. 76.75 crore was distributed to them against a target of Rs. 128.60 crore. In 2014-15, however, the achievements under this programme was limited, when only 1734 persons were benefited with a credit of Rs. 43.58 crore.

5.

At the end of 2014-15, there were 366 food processing industries in the state, of which 207 (56.6 percent) were operational. By September, 2015, there were a few additions, resulting 379 units, of which 210 (55.4 percent) were operational. Although cerealbased food processing industries are the largest in number (rice, wheat and maize), there are also a number of units producing milk products and edible oils. The total employment in these food processing industries is around 45 thousand.

6.

During 2014-15, a total of 574.45 lakh qntls. of sugarcane was crushed in Bihar, providing 52.67 lakh qntls. of sugar. The production of sugar was about 11 percent less than the level in 2013-14. The overall recovery percentage of sugar has increased marginally in Bihar from 8.6 percent (2012-13) to 9.2 percent (2014-15).

7.

The number of milk cooperative societies in 2014-15 was 18.4 thousand, of which 14.2 thousand were working, and 5.8 thousand were registered. The number of working cooperative has increased by 12.1 percent in 2014-15 over the last year when there were xviii

12.7 thousand societies. During the five year period of 2010-11 to 2014-15, it had grown annually at 12.6 percent. 8.

There are 1089 primary handloom weaver societies, with nearly 34 thousand handlooms operating under them. The bulk of the weavers are, however, operating outside the cooperative fold. There are two apex-level marketing organisations, viz., Bihar State Handloom Cooperative Union and Bihar State Wool and Sheep Union. There is one Corporation — Bihar State Handloom and Handicraft Corporation — with 6 Regional Handloom Unions located in Nalanda, Sitamarhi, Siwan, Madhubani, Purnea and Bhagalpur.

9.

A jute park at the cost of Rs. 42.36 crore is being established at Maranga in Purnea district on Private-Public-Partnership basis. A Jute park is being establishing in Maranga, Purna with investment cost Rs. 42.36 crore, by registered SPV M/S Punrasar Jute Park Ltd. Under PPP mode. State Govt. has provided 44.30 acres land as equity and Rs. 2.00 crores (two crores) as a grant. In Jute Park, Two units M/S Tirupati Commodities Private Ltd. & M/S Punrasar Jute Park training centre has been established & functional. They are producing Jute yarn, Jute twin, Jute cloths & other Jute Products. 481 peoples has been employed directly and 800 peoples has been indirectly employed as yet.

INFRASTRUCTURE

1.

Total length of National Highways (NH) has increased substantially from 3410 kms. (2001) to 4595 kms. (2015). The highest increase in length of NH by 861 kms. was registered between 2010 and 2015. The length of State Highways (SH) has also increased from 2383 kms. (2001) to 4253 kms. (2015), with the highest increase of 1610 kms. between 2005 and 2010. During 2001 to 2015, Major District Road (MDR) has also increased significantly from 7739 kms. to 10,634 kms.

2.

As on September, 2014, a total of 35 NHs, measuring 4321 kms were there in Bihar. With the addition of 3 more NHs during the year, the total length of NH has become 4595 kms. Around 68 percent of NH are double and multiple lane roads and the rest 32 percent single and intermediate lane roads.

3.

The total length of the SH in Bihar in 2015 was 4253 kms. Around 65 percent of it were double-lane roads, 20 percent single-lane roads, and 15 percent intermediate-lane roads. The multiple-lane roads with more than 7-meter width constituted only 1.0 percent of the SH.

4.

There was 10,634 kms. of MDR in the state as on September, 2015, with a major portion (54 percent) having a width of 3.75 meters. Out of the total length of MDR, 4897 kms have been converted into intermediate or 2-lane width. Those roads which are yet to be converted into wider roads, have undergone surface renewal or repair work. In future, they will be converted into intermediate or 2-lane roads.

xix

5.

Rural roads connect the village to one-another and act as feeder to the nearest road of higher category (MDR, SH and NH). During 2014-15, a total of 50,596 kms. of rural roads were constructed with an expenditure of Rs. 26,233 crore.

6.

During 2005-06 to 2015-2016 (up to January 2016), the construction of 1013 major and minor bridges under Mukhyamantri Setu Nirman Yojna and 710 mega, major and minor bridges under other different heads have been completed. The mega bridge over river Sone between Arwal-Sahar (Rs. 163.00 crore), Balauaha Ghat Bridge over river Kosi under district Saharsa (Rs. 531 crore), bridge over river Gandak between DhanhaRatwal under West Champaran ( Rs. 358.67 crore), bridge over river Kosi at Vijay Ghat of Nawgachia under District Bhagalpur (367.81 crore), flyover between Sheikhpura more to Jagdeopath on Bailey Road in Patna (Rs. 298.70 crore) and 6 Lane RCC HL bridge over river Falgu under district Gaya have been completed.

7.

The registration of vehicles has increased to 614 thousand in 2014-15 from 387 thousand in 2010-11. This implied an annual growth rate of 12.2 percent. During the same period, the growth rate was in double digit for Auto Rickshaw (18.6 percent), Truck (13.5 percent), Tractor (13.4 percent) and Two Wheeler (12.9 percent).

8.

The number of aircraft movement increased from 9900 in 2013-14 to 11,054 in 201415. Over these two years, the number of passengers increased from 10.5 lakh to 12.0 lakh and freight also increased from 4849 tonnes to 5198 tonnes.

9.

The number of telephone connections increased more than 15 times between 2005-06 (42.14 lakh) and 2014-15 (661.69 lakh). This expansion in the telecom sector is mainly driven by the private network, with the share of BSNL showing a decline. The teledensity has increased from 1.15 to 51.17 per hundred population during 2001 to 2015. However, the rural tele-density of Bihar is still the lowest among all the major states of India.

10.

As on March 2014, a total of 9064 post offices were in existence in Bihar, out of which 8591 (95 percent) were in rural areas and 473 (5 percent) in the urban areas. In terms of share in the all-India postal network, the 6.2 percent of rural post offices in Bihar is rather less, since Bihar accounts for 11.1 percent of country’s for rural population.

11.

The ultimate irrigation potential in the state is estimated to be around 117.54 lakh hectares, including major, medium and minor irrigation schemes. This irrigation potential includes both surface and ground water sources. Till date, the created potential (67.46 lakh hectares) is 57.4 percent of the ultimate potential (117.54 lakh hectares). The utilised potential (57.63 lakh hectares) is 49.0 percent of ultimate potential.

ENERGY SECTOR

1.

The peak deficit in power has been around 30 percent for several years till 2012-13. In 2013-14 and 2014-15, this deficit was reduced to around 20 percent. Due to increased availability of power from an average of 6-8 hours to 14-16 hours in rural areas and xx

from 10-12 hours to 20-22 hours in urban areas, the per capita consumption of the state has risen from 145 kwh in 2012-13 to 203 kwh in 2014-15, implying a growth of about 40 percent in two years, which is the highest in the country. 2.

The installed power capacity in the state was 3704.63 MW in March, 2015. Out of t h i s , 83.5 percent is from coal based thermal power, 14.12 percent from hydro power, and the balance 2.3 percent from renewable energy sources. In terms of ownership, central sector has the largest share of 77.9 percent, followed by the private sector/IPPs (14.7 percent), and state sector ( 7.4) percent. In order to meet the increased demand, the state has already planned for increased capacity of 6521.30 MW from different sources in a phased manner by 2018-19. These sources are — own generating stations, renewable energy sources, central generating stations, and long/ medium term Power Purchase Agreements (PPA) through competitive bidding.

3.

The allocation of fund for Bihar State Power (Holding) Company Limited (BSPHCL) and its subsidiary companies, Bihar Renewable Energy Development Agency (BREDA) and Bihar State Hydroelectric Power Corporation (BSHPC) was Rs. 3110.92 crore in 2013-14, which increased to Rs. 4189.92 crore in 2014-15.

4.

At the end of October 2015, the distribution network in Bihar consisted of 1,33,491 circuit km low tension lines, 11 kV lines with 73,359 circuit km network, and 33 kV lines with 9815 circuit km network. There are 641 power substations (33/11 kV) and 1,00,842 distribution substations (11/0.4 kV).

5.

The generation and purchase of power (net of central transmission loss) in Bihar increased from 10,883 MU in 2010-11 to 17,418 MU in 2014-15. With increase in sales, the revenue collection has also increased. The cost coverage has also risen from 69 percent in 2010-11 to about 89 percent in 2014-15, thus bringing down financial loss from 31 percent to 11 percent.

6.

About 9307 circuit km EHV (Extra High Tension) transmission line, 98 grid substations with total transformation capacity of 6700 MVA and evacuation capacity of 5360 MW comprise its transmission system in Bihar. The projection for 2017-18 is 13,900 circuit km transmission line, 152 grid sub-stations with 12,830 MVA at 220/132 KV level and 13,020 MVA at 132/33 KV level. The power availability during the peak period was 2831 MW in 2014-15, which increased to 3459 MW in October 2015, implying an increase of 23 percent.

7.

There are 13 minor hydel projects that are currently operational in the state, with a total installed capacity of 54.3 MW. Presently, Bihar State Hydroelectric Power Corporation (BSHPC) is also engaged in exploring the possibilities of more minor hydel power projects in the state. There are 17 such schemes where the exploration work is in progress.

xxi

RURAL DEVELOPMENT

1.

According to the Tendulkar Committee estimates, the poverty ratio for Bihar is 34.1 percent for rural and 31.2 percent for urban households in 2011-12, implying an overall poverty ratio of 33.7 percent. Between 2004-05 and 2011-12, the poverty ratio declined by 20.7 percentage points for Bihar, as against 15.3 percentage points for all-India. The pace of reduction of rural poverty has been faster than that of the urban poverty, in both Bihar and India.

2.

JEEVIKA is an initiative of the state government for poverty alleviation. The Bihar Rural Livelihoods Promotion Society (BRLPS) is functioning under the overall framework of National Rural Livelihood Mission (NRLM) and implementing the JEEVIKA scheme. By the end of September, 2015, 47 lakh poor households were mobilised into 4.40 lakh Self-Help Groups (SHGs). Out of these SHGs, 60 percent were federated into 21,529 Village Organisations (VO).

3.

The MGNREGS has become a powerful instrument for inclusive growth in rural areas through its impact on livelihood security and social protection. As regards the number of job cards issued, it was 131.22 lakh in 2014-15. However, the number of households provided with employment has been decreasing over the years and, in 2014-15; it was only 10.36 lakhs. To the advantage of the women workers, their share in total employment has been above 25 percent in all the years; in 2014-15, this share was as high as 37.3 percent.

4.

The Indira Awaas Yojana (IAY) is a flagship scheme of the Ministry of Rural Development for rural housing. Since 2012-13, more than 100 percent of physical targets were achieved in Bihar under IAY. The share of SCs and STs in the total houses completed was barely half upto 2013-14, but there has been a notable improvement in 2014-15 when the share was 90.2 percent.

5.

The Public Distribution System (PDS) is a target group strategy to alleviate poverty, and it is extremely important for Bihar where incidence of poverty is very high. The lifting of both wheat and rice under Antyoday scheme has been close to 100 percent during the last five years. Under Priviledged Household (PHH) scheme, the lifting percentage was less than 100 percent for both wheat and rice upto 2012-13. But, during the last two years, it has been close to 100 percent. For wheat, liftings were 94.8 percent (2013-14) and 95.0 percent (2014-15). For rice, the liftings were 96.4 percent (2013-14) and 97.0 percent (2014-15).

6.

Under Disaster Management, the state government has formulated Bihar Scheme for Assistance to Farmers in Farm Distress, 2015 to provide assistance to farmers and take measures to prevent farm distress. Under this scheme, there is a provision of an exgratia payment of Rs. 4.00 lakh to be deposited in the name of the next-of-kin of the farmer who has died. This creates a fund with a Nationalized Bank which provides monthly interest to the account holder as a financial relief.

xxii

7.

A new scheme of town beautification plantation ‘Har Parisar Hara Parisar’ has been started by the Department of Environment and Forest from 2014. Under this scheme, 1.71 lakh plants have been planted in 234 campuses, against the target of 175 campuses. During the monsoon of 2015-16, another 1.82 lakh plants will be planted in 1114 campuses.

URBAN DEVELOPMENT

1.

With the level of urbanisation at 11.3 percent, Bihar is the least urbanised state in India. For the entire country, the urbanisation level stands at 31.2 percent. Bihar accounts for 8.6 percent of India’s total population, but it has only 3.1 percent of its urban population. This pattern of urbanisation in Bihar has continued for long. Between 1961 and 2011, the level of urbanisation has increased by only 3.9 percent — 7.4 percent in 1961 to 11.3 percent is 2011.

2.

Bihar has 141 Urban Local Bodies – 11 Municipal Corporations, 42 Nagar Parishads and 88 Nagar Panchayats. The state has already prepared a Bihar Urban Agenda, 2031. This document has a detailed roadmap for building urban infrastructure across all towns consistent with standards defined by the Ministry of Urban Development of the central government. The actual expenditure for urban development was Rs. 1391 crore in 201415. There has been a steady increase in such expenditure in last five years, growing annually at 40.1 percent. The utilisation of the disbursed amount has also been very high, at more than 90 percent in recent years.

3.

To improve, the status of municipal finances in Bihar, the SPUR project has conducted detailed analysis of the status of municipal finances in the 28 largest ULBs of the state. On an average, these ULBs raised Rs. 589 per capita in 2012-13, which comprised 25 percent of own revenues and the balance is accounted for by state devolutions, assignments and grants-in-aid.

BANKING AND ALLIED SECTORS

1.

In March 2015, a total of 6297 branches of commercial banks were operating in Bihar. During 2014-15, 389 new branches of Scheduled Commercial Banks were opened, with as many as 178 branches in rural areas, 97 branches in semi-urban areas, and 115 branches in urban areas. The growth in number of banks in 2014-15 was 6.6 percent, compared to 12.1 percent in 2013-14 which was the highest during the last six years.

2.

The total number of Cooperative Bank branches in Bihar was 288 in 2014, compared to 323 in 2013 and 295 in 2012. In addition to scheduled commercial banks and cooperative banks, the RRBs provide a multi-agency approach for agricultural and rural credit in India. At the end of September, 2015, Bihar had 2058 RRB branches which was 1889 in September, 2014. Of the three RRBs in Bihar, Uttar Bihar Kshetriya Gramin Bank alone accounted for 50 percent of the total RRB branches in the state.

3.

There has been a significant growth (15.3 percent) in the total deposits in Bihar in 201314 over the previous year. Simultaneously, the credit in 2013-14 has also expanded by xxiii

25.6 percent. Bihar’s share in the total deposits of Scheduled Commercial Banks increased slightly from 2.34 percent in 2012-13 to 2.39 percent in 2013-14, and its share of credit also improved marginally from 0.90 percent to 0.99 percent in this period. But, the total bank credit in Bihar does not account for even 1 percent of the total bank credit in the country. As on September 2015, the aggregate deposits of all banks in Bihar were Rs 2,20,667 crore, against a credit of Rs 1,04,004 crore, resulting in a CD ratio of 47.1 percent, substantially higher than the 32.1 percent in 2005-06. 4.

In 2014-15, the priority sector advances constituted 73 percent of the total bank advances in the state. The share of agriculture in the total advances was 50 percent, about the same as in the previous year. The advances made to the small and medium scale industries were 13 percent of the total loans disbursed in 2014-15, which was a little higher than 11 percent registered in 2013-14. The overall achievement under the Annual Credit Plan was 93 percent in 2014-15, which was about the same achieved in 2013-14 (92 percent). There was also an overachievement in respect of credit to small and medium enterprises during the last four years.

5.

As on March 2014, with 8463 PACS, Bihar accounts for 9.1 percent of all PACS in India. Out of the total 8463 PACS in Bihar, 3962 societies are making losses, their total loss amounting to Rs 1crore, while 1180 societies have earned a total profit of Rs 6 crore. The total deposits of all PACS were only Rs 175 crore, and their total borrowings amounted to Rs 508 crore.

6.

Till March, 2015, 19 tranches of RIDF have been sanctioned for Bihar, totaling to Rs 9735 crore. Out of this, Rs. 7586 crore (77.9 percent) was disbursed, and 84.6 percent of which was utilised.

7.

Till March, 2015, bank-linked SHG coverage in rural Bihar was 29.2 lakh households. The average savings per SHG in Bihar was Rs. 13,216, compared to the national average of Rs 14,368. The average credit of Rs 72 thousand per SHG was, however, far below the national average of Rs 1.69 lakh. NABARD has identified 16 districts in Bihar for promoting and financing women SHGs through positioning an anchor NGO in each identified district.

HUMAN DEVELOPMENT

1.

During the last five years, the level of Per Capita Development Expenditure (PCDE) in Bihar has been low compared to the national average; but thanks to the commitment of the state government, the annual growth rate PCDE in Bihar has been 29.6 percent, compared to a much lower growth rate of 17.8 percent for all states.

2.

The concerted efforts of the state government through ensuring round the clock delivery services in all PHCs had paid rich dividends in bringing down the IMR considerably in Bihar. In 2012-13, the IMRs in Bihar were — male (40), female (43), and overall (42). The corresponding figures for India were — male (39), female (42), and overall (40).

xxiv

Thus, the situation in Bihar was very close to the national average, in spite of its serious economic and social disadvantages. 3.

The average number of patients visiting government hospitals per month was 4675 in 2010, which has increased to 9871 in 2014. This more than two fold increase is due to better infrastructure facilities, larger manpower, and proper monitoring of the heatlh institutions.

4.

The number of institutional deliveries in Bihar has increased rapidly in the recent years, growing annually at 24.2 percent. Bihar has also made substantial progress towards universal immunisation in the recent years. Bihar was declared as ‘Maternal and Neonatal Tetanus free State’ in 2015. The pentavalent vaccination in which five individual vaccines has been conjugated (Haemophilus Influenza type B, whooping cough, tetanus, hepatitis B and diphtheria) has started in 2015.

5.

The ICDS programme is running in all the 38 districts of Bihar through 544 project offices. In all, 91.6 thousand AWCs have been established to cater to 19.1 million children (0-6 years) and 60.3 lakh pregnant and lactating women. The budget provision for ICDS has steadily increased from Rs. 880.24 crore in 2010-11 to Rs. 2238.31 crore in 2014-15, implying an annual growth rate of 24.3 percent.

6.

In 2014-15, as many as 24.3 thousand handpumps have been installed under the National Rural Drinking Water Programme (NRDWP). The goal of NRDWP is to ensure that, by 2022, every rural household in the country has access to at least 70 litres of water per capita per day (lpcd) within their household premises or at a distance of less than 50 meters from their households. In 2014-15, there were also additions in the construction of individual household latrines (1.65 lakh), sanitary complexes (20), school toilets (1046) and Anganwadi toilets (11). The smaller figures for sanitary complexes, school toilets and Anganwadi toilets is mainly because most of them have already been covered in previous years.

7.

The literacy rate in Bihar is low at 61.8 percent, with male literacy at 71.2 percent and female literacy at 51.5 percent (2011 census). However, the increase in literacy rate in Bihar was 17.9 percentage points between 2001 and 2011, compared to 10.9 percentage points for the entire country. This decadal increase is not only the highest among all the decadal growth rates in Bihar since 1961, it is also the highest among all the states for the decade 2001-11.

8.

The total enrolment in primary level was 161.20 lakhs in 2013-14, increasing from 139.08 lakhs in 2009-10. At the upper primary level also, the enrolment has shown an increasing trend. The total enrolment has increased from 41.27 lakh in 2009-10 to 65.41 lakh in 2013-14, implying an annual growth rate of 12.0 percent. As a whole, the total enrolment, taking both primary and upper primary levels, rose to 226.61 lakhs in 201314 from 180.35 lakhs in 2009-10, with an annual growth rate of 6.0 percent. Additionally, the total enrolment for SC and ST students during this period has also grown at the rate of 8.1 and 16.0 percent respectively. xxv

9.

At all levels of education, the dropout rates have continuously declined during the recent years. At the primary level, dropout rate recorded a decrease of 13.4 percentage points between 2009-10 (42.5 percent) and 2013-14 (29.1 percent). At the upper primary level, this decrease was 12.3 percentage points. However, the dropout rates at secondary and higher secondary levels are much higher than that at the elementary level.

10.

In 2010-11, the coverage of MDMS at primary level was 55.5 percent, which increased to 65.9 percent in 2014-15. Similarly, the coverage of MDMS at upper primary level was 48.6 in 2010-11 and it is 61.1 percent in 2014-15. Thus, the coverage at both the levels have increased in the recent years, although there was decline in coverage in some intervening years.

11.

According to the ASER Report, the quality of learning has been declining over the years, both in Bihar and India. As regards learning outcomes in the recent years, in Standard III, the percentage of students with satisfactory reading skills is lower in Bihar than the national average, while for mathematical skills it is nearly the same. For Standard V students, the percentage of students with satisfactory reading skills is same for both Bihar and India. However, for mathematical skills, the figures for Bihar are much higher than that of India. These results underline the necessity of improving the quality of elementary education throughout the country, including Bihar.

12.

In 2014, there were 278 government colleges and 416 local body colleges. In addition, there are 43 teacher training centres in Bihar. Till date, 31 colleges in Bihar have been accredited to NAAC.

13.

At present, 80 residential schools are running for SC/ST students. The sanctioned strength of the schools were 30,560 in 2014-15. A sum of Rs. 17.50 crore will be spent for the construction of more such residential schools, with additional capacity of 560 students.

14.

To expand the employment opportunities, the state government has taken several initiatives through Bihar Skill Development Mission. It has plans for skill upgradation of 1 crore youth by 2017. To help them obtain gainful employment, the skill upgradation scheme has a budget of Rs. 19.05 crore. ____________

xxvi

CHAPTER I BIHAR ECONOMY : AN OVERVIEW

After the installation of a new government in November, 2015 in Bihar, the state has witnessed a major political change. The present Economic Survey is the first report by the new government. Besides the political change, yet another important event of 2015-16 was the submission of the report by Fourteenth Finance Commission which has substantial implications for the state’s finances. Unfortunately, these recommendations have largely ignored the principle of equalisation and it would certainly make the task of the state government more difficult regarding its development agenda. The growth performance of the Bihar economy has been steady in the recent decade. During the period 2005-06 to 2014-15, the state economy has grown annually at 10.5 percent, which is one of the highest among all major Indian states. This growth performance is even more appreciable in the background of slower growth rate for the national economy. Through higher development expenditure, the state government was able to insulate Bihar’s economy from the macroeconomic constraints that had hampered the growth of national economy. Apart from attaining a high growth rate in economy, Bihar was also able to ensure that its growth process is indeed inclusive. This was possible first because of a high growth rate of the agricultural sector and, secondly, through a number of welfare programmes benefitting the marginalised sections of the population. The high level of development expenditure by the state government has been one of the principal causes behind the appreciable growth performance of the state’s economy. The state government was thus able to maintain high level of development expenditure, without compromising on the principles of financial management like generating revenue surplus, keeping Gross Fiscal Deficit within the limits, and containing the level of outstanding debt. During 2015-16, the state government has continued that practice of financial discipline which will facilitate its development agenda in near future. The current status of the state’s overall economy as well as its various sectors are presented in this Economic Survey for 2015-16. The sectoral analysis will highlight the efforts made by the state government for different sectors and their respective achievements. It will simultaneously point out the hindrances that the economy is still facing to maintain its growth momentum. Apart from this Introductory chapter on the overview of the state’s economy, the survey has nine more chapters – State Finances, Agriculture and Allied Sectors, Enterprises Sector, Infrastructure, Energy Sector, Rural Development, Urban Development, Banking and Allied Sector and, finally, Human Development. 1

1.1 Demography The demographic profile of any region is an important dimension of its macro-economic scenario. Table 1.1 presents the broad demographic profile of Bihar and India. According to 2011 census, the population of Bihar is 104.1 million, about 8.6 percent of India’s total population of 1210.6 million. The demographic profile of Bihar is much different from that of the entire country. First, the decadal growth rate of population in Bihar during 2001-11 was as high as 25.1 percent, compared to only 17.6 percent for India. Bihar is yet to experience the demographic transition that most other states of India have already undergone. Secondly, the density of population in Bihar (1106 persons/ sq.km.) is much higher in Bihar than in India (382 persons/ sq.km.). Such population pressure makes the development challenge in Bihar even more difficult. Finally, the urbanisation level in Bihar (11.3 percent) is also extremely low, compared to the national average (31.2 percent). This is indeed the most ruralised state in India. In this context, it also needs to be noted that between 2001 and 2011, the urbanisation level in Bihar has increased by only 0.8 percent, whereas the increase was a substantial 3.4 percent for the entire country. Table 1.1 : Demographic Profile and Administrative Structure of Bihar and India (2001 and 2011) Bihar

India

Demographic Indicator 2001

2011

2001

2011

Population (million)

82.9

104.1

1028.7

1210.6

Sex Ratio (females per '000 males)

919

918

933

943

Child Sex Ratio

942

935

927

919

Density (persons per sq. km.)

880

1106

325

382

Urbanisation (Percentage)

10.5

11.3

27.8

31.2

Decadal Growth (Percentage)

28.6

25.1

21.5

17.6

37

38

593

640

No. of CD blocks

533

534

5463

5924

No. of Towns (statutory/census)

130

199

5161

7935

No. of Districts

No. of Villages

45098 39073

638596 597369

Source : Census of India, 2001 and 2011

The district-wise demographic features of Bihar points to a very heterogeneous pattern. Table A 1.1 (Appendix) presents the district-wise profile, depicting demographic variations over the districts. In terms of decadal growth rate of population, the best performing districts are — Arwal, Darbhanga and Gopalganj. Regarding sex-ratio, the range of variation is from 876 (Munger) to 1021 (Gopalganj), the state average being 918. The child sex-ratio seems to be rather uniform across the districts. Out of 38 districts, about 20 districts are having density of population greater than that of the state average. 2

1.2 State Domestic Product The estimates of State Domestic Product of Bihar are prepared, separately for both Gross State Domestic Product (GSDP) and Net State Domestic Product (NSDP), both at current and constant prices. In Table A 1.2 (Appendix), the estimates of GSDP and NSDP are presented for the period 2004-05 to 2014-15. In Tables A 1.3 and A 1.4 (Appendix), the sector-wise estimates of GSDP are presented at current and constant (2004-05) prices for 2010-11 to 2014-15. Further, the sector-wise estimates of NSDP at current and constant (2004-05) prices for the same period are presented in Tables A 1.5 and A 1.6 (Appendix), respectively. The GSDP of Bihar at 2004-05 prices in 2014-15 was Rs. 1.90 lakh crore, yielding a per capita income of Rs. 18,560. The estimated GSDP at current prices in 2014-15 is Rs. 4.02 lakh crore, implying a per capita income of Rs. 39,341. During the last decade (2005-06 to 2014-15), the state income at constant prices grew annually at 10.52 percent. In the immediate past (2010-11 to 2014-15) the growth rate of GSDP was slightly lower at 9.89 percent. During the last two years, the growth rates have been — 9.1 percent (2013-14) and 9.4 percent (2014-15). It is thus observed that the growth of the state economy has been a little slower in the recent years. This is basically a reflection of the slowing down of the overall national economy. But fortunately, even now the growth of the Bihar economy is faster than that of the national economy. Presently, Bihar is one of the fastest growing states in India.

To identify the major contributors to growth in state income, one needs to examine the sectoral growth rates (Table 1.2). During the period 2005-06 to 2014-15, the sectors which recorded more than 15 percent growth rate are — Registered Manufacturing (19.31 percent), Construction (16.58 percent), Banking and Insurance (17.70 percent), and Transport/Storage/Communication (15.08 percent). For Communication, the growth rate was 25.38 percent. One can thus conclude that Communication and Registered Manufacturing have emerged as leading contributors to the growth process. It is also heartening to note that the rate of growth of Agriculture and Animal Husbandry sector has been 6.02 percent during 2005-06 to 2014-15. This is of special significance, as nearly 90 percent of state’s population live in rural areas and primarily depend on this sector for livelihood.

As can be seen from Table A 1.7 (Appendix), there is remarkable variation in year to year sectoral growth rates. The Agriculture and Animal Husbandry sector, which grew at 19.91 percent in 2010-11, recorded a growth rate of 8.64 percent in 2012-13, (-) 7.23 percent in 201314, and 4.64 percent in 2014-15. This is because of variation in rainfall patterns which that cause fluctuation in agricultural production which accounts for about 20 percent of GSDP. It is,

3

therefore, essential that the rate of growth of Agricultural sector should be stabilized for a steady growth of GSDP in future years. Table 1.2 : Annual Growth Rate of GSDP 2013-14 Sl. No.

Sector

2014-15

2010-11 to 2014-15 2005-06 to 2014-15

Current Constant Current Constant Current Constant Current Constant Prices Prices Prices Prices Prices Prices Prices Prices

1

Agriculture/Animal Husbandry

1.6

-7.2

11.7

4.6

13.8

3.75

16.8

6.02

2

Forestry / Logging

5.8

-1.9

5.6

-1.8

6.0

-1.88

5.0

-1.95

3

Fishing

30.8

8.0

30.8

8.0

29.3

12.61

21.0

6.45

4

Mining/Quarrying

11.7

11.7

0.0

0.0

2.9

1.95

5.0

5.77

Sub-Total (Primary)

3.3

-6.1

12.6

4.4

14.2

3.74

16.1

5.33

5

Manufacturing

8.5

3.6

8.3

5.4

6.3

0.74

13.9

7.00

5.1

Registered

6.6

0.8

5.9

5.7

2.9

-2.83

28.2

19.31

5.2

Un-registered

9.7

5.2

9.7

5.2

8.6

2.95

9.5

3.38

6

Construction

24.5

15.1

19.5

10.5

16.9

8.05

25.7

16.58

7

Electricity/ Water Supply/ Gas

18.3

9.7

15.2

7.5

22.8

8.22

15.9

7.97

20.3

11.9

16.8

9.1

14.6

6.20

21.6

13.07

Transport / Storage / Communication

20.0

11.9

21.2

12.8

19.6

12.72

16.5

15.08

8.1

Railways

13.2

0.8

13.2

0.8

10.7

0.41

9.6

3.91

8.2

Other Transport

24.4

14.1

25.9

16.2

25.5

15.49

22.1

12.17

8.3

Storage

17.7

9.0

17.7

9.0

18.8

9.58

19.5

9.38

8.4

Communication

14.4

14.4

14.4

14.4

13.2

15.74

11.4

25.38

Sub-Total (Secondary) 8

9

Trade / Hotel / Restaurant

20.3

11.4

20.3

11.5

23.7

14.10

23.6

13.13

10

Banking / Insurance

23.0

20.5

23.0

20.5

22.5

19.60

20.7

17.70

11

Real Estate/ Ownership of Dwelling/Business Services

18.3

10.9

18.8

11.2

18.6

10.65

20.4

9.69

12

Public Administration

29.7

20.1

9.6

1.6

16.9

8.14

17.7

8.28

13

Other Services

28.4

18.1

18.4

9.1

23.5

13.70

18.5

8.70

Sub-Total (Tertiary)

22.7

14.3

18.9

11.2

22.0

13.46

20.6

12.00

Total GSDP

17.0

9.1

17.1

9.4

18.6

9.89

19.5

10.52

Per Capita GSDP

15.6

7.8

15.7

8.1

17.1

8.50

17.9

8.99

Source : Directorate of Economics and Statistics, GOB

4

To compare Bihar’s economic position vis-à-vis other states, the per capita NSDP of various states has been presented in Table 1.3. These figures are presented at constant prices (2004-05) for the years 2012-13, 2013-14 and 2014-15. In spite of a high growth phase (2005-06 to 201415), Bihar even now ranks at the lowest rung of the per capita income table. In 2012-13, the per capita income of Bihar was 37.0 percent of all-India average; in 2014-15, this ratio went up to 40.6 percent. With the sustained growth process, the gap between Bihar and India was bridged by about 4 percentage point over a three year period. So, the momentum of growth has got to be sustained for many more years if the gap between the per capita income of Bihar and India is to be wiped out. Admittedly, once the growth process reaches a high point, the linkage effect within the economy starts working, thereby increasing the growth momentum. Yet, some big push in investment is required, be it public or private, to free Bihar economy from its present low level. Table 1.3 : Per Capita Net State Domestic Product (NSDP) at 2004-05 Prices of Major Indian States (Rupees) States

Annual Growth 2012-13 2013-14 2014-15 Rate (2010-15)

States

Annual Growth 2012-13 2013-14 2014-15 Rate (2010-15)

Andhra Pradesh

39645

42170

44831

4.45

Maharashtra

65095

69097

72200

5.17

Bihar

14356

15506

16801

8.58

Odisha

25163

24929

26531

2.21

Chhattisgarh

28087

28373

29047

2.69

Punjab

47854

49529

51403

3.49

Gujarat

59157

63168

-

5.38

Rajasthan

30839

31836

33186

4.58

Haryana

64052

67260

71493

5.25

Tamil Nadu

58360

62361

66635

5.41

Jharkhand

27010

28882

30950

6.34

Uttar Pradesh

18635

19233

20057

3.57

Karnataka

43266

46012

48907

4.82

West Bengal

34177

36293

38624

5.55

Kerala

55643

58961

-

5.53

Madhya Pradesh

24867

26853

29218

7.65

All India

38856

39904

41398

3.21

Source : Central Statistical Organisation; Government of India

It is historically observed that, with economic growth, the structure of any economy undergoes changes. This is primarily because, with increase in income, the pattern of demand changes from primary sector products to secondary sector products and services from the tertiary sectors. Such changes for the Bihar have been presented in Table 1.4. Two columns of the table present the average sectoral output shares for the triennium (2004-05 to 2006-07) and (2012-13 to 2014-15). The average shares of three major sectors in the first trienniums are — 30.2 percent for primary, 14.8 percent for secondary, and 55.0 percent for tertiary sector. In the second triennium, the share of primary sector has come down to 20.5 percent. Because of the tremendous growth of the economy, the share of secondary sector rose to 18.4 percent and that of tertiary sector to 61.2 percent. 5

Table 1.4 : Sectoral Composition of GSDP at Constant (2004-05) Prices Sl. No.

Sector

2004-05 to 2006-07

2012-13 to 2014-15

25.5

18.1

1

Agriculture/Animal Husbandry

2

Forestry / Logging

3.3

1.3

3

Fishing

1.4

1.1

4

Mining/Quarrying

0.1

0.1

30.2

20.5

Manufacturing

5.3

4.3

5.1

Registered

0.9

1.5

5.2

Un-registered

4.4

2.8

Sub-Total (Primary)

5

6

Construction

8.0

12.8

7

Electricity / Water Supply / Gas

1.5

1.2

14.8

18.4

Transport / Storage / Communication

6.4

8.7

8.1

Railways

2.0

1.4

8.2

Other Transport

2.6

2.9

0.1

0.1

1.7

4.4

20.2

24.2

Sub-Total (Secondary)

8

8.3 8.4

Storage Communication

9

Trade / Hotel / Restaurant

10

Banking / Insurance

3.7

6.2

11

Real Estate/ Ownership of Dwelling/Business Services

5.5

5.3

12

Public Administration

6.4

5.3

13

Other Services

12.9

11.4

55.0

61.2

100.0

100.0

Sub-Total (Tertiary) Total GSDP

Within the major sectors, the shares of some sub-sectors have shown substantial change over the period. In the primary sector, Agriculture and Animal Husbandry showed substantial decline in its share. Within the secondary sector, it is Construction whose share has increased substantially from 8.0 percent to 12.8 percent. Within the tertiary sector, the sub-sectors which recorded higher growth rate and propelled its share to increase was Communication, Banking and Insurance, Trade, Hotel and Restaurants. The Public Administration and other services experienced a drop in their shares in GSDP. 6

1.3 Regional Disparity As there exists disparity in per capita income across the states of India, there also exists similar disparity among the districts of Bihar. This is recorded by the district-wise data on Per Capita GDDP (Gross District Domestic Product) in 2011-12, as shown in Table A 1.8 (Appendix). In 2011-12, Patna, Munger and Begusarai turn out to be the most prosperous districts of the state. The poorest districts according to the data are — Madhepura, Supaul and Sheohar. If one leaves out Patna (the capital of the state), the per capita income of Munger is around 3 times that of Sheohar, the poorest district. Apart from a measure of GDDP, consumption patterns of Petrol, Diesel and Cooking Gas also throw light on the economic disparity among the districts. In Table A 1.9 (Appendix), data relating to the consumption of various petroleum products in different districts is presented for 2013-14 and 2014-15. The table also presents the average consumption levels for those two years, the shares of districts in total consumption, and their shares of population. If the share of consumption happens to be higher than that of population share, the district is identified as relatively prosperous. Based on this method, 3 most prosperous and most backward districts have been identified, and their names have been presented in Table 1.5. Patna happens to be the most prosperous district on all three indicators. For Patna, compared to the population share of 5.6 percent, the consumption shares are — Petrol (14.6), Diesel (10.2 percent) and Cooking Gas (16.3 percent). As revealed by the data, for Petrol, Patna is followed by Muzaffarpur and Vaishali. In case of Diesel, Patna is followed by Begusarai and Muzaffarpur. In case of Cooking Gas, Patna is followed by Muzaffarpur and Vaishali. Chart 1.1 : District-wise Per Capita Income in Bihar (2011-12) 70000 60000 50000 40000 30000 20000 10000 Patna Munger Begusarai Bhagalpur Muzaffarpur Bihar Rohtas Lakhisarai Nalanda Vaishali Bhojpur Saharsa Gopalganj Gaya Khagaria Buxar Katihar Jehanabad Aurangabad Darbhanga Samastipur E. Champaran Siwan Saran Kaimur Jamui Purnea W. Champaran Kishanganj Sheikhpura Nawada Sitamarhi Banka Madhubani Arwal Araria Madhepura Supaul Sheohar

0

In terms of these indicators, the most disadvantaged districts are Sheohar, Supaul, Madhepura, Arwal, Sitamarhi, Banka, Purnea and Katihar. 7

Table 1.5 : Relatively Prosperous and Backward Districts of Bihar

Criteria

Top 3 districts

Bottom 3 districts

GDDP

Patna, Munger, Begusarai

Sheohar, Supaul, Madhepura

Petrol

Patna, Muzaffarpur, Vaishali

Sitamarhi, Banka, Nawada

Diesel

Patna, Begusarai, Muzaffarpur

Madhubani, Darbhanga

LPG

Patna, Muzaffarpur, Vaishali

Araria, Katihar, Purnea

Small Savings

Patna, Bhojpurj, Nalanda

East Champaran, Araria

Sitamarhi,

Purnea,

The deposits in small savings kept in post offices and Public Provident Fund across the districts can also be considered as another index of relative prosperity of the districts. The data related to such deposits are given in Table A 1.10 (Appendix). In the table, the average for these deposits for the years 2013-14 and 2014-15 are presented, along with percentage share for each districts in total savings. A higher percentage share of each districts vis-à-vis its population share indicates the prosperity of the district. The relatively prosperous districts on this count are — Patna, Saran and Bhojpur (Table 1.5). At the other end, the backward districts as per the above indicator are — West Champaran, Sitamarhi and Araria. 1.4 Wholesale and Consumer Price Indices The estimates of wholesale and consumer prices indices indicate the trend of price movement over time. In India, the Wholesale Price Index (WPI) is available for the country as a whole. The Consumer Price Index (CPI), however, is available separately for Industrial Workers, Agricultural Labours and Rural Labourers, for country as a whole as well as for different states. These index numbers have separate base years — 2004-05 for WPI, 2000-01 for CPI for Industrial Workers and 1986-87 for Agricultural Labourers and Rural Labourers. In Table 1.6, the data regarding all the indices have been presented. From Table 1.6, we can visualize that the rise in prices for rural labourers have been comparatively slower in Bihar than in for India as a whole. For agricultural labourers, the picture remains the same. Between 2006-07 and November 15, 2015, the index for agricultural labourers rose from 372 to 853 (a rise of 481 points) for the entire country; whereas for Bihar, the index rose from 376 to 746 (a rise of 370 points) during the same reference period. In case of Industrial workers, the price rise has been nearly the same for Bihar and India. Between 2006-07 and November, 2015, the index rose by 162 points for Bihar; while for India as a whole, the rise was by 147 points. By November, 2015, the latest month for which the data have been reported, the CPI for Industrial workers stood at 287 for Bihar and 270 for India. 8

Table 1.6 : Wholesale and Consumer Price Indices in Bihar and India

Year

Wholesale Industrial Agricultural Price Index Workers (Base Labourers (Base (Base 20042000-2001=100) 1986-87=100) 05=100)

Rural Labourers (Base 198687=100)

India

Bihar

India

Bihar

India

Bihar

India

2006-07

111.4

125

123

376

372

376

359

2007-08

116.6

134

131

403

402

403

391

2008-09

126.0

144

142

437

439

437

414

2009-10

130.8

162

157

488

494

488

461

2010-11

143.8

182

175

524

552

524

541

2011-12

156.1

199

195

545

622

547

623

2012-13

167.6

215

215

600

672

603

673

2013-14

177.6

238

236

671

750

675

751

2014-15

181.2

258

251

721

800

725

802

Apr-15

176.4

269

256

706

805

712

809

May-15

178.0

269

258

704

811

710

816

Jun-15

179.1

271

261

704

820

711

824

Jul-15

177.6

273

263

713

822

719

827

Aug-15

176.5

278

264

721

832

728

836

Sep-15

176.5

281

266

731

839

737

843

Oct-15

176.7

285

269

739

849

745

853

Nov-15

177.6

287

270

746

853

752

857

Source: RBI and Labour Bureau, Government of India.

9

APPENDIX Table A 1.1 : District-wise Demographic Profile of Bihar (2001 and 2011)

District

Population (lakh)

Sex Ratio (Overall) 2001 2011

Sex Ratio (Child) 2001 2011

2001

2011

2001

2011

Density

Urbanisation

Decadal Growth 2011

2001

2011

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

47.2 23.7 22.4 14.0 24.5 12.9

58.4 28.8 27.3 17.1 29.6 16.3

873 914 901 900 910 901

897 922 907 922 918 920

923 941 940 929 952 942

909 931 918 934 931 942

1471 1006 903 864 636 382

1803 1220 1136 1003 763 488

41.6 14.9 13.9 9.2 13.3 3.3

43.1 15.9 14.3 9.6 14.5 4.0

23.7 21.4 21.6 21.7 20.8 26.2

Gaya Jehanabad Arwal Nawada Aurangabad

34.7 9.2 5.9 18.1 20.1

43.9 11.3 7.0 22.2 25.4

938 927 931 946 934

937 922 928 939 926

968 915 917 978 941

960 922 940 945 944

699 963 -726 607

880 1206 1099 889 760

13.7 12.1 0.0 7.7 8.4

13.2 12.0 7.4 9.7 9.3

26.4 21.7 18.9 22.6 26.2

Saran Siwan Gopalganj

32.5 27.1 21.5

39.5 33.3 25.6

966 1031 1001

954 988 1021

949 933 964

926 940 954

1231 1221 1057

1493 1495 1258

9.2 5.5 6.1

8.9 5.5 6.4

21.6 22.7 19.0

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

30.4 39.4 37.5 26.8 5.2 27.2

39.4 51.0 48.0 34.2 6.6 35.0

901 896 921 892 883 919

909 902 900 899 893 895

952 935 927 924 911 939

953 933 915 930 929 904

582 991 1180 1214 1161 1332

750 1281 1506 1491 1882 1717

10.2 6.4 9.3 5.7 4.1 6.8

10.0 7.9 9.9 5.6 4.3 6.7

29.3 29.4 28.1 27.6 27.2 28.6

Darbhanga Madhubani Samastipur

33.0 35.8 33.9

39.4 44.9 42.6

914 942 928

911 926 911

913 941 937

931 936 923

1442 1020 1175

1721 1279 1465

8.1 3.5 3.7

9.7 3.6 3.5

19.5 25.5 25.5

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

23.5 11.4 5.3 8.0 14.0 12.8

29.7 13.7 6.4 10.0 17.6 16.7

911 872 920 919 919 885

895 876 930 902 922 886

947 916 964 954 965 931

919 922 940 920 956 926

1222 800 762 652 451 859

1540 958 922 815 567 1115

4.6 27.9 15.6 14.7 7.4 5.9

19.2 27.8 17.1 14.3 8.3 5.2

26.4 20.2 21.1 24.8 25.9 30.2

Bhagalpur Banka

24.2 16.1

30.4 20.3

875 909

880 907

967 964

938 943

946 533

1180 672

18.7 3.5

19.8 3.5

25.4 26.5

Saharsa Supaul Madhepura

15.1 17.3 15.3

19.0 22.3 20.0

911 921 916

906 929 911

910 927 930

933 944 930

885 724 853

1125 919 1116

8.3 5.1 4.5

8.2 4.7 4.4

26.0 28.7 31.1

Purnea Kishanganj Araria Katihar

25.4 13.0 21.6 23.9

32.6 16.9 28.1 30.7

916 934 914 919

921 950 921 919

968 946 963 966

954 971 957 961

787 687 751 782

1014 898 992 1004

8.7 10.0 6.2 9.2

10.5 9.5 6.0 8.9

28.3 30.4 30.2 28.4

830.0

1041.0

1106

10.5

11.3

25.4

Bihar

919 918 942 935 880 Source : Census of India, 2001 and 2011

10

Table A 1.2 : Gross State Domestic Product (GSDP) and Net State Domestic Product (NSDP) of Bihar At Factor Cost GSDP (Rs. crore)

NSDP (Rs. crore)

Per Capita GSDP (Rs.)

At current prices

At constant (2004-05) prices

At current prices

At constant (2004-05) prices

At current prices

At constant (2004-05) prices

2004–05

77781

77781

70167

70167

8773

8773

2005–06

82490

76466

74144

68419

9149

8481

2006–07

100737

88840

91331

80260

10994

9695

2007–08

113680

93774

102853

84415

12215

10076

2008–09

142279

107412

129690

97284

15060

11369

2009–10

162923

113158

148151

101938

16998

11806

2010–11

203555

130171

185745

117503

20944

13393

2011-12

243269

143560

222442

129521

24696

14574

2012-13

293616

158909

268902

143250

29425

15925

2013-14

343663

173409

315225

156671

34014

17163

2014-15

402283

189789

369576

171802

39341

18560

CAGR

18.9

10.0

19.1

10.1

17.2

8.5

Year

Source : Directorate of Economics and Statistics, GOB Note: Data of 2013-14 Provisional Estimates and 2014-15 Advance Estimates

11

Table A 1.3 : Gross State Domestic Product (GSDP) of Bihar at Factor Cost (Current Prices) (Rs. crore) No.

Sector

1

Agriculture/Animal Husbandry

2

2010-11 2011-12 2012-13 2013-14 2014-15

CAGR

47415

57981

71403

72537

81044

13.8

Forestry / Logging

3499

3753

3958

4189

4424

6.0

3

Fishing

2366

3244

3953

5171

6764

29.3

4

Mining/Quarrying

120

116

117

131

131

2.9

53400

65094

79432

82027

92362

14.2

11046

10818

11751

12750

13808

6.3

Sub-Total (Primary) Manufacturing 5

5.1

Registered

4718

4092

4469

4762

5045

2.9

5.2

Un-registered

6328

6726

7282

7988

8763

8.6

27590

32049

34811

43325

51757

16.9

1661

2539

2917

3452

3976

22.8

40297

45405

49480

59526

69542

14.6

10324

11711

14346

17218

20861

19.6

6

Construction

7

Electricity / Water Supply / Gas

Sub-Total (Secondary) Transport / Storage / Communication

8

8.1

Railways

2807

2844

3220

3645

4126

10.7

8.2

Other Transport

5357

6503

8416

10466

13172

25.5

158

194

229

270

318

18.8

2001

2169

2481

2838

3245

13.2

46278

58163

74650

89767

108005

23.7

6363

7672

9434

11600

14264

22.5

8.3 8.4

Storage Communication

9

Trade / Hotel / Restaurant

10

Banking / Insurance

11

Real Estate/ Ownership of Dwelling/Business Services

12440

14922

17562

20778

24688

18.6

12

Public Administration

12040

13598

15302

19844

21758

16.9

13

Other Services

22413

26704

33410

42902

50804

23.5

Sub-Total (Tertiary)

109858

132770

164704

202109

240379

22.0

Total GSDP

203555

243269

293616

343663

402283

18.6

20944

24696

29425

34014

39341

17.1

Per Capita GSDP

Source : Directorate of Economics and Statistics, GOB Note : Data of 2013-14 is Provisional Estimates and 2014-15 Advance Estimates

12

Table A 1.4 : Gross State Domestic Product (GSDP) of Bihar at Factor Cost (2004-05 Prices) (Rs. crore) No.

Sector

1

Agriculture/Animal Husbandry

2

2010-11 2011-12 2012-13 2013-14 2014-15

CAGR

26365

29931

32518

30166

31567

3.7

Forestry / Logging

2414

2365

2320

2277

2237

-1.9

3

Fishing

1223

1458

1694

1830

1977

12.6

4

Mining/Quarrying

93

104

92

103

103

1.9

30095

33859

36625

34376

35884

3.7

Manufacturing

7698

6990

7117

7376

7775

0.7

5.1

Registered

3150

2501

2534

2554

2700

-2.8

5.2

Un-registered

4548

4489

4583

4822

5075

3.0

18156

19573

19596

22551

24909

8.0

1706

1849

1981

2173

2336

8.2

Sub-Total (Secondary)

27560

28412

28694

32100

35020

6.2

Transport / Storage / Communication

10512

11967

13493

15097

17032

12.7

Sub-Total (Primary)

5

6

Construction

7

Electricity / Water Supply / Gas

8

8.1

Railways

2340

2312

2331

2350

2369

0.4

8.2

Other Transport

3270

3714

4373

4988

5796

15.5

95

106

116

126

138

9.6

4807

5835

6673

7632

8729

15.7

27845

31804

37735

42028

46841

14.1

8.3 8.4

Storage Communication

9

Trade / Hotel / Restaurant

10

Banking / Insurance

6304

7316

8816

10624

12802

19.6

11

Real Estate/ Ownership of Dwelling/Business Services

6834

7517

8302

9208

10242

10.7

12

Public Administration

7492

7743

8100

9731

9884

8.1

13

Other Services

13530

14943

17145

20246

22083

13.7

Sub-Total (Tertiary)

72517

81290

93590

106933

118885

13.5

Total GSDP

130171

143560

158909

173409

189789

9.9

Per Capita GSDP

13393

14574

15925

17163

18560

8.5

Source : Directorate of Economics and Statistics, GOB Note : Data of 2013-14 is Provisional Estimates and 2014-15 Advance Estimates

13

Table A 1.5 : Net State Domestic Product (NSDP) of Bihar at Factor Cost (Current Prices) (Rs. crore) No.

Sector

1

Agriculture/Animal Husbandry

2

2010-11 2011-12 2012-13 2013-14 2014-15

CAGR

42365

52480

64764

65792

73508

14.2

Forestry / Logging

3457

3708

3913

4141

4373

6.0

3

Fishing

2018

2730

3350

4382

5732

29.2

4

Mining/Quarrying

97

93

91

101

101

1.7

47937

59012

72118

74416

83714

14.4

Manufacturing

9506

8971

9528

10351

11228

4.9

5.1

Registered

3998

3150

3195

3405

3607

-1.3

5.2

Un-registered

5508

5821

6332

6946

7621

8.6

26148

30366

32799

40820

48765

16.7

923

1262

1462

1730

1993

20.4

36577

40599

43789

52901

61986

14.1

Transport / Storage / Communication

8895

10048

12526

15122

18439

20.5

8.1

Railways

2012

2036

2320

2626

2973

10.9

8.2

Other Transport

5165

6228

8164

10152

12778

25.9

8.3

Storage

153

188

224

263

310

19.0

8.4

Communication

1565

1597

1819

2080

2379

11.7

45655

57421

73604

88509

106491

23.7

Sub-Total (Primary)

5

6

Construction

7

Electricity / Water Supply / Gas

Sub-Total (Secondary)

8

9

Trade / Hotel / Restaurant

10

Banking / Insurance

6271

7568

9305

11442

14069

22.5

11

Real Estate/ Ownership of Dwelling/Business Services

8376

10349

12268

14514

17245

19.5

12

Public Administration

10114

11417

12580

16314

17887

16.2

13

Other Services

21920

26028

32713

42007

49744

23.6

Sub-Total (Tertiary)

101231

122831

152996

187907

223876

22.3

Total NSDP

185745

222442

268902

315225

369576

18.8

19111

22582

26948

31199

36143

17.3

Per Capita NSDP

Source : Directorate of Economics and Statistics, GOB Note : Data of 2013-14 is Provisional Estimates and 2014-15 Advance Estimates

14

Table A 1.6 : Net State Domestic Product (NSDP) of Bihar at Factor Cost (2004-05 Prices) (Rs. crore) No.

Sector

1

Agriculture/Animal Husbandry

2

Forestry / Logging

3

Fishing

4

Mining/Quarrying

26533

28726

26648

27885

3.9

2387

2339

2296

2253

2213

-1.9

957

1096

1294

1398

1510

12.3

76

88

74

83

83

1.3

26465

30055

32390

30382

31692

3.8

Manufacturing

6471

5577

5474

5689

5995

-1.3

5.1

Registered

2567

1768

1581

1593

1684

-9.0

5.2

Un-registered

3904

3809

3893

4096

4311

2.7

17005

18283

18114

20846

23025

7.7

1155

942

994

1090

1172

1.8

24630

24803

24582

27625

30193

5.3

Transport / Storage / Communication

9416

10744

12212

13717

15535

13.3

8.1

Railways

1728

1727

1708

1722

1736

0.1

8.2

Other Transport

3113

3497

4182

4771

5543

15.8

92

102

112

123

134

9.8

4484

5418

6209

7102

8122

15.7

27390

31294

37060

41276

46003

14.0

6

Construction

7

Electricity / Water Supply / Gas

Sub-Total (Secondary)

8

CAGR

23045

Sub-Total (Primary)

5

2010-11 2011-12 2012-13 2013-14 2014-15

8.3 8.4

Storage Communication

9

Trade / Hotel / Restaurant

10

Banking / Insurance

6231

7236

8721

10510

12665

19.6

11

Real Estate/ Ownership of Dwelling/Business Services

4079

4633

5187

5753

6399

11.8

12

Public Administration

6140

6303

6434

7730

7851

7.2

13

Other Services

13153

14453

16664

19678

21464

13.7

66408

74664

86278

98663

109918

13.7

117503

129521

143250

156671

171802

10.0

12090

13149

14356

15506

16801

8.6

Sub-Total (Tertiary) Total NSDP Per Capita NSDP

Source : Directorate of Economics and Statistics, GOB Note : Data of 2013-14 is Provisional Estimates and 2014-15 Advance Estimates

15

Table A 1.7 : Yearly Growth Rate of GSDP by Sector (2004-05 Prices) No.

Sector

2010-11

2011-12

2012-13

2013-14

2014-15

1

Agriculture/Animal Husbandry

19.91

13.53

8.64

-7.23

4.64

2

Forestry / Logging

-1.96

-2.03

-1.90

-1.86

-1.77

3

Fishing

-2.85

19.23

16.19

8.04

8.04

4

Mining/Quarrying

1.17

11.83

-11.54

11.96

0.00

Sub-Total (Primary)

16.65

12.51

8.17

-6.14

4.39

Manufacturing

22.77

-9.20

1.83

3.63

5.41

5.1

Registered

63.15

-20.62

1.32

0.78

5.73

5.2

Un-registered

4.81

-1.30

2.09

5.21

5.24

34.38

7.81

0.12

15.08

10.45

2.99

8.35

7.14

9.69

7.52

Sub-Total (Secondary)

28.56

3.09

0.99

11.87

9.10

Transport / Storage / Communication

20.30

13.84

12.75

11.89

12.82

6.33

-1.20

0.82

0.82

0.82

14.46

13.58

17.74

14.07

16.20

9.33

11.58

9.43

8.62

9.52

33.75

21.38

14.37

14.37

14.37

9.59

14.22

18.65

11.38

11.45

19.72

16.05

20.51

20.51

20.51

5

6

Construction Electricity / Water Supply / Gas

7

8

8.1

Railways

8.2

Other Transport

8.3 8.4

Storage Communication

9

Trade / Hotel / Restaurant

10

Banking / Insurance

11

Real Estate/ Ownership of Dwelling/Business Services

7.75

9.99

10.44

10.92

11.23

12

Public Administration

9.03

3.35

4.60

20.14

1.58

Other Services

1.77

10.45

14.73

18.09

9.08

Sub-Total (Tertiary)

10.01

12.10

15.13

14.26

11.18

Total GSDP

15.04

10.29

10.69

9.12

9.45

Per Capita GSDP

13.45

8.82

9.27

7.77

8.14

13

Source : Directorate of Economics and Statistics, GOB Note : Data of 2013-14 is Provisional Estimates and 2014-15 Advance Estimates

16

Table A 1.8 : District-wise Per Capita Gross District Domestic Product at 2004-05 Prices (Rupees) District

2007-08

2008-09

2009-10

2010-11

2011-12

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

43448 (1) 8219 (14) 8775 (8) 8368 (12) 9544 (7) 7564 (21)

48719 (1) 9152 (11) 10146 (8) 8992 (15) 10950 (6) 8441 (22)

53428 (1) 9787 (10) 10134 (8) 8812 (18) 10908 (7) 7785 (27)

57823 (1) 10971 (11) 11537 (9) 9732 (20) 12265 (6) 9539 (22)

63063 (1) 12561 (8) 12459 (10) 11289 (15) 13909 (6) 10412 (24)

Gaya Jehanabad Arwal Nawada Aurangabad

8660 (9) 7490 (24) 6475 (33) 6739 (31) 7575 (20)

9135 (12) 8588 (19) 7028 (35) 7409 (32) 7922 (29)

9519 (15) 8478 (22) 7283 (35) 7602 (30) 8189 (23)

10504 (18) 9322 (24) 8133 (35) 8437 (31) 9293 (25)

11897 (13) 11182 (17) 9125 (34) 9560 (30) 11012 (18)

Saran Siwan Gopalganj

7522 (23) 7377 (26) 7646 (17)

7938 (28) 8864 (16) 8059 (26)

8559 (20) 8042 (26) 8543 (21)

9576 (21) 9192 (26) 10386 (19)

10615 (23) 10685 (22) 12129 (12)

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

8476 (11) 6223 (35) 9814 (5) 6180 (37) 5541 (38) 7728 (16)

9484 (10) 8457 (21) 11602 (5) 7301 (33) 6128 (38) 9604 (9)

9706 (11) 7571 (31) 12159 (5) 7456 (32) 5438 (38) 9937 (9)

10577 (17) 8790 (29) 14082 (5) 8274 (33) 6208 (38) 11591 (8)

9971 (27) 10735 (21) 15402 (5) 9538 (31) 7092 (38) 12490 (9)

Darbhanga Madhubani Samastipur

7614 (18) 6216 (36) 7559 (22)

8516 (20) 7643 (30) 8729 (18)

9036 (16) 7455 (33) 8843 (17)

10798 (12) 10607 (15) 10705 (14)

10932 (19) 9241 (33) 10762 (20)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

12419 (3) 15791 (2) 7209 (28) 9549 (6) 7584 (19) 8517 (10)

15001 (3) 17034 (2) 8105 (25) 10209 (7) 8028 (27) 9111 (13)

14235 (4) 18554 (2) 7775 (28) 10950 (6) 8186 (24) 9642 (12)

18433 (3) 21011 (2) 8377 (32) 11870 (7) 8944 (28) 10603 (16)

17587 (3) 22051 (2) 9687 (29) 13073 (7) 10166 (25) 11515 (14)

Bhagalpur Banka

12097 (4) 6882 (30)

13351 (4) 7596 (31)

14253 (3) 7724 (29)

15870 (4) 7756 (37)

17324 (4) 9269 (32)

Saharsa Supaul Madhepura

8164 (15) 6382 (34) 6920 (29)

8744 (17) 6790 (36) 6602 (37)

9591 (14) 7043 (36) 6979 (37)

11268 (10) 8193 (34) 8096 (36)

12197 (11) 8492 (37) 8609 (36)

Purnea Kishanganj Araria Katihar

7419 (25) 7312 (27) 6635 (32) 8267 (13)

8228 (23) 8120 (24) 7251 (34) 9060 (14)

8743 (19) 8085 (25) 7376 (34) 9594 (13)

9357 (23) 9126 (27) 8534 (30) 10721 (13)

10099 (26) 9928 (28) 8776 (35) 11278 (16)

10076 11369 11806 13393 Source : Directorate of Economics and Statistics, GOB Note : Figures in parentheses denotes rank

14574

Bihar

17

Table A 1.9 : District-wise Consumption of Petroleum Products (Figures in MT) District Patna Nalanda Bhojpur Buxar Rohtas Kaimur

Share of population 5.6

Petrol

Diesel

2013-14

2014-15

55742

61940

2.8

7188

8457

7823 (1.9)

48897

43234

46066 (2.3)

16090 18905

17498 (2.9)

2.6

8427

9946

9187 (2.3)

49184

50153

49669 (2.5)

18426 21976

20201 (3.3)

Average and 2013-14 2014-15 Share

58841 (14.6) 207048

LPG Average and Share

2013-14 2014-15

Average and Share

200148 203598 (10.2) 92815 105255 99035 (16.3)

1.6

5905

6859

6382 (1.6)

35618

35911

35765 (1.8)

8007

10671

9339 (1.5)

2.9

11165

12898

12032 (3)

75852

75672

75762 (3.8)

19283 19423

19353 (3.2)

1.6

4681

5572

5127 (1.3)

33179

31019

32099 (1.6)

2939

6465

4702 (0.8)

Gaya Jehanabad Arwal Nawada Aurangabad

4.2 1.1 0.7 2.1 2.4

13779 2580 1590 4158 7237

15681 2922 1872 5011 8421

14730 (3.6) 2751 (0.7) 1731 (0.4) 4585 (1.1) 7829 (1.9)

79568 18200 9866 31883 51635

69580 14506 10110 29218 54161

74574 (3.7) 16353 (0.8) 9988 (0.5) 30551 (1.5) 52898 (2.6)

18905 23890 8982 8241 1048 3413 10321 12424 10085 12066

21398 (3.5) 8612 (1.4) 2231 (0.4) 11373 (1.9) 11076 (1.8)

Saran Siwan Gopalganj

3.8 3.2 2.5

14725 15271 12166

16787 17584 14109

15756 (3.9) 16428 (4.1) 13138 (3.3)

88923 52420 41644

89206 52181 42814

89065 (4.4) 52301 (2.6) 42229 (2.1)

23380 26710 19155 24116 16015 20669

25045 (4.1) 21636 (3.6) 18342 (3)

W Champaran E Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

3.8 4.9 4.6 3.3 0.6 3.4

12780 18521 23416 8321 1157 16144

14919 21609 26807 9845 1325 18811

13850 (3.4) 63343 20065 (5) 108369 25112 (6.2) 121982 9083 (2.2) 43676 1241 (0.3) 4832 17478 (4.3) 73821

63018 103930 123040 40441 4554 74427

63181 (3.2) 106150 (5.3) 122511 (6.1) 42059 (2.1) 4693 (0.2) 74124 (3.7)

16500 22654 33151 14109 2804 23913

20693 28994 39593 18374 3179 29731

18597 (3.1) 25824 (4.2) 36372 (6) 16242 (2.7) 2992 (0.5) 26822 (4.4)

Darbhanga Madhubani Samastipur

3.8 4.3 4.1

12693 12940 13162

14499 15202 15700

13596 (3.4) 14071 (3.5) 14431 (3.6)

54356 47210 76433

53738 45586 73270

54047 (2.7) 46398 (2.3) 74852 (3.7)

22658 26905 15904 20704 16341 20473

24782 (4.1) 18304 (3) 18407 (3)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

2.8 1.3 0.6 1 1.7 1.6

9721 4328 1539 1793 3828 3439

11049 4602 1757 2186 4174 4163

10385 (2.6) 103781 4465 (1.1) 30209 1648 (0.4) 12668 1990 (0.5) 18817 4001 (1) 19902 3801 (0.9) 29547

102133 28876 11320 18021 19060 30557

102957 (5.1) 29543 (1.5) 11994 (0.6) 18419 (0.9) 19481 (1) 30052 (1.5)

16572 20517 10907 12340 2036 2870 3810 5002 4944 5593 4590 6184

18545 (3) 11624 (1.9) 2453 (0.4) 4406 (0.7) 5269 (0.9) 5387 (0.9)

Bhagalpur Banka

2.9 2

10661 3884

12056 4292

11359 (2.8) 4088 (1)

69262 21072

63628 20203

66445 (3.3) 20638 (1)

18765 21467 5429 6510

20116 (3.3) 5970 (1)

Saharsa Supaul Madhepura

1.8 2.1 1.9

5053 5848 5928

6136 6934 6880

5595 (1.4) 6391 (1.6) 6404 (1.6)

33306 27853 30288

34136 27673 30377

33721 (1.7) 27763 (1.4) 30333 (1.5)

9071 3839 6771

8748 6675 8113

8910 (1.5) 5257 (0.9) 7442 (1.2)

Purnea Kishanganj Araria Katihar

3.2 1.6 2.7 3

11744 6004 8955 8668

13844 6747 10766 9956

12794 (3.2) 6376 (1.6) 9861 (2.4) 9312 (2.3)

72290 19486 47990 68878

75481 20501 51283 67434

73886 (3.7) 19994 (1) 49637 (2.5) 68156 (3.4)

16151 13231 1211 5033 5548 8922 9837 11809

14691 (2.4) 3122 (0.5) 7235 (1.2) 10823 (1.8)

Total

100

375141

432319

403730 (100) 2023288 1980597 2001943 (100) 552966 665884 609425 (100)

Source : Indian Oil Corporation Note : Figures in parentheses denotes share from total

18

Table A 1.10 : District-wise Small Savings in Post Offices and Public Provident Fund (Rs. crore) 2012-13

District Patna Nalanda Bhojpur Buxar Rohtas Kaimur Total Gaya Jehanabad Arwal Nawada Aurangabad Total Saran Siwan Gopalganj Total E. Champaran W. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali Total Darbhanga Madhubai Samastipur Total Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria Total Bhagalpur Banka Total Saharsa Supaul Madhepura Total Purnea Kishanganj Araria Katihar Total Grand Total

Share of population

5.6 2.8 2.6 1.6 2.9 1.6 17.1 4.2 1.1 0.7 2.1 2.4 10.5 3.8 3.2 2.5 9.5 3.8 4.9 4.6 3.3 0.6 3.4 20.6 3.8 4.3 4.1 12.2 2.8 1.3 0.6 1.0 1.7 1.6 9.0 2.9 2.0 4.9 1.8 2.1 1.9 5.8 3.2 1.6 2.7 3.0 10.5 100.1

Target

Achivement

2013-14 Target

Achivement

2014-15 Target

144 65 96 210 175 98 67 66 126 115 78 98 73 156 140 34 31 20 37 30 47 17 23 32 34 20 8 10 15 15 421 286 288 576 509 64 23 30 29 25 15 12 10 18 15 11 8 8 12 10 72 65 48 70 67 44 7 15 12 10 206 115 111 141 127 129 117 84 147 140 74 38 50 59 50 45 45 40 69 62 248 200 174 275 252 30 29 23 30 25 44 14 20 27 25 72 36 47 54 48 20 8 8 15 12 4 2 2 4 3 57 58 40 78 65 227 147 140 208 178 59 42 39 62 58 38 17 26 42 39 34 32 23 58 50 131 91 88 162 147 40 31 26 39 35 29 18 18 31 27 8 5 6 10 9 9 6 6 10 9 14 11 10 22 15 8 8 6 9 7 108 79 72 121 102 42 63 49 75 70 5 3 3 10 5 47 65 52 85 75 22 20 14 29 23 16 15 11 21 17 16 15 11 22 17 54 50 36 72 57 22 10 16 23 20 6 5 4 8 6 9 4 6 9 7 21 18 13 27 20 58 37 39 67 53 1500 1070 1000 1707 1500 Source : Department of Finance, GOB _________________

19

Trienium Share of Average of AchieveAchiveAchievements ments (%) ment (2012-15)

301 152 153 51 47 20 725 41 17 11 93 19 181 170 71 76 317 39 27 65 19 5 72 227 65 52 47 165 40 26 7 7 21 9 110 67 9 76 36 27 27 89 16 7 6 23 52 1941

192 115 136 40 32 14 529 31 16 10 76 13 146 145 56 63 264 33 23 52 14 4 69 194 56 37 46 139 37 25 7 8 18 9 103 68 7 75 28 21 21 70 16 7 6 23 52 1573

12.2 7.3 8.6 2.5 2.0 0.9 33.6 2.0 1.0 0.7 4.8 0.8 9.3 9.2 3.6 4.0 16.8 2.1 1.4 3.3 0.9 0.2 4.4 12.3 3.6 2.4 2.9 8.9 2.3 1.6 0.5 0.5 1.1 0.5 6.6 4.3 0.5 4.8 1.8 1.3 1.4 4.5 1.0 0.4 0.4 1.4 3.3 100.0

CHAPTER II STATE FINANCES

The fiscal year 2015-16 was marked by two important developments: first, the state elections which was won comprehensive by a coalition which comprised a political party which was already a part of the outgoing coalition as well as two new political parties and second, the submission of the Report of the Fourteenth Finance Commission which periodically alters the landscape of federal fiscal relations in the country. Parallely, with the winding up of the Planning Commission, and the Fourteenth Finance Commission recommendations for increased transfer to states (untied to specific plan schemes), coupled with the reduction in the number of Centrally Sponsored Schemes, the framework for federal financial relation is now poised for substantial change. Development effort in an economically backward state like Bihar hinges greatly on the management of its finances through proper analysis and policy intervention. Such management generates future optimism by strengthening the government’s capacity for policy implementation. Allocation of resources to different activities strictly according to economic and social priorities and monitoring the outcome of all public expenditure are essential functions of any government. In this direction, the state government has already made some significant progress by improving the quality of expenditure and increasing the revenue, including the revenues from its own sources. The capital outlay has continuously been increased for the muchneeded investments in infrastructure. Delivery of public services and goods have significantly improved, and the economic growth rate in Bihar has surpassed the national growth rate and has been sustained during the last several years. Significant increases in social sector spending had led to improvement in the quality of life, as reflected by most socio-economic indicators. The poverty scenario has also been improving, especially in the rural areas. 2.1 Overview of Financial Position The financial and fiscal performance of the state government have been analysed in the following sections, first by summarizing its receipts and expenditures (Table 2.1), and then by comparing the trends in eight major performance indicators relating to Bihar and other major Indian states (Table 2.2). The actual figures have been used for the period 2010-11 to 2014-15, taken from the Finance Accounts of the state, prepared by the Accountant General (A&E) of the state. For 2015-16, the budget estimates of the state government have been used. For other states, however, actual figures have been used only for 2013-14, while Revised Estimates (RE) and Budget Estimates (BE) have been used for 2014-15 and 2015-16 respectively. The finances of the state government have been later analysed with reference to — (i) Fiscal Performance, (ii) Deficit Management, (iii) Debt Management, (iv) Resource Management, (v) Expenditure Management, (vi) State Budget, and (vii) Performance of State Public Sector Undertakings. 20

The state government had passed the Bihar Fiscal Responsibility and Budget Management (FRBM) Act in February 2006, committing itself to : (a) eliminate the revenue deficit by 200809 and build up adequate revenue surpluses thereafter; (b) bring down the Gross Fiscal Deficit (GFD) to a level of less than 3 percent of GSDP by 2008-09; (c) raise non-tax revenue with due regard to cost and equity; and (d) lay down norms for prioritization of capital expenditure and pursue expenditure policies that would provide impetus for economic growth, poverty reduction and human development. These resolutions have largely been adhered to. However, capping the GFD at 3 percent of GSDP, as prescribed in the Act, has in general limited the scope to borrow more and invest in capital assets. The revenue surplus of Bihar had slumped to its lowest level of Rs 2943 crore in 2009-10, but 2010-11 was a year of recovery, when the revenue surplus climbed to its hitherto highest level of Rs 6316 crore. However, 2011-12 had witnessed the beginning of the slowing down of national economy and, in that year, the revenue surplus again decreased to Rs 4820 crore, leading to a steep rise in the Gross Fiscal Deficit (GFD) by nearly Rs 2000 crore. The revenue surplus had since increased to Rs 6441 crore in 2013-14 before decreasing again to Rs 5848 crore in 201415. However, the fiscal deficit has increased continuously from Rs 3970 crore in 2010-11 to Rs 11,178 crore during this period due to substantial increases (Rs. 8954 crore) in capital investments. In spite of this, the GFD of the state government is still comfortably within the FRBM Act limit of 3 percent. In the budget estimates for 2015-16, it was projected to reach Rs 13,584 crore, or 2.9 percent of GFD, due to much higher capital investments, estimated to rise to an unprecedented high level of Rs 24,853 crore. The revenue surplus, estimated at Rs 11,981 crore during the current fiscal, will substantially finance the higher capital outlay. The primary surplus of Rs 349 crore in 2010-11 was reversed in 2011-12, recording a primary deficit of Rs 1611 crore, and this deficit has since been rising continuously, reaching a high of Rs 5050 crore in 2014-15. It is projected to rise steeply to Rs 6364 crore, as per the budget estimates of 2015-16. While the revenue receipts increased by Rs 9499 crore during 2014-15 over the previous year to reach at Rs 78,418 crore, the revenue expenditure went up by Rs 10,093 crore to Rs 72,570 crore, 57 percent of it due to increases in the development expenditure (Rs 5703 crore). The 14 percent growth in the revenue receipts witnessed during 2014-15 was less than nearly 16 percent growth seen during the preceding three years. The low growth in 2014-15 was mostly due to the stagnation in the growth in tax receipts which registered a growth of only 5 percent over the previous year (by Rs 2924 crore), compared to a growth of 14 percent seen in the previous year, and far less than the 19 percent growth in tax receipts registered during 2012-13. The growth in revenue receipts during 2014-15 was mainly due to the 52 percent increase in central grants from Rs 12,584 crore to Rs 19,146 crore during 2014-15. The central grants in fact will get reduced to Rs 18,171 crore in the current fiscal which is the first year of implementation of the Fourteenth Finance Commission recommendations. While Bihar’s tax revenues will increase to Rs 81,623 crore as a result of the increased share of states in the divisible pool of central taxes arising from the recommendations of the Commission, Bihar will actually suffer a cut in its plan grants, a point that had repeatedly been stressed by the state government. 21

Table 2.1 : Receipts and Expenditure (Rs. crore) Sl. No. 1 a b c 2 a

Item

Total Receipts Revenue Account Tax Revenue Non Tax Revenue Grants in Aid and Contributions Total Exp. Revenue Account General Services, of which Interest Payments b Social Services c Economic Services d Grants-in-aid 3 Revenue Deficit 4 Capital Receipts a Public Debt etc. b Recovery of Loan and Advances 5 Capital Expenditure, of which a Capital Outlay b Loans and Advances c Public Debt. 6 Total Expenditure a Plan Expenditure b Non Plan Expenditure 7 Gross Fiscal Deficit 8 Primary Deficit 9 Total Borrowings a Internal Debt Receipt b Loans from Central Government 10 Repayment of Public Debt 11 Public Debt Outstanding 12 GSDP As percentage of GSDP 1 Total Receipts Revenue Account a Tax Revenue b Non Tax Revenue c Grants in aid and contr. 2 Total Exp. Revenue Account a General Services, of which Interest payments b Social Services c Economic Services d Grants-in-aid 3 Revenue Deficit 4 Capital Receipts a Public Debt etc. b Recovery of Loan and Advances 5 Capital Expenditure, of which a Capital Outlay b Loans and Advances c Public Debt. 6 Total Expenditure a Plan Expenditure b Non Plan Expenditure 7 Gross Fiscal Deficit 8 Primary Deficit 9 Total Borrowing a Internal Debt Receipt b Loans from Central Government 10 Repayment of Public Debt 11 Debt Outstanding

2010-11

2011-12

2012-13

2013-14

2014-15

44532 33848 986 9699 38216 15287 4319 15089 7836 3 -6316 6044 6032 12 12489 9196 1103 2190 50705 20911 29794 3970 -349 6032 5251 782 2190 47285 203555

51320 40547 890 9883 46500 17730 4304 18729 10038 3 -4820 6650 6628 23 13682 8852 1906 2922 60182 23008 37174 5915 1611 6628 5801 827 2922 50990 243269

59567 48153 1135 10278 54466 18645 4428 23107 12710 4 -5101 9579 9554 25 14740 9585 2086 3070 69207 28381 40825 6545 2117 9554 9046 508 3070 57474 293616

68919 54790 1545 12584 62477 22018 5459 26395 14060 4 -6441 9922 9907 15 17928 14001 807 3120 80405 33678 46728 8352 2893 9907 9357 550 3120 64262 343663

78418 57713 1558 19146 72570 26408 6129 31713 14445 4 -5848 15411 13918 1493 22128 18150 369 3609 94698 43939 50759 11178 5050 13918 13199 718 3609 74570 402283

2015-16 BE 103189 81623 3396 18171 91208 30259 7221 38084 22861 5 -11981 17725 17709 17 29477 24853 729 3895 120685 57426 63260 13584 6364 17709 14920 2789 3895 88384 474130

21.9 16.6 0.5 4.8 18.8 7.5 2.1 7.4 3.8 0.0 -3.1 3.0 3.0 0.0 6.1 4.5 0.5 1.1 24.9 10.3 14.6 2.0 -0.2 3.0 2.6 0.4 1.1 23.2

21.1 16.7 0.4 4.1 19.1 7.3 1.8 7.7 4.1 0.0 -2.0 2.7 2.7 0.0 5.6 3.6 0.8 1.2 24.7 9.5 15.3 2.4 0.7 2.7 2.4 0.3 1.2 21.0

20.3 16.4 0.4 3.5 18.6 6.4 1.5 7.9 4.3 0.0 -1.7 3.3 3.3 0.0 5.0 3.3 0.7 1.0 23.6 9.7 13.9 2.2 0.7 3.3 3.1 0.2 1.0 19.6

20.1 15.9 0.4 3.7 18.2 6.4 1.6 7.7 4.1 0.0 -1.9 2.9 2.9 0.0 5.2 4.1 0.2 0.9 23.4 9.8 13.6 2.4 0.8 2.9 2.7 0.2 0.9 18.7

19.5 14.3 0.4 4.8 18.0 6.6 1.5 7.9 3.6 0.0 -1.5 3.8 3.5 0.4 5.5 4.5 0.1 0.9 23.5 10.9 12.6 2.8 1.3 3.5 3.3 0.2 0.9 18.5

21.8 17.2 0.7 3.8 19.2 6.4 1.5 8.0 4.8 0.0 -2.5 3.7 3.7 0.0 6.2 5.2 0.2 0.8 25.5 12.1 13.3 2.9 1.3 3.7 3.1 0.6 0.8 18.6

Source : State Government Budgets

22

The increase in the grant during 2014-15 was mainly due to the abolition of direct transfers of central grants in respect of Centrally Sponsored Schemes which hitherto were not being routed through the state budget. While the non-plan grants under Article 275 (1) of the Constitution, as per recommendations of the Thirteenth Finance Commission, remained nearly the same as last year (increase of only Rs 69 crore), block grants has been reduced by half. In reality, there has been hardly any additional resources coming to the state government from the central government in respect of grants. The grants were also much lower than the budget estimates of Rs 31,420 crore made for 2014-15. Chart 2.1 : Revenue Accounts of Bihar Government (Rs. crore)

120000 100000 80000 60000 40000 20000 0 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 BE

Total Receipts Revenue Account

Tax Revenue

Non Tax Revenue

Grants in Aid and Contributions

Total Exp. Revenue Account

The tax receipts constituted about 74 percent of the total revenue of the state government. The non-tax receipts registered practically no increase (only Rs 13 crore) during the year, and remained at Rs 1558 crore. While the growth of revenue receipts was 14 percent during 2014-15, the revenue expenditure grew at 16 percent, resulting in the decrease in the revenue surplus from Rs 6441 crore in 2013-14 to Rs 5848 crore during 2014-15. The revenue surplus was projected to increase substantially to nearly Rs 12,000 crore in the budget estimates of 2015-16. The capital outlay during 2014-15 increased substantially by 30 percent, but much less than 46 percent growth registered in the previous year. As per budget estimates, it is projected to rise by 37 percent in 2015-16 to Rs 24,853 crore. The trend and summary of state finances during the sixyear period (2010-16) is shown in Table 2.1. 23

Chart 2.2 : Capital Accounts of Bihar Government (Rs. crore)

35000 Capital Receipts

Capital Expenditure

Capital Outlay

30000 25000 20000 15000 10000 5000 0 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 BE

Revenue Account Starting with a revenue surplus of Rs 1076 crore for the first time in 2004-05, Bihar has been showing a continuous revenue surplus ever since. This surplus had increased to the highest level of Rs 6441 crore in 2013-14, before reducing to Rs 5848 crore during 2014-15. In 2015-16 budgets estimates, however, it is projected to increase to Rs 11,981 crore. As pointed out already, the revenue receipts increased by Rs 9499 crore from increases in tax revenues (Rs 2923 crore) and central grants (Rs 6562 crore). Within the broad heads of tax revenue, 73 percent of the increase came from increase in the state’s share of central taxes (Rs 2133 crore) and only Rs 790 crore from the state’s own revenues. In the previous year, these contributions stood at 44 percent and 56 percent, respectively. Thus, in 2014-15, contribution of the state’s own revenues to the growth of overall revenues was much less compared to the previous year. This was also a break from the positive trend observed during the past few years. The growth rate of the own revenues of the state government, tax plus non-tax, also declined to a meagre 4 percent during 2014-15, from more than 24 percent the year before. The share of central taxes increased by 6 percent during the year. The revenue expenditure in 2014-15 increased by Rs 10,093 crore over that in 2013-14, of which social services accounted for Rs 5318 crore (53 percent), and economic services for Rs 385 crore (4 percent), the rest 43 of the increase being on account of general services. The corresponding figures in the previous year stood at 41 percent, 17 percent and 42 percent respectively. The general services accounted for an increase of more than Rs 4390 crore in 2014-15, compared to Rs 3373 crore during the previous year, of which pension payments alone accounted for an additional expenditure of Rs 1863 crore, compared to an increase of Rs 1118 crore in 2013-14. The pension liability of the state government has been increasing rapidly over the years, from 24

only Rs 6144 crore in 2010-11 to Rs 11,345 crore in 2014-15, increasing annually at about 17 percent. The total pension payment in 2015-16 is estimated to be Rs 12,980 crore. The interest payment showed an increase of Rs 670 crore during 2014-15, compared to Rs 1031 crore in the previous year. The salary payments to the state government employees also accounted for increases in revenue expenditure by Rs 570 crore in 2014-15, compared to an increase of Rs 479 crore in 2013-14. During 2014-15, salary payments amounted to Rs 14,607 crore. The salary and pension expenditure of the state government will be discussed in details later in this chapter. The budget estimates of 2015-16 aims at substantially higher levels of revenue expenditure as well as capital outlay, to be financed by much higher revenue collection as well as substantially higher devolution of central taxes consequent to Fourteenth Finance Commission recommendations. The total expenditure, revenue plus capital, is budgeted to be about Rs 1,20,685 crore, compared to actual expenditure of Rs 94,698 crore in 2014-15, an increase of 27 percent; last year, the actual increase in total expenditure was about 18 percent. Developmental Revenue Expenditure and Capital Outlay The developmental revenue expenditure on social and economic services increased by Rs 5703 crore in 2014-15, over that in the last fiscal. Between 2010-11 and 2014-15, the developmental revenue expenditure increased more than two-fold from Rs. 22,926 crore to Rs. 46,158 crore, while the non-developmental revenue expenditure grew at a little slower rate, rising from Rs. 15,287 crore to Rs. 26,408 crore, bulk of it owing to pension as well as interest payments. Of the total capital outlay of Rs 18,150 crore in 2014-15, as much as Rs 14,728 crore was spent on economic services, almost 28 percent of it (Rs 4177 crore) on creating the infrastructure of roads and bridges. The capital outlay on social services amounted to Rs 1674 crore; out of this, 19 percent (Rs 315 crore) was spent on creating and improving health infrastructure, 53 percent (Rs. 885 crore) on improving the water supply and sanitation, and 16 percent (Rs 263 crore) on creating educational infrastructure in the state. The surplus in the revenue account has all along played a substantial role in the growth story of Bihar. The revenue surplus was achieved primarily due to increase in revenue receipts, supplemented by the containment of revenue expenditure. Between 2010-11 and 2014-15, the total revenue receipts of the state government increased at an annual rate of 15 percent, while its revenue expenditure increased at a slightly higher annual rate of 17 percent. The sustained phenomenon of revenue surplus seen earlier had enabled the state government to increase its capital outlay continuously till 2010-11; however, in 2011-12, due to the decrease in revenue surplus, the capital outlay was also reduced by Rs 344 crore. But the capital outlay was substantially increased again from the next year and stood at Rs 18,150 crore in 2014-15. The total development expenditure stood at Rs 64,308 crore in 2014-15, about 68 percent of the total expenditure, compared to 63 percent in the 2010-11. The state government is committed to maintain a high growth rate in development expenditure, both in revenue and capital account, and this is also reflected in the budget estimates of 2015-16, where it has been projected to rise to Rs 85,798 crore, from Rs 64,308 crore in the previous year. The expenditure on non25

developmental general services also increased in 2014-15 by Rs 4390 crore, compared to Rs 3373 crore in 2013-14 and only Rs 915 crore in 2012-13 and, at Rs 26,408 crore, it was 20 percent higher than the last year. The rise in non-developmental expenditure was due to the increases in pension payments (Rs 1863 crore), interest payments (Rs 660 crore) and expenditure on police administration (Rs 815 crore). The beginning of the reform process in public finances in Bihar had started in 2006-07, when capital outlay was increased substantially to Rs 5211 crore from a meagre Rs 2084 crore in the previous year. The state government has kept its focus on investing in capital assets in every budget since 2006-07, which translated into a higher growth for the state's economy because of its multiplier effect. During the Eleventh Plan period, the GSDP of Bihar at current prices had grown annually at 20.7 percent, compared to the nation’s GDP growth rate at 15.6 percent, making the state one of the fastest growing ones in the country. This growth rate was also much higher than that during the Tenth Plan period (12.0 percent). During the last five years, 2010-11 to 2014-15, capital outlay grew annually at 18 percent and the total developmental expenditure, grew at 25 percent. The capital outlay of Bihar constituted 4.5 percent of its GSDP in 2014-15, compared to 4.1 percent in 2013-14. It accounted for 19 percent of total expenditure made by the state government in 2014-15, compared to 17 percent in the previous year. In 2010-11, this share was 18 percent. The state government is aware that there is an urgent need to increase the pace of capital expenditure further. Thus, in the budget estimates of 2015-16, capital outlay has been projected to rise by nearly 37 percent, when it would account for 5.2 percent of the GSDP. Plan and Non-Plan Expenditure The gap between plan and non-plan expenditure had started closing in 2007-08, the first year of the Eleventh Plan. In that year, non-plan expenditure was 1.9 times the plan expenditure, compared to 3.6 times in 2005-06. During 2014-15, the non-plan expenditure was only 1.2 times the plan expenditure, compared to 1.4 times the year before. During 2014-15, the total plan and non-plan expenditure was Rs 43,939 crore and Rs. 50,759 crore, respectively. In 2011, Rangarajan Committee on Efficient Management of Public Expenditure had submitted its report, recommending the removal of distinction between plan and non-plan expenditure. The report was not acted upon, but the newly elected government at the centre had announced the disbanding of the Planning Commission and replacing it by Niti Aayog, with a different set of objectives. It was also decided that the existing distinction of expenditure between plan and nonplan will continue at least till the end of the Twelfth Plan, that is, till 2016-17. The state government is of the view that non-plan expenditure is as important as plan expenditure and there exists no rationale for any distinction between the two. Resource Mobilisation The total tax revenue of the state government has increased from Rs. 33,848 crore in 2010-11 to Rs 57,713 crore in 2014-15, growing annually at 14 percent. The own tax revenue of the state government grew from Rs 9870 crore to Rs 20,751 crore during this period, at a much higher annual rate of 22 percent. The growth in own tax revenues has picked up in recent years and, 26

during the three years from 2011-12 to 2013-14, it grew by 28, 29 and 23 percent, respectively. This growth has been rather dismal (4 percent) during 2014-15, but is expected to rise by nearly 50 percent to Rs 30,875 crore as per the budget estimates of 2015-16. The total tax revenue of the state government also registered an increase of only 5 percent in 2014-15 over the previous year. During the five-year period from 2010-11 to 2014-15, the transfers to the state government from the divisible pool of central taxes grew annually at 11 percent, while central grants recorded an annual growth rate of 19 percent. In contrast to the growth in tax revenue, the non-tax revenue seemed to have reached a plateau in Bihar, and has actually been on the decline since 2009-10 when it was Rs 1670 crore. Till that year, it was boosted by the debt relief available to the state government from the central government, as recommended by the Twelfth Finance Commission; but it was not available since 2010-11. In 2012-13, it was only Rs. 1135 crore and increased to Rs 1545 crore in 2013-14 after which it increased only to Rs 1558 crore in 2014-15. In the budget estimates for 2015-16, however, a substantial increase was projected in the non-tax revenue at Rs 3396 crore, because of expected transfer from the Government of Jharkhand as Contributions and Recoveries for Pension etc. (Rs 1600 crore in 2015-16 compared to only Rs. 2 crore in 2014-15), and additional receipts from non-ferrous mining and metallurgical industries (Rs 120 crore). The Contributions and Recoveries for Pension etc. was a legacy of the division of the erstwhile composite state of Bihar. The Own Tax: GSDP ratio in Bihar has been much below than that of other states, although during the five-year period 2010-11 to 2014-15, it had improved from 5.0 percent to 5.8 percent before decreasing again to 5.2 percent during 2014-15. But, there still remains a large untapped potential for further increasing the state government's own tax revenue. In the budget estimates of 2015-16, state’s own tax revenue receipts are estimated to be Rs 30,875 crore, an increase of 49 percent over the level achieved in 2014-15. Of the total revenue to be realized in 2015-16, state's own revenues are projected to constitute nearly 30 percent, higher than the corresponding figure of 26 percent in 2014-15. Outstanding Public Debt The public debt of the state government comprises only two elements — internal debt raised by the state government from the market (including financial institutions) and the loans taken from the central government. The second component has been falling as a consequence of the recommendations made by the Twelfth Finance Commission. The state also acts as a trustee in respect of certain items in the public account which constitute the other liabilities that will be discussed later. The state government had an outstanding public debt of Rs. 47,285 crore in 2010-11, equaling 23.2 percent of its GSDP. In 2014-15, the outstanding debt had increased to Rs. 74,570 crore, and the Debt: GSDP ratio had declined substantially to 18.5 percent, well below the limit of 28 percent, specified by the Twelfth Finance Commission. The ratio of interest payment to revenue receipts was at 9.7 percent in 2010-11, which got reduced to 7.8 percent in 2014-15, much below 27

the upper limit of 15 percent, recommended by the Twelfth Finance Commission. This clearly indicates that the debt problem is well under the control of the state government. The debt servicing payments rose from Rs 6509 crore to Rs 9738 crore between 2010-11 and 2014-15. The interest payments accounted for Rs 4319 crore (66 percent of debt service payments) and Rs 6129 crore (63 percent of debt service payments) in these two years, respectively, while repayment of principal increased from Rs 2190 crore to Rs 3609 crore during the same period. In 2015-16, the outstanding public debt liabilities are projected to rise to Rs 88,384 crore (18.6 percent of GSDP) and debt servicing payments are expected to rise to Rs 11,116 crore as per the budget estimates. The structure of debt has undergone a significant change since 2002-03. This occurred first by swapping of the high-cost central government loans with low-cost market loans and then, as a result of the recommendations of the Twelfth Finance Commission, by consolidation and rescheduling of all central government loans for payment over a 20-year period at 7.5 percent rate of interest. The Commission also recommended that if the state governments want to raise loans, they should get it from the market and the central government’s help should be limited to only grants. As a result, the proportion of central government loans diminished substantially since then. During the period 2010-11 to 2013-14, the central loans declined from Rs 782 crore to Rs 550 crore, but increased to Rs 718 crore during 2014-15. Its share in the total public debt receipts had declined from 12.9 percent to 5.1 percent between 2010-11 and 2014-15. The central loans are now being availed only for state’s plan schemes. For the treatment of debt liabilities, a new approach was adopted in 2012-13 which was a departure from the way it was treated earlier, when the net receipts from Small Savings, Provident Fund and other accounts were included in the total debt liabilities of the state government. However, a new Indian Government Accounting Standard (IGAS) 10, proposed by the Government Accounting Standards Advisory Board (GASAB), has introduced a distinction between the receipts of debt into the Consolidated Fund and the liabilities that accrue to the state government automatically by virtue of its Public Account. Though the standard has not yet been formally adopted and is not free from contradictions, it has redefined the outstanding liabilities of the state government. Earlier, the total debt of the state government comprised its internal debt, loans from the central government, and loans from small savings and provident fund account. While the first two are part of the borrowings against the Consolidated Fund, the small savings and provident fund account share is maintained in its Public Account. The Small Saving schemes have always been an important source of household savings in India. The small savings instruments can be classified under three heads — (i) postal deposits comprising savings account, recurring deposits, time deposits of varying maturities and monthly income scheme; (ii) savings certificates (National Small Savings Certificate VIII and Kisan Vikas Patra); and (iii) social security schemes like Public Provident Fund (PPF) and Senior Citizens’ Savings Scheme. 28

Following the Report of the Committee on Small Savings in February 1999, a 'National Small Savings Fund' (NSSF) was established in the Public Account of India with effect from April, 1999. All deposits under small savings schemes are credited to NSSF and all withdrawals by the depositors are made out of accumulations in the Fund. The collections under the small saving schemes, net of the withdrawals, are the sources of funds for the NSSF. The NSSF invests the net collections of small savings in the Special State Government Securities (SSGS), as per the sharing formula decided by the central government. As per the current formula, states have to borrow 80 percent of the accumulated balances under this fund mandatorily (and, hence, pay interest to the central government), with the option to go up to 100 percent. Since 2002-03, the net collections are being invested only in state government securities and, thus, the state governments are forced to borrow the entire proceeds. They carry interest rates higher than the market rates and these rates are administered by the central government. These borrowings are internal debt, a part of the overall public debt of the state government and are used partly to finance the fiscal deficit of the state. The remaining amount is invested in Special Central Government Securities (SCGS) with the same terms as that for the state governments. These securities are issued for a period of 25 years, including a moratorium of five years on the principal amount. The special securities carry a rate of interest fixed by the central government from time to time. The rate of interest has remained unchanged at 9.5 percent per annum since April 1, 2003. The income of NSSF comprises the interest receipts on the investments in central government, state governments and other securities. While the interest rate on the investments in the central and state government securities is fixed from time to time, the interest rate on the reinvestment of redeemed amounts is equal to the market rate for 20-year Government Securities. The expenditure of NSSF comprises interest payments to the subscribers of Small Savings and PPF Schemes and the management cost of operating the schemes. The loans from NSSF outstanding against the state government at the end of 2014-15 amounted to Rs 22,907 crore, as against Rs 19,756 crore in 2013-14. During 2014-15, the state government had availed loans against special securities issued to NSSF, amounting to Rs 3945 crore,as compared to Rs. 1386 crore in 2013-14. As per the new accounting standard, public debt now comprises the borrowings from the Consolidated Fund only, while the three major public account balances constitute the ‘Other Liabilities’ of the state government, since they all stand merged into the cash balance of the state government. The ‘Other Liabilities’ include Provident Fund and Other Accounts, Reserve Funds, and Deposits and Advances. The accounts of the state government are already reflecting this new classification of public debt and other liabilities, and the same classification will be followed in the Economic Surveys from now on. It may be mentioned that public accounts create a lot of distortions in the government financial system and there is a need to deal with it at a structural level. The year 2006-07, being the year of the enactment of FRBM legislation, also marked the beginning of fiscal discipline in Bihar, as seen in the containment of its Gross Fiscal Deficit (GFD) within the FRBM Act limits of 3 percent of GSDP. The GFD: GSDP ratio of Bihar was brought down to 2.92 percent in 2006-07 from 4.43 percent in the previous year. It was, 29

thereafter, kept well within the 3 percent limit in all the subsequent years, barring 2009-10 when it was just marginally higher at 3.2 percent of GSDP, necessitating an amendment to the FRBM Act that was reversed the very next year. This was basically a consequence of the economic meltdown in 2008-09. In 2014-15, the ratio of GFD to GSDP stood at 2.8 percent and is estimated to increase marginally to only 2.9 percent as per budget estimates of 2015-16. In absolute terms, the GFD increased from Rs 3970 crore in 2010-11 to Rs 11,178 crore in 2014-15. It is estimated to rise substantially to Rs 13,584 crore as per the budget estimates of 2015-16. Summing up, it can be said that the financial consolidation process was slow in 2014-15, but it was a basically a consequence of the adverse macroeconomic situation prevailing in the country since 2010-11 that affected all states’ receipts and liabilities. But the public finances of the state government are still being managed prudently and are in a healthy shape now. 2.2 Fiscal Performance The revenue and capital deficits represent the excess of expenditure over receipts under those accounts. The conventional deficit is the algebraic sum of the revenue and capital deficits of the Consolidated Fund of the state government. This, however, does not actually show the total resource gap, as it includes the borrowings under the capital receipts. The overall resource gap is reflected by the Gross Fiscal Deficit (GFD) which is bridged by borrowings of one sort or another. For analyzing the fiscal performance of the state government during three years (201314 to 2015-16), the present analysis has used the following 8 indicators — (i) Ratio of Revenue Deficit to GFD, (ii) Ratio of Capital Outlay to GFD, (iii) Ratio of Non-Development Revenue Expenditure to Aggregate Disbursement, (iv) Ratio of Non-Development Revenue Expenditure to Revenue Receipt, (v) Ratio of Interest Payment to Revenue Expenditure, (vi) Ratio of State’s Own Revenue to Revenue Expenditure, (vii) Ratio of Gross Transfer from Central Government to Aggregate Disbursement, and (viii) Ratio of Debt Servicing Expenditure to Gross Transfers from Central Government. (i)

Ratio of Revenue Deficit to GFD : This ratio indicates the extent to which revenue deficit contributes to GFD. Ideally, the revenue account should leave a surplus for the creation of capital assets. As noted already, there were substantial surpluses in the revenue account of state government for the last few years, enabling it to increase its capital expenditure continuously. The revenue surplus decreased to Rs 5848 crore in 2014-15 from Rs. 6441 crore in 2013-14, and it constituted 52 percent of GFD in 2014-15, a steep decline from 77 percent in 2013-14. Thanks to the recommendations of the Twelfth Finance Commission, most major states in the country today are ‘revenue surplus’ states. During the last three years, among 17 major states, other than Bihar, 10 other states (Jharkhand, Odisha, Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Karnataka, Tamil Nadu and Chhattisgarh) have consistently maintained reasonable surpluses in their revenue accounts. Among the states that failed to achieve consistent surpluses in their revenue accounts are included — Maharashtra, West Bengal, Punjab, Haryana, Kerala and Himachal Pradesh. 30

(ii)

Ratio of Capital Outlay to GFD : As an obvious consequence of the improvements in its revenue accounts, Bihar has had a high capital outlay during the last three years. In 201314 the capital outlay was nearly 1.7 times its GFD; this decreased to 1.6 in 2014-15. In 2015-16, the ratio is expected to increase to 1.8. Among the major states, those which could register a similar high level of capital outlay are — Jharkhand, Odisha, Uttar Pradesh, Madhya Pradesh, Rajasthan, Karnataka, Gujarat and Chhattisgarh.

(iii) Ratio of Non-Development Revenue Expenditure to Aggregate Disbursements: The nondevelopment expenditure, incurred mainly for administrative or general services, should preferably be a small part of the total expenditure. In Bihar, non-developmental revenue expenditure constituted 28 percent of the total expenditure in 2014-15, little more than 27 percent recorded in 2013-14. This was comparable to most states which have managed to curtail their non-developmental revenue expenditure. Some states like Uttar Pradesh, Punjab, Kerala, Tamil Nadu and Maharastra had this ratio above 30 percent. Only Chhattisgarh could curtail its non-developmental revenue expenditure to a level below 20 percent of their total expenditure during 2014-15 and also in 2013-14.

(iv) Ratio of Non-Development Revenue Expenditure to Revenue Receipts : This ratio indicates the extent to which the state government's revenue receipts could not be utilized for developmental purposes. In Bihar, the non-developmental revenue expenditure consumed 32 percent of total revenue receipts in 2013-14 and, in 2014-15, this ratio increased marginally to 34 percent. In 2015-16, this ratio is projected to decrease significantly to 29 percent. While many states like West Bengal, Punjab or Tamil Nadu, had ratios higher than 40 percent, Kerala had a very high ratio of 62 percent in 2014-15. The ratio was less than 30 percent for Jharkhand, Odisha, Madhya Pradesh, Rajasthan and Chhattisgarh in 2014-15.

(v)

Ratio of Interest Payment to Revenue Expenditure: Interest payments constitute a perennial burden on governments' finances in most of the states, because of their high indebtedness. For Bihar, however, interest payments have been consuming progressively lesser proportion of the revenue expenditure since 2004-05. In 2013-14, it was 9 percent. It increased marginally to 10 percent in 2014-15, but is expected to come down to 8 percent in the current fiscal. Except Jharkhand, Odisha, Madhya Pradesh, Karnataka and Chhattisgarh, all other states had this ratio above 10 percent in 2014-15, the highest being 21 percent for West Bengal.

(vi) Ratios of State’s Own Revenue to Revenue Expenditure : The ratio of the state’s own revenue to its total revenue expenditure indicates the self-sufficiency of the state 31

government vis-à-vis its revenue expenditure needs. In 2007-08, own tax and non-tax revenue receipts of Bihar together covered barely 24 percent of its total revenue expenditure. The ratio has improved since then, reaching the peak of nearly 31 percent in 2014-15. But it is still a long way from attaining the desired level of financial selfsufficiency. The position of all other major states is far better on this count. There are ten states whose own revenue meets more than 50 percent of their total revenue expenditure. The level of self-sufficiency was even higher for Maharashtra, Gujarat, Karnataka and Tamil Nadu, for each of which its own revenue net more than 70 percent of the total revenue expenditure.

(vii) Ratio of Gross Transfers from Central Government to Aggregate Disbursements: This ratio brings out the state governments’ dependence on central resources. For Bihar, such dependence has always been very high. The central transfers always accounted for more than 60 percent of Bihar’s total expenditure. However, from the peak of almost 72 percent in 2007-08, this ratio had decreased to 60 percent in 2014-15. In the budget estimates of 2015-16, it was projected to be lowered to 59 percent. No other major state has had such a high dependence on the central government transfers. Among other major states, only Jharkhand, Odisha, Uttar Pradesh, Madhya Pradesh and Chhattisgarh had more than 40 percent of their total expenditure financed by the central transfers. Even if only central grants are considered, since states in any case have a statutory right to the share of central taxes, it accounted for about 16 and 20 percent of Bihar’s aggregate disbursements in 201314 and 2014-15 respectively. This is a more appropriate indicator of state government's dependence on central government.

(viii) Ratio of Debt Servicing to Gross Transfers from Central Government : Till 2003-04, debt servicing used to consume a very substantial portion of the gross transfers from the central government to Bihar. However, due to the recommendations of the Twelfth Finance Commission and better financial management, this ratio has been successfully brought down from more than 100 percent in 2003-04 to only about 27 percent in 2007-08. It has declined further and stood at 19 percent in both 2013-14 and 2014-15; as per the budget estimates of 2015-16 it is 16 percent. The performance of Bihar in this respect is significantly better than many of the major Indian states. In case of West Bengal, Punjab, Haryana, Kerala and Himachal Pradesh, the situation was alarming in 2014-15, since this ratio exceeded 100 percent for these five states, indicating that the entire central transfers was not sufficient to discharge their existing debt servicing obligations. Additional resources were, therefore, needed to pay for debt-servicing, seriously jeopardizing their ability to undertake development expenditure.

32

Table 2.2 : Major Fiscal Indicators

State Bihar

A. Revenue Deficit : GFD (%) 2014-15 2015-16 2013-14 (RE) (BE)

B. Capital Outlay : GFD (%) 2014-15 2015-16 2013-14 (RE) (BE)

-77.1

-52.3

-88.2

167.6

162.4

183.0

-119.1

-78.0

-90.8

208.1

156.6

168.2

74.6

43.4

0.0

27.3

56.0

97.8

Odisha

127.8

140.8

125.9

-17.8

-20.8

-14.6

Uttar Pradesh

-42.6

-115.2

-108.6

138.9

210.1

201.1

Madhya Pradesh

-59.3

-47.0

-33.4

109.0

105.0

108.3

6.8

18.2

-2.7

89.9

82.7

100.7

20.6

37.3

12.2

81.0

62.7

88.2

Gujarat

-25.6

-30.7

-33.1

123.1

129.5

131.3

Punjab

74.4

60.0

53.8

25.0

38.0

40.8

Haryana

46.6

60.7

58.1

47.3

35.6

35.9

Karnataka

-2.1

-0.8

-4.5

98.6

98.8

101.3

Andhra Pradesh

-1.9

70.1

41.5

84.7

35.2

55.8

Kerala

72.0

66.2

45.5

27.3

32.7

53.5

-10.7

-1.1

-1.1

88.2

91.3

92.1

40.4

14.8

-1.4

46.9

74.7

90.0

126.5

118.9

105.4

206.1

-22.5

-7.1

Jharkhand West Bengal

Rajasthan Maharashtra

Tamil Nadu Himachal Pradesh Chhatisgarh

State

C. Non-Dev. Exp: Agg. Disbursements (%) 2014-15 2015-16 2013-14 (RE) (BE)

D. Non-Dev. Exp: Revenue Receipts (%) 2014-15 2015-16 2013-14 (RE) (BE)

Bihar

27.4

27.9

25.1

32.0

33.7

29.3

Jharkhand

32.7

23.3

24.0

38.1

27.0

27.7

West Bengal

32.3

27.5

28.2

56.9

45.4

42.0

Odisha

26.0

24.0

24.6

29.8

29.3

29.2

Uttar Pradesh

35.7

30.1

30.1

42.6

35.4

36.5

Madhya Pradesh

28.0

23.1

27.5

33.2

27.2

33.6

Rajasthan

25.1

22.6

22.7

31.7

29.5

28.1

Maharashtra

30.0

28.7

31.4

37.4

36.7

38.4

Gujarat

25.9

25.0

26.5

33.9

31.7

33.3

Punjab

34.1

31.0

31.9

59.0

54.4

54.7

Haryana

25.1

25.5

25.6

36.1

40.5

38.8

Karnataka

27.1

26.0

26.3

33.5

31.7

32.3

Andhra Pradesh

27.2

27.3

28.0

33.5

36.3

35.1

Kerala

46.3

39.2

39.0

62.1

62.5

63.8

Tamil Nadu

33.6

32.7

33.6

41.3

40.7

42.5

Himachal Pradesh

29.6

23.7

29.0

44.9

40.2

37.9

Chhatisgarh

22.4

17.4

17.7

27.5

19.9

20.2

33

State Bihar

E. Interest Payments: Revenue Exp (%) 2014-15 2015-16 2013-14 (RE) (BE)

F. State Own Revenue: Revenue Exp. (%) 2014-15 2015-16 2013-14 (RE) (BE)

9.4

9.8

8.5

34.4

30.7

37.6

Jharkhand

11.2

6.9

8.0

56.0

47.4

48.5

West Bengal

22.7

20.6

21.3

41.2

39.6

43.2

6.3

7.0

7.4

55.4

44.6

46.0

16.3

13.2

13.3

52.5

51.6

52.6

9.1

7.0

7.4

59.0

49.7

49.2

Rajasthan

12.0

10.4

10.8

62.3

52.8

56.5

Maharashtra

13.7

12.5

13.7

77.4

68.0

74.9

Gujarat

17.7

16.8

16.5

84.2

77.3

77.9

Punjab

18.8

18.1

18.8

65.5

64.4

63.0

Haryana

14.0

14.4

14.7

72.9

64.2

64.9

8.8

8.8

9.7

74.7

67.1

70.7

Andhra Pradesh

12.4

10.4

12.0

71.6

47.9

50.8

Kerala

13.7

12.9

12.8

62.1

62.5

63.8

Tamil Nadu

11.3

10.9

11.9

81.0

78.9

79.3

Himachal Pradesh

14.3

13.9

12.6

39.8

36.6

33.4

4.4

4.2

4.2

59.2

52.4

53.5

Odisha Uttar Pradesh Madhya Pradesh

Karnataka

Chhatisgarh

State

G. Gross Transfers: Aggregate Disbursements (%) 2014-15 2015-16 2013-14 (RE) (BE)

H. Debt Servicing: Gross Transfers (%) 2014-15 2015-16 2013-14 (RE) (BE)

Bihar

59.7

60.0

59.4

18.8

18.9

16.2

Jharkhand

43.1

49.4

49.6

35.2

18.9

20.7

West Bengal

27.8

34.9

38.2

139.8

109.4

97.8

Odisha

43.2

50.1

50.0

51.3

52.2

52.5

Uttar Pradesh

42.7

47.7

45.3

39.7

28.4

36.3

Madhya Pradesh

39.8

47.4

45.0

29.1

20.6

26.7

Rajasthan

29.4

35.4

37.2

47.6

34.7

32.8

Maharashtra

16.5

22.3

21.2

105.8

70.3

78.8

Gujarat

16.0

22.3

22.2

116.7

74.9

74.6

Punjab

13.5

15.8

17.4

298.4

257.4

224.6

Haryana

14.3

14.2

16.1

178.3

181.1

149.7

Karnataka

21.7

28.0

25.6

48.4

38.5

46.6

Andhra Pradesh

24.1

33.8

37.1

63.6

42.1

40.1

Kerala

17.6

19.9

22.4

95.9

127.8

105.6

Tamil Nadu

17.8

18.2

17.6

74.1

70.8

80.0

Himachal Pradesh

37.2

37.3

51.2

73.7

103.4

43.4

Chhatisgarh

32.0 43.8 44.3 52.0 Source : State Governments’ Budgets

44.5

48.6

34

Sustainability, Flexibility and Vulnerability of State Finances The preceding analysis can be extended further to identify the factors that make a state financially healthy, allowing for more development activities. It would then be necessary to know whether the means of financing these activities are sustainable, i.e., they meet the increased expenditure needs of the state government without substantially adding to its debt burden. Secondly, it would also be pertinent to examine the flexibility of the means of financing, either by increasing the revenue or by borrowing. Finally, one should also examine whether increased expenditure exposes the government to more risks and makes it vulnerable to the sources of funding. Some of the indicators which measure the sustainability, flexibility and vulnerability of the state government finances are presented in Table 2.3 and they are discussed below.

(i)

Balance of Current Revenue (BCR) : This is calculated as state government's own revenue receipts, plus share of central taxes, plus non-plan grants, minus non-plan revenue expenditure. A positive BCR shows that the state government has surplus funds from its revenues to meet the plan expenditure. Bihar has a substantial positive BCR that has been increasing for the last six years. It increased from Rs 9442 crore in 2010-11 to Rs 15,484 crore in 2014-15. This is projected to become Rs 28,912 crore in 2015-16, as per the budget estimate.

(ii)

Interest Ratio : This is calculated as (Interest Payment - Interest Receipt) / (Total Revenue – Interest Receipt). A higher ratio indicates a reduced ability of the state government to service any fresh debt and meet its revenue expenditure from its revenue receipts. For Bihar, the ratio has been falling continuously. This ratio was 12 percent in 2010-11. As per the budget estimate of 2015-16, it is expected to decrease to 8 percent.

(iii)

Capital Outlay/Capital Receipts : This ratio indicates the extent to which capital receipts are utilised for capital formation. A ratio of less than 100 percent would not be sustainable in the long run, as that would indicate that capital receipts are being utilized for revenue expenditure. This ratio was at a healthy level of 220 percent in 2006-07, and 373 percent in 2007-08. Thereafter, it declined during the next two years, before rising again to 152 percent in 2010-11. At the end of 2014-15, however, the ratio stood at 118 percent, poised to rise to 140 percent in the current fiscal. Thus, the entire capital receipt of the state government is presently being used for capital outlay, a part of the latter being financed by the surplus in the revenue account. It must be mentioned that, prior to 200506, this ratio used to remain below 20 percent, mostly due to the high debt service payments.

(iv)

State's Own Tax Receipts/ GSDP :This is an important indicator of the gap between the tax receipts of the state government and tax potential. A low ratio also indicates low tax compliance. For Bihar, the ratio of its own tax receipts to GSDP has stagnated at around 35

4 percent till 2008-09 and, since then, has grown just above 5 percent in 2011-12. In 2013-14, the ratio improved to 6 percent, before falling to 5 percent in 2014-15 . Since this ratio is much lower compared to other states, there is further scope for tapping the entire tax potential of the state. In the current fiscal, it is expected to rise above 6 percent.

(v)

Debt Outstanding/ GSDP : This ratio indicates whether the state government has fallen into a debt trap from which it may not be able to come out on its own. A high ratio leaves little room for the state government for financial leverage and indicates a lack of flexibility. It can be noted here that the total debt which constituted 23 percent of the GSDP in 2010-11 has been brought down to only 19 percent in 2014-15. As this debt burden is clearly sustainable, Bihar is safely positioned on this account.

(vi)

Capital Repayment / Capital Borrowings : This ratio indicates the extent to which the capital borrowings could not be utilized for asset creation. A high ratio indicates that capital receipts are being utilized more for capital repayment, depriving the economy of additional asset creation. For Bihar, this ratio has decreased from 55 percent in 2010-11 to 29 percent in 2014-15. As per the budget estimates, it is projected to decrease further to 26 percent in 2015-16.

(vii)

Primary Deficit : This is the GFD minus interest payments. It measures the impact of the current policies of the state government without considering the liabilities created in the past, for which interest has to be paid now. A necessary condition for long term sustainability of debt is that the primary account should not be in deficit. In 2008-09, Bihar had a primary surplus of Rs 1246 crore, but since then, except in 2010-11 when there was a modest primary surplus of Rs 349 crore, Bihar could not generate any surplus in its primary account. In 2014-15, it had a primary deficit of Rs 5050 crore (1.26 percent of GSDP) which is estimated to increase further to Rs 6364 crore (1.34 percent of GSDP) in 2015-16. This remains a matter of concern.

(viii) Buoyancy of State’s Tax and Non-Tax Revenues : The buoyancy of own tax receipts of the state government shows considerable variation — ranging from 0.2 in 2014-15 to 1.4 in 2011-12 and 2012-13. In case of non-tax revenue, the buoyancy had varied from (-) 1.6 to 2.3 during the period 2010-15. The negative buoyancy in non-tax revenues in 2010-11 was due to the withdrawal of debt relief as available under the period covered by the Twelfth Finance Commission. In 2011-12, this buoyancy was again negative due to the recovery of a part of debt relief that was given to the state in 2010-11, amounting to Rs 384 crore. Such buoyancy ratios for non-tax revenue are not very meaningful, as some one-time transfers from the central government are treated as non-tax revenue. 36

Table 2.3 : Fiscal and Financial Performance Indicators Indicators

2010-11 2011-12 2012-13 2013-14 2014-15

2015-16 (BE)

A. Sustainability Balance from Current Revenue (Rs. crore)

9442

9987

14128

16242

15484

28912

Interest Ratio (%)

11.80

9.13

8.67

9.26

9.82

8.16

Buoyancy of Own Tax Receipts w.r.t. GSDP

0.9

1.4

1.4

1.3

0.2

2.7

Buoyancy of Non-Tax Receipts w.r.t. GSDP

-1.6

-0.5

1.3

2.1

0.1

6.6

8.8

7.8

12.7

11.8

16.0

18.5

Growth in total revenue receipts (%)

25.3

15.2

16.1

15.7

13.8

31.6

Growth in state’s own revenue receipts (%)

11.2

24.4

28.8

23.7

3.7

53.6

Growth in GSDP (%)

24.9

19.5

20.7

17.0

17.1

17.9

Capital Repayment / Capital Borrowings (%)

54.6

72.9

54.0

39.6

28.6

26.1

Total Tax Receipts / GSDP (%)

16.6

16.7

16.4

15.9

14.3

17.2

152.1

133.1

100.1

141.1

117.8

140.2

State’s Own Tax Receipts / GSDP (%)

4.8

5.2

5.5

5.8

5.2

6.5

State’s Own Non-Tax Receipts / GSDP(%)

0.5

0.4

0.4

0.4

0.4

0.7

23.23

20.96

19.57

18.70

18.54

18.64

-6316

-4820

-5101

-6441

-5848

-11981

Fiscal Deficit (Rs. crore)

3970

5915

6545

8352

11178

13584

Primary Deficit (Rs. crore)

-349

1611

2117

2893

5050

6364

Primary Deficit / Fiscal Deficit (%)

-8.8

27.2

32.3

34.6

45.2

46.8

Revenue Deficit / Fiscal Deficit (%)

-159.1

-81.5

-77.9

-77.1

-52.3

-88.2

Growth in outstanding debt (%)

B. Flexibility

Capital Outlay / Capital Receipts (%)

Debt Outstanding / GSDP (%) C. Vulnerability Revenue Deficit (Rs. crore)

Summing up, it is noted that while the key fiscal indicators point to improvements in the fiscal position of the state government over the recent years, there still remain some concerns. For example, the revenue receipts of the state government have been increasing much faster than the outstanding debt, but the primary account of the state government is still showing deficit. It is noted that 2014-15 has been a particularly bad year in respect of various parameters spanning growth of revenue, payment of committed expenditure, and management of debt and deficits. With a better debt management over the years, the state government has gained increased flexibility and was in a better position to direct its resources for development expenditure. In terms of vulnerability, however, the state government still remains overwhelmingly dependent on the central transfers for meeting its own expenditure needs. This dependence can be lessened 37

as there still remains untapped potential for increasing its own tax revenues. It is also important to recognize that the public finances of the state are inextricably linked to the health of the national economy and the management of national public finances, which continue to suffer from internal structural deficiencies as well as externalities of the global economy which are beyond its control. 2.3 Deficit Management The position in the revenue account as well as the combined position of the revenue and capital accounts of the major Indian states for the years 2013-14 to 2015-16 (BE) are presented in Table 2.4. Bihar attained its highest surplus of Rs 6441 crore in the revenue account in 2013-14, recovering from the economic downturn which had caused a decline in its revenue surplus after 2010-11. This satisfactory position in terms of revenue surplus in 2013-14 was expected to improve substantially in the next fiscal, when the state government was expected to generate a record level of revenue surplus of Rs 11,981 crore. In reality, however, there was a revenue surplus of only Rs 5848 crore. The GFD position, that has been worsening since 2010-11 due to high capital outlay, has shown no improvement in 2014-15; in fact, in 2014-15, the GFD of Bihar has increased to Rs 11,178 crore from Rs 8352 crore in 2013-14, i.e. by nearly 34 percent. Table 2.4 : Deficit/Surplus position of States (Rs. crore) Revenue Deficit (+)/ Surplus(-) State

Conventional Deficit (+)/ Surplus(-)

2013-14 (Actuals)

2014-15 (RE)

2015-16 (BE)

Bihar

-6441

-5848

-11981

1564

870

-229

Jharkhand

-2705

-3830

-4684

-434

NA

NA

West Bengal

18915

10362

NA

7218

3166

-4950

Odisha

-3329

-3377

-5102

4637

2057

1307

-10067

-32407

-34124

16922

4345

5813

-5879

-6371

-5588

4379

2560

3118

Rajasthan

1039

4220

-557

4813

10003

3283

Maharashtra

5081

13883

3757

8229

9980

4645

Gujarat

-4717

-6387

-7308

5284

2143

3125

Punjab

6537

6240

6394

1333

2335

1229

Haryana

3875

9500

9558

-1322

5342

154

Karnataka

-353

-160

-911

3710

1638

3133

Andhra Pradesh

-344

14243

7300

43

2575

945

Kerala

11309

10264

7832

4471

1747

688

Tamil Nadu

-1760

-244

-289

314

2879

2213

1641

505

-47

4062

2774

3325

809

-2376

-4227

1823

557

578

Uttar Pradesh Madhya Pradesh

Himachal Pradesh Chhatisgarh

2013-14 (Actuals)

Source : State Governments’ Budgets

38

2014-15 (RE)

2015-16 (BE)

The GFD is likely to increase further in the current fiscal to Rs 13,584 crore (22 percent), due to an increase in capital outlay. This is in keeping with the avowed policy of the state government to continuously increase investments in social and physical infrastructure. All states have been facing nearly the same problem, arising from the phenomenon of economic downturn. Andhra Pradesh leads the states having deficits in their revenue accounts, with a deficit of more than Rs 14,000 crore. Other revenue deficit states are West Bengal, Punjab, Haryana, Maharashtra, Rajasthan, Kerala and Himachal Pradesh. Most states showed a conventional deficit in their budget, necessitating borrowings during 2014-15. The GFD of a state government is a sensitive indicator of its financial performance, as it reflects the total resource gap. Table 2.5 presents the GFD of the major states in India. As noted earlier, Bihar’s GFD had sharply increased in last three years, due to higher capital investments and is estimated to touch the all-time high level of Rs 13,584 crore in 2015-16 (BE). As a percentage of GSDP, however, the GFD has remained well below 3 percent of the GSDP, as mandated by the FRBM Act, during all these three years. As regards other major states, West Bengal, Uttar Pradesh, Madhya Pradesh, Rajasthan, Maharashtra, Gujarat, Punjab, Haryana, Karnataka, Andhra Pradesh, Kerala and Tamil Nadu — all had very high fiscal deficits in 2014-15, exceeding Rs. 10,000 crore. Table 2.5 : Gross Fiscal Deficit Gross Fiscal Deficit (Rs. crore) State

2013-14 (Actuals)

2014-15 (RE)

2015-16 (BE)

Gross Fiscal Deficit (Rs. crore State

2013-14 (Actuals)

2014-15 (RE)

2015-16 (BE)

Bihar

8352

11178

13584

Punjab

8791

10397

11895

Jharkhand

2272

4911

5157

Haryana

8323

15641

16436

West Bengal

25348

23882

15982

Karnataka

17180

19110

20295

Odisha

-2605

-2398

-4052

Andhra Pradesh

18050

20320

17584

Uttar Pradesh

23655

28125

31409

Kerala

15707

15494

17223

9917

13569

16745

Tamil Nadu

16519

21643

25714

Rajasthan

15200

23172

20618

Himachal Pradesh

4062

3424

3325

Maharashtra

24702

37245

30733

Chhatisgarh

640

-1999

-4009

Gujarat

18423

20777

22059

Madhya Pradesh

Source : State Governments’ Budgets

Table 2.6 shows the decomposition of the GFD of Bihar, from which one can find that capital outlay accounted for most of GFD, as it rightly should. This was true throughout the period from 2010-11 to 2014-15, and more so during the recent years. The fact that the capital outlay now accounts for almost the entire GFD, after exhausting the revenue surplus, indicates that it is now being utilised for building the much-needed social and physical infrastructure in Bihar. Net lending has always constituted a small part of the GFD of the state government. The capital outlay has increased in Bihar at an annual rate of 22 percent during the last six years. 39

Table 2.6 : Decomposition of Gross Fiscal Deficit of Bihar (Rs. crore) Amount

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Revenue Deficit

-6316

-4820

-5101

-6441

-5848

-11981

Capital Outlay

9196

8852

9585

14001

18150

24853

Net Lending

1091

1884

2061

792

-1124

712

GFD

3970

5915

6545

8352

11178

13584

203555

243269

293616

343663

402283

474130

2.0

2.4

2.2

2.4

2.8

2.9

GSDP GFD: GSDP ratio (%)

Source : State Government Budgets

Chart 2.3 : GFD: GSDP Ratio (Percentage)

3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 BE

Chart 2.4 : Decomposition of GFD (Rs. crore)

30000 25000 Net Lending

20000

Capital Outlay

Revenue Deficit

15000 10000 5000 0 -5000

2010-11

2011-12

2012-13

-10000 -15000

40

2013-14

2014-15

2015-16 BE

Table 2.7 shows how the GFD was financed during the recent years. The net borrowing consisted of mainly internal market borrowings, the central loans being a very small portion of the total borrowing. In 2014-15, the net borrowings financed as much as 92 percent of the GFD. The net accruals from the Public Account, which constitutes a part of the cash balances of the state government, amounted to 5 percent of the GFD, leaving the rest 3 percent to be drawn from the cash balance of the state government. Table 2.7 : Financing of Gross Fiscal Deficit (Rs crore) 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Net Borrowing

3842

3706

6484

6788

10309

13814

Net Public Account

2238

2469

343

1606

551

-181

-2110

-333

-281

-42

319

-48

3970

5915

6545

8352

11178

13584

Net Borrowing

96.8

62.6

99.1

81.3

92.2

101.7

Net Public Account

56.4

41.7

5.2

19.2

4.9

-1.3

-53.1

-5.6

-4.3

-0.5

2.9

-0.4

Amounts

Net Decrease in Cash Balance (Opening - Closing Balance) GFD Percentage Composition

Net Decrease in Cash Balance

Source : State Government Budgets

Cash Management As of March 31, 2015, the state government had a cash balance of Rs 6337 crore, compared to Rs 6156 crore on March 31, 2014. Out of this, Rs 3528 crore were invested in Cash Balance investment account, Rs 211 crore as cash with departmental officers from Public Works and Forest Departments, Rs 344 crore as permanent advances for contingent expenditure with various departments, and Rs 2343 crore were invested in earmarked funds like the Sinking Fund, leaving a net credit cash balance of Rs 89 crore with the RBI. An amount of Rs 312 crore was realised as interest on the state government’s investments during the year, compared to Rs 233 crore during the last year. Guarantees by State Government The outstanding guarantees of the state government at the end of 2014-15 stood at Rs 2001 crore (2.6 percent of total revenue receipts) compared to Rs 1961 crore at the end of 2013-14. Out of this, Rs 734 crore were against the loans to the Bihar State Electricity Board (BSEB), Rs 193 crore against the Bihar State Road Transport Corporation, and Rs 127 crore against the Bihar State Financial Corporation. Further, Credit Cooperative Societies and Housing Cooperatives accounted for Rs. 349 crore. Due to increase in investment in the electricity sector, the state is yet to establish any Guarantee Redemption Fund, as suggested by the Twelfth Finance Commission, to discharge any possible future liabilities. The outstanding guarantees remained 41

nearly the same during the last two years. The interest on outstanding guarantees amounted to Rs 148 crore during the year. 2.4 Debt Management Table 2.8 shows the outstanding debt liabilities of the state government (excluding guarantees) from 2010-11 to 2014-15. The outstanding liability as a percentage of GSDP had decreased consistently from 31 percent in 2010-11 to 25 percent in 2014-15. Table 2.8 : Outstanding Liabilities Amounts

(Rs crore) 2015-16 (BE)

2010-11

2011-12

2012-13

2013-14

2014-15

Internal Debt

39020

42365

48826

55624

65848

77592

Central Loans

8264

8626

8649

8638

8722

10792

47285

50990

57474

64262

74570

88384

Small Savings, PF etc.

9563

9561

9346

9048

8865

8503

Reserve Funds

1207

1543

1819

2121

1884

1884

Deposits and Advances

4803

5718

7865

11507

13730

13917

15573

16822

19029

22677

24485

24305

62858

67812

76504

86939

99055

112689

30.9

27.9

26.1

25.3

24.6

23.8

Public Debt

Total Other Liabilities

Total Total (Public Debt + Other Liabilities) Outstanding Liability as % of GSDP

Source : State Government Budgets

The total outstanding liabilities of the state government, as can be seen from Table 2.8, had accumulated to Rs. 99,001 crore at the end of 2014-15, of which the public debt liability on account of borrowings on the Consolidated Fund accounts for 75 percent. This figure is the accumulated effect of past borrowings, growing at an annual rate of 12 percent since 2010-11. The liability on account of public debt has also been growing at an annual rate of 12 percent since 2010-11. Table 2.8 also shows that 88 percent of this outstanding public debt is due to the internal loans raised by the state government, remaining 12 percent being loans from the central government. The composition of outstanding debt has undergone a structural change over the years, with the share of central loans decreasing gradually, because of the recommendations of the Twelfth Finance Commission. In the coming years, the central government loans will probably no longer be a part of the loan portfolio of the state government. Liability from Public Account constitutes a significant part of the total liability of the state government, though it is not a debt in the strict sense of the term. But the resources are indeed used by the state government, and there is a liability to pay back the outstanding balances in these accounts, which form a part of the cash balance of the state. It may be noted that some of 42

these liabilities under the Reserve Funds and Deposits and Advances will be non-interest bearing, since the state government only holds these funds in trust. As explained earlier, National Small Savings Fund (NSSF) contributes significantly to the internal borrowings of the state government. During 2014-15, the state government had raised Rs 13,199 crore (Rs 9357 crore in 2013-14) through internal borrowings, of which Rs 3945 crore came from NSSF, Rs 8100 crore were raised from the market, and Rs 1154 crore were borrowed from financial institutions. The state government did not avail any ways and means advances from the RBI during 2014-15. The central loans borrowed for state plan schemes amounted to Rs 631 crore. The composition of outstanding liabilities in the Consolidated Fund of the state government as on March 31, 2015 is shown in Table 2.9. It is seen from the table that NSSF accounts for 35 percent and market loans 58 percent of the total outstanding internal debt of the state government. The outstanding central loans are almost entirely on account of loans for state plan schemes. Table 2.9 : Composition of Outstanding Liabilities in the Consolidated Fund Outstanding Balance as on 31.03.2014 31.03.2015 (Rs crore) (Rs crore)

Nature of Borrowings A. Internal Debt, of which

Percentage Percentage Composition Increase (31.03.15)

55,624

65,848

18.4

88.3

31,285

37,951

21.3

50.9

0

0

0.0

0.0

434

227

-47.9

0.3

Loans from Financial Institutions

4,141

4,756

14.9

6.4

Special Securities Issued to NSSF

19,756

22,907

15.9

30.7

7

7

0.0

0.0

8,638

8,722

1.0

11.7

59

56

-5.0

0.1

8,531

8,618

1.0

11.6

Loans for Central Plan Schemes

1

1

0.0

0.0

Loans for Centrally Sponsored Plan Schemes

1

1

0.0

0.0

47

47

0.0

0.1

64,262

74,570

16.0

100.0

Market Loans WMA from the RBI Bonds

Others B. Loans and Advances from Central Government, of which Non plan loans Loans for State Plan Schemes

Other Loans Total (A+B)

Source : Finance Accounts, GOB

Table 2.10 shows the repayment liabilities of the state government. In 2014-15, the total repayment of principal by the state government amounted to Rs. 4895 crore, while the interest payment was higher at Rs 6129 crore. The annual interest burden has increased by Rs 1810 crore over the past five years, due to substantial past borrowings. The total annual debt service burden has increased from Rs. 7095 crore in 2010-11 to Rs. 11,024 crore in 2014-15, growing at an 43

annual rate of 12 percent. In the budget estimates for 2015-16, it is expected to increase by nearly 16 percent to Rs 12,775 crore. Table 2.10 : Public Debt Repayment Liabilities (Rs. crore) 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

1725

2457

2585

2559

2975

3177

Repayment of loans to Centre

466

465

485

561

634

719

Discharge of other liabilities

586

1034

1512

1370

1287

1659

Total Repayment

2776

3956

4582

4490

4895

5554

Total Interest Payment

4319

4304

4428

5459

6129

7221

Total Debt Service Burden

7095

8260

9010

9949

11024

12775

Amounts Discharge of internal debt

Note : Liabilities include receipts and payments of Small Saving and Provident Fund under Public Accounts of the Government of Bihar.

Public debt can be a powerful agent of economic growth, if it is utilised for the creation of productive assets. As can be seen from Table 2.11, the debt resources could not be utilised much by the state government for creating productive assets till 2011-12, when they were mostly used to discharge the existing debt obligations. During the next three years, however, there was a net accrual to the state exchequer out of the total borrowing. In 2014-15, out of the total borrowed amount of Rs. 13,918 crore, Rs 3609 crore were used for repayment of the principal amounts of the existing public debt, and Rs. 6129 crore for payment of interest. Taking into account the Table 2.11 : Net Public Debt Received (Rs. crore) Amounts Gross Central Loans Received

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

782

827

508

550

718

2789

Internal Debt Recd

5251

5801

9046

9357

13199

14920

Total Debt Received

6032

6628

9554

9907

13918

17709

12

23

25

15

1493

17

Interest payments

4319

4304

4428

5459

6129

7221

Interest Received

238

574

167

269

345

312

Repayment of Debt

2190

2922

3070

3120

3609

3895

Net Debt Received

-227

-2

2248

1613

6018

6921

16.3

43.2

39.1

Recoveries of Loans and Advances

Net Debt Received as percentage -3.8 0.0 23.5 of total borrowing Source : State Government Budgets

44

nominal receipts on account of recoveries of loans and advances given by the state government as well as interest receipts on such loans, it resulted in net inflow of Rs 6018 crore as resources for the state government, which was 43 percent of the net debt received. In 2013-14, this was only Rs 1613 core or 16 percent of the total borrowings. As per the budget estimates of 2015-16, this situation is likely to be improved further and the state government should be in a position to utilize Rs 6921 crore for its own developmental requirements, equivalent to 39 percent of net borrowings. Though the overall situation has now improved vastly, it still implies a limited space available to the state government for fiscal maneuverability. 2.5 Tax : GSDP Ratio Table 2.12 shows a comparison among different states with respect to their Tax : GSDP ratios in 2013-14. It is seen that, for Bihar, this ratio at only 5.8 percent was the third lowest among all major states, above Jharkhand and West Bengal. Except Odisha, Rajasthan and Himachal Pradesh, all other states had their Tax : GSDP ratios above 7 percent, while Karnataka and Andhra Pradesh had the ratio exceeding 10 percent, the highest being 14 percent for Andhra Pradesh (composite state). Bihar’s Own Tax: GSDP ratio of only 5.8 percent indicates that its tax potential remains largely untapped. If its own tax: GSDP ratio improves, the ratio between its total revenue and GSDP that currently stands at only 20 percent (2014-15) would also improve automatically. As regards the total Revenue: GSDP ratio, which includes the central transfers and grants, Bihar records the highest ratio of 20 percent, followed closely by Uttar Pradesh (20 percent), the composite state of Andhra Pradesh (19 percent) and Chattisgarh (19 percent). Chart 2.5 : State Own Tax : GSDP Ratio (Percentage)

7.00 6.51 6.00 5.00

4.85

5.18

5.54

5.81 5.16

4.00 3.00 2.00 1.00 0.00 2010-11

2011-12

2012-13

45

2013-14

2014-15

2015-16 BE

Table 2.12 : Tax : GSDP Ratio of States (2013-14)

State

Revenue State's Own GSDP Receipts Tax (Rs. (Rs. crore) (Rs. crore) crore)

State’s Total Own Tax: State's Own Revenue: Revenue Tax: GSDP GSDP Receipts

Bihar

68919

19961

343663

29.0

5.8

20.1

Jharkhand

26137

9380

172773

35.9

5.4

15.1

West Bengal

72882

35831

706561

49.2

5.1

10.3

Odisha

48947

16892

272980

34.5

6.2

17.9

168214

66582

862746

39.6

7.7

19.5

Madhya Pradesh

75749

33552

434730

44.3

7.7

17.4

Rajasthan

74470

33478

517615

45.0

6.5

14.4

149822

108598

1510132

72.5

7.2

9.9

Gujarat

79976

56372

765638

70.5

7.4

10.4

Punjab

35104

24079

317556

68.6

7.6

11.1

Haryana

38012

25567

388917

67.3

6.6

9.8

Karnataka

89543

62604

614607

69.9

10.2

14.6

Andhra Pradesh

90125

63604

464184

70.6

13.7

19.4

Kerala

49177

31995

396282

65.1

8.1

12.4

Tamil Nadu

98828

72027

854238

72.9

8.4

11.6

Himachal Pradesh

15711

5121

82585

32.6

6.2

19.0

Chhatisgarh

32050

14343

185682

44.8

7.7

17.3

Uttar Pradesh

Maharashtra

Source : State Governments’ Budgets

2.6 Revenue Account: Receipt and Expenditure The summary of revenue receipts and expenditure of the state government is shown in Table 2.13. During 2010-11 to 2014-15, the revenue receipts grew at an annual rate of 15 percent, while revenue expenditure grew at a higher rate of 17 percent. Thus, though there was a revenue surplus in each of these five years, the surplus shriveled over the years. The total revenue receipts increased 1.76 times during the five-year period from Rs. 44,532 crore (2010-11) to Rs. 78,418 crore (2014-15). Simultaneously, its own revenue, tax and non-tax combined, have grown at a faster rate of 20 percent during this period, increasing from Rs. 10,855 crore (2010-11) to Rs. 22,309 crore (2014-15). In the budget estimates of 2015-16, both the revenue receipts and revenue expenditure are projected to increase steeply, leading to a more than double the surplus of Rs 5848 crore recorded in 2014-15. The state government's own revenue, tax and non-tax combined, met only 28 percent of its revenue expenditure in 2010-11, but it increased to 31 percent in 2014-15.

46

Table 2.13 : Revenue Account (Rs. crore) 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Revenue Receipt

44532

51320

59567

68919

78418

103189

Revenue Expenditure

38216

46500

54466

62477

72570

91208

Revenue Surplus

-6316

-4820

-5101

-6441

-5848

-11981

State’s own tax + non-tax revenue

10855

13502

17388

21505

22309

34271

24.4

26.3

29.2

31.2

28.4

33.2

53.8

54.4

53.6

50.5

47.1

49.2

21.8

19.3

17.3

18.3

24.4

17.6

28.4

29.0

31.9

34.4

30.7

37.6

Amounts

State’s own revenue as % of total revenue State’s share of Central tax as % of total revenue Central Grants as % of its total revenue State’s own revenue as % of revenue expenditure

Source : State Government Budgets

In Table 2.13, some more parameters of the state government finances have been presented, comparing its own tax and non-tax revenues with its total tax and non-tax revenues. The tax revenues of the state government consist of its own revenues as well as its share from the divisible pool of central taxes. The share of state government's own tax revenue in total tax revenue, which was stagnating at about 20 percent earlier, had started increasing from 2010-11 onwards and stood at 28 percent in 2014-15. It has financed about 30 percent of its total revenue expenditure during those years, except in 2013-14 when this share rose to 34 pecent; as such, the state government still remains overwhelmingly dependent on the central resources. Till 2013-14, more than 50 percent of the total revenues of Bihar came from the divisible pool of central taxes alone; however, in 2014-15, it came down to 47 percent. The central grants, both plan and nonplan, together accounted for 24 percent of the total revenue in 2014-15. From 2013-14, the practice of direct transfers by the central government to implementing agencies in respect of Centrally Sponsored Schemes had been abolished and such transfers are now routed through the state budget. In consequence, share of central grants in total revenues of the state government increased in 2014-15. Table 2.14 shows the break-up of the total expenditure of the state government between developmental and non-developmental purposes, as well as between plan and non-plan expenditures. The plan expenditure is mostly developmental, while non-plan expenditure may be either developmental or non-developmental. In the absence of any clear guideline for the classification of expenditure between plan and non-plan on a rational basis, the distinction is ambiguous. Further, with the abolition of Planning Commission, it is quite likely that the classification in terms of plan and non-plan expenditure may disappear in future. Consequently, there is not much significance in analyzing the expenditure in terms of plan and non-plan heads. The share of development expenditure, on revenue and capital accounts combined, in the total 47

expenditure of the state government had increased substantially from less than 50 percent in 2005-06 to 63 percent in 2010-11 and, after that, it has remained nearly unchanged with some minor variations from year to year. In 2014-15, the ratio was 68 percent. In absolute terms, the development expenditure has doubled during the five years, 2010-11 to 2014-15, indicating its remarkable growth. Table 2.14 : Expenditure Pattern (Rs crore) 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Non-Developmental Expenditure

18583

22563

23805

25949

30390

34887

Developmental Expenditure

32122

37619

45402

54456

64308

85798

Total Expenditure

50705

60182

69207

80405

94698

120685

63.4

62.5

65.6

67.7

67.9

71.1

Plan Expenditure

20911

23008

28381

33678

43939

57426

Non Plan Expenditure

29794

37174

40825

46728

50759

63260

Plan Expenditure as % of Total Expenditure

41.2

38.2

41.0

41.9

46.4

47.6

Interest Payments

4319

4304

4428

5459

6129

7221

Amounts

Development Expenditure as % of Total Expenditure

Source : State Government Budgets

As regards the crucial element of interest payment, it is seen from Table 2.15 that the difference between the gross and net interest payments is only marginal, due to the poor recovery of interest on the loans and advances given by the state government to its mostly loss-making public sector enterprises and autonomous bodies. For most of these public enterprises, their accumulated losses have wiped out their equity bases several times over. As already emphasised before, Table 2.16 indicates that the capital outlay has substantially increased from Rs. 9196 crore in 2010-11 to Rs. 18,150 crore in 2014-15, drawing from the substantial surplus in the revenue account and reinforcing the state government’s commitment to development. In the budget estimates of 201516, it is projected to rise further to Rs. 24,853 crore. Table 2.15 : Interest Payment and Receipt (Rs. crore) 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Gross Interest Payment

4319

4304

4428

5459

6129

7221

Net Interest Payment

4081

3730

4261

5190

5784

6909

Amounts

Source : State Government Budgets

48

Table 2.16 : Parameters of Expenditure (Rs. crore) Amounts

2015-16 (BE)

2010-11 2011-12 2012-13 2013-14 2014-15

Total Tax Revenue

33848

40547

48153

54790

57713

81623

Own Tax Revenue

9870

12612

16253

19961

20751

30875

986

890

1135

1545

1558

3396

10855

13502

17388

21505

22309

34271

Capital Outlay

9196

8852

9585

14001

18150

24853

Capital Outlay as % of Total Expenditure

18.14

14.71

13.85

17.41

19.17

20.59

Own Non-tax Revenue Own Tax + Non-tax Revenue

Source : State Government Budgets

The extent of the state government's dependence on central resources can be seen from Table 2.17, showing the gross transfer of resources to Bihar during 2010-11 to 2015-16. The gross transfer of resources includes the state government's share in central taxes, grants-in-aid from the central government, as well as central loans. The net transfer of resources from the central to state government constituted 59 percent of its total expenditure in 2014-15; in 2010-11, such transfers had met 67 percent of the total expenditure; in 2015-16, this share is estimated at 59 percent. As already noted, the contribution of state government's own resources to total expenditure increased from 21 percent to 27 percent during 2010-11 to 2014-15, the rest being covered by central transfers and borrowings. In 2014-15, 24 percent of its disbursements came from its own tax and non-tax revenues, 39 percent of the total disbursements came from its share of central taxes and 20 percent from the central grants, with the share of loans from the central government being 8 percent. The rest had to be raised from the market as loans. Table 2.17 : Transfer of Resources from Central Government (Rs crore) 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Aggregate Disbursements

50705

60182

69207

80405

94698

120685

Share in Central Tax

23978

27935

31900

34829

36963

50748

Grants-in-Aid from Centre

9699

9883

10278

12584

19146

18171

Gross Loans from Centre

782

827

508

550

718

2789

34458

38645

42686

47963

56827

71707

316

361

23

-11

85

2070

Net Transfer of Resources

33993

38179

42202

47402

56194

70988

Own Tax + Non-tax Revenue

10855

13502

17388

21505

22309

34271

Amounts

Gross transfer of Resources Net Loans from Centre

Source : State Government Budgets

49

2.7 Resource Management The revenue receipts of the state government come from both tax and non-tax sources. The tax revenue consists of its own tax revenues and its share in the divisible pool of taxes and duties of the central government. Similarly, the non-tax revenues consist of the state government’s own non-tax revenue, as well as central grants for plan and non-plan purposes. The own tax revenues of the state government include taxes on property and capital transactions, taxes on commodities and services, and taxes on agricultural income, the second component being by far the most important source. The non-tax revenues of the state government are collected under general, social and economic services. These include interest receipts from loans and advances to various government companies, public sector and quasi-commercial undertakings and other bodies, dividends and profit from them, interest earned on the investment of cash balances of the state government, and receipts from various services classified under general, social and economic services. Economic services contribute more significantly to the non-tax revenues than the other services. The share of central taxes consists mainly of the shares of income tax, union excise duty, customs duty, service tax and wealth tax, which are collected by the central government, but the proceeds of which are shared with the state governments, under recommendations of the Finance Commissions, constituted every five years. The grants from the central government are for both plan and non-plan purposes. Within the plan grants, there are separate grants for the state government's own plan schemes, Central Plan Schemes and also for Centrally Sponsored Schemes. The non-plan grants include the statutory grants as well as relief on natural calamities and other public purpose grants. Table 2.18 shows the revenue receipts of the state government from 2010-11 to 2015-16. From this table, it can be seen that, during all these years, more than 70 percent of the total revenue receipts of the state government came from the central government by way of state’s share of divisible pool of central taxes and grants-in-aid. In 2010-11, this constituted as much as 75 percent of total revenue of the state government, which marginally decreased to 72 percent in 2014-15. Of this 72 percent, 48 percent was state’s share of central taxes and 24 percent was central grants. State government’s own resources contributed only 28 percent of total revenue – 26 percent from tax revenues and only 2 percent from non-tax revenues. The state government's own tax revenues have grown from Rs. 9870 crore in 2010-11 to Rs. 20,751 crore in 2014-15, while the non-tax revenues have grown from Rs. 986 crore to Rs. 1558 crore during the same period. However, it should be remembered that the non-tax revenue includes some special transfers. For example, in 2011-12, the non-tax revenue was decreased, due to recovery of Rs 385 crore excess debt relief paid by the central government during 201011. In 2012-13, the non-tax revenue increased by Rs 151 crore due to receipts pertaining to 'Contributions and Recoveries from Pension etc.', as transfer from the Government of Jharkhand. This transfer was on account of the reimbursement of pension dues pertaining to the period prior to division of the erstwhile composite state of Bihar. In 2013-14 again, the non-tax revenue 50

increased by Rs 400 crore on this account. There was no recovery on this account in 2014-15, hence non-tax revenue could not register any growth. The total revenue of the state government increased from Rs. 44,532 crore in 2010-11 to Rs 78,418 crore in 2014-15, growing annually at 15 percent. Compared to this, state government's own revenue receipts increased during the period at a higher annual rate of almost 20 percent and its tax revenues also grew at a slightly higher annual rate of above 20 percent. During this period, the grants from the central government increased at a rate of 17 percent only. However, consequent upon the abolition of direct transfers of grants by the central government to the state implementing agencies in respect of the Centrally Sponsored Schemes from the current fiscal, all these grants are now routed through the state government budget. This change has significantly increased the volume of central grants received by the state government. In 2014-15, such grants amounted to Rs. 19,146 crore, compared to Rs 12,584 during 2013-14. In 2015-16, however, it is expected to dip to Rs. 18,171 crore as per the budget estimates. Due to the higher growth of state government's own revenues compared to the growth of all other components of state government revenues, the share of the state government's own revenue in total revenues has also increased from 24 percent in 2010-11 to 28 percent in 2014-15. This share is further expected to improve to 33 percent in 2015-16. Table 2.18 : Revenue Receipts (Rs. crore) Sources of Revenue

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

State’s Own Revenue

10855

13502

17388

21505

22309

34271

9870

12612

16253

19961

20751

30875

986

890

1135

1545

1558

3396

33677

37818

42178

47413

56109

68918

23978

27935

31900

34829

36963

50748

9699

9883

10278

12584

19146

18171

III. Total Revenue Receipts

44532

51320

59567

68919

78418

103189

State’s Own Revenue as % of Total Receipts

24.4

26.3

29.2

31.2

28.4

33.2

I.

a) Tax Revenue b) Non-Tax Revenue II. Receipts from Centre a) Share of Divisible Taxes b) Grants-in-aid

Source : State Government Budgets

Among the direct taxes of the state government are included Stamp and Registration Fees, Taxes on Vehicles, Taxes and Duties on Electricity, Land Revenue, and Taxes on Agricultural Income, the last one being rather insignificant. Among the indirect taxes, which are far more important than the direct taxes, there are Taxes on Sales/Trade, State Excise, Taxes on Goods and Passengers, and Other Taxes and Duties on Commodities and Services. The details of receipts from these tax heads from 2010-11 to 2015-16 are shown in Table 2.19. 51

Table 2.19 : Tax Revenues under Different Heads (Rs. crore) Sources of Revenue

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Taxes on Sales/ Trade

4557

7476

8671

8453

8607

16025

Taxes on Goods and Passengers

2006

828

1932

4349

4451

5147

State Excise

1523

1981

2430

3168

3217

4000

Stamp and Registration Fees

1099

1480

2173

2712

2699

4000

Taxes on Vehicles

455

569

673

837

964

1200

Land Revenue

139

167

205

202

277

300

Taxes & Duties on Electricity

65

55

103

141

375

103

Other Taxes/ Duties on Commodities and Services

25

26

29

50

105

45

0

30

37

47

54

55

9870

12612

16253

19961

20750

30875

Others Total

Source : State Government Budgets

An analysis of the tax receipts of the state government reveals that its major sources are Sales Tax (VAT), Stamp and Registration Fees, State Excise Duty, Taxes on Goods and Passengers and Taxes on Vehicles. These five taxes together account for 93 percent of the state government’s total tax receipts. In 2014-15, Sales Tax alone (Rs. 8607 crore) comprised 42 percent of the total tax receipts. This was followed by Taxes on Goods and Passengers (22 percent), State Excise Duty (16 percent), Stamp and Registration Fees (13 percent) and Taxes on Vehicles (5 percent). These taxes are highly buoyant, their yields increasing steadily with the increase in GSDP. There has not been any significant change in the composition of tax revenues of the state government over the past few years. The composition of the state government's tax revenue is shown in Table 2.20 and their growth rates in Table 2.21. Table 2.20 : Composition of Tax Revenues 2010-11

2011-12

2012-13

2014-15

2015-16

2015-16 (BE)

Taxes on Sales/ Trade

46.2

59.4

53.5

42.4

41.6

52.0

Taxes on Goods and Passengers

20.3

6.6

11.9

21.8

21.5

16.7

State Excise

15.4

15.7

15.0

15.9

15.5

13.0

Stamp and Registration Fees

11.1

11.8

13.4

13.6

13.0

13.0

Taxes on Vehicles

4.6

4.5

4.2

4.2

4.7

3.9

Land Revenue

1.4

1.3

1.3

1.0

1.3

1.0

Taxes & Duties on Electricity

0.7

0.4

0.6

0.7

1.8

0.3

Sources of Revenue

Total

100.0

100.0

100.0

Source : State Government Budgets

52

100.0

100.0

100.0

During the period 2010-11 to 2015-16, the maximum annual growth rate has been registered by Taxes on Goods and Passengers (35 percent), followed by Stamp and Registration Fees (27 percent), Sales Tax (21 percent), Taxes on Vehicles (21 percent) and State Excise (21 percent). In 2014-15, Sales Tax has shown a low growth of 1.8 percent over the previous year; but in the current fiscal (2015-16), it is estimated to make up for this low growth and grow by nearly 86 percent. It should be noted here that the yearly growth rates of most of the taxes show wide variation. Table 2.21 : Growth Rates of Tax Revenue Percentage Growth over Previous Year Sources of Revenue

CAGR (2010-16)

2011-12

2012-13

2013-14

2014-15

2015-16 BE

Taxes on Sales, Trade etc.

64.1

16.0

-2.5

1.8

86.2

21.0

Taxes on Goods and Passengers

-58.7

133.3

125.1

2.4

15.6

35.2

State Excise

30.0

22.7

30.4

1.5

24.4

20.6

Stamp and Registration Fees

34.7

46.8

24.8

-0.5

48.2

27.4

Taxes on Vehicles

25.0

18.3

24.4

15.1

24.5

20.9

Land Revenue

20.5

22.7

-1.8

37.4

8.3

16.5

Taxes & Duties on Electricity

-16.1

87.5

37.8

165.2

-72.6

27.0

3.6

13.6

73.9

108.9

-56.9

25.2

27.8

28.9

22.8

4.0

48.8

23.5

Other Taxes and Duties Total

From Table 2.22, one can see that the direct taxes contributed only 18 percent of the total own tax revenue of the state government, indirect taxes contributing the rest 82 percent in 2014-15. This distribution was 80:20 in the previous years. This indicates that the process of fiscal reforms of the state government is yet to be reflected in the structure of its tax administration. It also defies the trend noticed in the structure of central tax receipts, which has shifted very significantly in favour of direct taxes after the economic reforms were introduced. But all the states show this skewed structure, as the high yielding direct taxes like income tax or corporation tax are administered by the central government. Table 2.22 : Share of Direct and Indirect Taxes Source

2010-11 2010-11 2011-12 2012-13 2014-15

2015-16 (BE)

Share of Indirect Taxes in State’s Own Tax Revenue (%)

82

82

80

80

78

82

Share of Direct Taxes in State’s Own Tax Revenue (%)

18

18

20

20

22

18

Total

100

100

100

100

100

100

53

Table 2.23 shows the major non-tax revenues of the state government, while its composition and growth rates are presented in Tables 2.24 and 2.25, respectively. The most important source of non-tax revenues has always been the royalty from mines and minerals, classified as receipts from ‘Non-Ferrous Mining and Metallurgical Industries’, followed by interest receipts. The minor minerals available in the state are brick earth, stones, limestone, sand, etc. The receipts against this element of non-tax revenues have always been more than budget estimates and it has grown annually at 21 percent, during the period 2010-11 to 2014-15. In comparison, the growth of interest receipts, the second most important element of its non-tax revenues, has shown wide fluctuations during the period. These fluctuations arise from the nature of the interest receipts. Till 2007-08, these two heads together had accounted for more than 60 percent of the total nontax revenues of the state government; but due to the receipts of substantial debt relief from the central government, which is included under the head ‘Miscellaneous General Services’, the combined share of these two sources came down to 40 percent in 2009-10. However, it rose to 65 percent after the withdrawal of the debt relief from the next year. In 2011-12, the share of these two heads was abnormally high due to the recovery of the excess amount of debt-relief Rs 385 crore paid in 2010-11. In 2013-14, the total receipts from these two sources of non-tax revenues increased to Rs. 838 crore, 24 percent higher than in the previous year. In 2014-15, there was hardly any receipt (Rs 1.58 crore) on this account, and the combined share of the above two heads had fallen to 54 percent of total non-tax revenues. The budget estimates for 2015-16 also includes Rs 1600 crore against ‘Contributions and Recoveries on account of Pension’ due from the Government of Jharkhand. This amount relates to the pensioners-on-roll from the pre-reorganisation period, which was budgeted but never realized till 2012-13. Table 2.23 : Major Non-Tax Revenues (Rs. crore) Sources of Revenue

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Non-Ferrous Mining and Metallurgical Industries

406

443

511

569

880

1000

Interest Receipts

238

574

167

269

345

312

0

-384

22

0

2

0

Other Administrative Services

20

11

10

10

22

51

Police

12

9

25

27

30

29

5

3

3

1

1

30

Education, Sports, Arts and Culture

34

7

8

14

11

15

Roads and Bridges

40

60

33

41

55

64

Medical and Public Health

15

24

41

30

30

32

22

30

21

28

29

29

2

1

1

-1

0

1

Others

192

111

294

555

154

1832

Total

986

890

1135

1545

1558

3396

Miscellaneous General Services

Major Irrigation

Other Rural Development Programmes Social Security and Welfare

Source : State Government Budgets

54

As regards the share of interest receipts, the second largest contributor to non-tax revenue, it had increased to 24 percent in 2010-11 from 21 in 2009-10. In 2011-12, there was substantially higher collections under this head, due to contra-adjustment of Rs 268 crore on account of interest on loans given to the Bihar State Electricity Board, against its outstanding dues payable by the Department of Water Resources. The interest receipts had registered a sharp decline in 2012-13 due to less interest received from the investment of surplus cash balances of the state government. However, receipts on this account had increased from Rs 128 crore in 2012-13 to Rs 312 crore in 2014-15; consequently, the total interest receipts had also increased to Rs 345 crore in 2014-15. The non-tax revenues of the state government have been growing at an annual rate of 12 percent during 2010-11 to 2014-15, with considerable year-to-year variations. Table 2.24 : Composition of Non-Tax Revenues (Percentages) 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Non-Ferrous Mining and Metallurgical Industries

41.2

49.8

45.0

36.8

56.5

29.4

Interest Receipts

24.1

64.5

14.7

17.4

22.1

9.2

Miscellaneous General Services

0.0

-43.1

1.9

0.0

0.1

0.0

Other Administrative Services

2.0

1.3

0.9

0.7

1.4

1.5

Other non-Tax Revenues

32.6

27.6

37.4

45.0

19.9

59.8

Total

100.0

100.0

100.0

100.0

100.0

100.0

Revenue Sources

Source : State Government Budgets Table 2.25 : Growth Rates of Non-Tax Revenues Yearly Growth Rates Revenue Sources Non-Ferrous Mining and Metallurgical Industries

2010-11

2011-12

2012-13

2013-14

2014-15

CAGR 2015-16 (2010-16) (BE)

26.8

9.2

15.3

11.4

54.6

13.7

21.0

Interest Receipts

-32.6

141.1

-70.9

61.2

27.9

-9.5

0.9

Miscellaneous General Services

-100

-

-106

-99

611

-85

-

112.1

-42.5

-12.9

1.7

113.9

135.4

20.9

71.1

-42.3

164.7

89.0

-72.3

1089.8

25.8

-41.0

-9.7

27.6

36.1

0.9

118.0

16.6

Other Administrative Services Other non-Tax Revenues Total

Note : A dash indicates that the growth rate is not computed, because of very old amount. Source : State Government Budgets

Comparing the budget estimates of revenues with the actual collections for 2014-15 (Table 2.26), it is seen that there was a shortfall by about Rs 1524 crore (49 percent), against the budget estimates in respect of non-tax revenues, while in respect of tax revenues there was a shortfall of only Rs 4912 crore (19 percent). The shortfall in non-tax revenue was almost entirely due to the 55

non-realisation of dues from the Government of Jharkhand (classified among ‘Others’). The major shortfalls in tax revenues were in respect of Taxes on Sales and Trade (Rs 4213 crore), Stamp and Registration duty (Rs 901 crore) and State Excise (Rs 483 crore). There was a surplus collection of Rs 334 crore against Taxes on Goods and Passengers. Thus, the overall realisation of revenues, tax and non-tax, fall short of the target by a huge amount of Rs 6436 crore (28 percent). Table 2.26 : Variation between the Estimated and Actual Realisation of Tax and Non-Tax Revenue (2014-15) (Rs. crore) Variance % Variation Budget Actual Revenue Sources (Excess+/ Excess (+), Estimate Receipts Shortfall -) Shortfall (-) Own Tax Revenue Taxes on Sales, Trade

12820

8607

(-) 4213

(-) 32.9

Taxes on Goods and Passengers

4118

4451

(+) 334

(+) -8.1

State Excise

3700

3217

(-) 483

(-) 13.1

Stamp and Registration Fees

3600

2699

(-) 901

(-) 25.0

Taxes on Vehicles

1000

964

(-) 36

(-) 3.6

250

277

(+) 27

(+) 10.9

Taxes & Duties on Electricity

83

375

(+) 292

(+) 353.2

Other Taxes and Duties on Commodities and Services

49

105

(+) 57

(+) 116.8

25663

20751

(-) 4912

(-) 19.1

Non-Ferrous Mining and Metallurgical Industries

750

880

(+) 130

(+) 17.3

Interest Receipts

202

345

(+) 143

(+) 70.5

1

2

(+) 1

(+) 118.8

252

22

(-) 230

(-) 91.3

Police

70

30

(-) 40

(-) 57.7

Major Irrigation

26

1

(-) 25

(-) 95.3

8

11

(+) 3

(+) 33.2

Roads and Bridges

64

55

(-) 10

(-) 14.9

Medical and Public Health

43

30

(-) 13

(-) 30.1

Other Rural Development Programmes

22

29

(+) 7

(+) 32.5

1

0

(-) 1

(-) 97.8

Others

1643

154

(-) 1489

(-) 90.6

Total

3082

1558

(-) 1524

(-) 49.4

28745

22309

(-) 6436

(-) 22.4

Land Revenue

Total Own Non Tax Revenue

Miscellaneous General Services Other Administrative Services

Education, Sports, Arts and Culture

Social Security and Welfare

Grant Total (Tax + Non-Tax)

Source : State Government Budgets

56

The cost of collection of major taxes is shown in Table 2.27. It can be seen from the table that this cost is relatively higher for taxes on vehicles. Secondly, except for taxes on vehicles, the cost of collection of all major taxes as a percentage of total taxes collected has been decreasing in recent years, as a result of the modernization of infrastructure and introduction of technology. Table 2.27 : Cost of Collection of Taxes

Year

Collection (Rs. crore)

Expenditure Cost as on Percentage collection of (Rs. crore) Collection

Collection (Rs. crore)

Taxes on sales / trade, etc

Expenditure Cost as on Percentage collection of (Rs. crore) Collection State excise

2010-11

4557

56

1.2

1523

38

2.5

2011-12

7476

65

0.9

1981

41

2.1

2012-13

8671

78

0.9

2430

43

1.8

2013-14

8453

70

0.8

3168

45

1.4

2014-15

8607

96

1.1

3217

50

1.6

16025

131

0.8

4000

72

1.8

2015-16 BE

Stamp duty and registration fee

Taxes on Vehicles

2010-11

1099

47

4.2

455

17

3.7

2011-12

1480

43

2.9

569

22

3.9

2012-13

2173

45

2.1

673

25

3.8

2013-14

2712

55

2.0

837

30

3.6

2014-15

2699

52

1.9

964

38

4.0

2015-16 BE

4000

73

1.8

1200

53

4.4

Source : State Government Budgets

Table 2.28 shows the state government's own tax and non-tax revenues as percentage of GSDP, which is a measure of its capacity to raise resources. The ratio of own tax revenues to the GSDP has risen slowly from 4.8 percent in 2010-11 to 6.5 percent in the budget estimates of 2015-16. This ratio is rather low, compared to other states. There has been some improvement in this ratio till 2013-14 when it rose to 5.8 percent before declining to only 5.2 percent in 2014-15. The total tax and non-tax revenues, as percentage of the GSDP, which was just 5.3 percent in 2010-11, is estimated to rise to 7.2 percent in 2015-16. The total revenue, including central transfers and grants, constituted 21.9 percent of the GSDP in 2010-11 which fell to 19.5 percent in 2014-15. It has been projected to rise again to 21.8 percent in 2015-16. While the ratio of own tax to GSDP in Bihar is one of the lowest in the country, the ratio between the total revenues and GSDP is quite high, due to the high volumes of central transfers to the state government.

57

Table 2.28 : Tax and Non-tax Revenue as Percentage of GSDP

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Own Tax Revenue as % of GSDP

4.8

5.2

5.5

5.8

5.2

6.5

Own Non-Tax Revenue as % of GSDP

0.5

0.4

0.4

0.4

0.4

0.7

Total Revenue as % of GSDP

21.9

21.1

20.3

20.1

19.5

21.8

Buoyancy of Total Revenue w.r.t. GSDP (Ratio)

1.0

0.8

0.8

0.9

0.8

1.8

Buoyancy of State’s Own Taxes w.r.t. GSDP(Ratio)

0.9

1.4

1.4

1.3

0.2

2.7

Indicators

Source : State Government Budgets

Table 2.29 gives the buoyancy ratios in respect of the state government's major tax and non-tax revenues with respect to GSDP. From this table, it is noted that, in 2015-16, the Sales Tax and Stamp and Registration Fees are likely to be more buoyant than other tax heads of the state government, as in other years. Given the significant growth rate of GSDP in recent years, these taxes have a huge potential for resource mobilisation. None of the major taxes remained buoyant in 2014-15, which explains why there was a shortfall in the collection of tax revenues. Among the major sources of non-tax revenues, interest receipt shows negative buoyancy in 2015-16, while receipts from non-ferrous metals etc. was buoyant in 2014-15, but not so in 2015-16. Table 2.29 : Buoyancy of Important Tax and Non-Tax Revenue Sources

Revenue Sources

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Taxes on Sales, Trade

0.7

3.3

0.8

-0.1

0.1

4.8

Stamp and Registration Fees

0.4

1.8

2.3

1.5

0.0

2.7

Taxes on Goods and Passengers

1.0

-3.0

6.4

7.3

0.1

0.9

State Excise

1.6

1.5

1.1

1.8

0.1

1.4

Taxes on Vehicles

1.3

1.3

0.9

1.4

0.9

1.4

Land Revenue

0.5

1.0

1.1

-0.1

2.2

0.5

-0.1

-0.8

4.2

2.2

9.7

-4.1

Total Tax Revenue

1.2

1.0

0.9

0.8

0.3

2.3

Non Ferrous Minerals

1.1

0.5

0.7

0.7

3.2

0.8

Interest Receipts

-1.3

7.2

-3.4

3.6

1.6

-0.5

Total Non Tax Revenue

-1.6

-0.5

1.3

2.1

0.1

6.6

Taxes & Duties on Electricity

Source : State Government Budgets

58

Table 2.30 shows the trend of revenues from grants from the central government. The total grants received by the state government was Rs 19,146 crore in 2014-15, as against Rs 9699 crore received in 2010-11. The total grants have increased twice during the five years 2010-11 to 2014-15. In 2014-15, 78 percent of total grants (50 percent in 2013-14) were received in respect of State Plan Schemes, after abolition of the direct off-budget transfers in respect of Centrally Sponsored Schemes which are now entirely routed through the budget. Other Centrally Sponsored Schemes accounted for only 4 percent of the total grants. The non-plan grants, however, would get reduced to Rs 323 crore in 2015-16. Table 2.30 : Grants and Contributions from Central Government (Rs. crore) 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

5457

5065

5052

6238

14936

15086

Grants for Central Plan Schemes

176

96

36

137

117

136

Grants for Centrally Sponsored Schemes

2141

2159

2778

2921

822

0

Non-plan Grants

1925

2563

2413

3288

3271

2948

Total Grants

9699

9883

10278

12584

19146

18171

Sources Grants for State Plan Schemes

Source : State Government Budgets

2.8 Performance of Tax Departments Commercial Taxes Department The Commercial Taxes Department collects taxes under eight acts — (i) Bihar Value Added Tax Act, 2005 (VAT); (ii) Bihar Tax on Entry of Goods into Local Area for Consumption, Use or Sale therein Act, 1993 (ET); (iii) Central Sales Tax Act, 1956 (CST); (iv) Bihar Electricity Duty Act, 1948 (ED); (v) Bihar Entertainment Tax Act, 1948 (ENT); (vi) Bihar Taxation On Luxuries in Hotel Tax Act, 1988 (HLT); (vii) Bihar Advertisement Tax Act, 1981 (ADV) and (viii) Bihar Tax on Professions, Trades, Calling and Employment Act, 2011 (PT). Table 2.31 shows the taxes collected during 2010-11 to 2014-15 and till September for the current fiscal (2015-16). The VAT that had replaced the Sales Tax is the major contributor and accounts for about 64 percent of the total commercial tax collections by the state government in 2014-15, compared to 65 percent in the previous year. Besides VAT, Entry Tax is the only other major source of revenue for the Commercial Tax Department and contributed 32 percent to its total collections in 2014-15. These two taxes together, thus, accounted for 96 percent of the Department’s total collections. The trend of collections tax-act-wise and tax-circle-wise is presented in Table A2.1 (Appendix) for 2013-14 and 2014-15, and Table A 2.2 (Appendix) for 2015-16 (up to September). Table 2.32 shows the year-wise shares of commercial taxes in the state government’s revenue. The ratio was 16 percent in 2010-11, but had since increased significantly to 19 percent in 2013-14 before declining to 18 percent in 2014-15. However, their share in the total own taxes came down marginally from 68 percent in 2010-11 to 66 percent in 2014-15. 59

Table 2.31 : Act-wise Commercial Tax Collection (Rs. crore) Year

BST/ VAT

CST

ENT

2010-11

4532

59

16

2011-12

5668

75

2012-13

7391

2013-14

ED

ADV

HLT

ET

PT

Total

65

1

5

2008

0

6685

25

55

0

7

2591

36

8458

74

28

102

1

8

3268

40

10911

8546

83

39

141

1

10

4283

53

13156

2014-15

8796

71

46

373

1

11

4406

55

13758

2015-16 (Up to Sep., 15)

4362

25

23

81

0

3

2930

4

7429

Source : Department of Commercial Taxes, GOB

Table 2.32 : Share of Commercial Taxes in Total Revenue Amounts

2010-11

2011-12

2012-13

2013-14

2014-15

44532

51320

59567

68919

78418

State’s Own Tax Revenues (Rs. crore)

9870

12612

16253

19961

20751

Revenue from Commercial Taxes (Rs. crore)

6685

8458

10911

13156

13758

19.1

17.5

65.9

66.3

Total Revenue of State (Rs. crore)

Percentage Share of Commercial Taxes in 15.0 16.5 18.3 Total Revenue (%) Percentage Share of Commercial Taxes in 67.7 67.1 67.1 State’s Own Taxes (%) Source : Department of Commercial Taxes, GOB

The commodity-wise collection of sales tax is depicted in Table 2.33, from which it can be seen that Petro-products have always been the single largest contributor to sales tax; it contributed Rs. 3284 crore in 2014-15, which was around 37 percent of the total collection of sales tax compared to 24 percent a year ago. Its contribution is more than three times that of the second major contributor, viz., Cement (Rs 920 crore) which yielded nearly the same amount as in last year (Rs 929 crore). Other important contributors, in the order of their contributions, are —Electrical Goods, Indian Made Foreign Liquor (IMFL), Unregistered Dealers &Works Contracts, Crude Oil, Automobiles, FMCG, Drugs and Medicines, Two/Three-Wheelers,Iron and Steel, Country Liquor, Works Contracts, Coal, Fertiliser and Insecticides, Consumer Durables, etc. While some of these, like Electrical Goods, Country Liquor, Two/Three Wheelers have registered substantial growth in 2014-15, others have registered only modest growth below 10 percent. Coal and Crude Oil have registered substantial negative growth during the year. Collections from Petroleum Products grew by only 4 percent.

60

Table 2.33 : Comparative Commodity-wise Collection of Sales Tax (Rs. crore) Sl. No.

Collection (in crore)

Rate of Growth (%)

Name of commodity 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15

1 2 3

Advertisement Tax Asbestos Auto parts

0 16 29

0 20 46

1 28 57

0 27 72

1 32 74

4 5 6 7 8 9 10 11 12 13 14

Battery Beverages Bhujia Bicycle Biscuits Bricks Cement Coal Computer Consumer Durables Country Liquor

50 32 1 14 58 11 477 141 25 77 125

57 41 2 18 82 17 556 195 44 94 143

73 72 5 23 112 29 800 282 64 124 158

102 72 8 27 140 34 929 378 60 145 203

96 129 9 23 126 36 920 223 68 173 266

1

1

2

3

3

16 17 18 19 20 21 22 23 24 25 26

Crockery, Cutlery, Glassware & Ceramic ware Crude Oil Diesel Oil Drugs and Medicines Dry Fruits Edible Oil Electrical Goods Electricity Duty Electronic Goods Engine & Motors Entertainment Tax Ethanol

213 4 208 0 22 166 2 35 14 11 17

249 4 295 0 35 205 1 50 19 17 5

315 1 357 2 66 341 0 80 24 16 9

817 0 408 3 95 546 1 100 25 18 7

635 2 459 3 107 787 1 106 24 10 7

27 28 29 30 31 32

Fast Food & Cooked Food Fertiliser& Insecticides Fire Work FMCG Foodgrains Footwear

63 90 1 237 78 13

90 144 1 324 90 18

120 198 2 414 93 27

139 171 4 492 174 37

138 186 6 523 89 42

304

423

515

491

528

15 47 5 1 10 0 1 35 340 126

21 74 7 1 15 0 1 41 416 144

32 100 9 1 20 0 1 59 585 237

41 99 10 1 29 0 1 73 747 281

42 100 11 1 34 1 2 80 780 293

5 3

10 2

15 2

13 2

14 2

15

34 35 36 37 38 39 40 41 42 43

Four-Wheelers & Chassis of Automobile Furniture Ghee & Vanaspati Glasses Gun & Rifles Hardware Hawai Chappals Hide & Skin Hosiery And Readymade IMFL Iron & Steel

44 45

Jewellery Kerosene

33

61

-

16.2 10.7

25.1 60.9

84.0 36.0 22.7

21.2 47.4

15.4 27.1 95.7 23.7 41.2 56.5 16.6 38.1 75.6 22.9 14.3

26.5 75.4 207.3 28.5 35.9 72.9 43.8 44.8 46.4 31.3 10.2

40.3 -0.7 64.2 17.9 25.7 14.5 16.1 33.8 -7.1 17.1 28.8

-5.4 80.1 12.6 -14.7 -10.2 7.8 -0.9 -40.9 13.5 19.6 31.0

7.8 16.8 21.1 41.7

46.9 26.7 -68.9 21.1 261.0 86.9 66.4 -66.6 59.6 27.7 -5.0 71.6

38.5 159.4 -69.8 14.1 94.2 43.6 60.5 85.8 24.7 2.7 14.1 -15.4

23.0 -22.2 367.9 12.7 -5.4 12.7 44.0 -30.6 5.8 -5.4 -41.8 -10.9

33.9 37.2 117.2 27.9 3.5 54.3

15.3 -13.4 149.0 18.9 85.9 33.7

-0.3 8.9 48.2 6.2 -48.8 13.8

-4.7 28.9 -0.5 19.8 13.7 48.3 67.2 25.9 25.0 27.7 18.3

7.5 2.7 1.1 11.4 2.3 16.7 138.0 31.4 9.8 4.4 4.3

-14.3 7.0

8.2 4.7

44.8 -15.8 8.7 13.6 27.2 31.4 53.1 26.5 29.5 28.3 17.0 -

37.2 7.9 -13.1 -18.9 81.2 -12.9

60.9 23.1 -18.9 44.5 32.0 46.0 -69.5

126.0 10.2 12.7 28.1 31.3

41.8 59.4

-

36.8 15.6 35.1

22.5 16.4 52.3 53.4

39.1 38.0 57.3 42.2 13.6 44.0

28.1 33.9 35.6

-22.7 19.4 22.1 13.9

21.8 51.5 34.2 30.5 12.6 32.1 47.6 77.5 41.7 40.8 65.2

55.1 -35.3

105.9 -23.5

52.4 10.3

28.2 -

-

-20.0 -4.0 26.4

9.4 21.8 3.0

Sl. No. 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92

Collection (in crore)

Rate of Growth (%)

Name of commodity 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 Kirana LPG Lubricants Luxury and Hotel Marble and Granites Matches Moulded Luggage Not Available Not Tagged Not Tagged with Any Commodity Others @ 12.5% Others @ 13.5% Others @ 4% Others @ 5% Others (Tax Free) Paints Pan Masala Paper Petro Products Petrol Plastic Goods Plyboard Plywood Processed Vegetable & Food Professional Tax Sand Sanitary Fittings & Tiles Sewing Machine Spectacles Sport Goods Staple Yarn Stationery Stone Chips & Ballast Tea & Coffee Telephone Timber Tobacco Tools Tractors Transporter Two &Three-Wheelers Tyres & Tubes Unregistered Dealer Others Unregistered Dealer Works Contractor Utensils Watch & Clock Works Contract &TDS Total

14 2 35 5 6 1 4 0 0

19 5 42 7 9 0 6 0 0

31 5 47 8 18 0 7 0 0

50 6 55 9 27 1 9 0 1

52 7 56 9 35 1 9 0 3

0

1

8

20

15

18

27

6

8

6 34 24 18 2008 0 16 2 4

9 46 29 19 2528 0 22 3 5

29 16 7 8 13 61 57 23 2912 1 35 5 8

35 44 7 35 17 83 91 38 3152 1 49 11 9

14 85 7 51 15 89 76 39 3284 2 51 14 12

1

2

4

6

7

0 1 20 0 0 1 1 4 4 5 111 4 78 5 55 0 173 64 188

22 1 24 0 0 1 2 6 9 7 105 4 88 6 79 0 218 84 235

37 8 34 0 0 1 2 8 7 8 100 11 151 10 106 0 272 114 392

51 10 46 0 1 1 3 10 10 12 113 17 158 12 126 0 336 114 344

52 26 50 1 1 1 3 11 14 13 141 22 167 10 125 0 378 120 476

392

413

490

659

2 7 200 6645

3 9 324 8446

4 11 369 10907

7 13 334 13156

10.6 23.5 10.8 35.6 57.5

35.5 97.5 19.1 24.4 43.8 -27.6 41.3 0

-

-

60.2 -0.2 10.6 11.4 103.2 -7.9 15.0 0 183.3

-97.1

137.1

1133.7

9.8

54.0

6.0

21.4

-58.9

88.9

39.3

-9.2

1.0

0.0

50.6 41.0 8.0 9.5 21.2

45.6 37.0 23.0 11.1 25.9

24.0 36.6 59.9 61.9 8.3 101.2 42.1 103.4 12.7

-12.2 6.9 -16.8 2.9 4.2 23.8 3.5 23.7 29.4

45.3 0

4.2 21.8 3.4 2.5 30.6 -7.9 -1.0 0 213.0

139.1

-22.8

48.6 -3.2 20.2

33.0 78.8 45.6

53.9 30.8 94.3 20.3 15.2 296.1 60.1 57.3 55.5

-1.1

66.5

160.2

42.6

21.9

37.8 31.6 35.7 70.6 61.5 23.1 26.0 31.6 42.2 47.9 12.8 58.7 4.7 22.9 18.5 -26.7 23.4 0.1 -12.1

3.0 154.6 8.8 21.8 36.4 7.8 -4.0 9.8 42.1 12.0 24.6 27.0 5.7 -19.0 -0.7 152.4 12.5 5.4 38.1

-

-

-

-

23.7 13.1 7.7

25.6 30.0 24.5

70.0 605.4 40.1 42.2 15.5 32.3 24.3 34.8 -27.6 12.2 -4.9 150.0 72.3 58.0 34.9 1728.8 25.1 35.8 67.1

750

21.3

5.4

18.5

34.7

13.8

4 12 248 13750

13.0 37.0 33.5 20.1

18.1 30.4 62.0 27.1

37.6 21.4 13.8 29.1

89.4 15.6 -9.5 20.6

-37.9 -4.1 -25.6 4.5

18.1 21.8 2.8 -1.3 6.6 -25.7 20.5 36.9 -4.2 3.6 -

19.4 -31.8 38.6 39.2 135.5 33.2 -5.4 19.5 12.6 26.8 43.4 -

Source : Department of Commercial Taxes, GOB

62

59.7 20.3 16.7 16.7 45.8 151.6 22.3 0 1888.0

Department of Registration, Excise and Prohibition The Department of Registration, Excise and Prohibition is responsible for the collection of excise duty as well as the Stamp Duty and Registration Fees. In terms of revenue collection, it is now second only to the Commercial Taxes Department. Table 2.34 shows the collections of State Excise Duty during the last five years. More than 96 percent of total state excise duty collections were contributed by country spirit and foreign liquors/spirits during 2014-15; these two together yielded Rs 3102 crore, out of the total excise collections of Rs 3216 crore. During 2015-16, these two are again budgeted to yield Rs 3981 crore, out of the total excise duty collection of Rs. 4001 crore. Table 2.34 : Collections of State Excise Duty (Rs. crore) Sources of Revenue Country Spirits

2010-11 2011-12 2012-13 2013-14 2014-15

2015-16 (BE)

489

624

777

1223

1325

2159

Country Fermented Liquors

0

0

0

5

24

0

Malt Liquor

4

5

6

9

8

0

Liquor

0

0

0

0

0

0

990

1294

1579

1854

1777

1837

1

0

0

0

1

1

1

1

1

4

1

5

6

7

6

2

0

Fines and confiscations

17

19

14

17

27

4

Other Receipts

22

32

47

52

47

0

Deduct-Refunds

-5

-1

0

0

0

0

1523

1981

2430

3168

3216

4001

Foreign Liquors and Spirits Commercial & denatured Spirit & Medicated wines Medicinal and toilet preparations containing alcohol, opium etc. Opium, Hemp & other drugs

Total

0

Source : Department of Registration, Excise and Prohibition, GOB

Table 2.35 shows the details of revenue from Stamp Duties and Registration Fees during the period 2010-11 to 2014-15. The trend of the data reveals that there has been a steady increase in the collection of Stamp Duty from Rs. 956 crore in 2010-11 to Rs. 2167 crore in 2014-15, at an annual growth rate of 23 percent. But the total collections in 2014-15 had fallen by 4 percent compared to 2013-14, on account of a fall in respect of the the most important component – non-judicial stamp duty.

63

Table 2.35 : Revenue from Stamp Duty and Registration Fees

(Rs. crore) Source of Revenue

2010-11

2011-12

2012-13

2013-14

2014-15

From Printed Non-judicial stamps

334

356

369

320

330

From Non-judicial stamp duty deposited through Bank challan

571

809

1340

1856

1750

15

17

13

28

30

Non Judicial special adhesive stamp – through Franking machines

2

8

24

16

18

Revenue Stamps

2

2

3

2

2

Judicial Stamps

32

32

12

36

37

Sub-Total

956

1224

1761

2257

2167

Fees on registration of instruments

265

356

522

668

646

18

21

27

32

31

Landlord’s Process fee

3

3

4

4

4

Fee from searches of records & Non-Encumbrances

2

2

2

4

5

Fee from certified copies

2

2

3

2

2

290

384

558

711

688

1246

1608

2319

2968

2855

Non-Judicial adhesive stamps

Landlord’s Registration fee

Sub-Total Total

Source : Department of Registration, Excise and Prohibition, GOB

Table 2.36 shows the district-wise collection of revenue from Stamp Duties and Registration Fees till September, 2015 for the year 2015-16. Patna district expectedly contributes the maximum revenue (about 19 percent) from this source, more than three times the collection from Muzaffarpur, the next highest contributor. The pttern of contributions of the distrcts remains more or less the same as the last year. The details for the years 2013-14 and 2014-15 are shown in Table A 2.3 (Appendix).

64

Table 2.36 : District-wise Revenue from Stamp Duty and Registration Fees, 2015-16 (Upto Sept., 2015) (Rs. crore) District

No. of Registration Stamp Fee Documents Fees

Total Receipt

Target

% receipt Receipt per against Document target (Rs.) 0.73 73850 0.73 24809 0.74 26844 0.73 29218 0.85 30065 0.70 20439

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

39797 15583 14890 7817 14545 7887

66.71 9.57 9.68 5.84 11.07 4.1

227.19 29.09 30.29 17 32.66 12.02

293.9 38.66 39.97 22.84 43.73 16.12

401.34 52.67 53.69 31.19 51.64 23.02

Gaya Jehanabad Arwal Nawada Aurangabad

20268 5111 3084 10202 13342

17.32 3.28 1.76 5.41 7.86

52.42 12.03 5.2 16.17 23.5

69.74 15.31 6.96 21.58 31.36

87.43 18.92 8.69 26.59 44.49

0.80 0.81 0.80 0.81 0.70

34409 29955 22568 21153 23505

Saran Siwan Gopalganj

19816 18580 16290

12.3 11.85 10.44

34.85 33.94 30.47

47.15 45.79 40.91

56.23 57.26 51.13

0.84 0.80 0.80

23794 24645 25114

West Champaran East Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

24867 33939 30080 21810 4194 19232

10.59 20.3 22.71 12.32 1.76 13.95

30.44 57.72 65.13 34.7 5.18 40.61

41.03 78.02 87.84 47.02 6.94 54.56

51.13 92.03 120.66 59.82 9.72 68

0.80 0.85 0.73 0.79 0.71 0.80

16500 22988 29202 21559 16547 28369

Darbhanga Madhubani Samastipur

19810 26798 27441

12.53 12.51 13.21

37.03 34.94 36.62

49.56 47.45 49.83

65.44 58.77 63.92

0.76 0.81 0.78

25018 17707 18159

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

15037 4572 4448 5193 8209 7335

11.69 4.07 1.66 3.17 3.5 4.07

35.46 12.7 5.26 9.41 10.23 11.24

47.15 16.77 6.92 12.58 13.73 15.31

60.32 19.32 8.68 16.36 17.86 19.42

0.78 0.87 0.80 0.77 0.77 0.79

31356 36680 15558 24225 16726 20873

Bhagalpur Banka

13255 8848

11.83 4.96

35.22 12.31

47.05 17.27

64.91 23.52

0.72 0.73

35496 19519

Saharsha Supaul Madhepura

10216 12882 10345

5.92 5.69 5.89

18.29 16.13 16.8

24.21 21.82 22.69

33.24 24.52 26.57

0.73 0.89 0.85

23698 16938 21933

Purnea Kishanganj Araria Katihar

18046 14356 18777 21012

11.59 4.32 7.63 9.12

35.17 15.1 21.54 26.77

46.76 19.42 29.17 35.89

59.31 26.59 39.37 50.62

0.79 0.73 0.74 0.71

25912 13527 15535 17081

587914 392.18 1180.83 1573 2044.39 0.77 Source : Department of Registration, Excise and Prohibition, GOB

26756

Total

65

2.9 Expenditure Management The expenditure of the state government is classified under three major functional categories — General Services, Social Services and Economic Services. Apart from revenue expenditure and capital outlay on these services, the other areas of spending are repayment of loans and advances on the capital account, and grants to local bodies and autonomous institutions. The state government also gives loans for various purposes to its Public Sector Undertakings, Urban Local Bodies, Panchayati Raj Institutions, and to its own employees for various purposes. It is to be noted that while the repayments of principal amounts of loans are made from the capital account, interest payment is made from the revenue account, under the General Services. Table 2.37 presents the expenditure of the state government under various heads for the period 2010-11 to 2015-16 (BE). Tables 2.38 and 2.39 present the structure of the expenditure during this period. Finally, Table 2.40 presents the annual growth rates of various expenditure items. These four tables together give us an insight into the expenditure pattern of the state government. Table 2.37 : Expenditure from Consolidated Fund (Rs. crore) 2010-11

2011-12

2012-13

2014-15

2015-16

2015-16 (BE)

General Services

15287

17730

18645

22018

26408

30259

Social Services

15089

18729

23107

26395

31713

38084

7836

10038

12710

14060

14445

22861

3

3

4

4

4

5

Capital Outlay

9196

8852

9585

14001

18150

24853

Discharge of Public Debt

2190

2922

3070

3120

3609

3895

Loans and Advances by State

1103

1906

2086

807

369

729

50705

60180

69207

80405

94698

120685

Expenditure Heads

Economic Services Grants in Aid

Total

Source : State Government Budgets

Between 2005-06 and 2009-10, the share of capital outlay in the total expenditure of the state government had increased from 9 to 17 percent; thereafter, it has generally remained around that level. In 2015-16, it is projected to increase to more than 20 percent (Table 2.38). For the future growth of the state economy, the increase in capital outlay was a very positive development. The revenue expenditure on general services is of non-developmental nature and its share in total expenditure was 28 percent in 2014-15. In that year, the shares of other components were — social services (34 percent), economic services (15 percent), capital outlay (19 percent), discharge of public debt (4 percent) and loans and advances (0.4 percent). The sustained capital outlay at a high level over the entire period from 2010-11 to 2014-15 translated into an increase of nearly Rs 9000 crore over the period. Growing annually at 20 percent, it increased from Rs 9196 crore in 2010-11 to Rs. 18,150 crore in 2014-15. The increase in capital outlay has catapulted the economy of the state to one of the fastest growing among all major states in India. 66

The overall pattern shows some structural changes in the expenditure pattern over the years. While the share of expenditure on social services remains nearly the same, the expenditure pattern has shifted in favour of economic services and capital outlay at the expense of expenditure on general services, which is a welcome feature. It shows that funds used earlier for running the administration are now being released increasingly for expenditure on development and asset creation in the economy. Table 2.38 : Composition of Government Expenditure (Percentage) Expenditure Heads

2010-11 2011-12 2012-13 2013-14 2014-15

2015-16 (BE)

General Services

30.1

29.5

26.9

27.4

27.9

25.1

Social Services

29.8

31.1

33.4

32.8

33.5

31.6

Economic Services

15.5

16.7

18.4

17.5

15.3

18.9

Capital Outlay

18.1

14.7

13.8

17.4

19.2

20.6

Discharge of Public Debt

4.3

4.9

4.4

3.9

3.8

3.2

Loans and Advances

2.2

3.2

3.0

1.0

0.4

0.6

100.0

100.0

100.0

100.0

100.0

100.0

Total

Source : State Government Budgets Table 2.39 : Percentage Composition of Total Expenditure 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Revenue Account Non-Developmental Revenue Expenditure Developmental Revenue Expenditure Social Services

75.4

77.3

78.7

77.7

76.6

75.6

30.1

29.5

26.9

27.4

27.9

25.1

45.2

47.8

51.8

50.3

48.7

50.5

29.8

31.1

33.4

32.8

33.5

31.6

Economic Services

15.5

16.7

18.4

17.5

15.3

18.9

Capital Account

24.6

22.7

21.3

22.3

23.4

24.4

Non-Developmental Capital Expenditure

6.5

8.0

7.5

4.9

4.2

3.8

Discharge of Public Debt

4.3

4.9

4.4

3.9

3.8

3.2

Loans and Advances by State

2.2

3.2

3.0

1.0

0.4

0.6

Developmental Capital Expenditure

18.1

14.7

13.8

17.4

19.2

20.6

Capital Outlay

18.1

14.7

13.8

17.4

19.2

20.6

36.6

37.5

34.4

32.3

32.1

28.9

63.4

62.5

65.6

67.7

67.9

71.1

100.0

100.0

100.0

Expenditure Heads

Total Non- Developmental Expenditure Total Developmental Expenditure Total Expenditure

100.0 100.0 100.0 Source : State Government Budgets

67

Table 2.39 presents the composition of total expenditure of the state government in more detail. From this table, it is seen that social and economic services, essential for the development of the state, now account for the bulk of the expenditure, reflecting the state government’s commitment to improve the social sectors. The revenue and capital accounts claimed 76 and 24 percent of the total expenditure (2014-15). About 68 percent of the total expenditure was of developmental nature and 32 percent non-developmental in 2014-15. In 2010-11, these shares were 63 and 37 percent respectively. As observed earlier, the state government has been able to manage its debt problem quite well in recent years by consistently generating substantial surpluses in its revenue account. The servicing of debt now accounts for around 3 percent of the total expenditure and interest payment consumes another 1 percent. Containing the debt burden within manageable limits has enabled the state government to launch ambitious programmes for infrastructure, essential for economic growth of the state. From Table 2.40, it is seen that the annual growth rate of capital outlay is as high as 24 percent during the recent period. The expenditure on social and economic services has also been growing at equally high rates of 20 and 21 percent, respectively. On the whole, the total expenditure of the state government has been growing annually at 18 percent. Table 2.40 : Growth Rates of Expenditure Annual Growth Rates Expenditure Heads

CAGR 2015-16 (2010-16) 2010-11 2011-12 2012-13 2013-14 2014-15 (BE)

General Services

25.3

16.0

5.2

18.1

19.9

14.6

14.6

Social Services

14.4

24.1

23.4

14.2

20.1

20.1

19.9

Economic Services

10.6

28.1

26.6

10.6

2.7

58.3

20.6

Capital Outlay

25.4

-3.7

8.3

46.1

29.6

36.9

23.9

Discharge of Public Debt

10.4

33.4

5.0

1.6

15.7

7.9

10.6

Loans and Advances

23.0

72.9

9.4

-61.3

-54.3

97.7

-20.3

Total

18.5

18.7

15.0

16.2

17.8

27.4

18.2

Source : State Government Budgets

Within general services, expenditure on certain items cannot be much controlled. These are mostly items of charged expenditure, like pension and interest payment, expenditure in respect of judiciary, jails, police and the like, which can be curtailed only at a great peril to the state government. For all these items, the expenditure has been rising steadily. Even though the share of general services in the total expenditure of the state government has been going down, in absolute terms, it has grown steadily at an annual rate of around 15 percent during the period 2010-16. Besides steep increases in interest payments and pension charges, this increase has also been due to increased expenditure on police administration, district administration, judiciary, legislature, tax departments, and public works. In 2014-15, expenditure on general services increased by 20 percent over the previous year. 68

2.10 Revenue Expenditure Table 2.41 depicts the details of revenue expenditure of the state government, which is incurred to maintain the present level of activities. The share of revenue expenditure in total expenditure has remained almost unchanged between 75-80 percent during the period 2010-11 to 2015-16. The non-plan component of revenue expenditure consumes the bulk of it. In 2014-15, it constituted 65 percent of the total revenue expenditure, compare to 71 percent in 2010-11. The shares of plan and non-plan expenditure in total expenditure had also undergone gradual shifts over the past five years, with the share of non-plan expenditure decreasing from 59 percent in 2010-11 to 54 percent in 2014-15. With the winding up of the Planning Commission, this discussion about plan and non-plan expenditure, however, may lose relevance in the coming years. Table 2.41 : Details of Revenue Expenditure (Rs. crore) Expenditure Heads

2010-11 2011-12 2012-13 2013-14 2014-15

2015-16 (BE)

Revenue Expenditure (RE)

38216

46500

54466

62477

72570

91208

Capital Expenditure (CE)

12489

13682

14740

17928

22128

29477

Total Expenditure (TE)

50705

60182

69207

80405

94698

120685

Non Plan Expenditure

29794

37174

40825

46728

50759

63260

Revenue A/c (NPRE)

27316

34013

37574

43381

47059

59055

2478

3161

3252

3347

3700

4205

Plan Expenditure

20911

23008

28381

33678

43939

57426

Revenue A/c (PRE)

10900

12487

16892

19096

25511

32154

Capital A/c

10011

10521

11489

14581

18428

25272

Rate of growth of NPRE (%)

13.14

24.51

10.47

15.46

8.48

25.49

Rate of growth of PRE (%)

29.16

14.56

35.28

13.05

33.59

26.04

RE/TE(%)

75.37

77.27

78.70

77.70

76.63

75.58

NPRE/TE (%)

53.87

56.52

54.29

53.95

49.69

48.93

TE/GSDP(%)

24.91

24.74

23.57

23.40

23.54

25.45

RE/GSDP(%)

18.77

19.11

18.55

18.18

18.04

19.24

Revenue Receipt (RR)/TE (%)

87.83

85.28

86.07

85.71

82.81

85.50

NPRE/RR(%)

61.34

66.28

63.08

62.95

60.01

57.23

Buoyancy of RE w.r.t. GSDP

0.69

1.11

0.83

0.86

0.95

1.44

Buoyancy of RE w.r.t. RR

0.68

1.42

1.07

0.94

1.17

0.81

Capital A/c

Source : State Government Budgets

69

The total government expenditure and revenue expenditure was 24 percent and 18 percent, respectively of the GSDP of Bihar in 2014-15. From the buoyancy ratios, it is seen that, during 2010-11 to 2014-15, the revenue expenditure increased at a slower rate than the GSDP, except in 2011-12. However, in the budget estimates of 2015-16, revenue expenditure has been projected to grow at a higher rate than the GSDP, because of much higher projected expenditure in economic services and capital outlay. 2.11 Expenditure on Salary and Pension The salary and pension constitute the two most important items of expenditure for all governments. The trends in expenditure on salaries as well as pension are presented in Table 2.42. The pension and salary payments together constituted 36 percent of the state government's revenue expenditure in 2014-15 (38 percent in 2013-14); down from 44 percent five years ago. Table 2.42 : Expenditure on Salaries and Pensions (Rs. crore) 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 BE

Expenditure on Salaries

10550

12194

13558

14037

14607

18535

Non-Plan Head

9953

11495

12865

13315

13910

17758

Plan Head

596

699

693

721

697

777

Salary as percentage of GSDP

5.2

5.0

4.6

4.1

3.6

3.9

Salary as percentage of RR

23.7

23.8

22.8

20.4

18.6

18.0

Salary as percentage of RE

27.6

26.2

24.9

22.5

20.1

20.3

Expenditure on Pensions

6144

7808

8364

9482

11345

12980

Rate of Growth

42.3

27.1

7.1

13.4

19.6

14.4

3.0

3.2

2.8

2.8

2.8

2.7

Pension as percentage of RR

13.8

15.2

14.0

13.8

14.5

12.6

Pension as percentage of RE

16.1

16.8

15.4

15.2

15.6

14.2

16694

20002

21921

23518

25952

31514

8.2

8.2

7.5

6.8

6.5

6.6

Total as percentage of RR

37.5

39.0

36.8

34.1

33.1

30.5

Total as percentage of RE

43.7

43.0

40.2

37.6

35.8

34.6

Heads

Pension as percentage of GSDP

Total expenditure on Salary & Pension Total as percentage of GSDP

Source : State Government Budgets

The salary of the state government employees alone accounted for 20 percent of the total revenue expenditure in 2014-15, gradually coming down from 28 percent in 2010-11. In the current fiscal, it is likely to remain unchanged to 20 percent. Similarly, pension constituted 16 percent of the revenue expenditure in 2014-15. During 2010-11 to 2014-15, there had been major increases in expenditure on these two accounts by almost Rs. 9258 crore (Rs 4057 crore for salary and Rs. 5201 crore for pension). The expenditure on salary and pension is projected to increase by about 70

Rs 5562 crore in the budget estimates of 2015-16. However, the salary expenses lie within the norm of 35 percent of revenue expenditure, as recommended by the Twelfth Finance Commission. The salary and pension payments had increased annually at the rate of 8 percent and 17 percent, respectively during the period 2010-11 to 2014-15. The total expenditure on these two accounts registered an annual growth rate of nearly 12 percent during this period. 2.12 Quality of Expenditure The quality of expenditure can be judged by the proportion of expenditure devoted to the creation of social and physical infrastructure, proportion of developmental expenditure on social and economic services as opposed to the non-developmental expenditure on general services, and the proportion of plan expenditure as opposed to non-plan expenditure. Thus, the important parameters of quality in expenditure are : (i) ratio of capital outlay to total expenditure; (ii) ratio of capital outlay to GSDP; (iii) proportion of revenue expenditure on social and economic services; (iv) proportion of non-salary expenditure incurred in these services; and (v) ratio of plan to non-plan expenditure. The higher these ratios, the better the quality of expenditure would become. Table 2.43 shows these ratios during the five-year period from 2010-11 to 2014-15 and also for the budget estimates of 2015-16. Table 2.43 : Quality Parameters of Expenditure Expenditure Heads

2010-11 2011-12 2012-13 2013-14 2014-15

Capital Outlay (Rs. crore)

2015-16 (BE)

9196

8852

9585

14001

18150

24853

Revenue Expenditure (Rs. crore)

38216

46500

54466

62477

72570

91208

Expenditure on Social/ Economic Services (Rs. crore)

22926

28767

35817

40455

46158

60945

(i) Salary Component (Rs. crore)

7027

8171

9033

8482

9051

11660

Salary component (%)

30.7

28.4

25.2

21.0

21.0

191

15899

20596

26784

31973

37107

49285

Non-salary component (%)

69.3

71.6

74.8

79.0

80.4

80.9

Capital Outlay/ Total Expenditure (%)

18.1

14.7

13.8

17.4

19.2

20.6

Revenue Expenditure / Total Expenditure (%)

75.4

77.3

78.7

77.7

76.6

75.6

Revenue Expenditure /GSDP (%)

18.8

19.1

18.6

18.2

18.0

19.2

4.5

3.6

3.3

4.1

4.5

5.2

70.2

61.9

69.5

72.1

86.6

90.8

41.0

41.9

46.4

47.6

(ii) Non salary component (Rs. crore)

Capital Outlay /GSDP (%) Plan Expenditure / Non-Plan Expenditure (%)

Plan Expenditure / Total Expenditure (%) 41.2 38.2 Source : State Government Budgets

Judged by all the parameters, the quality of expenditure in Bihar has significantly improved over the recent years. The non-salary component of developmental revenue expenditure had increased from 69 to 80 percent during 2010-15, while the share of plan expenditure in total expenditure had increased from 41 to 46 percent. The ratio of plan to non-plan expenditure has also systematically increased from 70 percent to nearly 87 percent over this period. All these ratios reflect that the public finances in Bihar are being managed prudently. These improvements have 71

led to higher growth of GSDP of Bihar and improvement in socio-economic conditions of its people. 2.13 Sectoral Expenditure Expenditure on Social Services

Providing better education and health services, safe drinking water, sanitation, housing etc. is very important to establish the linkage between economic growth and welfare of citizens. This desired linkage can be established through adequate expenditure on social services. Table 2.44 presents such expenditures by the state government during 2010-11 to 2014-15 and also the budget estimates of 2015-16. Table 2.44 : Expenditure on Social Services Expenditure Heads

2010-11 2011-12 2012-13 2013-14 2014-15

2015-16 (BE)

Education, Sports, Arts & Culture Total Expenditure (Rs. crore)

8244

10214

14445

15047

16531

22459

Revenue Expenditure (Rs. crore)

8101

10157

14080

14344

16267

21167

(a) Salary component (%)

45.0

43.5

44.5

33.7

28.7

28.6

(b) Non-salary component (%)

55.0

56.5

55.5

66.3

71.3

71.4

Capital Outlay (Rs. crore)

144

56

364

704

263

1292

Capital Outlay (%)

1.7

0.6

2.5

4.7

1.6

5.8

Total Expenditure (Rs. crore)

1667

2125

2398

2574

3604

4949

Revenue Expenditure (Rs. crore)

1502

1804

1836

2113

3288

3478

(a) Salary component (%)

73.0

72.9

79.6

74.8

51.0

57.6

(b) Non-salary component (%)

27.0

27.1

20.4

25.2

49.0

42.4

Capital Outlay (Rs. crore)

165

321

563

460

316

1471

Capital Outlay (%)

9.9

15.1

23.5

17.9

8.8

29.7

Health and Family Welfare

Water Supply, Sanitation, Housing and Urban Development Total Expenditure (Rs. crore)

2327

2045

2587

3605

4542

5544

Revenue Expenditure (Rs. crore)

1698

1713

2304

2967

3639

4425

(a) Salary component (%)

10.0

11.6

8.9

8.0

7.6

8.4

(b) Non-salary component (%)

90.0

88.4

91.1

92.0

92.4

91.6

Capital Outlay (Rs. crore)

630

332

282

638

903

1119

Capital Outlay (%)

27.1

16.2

10.9

17.7

19.9

20.2

Total Expenditure (Rs. crore)

16161

19536

24438

28253

33386

42128

Revenue Expenditure (Rs. crore)

15089

18729

23107

26395

31713

38084

(a) Salary component (%)

34.0

33.6

30.7

26.6

22.0

23.3

(b) Non-salary component (%)

66.0

66.4

69.3

73.4

28.0

76.7

Capital Outlay (Rs. crore)

1072

807

1331

1858

1674

4044

6.6

5.0

9.6

Total (Social Services)

Capital Outlay (%)

6.6 4.1 5.4 Source : State Government Budgets

72

The state government’s concern for social development is amply reflected in the increased allocation for this sector from Rs. 16,161 crore in 2010-11 to Rs. 33,386 crore in 2014-15. In the budget estimates of 2015-16, social services expenditure is projected to increase further by more than Rs. 8742 crore. The share of capital outlay in social services sector, however, decreased during this period, from 7 percent in 2010-11 to only 5 percent in 2014-15, through it has been projected to rise to 9.6 percent in the budget of 2015-16. The non-salary component of the revenue expenditure on social services (the amount spent actually on the maintenance of assets already created) was 78 percent in 2014-15, as against 66 percent in 2010-11. The salary component of revenue expenditure in respect of water supply, sanitation, housing and urban development has in fact been very small (8 percent in 2014-15), but it accounted for a large share of total revenue expenditure in respect of health and family welfare (51 percent in 2014-15), though it has been reducing over the years. The total revenue expenditure on social services had increased from Rs 15,089 crore (2010-11) to Rs 31,713 crore (2014-15) growing at an annual rate of 20 percent. In 2015-16, it is estimated to rise to Rs 38,084 crore. The total capital outlay on social services increased from Rs. 1072 crore in 2010-11 to Rs. 1674 crore in 2014-15. In 2015-16 budget, it has been given a quantum jump to Rs 4044 crore, mostly due to increases of over Rs 1000 core each in capital outlay on education and health/family welfare. Expenditure on Economic Services Table 2.45 shows the expenditure on economic services, which creates additional productive capacity in the economy. Agriculture and allied activities, irrigation and flood control, energy and power, industry and minerals and transport together accounted for nearly 68 percent of the total expenditure on economic services in 2014-15, considering both revenue and capital accounts. About 51 percent of the total expenditure on economic services was made on capital account in 2014-15 (44 percent in 2013-14). The capital outlay in respect of economic services increased substantially from Rs 7728 crore (2010-11) to Rs 14,728 crore (2015-16). It had increased steadily during the last few years and was nearly 81 percent of the total capital outlay of Rs 18,150 crore in 2014-15. Out of the total capital outlay on economic services, energy and power had taken the largest share (Rs 7948 crore), followed by transport (Rs 5194 crore) and agriculture and allied activities (Rs 3615 crore) in 2014-15. The non-salary component of the revenue expenditure in economic services, as in the case of social services, also remained high throughout the period and was 87 percent during 2014-15. The salary component was high only in respect of irrigation and flood control, accounting for nearly 65 percent of the total expenditure in 2014-15 (63 percent in 2013-14).

73

Table 2.45 : Expenditure on Economic Services 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

Agriculture and Allied Activities Total Expenditure (Rs. crore)

2035

2032

3262

3670

3615

4562

Revenue Expenditure (Rs. crore)

2018

1914

3170

3193

3431

3998

(a) Salary component (%)

20.0

23.8

14.8

14.7

14.1

16.5

(b) Non-salary component (%)

80.0

76.2

85.2

85.3

85.9

83.5

Capital Outlay (Rs. crore)

17

117

92

477

185

565

Capital Outlay (%)

0.8

5.8

2.8

13.0

5.1

12.4

Irrigation and Flood Control Total Expenditure (Rs. crore)

2678

3275

2854

2838

2444

3173

Revenue Expenditure (Rs. crore)

1311

1311

914

1039

1020

1525

(a) Salary component (%)

53.0

47.2

65.9

63.1

64.8

52.0

(b) Non-salary component (%)

47.0

52.8

34.1

36.9

35.2

48.0

Capital Outlay (Rs. crore)

1367

1964

1940

1799

1424

1647

Capital Outlay (%)

51.0

60.0

68.0

63.4

58.3

51.9

Energy and Power Total Expenditure (Rs. crore)

2223

2270

3374

5133

7948

7867

Revenue Expenditure (Rs. crore)

1216

2168

3200

3236

3773

4291

(a) Salary component (%)

0.0

0.0

0.0

0.0

0.0

0.0

(b) Non-salary component (%)

100.0

100.0

100.0

100.0

100.0

100.0

Capital Outlay (Rs. crore)

1007

102

174

1897

4175

3575

Capital Outlay (%)

45.3

4.5

5.1

37.0

52.5

45.4

Transport Total Expenditure (Rs. crore)

4706

4852

4138

5471

5194

6921

Revenue Expenditure (Rs. crore)

634

789

826

1381

996

2044

(a) Salary component (%)

26.0

23.3

24.6

15.4

22.8

14.1

(b) Non-salary component (%)

74.0

76.7

75.4

84.6

77.2

85.9

Capital Outlay (Rs. crore)

4072

4064

3313

4090

4198

4878

Capital Outlay (%)

86.5

83.7

80.1

74.8

80.8

70.5

Industry and Minerals Total Expenditure (Rs. crore)

335

429

583

1115

564

1013

Revenue Expenditure (Rs. crore)

326

363

534

580

561

983

(a) Salary component (%)

34.0

11.2

15.6

11.0

11.1

8.8

(b) Non-salary component (%)

66.0

88.8

84.4

89.0

88.9

91.2

Capital Outlay (Rs. crore)

9

66

49

535

3

30

2.6

15.4

8.4

48.0

0.5

3.0

15564

17475

20246

24871

29173

39554

Revenue Expenditure (Rs. crore)

7836

10038

12710

14060

14445

22861

(a) Salary component (%)

20.0

18.7

15.2

11.1

15.1

12.4

(b) Non-salary component (%)

80.0

81.3

84.8

88.9

84.9

87.6

Capital Outlay (Rs. crore)

7728

7437

7536

10811

14728

16694

43.5

50.5

42.2

Capital Outlay (%) Total (Economic Services) Total Expenditure (Rs. crore)

Capital Outlay (%)

49.7 42.6 37.2 Source : State Government Budgets

74

2.14 Per Capita Expenditure on Social and Economic Services Tables 2.46 shows the per capita expenditure on social and economic services for the years 2010-11 to 2014-15 and also for the budget estimates of 2015-16. During the period 2010-15, the growth in per capita expenditure on social services was nearly two fold , as it increased from Rs 1479 to Rs 2849, and the growth in economic services was also high (from Rs 768 to Rs 1298). The per capita capital outlay increased from Rs 902 to Rs 1631. Table 2.46 : Per Capita Expenditure on Social and Economic Services 2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (BE)

10.2

10.4

10.6

10.9

11.1

11.4

Education, Sports & Culture

8101

10157

14080

14344

16267

21167

Medical and Public Health

1502

1804

1836

2113

3288

3478

Water Supply and Sanitation

1698

1713

2304

2967

3639

4425

15089

18729

23107

26395

31713

38084

Economic Services

7836

10038

12710

14060

14445

22861

Capital Outlay

9196

8852

9585

14001

18150

24853

15287

17730

18645

22018

26408

30259

Education, Sports & Culture

794

977

1324

1318

1461

1859

Medical and Public Health

147

173

173

194

295

305

Water Supply and Sanitation

166

165

217

273

327

389

1479

1801

2172

2426

2849

3345

Economic Services

768

965

1195

1292

1298

2008

Capital Outlay

902

851

901

1287

1631

2183

1499

1705

1753

2023

2372

2658

Estimated Population (crore) Total Expenditure (Rs. crore)

Social Services

General Services Per Capita Expenditure (Rs.)

Social Services

General Services

Source : State Government Budgets

2.15 Comparison of Budget Estimates of 2015-16 and Actual Amounts of 2014-15 In this section, the budget of 2015-16 will be compared with the actual receipts and expenditure of the state government during 2014-15. The accounts for 2014-15 showed a deficit of Rs. 870 crore in the Consolidated Fund of the state government, while the budget for 2015-16 shows a small surplus of Rs. 229 crore. From Table 2.47, it can be seen that revenue receipts and revenue expenditure are estimated to go up by nearly Rs 24,771 crore and Rs 18,638 crore, respectively in 2015-16, compared to the previous year. It has an estimated revenue surplus of Rs. 11,981 crore, which was much higher than the revenue surplus of Rs. 5848 crore in 2014-15. 75

Table 2.47 : Summary of Actual Amounts (2014-15) and Budget Estimates (2015-16) (Rs. crore) 2014-15 (Actuals)

2015-16 (BE)

2014-15 (Actuals)

2015-16 (BE)

13918

17709

Recovery of Loans and Advances

1493

17

Total Capital Receipts

15411

17725

18150

24853

3609

3895

369

729

22128

29477

6717

11752

94698

120685

Small Savings, PF etc.

1287

1659

Reserve Funds

1649

961

22749

11516

167856

0

12234

0

205774

14136

Revenue Account

Capital Account

Receipts

Receipts

Tax revenues

57713

81623

1558

3396

Grants and Contributions

19146

18171

Total Revenue Receipts

78418

103189

Non-Tax Revenues

Expenditure

Public Debt

Expenditure

General Services

26408

30259

Capital Outlay

Social Services

31713

38084

Public Debt

Economic Services

14445

22861

Loans & advances

4

5

Total Revenue Expenditure

72570

91208

Deficit Revenue A/c

-5848

-11981

Deficit Capital Account

Consolidated Fund Receipts

93828

120914

Consolidated Fund Expenditure

-870

229

Grants and Contributions

Net Consolidated Fund (Receipt-Expenditure)

Total Capital Expenditure

Contingency Fund Income

Expenditure

Contingency Fund Total

Contingency Fund Total

Public Account

Public Account

Receipts

Disbursements

Small Savings, PF etc.

1104

1297

Reserve Funds

1404

961

24972

11697

166624

0

Suspense and Misc.

12222

0

Remittances

206325

13956

551

-181

-319

48

Deposits and Advances Suspense and Misc. Remittances Total Receipts Public Account Net Results Public Account (Receipt-Expenditure) Net Result (All Accounts) (Receipt-Expenditure)

Deposits and Advances

Total Disbursements Public Account

Source : State Government Budgets

76

In the capital account, the budget estimates for 2015-16 envisaged an increase of about Rs 7349 crore in expenditure over 2014-15. The capital receipts were estimated to increase by only Rs 2314 crore, from public debt (including loans from the market and NSSF) and also from recovery of loans and advances, leaving a net deficit in the capital account of Rs 11,725 crore. The repayment of loans during 2015-16 was estimated to increase by only Rs 286 crore, compared to 2014-15, and the lending by the state government was estimated to go up by Rs 360 crore. Capital outlay is estimated to increase substantially by Rs 6703 crore. The deficit of Rs 11,752 crore in the capital account is estimated to be completely offset by the revenue surplus of Rs 11,981 crore, leaving a small surplus of Rs 229 crore in the budget. The Public Account is estimated to leave a net deficit of Rs 181 crore, and the net results of all accounts would be a small surplus of Rs 48 crore in 2015-16, compared to a net deficit of Rs 319 crore in 2014-15. Table 2.48 : Percentage Distribution of Consolidated Fund – Receipts and Expenditure Receipts

2014-15 (Actual)

2015-16 (BE)

Expenditure

Revenue Account Tax Revenue

81623

Non-Tax Revenue

1558

3396

Grants-in-Aid and Contributions

19146

18171

General Services

26408

30259

Social Services

31713

38084

Economic Services

14445

22861

4

5

3609

3895

369

729

Capital Outlay

18150

24853

Total

94698

120685

Grants-in-Aid

Capital Account

Recovery of Loans and Advances Inter State Settlement Total

2015-16 (BE)

Revenue Account

57713

Public Debt

2014-15 (Actual)

Capital Account

13918

17709

1493

17

0

0

93828

120914

Discharge of Public Debt Loans and Advances

Source : State Government Budgets

The structures of receipts and expenditure of the state government are presented in Table 2.48. From this table, it can be seen that, besides some variations in respect of the inter-se shares of grants and tax revenues, there was a structural change in the composition of receipts on accounts of grants-in-aid and tax revenue. The tax revenue accounted for 67 percent of the total receipts in the Consolidated Fund in 2015-16, as against 62 percent in the previous year. While the share of non-tax revenue was estimated to go up by 1 percent during 2015-16, that of public debt was expected to remain the same. The share of central government grants is likely to decrease substantially from 21 percent in 2014-15 to 15 percent in 2015-16. The structure of expenditure was also nearly the same in two years. While the share of general services decreased by 3 percent in the budget estimates for 2015-16 over the previous year’s actuals, that of social services also went down by 3 percent to claim a share of 31 percent of the total expenditure. The share of economic services increased by 4 percent from the previous 77

year’s level of 15 percent, while that of capital outlay increased from 19 to 21 percent. The share of public debt decreased by 1 percent, while that of loans and advances remained the same. The budget discontinued the earlier trend of increasing social sector expenditure and focused on expenditure on economic services instead to create, upgrade and maintain physical infrastructure so necessary for the state’s future growth. 2.16 Fourteenth Finance Commission’s Recommendations and Their Impact on Bihar’s Public Finance The Fourteenth Finance Commission has submitted its report in February 2015 which is likely to alter the landscape of federal finances in India. It has recommended 42 percent of the central divisible pool of resources for transfer to the states, as against the existing 32 percent. The states will now have much more fiscal space to spend on their own priorities, instead of depending on the central government. The spirit of cooperative federalism is asserted here when the central and state governments are equal partners in development. The divisible pool initially used to comprise only income tax and part of central excise duties. Successive commissions have increased the states’ share of these taxes. The Eleventh Finance Commission (2000-05) expanded the divisible pool substantially by including in it the net proceeds from all taxes covered under Article 270 (income tax, corporation tax, central excise duty, customs duty, service tax and wealth tax) and making 29.5 percent of this pool sharable with the states. The next two Commissions increased this share to 30.5 percent and 32.0 percent respectively. Cess and surcharges are excluded from the divisible pool and this remains a sore point with all the states. Apart from devolution of taxes, Finance Commissions also recommend grants-in-aid to states under Article 275. The taxes are expected to be divided among the states on the principles of equity and efficiency, effectively transferring resources from the rich to the poor states on the basis of a formula that factors in population and area of a state, inter-state disparities in income, and their fiscal performance. From the Sixth Commission onwards, central government has restricted the Finance Commissions to recommend only non-plan grants, plan part being the prerogative of the now dissolved Planning Commission. Plan transfers has so far mostly been dependent on the discretion of the central government; only a part was formula-based that progressively went on shrinking with the proliferation of Centrally Sponsored Schemes. These discretionary transfers have now been reduced after the replacement of the Planning Commission by Niti Aayog, an expert body without any power for resource allocation. The Fourteenth Finance Commission recommendations will have the effect of increasing the net flow of funds to the states by extra Rs 2.21 lakh crore during 2015-16 alone – the highest ever increase in the state’s share so far. During the award period of the Commission (2015-20), tax share to states will exceed Rs 44 lakh crore. In addition, 11 states with deficits in their revenue account will get grants amounting to Rs 1.95 lakh crore during the period. Local bodies stand to gain significantly, with Rs 2.00 lakh crore earmarked for Gram Panchayats and Rs 87,000 crore for urban local bodies. The aggregate level of transfer of central resources — plan and non-plan 78

combined — is estimated go up only by about 2 percent over the award period, but most of it will now be based on formula, rather than on discretion and not tied to plan schemes of questionable usefulness. The Commission’s methodology has been robust and estimates conservative, avoiding a high growth scenario in respect of taxes and GDP. This increases the credibility of their recommendations. By including forest cover as a new environmental factor and by giving weightage to 2011 population, it has taken into account the changing realities of the time. Table 2.49 also shows the criteria used by the successive Finance Commissions for determining the inter-se distribution of the proceeds of the central divisible pool of taxes among the states. All Finance Commissions are guided by three stated principles of — equalisation, equity, efficiency. The transfers are equalizing transfers of resources from the richer to the poorer states, without compromising the efficiency and performance of any state. The criteria used by all Finance Commission reflect these principles and are not much different from Commission to Commission, as seen from Table 2.49. Table 2.49 : Shares of Vertical Devolution and Criteria for Horizontal Devolution through Successive Finance Commissions FC11

FC12

FC13

FC14

32.0

42.0

Vertical Devolution States’ share (Percentage)

28.5

30.5

Weightage for Horizontal Devolution Population (1971)

10

25

25

17.5

Population (2011)







10

62.5

50



50

Area

7.5

10

10

15

Index of Infrastructure

7.5







5

7.5





7.5

7.5

17.5



Fiscal Capacity Distance





47.5



Environment







7.5

100 100 100 Source : Different Finance Commission Reports

100

Income Distance

Tax Effort Fiscal Discipline

Total

Every Finance Commission adopts its own criteria for determining the inter-se share of the states; however, the Fourteenth Finance Commission’s criteria, mark two important deviations from all previous Commissions. All previous Commissions have adopted 1971 population as one of the criteria for the distribution of the proceeds of taxes among the states, but the latest Commission has also taken into account 2011 population, in view of changed demographic scenario in the country. Also, for the first time, by including forest cover as a new criterion while determining the transfers, environmental concerns have been given due recognition. Both these factors have significant impact upon Bihar. 79

Table 2.50 : Inter-Se Vertical Devolution from the Eleventh through Fourteenth Finance Commissions (Figures in percent) FC11 State

Union Taxes (excluding Service Tax)

FC12 Union Taxes (excluding Service Tax)

Service Tax

FC13 Union Taxes (excluding Service Tax)

Service Tax

FC14 Union Taxes (excluding Service Tax)

Service Tax

Service Tax

Andhra Pradesh

7.701

7.802

7.356

7.453

6.937

7.047

4.305

4.398

Arunachal Pradesh

0.244

0.247

0.288

0.292

0.328

0.332

1.370

1.431

Assam

3.285

3.328

3.235

3.277

3.628

3.685

3.311

3.371

Bihar

14.597

14.788

11.028

11.173

10.917

11.089

9.665

9.787

-

-

2.654

2.689

2.470

2.509

3.080

3.166

Goa

0.206

0.209

0.259

0.262

0.266

0.270

0.378

0.379

Gujarat

2.821

2.858

3.569

3.616

3.041

3.089

3.084

3.172

Haryana

0.944

0.956

1.075

1.089

1.048

1.064

1.084

1.091

Himachal Pradesh

0.683

0.692

0.522

0.529

0.781

0.793

0.713

0.722

Jammu & Kashmir

1.290

Nil

1.297

Nil

1.551

nil

1.854

nil

Jharkhand

-

-

3.361

3.405

2.802

2.846

3.139

3.198

Karnataka

4.930

4.994

4.459

4.518

4.328

4.397

4.713

4.822

Kerala

3.057

3.097

2.665

2.700

2.341

2.378

2.500

2.526

Madhya Pradesh

8.838

8.954

6.711

6.799

7.120

7.232

7.548

7.727

Maharashtra

4.632

4.693

4.997

5.063

5.199

5.281

5.521

5.674

Manipur

0.366

0.371

0.362

0.367

0.451

0.458

0.617

0.623

Meghalaya

0.342

0.346

0.371

0.376

0.408

0.415

0.642

0.650

Mizoram

0.198

0.201

0.239

0.242

0.269

0.273

0.460

0.464

Nagaland

0.220

0.223

0.263

0.266

0.314

0.318

0.498

0.503

Orissa

5.056

5.122

5.161

5.229

4.779

4.855

4.642

4.744

Punjab

1.147

1.162

1.299

1.316

1.389

1.411

1.577

1.589

Rajasthan

5.473

5.544

5.609

5.683

5.853

5.945

5.495

5.647

Sikkim

0.184

0.186

0.227

0.230

0.239

0.243

0.367

0.369

-

-

-

-

-

-

2.437

2.499

Tamil Nadu

5.385

5.455

5.305

5.374

4.969

5.047

4.023

4.104

Tripura

0.487

0.493

0.428

0.433

0.511

0.519

0.642

0.648

19.798

20.057

19.264

19.517

19.677

19.987

17.959

18.205

Uttarakhand

-

-

0.939

0.952

1.120

1.138

1.052

1.068

West Bengal

8.116

8.222

7.057

7.150

7.264

7.379

7.324

7.423

100.000

100.000

100.000

100.000

100.000

100.000

100.000

100.000

Chhattisgarh

Telangana

Uttar Pradesh

All

Source : Different Finance Commission Reports

80

Table 2.50 shows the shares of all the states in the total devolution of resources through the last four Finance Commissions. It can be seen that Bihar’s share has reduced gradually from 11.028 percent during the award period of the Twelfth Finance Commission to 9.665 percent for the Fourteenth Commission in respect of the central divisible pool of taxes, excluding service taxes, For service taxes, the share has fallen from 11.173 to 9.787 percent during the same period. Table 2.51 shows the amounts of transfers recommended by Fourteenth Finance Commission for Bihar from the central divisible pool of taxes during its award period, i.e. from 2015-16 o 201920. Of the total Rs 20.95 lakh crore to be transferred, Bihar’s share will be a total of Rs 3.84 lakh crore spread over five years. Total devolution of central resources to a state comes through its share of divisible pool of taxes and central grants, both for plan and non-plan purposes. Total devolution to Bihar during 2010-15 was Rs 2,28,072 crore — Rs 1,72,944 crore by Finance Commission recommendations and the rest being plan grants. In contrast, Fourteenth Finance Commission recommended a total devolution of Rs 3,83,854 crore during its award period 201520, excluding grants for local bodies amounting to Rs 21,057 crore. Even after factoring inflation, this apparently represents a hefty increase in devolution of central resources to Bihar, but the increase in total devolution is a myth. While the states’ shares of divisible pool have indeed gone up, their shares of grants, plan plus non-plan, have come down drastically, reflecting hardly any increase in the total resources transferred. Table 2.51 : Transfers Recommended by Fourteenth Finance Commission (Rs. Crore) Sl. No.

Particulars

2015-16

2016-17

2017-18

2018-19

2019-20

Total

Total for all states A

Total Central Taxes

5,79,282

6,68,425

7,72,304

8,93,430

10,34,745 39,48,186

B

Service Taxes

2,56,116

3,03,721

3,60,174

4,27,119

5,06,508 18,53,638

3,23,166

3,64,704

4,12,130

4,66,311

5,28,237 20,94,548

(A-B)

Share of Bihar Central Taxes Without Service Taxes (9.665 %)

31,234

35,249

39,832

45,069

51,054

2,02,438

Service Taxes (9.787%)

25,066

29,725

35,250

41,802

49,572

1,81,416

Total Share

56,300

64,974

75,083

86,871

1,00,626

3,83,854

Source : Annual Report, Department of Finance, GOB

Table 2.52 shows the non-plan grants for Bihar under Fourteenth Finance Commission recommendations. During its award period, Bihar will receive total grants of Rs 26,688 crore, of which Rs 21,018 crore (79 percent) will be on account of the PRI institutions in Bihar and Rs 2676 crore (10 percent) on account of urban local bodies. Other than this, only grants of Rs 2332 crore have been recommended for disaster relief, besides Rs 662 crore to strengthen the judicial systems in the state. 81

Table 2.52 : Non-Plan Grants for Bihar Under Fourteenth Finance Commission Recommendations (Rs. crore) Particulars

2015-16

2016-17

2017-18

2018-19

2019-20

Total

2,269

3,142

3,630

4,200

5,675

18,916

257

356

411

475

642

2,141

Local Bodies Grant (Basic Grant) Rural Local Bodies (RLB) Urban Local Bodies (ULB)

Local Bodies Grant (Performance Grants) Rural Local Bodies (RLB)



413

466

530

694

2,102

Urban Local Bodies (ULB)



105

119

135

177

535

422

443

465

489

513

2,332

Others Grants Disaster Relief Grant to State Grant for Justice Total

662 2,948

4,459

5,091

5,829

7,701

26,688

Source : Fourteenth Finance Commission Report

Grants for local bodies, as seen from Table 2.52, have been given under two heads, basic grants and performance grants. In case of Gram Panchayats, 90 percent of the grant will be the basic grant and 10 per cent will be the performance grant. In case of municipalities, the division between basic and performance grant will be on a 80:20 basis. The Commission recommended that the basic grants should go to only Gram Panchayats, which are directly responsible for the delivery of basic services, without any share for other two levels. The earmarked basic grants for Gram Panchayats will be distributed among them, using the formula prescribed by the respective State Finance Commissions. Similarly, the basic grant for urban local bodies will be divided into tier-wise shares and then distributed across each tier, namely the municipal corporations (Tier I), municipalities (Tier II) and the Nagar Panchayats (Tier III), using the formula given by the respective State Finance Commissions. The performance grants have been provided to address the following issues: (i) making available reliable data on receipt and expenditure of local bodies through audited accounts; and (ii) improvement in own revenues. In addition, the urban local bodies will have to measure and publish service level benchmarks for basic services. These performance grants will be disbursed from the second year of the award period (2016-17) onwards so as to enable sufficient time to state governments and the local bodies to put in place a scheme and mechanism for implementation. For transfers outside the Finance Commission, the Commission has recommended setting up of a new institutional mechanism ‘consistent with the overarching objective of strengthening cooperative federalism’, by limiting discretion, improving design and giving adequate flexibility to the states. By recommending to exclude the states from the operations of NSSF which was forced upon them, it has given them more liberty to manage their debt. All these recommendations are likely to bring in transparency and accountability in the public finances of central as well as states governments. 82

2.17 State Public Sector Undertakings and Corporations Government Investments in Public Sector The public sector in Bihar presently comprises 70 government companies and 3 statutory corporations. However, of the 70 government companies, only 30 are working. The total investment by the state government in public sector units, as of March 2014, is shown in Table 2.53. Such investments amounted to Rs 28,221 crore till 2014 (Rs 18,323 crore as equity and Rs 9898 crore as long term loans). Of these, Rs 729 crore (Rs 181 crore as equity and Rs 548 crore as long term loans) were invested in non-working companies (Table 2.54). Table 2.53 : State Government Investment in Public Sector

As on 31st March

Total number of Working PSUs

Total Total Public number of Total Total Sector Statutory Total Loans NonEquity Investment Corporations Companies/ (Rs crore) Working (Rs crore) (Rs crore) Corporations PSUs

2008

16

34

4

54

531

8149

8680

2009

19

40

4

63

526

8615

9141

2010

21

40

4

65

585

9037

9622

2011

21

40

4

65

625

10240

10865

2012

22

40

4

66

633

11741

12374

2013

28

40

3

71

3743

4579

8322

2014

30

40

3

73

18323

9898

28221

Source : Audit Reports on Public Sector Undertakings of the Comptroller and Auditor General of India

Table 2.54 : Investment in Working and Non-Working Public Sector Companies (March 31, 2014) (Rs crore) Type of Company/ corporation Working Non-Working Total

Government Companies

Statutory Corporations

Capital

Long Term Loans

Total

Capital

Long Term Loans

Total

Grand Total

17957

8573

26530

186

776

962

27492

181

548

729

---

---

---

729

18138

9121

27259

186

776

962

28221

Source : Audit Reports on Public Sector Undertakings of the Comptroller and Auditor General of India

The investments increased significantly only during 2013-14. The total investments till 2012-13 stood at Rs 8322 crore, almost at the same level of 2007-08. The massive increase during 201314 by almost Rs 20,000 crore was, however, a notional increase only due to the inclusion of the assets of the erstwhile Bihar State Electricity Board which had since been unbundled into five

83

separate companies and the release of the state government’s budgetary support to these entities. These data were not included till the last year. The sector-wise break-up of the public sector units as at the end of March 2014 is presented in Table 2.55. The majority of the working companies belong to power, infrastructure and financial sectors. Table 2.55 : Sector-wise Government Companies and Corporations (2013-14) Number of Statutory Corporations

Number of Working Companies

Number of Non-Working Companies

Agriculture

0

3

12

Power

0

9

0

Infrastructure

0

6

1

Manufacturing

0

3

12

Services

2

3

1

Financing

1

4

4

Others

0

2

10

Total

3

30

40

Sector

Of the 40 non-working companies, 9 are under liquidation process, as their continuance may not serve any useful purpose. Of these, 7 companies have been under liquidation process for the last 14 years. One of these companies had even incurred an expenditure of Rs 8 crore on salaries and wages during 2013-14. No company could be wound up during the year. The 30 working companies and 3 statutory corporations generated a total turnover of Rs 7925 crore in 2013-14 (2.3 percent of GSDP), compared to a turnover of Rs 4858 crore in 2012-13 (1.4 percent of GSDP). As per their latest finalized financial accounts, of the 33 working PSUs, 14 PSUs had earned a total profit of Rs 240.12 crore during 2013-14 and 15 incurred a total loss of Rs 203.16 crore, while two had nil profit/ loss. The remaining two PSUs were yet to finalise their first ever accounts. Thus, there was a total profit of Rs 36.96 crore during 2013-14 earned by the PSUs, compared to a loss of Rs 1109 crore in 2012-13. The major profit making companies were Bihar Rajya Pul Nirman Nigam (Rs 107 crore), Bihar State Beverages Corporation (Rs 39 core) and Bihar State Road Development Corporation (Rs 37 crore), while major loss making companies were Bihar State Road Transport Corporation (Rs 58 crore), North Bihar Power Distribution Company (Rs 74 crore) and South Bihar Power Distribution Company (Rs 23 crore). The state government has not yet formulated any dividend policy for the public sector so as to ensure a minimum return on investment; but three profit making PSUs had proposed some nominal dividends for 2013-14 — Bihar Rajya Pul Nirman Nigam (Rs 1.05 crore), Bihar State Beverages Corporation (Rs 6.00 crore) and Bihar State Building Construction Corporation (Rs 0.50 crore). As of March 2014, the PSUs in Bihar employed 16,458 employees — Working Companies (13594) and Non-Working Companies (2864). Their total accumulated debt amounted to Rs 84

9898 crore at the end of 2013-14, compared to Rs 4579 crore in 2012-13. The growth in investment by the state government and the budgetary support given by it to the PSUs in the forms of equity capital, loans, grants, subsidy, guarantees, waiver of loans etc. are shown in the Chart 2.6. The data relating to BSEB are included in this chart for 2012-13. Chart 2.6 : Investment in Public Sector (Rs. crore)

30000.0 Investment

25000.0

Budgetary Support 20000.0 15000.0 10000.0 5000.0 0.0 2009-10

2010-11

2011-12

2012-13

2013-14

Among the public sector units in Bihar, investment is mainly focused on the power sector, which accounted for about 83 percent of the total state government investment in public sector undertakings at the end of 2013-14, compared to 82 percent in 2008-09. The investment in this sector had increased from Rs 7475 crore to Rs 23,534 crore, during the period 2008-09 to 201314, due to adjustments necessitated by the unbundling of the BSEB. The investment in other important sectors, which include finance and manufacturing, did not show much variation during the same period. The financial sector accounted for 7 percent and manufacturing sector only 4 percent of the total investments in public sector at the end of 2008-09; these figures stood respectively at 2 percent and 1.5 percent for these two sectors at the end of 2013-14. Table 2.57 gives the paid up capital, investments and loans made by the state government on the 33 working companies or statutory corporations, as on March, 2013, along with their working results in the latest year for which their accounts are available. The years in which they have prepared their last accounts are also shown in the table. It can be seen that most of the companies have not prepared up-to-date accounts. Since the accounts are not up-to-date, return on the investments cannot be calculated. The Board meetings of most of these companies are also not held regularly. Altogether only 10 of the non-working companies out of a total of 40 had prepared their accounts which were not older than five years. However, most working companies are now fast pulling up the arrears in finalization of their accounts. With only three companies failing to reduce the arrears in finalization of accounts to within 10 years, the situation was vastly improved compared to 2012-13. Still, on the average, the arrears in finalization of accounts per PSU was more than 6 years, and the total numbers of arrear accounts of the PSUs were as high as 199 as at the end of 2013-14. 85

Table 2.56 : Summarised Results of Public Sector as per their latest accounts (as on 31 st March 2014) (Rs crore)

Name of PSU

Total Year up to Paid up AccumuOutstanding which capital as Total Man- Net Profit/ lated Loans accounts per latest power Loss (-) Profit/ (Govt.+ finalized a/c Loss (-) Others)

% Return on Capital Employed

A. Working Companies Agriculture 1

Bihar Rajya Beej Nigam Limited.

2013-14

2

Bihar Rajya Matsya Vikas Nigam Limited.

1996-97

3

SCADA Agro Business Company Ltd..

2011-12

3.71 (0.03)

27.93

78

-4.99

-58.45

-

2.63

-

-0.22

-1.92

-

0.05

-

-

-0.00

-1.81

0.36

Finance 4

Bihar State Credit & Investment Corporation Ltd.

2013-14

15.12 (0.12)

53.48

43

-0.84

-150.46

7.60

5

Bihar State Backward Classes Development & Finance Corpn.

2006-07

21.3 (8.00)

16.14

17

-0.29

0.53

10.10

6

Bihar State Minorities Finance Corporation Ltd.

2013-14

33.89

27.32

30

-1.49

-8.48

0.81

7

Bihar State Film Development & Finance Corporation Ltd

2014-15

1.00

0.15

08

0.01

-0.13

2.97

Infrastructure 8

Bihar Police Building Construction Corporation Ltd

2014-15

0.10 (0.00)

0.43

323

-0.89

-13.89

9

Bihar Rajya Pul Nirman Nigam Ltd.

2014-15

3.50

-

396

106.99

182.17

33.77

10

Bihar State Health Project Development Corporation.

2014-15

5.00

-

107

14.59

8.69

193.96

11

Bihar State Road Development Corporation Ltd.1

2013-14

20.00

125.00

107

37.36

182.71

18.05

12

Bihar Urban Infrastructure Development Corporation Ltd.

2013-14

5.00

-

58

5.83

5.50

55.52

13

Bihar State Educational Infrastructure Development Corporation Ltd.

2013-14

20.00

-

217

5.24

39.81

8.76

Manufacturing 14

1

Bihar State Electronic Development Corporation Ltd.

2014-15

5.66 (5.51)

Accounts are yet to be audited by the CAG of India.

86

6.00

66

13.64

10.53

32.37

15

Bihar State Mineral Development Corporation Ltd

2004-05

9.97

-

01

9.29

7.04

44.92

16

Bihar State Beverages Corporation Ltd.

2014-14

5.00

-

269

39.28

43.10

73.60

Power 17

Bihar State Hydro Electric Power Corporation Ltd.

2013-14

99.04

405.81

184

-1.42

-28.18

1.61

18

Bihar State Power (Holding) Company limited

2013-17

8923.96 (8912.96)

92.50

263

-9.11

-9.09

0.03

19

Bihar State Power Generation Company Limited

2013-14

2005.42 (2003.32)

1704.72

295

-

-

-

20

Bihar State power Transmission Company

2013-14

2307.08 (2305.08)

225.74

1454

-

-

0.26

21

North Bihar Power Distribution Company Limited

2014-15

2170.84 (2168.74)

1231.80

4123

-74.26

-714.34

0.51

22

South Bihar Power Distribution Company Limited

2013-14

2268.85 (2266.75)

2068.98

4789

-22.79

83.76

3.81

23

Bihar Grid Company Limited

2014-15

5.00

-

-

-

-

-

24

Pirpainti Bijli Company Private Limited

0.01

12.70

-

-

-

-

25

Lakhisarai Bijli Company Private Limited (LBCPL)

0.01

11.71

-

-

-

-

7.98

24.42

Service 26

27

28

Bihar State Tourism Development Corporation Limited

2013-14

5.00

233

3.17

-

Bihar State Food & Civil Supplies Corporation Limited

2012-13

10.00 (4.73)

2560.06

533

-11.18

-46.04

Bihar Medical Services & Infrastructure Corporation Limited

2013-14

6.74 (6.69)

-

-

2.49

2.31

27.51

Bihar State Forest Development Corporation Limited

2005-06

2.29

-

-

0.28

0.32

23.93

Bihar State Text Book Publishing Corporation Limited

2013-14

0.48

-

-

-0.32

-6.29

-

Miscellaneous 29

30

87

Government Companies B. Working Statutory Corporations 1 Bihar State Financial 2014-15 Corporation Service 2 Bihar State Road Transport 2014-15 Corporation 3 Bihar State Warehousing 2013-14 Corporation C. Non-working Government Companies Agriculture & Allied 1. Bihar State Water Development 1997-98 Corporation Limited (BSWDCL) 2. Bihar State Dairy Corporation 2013-14 Limited (BSDCL) 3. Bihar Hill Area Lift Irrigation 1993-94 Corporation Limited (BHALICL) 4. Bihar State Agro Industries 2013-14 Development Corporation Limited (BSAIDCL) 5. Bihar State Fruit & Vegetables 2010-11 Development Corporation Limited (BSFVDCL) 6. Bihar Insecticide Limited (BIL) 1991-92 7.

SCADA Agro Business Khagaul Limited (SABLK) 8. SCADA Agro Business Limited, Dehri (SABLD) 9. SCADA Agro Business Limited, Arrah (SABLA) 10. SCADA Agro Business Limited, Aurangabad (SABLA) 11. SCADA Agro Business Limited, Mohania (SABLM) 12. SCADA Agro Forestry Company Limited, Khagaul (SAFCLK) Finance 13. Bihar Panchayati Raj Finance Corporation Limited (BPRFCL) 14. Bihar State Handloom and Handicrafts Corporation Limited (BSHHCL) 15. Bihar State Small Industries Corporation Limited (BSSICL) 16. Bihar State Industrial Development Corporation Limited (BSIDCL) Infrastructure 17. Bihar State Costruction Corporation Limited (BSCCL)

77.84

210

-17.67

-404.58

-

228.47 101.27

547.79

1000

-57.69

-843.75

-

6.42

-

182

1.95

4.87

13.77

10.00

49.68

-

2.17

11.20

9.06

6.72

-

-

-0.00

-10.58

-

10.82

8.55

-

-0.26

-0.86

-

7.64

12.60

136

-2.22

-34.73

-

2.10

1.12

9

-0.92

-7.82

-

1.54

53

-1.03

-1.03

-

NA

2.96 (2.39) NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1991-92

3.02

-

54

-0.01

-0.03

3.92

1996-97

10.00

1.16

-

-0.10

-0.44

0.14

2005-06

7.18

12.23

49

-1.42

-16.56

-

2009-10

14.04

66.56

768

-3.51

-26.42

6.23

2014-15

7.00

88

2.03

227

-2.85

-11.82

-

Manufacturing 18. Bihar Solvent & Chemicals Limited (BS&CL) 19. Magadh Mineral Limited (MML) 20. Kumardhubi Metal Casting & Engineering Limited (KMC&EL) 21. Beltron Video System Limited (BVSL) 22. Beltron Mining System Limited (BMSL) 23. Beltron Informatics Limited (BIL) 24. Bihar State Sugar Corporation Limited (BSSCL) 25. Bihar State Cement Corporation Limited (BSCCL) 26. Bihar State Pharmaceuticals & Chemicals Development Corporation Limited (BSP&CDCL) 27. Bihar Maize Product Limited (BMPL) 28. Bihar Drugs & Chemicals Limited (BD&CL) 29. Bihar State Textiles Corporation Limited (BSTCL) Services 30. Bihar State Export Corporation Limited (BSECL) Miscellaneous 31. Bihar Paper Mills Limited (BPML) 32. Bihar State Glazed Tiles & Ceramics Limited (BSGT&CL) 33. Vishwamitra Paper Indstries Limited (VPIL) 34. Jhanjhanpur Paper Industries 35. 36.

37. 38. 39.

40.

Bihar State Tannin Extract Limited (BSTEL) Bihar State Finished Leathers Corporation Limited (BSFLCL) Synthetic Resins (Eastern) Limited (SREL) Bhavani Active Carbon Limited (BACL) Bihar State Leather Industries Development Corporation Limited (BSLIDCL) Bihar Scooters Limited (BSL)

1995-96

1.08

0.89

-

-0.32

-0.32

-

-

0.36

0.47

5

-

-

-

1995-96

2.17

6.63

-

-2.39

-8.16

-

1998-99

5.05

4.51

-

-0.15

-0.22

-

2002-03

2.48

-

-

-0.10

-0.49

-

-

0.00

-

-

-

-

-

1996-97

20.00

322.95

-

-9.20

-72.31

-

-

0.00

0.03

-

-

-

-

1992-93

15.78 (0.78)

4.25

52

-0.17

-0.74

-

1987-88

0.02

-

-0.03

-0.06

-

1991-92

0.74 (0.74) 4.00

1.28

-

-0.03

-0.16

-

1995-96

10.78

2.27

51

-0.09

-0.32

-

1990-00

2.00

1.22

23

-0.10

-0.01

2.67

1997-98

7.77

10.72

-

-0.06

-0.31

-

1997-98

1.40 (0.25)

3.66

32

-0.08

-0.51

-

1988-89

0.81

-

-0.01

-0.01

-

0.46

13

-0.01

-0.02

-

1993-94

1.74 (0.60) 1.49 (0.42) 1.57

2.14

-

-0.32

-0.67

-

1986-87

1.47

9.18

-

-1.49

-2.13

-

1987-88

0.31

1.05

-

-0.02

0.01

-

1989-90

0.09

-

-

-0.01

0.01

-

2004-05

17.40

14.13

-

-0.37

2.92

-

1991-92

1.63 6.09 Source : Principal Auditor General, Bihar

89

-

APPENDIX Table A 2.1 : Act-wise / Circle-wise Collection 2013-14 and 2014-15 (Rs. lakh) Division / Circle Patna Special Patliputra Central Division Patna West Patna Central Patna North Gandhi Madan Patna South KadamKuan Patna City East Patna City West Danapur Barh Shahabad Buxar Biharshariff Patna Division Sasaram Bhabhua Gaya Jehanabad Nawada Aurangabad Gaya Division Saran Siwan Gopalganj Muzaffarpur West Muzaffarpur East Hajipur Sitamarhi Motihari Raxaul Bettiah Bagaha Tirhut Division Darbhanga Samastipur Madhubani Janjharpur Begusarai Teghara Darbhanga Division Saharsa Madhepura Purnea Katihar Forbesganj Kishanganj Khagaria Purnea Division Bhagalpur Lakhisarai Munger Jamui Bhagalpur Division State

VAT C.S.T ENT. Tax E.D. ADV Tax 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 406365 400694 2733 2136 0 0 13965 37233 0 0 122840 129092 1927 1362 1999 3274 0 0 0 0 529204 529786 4660 3498 1999 3274 13965 37233 0 0 14739 16626 33 65 804 218 1 0 28 39 12306 11764 153 217 2 0 0 0 12 18 14979 14993 61 67 87 96 0 0 0 0 5857 7555 133 172 0 0 0 15 11 14230 16767 76 114 4 2 0 0 2 3 6460 8677 69 48 1 0 0 0 0 0 13172 16035 78 140 1 1 0 0 0 0 14250 14935 209 239 1 15 0 0 0 0 26204 28422 99 123 20 22 0 0 0 0 16621 13440 195 110 12 12 0 0 0 0 4401 5109 33 18 19 23 0 0 0 0 2227 2359 9 9 15 17 0 0 0 0 4964 5815 14 12 35 35 0 0 0 0 150410 162497 1163 1332 1001 440 1 0 58 70 9185 9872 113 195 16 17 0 0 0 0 6228 6512 69 156 5 5 0 0 0 0 11834 12318 301 182 62 58 0 0 0 0 2209 2796 0 1 2 1 0 0 0 0 2953 3442 0 1 14 17 9 6 0 0 4751 5634 31 61 12 13 0 0 0 0 37161 40573 515 596 110 111 9 6 0 0 4301 4541 1 4 24 24 0 0 0 0 4163 5571 17 20 14 16 0 0 0 0 4642 5296 10 22 15 14 0 0 0 0 10095 11608 244 160 19 18 1 2 0 0 6670 6892 130 108 40 42 1 1 0 0 15700 15512 316 266 56 62 0 0 0 0 7901 5550 16 20 54 51 0 0 0 0 5957 6891 21 22 40 40 0 0 0 0 956 1166 22 19 11 11 0 0 0 0 5645 5318 26 21 30 25 6 7 0 0 1627 1218 14 31 10 11 0 0 0 0 67657 69564 816 695 313 314 9 10 0 0 8019 9120 18 50 56 55 0 0 0 0 5836 7197 303 320 29 30 12 9 2 2 3526 4217 5 3 27 30 0 0 0 0 951 1124 0 1 0 0 0 1 0 0 4824 5768 87 90 135 26 1 1 0 0 506 649 43 45 7 7 0 0 0 0 23662 28075 455 509 255 147 13 10 2 2 5307 5838 2 15 31 30 0 0 0 0 2417 2768 2 1 10 10 0 0 0 0 7630 8204 226 149 66 56 0 0 0 0 6282 6544 45 31 45 34 0 0 0 0 2891 3404 47 35 12 15 0 0 0 0 2731 2757 287 122 9 9 0 0 0 0 2191 2365 10 14 8 7 0 0 0 0 29448 31880 619 366 182 161 0 0 0 0 9714 9787 61 53 62 51 12 12 0 0 1862 1982 12 17 5 5 0 0 0 0 3017 2963 12 9 2 1 71 45 0 0 2508 2514 27 30 3 3 0 0 0 0 17101 17246 112 109 73 60 83 57 0 0 854643 879621 8341 7104 3932 4556 14081 37315 60 73

(Contd….)

90

Table A 2.1 : Act-wise / Circle-wise Collection 2014-15 and 2014-15 (Contd.) (Rs. lakh) LUX Tax

ENTRY Tax

Professional Tax

TOTAL

TARGET

Division / Circle 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 Patna Special Patliputra Central Division Patna West Patna Central Patna North Gandhi Madan Patna South Kadam Kuan Patna City East Patna City West Danapur Barh Shahabad Buxar Biharshariff Patna Division Sasaram Bhabhua Gaya Jehanabad Nawada Aurangabad Gaya Division Saran Siwan Gopalganj Muzaffarpur West Muzaffarpur East Hajipur Sitamarhi Motihari Raxaul Bettiah Bagaha Tirhut Division Darbhanga Samastipur Madhubani Janjharpur Begusarai Teghara Darbhanga Division Saharsa Madhepura Purnea Katihar Forbesganj Kishanganj Khagaria Purnea Division Bhagalpur Lakhisarai Munger Jamui Bhagalpur Division State

0 0 0 288 46 87 157 4 14 0 7 1 1 12 1 42 659 2 3 220 0 0 1 226 5 3 1 17 9 4 1 3 0 4 0 47 6 3 3 0 3 2 16 4 1 7 12 1 1 1 26 24 0 2 1 27 1002

0 0 0 275 67 73 129 8 12 0 7 2 3 8 0 39 624 3 4 271 0 1 8 286 4 2 2 26 8 1 2 4 0 6 0 55 10 4 2 0 5 1 23 8 2 8 12 2 2 1 35 24 1 3 1 28 1051

140210 56450 196660 2769 5567 3893 2618 7981 1859 6458 4452 5520 12568 1399 228 983 56295 2083 704 3977 128 562 13714 21169 951 1498 901 8687 2329 3928 833 1744 173 1035 133 22212 1806 1789 661 36 89258 451 94001 459 279 5226 1641 592 1392 373 9963 25622 387 1733 242 27984 428284

186870 62567 249436 2553 4224 3526 2709 7925 2059 7919 4152 4940 4689 1327 282 1171 47476 1942 877 3686 109 705 12792 20112 912 1547 1142 8078 2229 3505 853 1751 178 1007 39 21242 2259 1924 766 26 68663 479 74117 516 486 5319 1556 714 1366 376 10333 14763 488 2391 260 17903 440619

95 106 201 361 264 764 95 49 16 7 27 126 28 106 60 120 2025 99 46 149 70 58 80 502 177 74 64 230 111 121 92 75 10 66 23 1042 140 171 76 34 118 5 544 101 49 84 103 51 37 59 484 252 53 157 35 497 5295

85 126 211 570 169 259 123 57 19 7 28 137 41 48 68 160 1687 124 49 206 82 69 96 626 217 90 74 242 115 155 98 110 13 93 23 1229 143 205 79 33 132 7 597 130 54 95 122 57 41 76 576 267 68 188 47 571 5496

2013-14

2014-15

2013-14

2014-15

563367 627017 632147 732549 183322 196422 217216 238374 746689 823438 849363 970923 19023 20346 20003 24652 18350 16459 19305 23862 19871 19014 19803 25839 8876 10748 8097 11542 22347 24875 22045 29057 8418 10816 8569 10946 19717 24103 16612 25640 18947 19375 16977 24637 31971 33646 31291 41572 29425 18294 39535 38225 5969 6533 4967 7762 2540 2736 2406 3303 6158 7232 6283 8008 211613 214176 215894 275045 11498 12152 10949 14945 7055 7602 3760 9043 16542 16720 15908 21514 2410 2989 2057 3134 3597 4242 3361 4593 18589 18604 19162 24172 59691 62309 55198 77401 5459 5702 5745 7101 5768 7247 5064 7502 5633 6550 4821 7325 19294 20133 21171 25095 9290 9396 9447 12079 20126 19501 17824 26177 8896 6574 7787 11568 7840 8818 6935 10197 1172 1387 1169 1524 6813 6478 7019 8859 1806 1323 2635 2358 92097 93109 89618 119785 10045 11636 8613 13062 8144 9691 7363 10589 4297 5097 4027 5588 1022 1184 1011 1329 94427 74683 51415 122693 1013 1188 894 1317 118948 103479 73324 154579 5905 6537 6062 7678 2757 3321 2505 3585 13239 13832 11941 17215 8128 8299 7826 10568 3594 4227 3366 4674 4458 4298 4010 5796 2642 2839 2199 3435 40723 43351 37910 52951 35748 24956 32503 46483 2319 2560 1951 2675 4994 5600 5948 6494 2817 2857 2591 3663 45878 35972 42994 59315 1315638 1375835 1364300 1710000

Source : Department of Commercial Tax, GOB (Concluded)

91

Table A 2.2 : Act-wise / Circle-wise Collection 2015-16 (Up to September 2015) (Rs. lakh) Division / Circle

VAT

C.S.T

ENT. Tax

E.D.

ADV Tax

LUX Tax

Entry Tax

Patna Special Patliputra Central Division Patna West Patna Central Gandhi Maidan Patna South Danapur Shahabad Buxar Patna West Division Patna North Kadamkua Patna City East Patna City West Barh Biharsharif Patna East Division Sasaram Bhabhua Gaya Jehanabad Nawada Aurangabad Gaya Division Saran Siwan Gopalganj Muzaffarpur West Muzaffarpur East Hajipur Sitamarhi Motihari Raxaul Bettiah Bagaha Tirhut Division Darbhanga Samastipur Madhubani Janjharpur Begusarai Teghara Darbhanga Division Saharsa Madhepura Purnea Katihar Forbesganj Kishanganj Khagaria Supaul Purnea Division Bhagalpur Lakhisarai Munger Jamui Bhagalpur Division

203684 63505 267189 7093 5479 3764 8140 18514 3475 800 47265 6208 4251 8286 8215 3169 3069 33198 4408 2571 5238 1048 1853 2247 17364 1857 3260 1833 5804 3895 8285 2663 3835 495 1530 787 34242 4424 3029 2942 519 2943 406 14263 2797 1332 4266 2540 1559 1388 1148 217 15248 4381 753 1254 998 7386

662 302 964 52 65 61 55 62 8 8 311 38 23 51 114 32 10 269 31 181 62 0 3 26 304 2 10 3 23 38 97 7 11 8 11 1 211 6 160 1 0 29 16 213 4 1 81 30 29 18 6 0 169 25 6 7 14 53

0 1753 1753 52 1 20 0 8 10 9 100 59 0 0 9 5 17 91 4 3 28 0 9 8 52 12 8 8 16 17 28 21 18 6 6 4 144 20 12 12 0 11 2 57 15 3 21 13 8 3 3 1 68 25 3 1 1 29

8100 0 8100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 2 0 5 0 0 0 0 6 0 0 0 0 0 0 0 0 0 2 0 18 0 19

0 0 0 9 9 9 1 0 0 0 29 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 102 21 44 4 3 5 0 179 27 4 0 2 1 8 43 3 1 45 0 1 2 52 2 9 1 10 4 0 1 2 0 4 0 33 3 1 1 0 2 1 8 1 1 9 6 1 1 0 0 20 12 0 1 1 13

86961 28430 115391 1148 2269 1308 3188 2055 497 137 10601 1750 880 4256 2063 4082 420 13452 770 517 1833 48 374 6606 10147 779 647 626 3434 984 1810 511 1127 113 417 9 10455 1232 1133 399 27 116563 120 119473 560 342 2483 676 366 611 155 0 5194 7370 197 634 86 8286

Source : Department of Commercial Tax, GOB

92

P. Tax 19 11 30 17 24 5 6 96 4 1 153 8 2 0 1 2 3 17 3 1 6 1 0 1 11 3 2 4 5 7 2 7 2 0 13 0 45 19 85 1 1 2 1 109 1 1 2 20 18 2 1 0 45 29 1 2 0 33

Total

Target

299426 94001 393427 8472 7868 5211 11394 20738 3999 956 58638 8091 5161 12593 10405 7292 3527 47070 5218 3273 7212 1097 2239 8890 27930 2654 3935 2474 9292 4944 10222 3211 4996 621 1981 801 45132 5705 4425 3357 548 119549 545 134129 3378 1681 6862 3284 1982 2023 1314 218 20743 11842 961 1917 1100 15820

354750 112847 467597 10902 9880 5829 13810 18859 3795 1717 64792 11440 5752 12803 10868 11882 3799 56544 7370 5000 9908 1556 2309 10757 36901 3232 4347 3642 12221 5591 12051 3731 4981 698 4193 741 55427 6656 5795 3049 628 144434 728 161290 3644 1996 7915 4451 2523 2678 1884 0 25092 16821 1239 2803 1506 22369

Table A 2.3 : District-wise No. of Document and Revenue from Stamp Duty and Registration Fees (Rs. crore) No. of Document

Registration Fees

Stamp Fee

Total Receipt

Target

District 2013-14

2014-15

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

71860 30533 26121 14534 25356 14952

66950 26292 25843 13810 15584 14274

135 19 18 11 18 8

119 16 18 11 19 8

470 59 56 34 52 23

406 53 56 32 54 23

606 77 74 45 69 31

526 69 74 42 73 31

700 80 72 48 75 35

780 97 91 56 87 38

Gaya Jehanabad Arwal Nawada Aurangabad

38915 9885 5488 18310 23955

35380 9274 5237 17003 23905

29 6 3 9 15

27 6 3 9 15

92 20 9 27 45

87 21 9 28 45

121 26 12 36 59

114 27 13 37 60

140 26 11 38 64

160 33 13 45 75

Saran Siwan Gopalganj

36339 35287 29051

34245 35083 29847

19 19 17

20 21 18

54 54 49

56 59 53

73 73 66

76 80 72

78 87 70

92 95 83

West Champaran East Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

44313 67862 57337 41681 8200 33937

42289 62345 52436 40244 7390 33632

18 34 47 22 3 24

18 34 42 21 3 24

52 95 134 62 10 70

50 95 117 59 9 70

71 128 181 84 14 94

68 129 159 81 12 94

80 134 182 87 15 100

90 158 230 105 17 118

Darbhanga Madhubani Samastipur

37020 46837 47470

34452 44662 46816

23 22 20

23 22 22

65 60 56

66 60 66

88 82 76

89 82 88

99 87 95

115 100 96

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

26523 7883 8297 10062 15408 13723

25396 7161 7450 8823 14529 12486

22 7 3 5 6 8

20 7 3 5 6 7

66 21 10 16 19 21

60 20 9 16 19 20

88 28 13 21 25 29

79 27 12 21 25 27

92 30 16 27 26 33

106 32 14 25 30 34

Bhagalpur Banka

27220 16817

23660 15295

23 9

21 8

72 25

66 23

95 34

88 31

113 40

117 40

Saharsha Supaul Madhepura

21541 25402 21561

19224 22773 18870

11 9 10

11 10 10

33 26 28

34 27 27

44 35 38

45 37 37

50 72 43

56 36 46

Purnea Kishanganj Araria Katihar

38285 25382 33057 42120

34841 25749 33635 40573

21 9 13 17

21 9 14 17

63 26 37 48

63 27 40 51

83 35 51 65

84 36 54 68

85 40 56 74

102 42 62 84

1098524

1027458

711

688

2159

2080

2869

2768

3200

3600

Total

2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15

Sources: Department of Registration, Excise and Prohibition, Government of Bihar;

________________

93

CHAPTER III AGRICULTURE AND ALLIED SECTORS

After the bifurcation of the state, the present Bihar does not have any mineral resources or a sizeable industries sector. The growth of agricultural sector, therefore, assumes great significance for the overall growth of Bihar’s economy. The base of agriculture in Bihar is its soil, with abundant water resources, particularly ground water. On different soil categories found in different agro-climatic zones, the farmers in Bihar grow a variety of crops. Apart from foodgrains (cereals and pulses), the state also produces oilseeds, fibre crops, sugarcane, fruits, vegetables and other crops. Recently, there has been a diversification in production, as floriculture has caught the imagination of the farmers because of the increasing demand of flowers. The state government is trying utmost to bridge the rural-urban divide by promoting higher agricultural growth. The Agriculture Road Map II tries to ensure that the farm productivity steadily rises. The state government has introduced a strong agricultural monitoring system to ensure the sector’s continuous growth. The support services in irrigation, seeds, fertilizer, farm mechanization, agricultural credit and awareness programmes are being stressed to make agriculture more productive. The total geographical area of 93.6 lakh hectares of Bihar has three distinct agro-climatic zones — North-West, North-East and South. The North-West zone has 13 districts. This zone receives an annual rainfall of 1040-1450 mms, and the soil here is mostly loam or sandy loam. The North-East zone has 8 districts and it receives rainfall ranging from 1200-1700 mms. The soil here is loam or clay loam. Finally, the South zone, having 17 districts, receives an average annual rainfall of 990-1300 mms. and the soil is sandy loam, loam, clay and clay loam. The details of agriculture and allied sectors are presented in this Chapter under the following major heads — Rainfall, Land Utilization, Production and Productivity, Irrigation, Agricultural Inputs, and Agricultural Credit. Under Allied Activities, the Chapter discusses the performance in Animal Husbandry and Fishery sectors. 3.1 Rainfall Bihar’s water resources are indeed abundant, as it receives an average of 1009 mms. of rainfall each year. This rainfall is largely due to south-west monsoon, which accounts for around 85 percent of the total rainfall in the state. The annual rainfall is reasonably adequate for the state’s agricultural operations. However, it is the year-to-year variation in rainfall which tends to create flood or draught-like situations in the state in some years. This causes serious damage, particularly to crop production, which affects the state economy in many ways. During the period 2001 to 2013, the annual rainfall has varied from being 678 mms. in 2010 to 1506 mms. in 2007. The total rainfall has been substantially lower than the normal in 4 out of the last 5 years. The rainfall pattern of the state is presented in Table 3.1. 94

Table 3.1 : Annual Rainfall for Different Seasons (Rainfall in mm.) Winter Rain (Jan-Feb)

Hot-Weather Rain (March-May)

2001

20.90 (124.8)

86.70 (115.9)

908.20 (107.7)

192.20 (297.4) 1208.00 (121.4)

2002

48.90 (291.9)

66.80

(89.3)

896.90 (106.4)

33.20 (51.4) 1045.80 (105.1)

2003

19.20 (114.6)

93.00 (124.3)

767.60 (91.1)

128.90 (199.5) 1008.70 (101.4)

2004

23.70 (141.5)

41.40

(55.3)

906.10 (107.5)

60.10 (93.0) 1031.30 (103.7)

Year

Southwest Monsoon (June-Sept)

Northwest Monsoon (Oct-Dec)

Total

2005

0.10

(0.6)

89.50 (119.7)

777.60 (92.3)

30.20 (46.7)

897.40 (90.2)

2006

0.10

(0.6)

88.97 (118.9)

925.86 (109.8)

27.77 (43.0) 1042.70 (104.8)

2007

28.34 (169.2)

76.40 (102.1) 1360.85 (161.5)

40.49 (62.7) 1506.08 (151.4)

2008

30.61 (182.7)

61.78

19.31 (29.9) 1195.97 (120.2)

(82.6) 1084.27 (128.6)

2009

0.09

(0.5)

98.22 (131.3)

699.17 (83.0)

71.13 (110.1)

868.61 (87.3)

2010

0.74

(4.4)

49.30

584.40 (69.3)

43.41 (67.2)

677.85 (68.1)

2011

5.20

(31)

79.40 (106.1) 1028.00 (122.0)

(65.9)

0.50

(0.8)

1113.1 (111.9)

2012

11.20 (66.9)

31.30

(41.8)

704.20 (83.5)

51.20 (79.2)

797.9 (80.2)

2013

17.10 (102.1)

73.80

(98.7)

518.40 (61.5)

164.30 (254.3)

773.6 (77.8)

2014

33.30 (198.8)

96.10 (128.5)

788.30 (93.5)

41.90 (64.8)

959.6 (96.5)

2015 (Up to 11.70 (69.9) 89.30 (119.4) 693.30 (82.3) – – September) Average 17.11 73.76 853.56 64.62 1009.04 (2001-2014) Note: Figures in parentheses denote actual rainfall as the percentage of average Source: Directorate of Economics and Statistics, GOB Chart 3.1 : Annual Rainfall in Bihar 1600 1400 Average Rainfall

Rainfall in mm

1200 1000 800 600 400 200 0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

The rainfall pattern in various districts of Bihar in 2014 and 2015 (up to September) can be observed from Table A 3.1 (Appendix). The annual rainfall varies in different districts, as they fall in different agro-climate zones. Just as some parts of the state are draught-prone, 95

other districts are flood-prone. In 2015, the state had about 18 percent deficit rainfall under south-west monsoon. From Table A3.1 (Appendix), it is observed that around 19 districts received less than the average rainfall. 3.2 Land Utilisation The proportion of total land put to agricultural use is high in Bihar, compared to other states of India. This is because of its topographical nature, as it falls in the riverine plains of the Ganga basin. Table 3.2 presents the land-use pattern in the state from 2010-11 to 2012-13. A glance at the data would reveal that this pattern has remained nearly the same over the years. The area under forests has remained unchanged at 6.6 percent and so has the area under permanent pastures at 0.2 percent. In 2010-11, net area sown was 56.2 percent and it has increased marginally to 57.7 percent in 2012-13. Simultaneously, there has also been an increase in gross sown area between 2010-11 (7194 thousand hectares) and 2012-13 (7778 thousand hectares). The cropping intensity has increased marginally from 1.37 in 2010-11 to 1.44 in 2012-13. Table 3.2 : Land Utilization Pattern (Area in '000 hectares) Land Use Geographical Area

2010-11

2011-12

9359.57 (100.0)

2012-13

9359.57 (100.0)

9359.57 (100.0)

(1) Forests

621.64

(6.6)

621.64

(6.6)

621.64

(6.6)

(2) Barren and Unculturable Land

431.72

(4.6)

431.72

(4.6)

431.72

(4.6)

1699.74

(18.2)

1702.54

(18.2)

1708.37 (18.3)

Land Area

1342.69

(14.3)

1345.57

(14.4)

1352.89 (14.5)

Water Area

357.05

(3.8)

356.97

(3.8)

355.48

(3.8)

(4) Culturable Waste

45.34

(0.5)

45.23

(0.5)

45.02

(0.5)

(5) Permanent Pastures

15.73

(0.2)

15.7

(0.2)

15.6

(0.2)

(6) Land under Tree Crops

244.56

(2.6)

244.57

(2.6)

246.34

(2.6)

(7) Fallow Land (excl. Current Fallow)

121.88

(1.3)

121.17

(1.3)

121.78

(1.3)

(8) Current Fallow

920.27

(9.8)

781.26

(8.3)

766.7

(8.2)

Total Unculturable Land (1 to 8)

4100.87

(43.8)

3963.83 (42.4)

3957.17 (42.3)

Net Sown Area

5258.70

(56.2)

5395.75 (57.6)

5402.39 (57.7)

Gross Sown Area

7194

7646.76

7777.52

Cropping Intensity

1.37

1.42

1.44

(3) Land put to Non-agricultural use

Note : The figures in parentheses denote percentage share in total geographical area Source : Directorate of Economics and Statistics, GOB

The land-use pattern for different districts of Bihar for the latest year 2012-13 is presented in Table A 3.2 (Appendix). An analysis would indicate that the pattern of land use exhibits substantial variation across the districts. This is due to the fact that the districts of Bihar belong to different agro-climatic zones. If one considers the net sown area of various districts for 2012-13, there exist 5 districts whose net sown area is more than 70 percent, whereas the average net sown area for the entire state is less than 60 percent. These districts are the 96

valuable agrarian tract of Bihar — Buxar (82.7 percent), Bhojpur (77.8 percent), Siwan (76.2 percent), Gopalganj (72.6 percent) and Madhepura (72.6 percent). On the other hand, there are 7 districts where net sown area is less than 50 percent of its geographical area. These districts are — Jamui (14.4 percent), Munger (31.9 percent), Gaya (34.2 percent), Banka (38.5 percent), Nawada (43.2 percent), Kaimur (45.6 percent) and Bhagalpur (49.7 percent). These are the districts where the cropping intensity is also low, compared to the state average. The cropping intensity is the lowest at 1.07 in Darbhanga. Cropping Pattern In Table 3.3, the cropping pattern in Bihar has been shown for the period 2010-11 to 201415. The data reveals that the agricultural economy of Bihar is very much tilted in favour of the subsistence sector, since the acreage under foodgrains, even after a decrease in recent years, is more than 90 percent. Recently, acreage under pulses has shown a marginal decline, creating shortage of pulses. Table 3.3 : Cropping Pattern Percentage of area Crops 2010-11

2011-12

2012-13

2013-14

2014-15

Foodgrains

92.06

93.01

93.02

92.89

93.25

Cereals

84.03

85.73

85.9

85.8

86.16

Pulses

8.03

7.28

7.11

7.08

7.09

Oilseeds

1.94

1.85

1.59

1.74

1.63

Fibre Crops

2.27

2.11

1.94

1.71

1.56

Sugarcane

3.73

3.03

3.46

3.66

3.51

Total Area

100.00

100.00

100.00

100.00

100.00

Source : Department of Agriculture, GOB

3.3 Production and Productivity The fertility of soil and the abundant ground water resources enable the farmers of Bihar to produce a variety of crops, both food and non-food. Apart from major cereals and pulses, farmers of Bihar also produce oilseeds, fibres, fruits and vegetables. Of late, the farmers have also taken interest in growing flowers in view of its increasing demand, both domestic and external. In Table 3.4, the production of 34 most important crops of Bihar has been presented, for the period 2010-11 to 2014-15. From that table, it can be seen that the total cereal production in 2014-15 was 143.21 lakh tonnes, compared to 103.52 lakh tonnes in 2010-11. This rise is attributable to high increase in rice production in 2014-15. Taking into account the overall foodgrain situation, it is observed that, during the last 5 years, the production level of cereals has grown annually at 5.65 percent. This has increased the food security of the population. The growth rate of wheat production was negative, whereas for maize, the annual growth rate was 4.61 percent. For fibres also, the growth rate has been high (4.61 percent) and, for sugarcane, even higher (6.96 percent). 97

Table 3.4 : Production Levels of Major Crops (Production in '000 tonnes) Crops

2010-11

2011-12

2012-13

2013-14

2014-15

CAGR

Total Cereals

10352.1

17363.65

17286.69

15716.3

14321.164

5.65

Total Rice

3112.57

8237.98

8322.01

6649.59

8241.67

18.93

Autumn Rice

444.04

914.23

960.01

798.68

1010.34

16.29

Aghani Rice

2505.5

7141.12

7076.17

5634.96

7049.78

20.11

Summer Rice

163.03

182.63

285.83

215.95

181.56

3.90

Wheat

5094.03

6530.96

6174.26

6134.68

3570.21

-7.44

Total Maize

2108.19

2557.06

2755.95

2904.24

2478.75

4.61

Kharif Maize

468.52

622.42

926.32

778.21

825.15

14.51

Rabi Maize

922.28

1098.17

791

1199.39

913.78

0.70

Summer Maize

717.39

836.47

1038.63

926.64

739.82

1.65

2145.5

2594.71

2790.42

2932.03

2509.28

4.45

Barley

15.69

16.69

15.23

14.25

13.43

-4.58

Jowar

3.27

2.15

2.82

1.31

1.55

-18.03

Bajra

5.42

5.01

4.84

3.00

3.73

-11.84

Ragi

8.85

9.39

9.37

7.14

9.84

-0.61

Small Millets

4.08

4.41

2.21

2.09

1.98

-19.71

467.16

521.64

542.76

522.02

428.93

-1.69

30.28

27.82

29.5

30.96

33.69

3.26

13.23

11.87

12.15

14.14

14.36

3.44

Bhadai Moong

6.08

4.7

7.18

7.36

9.23

13.70

Kulthi

9.32

8.23

7.75

7.83

7.96

-3.59

Ghagra

0.24

0.57

0.78

0.34

0.43

6.66

Other Kharif Pulses

1.41

2.45

1.64

1.29

1.71

-2.48

436.88

493.82

513.26

491.06

394.48

-2.08

39.44

42.06

47.12

36.46

28.54

-7.59

Total Coarse Cereals

Total Pulses Total Kharif Pulses Urad

Total Rabi Pulses Arhar (Tur) Gram

59.38

76.82

86.19

70.34

57.49

-1.52

Lentil

162.22

171.61

183.24

196.05

140.06

-1.59

19.8

19.23

19.25

18.35

17.31

-3.10

Khesari

73.17

92.07

83.8

70.55

60.06

-6.40

Summer Moong

81.26

90.1

92.13

98.01

90.73

3.09

1.61

1.93

1.53

1.30

1.05

-11.77

Total Oilseeds

142.24

174.48

182.74

157.17

127.01

-3.26

Castor seed

0.16

0.1

0.1

0.15

0.09

-6.77

Safflower (Kusum)

0.06

0.23

0.08

1.32

0.08

26.15

Pea

Other Rabi Pulses

Sesamum

2.02

2.25

1.95

1.99

2.56

3.56

Sunflower

24.98

22.87

22.26

19.79

16.64

-9.13

Mustard & Rapeseed

95.82

127.93

138.52

117.14

92.89

-1.49

Linseed

18.83

20.27

19.05

15.87

14.16

-7.83

Groundnut Total Fibre Crops Jute Mesta Sugarcane

0.37

0.83

0.78

0.91

0.59

10.68

1309.41

1738.81

1717.73

1745.08

1637.12

4.61

1164.59

1490.7

1490.24

1498.08

1418.71

4.08

144.82

248.11

227.49

247.00

218.41

8.52

15498.95

6.96

11827.66 11288.58 12741.42 12881.78 Source: Directorate of Economics and Statistics, GOB

98

Table 3.5 : Productivity Level of Major Crops (Kgs/ha) Triennium Average (2005-08)

Crops

2012-13

2013-14

2014-15

Total Cereals

1493

2776

2595

2328

Total Rice

Percentage Triennium change Average between (2012-15) trienniums 2566 71.89

1284

2523

2110

2526

2386

85.85

Autumn Rice

868

1776

1454

1739

1656

90.82

Aghani Rice

1350

2667

2246

2711

2541

88.25

Summer Rice

1557

2719

2342

2207

2423

55.60

Wheat

1915

2797

2855

1657

2436

27.22

Total Maize

2549

3975

3966

3508

3816

49.72

Kharif Maize

1380

3549

2814

2974

3112

125.53

Rabi Maize

3477

3264

4522

3630

3805

9.44

Summer Maize

3223

5468

4820

4171

4820

49.54

Total Coarse Cereals

1956

3868

3877

1168

2971

51.89

Barley

1104

1460

1398

1109

1322

19.78

Jowar

1035

1071

1065

1068

1068

3.19

Bajra

1067

1140

1138

1134

1137

6.59

Ragi

789

1181

1015

1474

1223

55.05

Small Millets

752

765

754

757

759

0.89

1606

1052

1044

848

981

-38.90

860

871

886

892

883

2.67

Urad

782

864

912

913

896

14.62

Bhadai Moong

602

813

805

838

819

35.99

Kulthi

872

968

952

957

959

9.98

Other Kharif Pulses

578

751

752

757

753

30.33

Total Pulses Total Kharif Pulses

Total Rabi Pulses

746

1065

1056

843

988

32.44

Arhar

949

2132

1667

1438

1746

83.95

Gram

919

1402

1147

958

1169

27.20

Lentil

753

1147

1272

916

1112

47.63

Pea

942

1041

1060

1010

1037

10.08

Khesari

826

1179

1116

990

1095

32.57

Summer Moong

594

624

672

579

625

-

1101

1010

1000

1037

996

1431

1279

1093

1268

27.28

Castor seed

944

960

956

958

958

1.48

Safflower (Kusum)

800

808

805

804

806

0.71

Sesamum

788

882

872

874

876

11.17

Sunflower

1339

1412

1410

1429

1417

5.83

Mustard & Rapeseed

967

1595

1374

1100

1356

40.26

Linseed

851

867

850

861

859

0.98

Ground Nut

494

1022

1024

1023

1023

107.09

Jute

9967

2180

2571

2694

2482

-75.10

Mesta

9185

2325

2746

2402

2491

-72.88

40178 50896 49916 60938 53917 Source : Directorate of Economics and Statistics, GOB

34.19

Other Rabi Pulses Total Oilseeds

Sugarcane

99

5.22 -

The productivity levels for various crops in Bihar have been presented in Table 3.5. From the table, one can observe the comparative productivity levels, using the two triennium averages of productivity for 2005-08 and 2012-15. The last column of the table denotes the percentage change between the two trienniums. The average productivity of three important cereals for triennium 2012-15 are — 2386 kg/hect for rice, 2436 kg/hect for wheat and 3816 kg/hect for maize. For rice, there was 86 percent change in productivity between the two trienniums; for wheat, change was of the order of 27 percent; and for maize, the rise was 50 percent. Chart 3.2 : Total Production 9000

Production ('000 tonnes)

8000 7000 6000 5000 4000 3000 2000 1000 0 2005-06

2006-07

2007-08

Total Rice

2008-09

2009-10

Wheat

2010-11

2011-12

Total Maize

2012-13

2013-14

2014-15

Total Pulses

Chart 3.3 : Productivity Levels (kgs/ha)

4500

Productivity ( kgs/ha)

4000 3500 3000 2500 2000 1500 1000 500 0 2005-06

2006-07

Total Rice

2007-08

2008-09

2009-10

Wheat

2010-11

2011-12

Total Maize

100

2012-13

2013-14

Total Pulses

2014-15

Area and Production of Rice In Bihar, variation in agro-climatic conditions over the regions tend to influence the cropping pattern. In the following sections, a detailed discussion on the district-wise production of four important crops are presented. Table A 3.3 (Appendix) presents the district-wise production and productivity of rice in Bihar for two years, 2013-14 and 2014-15. The shares of each district in area and production are given in bracket. A look at these columns will reveal the relative position of the districts. The lead districts in each category are also revealed from the table. In the productivity column, the rank of each district has been presented alongside the productivity figure. In terms of production levels, the top three districts are — Rohtas, Aurangabad and West Champaran. According to productivity rankings in 2014-15, the top three districts are — Arwal, Rohtas and Sheikhpura. In 2014-15, the highest level of productivity was 4398 kg/hectare in Arwal. Area and Production of Wheat For an analysis of the production levels in wheat, the same methodology has been followed as in the case of rice. The district-wise shares of area and production of wheat for 2013-14 and 2014-15 have been presented in Table A3.4 (Appendix) from which one can find out easily the leading districts in terms of area and production. The productivity figures for wheat for each district have also been presented, along with their ranks in brackets. According to productivity rankings in 2014-15, the top three districts are — Jehanabad, Patna and Gaya. The highest productivity level in 2014-15 was 2859 kg/hectare, recorded by Jehanabad. In terms of production, top three districts in 2014-15 are — Rohtas, Kaimur and Siwan. Area and Production of Maize The shares of various districts of Bihar in the area and production of maize for 2013-14 and 2014-15 are presented in Table A3.5 (appendix). As per productivity ranking, the top three performing districts in 2014-15 are — Katihar, Madhepura and Saharsa. The highest productivity in 2014-15 is recorded for Katihar (6510 kg/hectare). From the production point of view, the top districts are — Katihar, Madhepura and Khagaria. Area and Production of Pulses The area, production and productivity of pulses have been presented district-wise for the year 2013-14 and 2014-15 in Table A3.6 (Appendix). For production, top three performing district in 2014-15 are — Patna, Aurangabad and Nalanda. As per productivity, the top three districts are — Kaimur, Patna and Darbhanga. The highest productivity in 2014-15 was recorded in Kaimur (1552 kg/hectare). On the basis of the preceding discussions, Table 3.6 has been prepared to indicate the status of top three districts in terms of production and productivity of four major crops — rice, wheat, maize and pulses. 101

Table 3.6 : Leading Districts for Production and Productivity of Rice, Wheat, Maize and Pulses

Crop

Top 3 Districts

Production / Productivity

2013-14

2014-15

Production

Rohtas, Aurangabad, Kaimur

Rohtas, Aurangabad, West Champaran

Productivity

Rohtas, Aurangabad, Kaimur

Arwal, Rohtas, Sheikhpura

Production

Rohtas, West Champaran, Muzaffarpur Rohtas, Kaimur, Siwan

Productivity

Samastipur, Sheohar, Muzaffarpur

Jehanabad, Patna, Gaya

Production

Katihar, Araria, Bhagalpur

Katihar, Madhepura, Khagaria

Productivity

Katihar, Bhgalpur, Araria

Katihar, Madhepura, Saharsa

Production

Patna, East Champaran, Lakhisarai

Patna, Aurangabad, Nalanda

Productivity

East Champaran, Lakhisarai, Patna

Kaimur, Patna, Darbhanga

Rice

Wheat

Maize

Pulses

Area and Production of Vegetables The agro-climatic conditions in the state are extremely suited for the production of vegetables. The Gangetic alluvial soil is a major boon for the vegetable producers of the state. Bihar ranks first among all the states in terms of vegetable production, and vegetables are exported to far-off states. In Table 3.7, the area and production of vegetables in Bihar are presented for the years 2012-13 to 2014-15.

From the table, it is found that there has been a modest increase in the area and production for major vegetables between 2012-13 and 2014-15. For example, the production of potato grew annually by 2.57 percent and onion by 3.43 percent. For other vegetables like tomato, cauliflower, brinjal, cabbage and carrot, the growth rate has been negative. The total vegetable production recorded a small decline (0.42 percent) between the two years. In 201415, the total vegetable production in Bihar was 144.99 lakh tonnes, whereas in 2012-13, it was 148.99 lakh tonnes. In 2014-15, out of a total of 144.99 lakh tonnes, potato accounted for 63.46 lakh tonnes, onion accounted for 12.47 lakh tonnes, tomato 10.46 lakh tonnes, cauliflower 10.04 lakh tonnes, brinjal 11.42 lakh tonnes and other remaining items accounted for 5.86 lakh tonnes.

The district-wise production along with the area for different vegetables are presented in Table A 3.7 (Appendix) for two years (2013-14 and 2014-15). From the table, it emerges that Nalanda, Patna and Saran are the lead districts in terms of production of potato. For onion, Nalanda, Patna and Katihar are the lead districts, whereas for cauliflower, the lead districts are Vaishali, Muzaffarpur, Nalanda and Samastipur. 102

Table 3.7 : Area and Production of Vegetables (Area in ‘000 hectare/Production in ‘000 tonnes) Year

Area/ Production

Potato

Area

Onion

Tomato

315.73

51.01

46.11

65.93

40.21

5851.99

1081.17

1061.79

1149.58

734.79

318.45

54.32

47.69

65.73

40.00

6536.00

1304.16

1061.77

1147.76

734.98

318.99

54.30

47.73

65.70

39.00

Production

6345.56

1247.31

1046.44

1003.55

695.33

CAGR*

Production

2.57

3.43

-0.58

-2.21

-0.45

Year

Area/ Production

2012-13

2013-14

2014-15

2012-13

2013-14

2014-15 CAGR*

Year

Production Area Production Area

Area

Brinjal

Okra (bhindi)

Chilli

Cauliflower

Cabbage

Bottlegourd Cucumber

57.28

58.09

39.20

31.64

2.06

1341.20

786.06

478.17

658.90

22.88

57.49

58.08

39.49

31.73

2.06

1240.49

783.54

478.13

658.11

22.88

57.60

57.71

44.82

40.27

4.02

Production

1141.57

762.90

418.33

631.54

67.04

Production

-1.49

-1.17

-2.10

-1.46

22.34

Production Area Production Area

Area/ Muskmelon Production

Bittergourd

Pea

Watermelon

1.13

6.45

9.67

9.62

1.41

14.15

69.47

70.00

67.15

30.67

1.13

6.46

9.68

10.16

1.41

14.15

69.48

70.01

67.15

30.67

1.46

6.59

9.71

10.24

1.99

Production

12.82

69.72

67.25

65.85

29.88

CAGR*

Production

-3.43

-3.54

-1.72

-2.38

-1.58

Year

Area/ Production

Sweet Potato

Radish

Others

4.70

0.41

16.01

91.97

848.63

55.33

8.31

252.33

1164.57

14898.51

4.63

0.85

16.01

40.28

805.66

54.34

8.32

252.35

597.86

15132.14

9.27

1.03

24.10

48.97

843.49

Production

53.45

8.34

246.55

585.53

14498.94

Production

-1.56

-1.32

-0.80

-18.83

-0.42

2012-13

2013-14

2014-15

2012-13

2013-14

2014-15 CAGR*

Area

Pointed gourd

Production Area Production Area

Area Production Area Production Area

Carrot

Note: *CAGR is calculated for 5 years (2010-11 to 2014-15) Source: Department of Agriculture, GOB

103

Total

Area and Production of Fruits Bihar is known all over India for its litchi and mango. Bihar litchi is sold in all the regions of India. Litchi from Muzaffarpur is a ‘brand name’ for its taste, the ‘Shahi Litchi’ being the most famous. The Malda variety of mango is another juicy member in the fruit basket of Bihar. The levels of production of eight major fruits in Bihar in 2014-15 were — mango (1272 thousand tonnes), guava (370 thousand tonnes), litchi (198 thousand tonnes), lemon (129 thousand tonnes), banana (1527 thousand tonnes), pineapple (116 thousand tonnes), papaya (43 thousand tonnes) and amla (15 thousand tonnes) (Table 3.8). However, for litchi, lemon and pineapple, one observes a downward trend in production. For other fruits, the annual growth rate in production is positive and it is particularly high for guava (14.2 percent) and papaya (3.1 percent). Table 3.8 : Area and Production of Fruits (Area in ‘000 hectare/Production in’000 tonnes) Year

Area/ Production Area

Mango

Guava

Litchi

Lemon

Banana

135.86

29.7

31.14

17.95

33.58

1343.32

238.08

233.86

130.9

1414.03

148.78

29.96

32.17

17.95

35.26

1477.44

373.71

258.69

128.90

1723.87

148.37

29.40

32.20

17.96

34.64

Production

1271.62

369.96

197.70

128.72

1526.50

CAGR*

Production

0.77

14.20

-1.84

-0.68

1.00

Year

Area/ Production

Pineapple

2012-13 Production Area 2013-14 Production Area 2014-15

Area

Papaya

Amla

Others

Total

4.16

1.92

1.61

32.07

295

113.91

48.5

14.83

297.12

3834.56

4.16

1.76

1.69

32.09

303.81

113.91

43.27

14.96

323.61

4458.36

4.21

1.88

1.69

76.30

346.64

Production

116.37

43.48

14.90

310.58

3979.82

Production

-3.53

3.09

0.25

1.86

1.58

2012-13 Production Area 2013-14 Production Area 2014-15 CAGR*

Note : *CAGR is calculated for 5 years (2010-11 to 2014-15) Source : Department of Agriculture, GOB

There is widespread variation across districts in Bihar in terms of fruit production. This is depicted in Table A 3.8 (Appendix). In the table, the district-wise area and production for four important fruit crops have been presented, for 2013-14 and 2014-15. These fruit crops are — mango, litchi, guava and banana. The table also presents the share of each district in area and production. 104

Considering the production levels for mango in 2014-15, one finds that the lead districts are Darbhanga, Samastipur and East Champaran. For guava, the lead districts are — Nalanda, Rohtas and Bhojpur. For litchi, Muzaffarpur easily dominates the scene. For banana, Muzaffarpur, Vaishali and Samastipur are the leading producers. Area and Production of Flowers The up-to-date data for the flower sector is not available for 2014-15. Since flower is an important sector, we are providing analysis up to 2013-14. Flower production in Bihar has increased recently, providing immense opportunity of employment and income in rural areas of Bihar. In Table 3.9, the area and production of various flowers of Bihar have been presented for the period 2009-10 to 2013-14. From the table, it is evident that about 99 tonnes of rose, 6799 tonnes of marigold, 318 tonnes of jasmine (Bela) and 536 tonnes of the tuberose were produced in 2013-14 in Bihar. Over the period 2009-10 to 2013-14, the rate of growth of rose and marigold was higher at 5.51 percent and 7.80 percent, respectively. Table 3.9 : Area and Production of Flowers (Area in hectare/Production in tonnes) Year

Area/ Production

Rose

Area

63.55

269.85

91.6

87.45

113.9

626.35

Production

80.86

4877.97

268.39

435.05

966.91

6629.18

Area

68.05

283.15

105.15

105.25

126.05

687.65

Production

86.52

5119.66

307.46

522.94

1068.23

7104.81

72.9

359.95

113.5

116.65

138.85

801.85

Production

95.14

6565.8

348.32

595.45

1210.04

8814.75

Area

73.64

314.70

113.4

110.15

132.6

744.49

Production

98.90

5603.12

317.66

535.84

1080.23

7635.75

Area

73.59

363.48

113.4

110.15

132.6

793.22

Production

98.90

6798.68

317.66

535.84

1080.23

8831.31

Production

5.51

7.80

3.77

4.51

2.36

6.70

Marigold

Jasmine (Bela)

Tube Rose

Others

Total

2009-10

2010-11 Area 2011-12

2012-13

2013-14 CAGR

Source : Department of Agriculture, GOB

There is wide variation in the area and production of various flowers across the districts. This is clear from Table A 3.9 (Appendix). For rose, the leading districts in terms of production in 2013-14 are Vaishali (8.6 percent), Patna (8.0 percent) and Muzaffarpur (7.6 percent). For marigold, in terms of production in 2013-14, the leading districts have been Patna (14.9 percent), Muzaffarpur (9.2 percent) and Vaishali (9.0 percent). For jasmine (Bela), the leading districts in terms of production in 2013-14 are Gaya (7.9 percent), Muzaffarpur (7.5 percent) and Vaishali (7.3 percent). The figures in the brackets indicate percentage share of above districts in the total production of the state. The rankings has been done in comparison with the population of the above districts in the total population. The production shares were then compared with the population share of the above districts to arrive at the conclusions. 105

Area and Production of Sugarcane The sugar industry is an important component of agro-based industry in the state, providing direct employment in the producing units and indirect employment through its ancillaries and associated activities. The total cultivable land in the state is around 53 lakh hectares, of which almost 3 lakh hectares is under sugarcane. The total production of sugarcane was 15499 thousand tonnes in 2014-15, recording of an average productivity of 60.94 tonnes/hectare. The district-wise area and production of sugarcane is presented in Table A3.10 (Appendix). The share of each district for area and production are shown in the brackets for each district, for the latest year 2014-15. Considering the share of area and production of sugarcane, one finds that West Champaran and East Champaran are the lead districts. In terms of productivity, the lead districts are — East Champaran, Nalanda and Jehanabad. The highest productivity of 106 tonnes/hectare is recorded in East Champaran. As sugarcane has considerable potential for development of agro-based industries in Bihar, the state government has a number of schemes to enhance its productivity and production. These schemes are : (a)

A subsidy scheme of Rs. 135 per quintal for purchase of certified sugarcane seeds of improved varieties.

(b)

An incentive scheme of Rs. 55 per quintal, for multiplication of certified seeds.

(c)

An incentive scheme of subsidy for the sugar mills, for producing base seed and breeder seed.

(d)

A scheme of farmers’ training to promote the use of improved variety of sugarcane in states where such varieties are extensively grow.

(e)

A scheme of an incentive amount to promote inter-cropping and use of diesel for irrigation purposes.

3.4 Irrigation One of the foremost input requirements of agriculture is the timely availability of irrigation for agricultural operations. Needless to say, newer and modern techniques of agriculture can succeed only when there exist facilities of assured irrigation. Therefore, under Agricultural Road Map II, the state government has identified the following targets for expansion of irrigation potential in Bihar : (a)

There will be a strategy to increase the irrigation potential to 101.09 lakh hectares by March, 2017.

(b)

The summer irrigation potential is to be increased from 3.0 lakh hectares to 30.6 lakh hectare by March, 2017.

(c)

It is proposed to establish 14.64 lakh private tubewells by 2022.

(d)

There is a proposal for extensive renovation of about 1770 Ahar/Pynes by March, 2017.

(e)

There is a proposal to interlink rivers to transfer surplus water of North Bihar rivers by pumping through the Ganga by 2022. 106

A more detailed report on the status of irrigation in Bihar is included in Chapter 5 which presents the infrastructural base of the state. 3.5 Agricultural Inputs For a highly productive agriculture sector, there is a need for adequate and quality inputs, besides fertile land and assured irrigation. These inputs include — seeds, fertilizer, farm equipment and highly efficient extension services. One should also remember here that all these inputs in agriculture need to be supplied at the proper time, matching the agricultural calendar. Seeds The modern agricultural operations are highly dependent on the availability of quality improved seeds. The Agricultural Road Map II of Bihar, therefore, stressed the need of producing quality, improved seeds and making it easily available to the farmers in proper time. The proper application of such seeds and maintaining a desired level of SRR (Seed Replacement Rate) are important determinants of agricultural productivity. As there was dearth of firms producing seeds in Bihar, the SRR was often low in Bihar in the past. The state government, therefore, is making all efforts for increasing the SRR in the state. Table 3.10 : Distribution of Certified Seeds and Seed Replacement Rate (SRR) for Important Crops (Requirement and supply in '000 qntl./SRR in percentage) 2012-13 Crops

Requirement

Supply

2013-14 SRR

Requirement

Supply

2014-15 SRR

Requirement

Supply

SRR

Kharif Crops 297.00

279.70

40.20

353.60

245.70

40.80

373.20

361.50

Maize

75.00

61.50

82.00

95.00

19.10

20.15







Urad

1.10

5.70

65.90

1.40

0.60

18.80

1.62



25.00

Moong

0.60

3.60

82.50

1.30

2.10

79.10







Paddy

38.75

Rabi Crops Wheat

840.00

849.90

35.40

840.00

817.20

35.70

864.00

795.50

35.58

Maize

130.00

114.80

85.00

130.00

126.40

85.00

207.00

207.00

90.00

Arhar

3.80

4.10

27.10

4.60

2.50

19.40

5.40

1.05

10.58

Gram

17.30

13.10

16.50

23.00

7.10

9.10

27.60

4.13

5.51

Masoor

12.90

7.30

11.40

20.80

3.57

5.67

25.80

7.08

11.35

3.30

5.10

100.00

3.30

2.60

39.80

3.46

3.06

49.04

Rapeseed/ Mustard

Source : Department of Agriculture, GOB

Under the Agriculture Road Map II, the production of certified seeds of the recently evolved crop varieties have been emphasised. As many as 23 crops were identified and promotion programmes for their seeds have been initiated by the state government. Other programmes include Chief Minister's Crash Seed Programme, Seed Village Programme (Beej Gram 107

Yojana) and provision of subsidy for the production and purchase of certified seeds. There has also been the revival of hitherto dormant Bihar Rajya Beej Nigam (BRBN), strengthening of Bihar Seeds Certification Agency, and multiplication of foundation and breeder seeds by state farms. Under these, 3 new seed processing plants were set up at Hajipur, Bhagalpur and Begusarai. These steps have led to increased crop productivity in the state. Recently, the scheme of 'Mukhyamantri Tibra Beej Vistar Yojana' has helped farmers in the field of paddy cultivation. The SRR for major crops like paddy, wheat and maize have increased substantially in recent years. More specifically, the SRR for self-pollinated crops have reached the scientific level of 33 percent. Table 3.10 reveals the status of SRR for various crops. For two cereals (paddy and wheat) the SRR has been nearly stabilised. For other crops, however, the SRR is less than the desired level. With higher production of certified seed, the situation is likely to improve in the coming years. Fertilizer Since the inception of Green Revolution in India, the use of fertilizers has played a vital role in increasing productivity of the agricultural crops. In Bihar also, along with the use of better quality seeds, use of chemical fertilizers in optimum quantity has played a key role in increasing agricultural productivity of many crops. The consumption of fertilizers has been steadily increasing in recent years (Table 3.11). In 2012-13, the total consumption of fertilizers in Bihar was 46.42 lakh tonnes, which came down to 41.16 lakh tonnes in 2014-15, registering a decrease of 11.3 percent in three years. However, this is not particularly worrisome, as the farmers are recently replacing chemical fertilizers with eco-friendly bio-fertilizers. Table 3.11 : Consumption of Fertilizers ('000 tonnes) Type of Fertilizer

2012-13 Kharif

Rabi

2013-14 Total

Kharif

Rabi

Urea

903.03 1192.93 2095.96

DAP

216.52

325.16

541.68

94.52

265.63

SSP

37.13

27.42

64.55

29.96

MOP

44.53

69.3

113.83

0

21.41

98.83

178.83

Ammonium Sulphate Complex Sub Total

Total

861.95 1008.69 1870.64

Kharif

Rabi

Total

864.29 1076.11

1940.4

360.15

128.58

224.13

352.71

28.75

58.71

26.08

30.73

56.81

51.17

88.81

139.98

54.59

99.13

153.72

21.41

6.78

7.19

13.97

1.28

2.38

3.66

277.66

40.67

117.26

157.93

76.01

186.04

262.05

1300.04 1815.05 3115.09 1085.05 1516.33 2601.38 1150.83 1618.52 2769.35

N

470.89

640.39 1111.28

P

128.67

196.92

K

32.21

57.81

Total (NPK)

2014-15

631.77

421.71

533.24

954.95

433.12

567.27 1000.39

325.59

57.15

152.7

209.85

82.35

152.76

235.11

90.02

34.01

61.97

95.98

39.37

71.79

111.16

895.12 1526.89

512.87

747.91 1260.78

554.84

791.82 1346.66

Grand Total 1931.81 2710.17 4641.98 1597.92 2264.24 3862.16 1705.67 2410.34 4116.01 Consumption of 158.53 207.01 183.76 127.17 171.5 150.2 138.1 181.78 160.82 fertilizer (kg/ha.) Source : Department of Agriculture, GOB

108

From Table 3.11, one may also observe a trend towards a more balanced use of fertilizers in the last two years. The NPK (Nitrogen, Phosphorous and Potassium) ratio for the last three years has been 12:4:1 (2012-13) and 10:2:1 (2013-14) and 9:2:1 (2014-15). In some earlier years, it was even more balanced — 6:2:1 (2008-09) and 5:1:1 (2009-10). This would mean that there has been some rationalization in the use of fertilizer components by the farmers. Table 3.11 also indicates that urea takes the most important place and constitutes around 72 percent of the total chemical fertilizer consumption. It can also be noted that, although kharif crops are the most important crops in Bihar, the use of chemical fertilizers is comparatively higher for rabi crops. In 2014-15, whereas the farmers used 138 kgs/ha for kharif crops, they used 182 kgs/ha for rabi crops. Besides NPK, the state government is making concerted efforts to promote bio-fertilizers and green manure technique on a larger scale. Apart from the central subsidy, the state government is providing additional subsidy for the use of micronutrients. Under the Agriculture Road Map II, the state government is pressing for the cultivation of 'Dhaicha' and ‘Moong’, the green manure plants. The process has evoked immense response from the farmers. Extension Services An efficient team of extension workers can go a long way in transferring the most modern technology to the farmers at the field level. This team can work as a catalyst for seed management, use of optimum mix of chemical fertilizer (on the basis of land chemistry), newer cropping pattern, and wider use of high yielding variety (HYV) seeds. With the introduction of subject-matter specialist and 'Kisan Salahkar' at the sub-Block level, the working of the extension services has grown manifold in Bihar in recent years. A massive training programme to modernize the knowledge of farmers through 'Kisan Pathshalas' has gained momentum. They are attending these 'schools' to have the first-hand knowledge of soil-testing methods, vermi compost, and new SRI (System of Rice Intensification) technique of paddy cultivation. The 'Kishan Vikas Shivirs' have become a platform for exchange of ideas between experts and farmers. 'Rabi and Kharif Mahotsavs' are being organised at the block level, before the onset of crop season. During 2011-12, 16 districts were selected for the introduction of SRI technique for paddy cultivation. During 2012-13, SRI technique for wheat cultivation was also demonstrated in those districts. They were based on 'zero tillage' methods. The farmers are now attracted to SRI technique and 'Dhaicha' cultivation. During 2014-15, most of the districts have been covered by SRI technique for rice cultivation. The Kisan Vikas Shivirs are involved in the distribution of all agricultural inputs and related subsidies. The farmers purchase inputs like seed, bio-fertilizers or farm implements in these camps. During kharif season of 2012 and 2013, several steps were undertaken to promote agriculture on a fast track. In recent times, Dhaicha seeds are distributed to farmers free of cost. The implementation of the green manure technology will have far-reaching effect in keeping intact the soil fertility. The steps taken by the state government resulted in record rice and wheat production in the state. The productivity of the rice rose to a record high of 25.3 quintals per hectare. 109

Farm Mechanization It is a historical fact that, with increasing mechanization, economies of scale starts operating in agriculture and the cost of cultivation diminishes, leading to higher productivity. So, optimal level of mechanization can go a long way in ushering in low-cost agriculture. Through mechanisation, the agricultural operations are completed in time and it also lessens the drudgery associated with manual agricultural occupation. Thus, farm mechanization is an integral part of Agricultural Road Map II of the state government. The state government is providing subsidy, in addition to the subsidy provided under the centrally sponsored scheme, for power tillers, tractors, sprayers, winnowing machine, power weeders and power threshers. The focus is on zero tillage machine which is more suitable for small and marginal farmers. Because of easy availability of subsidy, some equipments which were earlier rare in rural areas have now become a common phenomenon. In Table 3.12, the progress of farm mechanization in Bihar through subsidy has been presented for the period 2009-10 to 2014-15. It can be seen from the table that, against 3672 tractors in 2009-10, the number had gone up to 9062 in 2014-15. However, there was a drop in the number of power tillers distributed in next two years. There is also decrease in the number of pumpsets distributed. In 2013-14, as many as 18.0 thousand pumpsets were distributed. Because of the earnestness of the extension workers, there was a quantum jump in the use of zero-tillage machines. As against a 860 such machines distributed in 2009-10, the number rose to 9760 in 2013-14. In 2014-15, the progress become slower and only 1348 machines were distributed. In case of combine harvesters, the growth rate is rather low, because of its high cost. In 2013-14, 261 combine harvesters were given to the farmers; but in 2014-15, there were 164 farmers who acquired this machine. Table 3.12 : Number of Farm Implements Distributed on Subsidy (In numbers) Farm Implements Tractor Combine Harvestors Zero Tillage Pumpsets Power Tiller Manually operated tools/implements Threshers

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

3672

3644

3848

8158

5053

9062

42

65

109

322

261

164

860

301

3787

7701

9760

1348

37293

30340

28615

25520

18019

16203

4635

5330

7567

6445

4293

2043

245969

179790

146849

485209

43078

31526

5723

4316

4857

4984

3652

1438

Source : Department of Agriculture, GOB

Organic Farming Throughout the world, agricultural scientists are taking interest in organic farming on the ground of both health and environment. Bihar is not trailing much far in this sphere. The promotion of organic farming has been made a part of the Agricultural Road Map II of Bihar to retain the inherent fertility of soil for the future generation. This programme would cost 110

Rs. 255 crore over a period of 5 years. The vermi-compost production has been made demand-based, with a provision of 50 percent subsidy. Earlier, the production of at least 3000 tonnes of vermi-compost by any commercial unit used to be subsidised. Now, the ceiling has been brought down to 1000 tonnes. The state government has also allowed subsidy for the purchase of vermi-compost from 2011-12. During 2013-14, a total of Rs. 149.79 crore has been spent on promoting organic farming. The Integrated Pest Control programme has also been undertaken for controlling insect, pest and diseases from the stage of seed sowing to standing crops. Horticulture Development Bihar is one of the largest producers of fruits and vegetables in the country. Easy availability of quality planting material is most critical for horticultural development. So, the strategy of the state government is to make mother plants available in the agricultural universities and other departmental nurseries, to be distributed among the farmers. Depending on the agroclimatic situation, one specific horticulture crop has been identified for each district, so that a cluster approach can be undertaken for such crops in each district. Apart from important fruit crops, the universities will also set up progeny nursery for less common fruits like bael, ber, jamun, amla etc. Further, more tissue culture laboratories would be set up in the state during the period of Agriculture Road Map II (2017-22), since tissue culture technique is extensively used for the multiplication of plants like banana and flowers. 3.6 Agricultural Credit Apart from physical inputs like seed, water, fertilizer and agricultural implements, agricultural operations also require adequate credit support. Such credit support becomes all the more indispensable as modern inputs are to be procured from the market, requiring working capital. However, the data related to the agricultural credit reveal that credit supply is not adequate in Bihar vis-à-vis its demand. In Table 3.13, the bank-wise details are presented for agricultural credit. Table 3.13 : Agricultural Credit Flow (Rs. crore) Commercial Bank

RRBs

CCB

Total

Year Target

Achievement

Target

Achievement

Target

Achievement

Target

Achievement

2010-11

9111

7058 (77.5)

5228

3188 (61.0)

1529

422 (27.6)

15868

10667 (67.2)

2011-12

12241

9689 (79.2)

7013

4882 (69.6)

1848

387 (20.9)

21102

14958 (70.9)

2012-13

14674

13203 (90.0)

8407

8035 (95.6)

2319

328 (14.2)

25401

21566 (84.9)

2013-14

18709

17786 (95.1)

10777

10676 (99.1)

800

307 (38.4)

30286

28770 (95.0)

2014-15

22191

21260 (95.8)

12809

13058 (101.9)

1000

362 (36.2)

36000

34680 (96.3)

Note : Figures in the parentheses denote achievement percentage to the target Source: State Level Bankers' Committee

The table covers the period 2010-11 to 2014-15. The flow of agricultural credit comprises three major sources — Commercial Banks, Regional Rural Banks (RRB) and Central Cooperative Banks (CCB). In 2010-11, the achievement level for agricultural credit has been 111

around 67 percent. However, the level has gradually increased to 96.3 percent in 2014-15. In absolute terms, the flow of credit has increased satisfactorily. From Rs. 10,667 crore in 201011, it grew to Rs. 34,680 crore in 2014-15, which is about 3 times the credit flow in 2010-11. However, with rising inflation and volume of demand generated from the recent modern agricultural operations, the supply of credit is still not adequate. The share of three different sources in 2014-15 stood at Commercial Banks (61.30 percent), RRBs (37.65 percent) and CCB (1.05 percent). In other words, Commercial Banks are the major suppliers of agricultural credit in Bihar. Since the Commercial Banks and Regional Rural Banks are not keen to supply credit to agricultural sector as they seek collaterals for granting of credits, the Cooperative Banks were supposed to play an important role in agricultural credit; but, unfortunately, this strategy has not worked as yet. The district-wise position of target and achievement of cooperative credit are presented in Table A3.11 (Appendix). It is clear from the table that no district could fulfil the targets of agricultural credit in 2014-15. The level of cooperative agricultural credit was relatively higher in districts like Begusarai, Samastipur, Khagaria, Patna, Gopalganj, Aurangabad and East Champaran. In districts like Saharsa, Supaul, Madhepura, Sheikhpura, Jehanabad and Arwal, cooperative credit operations are either nil or negligible. Recently, for crop loan, an amount as interest subsidy has been sanctioned by the state government. This will help the farmers get loan at a rate of interest of 4 percent. NABARD has helped the state government to finance the project. This will lead to an increased flow of institutional credit to the farmers. Kisan Credit Card Kisan Credit Card (KCC) has been an important instrument through which credit is being provided to the farmers. The scheme was introduced in 1999 and farmers are allowed a maximum credit limit of Rs. 50,000 to procure necessary inputs. In 2010-11, an estimated number of 7.91 lakh farmers could reap the benefit of the scheme, the achievement level being 52 percent. The coverage of the scheme was 9.95 lakh farmers in 2014-15, after reaching a maximum of 10.74 lakh farmers a year before. The achievement level was 66.4 percent in 2014-15, compared to 71.6 percent in 2013-14. There is a need to extend the coverage of KCC, failing which the agricultural operations will be greatly hampered, particularly the operation of small and marginal farmers. The working of KCC in Bihar has been discussed in more detail in Chapter 9, dealing with the banking sector in the state. 3.7 Animal Husbandry Apart from agriculture, animal husbandry is one of the key sectors which plays an important role in employment and income opportunities for the rural masses of Bihar. This sector contributes about one-fifth of the total rural income, and provides large scale employment to women, and workers belonging to the marginalised sections of society. Further, since many households are either landless or land-poor in rural Bihar, this sector supplements their low income from agricultural occupation. 112

According to the livestock census of 2012, the total livestock population was 329.39 lakh. The next census is planned in 2017. According to the figures presented in Table A3.12 (Appendix), 60 percent of the total livestock population are milch animals, with a cow population of 122.32 lakhs and a buffalo population of 75.67 lakhs. The goat population stands at 111.29 lakhs, and goats are popularly known as poor man's cow. The size of poultry population is high at 127.48 lakhs. Taking note of the importance of the sector, the state government has taken several important steps for its development. These include breed upgradation, health and nutrition, insurance scheme for milch animals, and marketing of the products of the sectors. Further, training programmes have been arranged for rural workers to enhance their skill in animal husbandry. As per the data provided by the livestock census given in Table A3.12 (Appendix), one may notice that there exists a large degree of variation in livestock population across the districts. For bovine population (cows and buffaloes) the districts with higher shares are — Araria, Gaya, Katihar, Banka and Bhagalpur for cows and Madhepura, Madhubani, East Champaran, Gaya and Nalanda for buffaloes. For goats and poultry, there is higher concentration in the north-eastern region of the state, where the climate is rather conducive for their upkeep. The districts which have large concentration of goats — are Araria, East Champaran, West Champaran, Bhgalpur and Katihar. For poultry — Katihar, Muzaffarpur, Vaishali, Kishanganj and Araria are key districts. Table 3.14 presents the comparative picture depicting the livestock wealth for last three censuses. From this table, one can notice that total livestock population grew from 269.57 lakhs in 2003 to 329.39 lakhs in 2012. For poultry the figures are 139.68 lakhs and 127.48 lakhs, respectively. Table 3.14 : Livestock Wealth (2003, 2007 and 2012) (Figures in ‘000) Livestock and Poultry

2003

2007

2012

10470

12408

12232

Sheep

346

218

232

Males over 3 years

3020

2737

1915

Goats

9606

10167

12154

Females over 3 years

3643

4919

5982

Pigs

627

632

650

Young stock

3807

4752

4334

Horses and Ponies

115

51

49

5766

6690

7567

Others

0

0

55

274

329

300

Total Livestock

26957

30167

32939

Females over 3 years

2901

3546

4017

Total Poultry

13968

11420

12748

Young stock

2590

2815

3250

Cattle

Buffalo Males over 3 years

Livestock and Poultry 2003

2007

2012

Source: Department of Animal Husbandry, GOB

In Table 3.15, the production levels of various animal husbandry products have been presented for the period 2010-11 to 2014-15. Milk is the most important produce of this sector. The production of milk has increased from 65.17 lakh tonnes in 2010-11 to 77.75 lakh tonnes in 2014-15. The production of egg has also increased from 74.46 crores in 2010-11 to 98.45 crores in 2014-15. 113

Table 3.15 : Livestock and Fish Production

Year

Milk (lakh tonnes)

Egg (crores)

Wool (lakh kgs)

Meat (lakh tonnes)

Fish (lakh tonnes)

2010-11

65.17

74.46

2.6

2.23

2.89

2011-12

66.25

75.43

2.66

2.28

3.44

2012-13

68.45

83.72

2.67

2.28

4.00

2013-14

71.97

93.08

2.71

2.92

4.32

2014-15

77.75

98.45

2.78

2.94

4.79

4.5

8.0

1.5

8.3

13.2

CAGR

Source : Department of Animal Husbandry, GOB

The state government has several schemes like medical treatment of animals, sterilization, artificial insemination, immunization and free distribution of fodder seeds for the growth of the animal husbandry sector. The progress of livestock services over the past few years have been shown in Table 3.16. Table 3.16 : Livestock Services

Year 2010-11

35.73

221.73

19.48

4410.69

2011-12

28.13

121.65

3.27

2952.12

2012-13

28.24

198.78

3.30

3.40

2013-14

25.12

147.57

3.12

102.60

2014-15

31.70

19.75

2.92

Immunization (lakh)

Artificial Insemination (lakh)

Free Distribution of Fodder Seed (qntls.)

Animal Treated (lakh)

Not Distributed

Source : Department of Animal Husbandry, GOB

In Appendix Table A3.13 (Appendix), the district-wise details are provided pertaining to different livestock-related services. They relate to the years 2013-14 and 2014-15. These services are not uniform across the districts. For Bihar as a whole, 31.70 lakh animals were treated in 2014-15. In addition, 19.75 lakh animals were immunized. The coverage of artificial insemination stood at 2.92 lakh animals in 2014-15. The state government has also started providing ambulatory vans (Mobile Veterinary Clinic) since 2013-14, which are equipped with latest technology and modern medicines and tools. At present, 50 such vans are providing veterinary services to remote rural areas. The state government plans to provide more such vans in the coming annual plans. Further, the state government has established silos in Patna, Munger, Gaya, Saharsa, Purnea, Muzaffarpur, Darbhanga, Chhapra and Banka for the storage of liquid nitrogen for artificial insemination. The state government has also taken steps to renovate the artificial insemination centres in all the districts. In the new programme of artificial insemination, the non-governmental organisations (NGOs) would also be associated, where the expected number of new calves is rather high. The state government also proposes to create a modern slaughter house in each of the 38 districts, at a cost of Rs. 1 crore per unit, for the production of clean and hygienic meat. 114

Fisheries The water area in Bihar is 273.3 thousand hectares and it also has 3200 kms. of river length. This constitutes about 3.9 percent of the total geographical area. Consequently, there exists wide scope of fish cultivation in the state, providing gainful occupation for fishing population. This sector is growing steadily and the contribution of this sector to the total GSDP has more-than-doubled during the last decade. In 2004-05, the production of fish in Bihar was 2.67 lakh tonnes. The production grew continuously thereafter and reached the peak level of 4.79 lakh tonnes in 2014-15 (Table 3.15). The state government has recently taken steps to enhance the skill of the fishermen through on-site training, and exposure visits to various places in India. Such skill includes both managerial and participatory skills. The fishermen of the state have been sent to Andhra Pradesh and West Bengal for upgradation of their skills for modern fishing techniques. During 2012-13, around 1552 fishermen were trained in the state; in 2013-14, another about 2000 fishermen were inducted for training. In 2011-12, a new insurance scheme for fish farmers was introduced. One scheme is being implemented by the Oriental Insurance Company, a public sector enterprise. Under this, a premium of Rs. 3200 is fixed for each hectare of fishing area, which is shared by the beneficiary and the state government on 50:50 basis. The schemes undertaken by the state government, like distribution of fingerlings on subsidies, distribution of easy loans to farmers for maintenance and renovation of private ponds, and free houses for poor fishermen have immensely benefited the fish farmers of the state. The development of ponds and 'chaur' have increased the water area under fishing. In 2013-14, 4812.85 lakh fish seeds were produced in the state. The district-wise details of fish production and distribution of fish seeds are given in Table A 3.14 (Appendix). The data in the table shows that the districts of the Darbhanga Division (Darbhanga, Madhubani, Samastipur) are major producers of fish. The leading fish-producing districts in 2014-15 are — Madhubani, Darbhanga and East Champaran. For fish seed, Darbhanga topped the list, followed by Muzaffarpur. The distribution of seed was also the highest in Darbhanga, followed by Muzaffarpur. Recently, several new schemes have been undertaken by the state government for the upliftment of the poor fishermen in the state. A scheme of stocking of reservoirs with fingerlings have been newly introduced by the state government. The National Fisheries Development Board (NFDB) is assisting the process of stocking. The required credit is provided to the fishermen for the creation of hatcheries which have the capacity to breed 8-10 million fries. To maximize carp production, hatchery is being developed on Public-Private Partnership (PPP) basis. The unit cost of hatcheries is Rs. 15.00 lakh, for which 50 percent subsidy is provided. There is a target to construct 40 such hatcheires. Any beneficiary may construct a carp hatchery on his fish farm and can avail 50 percent of subsidy. There is a proposal to create a Fish Research Centre in Mithapur (Patna) at a cost of Rs. 129.37 lakh. The state government also proposes to establish a Sonaru fish seed farm in Fatuha at a cost of Rs. 99.68 lakh. The state government also plans to provide installation of tubewells and pumpsets to produce quality fish seed in water logged areas of the state to increase fish production. 115

APPENDIX Table A 3.1 : District-wise Annual Rainfall for Different Seasons (Rainfall in mm.)

Districts

Winter Rain

2014 Hot SouthNorthWeather West West Rain Monsoon Monsoon 26.5 756.6 20.1 123.5 862.9 9.6 37.3 520.3 30.4 72.3 392.5 47.2 35 321.9 7.9 29.6 484.4 37

Total 808.1 1042.5 641.5 594.3 410.4 583.3

2015, up to September Hot SouthWinter Weather West Total Rain Rain Monsoon 0 41.0 491.8 532.8 9 43.3 619.6 671.9 3.2 60.3 569.6 633.1 23.8 32.1 687.9 743.8 9.3 70.6 444.2 524.1 17.9 45.7 762.4 826

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

4.9 46.5 53.5 82.3 45.5 32.3

Gaya Jehanabad Arwal Nawada Aurangabad

46.1 31 80.5 41.8 75

71.6 24.6 16.3 101.2 44.7

744 784.7 456.5 881.1 595.9

17.2 9.9 10.4 10.3 29.2

878.9 850.3 563.7 1034.4 744.7

15.4 5.1 10.9 16 17.1

33.0 11.6 29.2 22.1 70.8

689.4 574.3 713.8 589.3 861.2

737.8 591 753.9 627.4 949.1

Saran Siwan Gopalganj

38.7 38.3 38.2

44.6 51.3 55.1

701.6 573.5 809.2

55.3 81.41 89.3

840.2 744.3 991.8

3.4 2.2 11.3

32.8 104 124.7

431.7 548.3 554.5

467.9 654.5 690.5

West Champaran East Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

38.2 26.8 50.5 50.8 44.5 0

45.7 79.5 55.6 126.2 66.4 21.2

983.8 826.9 866.8 718.3 776.9 758.6

118.9 110.4 55.4 113 171.5 27.1

1186.6 1043.6 1028.4 1008.3 1059.4 806.9

12.2 8 6.2 0.8 17.6 4.6

128.7 112.3 6.9 81.7 93.4 37.9

746.5 745.5 453.6 508.4 638 465.1

887.4 865.8 466.7 590.9 749 507.6

Darbhanga Madhubani Samastipur

18.7 20.6 39.7

73.2 54.8 95.7

785.5 850.3 848.1

60.8 101.5 35.9

938.2 1027.2 1019.4

0 9.8 12.8

122.4 93.6 83.9

715.9 601.9 797.1

838.3 705.3 893.8

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

0 30.3 30.6 99.2 13.8 2.5

201.1 214.2 119.4 108.3 174.7 161.9

927 959.2 965.8 795.1 812.6 751.7

30.5 26.4 16.9 16.3 29 14.2

1158.6 1230 1132.7 1018.9 1030.1 930.3

20.9 9.1 0 3 16.9 31.5

83.4 67.7 38.7 24.7 52.6 111.9

858 742.4 755.4 714.8 728.8 903.6

962.3 819.2 794.1 742.5 798.3 1047

Bhagalpur Banka

33.6 57.4

147.9 128.4

887.1 861.3

14.8 14.3

1083.5 1061.5

57.1 21.4

179.9 91.4

1174.5 607.1

1411.5 719.9

Saharsa Supaul Madhepura

17 0 0.5

185.9 61 186.7

781.4 774.3 864.8

11.9 55.4 24.2

996.2 890.7 1076.2

16.7 0 20.3

134.4 94.4 169

806.4 566 667.7

957.5 660.4 857

Purnea Kishanganj Araria Katihar

1 7.3 29.4 0

72.1 181.3 124.1 232.3

910 1614.1 988.8 761.2

26.7 10.1 25.3 26.3

1009.8 1812.8 1167.6 1019.8

13 7.5 0 9.2

111.6 348.5 240 164.1

693.8 1298.4 768.71 750.3

818.4 1654.4 1008.71 923.6

Bihar

33.3

89.3

690.7

791.7

96.1 788.3 41.9 959.6 11.7 Source: Directorate of Economics and Statistics, GOB

116

Table A 3.2 : District-wise Land Utilisation Pattern (2012-13) (Area in ‘000 hectares) Non- Agriculture Use (4)

Forest (2)

Barren and Unculturable land (3)

Land area

317.2 (100.0) 232.7 (100.0) 237.3 (100.0) 167.0 (100.0) 390.7 (100.0) 342.4 (100.0)

0.1 (0.0) 4.6 (2.0) 0.0 (0.0) 0.0 (0.0) 66.7 (17.1) 113.0 (33.0)

12.4 (3.9) 1.2 (0.5) 6.7 (2.8) 2.2 (1.3) 16.8 (4.3) 19.3 (5.6)

66.7 (21.0) 35.5 (15.3) 30.1 (12.7) 13.1 (7.8) 39.1 (10.0) 31.0 (9.1)

Water Area Perennial Temporary 10.3 (3.3) 2.4 (0.8) 2.5 (1.1) 7.6 (3.3) 2.8 (1.2) 1.4 (0.6) 3.2 (1.9) 1.3 (0.8) 9 (2.3) 0.3 (0.1) 2.5 (0.7) 1.3 (0.4)

Gaya Jehanabad Arwal Nawada Aurangabad

493.8 (100.0) 94.0 (100.0) 62.6 (100.0) 248.7 (100.0) 330 (100.0)

77.8 (15.8) 0.6 (0.7) 0.0 (0.0) 63.8 (25.6) 18.8 (5.7)

27.5 (5.6) 3.3 (3.5) 2.2 (3.5) 11.2 (4.5) 16.4 (5)

63.1 (12.8) 13.8 (14.7) 9.1 (14.6) 25.7 (10.3) 56.2 (17.0)

3.8 (0.8) 0.8 (0.9) 0.6 (0.9) 3.0 (1.2) 1.6 (0.5)

6.8 (1.4) 0.4 (0.5) 0.6 (1.0) 7.0 (2.8) 1.7 (0.5)

3.3 (0.7) 0.1 (0.2) 0.1 (0.1) 1.1 (0.4) 1.8 (0.6)

Saran Siwan Gopalganj

264.9 (100.0) 224.4 (100.0) 203.8 (100.0)

0.0 (0.0) 0.0 (0.0) 0.0 (0.0)

17.9 (6.8) 8.7 (3.9) 5.5 (2.7)

28.4 (10.7) 29.2 (13.0) 31.2 (15.3)

3.5 (1.3) 2.0 (0.9) 2.1 (1.0)

2.9 (1.1) 1.5 (0.7) 0.4 (0.2)

0.2 (0.1) 0.7 (0.3) 1.4 (0.7)

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

484.4 (100.0) 431.7 (100.0) 315.4 (100.0) 221.9 (100.0) 43.5 (100.0) 201.4 (100.0)

91.7 (18.9) 0.1 (0.0) 0.0 (0.0) 0.0 (0.0) 0.0 (0.0) 0.0 (0.0)

2.9 (0.6) 8.1 (1.9) 5.3 (1.7) 1.8 (0.8) 0.4 (0.9) 24.1 (12)

70.9 (14.6) 51.4 (11.9) 51.3 (16.3) 45.1 (20.3) 9.9 (22.8) 30.3 (15.0)

15.2 (3.1) 10.1 (2.3) 7.8 (2.5) 2.5 (1.1) 1.3 (2.9) 5.8 (2.9)

8.4 (1.7) 15.8 (3.7) 4.5 (1.4) 15.6 (7.0) 0.2 (0.4) 2.0 (1.0)

1.3 (0.3) 0.3 (0.1) 0.3 (0.1) 0.1 (0.1) 0.0 (0.1) 0.1 (0.1)

Darbhanga Madhubani Samastipur

254.1 (100.0) 353.5 (100.0) 262.4 (100.0)

0.0 (0.0) 0.0 (0.0) 0.0 (0.0)

1.3 (0.5) 2.2 (0.6) 3.8 (1.5)

44.3 (17.4) 71.2 (20.2) 54.6 (20.8)

9.4 (3.7) 13.4 (3.8) 8.2 (3.1)

7.2 (2.8) 2.3 (0.6) 0.9 (0.4)

0.1 (0.1) 0.5 (0.1) 0.0 (0.0)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

187.8 (100.0) 139.8 (100.0) 62.1 (100.0) 128.6 (100.0) 305.3 (100.0) 149.3 (100.0)

0.0 (0.0) 28.5 (20.4) 0.0 (0.0) 13.4 (10.5) 92.9 (30.4) 0.0 (0.0)

18.0 (9.6) 11.4 (8.2) 1.0 (1.6) 7.0 (5.5) 28.6 (9.4) 13.6 (9.1)

30.2 (16.1) 20.7 (14.8) 7.7 (12.4) 9.0 (7.0) 39.3 (12.9) 19.2 (12.9)

7.7 (4.1) 5.8 (4.2) 0.9 (1.4) 1.2 (0.9) 2.2 (0.7) 7.7 (5.2)

3.9 (2.1) 5.2 (3.7) 2.1 (3.4) 4.6 (3.6) 2.8 (0.9) 4.2 (2.8)

0.0 (0.0) 0.9 (0.7) 0.2 (0.4) 0.7 (0.5) 10.3 (3.4) 0.6 (0.4)

Bhagalpur Banka

254.3 (100.0) 305.6 (100.0)

0.1 (0.0) 46.3 (15.2)

22.4 (8.8) 43.0(14.1)

54.5 (21.4) 36.6 (12.0)

6.6 (2.6) 2.9 (1.0)

9.7 (3.8) 3.0 (1.0)

2.3 (0.9) 7.9 (2.6)

Saharsa Supaul Madhepura

164.6 (100.0)

0.0 (0.0)

10.8 (6.6)

22.1 (13.4)

4.8 (2.9)

2.2 (1.3)

0.4 (0.3)

238.6 (100.0) 179.6 (100.0)

0.0 (0.0) 0.0 (0.0)

20.2 (8.5) 3.9 (2.2)

39.2 (16.4) 26.8 (14.9)

9.8 (4.1) 3.9 (2.1)

2.9 (1.2) 1.1 (0.6)

1.4 (0.6) 0.0 (0.0)

Purnea Kishanganj Araria Katihar

313.9 (100.0) 189.1 (100.0)

0.1 (0.0) 0.4 (0.2)

12.3 (3.9) 11.2 (5.9)

37.9 (12.1) 25.7 (13.6)

6.9 (2.2) 7.3 (3.8)

1.5 (0.5) 2.6 (1.4)

1.1 (0.4) 1.2 (0.6)

271.7 (100.0) 291.3 (100.0)

0.8 (0.3) 1.8 (0.6)

5.0 (1.8) 22.1 (7.6)

40.3 (14.8) 42.0 (14.4)

6.4 (2.4) 12.1 (4.2)

5.2 (1.9) 4.1 (1.4)

0.5 (0.2) 0.6 (0.2)

Bihar

9359.6 (100.0) 621.6 (6.6) 431.7 (4.6) 1352.9 (14.5) 207.4 (2.2) Note : Figures in the parentheses denotes percentage Source : Directorate of Economics and Statistics, GOB

148.1 (1.6)

45.0 (0.5)

Name of District

Geographical Area (1)

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

Culturable Waste Land (5) 0.8 (0.2) 0.2 (0.1) 0.6 (0.3) 0.7 (0.4) 1.1 (0.3) 1.9 (0.5)

(Contd.)

117

Table A 3.2 : District-wise Land Utilisation Pattern (2012-13) (Contd.) (Area in ‘000 hectares) District Patna Nalanda Bhojpur Buxar Rohtas Kaimur

Total Permanent Tree Crops Fallow land Current Uncultivable Net Area Pastures (7) (8) Fallow (9) Land (10) Sown (11) (6) (2 to 9) 0.1 (0.0) 1.0 (0.3) 1.6 (0.5) 65.1 (20.5) 160.4 (50.6) 156.8 (49.4) 0.0 (0.0) 1.3 (0.5) 0.2 (0.1) 27.8 (11.9) 80.9 (34.8) 151.9 (65.2) 0.1 (0.0) 2.0 (0.9) 2.4 (1) 6.4 (2.7) 52.6 (22.2) 184.8 (77.8) 0 .0(0.0) 0.8 (0.5) 0.6 (0.4) 7.1 (4.3) 28.9 (17.3) 138.1 (82.7) 0.1 (0.0) 2.9 (0.7) 0.8 (0.2) 4.5 (1.1) 141.3 (36.2) 249.4 (63.8) 0.1 (0.0) 0.7 (0.2) 0.2 (0.1) 16.2 (4.7) 186.2 (54.4) 156.2 (45.6)

Grass Crop Area (12) 200.6 244.8 222.9 190.8 346.9 205.7

Cropping Intensity (13) 1.28 1.61 1.21 1.38 1.39 1.32

Gaya Jehanabad Arwal Nawada Aurangabad

2.1 (0.4) 0.1 (0.1) 0.1 (0.2) 0.9 (0.3) 0.5 (0.2)

3.9 (0.8) 0.7 (0.8) 0.9 (1.4) 0.7 (0.3) 0.6 (0.2)

11.4 (2.3) 125.2(25.4) 0.2 (0.2) 19.4 (20.6) 1.6 (2.5) 5.3 (8.4) 2.7 (1.1) 25.3 (10.2) 1.2 (0.4) 42.9 (13.0)

324.9 (65.8) 39.5 (42.0) 20.5 (32.7) 141.3 (56.8) 141.8 (43.0)

168.9 (34.2) 54.5 (58.0) 42.1 (67.3) 107.4 (43.2) 188.2 (57.0)

240.4 111.8 46.3 131.4 329.3

1.42 2.05 1.10 1.22 1.75

Saran Siwan Gopalganj

0.2 (0.1) 0.2 (0.1) 0.2 (0.1)

8.6 (3.2) 8.9 (4.0) 7.5 (3.7)

3.7 (1.4) 33.4 (12.6) 1.5 (0.7) 0.8 (0.3) 2.4 (1.2) 5.2 (2.5)

98.7 (37.3) 53.5 (23.8) 55.9 (27.4)

166.2 (62.7) 170.9 (76.2) 147.9 (72.6)

204.1 244.7 223.7

1.23 1.43 1.51

West Champaran East Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

1.1 (0.2) 0.4 (0.1) 0 .0(0.0) 1.4 (0.6) 0.0 (0.0) 0.3 (0.2)

6.5 (1.3) 27.1 (6.3) 17.4 (5.5) 13.9 (6.3) 3.6 (8.4) 9.8 (4.8)

2.6 (0.5) 3.6 (0.7) 3.0 (0.7) 43.3 (10.0) 1.4 (0.4) 8.5 (2.7) 0.5 (0.2) 2.6 (1.2) 0.9 (2.1) 0.6 (1.4) 0.3 (0.1) 2.8 (1.4)

204.4 (42.2) 159.6 (37.0) 96.5 (30.6) 83.5 (37.6) 17.0 (39.1) 75.5 (37.5)

280 (57.8) 272.1 (63.0) 218.9 (69.4) 138.4 (62.4) 26.5 (60.9) 125.9 (62.5)

442.3 414.4 299.3 241.3 49.7 181.2

1.58 1.52 1.37 1.74 1.88 1.44

Darbhanga Madhubani Samastipur

0.1 (0.1) 1.3 (0.4) 0.1 (0.0)

12.4 (4.9) 23.9 (6.8) 8.3 (3.2)

2.2 (0.9) 21.4 (8.4) 2.9 (0.8) 8 .0(2.3) 0.9 (0.3) 12.7 (4.8)

98.5 (38.8) 125.8 (35.6) 89.5 (34.1)

155.6 (61.2) 227.7 (64.4) 172.9 (65.9)

166.3 313.4 264.5

1.07 1.38 1.53

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

0.0 (0.0) 0.2 (0.1) 0.0 (0.0) 0.1 (0.0) 1.7 (0.5) 0.2 (0.1)

3.7 (2.0) 0.6 (0.4) 0.3 (0.5) 0.3 (0.2) 2.1 (0.7) 3.1 (2.1)

0.8 (0.4) 1.9 (1.4) 1.7 (2.7) 6.3 (4.9) 16.1 (5.3) 2.2 (1.5)

6.8 (3.6) 19.9 (14.2) 7.6 (12.2) 12.6 (9.8) 65.3 (21.4) 6.4 (4.3)

71.1 (37.8) 95.2 (68.1) 21.5 (34.6) 55.2 (42.9) 261.2 (85.6) 57.3 (38.4)

116.7 (62.2) 44.6 (31.9) 40.6 (65.4) 73.4 (57.1) 44.1 (14.4) 92 .0(61.6)

172.2 50.4 53.2 100.2 64.6 129.5

1.47 1.13 1.31 1.37 1.47 1.41

Bhagalpur Banka

0.6 (0.2) 1.1 (0.4)

6.7 (2.6) 7.4 (2.4)

4.9 (1.9) 20.0 (7.9) 11.2 (3.7) 28.4 (9.3)

127.8 (50.3) 187.9 (61.5)

126.5 (49.7) 117.7 (38.5)

158.1 147.7

1.25 1.25

Saharsa Supaul Madhepura

1.1 (0.7) 0.3 (0.1) 0.0 (0.0)

4.4 (2.7) 3.1 (1.3) 7.1 (4.0)

2.0 (1.2) 5.1 (2.1) 5.3 (3.0)

51.6 (31.4) 91.5 (38.3) 49.2 (27.4)

112.9 (68.6) 147.1 (61.7) 130.4 (72.6)

211.7 226.4 202.7

1.88 1.54 1.55

Purnea Kishanganj Araria Katihar

0.0 (0.0) 0.4 (0.2) 0.2 (0.1) 0.1 (0.0)

8.9 (2.8) 5.1 (2.7) 19.1 (7.0) 11.1 (3.8)

4.7 (1.5) 59.6 (19.0) 3.0 (1.6) 24.8 (13.1) 3.6 (1.3) 6.8 (2.5) 6.1 (2.1) 8.3 (2.8)

133.0 (42.4) 81.7 (43.2) 88.1 (32.4) 108.2 (37.1)

180.9 (57.6) 107.4 (56.8) 183.6 (67.6) 183.2 (62.9)

228.6 150.2 309.2 257.2

1.26 1.40 1.68 1.40

Bihar

3.8 (2.3) 9.5 (4.0) 1.0 (0.6)

15.6 (0.2) 246.3 (2.6) 121.8 (1.3) 766.7 (8.2) 3957.2 (42.3) 5402.4 (57.7) 7777.6 1.44 Note: Figures in the parentheses denotes percentage Source: Directorate of Economics and Statistics, GOB (Concluded)

118

Table A 3.3 : District-wise Area, Production and Productivity of Rice (Area in ‘000 hectare/Production in’000 tonnes/ Productivity in kg/ha) 2013-14

2014-15

Districts Area

Production

Productivity

Area

Production

Productivity

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

56.73 (1.8) 49.4 (1.6) 99.84 (3.2) 81.39 (2.6) 197.15 (6.3) 115.42 (3.7)

137.47 (2.1) 112.4 (1.7) 283.39 (4.3) 250.24 (3.8) 776.2 (11.7) 380.46 (5.7)

2423 (14) 2275 (15) 2838 (7) 3075 (4) 3937 (1) 3296 (3)

63.66 (2.0) 83.95 (2.6) 99.76 (3.1) 82.23 (2.5) 196.51 (6.0) 102.38 (3.1)

163.12 (2.0) 217.1 (2.6) 287.84 (3.5) 228.89 (2.8) 820.98 (10.0) 281.88 (3.4)

2562 (19) 2586 (18) 2885 (11) 2783 (13) 4178 (02) 2753 (15)

Gaya Jehanabad Arwal Nawada Aurangabad

61.12 (1.9) 42.53 (1.3) 26.58 (0.8) 63.28 (2) 139.72 (4.4)

121.22 (1.8) 118.97 (1.8) 77.45 (1.2) 132.16 (2) 514.56 (7.7)

1984 (19) 2798 (8) 2914 (6) 2089 (17) 3683 (2)

105.36 (3.2) 35.88 (1.1) 26.05 (0.8) 77.23 (2.4) 164.02 (5)

338.35 (4.1) 118.14 (1.4) 114.54 (1.4) 237.02 (2.9) 619.2 (7.5)

3211 (08) 3293 (07) 4398 (01) 3069 (09) 3775 (04)

Saran Siwan Gopalganj

74.72 (2.4) 94.12 (3) 84.88 (2.7)

130.55 (2) 158.26 (2.4) 132.97 (2)

1747 (23) 1682 (25) 1567 (27)

72.55 (2.2) 92.63 (2.8) 84.78 (2.6)

164.72 (2.0) 190.88 (2.3) 165.82 (2.0)

2271 (21) 2061 (26) 1956 (29)

West Champaran East Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

189.48 (6) 162.62 (5.2) 131.11 (4.2) 99.39 (3.2) 23.66 (0.8) 40.21 (1.3)

235.79 (3.5) 333.46 (5) 100.07 (1.5) 94.11 (1.4) 23.08 (0.3) 58.66 (0.9)

1244 (31) 2051 (18) 763 (38) 947 (36) 975 (35) 1459 (30)

152.98 (4.7) 199.56 (6.1) 140.37 (4.3) 96.59 (3.0) 22.89 (0.7) 46.18 (1.4)

368.15 (4.5) 347.77 (4.2) 285.34 (3.5) 182 (2.2) 42.02 (0.5) 98.25 (1.2)

2407 (20) 1743 (34) 2033 (28) 1884 (30) 1836 (32) 2127 (24)

Darbhanga Madhubani Samastipur

79.66 (2.5) 176.07 (5.6) 94.19 (3)

124.99 (1.9) 161.59 (2.4) 113 (1.7)

1569 (26) 918 (37) 1200 (32)

78.98 (2.4) 208.39 (6.4) 88.87 (2.7)

134.78 (1.6) 324.57 (3.9) 186.44 (2.3)

1706 (35) 1558 (38) 2098 (25)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

29.58 (0.9) 25.64 (0.8) 14.78 (0.5) 15.65 (0.5) 50.34 (1.6) 21.76 (0.7)

32.74 (0.5) 66.21 (1) 36.83 (0.6) 33.47 (0.5) 91.63 (1.4) 23.14 (0.3)

1107 (33) 2582 (11) 2491 (12) 2138 (16) 1820 (22) 1064 (34)

22.33 (0.7) 22.26 (0.7) 26.74 (0.8) 15.87 (0.5) 42.84 (1.3) 23.78 (0.7)

37.45 (0.5) 61.79 (0.7) 101.86 (1.2) 58.52 (0.7) 87.45 (1.1) 39.48 (0.5)

1677 (36) 2776 (14) 3810 (03) 3688 (05) 2042 (27) 1660 (37)

Bhagalpur Banka

29.52 (0.9) 95.52 (3)

56.7 (0.9) 284.39 (4.3)

1921 (20) 2977 (5)

32.35 (1.0) 91.86 (2.8)

95.83 (1.2) 323.63 (3.9)

2962 (10) 3523 (06)

Saharsa Supaul Madhepura

97.45 (3.1) 98.43 (3.1) 74.76 (2.4)

148.74 (2.2) 167.85 (2.5) 111.05 (1.7)

1526 (28) 1705 (24) 1485 (29)

90.32 (2.8) 112.08 (3.4) 70.85 (2.2)

166.37 (2.0) 200.96 (2.4) 153.77 (1.9)

1842 (31) 1793 (33) 2170 (23)

Purnea Kishanganj Araria Katihar

94.58 (3) 84.13 (2.7) 134.38 (4.3) 101.01 (3.2)

177.28 (2.7) 207.25 (3.1) 359.16 (5.4) 282.12 (4.2)

1874 (21) 2464 (13) 2673 (10) 2793 (9)

85.48 (2.6) 77.62 (2.4) 121.29 (3.7) 105.95 (3.2)

229.11 (2.8) 221.12 (2.7) 266.92 (3.2) 279.58 (3.4)

2680 (16) 2849 (12) 2201 (22) 2639 (17)

Bihar

3150.81 6649.59 3263.37 8241.62 2110 (100) (100) (100.0) (100.0) Note : Figure in parentheses denotes percentage and ranking for productivity Source : Department of Agriculture, GOB

119

2525

Table A 3.4 : District-wise Area, Production and Productivity of Wheat (Area in ‘000 hectare/Production in’000 tonnes/ Productivity in kg/ha) 2013-14

2014-15

Districts Area

Production

Area

Production

60.66 (2.8) 83.86 (3.9) 74.64 (3.5) 76.68 (3.6) 145.34 (6.8) 81.17 (3.8)

170.66 (2.8) 234.9 (3.8) 211.56 (3.4) 229.52 (3.7) 424.01 (6.9) 166.66 (2.7)

2813 (22) 2801 (23) 2834 (21) 2993 (13) 2917 (14) 2053 (36)

60.6 (2.8) 89.26 (4.1) 74.57 (3.5) 79.48 (3.7) 144.73 (6.7) 84.5 (3.9)

170.08 (4.8) 184.64 (5.2) 136.53 (3.8) 125.28 (3.5) 300.1 (8.4) 188.25 (5.3)

2807 (02) 2069 (12) 1831 (16) 1576 (23) 2074 (11) 2228 (06)

Gaya Jehanabad Arwal Nawada Aurangabad

58.78 (2.7) 23.66 (1.1) 10.91 (0.5) 45.49 (2.1) 76.22 (3.5)

112.21 (1.8) 67.57 (1.1) 22.57 (0.4) 110.93 (1.8) 229.42 (3.7)

1909 (38) 2856 (19) 2068 (35) 2438 (32) 3010 (12)

72.15 (3.3) 23.39 (1.1) 10.78 (0.5) 45.53 (2.1) 79.12 (3.7)

178.51 (5) 66.85 (1.9) 18.37 (0.5) 81.59 (2.3) 160.18 (4.5)

2474 (03) 2859 (01) 1705 (20) 1792 (17) 2024 (13)

Saran Siwan Gopalganj

86.87 (4) 93.27 (4.3) 78.55 (3.7)

273.1 (4.5) 286.21 (4.7) 250.84 (4.1)

3144 (10) 3069 (11) 3193 (8)

84.46 (3.9) 90.2 (4.2) 73.94 (3.4)

170.37 (4.8) 171.37 (4.8) 71.48 (2)

2017 (14) 1900 (15) 967 (34)

114.74 (5.3) 67.96 (3.2) 92.73 (4.3) 92.5 (4.3) 12.66 (0.6) 43.72 (2)

313.16 (5.1) 195.22 (3.2) 330.38 (5.4) 267.09 (4.4) 46.55 (0.8) 147.15 (2.4)

2729 (26) 2872 (17) 3563 (3) 2888 (15) 3676 (2) 3365 (5)

65.59 (3) 128.68 (6) 88.36 (4.1) 88.03 (4.1) 16.62 (0.8) 44.81 (2.1)

80.07 (2.2) 87.58 (2.5) 129.82 (3.6) 76.76 (2.2) 22.91 (0.6) 93.82 (2.6)

1221 (27) 681 (37) 1469 (25) 872 (35) 1378 (26) 2094 (09)

Darbhanga Madhubani Samastipur

59.39 (2.8) 94 (4.4) 64.03 (3)

156.21 (2.5) 199.23 (3.2) 239.46 (3.9)

2630 (30) 2119 (34) 3740 (1)

59.4 (2.8) 90.05 (4.2) 55.74 (2.6)

89.18 (2.5) 70.79 (2) 116.64 (3.3)

1501 (24) 786 (36) 2093 (10)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

55.15 (2.6) 15.9 (0.7) 20.64 (1) 33.71 (1.6) 8.67 (0.4) 30.37 (1.4)

185.87 (3) 39.52 (0.6) 59.6 (1) 110.47 (1.8) 17.45 (0.3) 98.13 (1.6)

3370 (4) 2485 (31) 2888 (15) 3277 (6) 2012 (37) 3231 (7)

53.92 (2.5) 14.17 (0.7) 25.25 (1.2) 29.7 (1.4) 11.33 (0.5) 30.37 (1.4)

64.16 (1.8) 23.13 (0.6) 55.17 (1.5) 67.33 (1.9) 13.24 (0.4) 33.95 (1)

1190 (28) 1633 (21) 2185 (08) 2267 (05) 1168 (30) 1118 (33)

Bhagalpur Banka

46.95 (2.2) 25.63 (1.2)

127.39 (2.1) 69.26 (1.1)

2713 (27) 2703 (28)

46.38 (2.2) 25.85 (1.2)

52.83 (1.5) 45.68 (1.3)

1139 (32) 1767 (19)

Saharsa Supaul Madhepura

42.97 (2) 64.57 (3) 30.03 (1.4)

117.77 (1.9) 148.03 (2.4) 86.18 (1.4)

2741 (25) 2293 (33) 2870 (18)

50.22 (2.3) 53.75 (2.5) 31.09 (1.4)

110.99 (3.1) 84.93 (2.4) 71.46 (2.0)

2210 (07) 1580 (22) 2298 (04)

Purnea

40.32 (1.9)

106.84 (1.7)

2650 (29)

39.73 (1.8)

23.95 (0.7)

603 (38)

Kishanganj

15.91 (0.7)

45.28 (0.7)

2845 (20)

14.08 (0.7)

16.66 (0.5)

1183 (29)

43.54 (2)

121.43 (2)

2789 (24)

39.14 (1.8)

45.7 (1.3)

1168 (31)

36.62 (1.7)

116.9 (1.9)

3193 (8)

39.46 (1.8)

69.87 (2.0)

1771 (18)

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

West Champaran East Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

Araria Katihar Bihar

Productivity

2148.82 6134.68 2154.42 3570.21 2855 (100) (100) (100.0) (100.0) Note : Figure in parentheses denotes percentage and ranking for productivity Source : Department of Agriculture, GOB

120

Productivity

1657

Table A 3.5 : District-wise Area, Production and Productivity of Maize (Area in ‘000 hectare/Production in ’000 tonnes/ Productivity in kg/ha) Districts

2013-14

2014-15

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

Area 5.51 (0.8) 5.37 (0.7) 3.55 (0.5) 2.13 (0.3) 0.25 (0) 0.42 (0.1)

Production 22.14 (0.8) 19.59 (0.7) 8.41 (0.3) 2.95 (0.1) 0.63 (0) 1.18 (0)

Productivity 4018 (10) 3648 (14) 2370 (31) 1383 (38) 2555 (29) 2788 (26)

Area 6.78 (1.0) 5.9 (0.8) 3.45 (0.5) 1.36 (0.2) 0.05 (0.0) 0.38 (0.1)

Production 21.91 (0.9) 18 (0.7) 8.71 (0.4) 2.03 (0.1) 0.13 (0.0) 0.45 (0.0)

Productivity 3232 (15) 3053 (17) 2523 (28) 1491 (37) 2549 (26) 1200 (38)

Gaya Jehanabad Arwal Nawada Aurangabad

7.85 (1.1) 1.4 (0.2) 0.81 (0.1) 2.06 (0.3) 0.34 (0)

23.48 (0.8) 4.42 (0.2) 3.1 (0.1) 5.19 (0.2) 0.81 (0)

2990 (22) 3161 (18) 3843 (11) 2512 (30) 2347 (32)

7.43 (1.1) 0.45 (0.1) 0.64 (0.1) 1.93 (0.3) 0.35 (0.0)

16.68 (0.7) 1.53 (0.1) 2.15 (0.1) 5.03 (0.2) 0.71 (0.0)

2245 (32) 3392 (10) 3357 (13) 2609 (25) 2034 (34)

Saran Siwan Gopalganj

28.36 (3.9) 19.45 (2.7) 12.01 (1.6)

89.4 (3.1) 54.39 (1.9) 34.92 (1.2)

3152 (19) 2796 (25) 2907 (24)

27.82 (3.9) 18.16 (2.6) 16.69 (2.4)

80.76 (3.3) 44.5 (1.8) 45.2 (1.8)

2903 (19) 2451 (29) 2708 (24)

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

51.6 (7) 10.74 (1.5) 26.31 (3.6) 5.03 (0.7) 1.84 (0.3) 32.86 (4.5)

100.63 (3.5) 32.52 (1.1) 94.2 (3.2) 23.16 (0.8) 6.87 (0.2) 142.25 (4.9)

1950 (35) 3027 (21) 3580 (16) 4608 (8) 3725 (12) 4329 (9)

9.83 (1.4) 52.23 (7.4) 48.77 (6.9) 5.49 (0.8) 1.82 (0.3) 32.33 (4.6)

28.32 (1.1) 102.58 (4.1) 191.89 (7.7) 18.6 (0.8) 6.45 (0.3) 131.45 (5.3)

2883 (20) 1964 (35) 3935 (07) 3385 (11) 3533 (09) 4067 (06)

Darbhanga Madhubani Samastipur

19.42 (2.7) 0.51 (0.1) 57.91 (7.9)

51.89 (1.8) 1.86 (0.1) 188.49 (6.5)

2672 (27) 3658 (13) 3255 (17)

14.76 (2.1) 0.62 (0.1) 56.89 (8.1)

43.24 (1.7) 1.69 (0.1) 156 (6.3)

2930 (18) 2728 (23) 2742 (22)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

56.15 (7.7) 3.33 (0.5) 0.72 (0.1) 4.7 (0.6) 2.78 (0.4)

129.11 (4.4) 8.71 (0.3) 1.05 (0) 9.67 (0.3) 4.25 (0.1)

2299 (33) 2612 (28) 1464 (37) 2057 (34) 1530 (36)

47.99 (6.8) 4.64 (0.7) 0.66 (0.1) 5.11 (0.7) 2.8 (0.4)

121.66 (4.9) 13.14 (0.5) 1.06 (0.0) 11.62 (0.5) 6.35 (0.3)

2535 (27) 2830 (21) 1591 (36) 2276 (30) 2269 (31)

60.16 (8.2)

185.03 (6.4)

3076 (20)

60.16 (8.5)

214.83 (8.7)

3571 (08)

Bhagalpur Banka

44.64 (6.1) 11.1 (1.5)

272.84 (9.4) 39.83 (1.4)

6112 (2) 3587 (15)

46.06 (6.5) 11.03 (1.6)

155.81 (6.3) 35.93 (1.4)

3383 (12) 3257 (14)

Saharsa Supaul Madhepura

40.66 (5.6) 15.22 (2.1) 45.55 (6.2)

217.56 (7.5) 78.92 (2.7) 247.69 (8.5)

5351 (5) 5186 (6) 5437 (4)

28.24 (4.0) 12.41 (1.8) 43.42 (6.1)

128.11 (5.2) 50.82 (2.1) 229.47 (9.3)

4536 (03) 4096 (05) 5285 (02)

Purnea Kishanganj Araria Katihar

37.9 (5.2) 3.04 (0.4) 52.46 (7.2) 58.18 (7.9)

111.17 (3.8) 15.32 (0.5) 297.19 (10.2) 373.44 (12.9)

2933 (23) 5043 (7) 5665 (3) 6419 (1)

35.6 (5.0) 3.03 (0.4) 44.31 (6.3) 46.94 (6.6)

77.57 (3.1) 9.47 (0.4) 189.3 (7.6) 305.62 (12.3)

2179 (33) 3121 (16) 4272 (04) 6510 (01)

Bihar

732.34 2904.24 706.52 2478.75 3966 (100.0) (100.0) (100.0) (100.0) Note : Figure in parentheses denotes percentage and ranking for productivity Source : Department of Agriculture, GOB

121

3508

Table A 3.6 : District-wise Area, Production and Productivity of Pulses (Area in ‘000 hectare/Production in ’000 tonnes/ Productivity in kg/ha) Districts

2013-14

2014-15

Area

Production

Productivity

Area

Production

Productivity

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

46.94 (9.4) 23.04 (4.6) 22.04 (4.4) 9.74 (1.9) 13.13 (2.6) 13.08 (2.6)

75.93 (14.5) 25.36 (4.9) 25.83 (4.9) 13.26 (2.5) 16.51 (3.2) 12.34 (2.4)

1617 (3) 1101 (13) 1172 (9) 1361 (4) 1257 (5) 943 (23)

46.50 (9.2) 22.62 (4.5) 19.17 (3.8) 12.33 (2.4) 10.44 (2.1) 12.59 (2.5)

71.30 (16.6) 22.98 (5.4) 17.60 (4.1) 7.10 (1.7) 11.84 (2.8) 19.54 (4.6)

1533 (02) 1016 (11) 918 (15) 576 (31) 1134 (06) 1552 (01)

Gaya Jehanabad Arwal Nawada Aurangabad

20.13 (4) 17.53 (3.5) 5.8 (1.2) 11.09 (2.2) 37.08 (7.4)

18.44 (3.5) 21.19 (4.1) 5.82 (1.1) 8.9 (1.7) 27.32 (5.2)

916 (24) 1209 (8) 1004 (19) 803 (31) 737 (34)

19.80 (3.9) 15.55 (3.1) 5.82 (1.2) 9.92 (2.0) 35.58 (7.0)

17.76 (4.1) 18.03 (4.2) 5.50 (1.3) 6.21 (1.4) 28.83 (6.7)

897 (16) 1159 (04) 945 (14) 627 (29) 810 (21)

Saran Siwan Gopalganj

3.01 (0.6) 3.94 (0.8) 2.39 (0.5)

3.42 (0.7) 4.18 (0.8) 2.26 (0.4)

1138 (11) 1061 (16) 945 (22)

3.37 (0.7) 3.77 (0.7) 2.14 (0.4)

3.75 (0.9) 4.30 (1.0) 2.42 (0.6)

1111 (09) 1138 (05) 1129 (07)

West Champaran East Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

11.9 (2.4) 14.09 (2.8) 26.94 (5.4) 6.21 (1.2) 2.96 (0.6) 9.31 (1.9)

14.45 (2.8) 33.44 (6.4) 15.09 (2.9) 3.83 (0.7) 2.46 (0.5) 7.37 (1.4)

1215 (6) 2374 (1) 560 (37) 616 (35) 831 (30) 791 (32)

13.58 (2.7) 13.69 (2.7) 28.72 (5.7) 6.20 (1.2) 2.39 (0.5) 8.93 (1.8)

7.55 (1.8) 7.11 (1.7) 15.72 (3.7) 2.58 (0.6) 1.28 (0.3) 5.62 (1.3)

556 (32) 519 (35) 547 (33) 416 (37) 538 (34) 629 (28)

Darbhanga Madhubani Samastipur

11.41 (2.3) 15.01 (3) 18.02 (3.6)

9.85 (1.9) 12.61 (2.4) 13.79 (2.6)

863 (27) 840 (28) 765 (33)

11.95 (2.4) 15.01 (3.0) 15.78 (3.1)

14.35 (3.3) 9.65 (2.3) 10.15 (2.4)

1201 (03) 643 (25) 643 (26)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

4.57 (0.9) 2.13 (0.4) 7.75 (1.5) 16.17 (3.2) 2.75 (0.5) 7.97 (1.6)

5.03 (1) 2.43 (0.5) 8.92 (1.7) 27.35 (5.2) 2.81 (0.5) 8.74 (1.7)

1099 (14) 1137 (12) 1152 (10) 1692 (2) 1024 (18) 1096 (15)

4.50 (0.9) 2.22 (0.4) 6.31 (1.2) 13.19 (2.6) 6.32 (1.2) 7.85 (1.6)

4.36 (1) 1.88 (0.4) 7.06 (1.6) 11.12 (2.6) 5.03 (1.2) 6.90 (1.6)

970 (13) 845 (18) 1118 (08) 843 (19) 797 (22) 879 (17)

Bhagalpur Banka

14.93 (3) 7.44 (1.5)

15.6 (3) 9.03 (1.7)

1045 (17) 1213 (7)

15.22 (3.0) 6.40 (1.3)

9.58 (2.2) 4.98 (1.2)

630 (27) 778 (23)

Saharsa Supaul Madhepura

15.4 (3.1) 20.95 (4.2) 19.39 (3.9)

8.82 (1.7) 18.68 (3.6) 7.82 (1.5)

573 (36) 892 (26) 403 (38)

20.45 (4.0) 30.13 (6.0) 20.93 (4.1)

5.79 (1.3) 17.73 (4.1) 9.76 (2.3)

283 (38) 589 (30) 466 (36)

Purnea Kishanganj Araria Katihar

8.59 (1.7) 8.52 (1.7) 9.19 (1.8) 9.42 (1.9)

7.16 (1.4) 7.79 (1.5) 8.83 (1.7) 9.39 (1.8)

833 (29) 914 (25) 961 (21) 996 (20)

7.17 (1.4) 9.20 (1.8) 10.08 (2.0) 10.27 (2.0)

5.21 (1.2) 9.83 (2.3) 8.41 (2.0) 10.13 (2.4)

727 (24) 1068 (10) 835 (20) 987 (12)

Bihar

499.95 522.02 506.08 428.93 1044 (100) (100) (100.0) (100.0) Note : Figure in parentheses denotes percentage and ranking for productivity Source : Department of Agriculture, GOB

122

848

Table A 3.7 : District-wise Area and Production of Important Vegetables (Area in '000 hectare/Production in '000 tonnes) Potato Districts

2013-14

Onion 2014-15

Production

Area

12.45 (3.9) 20.81 (6.5) 6.38 (2.0) 3.84 (1.2) 7.95 (2.5) 3.20 (1.0)

354.32 (5.5) 599.38 (9.2) 175.17 (2.7) 103.11 (1.6) 165.84 (2.6) 84.04 (1.3)

12.5 (3.9) 20.81 (6.5) 6.30 (2.0) 3.92 (1.2) 7.95 (2.5) 3.20 (1.0)

8.03 (2.5) 2.76 (0.9) 2.2 (0.7) 4.22 (1.3) 4.45 (1.4)

212.36 (3.3) 73.84 (1.1) 59.09 (0.9) 99.18 (1.5) 115.82 (1.8)

8.13 (2.5) 212.50 (3.2) 2.76 (0.9) 73.84 (1.1) 2.20 (0.7) 59.09 (0.9) 4.22 (1.3) 100 (1.5) 4.45 (1.4) 115.82 (1.8)

1.44 (2.7) 0.55 (1.0) 0.44 (0.8) 0.99 (1.9) 1.13 (2.1)

34.32 (2.7) 13.15 (1.0) 10.78 (0.9) 21.83 (1.7) 25.39 (2.0)

1.42 (2.6) 0.55 (1.0) 0.44 (0.8) 0.99 (1.8) 1.13 (2.1)

32.40 (2.5) 13.15 (1.0) 9.87 (0.8) 21.83 (1.7) 25.39 (2.0)

10.73 (3.4) 7.64 (2.4) 9.08 (2.9)

282.36 (4.3) 205.45 (3.2) 242.69 (3.7)

10.75 (3.4) 280.50 (4.3) 7.70 (2.4) 205.90 (3.1) 9.08 (2.8) 242.70 (3.7)

0.95 (1.8) 0.91 (1.7) 0.13 (0.2)

21.35 (1.7) 20.11 (1.6) 1.41 (0.1)

0.95 (1.7) 0.92 (1.7) 0.90 (1.7)

18.00 (1.4) 21.00 (1.6) 18.58 (1.5)

W. Champaran 9.18 (2.9) E. Champaran 8.76 (2.8) Muzaffarpur 85.45 (26.8) Sitamarhi 5.12 (1.6) Sheohar 3.21 (1.0) Vaishali 9.95 (3.1)

249.94 (3.8) 9.20 (2.9) 250.00 (3.8) 236.87 (3.6) 8.87 (2.8) 240.90 (3.7) 253.09 (3.9) 85.50 (26.8) 254.00 (3.9) 135.49 (2.1) 5.13 (1.6) 136.50 (2.1) 83.58 (1.3) 3.22 (1.0) 83.6 (1.3) 290.54 (4.5) 9.95 (3.1) 290.54 (4.4)

2.33 (4.4) 2.38 (4.5) 2.60 (4.9) 0.98 (1.8) 0.72 (1.4) 1.8 (3.4)

61.46 (4.9) 59.33 (4.7) 68.88 (5.5) 14.54 (1.2) 17.29 (1.4) 43.44 (3.4)

2.40 (4.4) 2.38 (4.4) 2.60 (4.8) 1.34 (2.5) 0.73 (1.3) 1.80 (3.3)

62.00 (4.9) 59.33 (4.6) 67.00 (5.2) 32.50 (2.5) 17.3 (1.4) 44 .00(3.4)

Darbhanga Madhubani Samastipur

5.75 (1.8) 7.74 (2.4) 9.18 (2.9)

153.94 (2.4) 206.93 (3.2) 249.19 (3.8)

5.82 (1.8) 154.92 (2.4) 7.74 (2.4) 206.93 (3.2) 9.20 (2.9) 250.00 (3.8)

1.11 (2.1) 1.12 (2.1) 1.40 (2.6)

24.8 (2.0) 25.3 (2.0) 30.43 (2.4)

1.00 (1.8) 1.12 (2.1) 1.40 (2.6)

25.00 (2.0) 25.30 (2.0) 30.43 (2.4)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

6.04 (1.9) 5.34 (1.7) 4.21 (1.3) 2.36 (0.7) 2.59 (0.8) 4.13 (1.3)

168.02 (2.6) 142.08 (2.2) 119.89 (1.8) 63.45 (1.0) 67.29 (1.0) 108.58 (1.7)

6.04 (1.9) 5.34 (1.7) 4.20 (1.3) 2.36 (0.7) 2.59 (0.8) 4.13 (1.3)

168.02 (2.6) 142.08 (2.2) 120.00 (1.8) 63.45 (1.0) 67.29 (1.0) 108.58 (1.7)

2.01 (3.8) 1.02 (1.9) 1.31 (2.5) 0.45 (0.8) 0.77 (1.4) 0.77 (1.4)

48.35 (3.8) 24.42 (1.9) 29.43 (2.3) 10.12 (0.8) 18.89 (1.5) 17.23 (1.4)

2.01 (3.7) 1.02 (1.9) 1.32 (2.4) 0.45 (0.8) 0.77 (1.4) 0.78 (1.4)

42.36 (3.3) 24.5 (1.9) 30.00 (2.3) 10.12 (0.8) 22.20 (1.7) 17.25 (1.3)

Bhagalpur Banka

6.29 (2.0) 4.94 (1.6)

168.26 (2.6) 125.73 (1.9)

6.29 (2.0) 168.26 (2.6) 4.94 (1.5) 125.73 (1.9)

1.64 (3.1) 0.75 (1.4)

40.34 (3.2) 16.43 (1.3)

1.64 (3) 0.74 (1.4)

40.34 (3.2) 15.50 (1.2)

Saharsa Supaul Madhepura

5.7 (1.8) 4.51 (1.4) 5.33 (1.7)

151.58 (2.3) 115.98 (1.8) 140.06 (2.2)

5.7 (1.8) 151.58 (2.3) 4.5 (1.4) 115.98 (1.8) 5.33 (1.7) 140.06 (2.1)

0.65 (1.2) 0.38 (0.7) 0.98 (1.8)

14.66 (1.2) 8.46 (0.7) 22.56 (1.8)

0.65 (1.2) 0.38 (0.7) 0.98 (1.8)

15.00 (1.2) 8.50 (0.7) 22.56 (1.8)

Purnea Kishanganj Araria Katihar

5.23 (1.6) 4.51 (1.4) 3.69 (1.2) 5.52 (1.7)

137.30 (2.1) 117.90 (1.8) 89.40 (1.4) 147.81 (2.3)

5.23 (1.6) 137.30 (2.1) 4.51 (1.4) 117.90 (1.8) 3.69 (1.2) 89.40 (1.4) 5.55 (1.7) 147.80 (2.3)

1.80 (3.4) 1.39 (2.6) 1.52 (2.9) 3.89 (7.3)

42.49 (3.4) 31.36 (2.5) 33.37 (2.6) 83.14 (6.6)

1.80 (3.3) 1.39 (2.6) 1.52 (2.8) 3.90 (7.2)

42.50 (3.3) 31.36 (2.5) 30.28 (2.4) 83.14 (6.5)

318.47 (100.0)

6495.55 (100.0)

53.20 (100)

1262.61 (100.0)

54.33 (100.0)

1278.31 (100.0)

Gaya Jehanabad Arwal Nawada Aurangabad Saran Siwan Gopalganj

Bihar

319.00 (100.0)

Area

2014-15

Area Patna Nalanda Bhojpur Buxar Rohtas Kaimur

Production

2013-14 Production

Area

Production

360.00 (5.5) 2.57 (4.8) 62.60 (5.0) 2.58 (4.7) 63.00 (4.9) 600.00 (9.2) 5.99 (11.3) 164.37 (13.0) 6.00 (11.0) 160.00 (12.5) 172.70 (2.6) 1.21 (2.3) 30.06 (2.4) 1.20 (2.2) 26.00 (2.0) 105.11 (1.6) 0.93 (1.7) 22.64 (1.8) 0.93 (1.7) 22.64 (1.8) 206.90 (3.2) 1.21 (2.3) 27.15 (2.2) 1.22 (2.2) 27.25 (2.1) 84.04 (1.3) 0.98 (1.8) 20.73 (1.6) 0.98 (1.8) 20.73 (1.6)

6549.92 (100.0)

Note : Figure in parentheses denotes percentage Source : Department of Agriculture, GOB (Contd.)

123

Table A 3.7 : District-wise Area and Production of Important Vegetables (Contd.) (Area in '000 hectare/Production in '000 tonnes)

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

Cauliflower Brinjal 2013-14 2014-15 2013-14 2014-15 Area Production Area Production Area Production Area Production 3.70 (5.6) 68.12 (5.9) 3.80 (5.8) 1.28 (0.1) 1.80 (3.1) 48.13 (4) 1.85 (3.2) 49.00 (4.0) 3.10 (4.7) 59.03 (5.1) 3.11 (4.7) 60.00 (5.5) 7.12 (12.4) 148.48 (12.2) 7.20 (12.5) 148.50 (12.3) 1.15 (1.8) 21.51 (1.9) 1.15 (1.8) 21.51 (2) 1.20 (2.1) 28.91 (2.4) 1.20 (2.1) 28.91 (2.4) 0.70 (1.1) 12.68 (1.1) 0.70 (1.1) 12.68 (1.2) 0.74 (1.3) 16.82 (1.4) 0.75 (1.3) 16.90 (1.4) 1.24 (1.9) 20.81 (1.8) 1.25 (1.9) 21.90 (2.0) 0.98 (1.7) 18.76 (1.5) 0.98 (1.7) 18.76 (1.5) 0.77 (1.2) 13.36 (1.2) 0.77 (1.2) 13.5 (1.2) 0.58 (1) 14.3 (1.2) 0.58 (1) 14.3 (1.2)

Gaya Jehanabad Arwal Nawada Aurangabad

2.01 (3.1) 34.89 (3) 0.54 (0.8) 9.7 (0.8) 0.45 (0.7) 8.06 (0.7) 1.4 (2.1) 22.56 (2) 1.41 (2.1) 28.22 (2.5)

2.01 (3.1) 34.89 (3.2) 0.54 (0.8) 9.7 (0.9) 0.45 (0.7) 8.06 (0.7) 1.4 (2.1) 22.85 (2.1) 1.41 (2.1) 28.22 (2.6)

1.65 (2.9) 0.67 (1.2) 0.44 (0.8) 1.81 (3.1) 1.12 (1.9)

34.49 (2.8) 13.74 (1.1) 9.51 (0.8) 26.81 (2.2) 23.37 (1.9)

1.65 (2.9) 0.67 (1.2) 0.44 (0.8) 1.82 (3.2) 1.12 (1.9)

34.49 (2.8) 13.74 (1.1) 9.51 (0.8) 26.81 (2.2) 22.48 (1.9)

Saran Siwan Gopalganj

2.88 (4.4) 36.81 (3.2) 1.62 (2.5) 29.45 (2.6) 1.88 (2.9) 33.86 (2.9)

2.89 (4.4) 38.00 (3.5) 1.62 (2.5) 28.35 (2.6) 1.88 (2.9) 33.86 (3.1)

1.80 (3.1) 1.59 (2.8) 1.39 (2.4)

38.43 (3.2) 1.80 (3.1) 34.94 (2.9) 1.60 (2.8) 30.39 (2.5) 1.39 (2.4)

38.50 (3.2) 35.00 (2.9) 30.39 (2.5)

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

2.88 (4.4) 2.84 (4.3) 3.53 (5.4) 1.34 (2.0) 0.84 (1.3) 5.97 (9.1)

2.90 (4.4) 2.87 (4.4) 3.55 (5.4) 1.35 (2.1) 0.84 (1.3) 6.00 (9.1)

53.40 (4.9) 39.26 (3.6) 68.00 (6.3) 24.2 (2.2) 14.98 (1.4) 100.00 (9.2)

1.97 (3.4) 1.63 (2.8) 2.90 (5.0) 1.29 (2.2) 0.66 (1.1) 3.10 (5.4)

44.57 (3.7) 36.23 (3.0) 36.46 (3.0) 26.9 (2.2) 14.08 (1.2) 68.81 (5.7)

1.95 (3.4) 1.64 (2.8) 2.90 (5.0) 1.29 (2.2) 0.66 (1.1) 3.20 (5.6)

45.00 (3.7) 36.25 (3.0) 36.60 (3.0) 26.90 (2.2) 14.08 (1.2) 69.00 (5.7)

Darbhanga Madhubani Samastipur

1.63 (2.5) 28.49 (2.5) 2.58 (3.9) 45.74 (4) 3.00 (4.6) 59.70 (5.2)

1.63 (2.5) 28.50 (2.6) 2.58 (3.9) 45.75 (4.2) 3.00 (4.6) 59.50 (5.5)

2.53 (4.4) 2.11 (3.7) 2.32 (4.0)

51.69 (4.3) 2.53 (4.4) 43.27 (3.6) 2.11 (3.7) 58.57 (4.8) 2.32 (4.0)

51.69 (4.3) 43.20 (3.6) 58.50 (4.8)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

1.80 (2.7) 34.87 (3.0) 0.75 (1.1) 13.28 (1.2) 0.25 (0.4) 4.38 (0.4) 0.28 (0.4) 4.95 (0.4) 0.43 (0.7) 7.45 (0.6) 1.25 (1.9) 21.43 (1.9)

1.80 (2.7) 34.87 (3.2) 0.75 (1.1) 13.30 (1.2) 0.25 (0.4) 4.38 (0.4) 0.00 (0.0) 0.00 (0.0) 0.43 (0.7) 7.49 (0.7) 1.25 (1.9) 21.43 (2.0)

2.70 (4.7) 0.83 (1.4) 0.30 (0.5) 0.20 (0.3) 0.59 (1.0) 1.21 (2.1)

58.70 (4.8) 16.67 (1.4) 6.63 (0.5) 4.19 (0.3) 12.41 (1.0) 29.64 (2.4)

2.75 (4.8) 0.83 (1.4) 0.30 (0.5) 0.00 (0.0) 0.59 (1.0) 1.21 (2.1)

58.92 (4.9) 16.67 (1.4) 6.65 (0.5) 0.00 (0.0) 12.41 (1.0) 29.64 (2.4)

Bhagalpur Banka

1.65 (2.5) 29.17 (2.5) 0.83 (1.3) 12.4 (1.1)

1.65 (2.5) 29.17 (2.7) 0.83 (1.3) 12.4 (1.1)

1.71 (3.0) 0.82 (1.4)

35.98 (3.0) 1.71 (3.0) 17.41 (1.4) 0.82 (1.4)

35.98 (3.0) 17.41 (1.4)

Saharsa Supaul Madhepura

1.77 (2.7) 31.47 (2.7) 0.69 (1.1) 11.7 (1) 1.78 (2.7) 30.9 (2.7)

1.77 (2.7) 31.47 (2.9) 0.69 (1.1) 11.69 (1.1) 1.78 (2.7) 30.9 (2.9)

1.33 (2.3) 0.62 (1.1) 1.58 (2.7)

28.69 (2.4) 1.33 (2.3) 13.04 (1.1) 0.62 (1.1) 33.86 (2.8) 1.58 (2.7)

28.7 (2.4) 13.04 (1.1) 33.86 (2.8)

Purnea Kishanganj Araria Katihar

2.04 (3.1) 35.24 (3.1) 0.88 (1.3) 15.88 (1.4) 0.84 (1.3) 14.5 (1.3) 3 (4.6) 51.34 (4.5)

2.07 (3.2) 0.88 (1.3) 0.85 (1.3) 3.00 (4.6)

35.24 (3.3) 15.88 (1.5) 14.68 (1.4) 51.40 (4.7)

1.21 (2.1) 0.57 (1.0) 0.64 (1.1) 1.77 (3.1)

24.56 (2.0) 12.41 (1.0) 13.68 (1.1) 38.72 (3.2)

1.21 (2.1) 0.57 (1.0) 0.65 (1.1) 1.77 (3.1)

24.58 (2.0) 12.41 (1.0) 13.89 (1.1) 38.72 (3.2)

65.70 (100.0)

1082.69 (100.0)

57.48 (100.0)

1214.25 (100.0)

57.59 (100.0)

1211.39 (100.0)

Districts

Bihar

65.70 (100.0)

52.38 (4.6) 38.76 (3.4) 67.53 (5.9) 24.16 (2.1) 14.94 (1.3) 99.30 (8.6)

1149.02 (100.0)

Note : Figure in parentheses denotes percentage Source : Department of Agriculture, GOB

124

Table A 3.8 : District-wise Area and Production of Important Fruits (Area in '000 hectare/Production in '000 tonnes) Districts

Mango 2013-14 2014-15 Area Production Area Production

Guava 2013-14 2014-15 Area Production Area Production

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

4.09(3.0) 2.93(2.1) 6.27(4.6) 3.38(2.5) 5.70 (4.1) 3.37(2.5)

37.01(2.9) 27.11(2.1) 41.05(3.2) 29.05(2.3) 50.14(3.9) 28.33(2.2)

4.01 (2.7) 2.93 (2) 4.64 (3.1) 3.41 (2.3) 5.74 (3.9) 3.39 (2.3)

32.50 (2.6) 20.50 (1.6) 42.75 (3.4) 32.51 (2.6) 52.80 (4.2) 30.29 (2.4)

1.10 (3.7) 1.52(5.1) 1.89(6.3) 1.57(5.3) 3.31(11.1) 1.37 (4.6)

8.92(3.7) 14.18(5.9) 15.60 (6.5) 12.38(5.2) 26.93 (11.3) 10.65 (4.5)

1.12 (3.8) 1.53 (5.2) 1.92 (6.5) 1.58 (5.4) 3.32 (11.3) 1.37 (4.6)

9.00 (2.4) 146.2 (39.5) 16.5 (4.5) 12.52 (3.4) 27.00 (7.3) 10.65 (2.9)

Gaya Jehanabad Arwal Nawada Aurangabad

1.33 (1.0) 0.38(0.3) 0.35(0.3) 1.19(0.9) 1.32 (1.0)

11.47(0.9) 3.23 (0.3) 3.05 (0.2) 9.80 (0.8) 11.98(0.9)

1.36 (0.9) 0.40 (0.3) 0.37 (0.2) 1.16 (0.8) 1.34 (0.9)

12.46 (1) 3.20 (0.3) 2.96 (0.2) 10.20 (0.8) 12.12 (1.0)

0.67 (2.2) 0.26 (0.9) 0.24 (0.8) 0.53 (1.8) 0.71 (2.4)

5.25 (2.2) 2.04 (0.9) 1.86 (0.8) 3.79 (1.6) 5.55 (2.3)

0.68 (2.3) 0.26 (0.9) 0.24 (0.8) 0.53 (1.8) 0.72 (2.4)

5.54 (1.5) 2.14 (0.6) 1.78 (0.5) 3.88 (1.0) 4.82 (1.3)

Saran Siwan Gopalganj

5.16(3.8) 2.53(1.8) 3.02(2.2)

44.00 (3.5) 22.51(1.8) 27.17(2.1)

5.14 (3.5) 2.55 (1.7) 3.06 (2.1)

50.00 (3.9) 20.10 (1.6) 27.20 (2.1)

0.82 (2.7) 0.68 (2.3) 0.62 (2.1)

6.22 (2.6) 5.40 (2.3) 4.95 (2.1)

0.00 (0.0) 0.69 (2.3) 0.62 (2.1)

0.00 (0.0) 5.45 (1.5) 4.99 (1.3)

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

7.30 (5.3) 9.30 (6.8) 9.83(7.1) 5.28(3.8) 2.66(1.9) 8.34(6.1)

70.10 (5.5) 86.81(6.8) 9.95 (0.8) 48.99(3.9) 23.37(1.8) 78.90 (6.2)

7.32 (4.9) 9.31 (6.3) 9.83 (6.6) 5.31 (3.6) 2.68 (1.8) 8.43 (5.7)

72.50 (5.7) 82.25 (6.5) 82.50 (6.5) 49.50 (3.9) 2.08 (0.2) 76.00 (6.0)

1.63 (5.4) 1.67 (5.6) 1.45 (4.8) 0.73 (2.5) 0.32 (1.1) 1.37 (4.6)

13.62 (5.7) 13.02 (5.5) 11.60 (4.9) 6.02 (2.5) 2.62 (1.1) 10.95 (4.6)

1.63 (5.5) 1.68 (5.7) 1.45 (4.9) 0.74 (2.5) 0.32 (1.1) 1.50 (5.1)

13.75 (3.7) 14.02 (3.8) 11.75 (3.2) 6.20 (1.7) 2.62 (0.7) 11.20 (3.0)

Darbhanga Madhubani Samastipur

1.39 (1.0) 6.10 (4.4) 10.60 (7.7)

121.09(9.5) 56.03 (4.4) 100.50 (7.9)

13.50 (9.1) 6.11 (4.1) 10.60 (7.1)

120.52 (9.5) 51.03 (4.0) 89.30 (7.0)

0.62 (2.1) 0.50 (1.7) 0.65 (2.2)

4.88 (2.1) 4.08 (1.7) 5.30 (2.2)

0.62 (2.1) 0.50 (1.7) 0.65 (2.2)

4.88 (1.3) 4.08 (1.1) 5.30 (1.4)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

4.07 (3.0) 1.25 (0.9) 0.84 (0.6) 0.58 (0.4) 1.08 (0.8) 1.69 (1.2)

39.52 (3.1) 11.15 (0.9) 7.21 (0.6) 5.07 (0.4) 9.75 (0.8) 15.51 (1.2)

4.09 (2.8) 1.27 (0.9) 0.85 (0.6) 0.59 (0.4) 1.12 (0.8) 1.71 (1.1)

36.45 (2.9) 10.66 (0.8) 8.52 (0.7) 4.78 (0.4) 9.29 (0.7) 14.50 (1.1)

0.55 (1.8) 0.28 (0.9) 0.14 (0.5) 0.14 (0.5) 0.23 (0.8) 0.38 (1.3)

4.57 (1.9) 2.23 (0.9) 1.07 (0.5) 1.12 (0.5) 1.72 (0.7) 2.99 (1.3)

0.55 (1.9) 0.29 (1.0) 0.14 (0.5) 0.14 (0.5) 0.23 (0.8) 0.38 (1.3)

4.57 (1.2) 2.25 (0.6) 1.07 (0.3) 1.12 (0.3) 1.72 (0.5) 2.99 (0.8)

Bhagalpur Banka

7.55 (5.5) 6.27 (4.6)

75.25 (5.9) 53.91 (4.2)

7.52 (5.1) 6.31 (4.2)

60.53 (4.8) 48.55 (3.8)

0.70 (2.4) 0.31 (1.1)

5.80 (2.4) 2.45 (1.0)

0.70 (2.4) 0.32 (1.1)

5.80 (1.6) 2.55 (0.7)

Saharsa Supaul Madhepura

2.58 (1.9) 1.25 (0.9) 1.97 (1.4)

23.5 (1.8) 10.75 (0.8) 17.55 (1.4)

2.16 (1.5) 1.28 (0.9) 2.01 (1.4)

23.20 (1.8) 10.08 (0.8) 14.25 (1.1)

0.66 (2.2) 0.44 (1.5) 0.63 (2.1)

5.33 (2.2) 3.32 (1.4) 4.99 (2.1)

0.66 (2.2) 0.44 (1.5) 0.65 (2.2)

5.33 (1.4) 3.32 (0.9) 5.01 (1.4)

Purnea Kishanganj Araria Katihar

2.50 (1.8) 0.80 (0.6) 0.68 (0.5) 2.85 (2.1)

22.21 (1.7) 6.93 (0.5) 5.87 (0.5) 28.20 (2.2)

2.53 (1.7) 0.82 (0.6) 0.67 (0.5) 2.89 (1.9)

22.52 (1.8) 7.52 (0.6) 5.21 (0.4) 20.3 (1.6)

0.38 (1.3) 0.24 (0.8) 0.20 (0.7) 0.45 (1.5)

0.17 (0.1) 1.88 (0.8) 1.51 (0.6) 3.71 (1.6)

0.38 (1.3) 0.24 (0.8) 0.2 (0.7) 0.45 (1.5)

3.17 (0.9) 1.88 (0.5) 1.22 (0.3) 3.71 (1.0)

137.77 (100.0)

1274.02 (100.0)

148.37 (100.0)

1271.62 (100.0)

29.96 (100.0)

238.62 (100.0)

29.40 (100.0)

369.96 (100.0)

Bihar

Note : Figure in parentheses denotes percentage Source : Department of Agriculture, GOB (Contd.)

125

Table A 3.8 : District-wise Area and Production of Important Fruits (Contd.) (Area in '000 hectare/Production in '000 tonnes) Litchi Districts

Banana

2013-14

2014-15

2013-14

2014-15

Area – – – – – –

Production – – – – – –

Area – – – – – –

Production – – – – – –

Area 0.70 (2.0) 0.51 (1.5) 0.32 (0.9) 0.23 (0.7) 0.28 (0.8) 0.21 (0.6)

Production 32.00 (2.0) 21.78 (1.4) 15.09 (1.0) 10.44 (0.7) 13.18 (0.8) 9.89 (0.6)

Area 0.70 (2.0) 0.51 (1.5) 0.36 (1.0) 0.25 (0.7) 0.31 (0.9) 0.23 (0.7)

Production 30.25 (2.0) 24.4 (1.6) 15.2 (1.0) 10.55 (0.7) 14.20 (0.9) 11.13 (0.7)

– – – – –

– – – – –

– – – – –

– – – – –

0.32 (0.9) 0.18 (0.5) 0.12 (0.3) 0.35 (1.0) 0.33 (1.0)

10.74 (0.7) 7.62 (0.5) 5.38 (0.3) 15.21 (1.0) 15.34 (1.0)

0.26 (0.7) 0.19 (0.5) 0.14 (0.4) 0.36 (1.0) 0.36 (1.0)

12.94 (0.8) 8.13 (0.5) 6.11 (0.4) 12.00 (0.8) 16.23 (1.1)

Saran Siwan Gopalganj

1.08 (3.6) 1.12 (3.7) 1.20 (4.0)

7.53 (3.2) 8.16 (3.5) 8.67 (3.7)

1.13 (3.5) 1.16 (3.6) 1.23 (3.8)

9.30 (4.7) 7.60 (3.8) 8.02 (4.1)

0.76 (2.2) 0.72 (2.1) 0.70 (2.0)

34.98 (2.2) 34.13 (2.2) 31.79 (2.0)

0.88 (2.5) 0.84 (2.4) 0.80 (2.3)

38.40 (2.5) 35.06 (2.3) 32.00 (2.1)

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

2.08 (6.9) 15.41 (6.6) 1.95 (6.4) 13.57 (5.8) 7.30(24.1) 58.98 (25.2) 2.19 (7.2) 16.18 (6.9) 0.99 (3.3) 6.92 (3.0) 3.61(11.9) 27.05 (11.5)

2.14 (6.6) 1.96 (6.1) 7.89 (24.5) 2.25 (7.0) 1.01 (3.1) 3.66 (11.4)

11.52 (5.8) 12.25 (6.2) 40.52 (20.5) 17.4 (8.8) 6.76 (3.4) 21.70 (11.0)

1.00 (2.9) 45.94 (2.9) 1.08 (3.1) 50.35 (3.2) 5.00 (14.5) 239.05 (15.1) 0.67 (1.9) 30.83 (1.9) 0.3 (0.9) 12.96 (0.8) 3.35 (9.7) 167.9 (10.6)

1.07 (3.1) 1.08 (3.1) 5.31 (15.3) 0.75 (2.2) 0.34 (1.0) 3.36 (9.7)

51.02 (3.3) 48.08 (3.1) 272.5 (17.9) 30.40 (2.0) 12.00 (0.8) 142.00 (9.3)

Darbhanga Madhubani Samastipur

0.82 (2.7) 0.81 (2.7) 1.29 (4.3)

5.60 (2.4) 5.68 (2.4) 9.81 (4.2)

0.84 (2.6) 0.82 (2.5) 1.53 (4.7)

4.05 (2.0) 5.48 (2.8) 10.25 (5.2)

1.76 (5.1) 1.03 (3.0) 2.27 (6.6)

81.83 (5.2) 48.26 (3.0) 123.05 (7.8)

1.29 (3.7) 1.14 (3.3) 2.26 (6.5)

70.86 (4.6) 45.20 (3.0) 102.52 (6.7)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

0.63 (2.1) 0.25 (0.8) 0.10 (0.3) 0.05 (0.2) 0.18 (0.6) 0.33 (1.1)

4.69 (2.0) 1.78 (0.8) 0.68 (0.3) 0.33 (0.1) 1.50 (0.6) 2.40 (1.0)

0.63 (2.0) 0.26 (0.8) 0.03 (0.1) 0.05 (0.2) 0.14 (0.4) 0.34 (1.1)

3.26 (1.6) 2.18 (1.1) 0.27 (0.1) 0.30 (0.2) 1.20 (0.6) 2.10 (1.1)

1.00 (2.9) 0.42 (1.2) 0.14 (0.4) 0.14 (0.4) 0.22 (0.6) 1.05 (3.1)

47.08 (3.0) 20.04 (1.3) 6.26 (0.4) 6.62 (0.4) 10.03 (0.6) 47.04 (3.0)

1.00 (2.9) 0.45 (1.3) 0.15 (0.4) 0.16 (0.5) 0.22 (0.6) 1.06 (3.1)

45.42 (3.0) 21.19 (1.4) 6.2 (0.4) 6.54 (0.4) 9.63 (0.6) 45.7 (3.0)

Bhagalpur Banka

0.58 (1.9) 0.06 (0.2)

5.01 (2.1) 0.44 (0.2)

0.56 (1.7) 0.06 (0.2)

4.32 (2.2) 0.28 (0.1)

1.35 (3.9) 0.65 (1.9)

58.72 (3.7) 30.22 (1.9)

1.3 (3.7) 0.35 (1)

52.58 (3.4) 14.72 (1.0)

Saharsa Supaul Madhepura

0.55 (1.8) 0.19 (0.6) 0.29 (1.0)

3.99 (1.7) 1.32 (0.6) 2.05 (0.9)

0.56 (1.7) 0.11 (0.3) 0.21 (0.7)

4.65 (2.4) 0.72 (0.4) 1.43 (0.7)

1.24 (3.6) 0.62 (1.8) 1.31 (3.8)

52.68 (3.3) 28.63 (1.8) 62.30 (3.9)

1.25 (3.6) 0.65 (1.9) 1.40 (4.0)

51.50 (3.4) 24.00 (1.6) 68.40 (4.5)

Purnea Kishanganj Araria Katihar

0.28 (0.9) 0.41 (1.4) 0.41 (1.4) 1.50 (5.0)

9.33 (4.0) 2.95 (1.3) 2.89 (1.2) 11.29 (4.8)

1.3 (4.0) 0.42 (1.3) 0.41 (1.3) 1.52 (4.7)

8.52 (4.3) 2.07 (1.0) 1.36 (0.7) 10.20 (5.2)

1.30 (3.8) 0.64 (1.9) 0.48 (1.4) 1.65 (4.8)

51.70 (3.3) 30.06 (1.9) 21.91 (1.4) 55.80 (3.5)

1.33 (3.8) 0.66 (1.9) 0.48 (1.4) 1.46 (4.2)

48.50 (3.2) 31.52 (2.1) 18.72 (1.2) 40.72 (2.7)

30.25 (100.0)

234.21 (100.0)

32.22 (100.0)

197.71 (100.0)

34.40 (100.0)

1586.83 (100.0)

34.71 (100.0)

1526.52 (100.0)

Patna Nalanda Bhojpur Buxar Rohtas Kaimur Gaya Jehanabad Arwal Nawada Aurangabad

Bihar

Note : Figure in parentheses denotes percentage. Source : Department of Agriculture, GOB

126

Table A 3.8 : District-wise Area and Production of Vegetables and Fruits (Contd.) (Area in '000 hectare/Production in '000 tonnes) Districts

Total Vegetables 2013-14 2014-15 Area Production Area Production

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

36.07 (4.4) 52.93 (6.5) 17.02 (2.1) 11.29 (1.4) 16.99 (2.1) 9.28 (1.1)

773.80 (5.1) 1218.89 (8) 366.08 (2.4) 234.16 (1.5) 351.71 (2.3) 187.88 (1.2)

46.19 (5.4) 62.76 (7.4) 16.69 (2.0) 11.73 (1.4) 22.54 (2.6) 9.29 (1.1)

Gaya Jehanabad Arwal Nawada Aurangabad

21.89 (2.7) 8.08 (1.0) 6.52 (0.8) 14.72 (1.8) 15.42 (1.9)

492.00 (3.2) 167.59 (1.1) 135.27 (0.9) 261.41 (1.7) 301.10 (2.0)

24.10 (2.8) 7.80 (0.9) 6.53 (0.8) 14.78 (1.7) 15.48 (1.8)

Saran Siwan Gopalganj W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

Total Fruits 2013-14 2014-15 Area Production Area Production 103.51 (2.3) 215.99 (4.8) 92.88 (2.1) 67.20 (1.5) 110.70 (2.5) 62.71 (1.4)

8.02 (2.3) 6.68 (1.9) 8.40 (2.4) 6.17 (1.8) 10.50 (3) 5.80 (1.7)

80.35 (2) 208.05 (5.2) 88.48(2.2) 64.29 (1.6) 105.13 (2.6) 59.63 (1.5)

3.78 (1.2) 1.55 (0.5) 1.24 (0.4) 3.40 (1.1) 4.00 (1.3)

45.71 (1.0) 21.88 (0.5) 17.48 (0.4) 45.39 (1.0) 52.47 (1.2)

3.79 (1.1) 1.55 (0.4) 1.22 (0.4) 3.42 (1.0) 4.01(1.2)

45.10 (1.1) 20.28 (0.5) 15.18 (0.4) 38.79 (1.0) 48.75 (1.2)

26.07 (3.2) 522.52 (3.4) 20.75 (2.5) 422.96 (2.8) 22.09 (2.7) 470.65 (3.1)

26.47 (3.1) 519.42 (3.5) 9.86 (3.2) 22.85 (2.7) 426.26 (2.8) 7.117 (2.3) 23.10 (2.7) 468.85 (3.1) 7.16 (2.4)

124.72 (2.8) 97.74 (2.2) 96.50 (2.2)

9.05 (2.6) 7.13 (2.1) 7.18 (2.1)

115.32 (2.9) 86.35 (2.2) 86.45 (2.2)

28.64 (3.5) 596.72 (3.9)

28.84 (3.4) 600.30 (4.0) 15.11 (5.0)

187.82 (4.2)

15.10 (4.4)

176.25 (4.4)

26.99 (3.3) 112.27 (13.8) 16.59 (2.0) 9.57 (1.2) 40.73 (5.0)

715.86 (4.8) 7.98 (2.6) 1215.17 (8.1) 6.65 (2.2) 364.35 (2.4) 8.36 (2.8) 237.21 (1.6) 6.15 (2.0) 353.28 (2.4) 10.48 (3.5) 188.09 (1.3) 5.81 (1.9) 492.90 (3.3) 168.11 (1.1) 131.38 (0.9) 263.6 (1.8) 300.16 (2.0)

569.96 (3.8) 28.53 (3.3) 575.80 (3.8) 749.88 (4.9) 112.36 (13.2) 723.39 (4.8) 344.02 (2.3) 17.35 (2.0) 345.41 (2.3) 193.51 (1.3) 9.99 (1.2) 193.96 (1.3) 834.55 (5.5) 40.93 (4.8) 839.42 (5.6)

16.89 (5.6) 197.65 (4.4) 16.90 (4.9) 181.82 (4.6) 26.56 (8.7) 485.55(10.9) 26.58 (7.7) 427.56 (10.7) 10.12 (3.3) 122.31 (2.7) 54.33 (15.7) 114.16 (2.9) 5.012 (1.6) 59.47 (1.3) 5.01 (1.4) 29.99 (0.8) 18.69 (6.2) 312.24 (7.0) 18.71 (5.4) 268.54 (6.7)

Darbhanga Madhubani Samastipur

22.35 (2.7) 429.87 (2.8) 22.74 (2.8) 463.44 (3.1) 28.65 (3.5) 609.33 (4)

22.25 (2.6) 428.52 (2.9) 19.04 (6.3) 22.74 (2.7) 463.45 (3.1) 10.54 (3.5) 28.65 (3.4) 610.03 (4.1) 17.10 (5.6)

251.67 (5.6) 140.88 (3.2) 257.77 (5.8)

18.34 (5.3) 10.54 (3.0) 17.11 (4.9)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

24.50 (3.0) 14.04 (1.7) 8.33 (1.0) 6.04 (0.7) 7.91 (1.0) 14.48 (1.8)

25.59 (3.0) 14.55 (1.7) 8.34 (1.0) 4.21 (0.5) 7.95 (0.9) 14.49 (1.7)

7.91 (2.6) 2.95 (1.0) 1.52 (0.5) 1.24 (0.4) 2.41 (0.8) 4.43 (1.5)

117.73 (2.6) 45.08 (1.0) 19.52 (0.4) 17.69 (0.4) 30.38 (0.7) 83.99 (1.9)

7.907 (2.3) 106.215 (2.7) 2.96 (0.9) 43.23 (1.1) 1.52 (0.4) 19.44 (0.5) 1.24 (0.4) 15.83 (0.4) 2.41 (0.7) 28.51 (0.7) 4.71(1.4) 74.59 (1.9)

Bhagalpur Banka

21.89 (2.7) 446.19 (2.9) 11.27 (1.4) 229.02 (1.5)

21.11 (2.5) 446.55 (3.0) 12.19 (4.0) 11.00 (1.3) 223.14 (1.5) 8.19 (2.7)

169.67 (3.8) 92.25 (2.1)

12.20(3.5) 8.20 (2.4)

142.41 (3.6) 80.59 (2.0)

Saharsa Supaul Madhepura

18.09 (2.2) 355.39 (2.3) 10.16 (1.2) 203.03 (1.3) 17.82 (2.2) 347.72 (2.3)

18.13 (2.1) 355.85 (2.4) 6.663 (2.2) 110.396 (2.5) 13.42 (1.6) 202.81 (1.4) 3.20 (1.1) 53.87 (1.2) 17.82 (2.1) 347.61 (2.3) 5.59 (1.8) 107.72 (2.4)

6.22 (1.8) 3.21 (0.9) 5.62 (1.6)

99.90 (2.5) 44.78 (1.1) 101.92 (2.6)

Purnea Kishanganj Araria Katihar

20.56 (2.5) 12.41 (1.5) 11.39 (1.4) 27.86 (3.4)

384.69 (2.5) 254.54 (1.7) 220.79 (1.5) 523.74 (3.4)

19.72 (2.3) 12.44 (1.5) 11.42 (1.3) 29.95 (3.5)

364.45 (2.4) 255.03 (1.7) 217.14 (1.4) 441.09 (2.9)

8.65 (2.8) 5.31 (1.7) 2.94 (1.0) 8.03 (2.6)

149.01 (3.3) 112.73 (2.5) 50.12 (1.1) 127.98 (2.9)

8.68 (2.5) 5.36 (1.5) 2.87 (0.8) 8.03 (2.3)

141.01 (3.5) 114.15 (2.9) 40.67 (1.0) 94.23 (2.4)

814.40 (100.0)

15191.89 (100.0)

852.09 (100.0)

14978.86 (100.0)

303.81 (100.0)

4458.36 (100.0)

346.64 (100.0)

3979.82 (100.0)

Bihar

493.88 (3.3) 285.10 (1.9) 193.24 (1.3) 119.40 (0.8) 159.15 (1.0) 278.71 (1.8)

490.68 (3.3) 285.61 (1.9) 194.05 (1.3) 91.68 (0.6) 159.41 (1.1) 278.84 (1.9)

Note: Figure in parentheses denotes percentage. Source: Department of Agriculture, GOB

127

220.00 (5.5) 124.07 (3.1) 227.83(5.7)

Table A 3.9 : District-wise Area and Production of Flowers (Area in hectare/Production in tonnes) Districts

Rose 2013-14 Area Production

Marigold 2013-14 Area Production

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

4.70 (6.4) 2.50 (3.4) 2.60 (3.5) 1.40 (1.9) 1.10(1.5) 1.20 (1.6)

7.87 (8) 58.00 (16.0) 1012.00 (14.9) 3.4 (3.4) 18.75 (5.2) 413.00 (6.1) 3.48 (3.5) 19.00 (5.2) 283.00 (4.2) 1.54 (1.6) 3.55 (1.0) 63.90 (0.9) 1.16 (1.2) 2.30 (0.6) 38.64 (0.6) 1.5 (1.5) 2.05 (0.6) 34.85 (0.5)

Gaya Jehanabad Arwal Nawada Aurangabad

3.20 (4.3) 1.20 (1.6) 1.30 (1.8) 1.50 (2.0) 1.50 (2.0)

4.75 (4.8) 1.44 (1.5) 1.56 (1.6) 1.7 (1.7) 1.8 (1.8)

27.5 (7.6) 13.00 (3.6) 7.75 (2.1) 2.45 (0.7) 6.25 (1.7)

Saran Siwan Gopalganj

1.30 (1.8) 1.20 (1.6) 1.25 (1.7)

1.5 (1.5) 1.44 (1.5) 1.53 (1.5)

4.4 (1.2) 3.05 (0.8) 3.50 (1.0)

77.00 (1.1) 54.29 (0.8) 60.28 (0.9)

E. Champaran W. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

2.50 (3.4) 2.45 (3.3) 5.72 (7.8) 1.05 (1.4) 0.85 (1.2) 4.85 (6.6)

3.48 (3.5) 3.33 (3.4) 7.5 (7.6) 1.16 (1.2) 0.89 (0.9) 8.52 (8.6)

9.40 (2.6) 8.60 (2.4) 27 .00(7.4) 2.90 (0.8) 1.05 (0.3) 32.5 (8.9)

Darbhanga Madhubani Samastipur

1.90 (2.6) 1.00 (1.4) 4.00 (5.4)

2.38 (2.4) 1.3 (1.3) 5.83 (5.9)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

2.75 (3.7) 0.70 (1.0) 0.95 (1.3) 0.90 (1.2) 1.05 (1.4) 1.05 (1.4)

Bhagalpur Banka

Jasmine (Bela) 2013-14 Area Production

Tube Rose 2013-14 Area Production

5.40 (4.8) 3.20 (2.8) 3.15(2.8) 1.80 (1.6) 1.50 (1.3) 1.40 (1.2)

17.28(5.4) 9.92 (3.1) 9.45 (3) 5.22 (1.6) 4.75 (1.5) 3.78 (1.2)

5.00(4.5) 2.60(2.4) 1.80(1.6) 1.60(1.5) 1.20(1.1) 2.50(2.3)

25.88(4.8) 13.00(2.4) 9.09 (1.7) 7.84 (1.5) 5.64 (1.1) 5.56 (1)

512.00 (7.5) 12.70(11.2) 283.00 (4.2) 3.45 (3.0) 135.63 (2) 3.30 (2.9) 41.65 (0.6) 1.25 (1.1) 217.00 (3.2) 2.40 (2.1)

25.00(7.9) 10.01(3.2) 9.57 (3.0) 3.25 (1.0) 8.20 (2.6)

4.85(4.4) 2.40(2.2) 1.95(1.8) 1.10 (1) 1.35(1.2)

22.81(4.3) 11.52(2.2) 9.56 (1.8) 5.06 (0.9) 6.48 (1.2)

2.30 (2.0) 1.45 (1.3) 1.50 (1.3)

6.21 (2.0) 4.06 (1.3) 4.20 (1.3)

1.60(1.5) 1.65(1.5) 1.45(1.3)

7.84 (1.5) 7.90 (1.5) 7.32 (1.4)

174.84 (2.6) 156.52 (2.3) 628.00 (9.2) 49.88 (0.7) 17.85 (0.3) 610.00 (9)

3.70 (3.3) 2.45 (2.2) 7.40 (6.5) 2.00 (1.8) 0.90 (0.8) 7.50 (6.6)

10.20(3.2) 7.60 (2.4) 23.68(7.5) 5.46 (1.7) 2.34 (0.7) 23.25(7.3)

4.80(4.4) 3.40(3.1) 8.85(8.0) 1.25(1.1) 0.80(0.7) 9.40(8.5)

24.96(4.7) 17.34(3.2) 40.82(7.6) 5.75 (1.1) 3.60 (0.7) 47.94 (9)

6.80 (1.9) 3.55 (1) 17.53 (4.8)

119.00 (1.8) 63.19 (0.9) 315.00 (4.6)

2.60 (2.3) 3.10 (2.7) 6.35 (5.6)

7.28 (2.3) 7.69 (2.4) 19.69(6.2)

1.90(1.7) 1.40(1.3) 8.95(8.1)

10.03(1.9) 7.00 (1.3) 49.98(9.3)

2.88 (2.9) 4.15 (4.2) 0.77 (0.8) 1.09 (1.1) 0.99 (1.0) 1.16 (1.2)

12.00 (3.3) 10.6 (2.9) 0.90 (0.2) 2.30 (0.6) 1.70 (0.5) 1.95 (0.5)

180.17 (2.7) 188.68 (2.8) 15.48 (0.2) 40.02 (0.6) 28.90 (0.4) 33.93 (0.5)

3.45 (3.0) 3.20 (2.8) 1.00 (0.9) 1.20 (1.1) 0.80 (0.7) 1.30 (1.2)

10.35(3.3) 7.20 (2.3) 2.66 (0.8) 3.18 (1.0) 2.08 (0.7) 3.45 (1.1)

3.25(3.0) 4.70(4.3) 0.80(0.7) 0.95(0.9) 0.7 (0.6) 1.30(1.2)

16.25(3.0) 18.32(3.4) 3.76 (0.7) 4.47 (0.8) 3.15 (0.6) 6.24 (1.2)

2.7 (3.7) 0.85 (1.2)

3.62 (3.7) 0.98 (1)

10.95 (3.0) 2.10 (0.6)

202.58 (3) 36.12 (0.5)

6.40 (5.6) 1.35 (1.2)

19.20(6.0) 3.51 (1.1)

4.40(4.0) 0.80(0.7)

22.44(4.2) 3.68 (0.7)

Saharsa Supaul Madhepura

1.80 (2.4) 0.70 (1.0) 0.90 (1.2)

2.23 (2.3) 0.77 (0.8) 1.04 (1.1)

7.05 (1.9) 1.95 (0.5) 2.80 (0.8)

124.08 (1.8) 33.35 (0.5) 48.16 (0.7)

2.15 (1.9) 0.85 (0.8) 1.05 (0.9)

5.81 (1.8) 2.25 (0.7) 2.84 (0.9)

2.40(2.2) 0.80(0.7) 1.10(1.0)

11.52(2.2) 3.68 (0.7) 5.17 (1.0)

Purnea Kishanganj Araria Katihar

1.8 (2.4) 2.5 (3.4) 1.1 (1.5) 2.55 (3.5)

2.39 (2.4) 3.20 (3.2) 1.23 (1.2) 3.34 (3.4)

7.55 (2.1) 8.85 (2.4) 1.65 (0.5) 10.25 (2.8)

134.39 (2.0) 157.53 (2.3) 28.22 (0.4) 186.55 (2.7)

2.60 (2.3) 3.35 (3.0) 1.05 (0.9) 2.85 (2.5)

7.28 (2.3) 9.05 (2.9) 2.73 (0.9) 7.98 (2.5)

3.20(2.9) 5.55(5.0) 0.80(0.7) 7.60(6.9)

15.36(2.9) 27.20(5.1) 3.68 (0.7) 38.00(7.1)

Bihar

73.59 (100.0)

98.90 (100.0)

113.40 (100.0)

317.66 (100.0)

110.15 (100.0)

363.48 (100.0)

6798.68 (100.0)

Note : Figure in parentheses denotes percentage. Source : Department of Agriculture, GOB

128

535.84 (100.0)

Table A 3.10 : District-wise Area, Production and Productivity of Sugarcane (Area in '000 ha. / Production in ‘000 Ton/ Yield in Ton/ha) Districts

2013-14

2014-15

Patna Nalanda Bhojpur Buxar Rohtash Kaimur

Area 0.48 (0.2) 0.22 (0.1) 0.53 (0.2) 0.42 (0.1) 0.33 (0.1) 0.11 (0.0)

Prod. 34.40 (0.2) 14.21 (0.1) 30.77 (0.2) 22.28 (0.1) 17.46 (0.1) 3.29 (0.0)

Yield 71 (10) 66 (17) 58 (24) 53 (31) 53 (32) 31 (37)

Area 0.47 (0.2) 0.2 (0.1) 0.48 (0.2) 0.37 (0.1) 0.29 (0.1) 0.15 (0.0)

Prod. 34.03 (0.2) 20.83 (0.1) 26.88 (0.1) 19.26 (0.1) 15.3 (0.1) 4.65 (0.0)

Yield 72 (07) 103 (02) 57 (24) 52 (30) 52 (29) 30 (37)

Gaya Jahanabad Arwal Nawada Aurangabad

0.49 (0.2) 0.03 (0.0) 0.01 (0.0) 0.16 (0.1) 0.10 (0.0)

38.10 (0.2) 2.89 (0.0) 1.55 (0.0) 11.60 (0.1) 6.01 (0.0)

78 (09) 99 (02) 103 (01) 71 (11) 61 (22)

0.38 (0.1) 0.08 (0.0) 0.04 (0.0) 0.40 (0.1) 0.09 (0.0)

27.68 (0.1) 7.96 (0.0) 2.94 (0.0) 21.73 (0.1) 6.83 (0.0)

72 (06) 97 (03) 66 (14) 54 (25) 74 (05)

Saran Siwan Gopalganj

1.46 (0.5) 5.12 (1.8) 26.43 (9.3)

98.69 (0.6) 353.29 (2.0) 1510.00 (8.4)

68 (16) 69 (13) 57 (27)

1.83 (0.6) 6.39 (2.1) 33.32 (10.8)

121.45 (0.6) 432.85 (2.1) 1455.35 (7.0)

66 (12) 68 (10) 44 (31)

149.61 (52.6) 9560.47 (53.3) 34.32 (12.1) 2337.43 (13.0) 5.7 (2.0) 545.75 (3.0) 17.05 (6.0) 976.43 (5.4) 3.54 (1.2) 161.16 (0.9) 0.66 (0.2) 61.24 (0.3)

64 (19) 68 (15) 96 (03) 57 (26) 46 (34) 93 (04)

148.5 (48.1) 52.69 (17.1) 9.24 (3.0) 17.37 (5.6) 3.94 (1.3) 0.86 (0.3)

9698.43 (46.7) 5575.68 (26.8) 637.54 (3.1) 755.33 (3.6) 170.02 (0.8) 55.21 (0.3)

65 (15) 106 (01) 69 (08) 43 (32) 43 (33) 64 (16)

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali Darbhanga Madhubani Samastipur

2.18 (0.8) 4.83 (1.7) 8.07 (2.8)

150.76 (0.8) 388.06 (2.2) 259.33 (1.4)

69 (12) 80 (07) 32 (36)

2.49 (0.8) 5.24 (1.7) 6.77 (2.2)

155.89 (0.8) 327.03 (1.6) 257.64 (1.2)

63 (17) 62 (18) 38 (35)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

6.48 (2.3) 0.19 (0.1) 0.44 (0.2) 0.04 (0.0) 1.00 (0.4) 0.31 (0.1)

233.65 (1.3) 11.45 (0.1) 24.12 (0.1) 2.52 (0.0) 64.42 (0.4) 14.30 (0.1)

36 (35) 61 (20) 55 (28) 61 (21) 64 (18) 46 (33)

6.84 (2.2) 0.16 (0.1) 0.35 (0.1) 0.02 (0.0) 0.81 (0.3) 0.32 (0.1)

269.58 (1.3) 9.65 (0.0) 21.12 (0.1) 1.42 (0) 49.19 (0.2) 11.96 (0.1)

39 (34) 60 (20) 60 (21) 58 (23) 60 (19) 37 (36)

Bhagalpur Banka

5.43 (1.9) 2.73 (1.0)

445.29 (2.5) 212.32 (1.2)

82 (06) 78 (08)

5.56 (1.8) 2.90 (0.9)

377.76 (1.8) 194.89 (0.9)

68 (09) 67 (11)

Saharsa

0.73 (0.3)

38.91 (0.2)

54 (30)

0.80 (0.3)

42.22 (0.2)

53 (28)

Supaul

0.00 (0.0)

0.0 (0.0)

0 (38)

0.00 (0.0)

0.0 (0.0)

0 (38)

Madhepura

3.71 (1.3)

212.77 (1.2)

57 (25)

4.02 (1.3)

211.59 (1.0)

53 (27)

Purnia

0.90 (0.3)

52.61 (0.3)

58 (23)

0.97 (0.3)

56.82 (0.3)

59 (22)

Kishanganj

0.22 (0.1)

20.50 (0.1)

92 (05)

0.18 (0.1)

16 (0.1)

91 (04)

Araria

0.28 (0.1) 0.08 (0)

15.17 (0.1) 5.50 (0.0)

54 (29) 69 (14)

0.32 (0.1) 0.11 (0.0)

17.45 (0.1) 7.28 (0.0)

54 (26) 66 (13)

Katihar Bihar

284.38 17938.65 308.59 20766.06 63.08 (100.0) (100.0) (100.0) (100.0) Note: Figure in parentheses denotes percentage and ranking for productivity Source: Department of Sugarcane, GOB

129

67.29

Table A 3.11 : District-wise Cooperative Credit Distribution District Patna Nalanda Bhojpur Buxar Rohtas Kaimur Gaya Jehanabad Arwal Nawada Aurangabad

Target (Rs. Lakh) 2012-13 2013-14 2014-15 12128 7686 11433 11643 4044 4303 13860 4814 5391 20098 3507 3926 6299 2188 2351 3622 1258 1647

2012-13 906.65 (3.8) 601.93 (2.5) 426.90 (1.8) 310.95 ( 1.3) 740.67 ( 3.1) 270.1 0 (1.1)

Achievement (Rs. lakh) 2013-14 1564.32 (5.1) 429.21 (1.4) 466.10 (1.5) 345.25 (1.1) 1223.76 (4.0) 524.5 (1.7)

2014-15 3013.20 (7.9) 434.99 (1.1) 520.91 (1.4) 402.38 (1.1) 1743.26 (4.6) 583.38 (1.5)

7892 0 0 7431 8291

2741 828 347 2581 2880

3047 1018 383 2865 3208

137.64 (0.6) 7.19 (0.0) 0.71 (0.0) 48.90 (0.2) 2062.73 (8.7)

248.49 (0.8) 11.43 (0.0) 1.73 (0.0) 802.03 (2.6) 1346.70 (4.4)

268.38 (0.7) 6.55 (0.0) 1.00 (0.0) 2729.81 (7.2) 1534.52 (4.0)

Saran Siwan Gopalganj













8438 2602

2931 904

3393 1092

181.50 (0.8) 1032.14 (4.4)

695.65 (2.3) 1415.25 (4.6)

789.90 (2.1) 1935.46 (5.1)

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

8717 4522 5358 4322 582 2386

3028 1571 1861 1501 202 829

3583 2199 2997 1601 286 964

227.55 (1.0) 148.46 (0.6) 341.83 (1.4) 162.91 (0.7) 48.32 (0.2) 153.66 (0.7)

259.05 (0.8) 1041.41 (3.4) 161.14 (0.5) 227.09 (0.7) 74.34 (0.2) 185.78 (0.6)

488.72 (1.3) 2318.87 (6.1) 205.53 (0.5) 121.19 (0.3) 45.82 (0.1) 156.36 (0.4)

Darbhanga Madhubani Samastipur













16208 9423

5630 3273

7907 3398

4292.7 (18.2) 3100 (13.1)

4198.75 (13.6) 3732.24 (12.1)

3951.74 (10.4) 2951.83 (7.7)

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

19468 1174 1971 4296 1988 9756

6762 408 684 1492 691 3388

11727 563 814 1532 977 3388

3830.12 (16.2) 3.4 (0.0) 0.0 (0.0) 0.0 ( 0.0) 327.79 (1.4) 2347.5 (9.9)

7494.06 (24.4) 21.69 (0.1) 3.3 (0.0) 17.85 ( 0.1) 107.7 (0.4) 3143.33 (10.2)

8326.25 (21.9) 11.09 (0.0)

Bhagalpur Banka

3403 3831

1182 1331

1265 1557

93.08 (0.4) 28.71 (0.1)

186.89 (0.6) 17.88 ( 0.1)

233.39 (0.6) 26.23 (0.1)

Saharsa Supaul Madhepura

– –

– –

– –

– –

– –

– –













Purnea Kishanganj Araria Katihar

8272 8830 5022 5108

2873 3067 1744 1774

3464 3540 2180 2001

760.22 (3.2) 419.89 (1.8) 561.64 (2.4) 34.80 (0.1)

254.93 (0.8) 89.60 (0.3) 85.96 ( 0.3) 384.29 (1.2)

295.37 (0.8) 390.67 (1.0) 120.01 (0.3) 155.58 (0.4)

Bihar

226941

23610.70 30761.67 (100.0) (100.0) Note : Figures in the parentheses denote percentage Source : Department of Cooperative, GOB 80000

100000

130

4326.32 (11.4)

38088.71 (100.0)

Table A 3.12 : District-wise Livestock Wealth (2012) (Figures in '000) District

Cow

Buffalo

Pig

Sheep

Goat

Poultry

Patna

306 (2.5)

293 (3.9)

39 (5.9)

13 (5.7)

179 (1.5)

401 (3.1)

Nalanda

176 (1.4)

317 (4.2)

23 (3.5)

8 (3.5)

157 (1.3)

520 (4.1)

Bhojpur

204 (1.7)

202 (2.7)

131 (20.2)

19 (8.1)

115 (0.9)

161 (1.3)

Buxar

162 (1.3)

183 (2.4)

8 (1.3)

16 (6.7)

81 (0.7)

80 (0.6)

Rohtas

396 (3.2)

299 (3.9)

11 (1.7)

14 (6.0)

369 (3.0)

187 (1.5)

Kaimur

204 (1.7)

222 (2.9)

8 (1.3)

43 (18.5)

111 (0.9)

131 (1.0)

Gaya

654 (5.3)

314 (4.2)

83 (12.8)

10 (4.2)

428 (3.5)

496 (3.9)

Jehanabad

80 (0.7)

132 (1.7)

16 (2.5)

2 (0.9)

73 (0.6)

95 (0.7)

Arwal

53 (0.4)

73 (1.0)

4 (0.6)

2 (1.0)

50 (0.4)

134 (1.0)

Nawada

307 (2.5)

130 (1.7)

28 (4.3)

3 (1.1)

224 (1.8)

274 (2.1)

Aurangabad

364 (3.0)

200 (2.6)

11 (1.7)

25 (10.9)

209 (1.7)

377 (3.0)

Saran

321 (2.6)

187 (2.5)

8 (1.3)

5 (2.2)

188 (1.5)

325 (2.5)

Siwan

295 (2.4)

149 (2.0)

10 (1.6)

2 (0.9)

235 (1.9)

232 (1.8)

Gopalganj

188 (1.5)

115 (1.5)

6 (1.0)

0 (0.2)

211 (1.7)

146 (1.1)

W. Champaran

367 (3.0)

260 (3.4)

17 (2.7)

2 (1.0)

593 (4.9)

466 (3.7)

E. Champaran

360 (2.9)

340 (4.5)

16 (2.5)

2 (0.7)

725 (6.0)

684 (5.4)

Muzaffarpur

344 (2.8)

278 (3.7)

5 (0.8)

2 (0.8)

564 (4.6)

853 (6.7)

Sitamarhi

151 (1.2)

186 (2.5)

6 (1.0)

0 (0.1)

366 (3.0)

281 (2.2)

Sheohar

40 (0.3)

47 (0.6)

1 (0.2)

0 (0.0)

96 (0.8)

48 (0.4)

Vaishali

213 (1.7)

169 (2.2)

2 (0.3)

2 (0.7)

299 (2.5)

756 (5.9)

Darbhanga

260 (2.1)

222 (2.9)

9 (1.3)

1 (0.2)

302 (2.5)

480 (3.8)

Madhubani

526 (4.3)

380 (5.0)

16 (2.4)

1 (0.5)

400 (3.3)

259 (2.0)

Samastipur

467 (3.8)

241 (3.2)

3 (0.5)

3 (1.1)

387 (3.2)

551 (4.3)

Begusarai

363 (3.0)

99 (1.3)

4 (0.6)

0 (0.0)

231 (1.9)

256 (2.0)

Munger

167 (1.4)

52 (0.7)

8 (1.2)

0 (0.1)

169 (1.4)

141 (1.1)

Sheikhpura

67 (0.5)

46 (0.6)

5 (0.8)

1 (0.5)

64 (0.5)

60 (0.5)

Lakhisarai

126 (1.0)

58 (0.8)

4 (0.6)

1 (0.6)

107 (0.9)

45 (0.4)

Jamui

459 (3.8)

78 (1.0)

33 (5.0)

11 (4.6)

351 (2.9)

189 (1.5)

Khagaria

239 (2.0)

88 (1.2)

4 (0.7)

0 (0.0)

228 (1.9)

148 (1.2)

Bhagalpur

509 (4.2)

191 (2.5)

9 (1.4)

1 (0.2)

582 (4.8)

358 (2.8)

Banka

552 (4.5)

142 (1.9)

21 (3.3)

16 (6.9)

377 (3.1)

212 (1.7)

Saharsa

298 (2.4)

163 (2.1)

11 (1.7)

0 (0.0)

347 (2.9)

138 (1.1)

Supaul

475 (3.9)

313 (4.1)

11 (1.7)

16 (7.1)

448 (3.7)

176 (1.4)

Madhepura

346 (2.8)

820 (10.8)

7 (1.1)

1 (0.3)

403 (3.3)

198 (1.6)

Purnea

499 (4.1)

133 (1.8)

19 (2.9)

0 (0.0)

516 (4.2)

559 (4.4)

Kishanganj

411 (3.4)

45 (0.6)

12 (1.8)

1 (0.6)

407 (3.4)

736 (5.8)

Araria

678 (5.5)

300 (4.0)

16 (2.4)

3 (1.4)

980 (8.1)

722 (5.7)

Katihar

605 (4.9)

101 (1.3)

23 (3.5)

6 (2.7)

580 (4.8)

876 (6.9)

12154 (100.0)

12748 (100.0)

Bihar

12232 (100.0)

7567 650 232 (100.0) (100.0) (100.0) Note : Figure is parentheses denotes percentage Source : Directorate of Animal Husbandry, GOB

131

Table A 3.13 : District-wise Achievement for Livestock-Related Services

Districts Patna Nalanda Bhojpur Buxar Rohtash Kaimur

Animal Treated (lakh) 2013-14 2014-15 1.29 1.78 0.89 1.05 0.70 0.99 0.16 0.40 1.06 1.21 0.43 0.48

Immunization (Lakh) 2013-14 2014-15 4.74 1.00 3.39 0.50 3.15 0.20 2.49 0.50 4.24 0.30 3.33 0.75

Artificial Insemination (Lakh) 2013-14 2014-15 0.29 0.30 0.07 0.12 0.03 0.13 0.04 0.04 0.98 0.09 0.33 0.05

Free Distribution of Fodder Seed (Qntls.) 2013-14 2014-15 4.50 3.95 2.75 2.15 3.75 2.15

Gaya Jahanabad Arwal Nawada Aurangabad

1.52 0.58 0.19 0.71 0.96

1.58 0.63 0.26 0.85 1.25

7.64 1.70 0.90 3.68 4.49

0.50 0.40 0.30 0.70 0.40

0.10 0.04 0.02 0.08 0.10

0.18 0.06 0.04 0.12 0.16

4.70 0.75 2.15 2.75 1.55

Saran Siwan Gopalganj

0.64 0.43 0.46

0.71 0.78 0.51

4.12 3.36 2.43

0.90 0.50 0.50

0.01 0.03 0.03

0.06 0.05 0.06

3.95 3.75 2.75

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

0.56 0.95 0.66 0.39 0.09 0.58

0.65 1.08 1.13 0.76 0.07 0.74

4.81 5.84 4.78 2.62 0.76 3.13

1.00 1.00 0.30 0.40 0.20 0.20

0.01 0.05 0.38 0.00 0.00 0.02

0.02 0.05 0.09 0.03 0.07 0.02

3.35 5.35 3.15 3.55 0.75 3.15

Darbhanga Madhubani Samastipur

1.17 0.85 1.14

1.44 0.94 2.03

3.89 6.05 5.56

0.40 0.60 0.60

0.04 0.01 0.04

0.11 0.04 0.11

3.55 3.95 4.15

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

0.82 0.30 0.49 0.11 0.36 0.70

1.4 0.06 0.05 0.3 0.64 0.9

2.74 1.65 0.93 1.21 4.39 3.00

0.40 0.70 0.20 0.25 0.50 0.20

0.01 0.01 0.02 0.00

0.06 0.06 0.05 0.03 0.04 0.11

3.55 1.75 1.15 1.15 1.95 1.35

Bhagalpur Banka

0.83 0.65

1.28 1.01

5.36 5.40

1.00 0.60

0.02

0.06 0.03

3.15 2.15

Saharsa Supaul Madhepura

0.60 0.59 0.58

0.9 0.94 0.89

3.79 5.62 4.05

0.50 0.80 0.40

0.00 0.02

0.07 0.06 0.03

2.15 2.35 2.35

Purnia Kishanganj Araria Katihar

0.92 0.58 0.59 0.59

0.10 0.6 0.55 0.76

5.55 3.79 7.62 5.37

0.70 0.20 0.35 0.80

0.10 0.02 0.07 0.10

0.10 0.05 0.11 0.05

2.75 1.35 1.75 3.15

Bihar

25.12

0.05

31.70 147.57 19.75 3.12 2.92 Source : Department of Animal Husbandry, GOB

132

104.60

Fodder Seed was not distribute d in the year 2014-15

Table A 3.14 : District-wise Production of Fish and Fish Seed Production

Districts Patna Nalanda Bhojpur Buxar Rohtas Kaimur

Fish Fish Seeds Production (Lakh) (000 tonnes) 2012-13 14.60 147.60 16.80 181.50 11.80 54.50 7.00 67.80 9.40

139.90

Gaya Jehanabad Arwal Nawada Aurangabad

7.10

88.90

7.70

43.80

6.00 5.50

Saran Siwan Gopalganj

Fish Fish Seeds Production (Lakh) (000 tonnes) 2013-14 12.09 35.30 21.12 293.00 12.60 0.00 8.80 0.00 6.85 0.00 4.85 0.00

Fish Fish Seeds Production (Lakh) (000 tonnes) 2014-15 14.01 21.18 16.59 290.00 9.32 5.00 6.42 3.00 6.30 81.40 7.00 135.00

0.00 41.50

5.27 4.08 2.20 5.93 3.29

68.00 7.00 0.00 0.00 2.00

2.54 3.15 1.76 5.20 5.03

6.00 7.70 3.01 70.00 0.00

18.50 14.00 11.50

272.60 243.00 60.00

22.91 17.95 16.47

80.00 750.00 500.00

9.49 16.96 8.50

75.20 51.00 0.00

West Champaran East Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

17.80 19.90 19.90

480.00 32.20 9.40

24.10

142.50

15.50

0.00

17.09 23.00 19.98 16.80 2.68 6.28

396.35 579.00 95.00 174.60 3.00 40.00

22.17 36.88 20.15 11.15 1.85 13.40

81.50 25.00 530.00 56.25 5.96 30.25

Darbhanga Madhubani Samastipur

19.00 20.40 11.40

518.00 640.00 105.60

26.35 23.60 11.40

650.00 26.50 119.00

38.67 42.30 12.02

6542.50 118.00 109.86

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

14.30

280.00

10.50

57.90

5.60 7.30

0.00 133.50

7.22 4.83 0.05 4.43 6.34 18.38

0.00 0.00 5.75 0.00 5.00 0.00

23.24 6.20 3.01 7.31 2.10 18.75

0.00 6.50 0.00 0.00 0.00 0.00

Bhagalpur Banka

11.00 5.50

0.00 40.00

10.90 8.04

70.00 0.00

13.58 8.26

207.90 43.45

Saharsa Supaul Madhepura

12.90 8.20 7.10

185.20 181.00 101.40

17.16 6.85 12.75

47.23 157.00 0.00

8.18 8.78 2.90

12.00 77.88 0.00

Purnea Kishanganj Araria Katihar

13.60 7.90 7.00 11.80

223.30 249.50 17.90 0.00

15.00 7.10 6.86 14.80

36.00 190.00 157.77 325.35

13.65 6.03 9.99 36.96

35.50 0.00 200.90 0.00

Bihar

400.10 4738.30 432.30 4812.85 Source : Department of Animal Husbandry, GOB

479.80

8831.94

________________

133

CHAPTER IV ENTERPRISES SECTOR

The process of economic development involves a steady decline in the share of primary sectors in Gross Domestic Products and a corresponding increase in the shares of secondary (industrial) and tertiary (services) sectors. Although the size of industrial sector in Bihar is relatively small, this structural change of the economy is observed in Bihar also. This is because while the overall growth rate of the state’s economy has been 10.52 percent during the past decade, its industrial sector has grown at a higher rate of 13.07 percent during the same period. In 2014-15, the industrial sector in Bihar has grown by 9.10 percent, which was marginally lower than the growth rate of GSDP at 9.45 percent (Table 4.1). The slower growth of industrial sector in 2014-15 is due to the slower growth of manufacturing sector which grew at a little over 5 percent. This is basically a reflection of the slower growth of manufacturing sector in the entire national economy. A deceleration in growth rate was also observed for construction and electricity/water supply/gas; but even after that, construction sector grew by 10.45 percent and the latter grew by 7.52 percent. With a considerable improvement is availability of power in Bihar, it is expected that its industrial sector will grow at higher rate in the coming years. Table 4.1 : Annual Growth Rate of Industrial Sector in Bihar Annual Growth Rate Sector 2010-11

2011-12

2012-13

2013-14

2014-15

1.17

11.83

-11.54

11.96

00.00

22.77

-9.20

1.83

3.63

5.41

63.14

-20.61

1.34

0.78

5.72

4.81

-1.30

2.09

5.21

5.24

34.37

7.81

0.12

15.08

10.45

4. Electricity/Water Supply / Gas

2.99

8.35

7.14

9.69

7.52

Total Industry Sector

28.56

3.09

0.99

11.87

9.10

Total GSDP

15.04

10.29

10.69

9.12

9.45

1. Mining & Quarrying 2. Manufacturing (i) Registered (ii) Unregistered 3. Construction

Source: Directorate of Economics and Statistics, GOB

The relative size of the industrial sector in the major states of India can be gauged from Table 4.2 which presents the contribution of the industrial sector to GSDP. For the entire country, this ratio stands at about 29 percent; in Bihar, this ratio is the lowest at about 19 percent. However, it is 134

quite apparent from the table that the process of structural transformation of the economy is visible in every state, including Bihar. The shares in 2014-15 is generally less than those for year before; but this is because the industrial growth was exceptionally low in that year throughout the country. Table 4.2 : Contribution of Industrial Sector in GSDP

States

2012-13 2013-14 2014-15

States

2012-13 2013-14 2014-15

Andhra Pradesh

21.1

19.9

19.6

Maharashtra

29.8

29.0

28.6

Bihar

18.1

18.6

18.5

Odisha

32.7

33.1

33.4

Chhattisgarh

42.3

42.4

41.9

Punjab

28.9

27.9

27.0

Gujarat

40.1

38.2

NA

Rajasthan

32.5

31.4

30.6

Haryana

28.4

27.8

27.0

Tamil Nadu

30.2

29.0

28.0

Jharkhand

38.5

37.5

36.1

Uttar Pradesh

22.2

21.6

20.8

Karnataka

27.6

26.8

26.2

West Bengal

19.3

19.1

18.7

Kerala

21.3

20.3

NA

Madhya Pradesh

27.7

25.9

24.6

India

28.2

28.7

28.5

Source: Central Statistical Organisation (CSO)

4.1 Annual Survey of Industries The Annual Survey of Industries (ASI) is one of the principal source of industrial statistics in India, although it covers only large industrial units. These surveys relate to manufacturing units, employing at least 10 workers (with power) or 20 workers (without power).

In 2012-13, the latest year for ASI data, there were 3347 manufacturing units in Bihar, compared to 2807 units in 2010-11, implying an increase of 19.2 percent (Table 4.3). For the entire country, this growth was lower at 8.6 percent. As regards factories in operation, it was 2946 in Bihar in 2012-13, 88.1 percent of the registered factories. For the entire country, the corresponding ratio was much lower at 80.1 percent. The distribution of the factories between agro-based and non-agro-based indicates that the share of agro-based industries in Bihar is lower (34.1 percent), compared to the national figure (39.5 percent). This actually implies that the substantial potential that Bihar has for agro-based industries is yet to be realised fully. In the Appendix, Table A 4.1 and A 4.2 present the different types of Agro-based and non-Agro-based industries operational in Bihar and India.

135

Table 4.3 : Number of Factories and Factories in Operation 2010-11

2011-12

2012-13

Categories India

Bihar

India

Bihar

India

Bihar

No. of Factories Agro-based

87520 (42.8)

918 (32.7)

93251 (42.9)

1126 (34.8)

87803 (39.5)

1141 (34.1)

Non-Agro Based

117011 (57.2)

1889 (67.3)

124303 (57.1)

2106 (65.2)

134317 (60.5)

2206 (65.9)

All

204531 (100.0)

2807 (100.0)

217554 (100.0)

3232 (100.0)

222120 (100.0)

3347 (100.0)

No. of Factories in Operation Agro-based

69249 (41.6)

822 (32.3)

72769 (41.4)

1014 (35.3)

68698 (38.4)

1005 (34.1)

Non-Agro Based

97387 (58.4)

1725 (67.7)

102939 (58.6)

1858 (64.7)

110403 (61.6)

1941 (65.9)

166636 2547 175708 2872 (100.0) (100.0) (100.0) (100.0) Source: Annual Survey of Industries

179101 (100.0)

2946 (100.0)

All

Table 4.4 : Industries in Bihar 2010-11

2011-12

2012-13

Characteristics India

Bihar

India

Bihar

India

Number of Factories 2.81 3.23 211.66 217.55 222.12 ( in ‘000) (1.33) (1.49) Fixed capital 5.26 7.55 1607.01 1949.55 2180.26 (Rs. ‘000 crore) (0.33) (0.39) Working Capital 2.47 -0.24 620.36 588.79 603.41 (Rs. ‘ 000 crore) (0.4) (-0.04) Persons Engaged 106 127 12695 13430 12950 (in ‘000) (0.84) (0.94) Value of Output 36.05 60.17 4676.22 5776.02 6025.95 (Rs. ‘ 000 crore) (0.77) (1.04) Net Value Added 4.42 5.64 704.58 836.7 851.95 (Rs. ‘000 crore) (0.63) (0.67) Note: Figures in the parenthesis denote percent share to All India Source: Annual Survey of Industries

Bihar 3.35 (1.51) 6.47 (0.30) 2.48 (0.41) 116 (0.90) 51.68 (0.86) 1.30 (0.15)

From Table 4.4, presenting some salient characteristics of the industrial sector in both Bihar and India, it is quite apparent that the average size of the factories in Bihar is smaller, compared to the national average. In 2012-13, the share of Bihar in total number of factories in India was 1.51 percent, but its shares in all other characteristics were much lower — fixed capital (0.30 percent), working capital (0.41 percent), persons employed (0.90 percent), value of output (0.86 percent) and net value added (0.15 percent). The preponderance of the smaller factories is, however, an expected phenomenon, since the process of industrialisation is still at a nascent stage in Bihar. Table 4.4 also shows that the number of factories in Bihar is increasing at a higher rate than the national average; one can, therefore, expect that some of the future factories in the state will be larger ones, making its industrial sector more vibrant. 136

Table 4.5 : Structural Ratios of Industries in India and Bihar (2012-13) Characteristics

India

Bihar

Fixed capital / factory in operation (Rs. lakh)

1217

220

Fixed capital/ employee (Rs. lakh)

16.90

5.50

Workers / factory in operation (Number)

56

34

Employee /factory in operation (Number)

72

40

Net Value Added / factory in operation (Rs. lakh)

476

44

Net Value Added /employee (Rs. lakh)

6.58

1.12

Source: Annual Survey of Industries

Table 4.6 : Share of Gross Value Added in Gross Value of Output (Rs. crore) 2010-11

2011-12

State

Gross Value of Output

Andhra Pradesh

343560

68490 (19.9)

390934

79371 (20.3)

207128

31320 (15.1)

Bihar

36051

4843 (13.4)

60167

6203 (10.3)

51680

2957 (5.7)

Chhattisgarh

79545

15464 (19.4)

93014

15519 (16.7)

103528

18380 (17.8)

Gujarat

806784

109622 (13.6)

998413

110487 (11.1)

1116395

146852 (13.2)

Haryana

215269

29940 (13.9)

243956

35700 (14.6)

278077

45252 (16.3)

Jharkhand

97207

22597 (23.2)

103053

20197 (19.6)

108512

24926 (23.0)

Karnataka

285950

48933 (17.1)

394840

112507 (28.5)

399509

63912 (16.0)

82050

10040 (12.2)

111587

10797 (9.7)

121791

13360 (11.0)

Madhya Pradesh

115898

20280 (17.5)

156584

22719 (14.5)

163930

25468 (15.5)

Maharashtra

785363

168467 (21.5)

1005378

179222 (17.8)

1022032

202578 (19.8)

Odisha

92142

21444 (23.3)

115419

24207 (21.0)

113696

24722 (21.7)

Punjab

148663

23300 (15.7)

178119

36283 (20.4)

171034

23324 (13.6)

Rajasthan

150048

21831 (14.5)

190455

43977 (23.1)

199381

35169 (17.6)

Tamil Nadu

472122

85469 (18.1)

609635

92079 (15.1)

619525

108816 (17.6)

Uttar Pradesh

292216

51326 (17.6)

332655

44595 (13.4)

361329

49206 (13.6)

West Bengal

206111

25133 (12.2)

233201

26044 (11.2)

247187

27094 (11.0)

4676217

825133 (17.6)

5776024

977358 (16.9)

6025945

1007280 (16.7)

Kerala

India

Gross Value Added

Gross Value of Output

2012-13

Gross Value Added

Gross Value of Output

Note: Figures in parentheses are percentages to gross output Source: Annual Survey of Industries

137

Gross Value Added

The information on the operational disadvantages of the factories in Bihar, which are generally small, is presented in Table 4.5. For example, the fixed capital per operating factory is as high as Rs. 1217 lakh in India, compared to only Rs. 220 lakh in Bihar, barely one-fifth of the national average. This difference in capital base is also observed when one considers the ratio of fixed capital per employee. In Bihar, this amount is Rs. 5.50 lakh; but for India, this amount is more than three times at Rs. 16.90 lakh. It is, therefore, not surprising that net value added per employee is only Rs. 1.12 lakh in Bihar, compared to Rs. 6.58 lakh for the entire country. Because of the fact that factories in Bihar are relatively smaller, both in terms of capital base and manpower employed, their capacity for value addition is also rather limited (Table 4.6). For the entire country, ‘gross value added’ as a percentage of ‘gross value of output’ stands at about 17 percent; but for Bihar, their ratio stands at about 12 percent (ignoring the exceptionally low figure in 2012-13). As mentioned before, this structural deficiency of industries in Bihar will probably be removed gradually when the average size of the factories increases in future. Table 4.7 : Estimate of Employment and Emoluments Paid in the Factory Sector (2012-13) Wages, Wages, salaries & salaries & bonus per bonus person (Rs. lakh) annually (Rs.)

No. of factories in operation

No. of persons engaged

No. of unpaid family workers

Andhra Pradesh

12503

503615

9162

494453

739248

149508

Bihar

2946

116399

2103

114181

103785

90806

Chhattisgarh

2143

173076

1086

171990

452618

263165

Gujarat

18175

1363628

4678

1358950

2490522

183268

Haryana

4889

566595

1407

565188

1207652

213673

Jharkhand

2149

188046

5460

182586

557785

305492

Karnataka

9730

862203

2646

859557

1914771

222763

Kerala

6333

380498

2395

378103

493429

130501

Madhya Pradesh

3412

302209

693

301516

576720

191273

Maharashtra

23068

1784909

9329

1775580

4668567

262932

Odisha

2434

263651

686

262965

530189

201620

Punjab

10064

583520

5128

578392

736779

127384

Rajasthan

7935

443027

5918

437109

724240

165689

Tamil Nadu

26739

1965020

11549

1953471

3109133

159159

Uttar Pradesh

11641

825537

4142

821395

1363228

165965

West Bengal

7387

656123

1806

654317

997597

152464

179102

12950025

76172

12873853

23805727

184915

States

India

No. of paid workers

Source: Annual Survey of Industries

138

The industrial development of an economy not only raises its productivity, it also offers larger employment opportunities for workers who were earlier engaged in low-productivity agricultural sector. Table 4.7 presents the extent of employment in those factories which are covered by the ASI. In 2012-13, such factories had employed 1.16 lakh workers in Bihar which accounted for less than 1 percent of 129.50 lakh employees in the country. This is again a consequence of the relatively smaller factories in Bihar. As regards the level of wages for a worker, it was only Rs. 90.8 thousand per year in Bihar, barely half the national average of Rs. 184.9 thousand for the entire country. The industrial sector in Bihar, as was revealed by the ASI data, is characterised by not only its limited size, but the existing factories are also smaller in terms of capital base and number of workers. The state government is, therefore, always eager to promote large industries in the state by providing them with a number of incentives. Since 2013-14, it has approved six such industries. These are — one sugar mill (Sitamarhi), one rice mill with captive power plant (Buxar), two brewery units (Patna), one cement plant (Aurangabad) and one cycle manufacturing plant (Patna). Many of these units have already started production and other will start soon. 4.2 Micro, Small and Medium Enterprises (MSME) For expanding the industrial sector in Bihar, the state government also promotes the establishment of micro, small and medium enterprises (MSME). It is very likely that these relatively smaller enterprises will eventually create a base for large enterprises in the state. At present, the number of registered micro, small and medium enterprises is — 54 units (medium), 1964 units (small) and 2.00 lakh units (micro) (Table 4.8). Between 2010-11 and 2014-15, a period of 5 years, the growth of enterprises has been — 315 percent (medium units), 27 percent (small units) and 9 percent (micro units). This higher growth of medium enterprises, compared to small and micro enterprises, is a positive trend in the industrial scenario in Bihar. Table 4.8 : Year-wise Micro, Small and Medium Registered Units set up in Bihar Investment Employment Employment per unit per unit (in No.) (Rs. crore) (No.)

Year

Medium

SSI

Tiny/ micro

Total

Investment (Rs. crore)

Upto 2009-10

13

1541

180389

181943

1183.48



590338



2010-11

3

33

4799

4835

185.57

3.84

17365

3.59

2011-12

2

56

3904

3962

385.64

9.73

16079

4.06

2012-13

3

53

3681

3737

253.85

6.79

10894

2.92

2013-14

11

131

2991

3133

315.59

10.07

17293

5.52

2014-15

22

150

1879

2051

2839.29

138.43

24065

11.73

Total

54

1964

197643

199661

5163.42



676034



Source : Department of Industry, GOB

139

The figures for investment and employment in Table 4.8 also indicate that investment and employment per unit is steadily increasing in Bihar. Compared to an investment of Rs. 3.84 crore per unit in 2010-11, it was Rs. 138.43 crore in 2014-15. Similarly, the employment per unit was 3.6 persons in 2010-14, which increased to 11.7 persons in 2014-15. In view of varying infrastructural facilities, the location of micro, small and medium enterprises in the state is very uneven. Table 4.9 presents the location pattern of the enterprises that were registered in 2014-15. One can safely conclude that the location pattern of all the existing units also follows a similar pattern. Instead of district-wise information, Table 4.9 presents the distribution of new enterprises among 9 divisions of the state. Most of the enterprises are concentrated in Patna and Tirhut divisions. Their shares in total number of enterprises are — Patna (28.0 percent) and Tirhut (23.4 percent). The two divisions with the least share of enterprises are — Magadh (5.1 percent) and Bhagalpur (1.6 percent). There were four divisions where no medium enterprises were set up in 2014-15 — Bhagalpur, Purnea, Darbhanga and Kosi. The district-wise distribution of MSMEs registered in 2014-15 is presented in Table A 4.3 (Appendix). Table 4.9 : Distribution of Micro, Small and Medium Enterprises Registered in 2014-15 Number of units Divisions Micro

Small

Medium

Total

Patna

481 (25.6)

79 (52.7)

14 (63.6)

574 (28.0)

Munger

222 (11.8)

15 (10.0)

1 (4.5)

238 (11.6)

Bhagalpur

29 (1.5)

3 (2.0)

0 (0.0)

32 (1.6)

Purnea

140 (7.5)

6 (4.0)

0 (0.0)

146 (7.1)

Magadh

99 (5.3)

3 (2.0)

2 (9.1)

104 (5.1)

Darbhanga

139 (7.4)

3 (2.0)

0 (0.0)

142 (6.9)

Kosi

152 (8.1)

0 (0.0)

0 (0.0)

152 (7.4)

Tirhut

439 (23.4)

38 (25.3)

3 (13.6)

480 (23.4)

Saran

178 (9.5)

3 (2.0)

2 (9.1)

183 (8.9)

Total

1879 (100.0)

150 (100.0)

22 (100.0)

2051 (100.0)

Source : Department of Industry, GOB Note : The Figures in the parenthesis denote percent share to total

4.3 Prime Minister’s Employment Generation Programme (PMEGP) The PMEGP is a Centrally Sponsored Scheme to generate employment opportunities by providing bank credit, specially to the traditional artisans. This credit-linked scheme was started in 2008, by merging erstwhile Rural Employment Generation Programme (REGP) and Prime Minister Rojgar Yojana (PMRY). The scheme is implemented by Khadi and Village Industries Commission (KVIC), state level Khadi and Village Industries (KVI) Board, and District Industries Centres (DIC). 140

The information on the performance of this programme in Bihar is presented in Table 4.10. Both in 2012-13 and 2013-14, the performance of PMEGP was modest, the actual attainments being nearly half of the target. For example, in 2013-14, 3093 persons were benefited by the programme, against a target of 5591. A total credit of Rs. 76.75 crore was distributed to them against a target of Rs. 128.60 crore. In 2014-15, however, the achievements under this programme was very limited, when only 1734 persons were benefited with a credit of Rs. 43.58 crore. It is also noted from Table 4.10 that DICs play a major role in implementation of PMEGP, the role of KVIC and KVI Boards being very marginal. Table 4.10 : Performance of PMEGP Agencies

KVIC

KVI Board

DIC

Total

2012-13 Target/Margin Money

Physical (Nos.)

Margin Money disbursed by Nodal banks

Physical (Nos.)

Financial (Rs. lakh)

Financial (Rs. lakh)

1887 (30.0)

1887 (30.0)

4340.66 (30.0)

4340.66 (30.0)

284 (9.0)

305

774.28 (10.1)

2516 (40.0)

6290 (100.0)

5787.56 (40.0) 14468.88 (100.0)

(9.7)

2561 (81.3)

3150 (100.0)

922.89 (12.0)

5971.91 (77.9)

7669.08 (100.0)

559 (10.0)

4473 (80.0)

5591 (100.0)

2013-14 Target/Margin Money

Physical (Nos.)

Margin Money disbursed by Nodal banks

Physical (Nos.)

Financial (Rs. lakh)

Financial (Rs. lakh)

559 (10.0) 1285.81 (10.0)

1285.81 (10.0) 10288.76 (80.0) 12860.38 (100.0)

341 (11.0)

176

(5.7)

2576 (83.3)

3093 (100.0)

467.93 (6.1)

6306.64 (82.2)

7675.46 (100.0)

2294 (30.0)

2294 (30.0)

3060 (40.0)

7648 (100.0)

3321.96 (30.0)

3321.96 (30.0)

4429.27 (40.0)

11073.19 (100.0)

280 (16.1)

130 (7.5)

1324 (76.4)

1734 (100.0)

389.54 (8.9)

3338.79 (76.6)

4358.06 (100.0)

900.89 (11.7) 2014-15

Target/Margin Money

Physical (Nos.)

Margin Money disbursed by Nodal banks

Physical (Nos.)

Financial (Rs. lakh)

Financial (Rs. lakh)

629.73 (14.4)

Source: Department of Industry, GOB Note : The Figures in the parenthesis denote percent share to total

4.4 Agro-based Industries The bio-diversity in Bihar is very wide and the farms here produce a variety of crops, besides foodgrains. These crops include oilseeds, fibres, fruits, vegetables, sugarcane and tea. In addition, the production of milk is also very substantial in Bihar. Thus Bihar offers enormous opportunities for establishment of agro-based industries. Food Processing Industries The status of food processing industries in Bihar is presented in Table 4.11. At the end of 201415, there were 366 food processing industries in the state out, of which 207 (56.6 percent) were operational. By September, 2015, there were a few additions, resulting 379 units, of which 210 (55.4 percent) were operational. Although cereal-based food processing industries are the largest 141

in number (rice, wheat and maize), there are also a number of units producing milk products and edible oils. The total employment in these food processing industries is around 45 thousand. Table 4.11 : Achievements of Food Processing Units As on September, 2015 Number of Units Project

Financial Progress (Rs. lakh) Grant released Approved so for as per Project cost progress

Employment (Nos.)

Total

In commercial Production

Rice Mills

169

89

156409.60

12963.62

5745

Wheat Milling

44

30

35060.15

4729.87

104

Maize Processing

37

21

41053.51

3994.33

2281

Rural Agri Business Centres

52

24

46468.78

6644.26

1572

F & V Processing

16

7

10819.25

1297.89

168

Milk Processing

11

6

24241.58

1082.61

598

Makhana Processing

3

2

369.63

64.82

56

Honey Processing

2

2

224.14

69.80

32

Biscuits Manufacturing

9

8

20875.95

2655.10

1906

Edible Oil Manufacturing

10

8

50749.62

3174.67

2001

Other Projects

24

13

28647.49

2105.38

1900

Food Park

2

0

30980.40

150.00

28597

379

210

445900.10

38932.35

44960

Total

2014-15 Number of Units Project

Financial Progress (Rs. lakh) Grant released Approved so for as per Project cost progress 153990.91 9995.15

Employment (Nos.)

Total

In commercial Production

Rice Mills

162

89

Wheat Milling

42

27

34740.94

3365.34

16

Maize Processing

34

21

40079.50

2509.78

2200

Rural Agri Business Centres

52

24

46468.78

5031.60

1562

Cold Storage

3

1

1510.12

0.00

1834

F & V Processing

14

7

10445.91

1102.03

122

Milk Processing

10

5

13441.58

1063.92

553

Makhana Processing

3

2

369.63

64.82

56

Honey Processing

2

2

224.14

69.80

32

Biscuits Manufacturing

9

7

20875.95

2480.46

1906

Edible Oil Manufacturing

10

8

50749.62

2874.66

2001

Ice Cream

4

2

1073.38

184.37

89

Other Projects

19

12

24420.21

1770.76

1400

Food Park

2

0

30980.40

150.00

28597

Total

366 207 429371.07 30662.69 Source : Department of Industry, Directorate of Food Processing, GOB

142

5566

45934

The Directorate of Food Processing is currently providing special assistance to the sector under the following schemes: (i)

(ii)

Integrated Development Project : Under this project, the ongoing subsidy for cluster scheme is payable at 40 percent and, for individual units, it is 35 percent. The project provides the following facilities: (a)

For the capacity expansion under the cluster scheme, the maximum subsidy amount payable is Rs. 10.00 crore and, for individual unit, it is Rs. 5.00 crore.

(b)

For the scheduled castes / scheduled tribes / women / handicapped entrepreneurs, an additional 5 percent subsidy is payable.

(c)

For the projects costing of Rs. 50-100 crore, an interest subsidy of 3 percent and on the projects costing above Rs. 100 crore an interest subsidy of 6 percent is also payable.

Food Park Scheme : Under this scheme, the rate of payable subsidy has been raised to 30 percent with a maximum of Rs. 50 crore. The establishment of a Food Park at Buxar has been approved. In 2013-14, a sum of Rs. 30 crore was approved for subsidy payment.

(iii) Modernisation Scheme for Established Rice Mills : Under National Food Processing Mission of the central government, the traditional rice milling units are paid 25 percent subsidy for modernization. Under this scheme, an additional state subsidy of 15 percent is payable in accordance with the guidelines of the central government. (iv) Cold Storage Scheme : The cold storage with a capacity of 5-10 thousand tonnes is paid a subsidy of 30 percent on the capital expenditure. For a capacity of more than 10 thousand tonnes, 35 percent subsidy will be payable. The maximum amount of subsidy will be Rs. 5 crore. (v)

Establishment of Silo for Maize Storage : Under this scheme, the benefit of subsidy will be given for establishment of silos for the storage of maize. The construction of silo with a storage target of 5 thousand tonnes of maize will be considered as one unit and a subsidy of 35 percent will be payable on this.

Sugar Industries The area under sugarcane cultivation in Bihar is about 3 lakh hectares which is about 6 percent of the total cultivable area. In view of its widespread cultivation, the state government has decided promote the sugar industry in the state to strengthen the rural economy. Apart from providing direct employment, the sugar industry also creates indirect employment through its related activities. For the benefit of sugar mills, various concessions have been provided by the state government, which include reduction in VAT on ethanol and denatured spirit (from 12.5 to 4.0 percent) and abolition of literage fees on ethanol and liquor. 143

Out of 28 old sugar mills in the state, 19 are closed and only 9 are working, all in the private sector. There are two new sugar mills under Bihar State Sugar Corporation, which were handed over to a HPCL in 2011 on lease. During 2014-15, a total of 574.45 lakh qntls. of sugarcane was crushed in Bihar, providing 52.67 lakh qntls. of of sugar. The production of sugar was about 11 percent less than the level in 2013-14. The overall recovery percentage of sugar has increased marginally in Bihar from 8.6 percent (2012-13) to 9.2 percent (2014-15). Table 4.12 : Performance of Sugar Mills

Name of Sugar Mill

Sugarcane Crushed (lakh qntl.)

Sugar Recovery Produced (Percent(lakh age) qntl.)

Sugarcane Crushed (lakh qntl.)

2012-13

Sugar Recovery Produced (Percent(lakh age) qntl.)

Sugarcane Crushed (lakh qntl.)

2013-14

Sugar Recovery Produced (Percent(lakh age) qntl.) 2014-15

Bagha

48.90

4.31

8.8

82.49

7.89

9.6

79.86

7.55

9.4

Harinagar

90.15

7.86

8.7

139.00

12.94

9.3

125.67

11.52

9.2

Narkatiagunj

69.50

6.26

9.0

95.44

9.11

9.6

82.08

7.65

9.3

Majhaulia

30.73

2.73

8.9

60.75

5.33

8.8

48.47

4.77

9.8

0.10

4.1

Motipur

Closed

Closed

Sasamusa

19.13

1.73

9.0

28.75

2.56

8.9

18.44

1.55

8.4

Gopalganj

35.65

3.06

8.6

50.25

4.53

9.0

38.81

3.69

9.5

Sidhwalia

38.85

3.51

9.0

62.62

5.66

9.9

51.56

4.78

9.3

Riga

29.53

2.56

8.7

52.84

4.7

8.9

47.95

4.2

8.8

Hasanpur

26.82

2.45

9.1

35.27

2.94

8.3

34.55

3.11

9.0

Sub Total

391.69

34.57

8.8

607.41

55.66

9.2

527.39

48.82

9.23

New Sugar Mills Lauriya

13.12

0.64

4.9

26.17

1.8

6.9

25.1

2.00

8.0

Sugauli

13.11

0.67

5.1

30.42

2.04

6.7

21.96

1.85

8.4

Sub Total

26.23

1.31

5.00

56.59

3.84

6.8

47.06

3.85

8.2

417.92

35.88

8.6

664.00

59.50

9.0

574.45

52.67

9.2

Total

Source: Department of sugarcane, GOB

At present, the following schemes are in operation for supporting sugar mills and sugarcane growers : (a)

The farmers are given a subsidy at the rate of Rs. 135 per quintal on purchase of certified sugarcane seed of improved variety, declared by sugar mills. A farmer will get the benefit of this scheme for a maximum of 5 acres and, once a farmer has availed the subsidy, he will not be entitled for the subsidy on that variety for the next three years. 144

(b)

There is a provision for subsidy of Rs. 55 per quintal to the farmers for growing certified seed.

(c)

There is also a provision for subsidy to the sugar mills for growing base seed at the rate of Rs. 15,000 per hectare. Further, there is also a provision of subsidy for growing breeder seed.

(d)

There is a training facility for farmers for use of improved variety of sugarcane, selected from outside the state, and sowing the seeds by twain method.

(e)

There is an incentive amount for inter-cropping with sugarcane as well as diesel subsidy for irrigating the crop.

(f)

There is an arrangement for technical publicity and extension scheme, both of which are closely supervised and monitored.

Despite good soil, favourable to the sugarcane cultivation, the productivity is low in Bihar for several reasons. Presently, only 25-30 percent of the area under sugarcane is having irrigation facility and even this irrigated area gets only 1-2 waterings on an average because, during AprilJune, water is not available in the canal. The state is facing shortage of high-yielding varieties of sugarcane. The state government, in coordination with Sugarcane Research Institute (SRI) and sugar mills, is making an attempt to solve this problem. The inadequacy of technical knowledge and publicity affects the productivity of sugarcane adversely. The officers and staff of the department and the sugarcane scientists are aware of this and are working to overcome this problem. Dairy Industry The animal husbandry is a traditional occupation for rural households, because of its close linkage with farming operations. At one hand it provides animal power for agricultural operations and, on the other, it produces milk. Apart from meeting the in-house demand for milk, the farmers also sell milk to supplement their agricultural income. But, at present, the dairy is viewed as an industry. The Bihar State Milk Cooperative Federation (COMFED), established in 1983, has played a pivotal role in the development of dairy industry in the state. It is the implementing agency for Operation Flood Programme, working towards the white Revolution. It has contributed much towards enhancing the income level of rural households, particularly small and marginal farmers. For the establishment of the milk cooperatives, COMFED has adopted a three-tier pattern, under which there is milk producers’ cooperative society at the village level, milk union at the district level, and finally milk federation at the state level. The number of milk cooperative societies in 2014-15 was 18.4 thousand, of which 14.2 thousand were working, and 5.8 thousand were registered (Table 4.13). The number of working 145

cooperative has increased by 12.1 percent in 2014-15, over the last year when there were 12.7 thousand societies. From Table 4.14, presenting the data on daily milk collection, one can observe that it has increased steadily over the years. During the five year period of 2010-11 to 2014-15, it had grown annually at 12.6 percent. Among the 6 different milk cooperative unions and three projects, the annual growth rate for milk procurement was the highest for Kosi Dairy Project (51.5 percent), followed by Magadh Dairy Project (44.8 percent).

Although there is some year-to-year variations, the milk procurement per functional society per day has also recorded an increase between 2010-11 and 2015-16. Compared to a procurement of 1192 thousand litres per day in 2010-11, it has increased to 1227.69 thousand litres per day in 2015-16 upto September, registering an increase of 2.99 percent. In 2015-16, the two leading milk cooperative unions in terms of milk procurement per cooperative society were — Ranchi (326 thousand litres) and Barauni (241 thousand litres).

The milk procured by COMFED is sold either as milk or milk products. The COMFED also provides a number of services to the milk producing households like artificial insemination, deworming and the like. Table 4.16 presents data on different activities of COMFED during the last five years. It is quite apparent from the table that, over the years, COMFED has been steadily expanding its operation to strengthen dairy industry in Bihar. Table 4.13 : Number of Dairy Cooperative Societies

Organised Societies

2014-15

2013-14

Working Registered Organised Societies Societies Societies

Working Registered Societies Societies

Vaishal Patliputra Milk Union

3840

2929

1218

3623

2631

1200

Deshratna Dr. Rajendra Prasad Milk Union

2124

1987

1079

2020

1854

1039

Mithila Milk Union

2186

2001

879

1926

1689

848

Tirhut Milk Union

3027

1964

887

2709

1754

791

Shahbad Milk Union

3007

2375

1205

2686

2173

1205

Vikramshila Milk Union

1404

813

234

1205

784

163

Magadh Dairy Project

1461

1124

160

1286

971

135

Kosi Dairy Project

1276

950

80

1162

752

27

60

46

12

58

46

12

18385

14189

5754

16675

12654

5420

Ranchi Dairy Project Total

Source : COMFED, GOB

146

Table 4.14 : Progress of Unions and Projects in Daily Milk Collection (in 000 kgs) Union/Project

2010-11

2011-12

2012-13

2013-14

2014-15

CAGR

Vaishal Patliputra Milk Union, Patna

221.23

210.15

224.85

282.09

318.91

10.8

Deshratna Dr. Rajendra Prasad Milk Union, Barauni

333.08

314.12

343.80

375.20

409.72

Mithila Milk Union, Samastipur

248.14

250.98

282.99

340.57

354.51

10.7

Tirhut Milk Union, Muzaffarpur

118.13

115.12

133.53

181.87

196.87

15.9

Shahbad Milk Union, Ara

123.75

129.44

176.17

206.24

259.67

21.5

Vikramshila Milk Union, Bhagalpur

35.05

35.73

48.34

54.88

70.13

19.9

Magadh Dairy Project, Gaya

10.76

7.50

13.19

22.55

39.53

44.8

Kosi Dairy Project, Purnea

6.29

7.13

15.55

20.98

29.24

51.5

Ranchi/ Bokaro /Jamshedpur Dairy

4.95

4.76

6.34

10.24

14.10

32.3

1101.38

1074.93

1244.75

1495.02

1690.24

12.6

Total

6.1

Source: COMFED, GOB

Table 4.15 : Milk Procurement per Functional Dairy Cooperative Society (Kl. per day) Union/Unit

2015-16 (Up to Sept, 2015)

2010-11

2011-12

2012-13

2013-14

2014-15

Patna

136.47

101.5

97.37

122.17

108.88

119.88

Barauni

300.07

213.1

210.4

229.62

206.2

241.17

Muzaffarpur

91.17

87.6

87.91

119.73

100.24

91.80

Samastipur

250.64

216.5

202.28

243.44

177.17

187.87

Shahabad

102.02

78.8

90.02

105.39

108.49

103.26

Bhagalpur

116.83

84.3

74.83

84.95

86.26

87.65

29.9

18.8

23.64

40.41

35.17

31.18

Ranchi Dairy

130.3

212.5

140.89

213.55

306.52

326.30

Kosi

34.75

23.5

34.02

45.9

30.78

38.97

1192.15

1036.6

961.36

1205.16

1159.71

1227.69

Magadh

Total

Source : COMFED, GOB

147

Table 4.16 : Activities by COMFED Indicators

2010-11

2011-12

2012-13

2013-14

2014-15

Cooperative Societies Organised

9760

11638

13691

16675

18385

Operational

6937

8823

10524

12654

14189

Registered

3651

3917

4943

5420

5754

No. of Members (lakh)

5.33

6.29

7.59

8.73

9.42

12.45

14.94

16.90

Collection of Milk Collection of Milk (lakh kg/day)

11.01

10.75

Marketing of Products No. of Retail Outlets

7677

8388

9558

10944

12299

Milk (lakh litres/day)

7.21

8.17

9.20

10.76

11.52

Ghee (matric tonnes)

1270

1329

1717

1638

1756

Lassi (matric tonnes)

4094

3242

6426

5846

4412

Peda (matric tonnes)

770

745

1242

1273

1173

Paneer (matric tonnes)

1936

2090

3022

3087

3284

Dahi (matric tonnes)

2857

3252

4628

6003

6492

Gulab Jamun (matric tonnes)

463

566

1105

1331

1160

Ice-Cream (matric tonnes)

585

841

1083

1321

1702

Services No. of Artificial Insemination Centres

1783

2021

2329

2897

3110

Artificial Insemination (lakh)

11.34

11.85

15.66

18.44

20.30

Vaccination (lakh)

14.97

16.25

17.73

22.81

15.53

De-worming (lakh)

8.37

8.75

12.92

11.67

12.92

205.36

488.19

757.14

885.61

930.93

59297

61097

61088

54285

56143

Seed Distribution (million tonnes) Cattle Feed Distribution ( million tonnes)

Source: COMFED, GOB

Tea Since the nineties, tea has emerged as a new agro-based industry in Bihar. The tea industry is growing fast in the state, as tea is presently cultivated in more than 25 thousand acres, mostly in Kishanganj district. Pothia block, in the district, alone accounts for 50 percent of the area under tea cultivation, followed by Thakurganj (40 percent) and Kishanganj (10 percent). More than 4000 tonnes of tea is grown every year in Bihar. There are 7 tea processing plants in Kishanganj, with an annual output exceeding 2300 tonnes. Thus, there is still a scope for more tea processing 148

plants in Kishanganj. If new plants are established, the tea cultivators need not ferry the tea leaves to the neighbouring north Bengal. A tea promotion policy for the advancement of the tea industry is being finalised by the state government. The state government has announced subsidies and incentive package for new tea processing plants. 4.5 Non-Agro-Based Industry Handloom Despite various schemes of the state government, the production in handloom sector is continuously declining in Bihar. There are more than 1.32 lakh weavers in Bihar who are completely dependent on this sector for their livelihood. There are 1089 primary handloom weavers societies, with nearly 34 thousand handlooms operating under them. It is worth noting that bulk of the weavers are operating outside the cooperative fold. There are two apex-level marketing organisations, viz., Bihar State Handloom Cooperative Union and Bihar State Wool and Sheep Union. There are 6 Regional Handloom Unions located in Nalanda, Sitamarhi, Siwan, Madhubani, Purnea and Bhagalpur. Certain districts of the state have handloom concentration in respect of specific products, as presented in Table 4.17. Table 4.17 : Handloom Concentrated Districts in Bihar District

Products

Bhagalpur

Silk, Cotton, Furnishing cloth, Staple chadar, Exportable Silk and cotton cloth.

Banka

Tasar Silk, Exportable Silk Cloth

Gaya

Cotton and Silk Cloth

Nalanda

Ornamental Curtain, Bed Cover, Interior decoration material and ornamented cloth

Nawada

Tasar Silk and ladies dress material

Darbhanga, Madhubani, Sitamarhi

Fine Cotton long cloth, dhoti, shirting

Aurangabad, Rohtas

Woolen Blanket, Woolen Carpet and Sari

Kaimur

Woolen Carpet, Banarasi Sari

Patna, Siwan

Cotton cloth and Furnishing Cloth

Purnea, Katihar

Jute bags, Jute-blended material, Interior decorative material

Source: Department of Industries, Handloom, GOB

The IL&FS was mandated by the Department of Industries for a diagnostic survey of seven handloom clusters in Gaya, Patna, Darbhanga, Madhubani, Bhagalpur, Siwan and Biharsharif. The study revealed that most of the weavers were still operating on a very small scale, which is not commercially viable. Since the weaver cooperatives have, by and large, failed to deliver, it is necessary to federate the weavers and bring their operations to a sustainable scale. The study also brings out the fact that only 54 percent of the weavers owned their handlooms and the remaining 149

46 percent were provided handlooms by traders. The weaving was found to be the main source of income for about 62 percent of the weavers. More than 50 percent of weavers reported nonavailability of work for 10-12 days in a month. There are 8 state government institutions for imparting training and capacity building of the handloom weavers in the state. They are located at Chakand (Gaya), Amarpur (Banka), Obra (Aurangabad), Patna town (Patna), Baran (Bhagalpur), Kako (Jehanabad), Jhinganagar (Nalanda) and Purnea town (Purnea). During the training, a sum of Rs. 800 per month is paid to the trainees. The targets and achievements of the training programme are presented in Table 4.18. Table 4.18 : Targets and Achievements of Training Programmes No. of Trainees

2010-11

2011-12

2012-13

2013-14

2014-15

Target

204

204

204

204

204

Achievement

162

164

180

163

160

Achievement 79.4 80.4 88.2 79.9 78.4 Percentage Source : Department of Industries, Handloom, GOB

The main problems confronting the handloom sector in Bihar are : (a) scarcity of raw material; (b) lack of training in taking up new products; (c) absence of proper pricing methodology; (d) non-availability of credit facilities; and (e) inadequate market linkages. In this background, various schemes have been launched during the last three years for the development of the handloom sector. An ambitious scheme — Mukhyamantri Integrated Handloom Development Scheme — was started in 2012-13 under plan fund. Under this scheme, the following facilities are being provided to the weavers — (a) Rs. 15,000 per handloom weaver for purchasing new loom; (b) Corpus money of Rs. 5000 per weaver for purchasing material; (c) Rs. 40,000 per weaver for construction of workshed; (d) Establishment of 40 common facility centers for Intensive Handloom zone; (e) Establishment of Bunkar Hatt in Bhagalpur (100 stalls), Gaya, Aurangabad, Madhubani, Patna and Siwan (50 stalls each) for marketing assistance, and (f) Provision of a Corpus fund for Yarn Depot in Bhagalpur and Banka. Besides, there is Bunkar Stipend Yojana also. Powerloom There are 14,000 powerlooms in the state, concentrated mainly in Bhagalpur, Gaya and Banka districts and their main products are staple chadar, furnishing clothes, etc. There is a training centre at Nathnagar (Bhagalpur), run by the Ministry of Textiles of the central government, where 120 powerloom weavers are trained each year. For power loom workers electricity subsidy of Rs. 3/- per unit is being provided for production of cloth.

150

Sericulture Bihar possesses a great potential for sericulture. In order to provide employment in the rural areas, the Chief Minister Tassar Development scheme was started in 2012-13. Under this, a sum of Rs. 170.90 crore has been approved under State Plan for Tassar Area Development in the districts of Banka, Munger, Nawada, Kaimur, Jamui and Gaya, and some water-logged areas in north Bihar where plantation of Arjun and Asan trees is feasible. The scheme will be completed during the Twelfth Plan period. The main programmes under this scheme include : (i)

Plantation of Tasar Food Plant in 10,200 hectares, and seed production and rearing through 408 SHGs under the leadership of Resham Mitra,

(ii)

Formation of 155 SHGs for the production of yarn through Common Facility Centre (CFC),

(iii) Strengthening of Pilot Project Centre, and (iv) Establishment of Cocoon Bank. Table 4.19 : Achievements in Sericulture

Year

2012-13

2013-14

2014-15

Type of Silk

Plantation ( Hectare)

DFLs Rearing ( Lakh)

Total Cocoon Production 100.51

Raw Silk (tonnes)

Mulberry

92.31

4.09

(MT)

12.34

Tassar

768.00

2.41

91.01 (LAKH)

7.30

Castor

191.50

0.40

3.17

(MT)

2.38

Mulberry

117.00

5.07

122.73

(MT)

15.08

Tassar

608.00

7.10

386.94 (LAKH)

37.89

Castor

575.00

0.81

6.50

(MT)

5.20

Mulberry

184.00

5.04

162.16

(MT)

19.50

Tassar

5198.00

7.48

293.88 (LAKH)

32.95

Castor

232.00

1.19

10.20

(MT)

8.16

Source : Department of Industries, Sericulture, GOB Note : DFLs – Disease Free Layings

To promote production of mulberry in the districts of Saharsa, Supaul, Madhepura, Araria, Kishanganj, Katihar and Purnea, the Mukhyamantri Kosi Mulberry Scheme has been approved at a cost of Rs. 118.04 crore, which will be operational till 2016-17. Under this, the mulberry plantation will be taken up in a total of 2900 acres of private land with MGNREGS fund. The state government will make available the facilities like training, study tour, economic assistance, etc. for silk worm rearing. The assistance will also be provided for the production of yarn and clothings. For the production of yarn, two reeling units will be established in each of the districts identified. The yarn produced will be marketed under the brand name of 'Koshiki'. The weavers of Bhagalpur will be assisted for the purchase of improved new looms and upgradation of existing handlooms. The mulberry plantation in 114 acres of private land in Saharsa, Supaul and Madhepura districts have been completed till date. 151

Towards improving the skill of persons engaged in sericulture, the Bihar Institute of Silk & Textiles at Nathnagar, Bhagalpur was established in 1922, construction work for establishing one textile testing lab and one Computer Aided Design (CAD) unit at the institute is in progress Presently, the Institute is imparting a vocational course in Silk Technology of 2-year duration. There are also two Mulberry Reeling Training centres in Kishanganj and Bhagalpur. These centres impart training in mulberry silk reeling and spinning to 40 persons every year. There are 8 Mulberry Extension-cum-Training centres which impart training in mulberry cultivation and rearing to 80 persons every year. The data on achievements in sericulture in the state has been presented in Table 4.19. From the table, it is quite apparent that there has been a steady increase in the production of mulberry, tassar and castor. The increase was particularly high for tassar. Compared to a production of 7.30 tonnes in 2012-13, it was 32.95 tonnes in 2014-15. Bhagalpur Mega Handloom Cluster Bhagalpur Mega Handloom Cluster is being implemented in Bhagalpur & Banka districts. Weavers under this scheme will get benefit under many components. Under this scheme j10 Blocks level cluster has been approved under which 10 Common Facility Center (CFC), two dye house & one design studio & product development centre has been sanctioned by Ministry of Textile. In each CFC, pre-loom/post-loom/dyeing/designing etc. facilities will be available. National Institute of fashion Technology, Patna is Cluster Monitoring and Technical Assistant (CMTA) for this scheme. Govt. of Bihar will contribute 10 to 25% share in different components. Jute Park A Jute park is being establishing in Maranga, Purna with investment cost Rs. 42.36 crore, by registered SPV M/S Punrasar Jute Park Ltd. Under PPP mode. State Govt. has provided 44.30 acres land as equity and Rs. 2.00 crores (two crores) as a grant. In Jute Park, Two units M/S Tirupati Commodities Private Ltd. & M/S Punrasar Jute Park training centre has been established & functional. They are producing Jute yarn, Jute twin, Jute cloths & other Jute Products. Approx. 481 peoples has been employed directly and 800 peoples has been indirectly employed as yet. Leather Industries Accounting for around 8 percent of the country's total bovine population, Bihar has substantial potential for leather industries. Again, the goat population, in Bihar accounts for nearly 12.1 percent of the country's total goat population, ranked third in the country, next only to West Bengal and Rajasthan. Buffalo and sheep account for 4.2 and 1.9 percent, respectively, of the country's total population of those animals. According to a recent survey conducted by Central Leather Research Institute (CLRI), Chennai, Bihar annually produces 2.64 million bovine hides and 5.09 million bovine skins. The state is known for best quality goat skins, cow hides and buffalos calf skins. Goat skins are smaller in size and the best material for the production of glazed kid leather products, which are mostly exported. 152

For hides and skins, there are seven main markets in the state — Patna, Ara, Aurangabad, Munger, Muzaffarpur, Katihar (Pabai) and Purnea. In case of buffalo hides, Ara is the biggest market, whereas Muzaffarpur is the major market for buffalo calf skin. Patna is the major market for goat skin. According to a rough estimate, three trucks loaded daily with 7-8 thousand pieces of goat skins and 2-3 thousand pieces of cow hides are transported from Muzaffarpur to other destinations. Some of the important companies like Tamilnadu Tanners collect hides and skins from the important markets in Bihar through their own agents. The local tanning industries are confined to a few working tanneries in Muzaffarpur and Bata Tannery at Mokama Ghat. As a result, most raw materials find their ways to Kolkata, Kanpur and Chennai, depriving Bihar of the benefits. Khadi and Village Industries The Khadi and Village Industries Commission (KVIC) is a statutory organisation under the Ministry of MSME as the single national nodal agency for the sector. At the state level, the KVIC functions through State KVIC Directorates and State KVI Boards. Its activities include skill development, transfer of technology, research and development, marketing, etc. and it helps in generating employment opportunities in the rural areas. In case of village industries, KVIC is implementing the Prime Minister's Employment Generation Programme (PMEGP). As a nodal agency, KVIC also implements cluster development activities for traditional products of khadi and village industries, under the Scheme of Fund for Regeneration of Traditional Industries (SFRTI). The total employment in the KVI sector is estimated to have increased to 140.38 lakh persons (10.98 lakh is Khadi and 129.40 lakh in village industries) in 2013-14, as against 124.76 lakh persons (10.71 lakh persons in Khadi and 114.05 lakh in village industries) in the previous year. The aggregate performance of KVI sector in respect of production, sales and employment at all India level during 2011-12 to 2013-14 is given in Table 4.20. Table 4.20 : Aggregate Performance of KVI Sector at all-India

Year

Production (value in Rs. crore) Khadi V.I

Sales (value in Rs. crore) Khadi V.I

Employment (in lakh persons) Khadi V.I

2011-12

716.98

21135.06

967.87

25829.26

10.45

108.65

2012-13

761.93

23262.31

1021.56

26818.13

10.71

114.05

2013-14

809.70

25298.00

1079.24

30073.16

10.98

129.40

Source : Ministry of MSME, GOI

In order to help the weavers of the state, a 10 percent additional rebate is allowed on the sale of Khadi products, the benefits of which may be availed by the institutions/ societies registered under the State KVI Board. For the financial year 2013-14, a sum of Rs. 543.36 lakh has been sanctioned for Khadi rebate.

153

4.6 Support Institutions To promote industrial development in the state, the state government has constituted various support institutions. Some of these institutions, with the passage of time, have become weak, but the state government is making efforts to rehabilitate them, considering their importance in improving the industrial climate. Some new institutions are also being set up to attract investments both from within and outside the state. Udyog Mitra The institution of Udyog Mitra has been constituted under the Department of Industries, to help prospective entrepreneurs. The Udyog Mitra also prepares monitoring reports of the schemes being implemented through the District Industries Centre (DIC). During 2013-14, a total of 583 entrepreneurs were benefited by helping them to prepare project profiles, or through in provision of data and information. During 2014-15, 664 entrepreneurs were also benefited. The physical and financial achievements of Udyog Mitra since 2010-11 are given in Table 4.21. Table 4.21 : Physical and Financial Achievements of Udyog Mitra

Year

Amount Allotted (Rs. lakh)

No. of Amount spent Entrepreneurs (Rs. lakh) benefited

2010-11

66.00

66.00

630

2011-12

100.00

67.48

753

2012-13

104.00

78.73

596

2013-14

120.00

101.13

583

2014-15

73.60

73.60

664

Source : Udyog Mitra, GOB

The Udyog Mitra has prepared the District Profile for all the districts in the state, and completed the land-mapping work. The Udyog Mitra has also been nominated as an implementing agency for the National Mission for Food Processing, a scheme launched by the central government. Under the Cluster Development scheme of the central government, the work on the development of 13 clusters is being taken up by the Udyog Mitra. This work includes training through soft and hard interventions, establishment of 'Suvidha Kendras', marketing, and redressal of the problems faced by the entrepreneurs. M/S Dara Shaw & Co. Patna has been appointed as consultant to help Udyog Mitra in this cluster development work. District Industries Centre The District Industries Centres (DIC) were established with a view to render all possible help in setting up of industries, particularly the medium, small and micro units in different districts. The DICs are also involved as a major agency in the implementation of Prime Minister Employment Generation Programme (PMEGP) and they account for more than 80 percent of the total 154

disbursement of money to the beneficiaries. In 2014-15, the DICs disbursed a sum of Rs. 28.39 crore to 2051 entrepreneurs (Table 4.22). Table 4.22 : Achievements of DIC under MSME

Year

Achievement Amount Target Loans/ Achievement (Nos.) Nos. Investments as % of target (Rs. lakh) Establishment of MSME

2010-11

8000

4835

18556.77

60.44

2011-12

8000

3962

38563.91

49.53

2012-13

8000

3737

24173.19

46.71

2013-14

8000

3133

31558.97

39.16

2014-15

8000

2051

2839.29

25.63

Source : Department of Industry, GOB

Bihar Industrial Area Development Authority (BIADA) The BIADA was constituted under the statutory provision of Bihar Industrial Area Development Act, 1974 with a mission to promote industrialisation of the state. BIADA is a pioneering agency for acquiring land to be allotted to the investors for establishing the units after developing necessary infrastructures like roads, power, water, etc. This programme is carried out through its four regional offices at Patna, Darbhanga, Muzaffarpur and Bhagalpur. Till 2013-14, Table 4.23 : Region wise Details of BIADA Activities (2013-14)

Regional Office

Patna Bhagalpur

Total Land Allotted Land Reserved Total Land No. of for Vacant Acquired Running Land Infrastructure, Land (in acres) (in acres) Administrative Units (in acres) Blocks, Roads etc. (in acres) 2732.89 126.80 259.36 43.17 587 1347.29

19.68

101.42

10.98

238

Dharbhanga

411.96

0.00

55.16

27.06

252

Muzaffarpur

1026.74

24.39

183.22

47.62

298

Total

5218.88

170.87 599.16 Source : BIADA, GOB

128.83

1375

BIADA has acquired a total of 5519 acres of land, of which 170.87 acres could be allotted to the investors (Table 4.23). After allowing the land for infrastructure etc., 128.83 acres of land remained vacant. As on March 2014, 1375 units were in a running condition.

155

APPENDIX Table A 4.1 : Value of output and Net value added of selected agro and non-agro based industries (2012-13) (Bihar and India) (Rs. crore) Value of Output NIC 2008

Industrial Group

India

Bihar

Net Value Added

Bihar's Percentage Share

India

Bihar

Bihar's Percentage Share

Agro-Based Food Products/Beverages/ Tobacco 10+11+12 Products 13+14 15 16+31

783349

10520

1.34

80818

2199

2.72

400646

145

0.04

64262

27

0.04

Leather & Leather Products

41277

53

0.13

5672

5

0.09

Wood & Wood Products / Furniture

33373

189

0.57

4848

34

0.69

109930

370

0.34

18489

46

0.25

1368575

11276

0.82

174088

2311

1.33

Textiles/Wearing Apparel

Paper & Paper Products/ printing and Reproduction of Recorded 17+18+58 Media/Publishing Activities Sub Total

Non- Agro Based 19

Coke and Refined Petroleum Products

20

1054341

33057

3.14

112853

-2042

-1.81

Chemicals and Chemical products

472968

329

0.07

76665

37

0.05

21

Basic Pharmaceutical Products

190282

76

0.04

55622

19

0.03

22

Rubber and Plastic Products

194189

263

0.14

25410

12

0.05

23

Non-Metallic Mineral Products

195287

1268

0.65

43111

425

0.99

Metals/ Fabricated Metal Products Except Machinery and Equipment

930889

1785

0.19

111886

77

0.07

Electrical Equipment/ Machinery and Equipment NEC/Repair and 27+28+33 Installation of machinery equipment

477139

350

0.07

98121

81

0.08

Motor vehicle, Trailer, Semi-Trailer/ Other Transport Equipment

530766

30

0.01

79186

11

0.01

Others ( including 32 other manufacturing)

438427

3244

0.74

51704

372

0.72

Sub-Total

4484287

40404

0.90

654558

1035

0.16

Grand Total

5852862

51680

0.88

828645

1304

0.40

24+25

29+30

Source : Annual Survey of Industries, 2012-13

156

Table A 4.2 : Structure of Industries in Bihar (2012-13)

Industrial Group

No. of factories India

Agro based Food Products/ Beverages/ Tobacco Products Textiles/Wearing Apparel Leather & Leather Products Wood & Wood Products / Furniture Paper & Paper Products/ printing and Reproduction of Recorded Media/Publishing Activities Sub Total Coke and Refined Petroleum Products Chemicals and Chemical products Basic Pharmaceutical Products Rubber and Plastic Products Non-Metallic Mineral Products Metals/ Fabricated Metal Products Except Machinery and Equipment Electrical Equipment/ Machinery and Equipment NEC/Repair and Installation of machinery equipment Motor vehicle, Trailer, SemiTrailer/ Other Transport Equipment Others (including 32 other manufacturing) Sub-Total Grand Total

40592 27743 4055 5660

11307

89357

1536 11426 4907 12677 25253

Bihar 820 (2.0) 28 (0.1) 7 (0.2) 207 (3.7) 79 (0.7)

Factories in operation (No.) India Bihar

33627 19794 3027 4619

9106

Fixed Capital (Rs.Crore) India

702 (2.1) 164313 25 (0.1) 7 (0.2) 200 (4.3) 71 (0.8)

1141 1005 70173 (1.3) (1.4) Non-agro based 61 59 1182 (4) (5) 43 35 9167 (0.4) (0.4) 26 26 4224 (0.5) (0.6) 51 50 10057 (0.4) (0.5) 1559 1364 21375 (6.2) (6.4)

142912 7278 11014

Bihar 3055 (1.9) 40 (0) 7 (0.1) 36 (0.3)

Persons Engaged (No.) India

2117725 2331619 285393 142254

Bihar 26129 (1.2) 3376 (0.1) 915 (0.3) 2721 (1.9)

60646

184 (0.3)

428041

2134 (0.5)

386163

3322 (0.9)

5305032

35275 (0.7)

161189 148024 69263 60794 201777

1615 (1) 51 (0) 14 (0) 46 (0.1) 403 (0.2)

99774 633659 532015 539155 891917

2455 (2.5) 1386 (0.2) 807 (0.2) 809 (0.2) 64872 (7.3)

28083

156 (0.6)

22843

136 (0.6)

531427

237 (0)

1653629

4543 (0.3)

20346

53 (0.3)

16555

50 (0.3)

113124

454 (0.4)

1205515

1772 (0.1)

7957

10 (0.1)

6761

10 (0.1)

167712

8 (0)

1058498

693 (0.1)

13207 125392 214749

247 (1.9) 2206 (1.8) 3347 (1.6)

10938 103102 173275

211 (1.9) 1941 (1.9) 2946 (1.7)

316.14 3787 685687 (10.1) (0.6) 3144.56 81124 1764841 7299849 (0.2) (1.2) 6466.37 116399 2151003 12604881 (0.3) (0.9) 311532

Source : Annual Survey of Industries Note : In Table A 3.1 & A 3.2 (Appendix) the total may not match All India total as the total here denotes total based on NIC codes included in Bihar Figures in parentheses represent Bihar’s share to India.

157

Table A 4.3 : Micro/ Small/ Medium Enterprises Registered in 2014-15 Division

Patna

Munger

Bhagalpur

Purnea

Magadh

Darbhanga

Kosi

Tirhut

Saran

District

Micro

Small

Med.

Total

Patna

175

50

4

229

Nalanda

54

0

1

55

Bhojpur

86

9

7

102

Buxar

70

9

0

79

Kaimur

20

4

1

25

Rohtas

76

7

1

84

Munger

32

0

0

32

Jamui

17

0

0

17

Sheikhpura

42

0

0

42

Lakhisarai

33

0

1

34

Begusarai

73

15

0

88

Khagaria

25

0

0

25

Bhagalpur

25

3

0

28

Banka

4

0

0

4

Purnea

53

2

0

55

Araria

25

1

0

26

Kishanganj

28

1

0

29

Katihar

34

2

0

36

Gaya

24

1

1

26

Nawada

31

1

0

32

Aurangabad

13

1

0

14

Jehanabad

17

0

0

17

Arwal

14

0

1

15

Darbhanga

65

2

0

67

Madhubani

40

0

0

40

Samastipur

34

1

0

35

Saharsa

47

0

0

47

Supaul

16

0

0

16

Madhepura

89

0

0

89

Muzaffarpur

173

12

1

186

Vaishali

115

11

0

126

W.Champaran

25

5

0

30

Sitamarhi

22

1

0

23

E.Champaran

77

9

2

88

Sheohar

27

0

0

27

Gopalganj

46

1

0

47

Siwan

96

1

1

98

Saran

36

1

1

38

Total

1879

150

22

2051

Source: Department of Industry, GOB

______________ 158

CHAPTER V INFRASTRUCTURE

A sound infrastructural base is a key for economic development. The availability of adequate infrastructure not only promotes rapid industrialization, it also improves the quality of life of the people. Therefore, the state government is very much focused on development of high quality infrastructure in Bihar. The public investment in infrastructure has increased manifold in the state, with increased private sector participation. In the sectors of construction, communication, and transportation, private sector participation in increasing in recent years. In development of infrastructure, problems like delays in getting approvals, land acquisition, and environmental clearance sometimes pose serious bottlenecks. This needs to be addressed speedily. The time overruns in the implementation of the projects also need to be avoided which generally cause escalation of costs. Equally important is their proper maintenance of infrastructure, in the absence of which their utility and life get reduced. The infrastructure encompasses the whole spectrum of vital services such as roads, railways, civil aviation, telecommunications, postal facilities, energy sector and urban development. The Energy and Urban Development have been discussed in separate chapters of this Economic Survey. The remaining components are covered in this Chapter. 5.1 Roads The transportation network is one of the primary factors that promotes development. At one end, the extensive road network integrates the rural economy with the relatively prosperous urban centres and, on the other hand, it improves people’s access to such facilities like schools, hospitals and markets. Therefore, the state government has resolved to expand the road network so extensively that the capital city of Patna can be reached in less than five hours from any place in the state. To achieve this goal, the network of roads and bridges has expanded considerably in recent years. The state government is also developing a Road Construction Vision 2020 to ensure smooth road connectivity throughout the state. The public investment in road and bridges has increased substantially in recent years. However, the state still continues to remain far behind other states in terms of road length per lakh of population. In 2012-13, Bihar reported only 190 kms. of road length per lakh of population, as against 358 for all-India (Table 5.1). All major states are much ahead of Bihar in terms of road length per lakh of population, except Jharkhand and Haryana. But Jharkhand and Haryana have very low population density. However, in terms of road density, Bihar has 210 kms. of road length per 100 sq.kms., ahead of other states, except Kerala and West Bengal. 159

Table 5.1 : Statewise Road Length per Lakh of Population and per 100 sq.km. (2013) Road length per lakh of population (km) State

NH Road

SH Road

Andhra Pradesh

5.9

12.7

290.8

Bihar

4.0

4.3

Chhattisgarh

9.0

Gujarat

NH Road

SH Road

Other Road

Total Road

309.4

1.8

3.9

89.4

95.1

181.2

189.5

4.4

4.8

200.3

209.5

20.5

319.9

349.3

1.7

3.9

60.4

66.0

6.3

30.6

237.1

274.1

2.0

9.4

73.0

84.4

Haryana

6.4

9.5

151.6

167.5

3.7

5.5

86.9

96.1

Jharkhand

7.2

5.9

99.2

112.4

3.0

2.5

41.1

46.5

Karnataka

7.6

34.0

458.4

500.0

2.4

10.8

146.0

159.3

Kerala

4.4

13.0

536.5

553.9

3.8

11.2

461.3

476.2

Madhya Pradesh

7.0

15.1

293.0

315.1

1.7

3.5

69.0

74.2

Maharashtra

4.0

34.5

486.2

524.7

1.5

12.6

177.6

191.6

Odisha

10.5

8.6

642.4

661.5

2.8

2.3

173.2

178.3

Punjab

5.6

5.3

343.9

354.8

3.1

2.9

189.4

195.5

10.5

15.3

304.1

329.9

2.1

3.1

60.9

66.1

Tamil Nadu

6.9

14.9

308.1

329.9

3.8

8.3

170.9

183.0

Uttar Pradesh

3.9

3.9

210.4

218.2

3.2

3.2

174.5

181.0

West Bengal

2.9

4.3

332.0

339.3

3.0

4.5

341.5

348.9

All

6.5

14.0

337.3

357.8

2.4

5.1

124.2

131.8

Rajasthan

Other Road

Total Road

Road length per 100 sq. km. (km.)

Source: Basic Road Statistics of India, 2012-13 Table 5.2 : Length of Roads in Bihar (kms.) 2001

2005

2010

2015 (up to September)

National Highway (NH)

3410

3629

3734

4595

State Highway (SH)

2383

2177

3787

4253

Major District Road (MDR)

7739

8891

8965

10634

Type of Road

Source: Departments of Road Construction, GOB

Table 5.2 shows the progress of National Highways (NH), State Highways (SH) and Major District Roads (MDR) during 2001-2015. Total length of NH has increased substantially from 3410 kms. (2001) to 4595 kms. (2015). As may be observed, the highest increase in the length of NH by 861 kms. was registered between 2010 and 2015. The length of SH has also increased from 2383 kms. (2001) to 4253 kms. (2015), with the highest increase of 1610 kms. between 2005 and 2010. During 2001 to 2015, MDR has also increased significantly from 7739 kms. to 10,634 kms. 160

The district-wise status of road network in Bihar during 2013, 2014 and 2015 is given in Table A 5.1 (Appendix), which highlights the inter-district variation in three types of roads — NH, SH and MDR. In terms of road length of total road (NH, SH and MDR) per 100 sq. km. area, Patna (36.5 kms.), Jehanabad including Arwal (35.4 kms.) and Supaul (35.3 kms.) are three leading districts. The three most deficient districts are — West Champaran (10.7 kms.), Munger (10.9 kms.) and Kaimur (13.2 kms.). As regards road length per lakh population, Supaul (38.0 kms.), Sheikhpura (32.1 kms.) and Jahanabad including Arwal (30.5 kms.) are the leading districts, whereas Munger (11.2 kms.), Vaishali (12.0 kms.) and East Champaran (12.4 kms.) are the lagging districts. There are four categories of roads according to width, comprising single (3.75 m.), intermediate (5.50 m.), double (7.00 m.) and multiple lanes (more than 7.00 m.). Though the highest proportion of National Highways (67.3 percent) and State Highways (65.5 percent) belong to the category of double or multiple lane, a large proportion (54.0 percent) of Major District Roads were single lane (Table 5.3). Table 5.3 : Status of Highways in Bihar (September 2015) National Highways Category of Road

State Highways

Major District Roads

Length (km.)

Percentage share

Length (km.)

Percentage share

Length (km.)

Percentage share

Single Lane (3.75 m width)

675

14.7

845

19.9

5737

54.0

Intermediate Lane (5.50 m width)

795

17.3

623

14.7

3273

30.8

Double Lane (7.00 m width)

1803

39.2

2741

64.5

1440

13.5

Multiple Lane (More than 7.00 m width)

1289

28.1

44

1.0

184

1.7

34

0.7









4595

100.0

4253

100.0

10634

100.0

Missing Link Total

Source : Department of Road Construction, GOB

National Highways (NH) The National Highways connect Bihar with other states for transportation of goods and passengers, promoting the growth of its economy. As on September, 2014, a total of 35 NHs, measuring 4321 kms were there in Bihar. With the addition of 3 more NHs during the year, the total length of NH has become 4595 kms. Around 68 percent of NH are double and multiple lane roads and the rest 32 percent single and intermediate lane roads. The NH is fully financed and maintained by the central government. The trend of expenditure on NH development in Bihar is an indicator of the attitude of the central government towards the development needs of the state. It is clear from Table 5.4 that only 4.9 percent of the total length of NH in India lies in Bihar (2013-14). The expenditure made by the central government is only 1.0 percent of total national expenditure on development of NH and only 7.9 percent of the total maintenance expenditure. For total expenditure (development plus maintenance), Bihar's share is only 1.4 percent, although Bihar accounts for 8.6 percent of country's population. This shows the 161

negligence of the central government towards Bihar. The state government is very sensitive about this matter and it has spent Rs. 969.77 crore for maintenance and upgradation of 2232 kms. of NH from its own exchequer. Table 5.4 : Road Length and Expenditure on Development and Maintenance of National Highways

NH (in kms.)

Expenditure on NH Development (Rs. crore)

Expenditure on NH Maintenance (Rs. crore)

Total Expenditure on NH (Rs. crore)

2010-11 2013-14 2010-11 2013-14 2010-11 2013-14 2010-11 2013-14 Bihar

3642

4539

250

280

37

142

287

423

India

70934

92851

19617

27987

1920

1794

21538

29781

5.1

4.9

1.3

1.0

1.9

7.9

1.3

1.4

Bihar share in India

Source : Planning –II, Ministry of Road Transport & Highways. Note : Expenditure of NHAI is not included in Bihar’s figure

State Highways (SH) The State Highways (SH) are the arterial roads in a state for inter-district movements. They traverse the length and breadth of the state, connecting the state capital, district headquarters and important towns and cities and link up with the NH and adjacent SH. The total length of the SH in Bihar in 2015 was 4253 kms. Around 65 percent of it were double-lane roads, 20 percent single-lane roads, and 15 percent intermediate-lane roads. The multiple-lane roads with more than 7-meter width constituted only 1.0 percent of the SH. Table 5.5 : Progress of Work under Conversion of State Highways

No. of districts

Total Approved Length (kms.)

No. of Packages

Revised Approved Fund (Rs. crore)

Released Fund (Rs. crore)

Physical Progress

CPWD

33

1760

35

2727.80

2716.95

Completed

IRCON

5

354

17

888.79

880.03

Completed

Total

38

2114

52

3616.59

3596.98

Agencies

Source : Department of Road Construction, GOB

The development of SH in Bihar is presently being done under Rashtriya Sam Vikas Yojana (RSVY). Under an agreement between the state and central government, this programme is being implemented by two agencies — Central Public Works Department (CPWD) and M/s IRCON International. The CPWD is implementing the project in 33 districts, and IRCON in remaining 5 districts. The CPWD has converted 1760 kms. of roads into SH at a cost of Rs. 2727.80 crore, and IRCON has converted 354 kms. of roads into SH at a cost of Rs. 888.79 crore. The districtwise details under this road development are given in Table A 5.2 (Appendix). In addition to the above work, with the fund saved, the CPWD has taken up the work of widening SH-79 (44.40 kms. of Dumraon-Bikramganj Road) and IRCON started similar work on SH-104 (23.40 kms of Dighwara-Bheldi-Amnaur Road). 162

Table 5.6 : Status of Roads under different projects (As on Sept. 2015) SH No.

Name of State Highways

Approved Length (kms.)

Administrative Financial Approval Progress (Rs. crore) (in percent)

Remarks

Aided by Asian Development Bank 68

Shivganj-Baidrabad

82.25

252.38

77.53

In progress

69

Dumaria–Rani Talab

152.80

442.27

73.24

In progress

70

Gaya - Rajauli

58.23

144.19

100.00

Work Completed

71

Jehanabad-Islampur

85.20

234.80

100.00

Work Completed

73

Siwan-Shitalpur

88.00

290.34

100.00

Work Completed

74

Hajipur –Kesaria- Areraj

87.06

269.28

100.00

Work Completed

75

Darbhanga –Kamtaul- Madhwapur

46.75

211.57

100.00

Work Completed

76

Araria-Supaul-Bhaptiahi

121.00

436.36

100.00

Work Completed

77

Kursaila-Raniganj-Forbesganj

102.93

348.67

100.00

Work Completed

824.22

2629.86

Total

Upgradation of Roads under BSHP-II

78

81

90

Bihta-Chandi-Sarmera (Bihta – Daniyanwan 0 to 46.70 kms) & Chandi-Sarmera ( 46.70 to 94.2 kms) Sakkadi-Nasriganj Sakkadi-Sahar (km. 0 to km 47.55) & (SaharNasariganj(km. 47.55 to km 86.80) Mohammadpur-Chhapra (Mohammadpur - Karankudariya (km. 0 to km 20.00) & (Karankudariya Chhapra (20.00 to km 64.70)

104.40

1117.58

39.22

In progress

83.40

307.66

17.63

In progress

64.700

361.54

31.40

In progress

91

Birpur- Udakishunganj

106.388

592.28

54.67

In progress

89

Siwan-Siswan

33.065

167.96

43.69

In progress

387.49

2547.02

Total

Work under Additional Financing under BSHP – II 83

Bagi-Barbigha

37.65

170.32

46.00

In progress

86

Saraiya-Motipur

28.2

210.88

33.26

In progress

87

Runnisaidpur-Nanpur-Pupri -Sursand-Bhiswa

67.76

443.02

24.18

In progress

88

NH-103 BarunaPul- Rasiyari

120.9

834.47

22.82

In progress

Total

254.51

1658.69

Source : Department of Road Construction, GOB

163

Table 5.6 presents the status of road projects in Bihar in September 2015 aided by the Asian Development Bank (ADB) and under Bihar State Highway Project (BSHP). The ADB has approved 824.22 kms. of SH, at a cost of Rs. 2629.86 crore. Out of 9 projects under ADB, 7 projects have been completed, while 2 are in progress. Under BSHP II, a total length of 387.49 kms. of SH is to be upgraded, at a cost of Rs. 2547 crore. This work is also under progress. Finally, a road length of 254.51 kms. were to be made double lane, through additional financing under BSHP-II. The approved cost for this part of the road project is Rs. 1658.69 crore and the work is in its early stage. Major District Roads (MDR) The Major District Roads are the branch roads of the State and National Highways and serve as roads for intra-district movement. They traverse the length and breadth of a district to connect the villages to the urban centres. There was 10,634 kms. of MDR in the state as on September, 2015, with a major portion (54 percent) having a width of 3.75 meters. This width is quite inadequate for the present transport density in the state. Out of the total length of MDR, 4897 kms have been converted into intermediate or 2-lane width. Those roads which are yet to be converted into wider roads, have undergone surface renewal or repaired work. In future, they will be converted into intermediate or 2-lane roads. The various works on MDR are being financed from State-Plan, NABARD (RIDF), Central Road Fund, Left Wing Extremism-Affected Area Fund, Indo-Nepal Border Road Development Programme, Roads of Economic Importance, Roads of International Importance, and Finance Commission grants. In addition to the running schemes, an amount of Rs. 2890.34 crore has been approved for upgradation of 1810 kms. of MDR and SH during 2014-15. There is a target of completing the work on 1165 kms. of roads during 2015-16. Development of Roads in Left Wing Extremism-affected Area Scheme There are 5 extremism-affected districts (Arwal, Aurangabad, Gaya, Jamui and Jehanabad) which have been selected under the Road Requirement Plan-I (RRP-I). A total cost of Rs. 616.30 crore for 674.3 kms. of roads (71.8 kms of NH, 68.1 kms of SH and 534.4 kms of MDR) has been approved under 41 projects of this scheme. By the end of September 2015, a total of 655.60 kms. (65.7 kms of NH, 64.60 kms of SH and 525.30 kms of MDR) have already been completed under 39 projects, with an expenditure of Rs. 531.48 crore. Under Road Requirement Plan-II (RRP-II), proposals for 68 more road projects (7 under SH and 61 under MDR) have been submitted to the central government and approval is awaited. State Plan Schemes There are 4253 kms. of SH and 10,634 kms. of MDR under State Plan Schemes. The Construction-cum-Maintenance Bidding approach has been adopted for these roads. Under this bidding package, a sum of Rs. 28.45 crore per 100 kms. of road length is approved. For proper 164

maintenance of roads, the state government has adopted the policy of a long term performancebased Road Assets Maintenance Contract System. This ensures proper maintenance of roads for a relatively longer period (normally 5 years). During 2014-15, the upgradation and strengthening of 1015.23 kms. of MDR were completed. During 2015-16, a sum of Rs. 1329.00 crore was allotted under MDR sector, and a sum of Rs. 242.81 crore was allotted for the roads in scheduled caste-dominated areas. Presently, the work on 1828 kms. of road at a cost of Rs. 3051.97 crore is under progress. Rural Roads Rural roads serve as the feeder roads as well as the roads for inter-village movements. They pass through the rural areas, connecting the village to one-another and to the nearest road of higher category (MDR, SH and NH). It helps the rural economic activities like local trade and business, and enables farmers to take their agricultural produce to more profitable markets nearby. It also helps the surplus labour available in the farm sector to move to the nearest work station for more fruitful economic activities. During 2014-15, a total of 50,596 kms. of rural roads were constructed with an expenditure of Rs. 26,233 crore in all the seven schemes, mentioned in Table 5.7. However, Mukhya Mantri Gram Sadak Yojna, Apki Sarkar Apke Dwar Yojna, Special Component Programme for Schedule Caste Mahadalit Yojana (SCP) and Border Area Development Programme have now been discontinued. These four schemes together covered 14.4 percent of financial expenditure and 16.3 percent of road construction in 2014-15. The Pradhan Mantri Gram Sadak Yojana alone had provided 63.4 percent finance for 66.3 percent of rural roads. Table 5.7 : Programme-wise Length of Rural Roads Constructed (2014-15) SI No.

Name of the Scheme

Roads Bridge Expenditure Constructed Constructed (Rs. crore) (km) (No)

1

Mukhya Mantri Gram Sadak Yojana

2

Apki Sarkar Aapke Dwar Yojana

3

Minimum Needs Programme

4

Special Component Programme for Schedule Caste Mahadalit Yojana (SCP)

5

R.I.D.F NABARD Scheme

6

Border Area Development Programme

7

Pradhan Mantri Gram Sadak Yojana

33540.8

8

Mukhya Mantri Gram Sampark Yojana

1787.86

Total

6706.18

2939.00

738.06

336.19

4397.98

39

760.42 2604.66 60.27

50596.23

Source : Department of Rural Works, GOB

165

16644.01 1947.6

206

Plan Stopped

2146.15 23.67

48

Plan Stopped Plan Stopped

1724.24 473.07

119

Remarks

26233.93

Plan Stopped

Under an Integrated Action Plan (IAP) scheme in PMGSY, 11 districts were identified for providing connectivity to all habitations having a population of 250 and above. Later, Mukhya Mantri Gram Sampark Yojana was started in 2013-14 for covering 27 districts which were not covered under PMGSY. Under this scheme, 1787.86 kms. rural roads have been constructed at an expenditure of Rs. 1948.00 crore.

Road Vision 2020 To sustain the economic growth of Bihar, there should a matching infrastructure. For sound infrastructural investment plans, one needs to anticipate the future requirement and capacity. Otherwise, the infrastructure becomes inadequate in a few years leading to the same gap as before. The commitment of the state government to improve and expand infrastructure in the state is reflected in the investment in infrastructure during the last decade. The state government is preparing Road Vision 2020 for expansion of road network and removal of congestion in traffic. Major objectives of Road Vision 2020

• Ensuring connectivity from Patna to farthest districts within 5 hours • 2-laning of all State Highways (SH) • Single lane MDR to be converted into intermediate lane MDR • Replacement of narrow, old and screw pile bridges with wider RCC bridges • Use of latest technology for safer and comfortable journey • Ensuring connectivity of all SH with NH • Ensuring connectivity with commercial centres and places of tourist importance Major Works Planned during 2016-20

• 5 major road projects (Noorsarai-Silao Road, Anisabad-Aurangabad-Hariharganj Road (NH 98), Dehri-Nasariganj-Bikramganj-Dinara Road (SH 15), Darbhanga-Samastipur Road (SH 50) to Sobhangram (NH 57), Dighwara-Bheldi-Amnour-Taraiya-Panapur to Semari Mandir (SH 104) and 5 major bridge projects (4-Lane bridge on river Ganga connecting Arrah and Chhapra, Rail-cum-Road Bridge over river Ganga between Digha and Sonepur, Bridge between Gandaul and Biraul bridge between Gaya and Manpur on river Falgu, Flyover between Mithapur ROB round about to Chiraiyatanr bridge via Station Road and extension of Exhibition Road arm of Chairaiyatanr bridge up to Gandhi Maidan, Bishunpur bridge between Bettiah and Gopalganj over river Gandak) will be completed in calendar year 2016. 166

• 7 major road projects (Bihta-Sarmera Road – SH 78, Nalanda-Islampur Road, Nagarnausa-Chhatighat -Kalyan Bigha Chero - Bahadur PWD road, Chandi to Chhabilapur SH-71 via Tharthari-Parwalpur-Andwas, Didarganj-Bakhtiyarpur road – SH 106, road of Dhanha Ratwal bridge over river Gandak in West Champaran, Supaul – Galgalia – NH 327E (Galgalia – Bariahi) and 4 major bridge projects (AIIMS-Digha elevated corridor, Bangraghat (bridge) between Muzaffarpur and Saran, Bridge between Daudnagar and Nasariganj on river Sone, Sattarghat Bridge on river Gandak) will be completed by 2017.

• 4 major road projects (road along Indo-Nepal Border in Bihar, Fatuha-Harnaut-Barh Section – NH 30A, Birpur - Bihpur Section – NH 106, Sheohar - Sitamarhi - Jainagar Narahiya Section – NH 104) and 2 major bridge projects (Ganga Path, 4-Lane Ganga Bridge between Bakhtiarpur and Tajpur, Mithapur flyover to Chiraiyatanr bridge via Karbigahiya) will be completed in the year 2018.

• 1 major bridge project (4-lane bridge over river Ganga connecting Sultanganj and Aguwani Ghat) will be completed in 2019.

• 1 major bridge project (6-lane bridge over river Ganga connecting Kachchi Dargah and Bidupur) will be completed by the end of 2020.

Bihar Rural Road Maintenance Policy was introduced for strengthening and maintenance of rural roads. Up to June 2015, a total of 11,000 kms. of rural road have been maintained at an expenditure of Rs. 2200.00 crore. The single road connectivity has now been given to 60,284 habitations, out of 1,08,591 habitations in the state, on the basis of a state core-network, prepared by the Department of Rural Works. The Bihar Rural Road Development Agency was established for monitoring of rural roads. 5.2 Bridges Sector During 2005-06 to 2015-2016 (up to January 2016), the construction of 1013 major and minor bridges under Mukhyamantri Setu Nirman Yojna and 710 mega, major and minor bridges under other different heads have been completed. The mega bridge over river Sone between ArwalSahar (Rs. 163.00 crore), Balauaha Ghat Bridge over river Kosi under district Saharsa (Rs. 531 crore), bridge over river Gandak between Dhanha-Ratwal under West Champaran ( Rs. 358.67 crore), bridge over river Kosi at Vijay Ghat of Nawgachia under District Bhagalpur (367.81 crore), flyover between Sheikhpura more to Jagdeopath on Bailey Road in Patna (Rs. 298.70 crore) and 6 Lane RCC HL bridge over river Falgu under district Gaya have been completed. Besides these, under Rural Infrastructure Development Fund (RIDF) of NABARD, the work for the construction of High level RCC bridge on Gandak river at Bishanpur (Gopalganj) and High level RCC Bridge over river Gandak in Chakia-Kesharia-Sattarghat road (East Champaran) are under progress. Similarly, bridge over Kamla river with culverts and guide bunds on approach road between Gandaul (Saharsa) and Hathi Kothi near Biraul (Darbhanga), a 4-lane high level 167

bridge on Sone river between Daudnagar (Aurangabad) and Nasriganj (Rohtas), bridge over river Gandak at Bangra Ghat under District Gopalganj and bridge over river Ganga at Aguanighat between Khagaria and Bhagalpur District (Rs. 1710 crore) are in progress. Under Plan head, the work for the construction of bridge over river Ganga between Arah via Babura to Doriganj (Rs. 676 crore) and approach of rail-cum road bridge of Digha- Patna, Saran side (Rs. 245 crore) are in progress. The construction of several flyovers including Mithapur to Chiraiyatand flyover via Station road and extension of Exhibition road arm upto Gandhi Maidan in Patna (Rs. 167.90 crore) flyover connecting Bhikhari Thakur (Yarpur) flyover and Mithapur flyover via R-Block in Patna (Rs 166.15 crore), flyover connecting Mithapur flyover and Chiraiyatand flyover via Karbigahia in Patna (Rs. 121.86 crore), Lohia Path Chakra at Bailey road Patna between Lalit Bhawan and Vidyut bhawan (Rs. 391.48 crore) are also in progress. Under RIDF (XIV to XX), a toatal amount of Rs. 7462.30 crore was approved for 297 projects in different district of Bihar. Out of these projects, 90 projects have been completed. The maximum number of 93 projects were approved under RIDF- XIX; however, the maximum amount of Rs. 2890.28 core was approved under RIDF-XX. Table 5.8 : Status of Selected Projects for Implementation under RIDF-XIV to XX

RIDF

No. of Districts

No. of Projectes

Approved Amount (Rs. crore)

Progress (In Percent)

No. of Projects Completed

XIV

3

3

1219

66.7

2

XV

8

24

470.27

100

24

XVI

15

25

543.21

68

17

XVII

12

22

438.69

63.6

14

XVIII

16

86

1130

23.3

20

XIX

21

93

770.85

14

13

XX

7

4

2890.28

--

--

Source : Bihar Rajya Pul Nirman Nigam Ltd, GOB

Road Overbridge (ROB) Under the tripartite agreement made in 2005, the construction of road overbridges at 22 railway crossings in the state was taken up on cost sharing basis. The work on 14 of these road overbridges was undertaken, out of which 10 have been completed and rest 4 are under various stages of completion. Besides, 8 road overbridges on Major District Roads and approach road to these roads have been completed at a total cost of Rs. 242.00 crore. The work for 11 new road overbridge on railway crossing are also under progress, for which the share of railway is Rs. 257 crore and that of the state is Rs. 609 crore. Under Central Road Fund (CRF), 76 projects have been approaved, out of which 66 have been already completed and rest 10 are in various stages of completion.

168

Mukhyamantri Setu Nirman Yojana The state government has started the Mukhyamantri Setu Nirman Yojana in order to provide all weather connectivity to remote rural areas. Under this programme, works up to Rs. 25 lakh are implemented by the district administration, and schemes costing higher amounts are given to the Bihar Rajya Pul Nirman Nigam Limited (BRPNN). Under this yojana, a total of 85 projects have been completed in 2014-15 and 70 in 2015-16 (upto January, 2016) Bihar Rajya Pul Nirman Nigam Limited The Bihar Rajya Pul Nirman Nigam Limited is functioning under the Road Construction Department. It was established as a public limited company in November, 1974. The Nigam has been entrusted with the responsibility of constructing bridge having an estimated cost of more than Rs. 25 lakh. Between 2010-11 and 2015-16 (upto January, 2016) BRPNN has constructed a total of 1023 bridges at a total cost of Rs. 5618.17 crore (Table 5.9) Table 5.9 : Number of Completed Bridges Year

No. of Bridge

Expenditure

2010-11

195

797.70

2011-12

261

883.21

2012-13

136

787.87

2013-14

119

1151.81

2014-15 179 729.65 2015-16 133 1267.93 (up to January, 2016 Total 1023 5618.17 Source : Bihar Rajya Pul Nirman Nigam, GOB

The BRPNN, a public sector undertaking, is a profit making corporation. Since 2010, BRPNN has been generating more than Rs. 100 crore of gross profit every year. This shows an efficient financial management, leading to higher total revenue, gross profit and net profit. It was actually a loss-making organization before 2007-08. But now it is a profit-making one and its net profit has increased from Rs. 35.58 crore in 2010-11 to Rs. 80.93 crore in 2014-15 (Table 5.10). The total cost of projects undertaken by the corporation has increased from Rs. 1158.42 crore in 2010-11 to Rs. 1739.32 crore in 2014-15. Table 5.10 : Turnover of Bihar Rajya Pul Nirman Nigam Limited

Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Estimated)

Total Expenditure on projects 1158.42 1294.36 1273.30 1480.85 1739.32 1750.00

114.68 175.62 141.94 159.22 183.22

Personnel and Administrative Expenditure 44.05 49.62 34.95 39.03 44.12

(+) 70.63 (+) 125.99 (+) 106.99 (+) 120.18 (+) 139.10

(+) 35.58 (+) 84.24 (+) 63.81 (+) 72.54 (+) 80.93

188.00

45.00

(+) 143.00

(+) 85.00

Total Revenue

Gross Profit

Source : Bihar Rajya Pul Nirman Nigam, GOB

169

Net Profit

5.3 Road Transport The road transport is the most preferred mode of transport, compared to rail and air transport for both freight and passengers. It plays an important part in propelling economic development and social integration of the state. The number of registered motor vehicles in the state has increased rapidly, at an annual rate of 12.2 percent during the last five years (2010-15). As per the Year Book of Road Transport 2013, Bihar was the second fastest growing state in India (16.2 percent) in terms of registration of vehicles during 2009-13. However, the state still continues to remain at the bottom among all the major states in terms of number of vehicles per thousand of population. Till 2013, Bihar reported only 36 vehicles per thousand of population, compared to 149 for all states. With 282 vehicles per thousand of population, Tamil Nadu stays at the top (Table 5.11). Table 5.11 : Total Registered Motor Vehicles in Major States of India (March, 2013) (No. of vehicles in ‘000) Multiaxled/ Light Articulated Motor Vehicles/ Vehicle Trucks (Goods) and Lorries

Buses

Tractors

Cars

No. of Two Total CAGR Vehicles Others Wheelers Vehicles (2009-13) /1000 person

Andhra Pradesh

253

301

74

188

1078

9592

1200

12688

13.19

252

Bihar

90

13

26

250

185

2592

461

3617

16.23

36

Chhattisgarh

98

58

13

129

176

2769

195

3437

12.90

138

Gujarat

319

499

71

526

1602

11500

1255

15772

9.58

260

Haryana

308

138

43

545

1135

4147

285

6600

10.75

251

Jharkhand

210

203

14

54

240

2042

655

3417

12.36

106

Karnataka

248

259

70

386

1421

8575

1105

12064

13.77

199

Kerala

79

364

404

12

1331

4465

1202

7858

12.81

224

Madhya Pradesh

131

112

41

578

493

6878

528

8760

10.13

118

Maharashtra

402

740

110

462

2593

15457

1724

21488

10.54

186

Odisha

135

133

23

92

214

3312

307

4216

12.86

102

Punjab

126

76

30

518

617

4730

167

6263

7.15

221

Rajasthan

402

76

89

769

660

7466

611

10072

11.69

144

Tamil Nadu

493

404

156

205

1669

15337

968

19232

10.67

282

186

214

41

1088

1205

13724

590

17048

12.41

82

194

243

52

102

878

4258

385

6111

18.94

67

4121

4277

1391

6111

17647

126029

12996

172572

12.56

149

Uttar Pradesh West Bengal All India

Source: Road Transport Year Book (2012-13), Government of India

170

The registration of vehicles has been increased to 614 thousand in 2014-15 from 387 thousand in 2010-11 (Table 5.12). This implied an annual growth rate of 12.2 percent during the period. During the first six months of 2015-16 (April-September), around 2.87 lakh new vehicles have been registered. The number of vehicles increased by more than 1.5 times during the last five years. During the same period, the growth rate was in double digit for Auto Rickshaw (18.6 percent), Truck (13.5 percent), Tractor (13.4 percent) and Two Wheeler (12.9 percent). The district-wise information on registration of vehicles is presented in Table A 5.3 (Appendix). From the table, one can see that Patna and Muzaffarpur accounted for 28 percent of new vehicles in 2014-15. This information on registration of new vehicles can also be used as an indicator of relative economic prosperity of the different districts. Table 5.12 : Number of Registered Vehicles (No. in ‘000) Year

Two Tractor Trailer Others Total Wheeler

Truck

Bus

Car

Taxi

Jeep

Auto

2010-11

7

1

19

5

10

17

293

21

11

2

387

2011-12

10

1

23

9

9

21

331

23

11

1

440

2012-13

10

2

24

14

10

30

362

30

11

2

497

2013-14

11

2

23

12

9

35

420

31

8

2

554

2014-15

13

2

28

7

9

31

477

34

12

2

614

2015-16, Sept. 2015

6

1

11

3

4

12

228

14

7

1

287

13.5

4.9

7.9

8.0

-0.9

18.6

12.9

13.4

-1.0

3.4

12.2

CAGR

Source : Department of Transport, GOB

The collection of tax on vehicle constituted around 5 percent of the state’s own revenue. During the 2010-11 to 2014-15, there has been a phenomenal increase (more than two and a half times) in the revenue collected by the Department of Transport (Table 5.13). These tax collections are high in spite of the 100 percent tax exemptions allowed by the state government for women holding commercial licenses. These exemptions are allowed for three wheelers, motor cab and maxi cab. Further, disabled persons are also entitled to 100 percent tax exemptions. In recent years, the state government has undertaken a number of initiatives strides towards smooth transportation in the state. Some of these initiatives are listed below. Table 5.13 : Revenue Collection of Department of Transport 2010-11

2011-12

2012-13

2013-14

2014-15

Collection (Rs. crore)

444.1

557.5

669.3

835.3

966.5

Annual Growth (Percentage)

19.1

25.5

20.1

24.8

15.7

Source : Department of Transport, GOB

171

Construction of Integrated Check Posts: For augmentation of the revenue collection and prevention of illegal plying of vehicles, the Integrated Check Posts have been established on entry points of the state — Dobhi (Gaya), Rajauli (Nawada), Karmnasha (Kaimur), Jalalpur (Gopalganj), Buxar and Dalkola (Purnea). All these check posts function under the Department of Commercial Taxes. Due to the establishment of these check posts, the revenue collection has increased substantially from Rs. 64 crore in 2010-11 to Rs. 126 crore in 2013-14. System of e-payment of Vehicles Taxes : E-payment has been introduced in 11 districts for tax payment of commercial vehicles to ensure convenience and transparency. For other services, internet banking is in progress with the assistance of NIC. Upgradation of Vahan and Sarathi Softwar : Vahan and Sarathi software has been upgraded in Vahan Web – 2 in 6 districts. The remaining districts will be provided with the facility very soon through BSNL and NICNET. Implementation of Right to Public Service (TRS) Act : At present, 18 services of the Department of Transport have been included under RTS Act. A total 12.5860 lakh applications were disposed out of 12.5865 lakh applications during the period of April 2014 to January 2015. Driver Training cum Research Institute: A modern driver training cum research institute is under construction at a cost of Rs. 20 crore in Aurangabad for providing training to the drivers belonging to the state. Bihar State Road Transport Corporation (BSRTC) The BSRTC, established in 1959, is a statutory commercial body for providing safe and adequate bus services to the people. In order to achieve its objectives and strengthen its financial status, the Corporation started the scheme of Public-Private Partnership (PPP) in 2009-10. Currently 450 buses are running under PPP mode and corporation has also started 12 luxury buses. The scheme of operating inter-state buses from Bihar to the neighbouring states of West Bengal, Jharkhand and Uttar Pradesh is expected to be operational soon. As a result of various endeavours made by the Corporation, the number of passengers carried by its buses has increased substantially, from 89.53 lakh in 2010-11 to 152.26 lakh in 2013-14. There was, however, a marginal declined in the number of passengers in 2014-15 (Table 5.14). Table 5.14 : Number of Passengers Carried by BSRTC Particular Amount of Fines collected (Rs. crore)

2010-11 2011-12 2012-13 2013-14 2014-15 64.06

94.17

114.97

125.69

114.11

No. of Passengers 89.53 137.67 146.61 152.26 110.64 carried (lakh) Source : Bihar State Road Transport Corporation, GOB

172

The BSRTC has initiated work to provide modern facilities in the 39 major bus stands in the state. For this, Bihar Urban Development Corporation has prepared an estimate of Rs. 160 crore and BSRTC has already approved the amount. In addition to this, 14 bus stands has been planned for renovation and beautification in view of tourism potential of the adjoining area. 5.4 Railways Heavy industries, major cities and large markets are linked by rail route network. The railways also provides a less costly mode of transport for both goods and passengers. The share of rail transport in Gross State Domestic Product (GSDP) of Bihar has declined from 2.1 percent (200506) to 1.2 percent (2014-15). The rail transportation network in major states of India is shown in Table 5.15. The share of broad gauge lines in Bihar is 84 percent, compared to 87 percent for whole of India. The Rail Route Density per 1000 sq. km is 38 kms in Bihar, compared to 20 kms in all-India. However, only 0.04 km rail route exist in Bihar per thousand population. This is less than 0.05 km for India and less than half of Gujarat (0.09 km). Table 5.15 : Rail Route Network in Indian Major States (March, 2012)

State

Route Rail Share of Rail Density Kilomet- Density Broad (Per 1000 rage (per 1000 Gauge Population) (numbers) sq. km)

Andhra Pradesh

State

Route Rail Rail Share of Kilomet- Density Density Broad rage (per 1000 (Per 1000 Gauge (numbers) sq. km) Population)

100

2459

31

0.08

Madhya Pradesh

80

4954

16

0.07

Bihar

84

3598

38

0.04

Maharashtra

90

5602

18

0.05

Chhattisgarh

93

1187

9

0.05

Odisha

100

2469

16

0.06

Gujarat

67

5257

27

0.09

Punjab

99

2155

43

0.08

Haryana

99

1553

35

0.06

Rajasthan

82

5822

17

0.08

Jharkhand

100

2040

26

0.06

Tamil Nadu

82

3943

30

0.06

Karnataka

100

3090

16

0.05

Uttar Pradesh

82

345

1

0

93

1050

27

0.03

West Bengal

94

4000

45

0.04

India

87

64600

20

0.05

Kerala

Source: Infrastructure Statistics -2014, Government of India

5.5 Airways As an infrastructure segment, airways plays vital role in facilitating the growth of business and economy. A robust civil aviation set-up is a key to seamless flow of investment, trade and tourism, with significant multiplier effects on the growth of the economy. The number of aircraft movement increased from 9900 in 2013-14 to 11,054 in 2014-15. Over these two years, the number of passengers increased from 10.5 lakh to 12.0 lakh and freight also increased from 4849 tonnes to 5198 tonnes. 173

Table 5.16 : Aircraft Movements, Number of Passengers and Freights at Patna Airport No of aircraft movements

Passengers (in lakh)

Freight (in tonnes)

2010-11

9547

8.39

3279

2011-12

10369

10.22

3425

2012-13

9972

10.03

2251

2013-14

9900

10.45

4849

2014-15

11054

11.97

5198

Year

2015-16, 9090 8.49 2216 Sept., 2015 Source: Airport Authority of India, Patna

5.6 Telecommunication The Indian telecom sector has registered a phenomenal growth during the recent past and has the second largest telephone network in the world, next only to China. The low cost of handsets and the innovative telecom network have lowered the barrier to entry of consumers to the network. The increase in tele-density has mainly been driven by the increase in mobile phones. The majority of investment over the decade has come from the private sector. Bihar also registered a tremendous growth in the telecom sector during the last decade. The number of telephone connections increased more than 15 times from 42.14 lakh in 2005-06 to 661.69 lakh in 2014-15. This expansion in the telecom sector is mainly driven by the private network, with the share of BSNL showing a decline. The private players covered almost 96 percent of telephone connections in Bihar. The private connection has been increased 44 times from 14.18 lakh connections in 2005-06 to 632.56 lakh subscribers in 2014-15. Table 5.17 : Telephone Connections in Bihar (In lakh) BSNL

Private Operators

Year

Total Landline

Mobile

Total

Landline

Mobile

Total

2005-06

17.38

9.28

27.96



14.18

14.18

42.14

2006-07

9.86

12.68

22.54



34.50

46.00

68.54

2007-08

9.73

16.30

26.03



68.03

68.03

94.06

2008-09

9.63

26.92

36.55

0.05

133.69

133.74

170.29

2009-10

9.61

43.44

53.05

0.01

251.25

251.35

304.40

2010-11

9.66

55.82

65.48

0.13

379.50

379.63

445.11

2011-12

3.80

41.47

45.27

0.01

411.89

411.99

457.26

2012-13

2.17

42.23

44.40

0.15

502.02

502.17

546.57

2013-14

2.08

21.37

23.45

0.18

578.85

579.03

602.48

2014-15

3.39

25.74

29.13

0.20

632.36

632.56

661.69

Source: TRAI Reports Note: For Mobile, only GSM figures have been used

174

Chart 5.1 : Telephone Connections in Bihar

Growth of Telephone Connections (in Lakh) 602.48 546.57 457.26 445.11

661.69

304.40 170.29

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2007-08

2008-09

68.54

94.06

2006-07

700 600 500 400 300 200 100 0

Tele-density Bihar has witnessed a substantial increase in its tele-density in the recent past, measured in terms of number of telephones per 100 population. It has increased from 1.15 to 51.17 per hundred population during 2001 to 2015. However, the rural tele-density of Bihar is still the lowest among all the major states of India. In case of urban areas, the situation is much better, only four states (Andhra Pradesh, Karnataka, Kerala and Odisha) enjoying a higher tele-density. Table 5.18 : Tele-density of Major Indian States 2001 All

2005 All

2010 All

Rural

2014 Urban

All

Rural

2015 Urban

All

Andhra Pradesh

4.10

9.48

57.23

45.53

167.61

79.52

49.04

174.94

84.15

Bihar

1.15

2.36

37.96

29.41

150.96

46.10

33.14

164.13

51.17

Gujarat

5.37

12.73

58.46

57.44

137.63

90.54

61.86

143.01

95.61

Haryana

4.25

10.83

59.70

59.77

121.39

81.44

59.62

124.23

82.66

Karnataka

4.70

12.19

67.81

46.24

167.2

92.45

49.02

174.88

97.52

Kerala

7.51

18.77

80.36

64.34

189.65

96.19

67.18

179.09

95.57

Madhya Pradesh

1.81

5.21

45.23

33.67

116.34

56.04

36.85

123.16

60.36

Maharashtra

6.60

10.01

50.30

56.37

129.66

91.30

61.07

128.37

93.41

Odisha

1.52

3.96

39.30

39.87

161.14

60.90

44.46

172.11

66.85

Punjab

6.95

21.94

75.44

71.67

154.73

107.22

71.96

145.38

103.78

Rajasthan

2.57

6.12

52.76

48.58

160.01

75.39

53.55

153.93

77.76

Tamil Nadu

5.91

11.37

74.31

74.02

138.16

111.14

82.75

141.81

117.52

Uttar Pradesh

1.66

4.06

38.54

35.55

131.53

57.27

40.70

127.71

60.51

West Bengal

2.67

3.00

34.81

44.37

132.96

69.72

50.19

140.40

76.05

All-India

3.53

8.95

52.74

43.96

145.78

75.23

48.37

149.70

79.38

State

Source : Telecom Regulatory Authority of India;

175

5.7 Postal Network The postal communication system had been the main method of communication in India for nearly a century and a half. India Post has the largest postal network in world, with 1.55 lakh post offices, out of which 89.6 percent are located in rural and remote areas. The rural India has a total of 1.39 lakh post offices, as against only 15,700 in urban areas. As on March 2014, a total of 9064 post offices were in existence in Bihar, out of which 8591 (95 percent) were in rural areas and 473 (5 percent) in the urban areas. In terms of share in the allIndia postal network, the 6.2 percent of rural post offices in Bihar is rather less, since Bihar accounts for 11.1 percent of country’s for rural population. Top five states (Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Maharashtra and Rajasthan) constituted 45 percent of the post offices. In terms of letter boxes, the top five states are Maharashtra, Andhra Pradesh, Tamil Nadu, Madhya Pradesh and West Bengal; they account for 41 percent of the letter boxes (Table 5.19). Table 5.19 : Postal Facilities in Bihar (As on March 31, 2014) (In number) Total Post Offices

Letter Box

State Rural Andhra Pradesh

Urban

Total

Rural

Urban

Total

14815 (10.6)

1335 (8.5)

16150 (10.4)

37376 (8.5)

9304 (9.8)

46680 (8.7)

Bihar

8591 (6.2)

473 (3.0)

9064 (5.9)

22705 (5.2)

2891 (3.0)

25596 (4.8)

Chhattisgarh

2878 (2.1)

266 (1.7)

3144 (2.0)

12338 (2.8)

2715 (2.9)

15053 (2.8)

Gujarat

8193 (5.9)

788 (5.0)

8981 (5.8)

20522 (4.7)

4518 (4.8)

25040 (4.7)

Haryana

2329 (1.7)

344 (2.2)

2673 (1.7)

6730 (1.5)

1706 (1.8)

8436 (1.6)

Jharkhand

2829 (2.0)

270 (1.7)

3099

11901 (2.7)

1274 (1.3)

13175 (2.5)

Karnataka

8607 (6.2)

1072 (6.8)

9679 (6.2)

16624 (3.8) 12434 (13.1)

29058 (5.4)

Kerala

4209 (3.0)

858 (5.5)

5067 (3.3)

12342 (2.8)

3602 (3.8)

15944 (3.0)

Madhya Pradesh

7476 (5.4)

842 (5.4)

8318 (5.4)

34077 (7.8)

6092 (6.4)

40169 (7.5)

11559 (8.3)

1297 (8.3)

12856 (8.3)

40824 (9.3)

8883 (9.4)

49707 (9.3)

Odisha

7570 (5.4)

596 (3.8)

8166 (5.3)

18113 (4.1)

2566 (2.7)

20679 (3.9)

Punjab

3408 (2.4)

445 (2.8)

3853 (2.5)

11984 (2.7)

2735 (2.9)

14719 (2.8)

Rajasthan

9668 (6.9)

662 (4.2)

10330 (6.7)

24102 (5.5)

4174 (4.4)

28276 (5.3)

Tamil Nadu

10265 (7.4) 1801 (11.5)

12066 (7.8)

31841 (7.3) 10337 (10.9)

42178 (7.9)

Uttar Pradesh

15747 (11.3) 1933 (12.3)

17680 (11.4)

9685 (2.2)

1844 (1.9)

11529 (2.2)

West Bengal

7955

9066 (5.9)

34760 (7.9)

5920 (6.2)

40680 (7.6)

Maharashtra

All States

(5.7) 1111 (7.1)

(2)

139182 (100) 15700 (100) 154882 (100) 438961 (100) 94802 (100) 533763 (100) Source: Annual Report 2014-15, Department of Posts, India Note: Figure in parenthesis represents share from All- States

176

Competing with the mobile and internet in the modern era, the communication through postal network is now facing a massive challenge. The volume of mail traffic handled during 2013-14 and 2014-15 in Bihar is indicated in Table 5.20. With an increasing use of internet and mobile services, the number of postal articles has increased only marginally in 2014-15 over the previous year. However, the speed post articles and foreign postal unregistered articles have registered a high growth of around 9 percent. It is worth mentioning that 26 thousand letters under speed post are being booked every day from the state, of which Patna alone booked 13 thousands. The revenue earned from speed post letters was Rs. 28.1 crore in Bihar Circle. As on November 2015, Core Banking System (CBS) has been rolled out in 31 head post offices and 99 sub-post offices in Bihar. Table 5.20 : Postal Traffic in Bihar

Sl. No.

Articles

1

Registered (000)

2

Unregistered (crore)

3

Speed Post (000)

4

International Speed Post (000)

2013-14

Percentage 2014-15 Change

2015-16 (up to Sept., 2015)

4254.6

4343.9

2.1

2171.9

6.3

6.3

0.5

4.0

17365.4

18976.5

9.3

9707.9

1.1

1.1

2.4

0.5

Foreign Postal Unregistered (000)

3514.2

3827.4

8.9

1665.9

(i) To Foreign Counters (000)

1772.2

1874.2

5.8

1143.0

(ii) From Foreign Counters (000)

1832.6

1836.7

0.2

1002.9

5

Source : Chief Postmaster General, Bihar Circle

The Department of Posts provides postal services to the public through a large nationwide network of post offices. Besides providing purely postal services, post offices also provide financial services like saving bank, payment of pension, sale of cash certificates etc. Competing with modern banking system, India Post has also reformed its financial services through the required IT infrastructure. It has implemented core banking in all departmental post offices. Banking solutions through mobile application and hand-held devices have also been provided to the rural post offices. The post office are also providing facilities of ATM banking, internet banking and mobile banking to the consumers. The outstanding balance in post offices across India under different deposits, investment and schemes in post office was around Rs. 5.47 lakh crore at the end of March 2014 (Table 5.21). The share of Bihar was — Deposits (5.5 percent), Investment (3.6 percent), Monthly Income Scheme (MIS) (3.5 percent) and MGNREGA (43.0 percent). 177

Table 5.21 : Outstanding Balances and Number of Accounts in Post Offices (As on March 2015) Outstanding Balance (Rs. in crore) State

No. of Accounts (lakh) Sukanya InvestMIS Samridhi MGNREGA Total ment # Account

Deposits*

Investment #

Andhra Pradesh

9418

1523

11575

1297

23813

193

1

12

0.06

194

446

Bihar

9849

1846

7142

48986

67823

158

1

11

0.00

67

236

Chhattisgarh

3035

587

1904

9098

14624

35

0

1

0.00

54

90

Gujarat

11012

6150

18277

4370

39809

122

3

22

0.51

24

171

Haryana

6301

1859

3708

108

11976

58

1

5

1.30

1

67

Jharkhand

2047

48

5164

4939

12199

52

0

4

0.00

37

94

Karnataka

8428

2316

6899

181

17824

159

1

7

0.00

18

173

Kerala

7741

489

2693

1296

12219

116

0

5

0.00

3

124

Madhya Pradesh

7917

1022

4319

3825

17083

210

1

7

11.08

20

247

13429

7754

29465

3984

54632

300

5

22

0.53

34

360

Odisha

4436

309

3310

2041

10097

100

0

5

0.23

19

123

Punjab

10400

4458

6956

173

21987

46

2

8

0.32

2

59

9053

3313

6311

7440

26117

146

2

9

1.61

67

195

Tamil Nadu

11424

3196

11017

0

25638

228

2

9

0.18

0

238

Uttar Pradesh

22592

3616

17334

198

43740

290

2

20

3.69

4

320

West Bengal

19651

2642

48252

10924

81469

173

2

58

0.00

66

298

180313 50757 202084

114034

547188

2594

27

220

20.01

642

3491

Maharashtra

Rajasthan

All States

MIS

MGNREGA

Total

Deposits*

Source: Annual Report 2014-15, Department of Posts, India; Note: *-Deposits includes saving accounts, recurring deposits, term deposits and Senior citizen’s deposits and #-Investment includes Public Provident Fund and National Saving Schemes;

Under Digital India Programme, the Postal Department is digitizing all its 1.55 lakh post offices, including 1.29 lakh Gramin Dak Sewak Post Offices. The digitized post office may work as multi-service centre for dissemination of information on government policies, disbursement of social security benefits, and financial inclusion of the rural mass. 5.8 Irrigation Irrigation provides the basic infrastructure for the agricultural economy. It is an important input for enhancing agricultural productivity. Bihar’s agricultural economy depends mostly on monsoon rain which is quite uncertain. Bihar is endowed with abundant water resources and also receives a high rainfall of 1009 mms per annum. However, neither the rainfall nor the distribution of the water resources is uniform across the state, causing uneven exploitation of irrigation potential in the state. Therefore, Bihar needs artificial watering in the fields. 178

The proportion of irrigated area and the cropping intensity are much higher in several states of the country, compared to Bihar. The inadequate availability and inefficient utilization of water resources in Bihar can be ascribed mainly to the continued neglect of the operation and maintenance (O&M) of canals and water bodies in the past. The other important reason is the lack of participation of the beneficiary farmers in the management of irrigation resources. In recent years, Bihar has witnessed some noteworthy examples of participatory management of irrigation; however, their replication throughout the state has been rather slow, mainly because the water users, associations have not been transferred the responsibility of managing the water resources. Irrigation Potential The ultimate irrigation potential in the state is estimated to be around 117.54 lakh hectares, including major, medium and minor irrigation schemes. This irrigation potential includes both surface and ground water sources. While major and medium irrigation schemes have an ultimate potential of 53.53 lakh hectares, the minor irrigation has a potential of 64.01 lakh hectares. If ultimate potential is exploited fully, it will be far more than the total demand of irrigation water in the state. Till date, the created potential of 67.46 lakh hectares is 57.4 percent of the ultimate potential of 117.54 lakh hectares. The utilised potential of 57.63 lakh hectares is 49.0 percent of ultimate potential. Table 5.22 : Ultimate Created and Utilised Irrigation Potential in Bihar (Area in lakh ha.) Type of Irrigation Potential

Ultimate Potential

(a) Major and Medium Irrigation

53.53

Created Potential (2007-15) 29.25

(b) Minor Irrigation

Utilised Potential 19.42

64.01

38.21

38.21

(i) Surface Irrigation

15.44

7.20

7.20

(ii) Ground Water

48.57

31.01

31.01

Total 117.54 67.46 57.63 Source: Department of Minor Water Resources and Department of Water Resources, GOB

As may be observed, out of the total created potential of 29.25 lakh hectares through the major and medium sources, the utilized potential is only 19.42 lakh hectares; thus, an irrigation potential of 9.83 lakh hectares is lost, which needs to be restored. In minor irrigation sector, though the entire created potential is utilized, yet a substantial proportion of ultimate potential is yet to be created. Under Agriculture Road Map II, the state government plans to create an additional irrigation potential of 59.51 lakh hectares under minor irrigation during 2017-22. The distribution of this additional irrigation potential will be — surface irrigation (13.47 lakh hectares) and ground water (46.04 lakh hectares). It is seen from Table 5.23 that during 2012-13 to 2014-15, a total of 41.6 thousand hectares of irrigation potential in major and medium irrigation sector has been created as against the total ultimate potential of 53.53 lakh hectares. 179

Table 5.23 : Creation of Irrigation Potential under Major and Medium Irrigation

Sl. No.

Name of Scheme

Created Irrigation Potential (in ‘000 ha.)

2012-13 1

Western Kosi Canal Scheme

7.0

2

Jamania Pump Canal Scheme

8.7

3

Sammat Bigha Morhar Scheme

3.8

4

Kachnama Weir Scheme

0.3

5

Mor Weir Scheme

0.7

6

Solhanda Weir Scheme

0.2

Total

20.7 2013-14

1

North Koel Reservoir Scheme

2.0

2

Jamania Pump Canal Scheme

0.75

3

Kachnama Weir Scheme

2.8

4

Mor Weir Scheme

0.7

5

Solhanda Weir Scheme

0.3

6

Sugarwey Weir Scheme

1.4

Total

7.9

2014-15 1

Jamania Pump Canal Scheme

0.1

2

Kachnama Weir Scheme

0.1

3

Mor Weir Scheme

1.0

4

Solhanda Weir Scheme

0.3

5

Durgawati Reservoir Scheme

1.6

6

Construction of Barrage on Dardha river near village Lavaich Rampur

10.0

Total

13.0

Grand Total

41.6

Source : Department of Water Resources, GOB

Along with the creation of new irrigation potential, it is necessary to ensure that the already created irrigation potential is fully utilised. Due to heavy sedimentation and breach in the irrigation canal system, the created irrigation potential is sometimes not utilised fully. Thus, the state government is making efforts to rehabilitate the irrigation potential that was already created but lost. The extent of re-creation of lost irrigation potential during the last four years has been — 55.00 thousand hectares (2011-12), 702.66 thousand hectares (2012-13), 444.34 thousand hectares (2013-14) and 129.86 lakh hectares (2014-15). 180

Major and Medium Irrigation An additional irrigation potential of 3.06 lakh hectare has been created during the year 2004-05 to 2014-15 through major and medium irrigation schemes. Thus, the total created irrigation potential of 26.19 lakh hectare has increased to 29.25 lakh hectares in 2014-15. According to the Agriculture Road Map II, the irrigation intensity in Bihar will increase to 158 percent by 2017 and 209 percent by 2022. This will ensure that irrigation could be povided in 99.00 lakh hectares by 2017 and 130.90 lakh hectares by 2022. The utilisation efficiency of major and medium irrigation schemes is indicated by the ratio actual irrigation and the created irrigation potential. During the last decade, this utilisation efficiency has varied between 41.8 percent in 2009-10 to 72.6 percent in 2013-14 (Table 5.24). During 2014-15, it was at a modest level of 66.4 percent. On an average, the utilisation efficiency is 57.5 percent. Table 5.24 : Water Utilisation Efficiency of Major and Medium Irrigation Schemes (Figures in '000 ha) Year

Kharif Rabi Hot Weather Created Total Efficiency Irrigation Irrigation (%) Target Irrigation Target Irrigation Target Irrigation Potential

2005-06

2637

1643

1253

513

400

13

12

1665

63.1

2006-07

2833

1389

1221

478

453

12

11

1685

59.5

2007-08

2863

1441

1245

478

453

12

11

1709

59.7

2008-09

2873

1480

1275

443

389

13

2

1666

58.0

2009-10

2880

1451

885

385

318

0

0

1202

41.8

2010-11

2886

1365

907

409

319

0

0

1226

42.5

2011-12

2893

1305

1169

395

337

0

0

1506

52.1

2012-13

2913

1491

1394

439

366

0

0

1760

60.4

2013-14

2921

1865

1614

567

491

15

15

2120

72.6

2014-15

2925

1865 1628 373 314 0 0 Source : Department of Water Resources, GOB

1942

66.4

Chart 5.2 : Pattern of Water Utilisation Efficiency of Major and Medium Irrigation Total Irrigation

2500

Efficiency (%)

80 70

2000 1942.01

2119.91

1759.69

1505.96

1226.06

1202.45

1666.04

1709.15

500

1684.73

1000

1665.08

1500

60 50 40 30 20 10

0

0

181

Participatory Irrigation Management (PIM) In accordance with the National Water Policy, the management of all the completed canal systems is to be transferred to the beneficiary societies in a phased manner, under the Participatory Irrigation Management Programme. Out of 79 registered societies in the state which have already given their consent, the management of irrigation system has been transferred to 53 societies and the process of transfer is on-going for 26 remaining societies. The status of other farmers’ societies is presented in Table 5.25. Table 5.25 : Status of Farmers Societies Status

Number

Management of irrigation System Transferred

53

Societies ready for transfer of system

26

Applied for Registration

26

Registered Societies in the process of giving consent

07

Under the process of motivation

510

Total

622 Source : Department of Water Resources, GOB

Minor Irrigation The ultimate potential of minor irrigation is around 64.01 lakh hectares, of which 15.44 lakh hectares are through surface irrigation and 48.57 lakh hectares through ground water. Out of a total of 64.01 lakh hectares of irrigation potential, 38.21 lakh hectares (60 percent) has already been created, of which 7.20 lakh hectares is under surface irrigation and 31.01 lakh hectares under ground water irrigation (Table 5.26). It may also noted that, of the total ground water irrigation, a substantial proportion (76 percent) comes from the private tubewells. According to the Fourth Minor Irrigation Census (2006-07), there were 56112 dug wells, 5,71,871 shallow tubewells, 23,259 deep tubewells, 7396 surface flow schemes and 4731 surface lift schemes in Bihar. Table 5.26 : Status of Minor Water Resources in Bihar

Ultimate Potential

Irrigation Sources 1. Surface Irrigation

15.44

(Potential in lakh ha.) Created Utilized Potential Potential (2007-15) (2007-15) 7.20

7.20

(i) Ahar / Pynes/ Irrigation Tanks

2.65

2.65

(ii) Lift Irrigation

2.40

2.40

(iii) Surface minor Irrigation Bear/ Slice Gates

2.16

2.16

31.01

31.01

(i) State Tubewells

7.42

7.42

(ii) Private Tubewells

23.59

23.59

Total 64.01 38.21 Source : Department of Minor Water Resources, GOB

38.21

2. Ground Water Irrigation

48.57

182

The additional area under minor irrigation was 2.82 lakh hectares (2012-13), 1.42 lakh hectares (2013-14) and 0.38 lakh hectares (2014-15) (Table 5.27). Due to heavy sedimentation and breach in the irrigation canal system, the created irrigation potential is sometimes not exploited fully. Table 5.27 : Irrigated Area through Minor Irrigation Sources (Area in ha.) Source

2012-13

2013-14

2014-15

Surface Canal

36315

26086

9310

Tanks (including Ahars and Pynes)

59407

41591

10930

Tubewells (Private and State)

161962

64251

16610

Other Sources (Lift Irrigation) and Barge Lift Irrigation

24220

9627

2564

Total

281904

141555

38418

Source : Department of Minor Water Resources, GOB

The state government plans to create an additional irrigation potential of 25.29 lakh hectares and rehabilitate the lost irrigation potential of 5.07 lakh hectares by 2017. It is proposed to create 10.25 lakh hectares of additional potential through surface irrigation, 7.23 lakh hectares through Ahars and Pynes, 2.02 lakh hectares through construction of sluice gates and bears, and 1.0 lakh hectares through lift irrigation. As regards rehabilitation of lost irrigation potential, 2.83 lakh hectares of surface irrigation potential has already been created and the remaining 2.24 lakh hectares of lost potential will be rehabilitated by 2017. Thus, by 2017, a total of 30.36 lakh hectares of irrigation potential will be available under minor irrigation schemes. Ahars and Pynes Ahars and Pynes system is an indigenous irrigation technology. On the basis of physical features, Bihar can be divided into two regions — the north Bihar plains and the south Bihar plains. AharPyne system of indigenous irrigation is historically the most important source of irrigation in south Bihar and even today they provide a good example of participatory irrigation management. There are three factors which are responsible for the wide prevalence of this mode of irrigation in this region. The region is charactised by (i) scanty rainfall, (ii) a sharp slope which allows water to quickly run away, and (iii) the nature of soil, which is either stiff clay or loose sand, both equally unreceptive of moisture. Most of the places in the south Bihar region receive an average annual rainfall of about 1009 mms which may be just sufficient for other crops, but not adequate for cultivating paddy. Under Accelerated Irrigation Benefit Programme (AIBP) in drought prone districts, 60 projects in Jamui has been completed which created 23,466 hectares of irrigation potential. Another 161 projects (147 projects in Jamui and 14 in Nawada) were also undertaken, of which 101 projects has been completed creating 5515 hectares of irrigation potential. Besides, 21 projects in various districts have been completed under the Pilot Project of Repair, Renovation and Restoration (RRR) of water bodies, which created an additional irrigation potential of 17,163 hectares. Under the State Plan and the RIDF, there are 498 schemes, of which 183

214 have been completed by 2015 creating an irrigation potential of 1,16,786 hectares. Out of a total of 459 Lift Irrigation Schemes, 315 have already been completed, leading to restoration of irrigation potential of 36,880 hectares. During 2014-15, a total of 510 Ahars/Pynes/Ponds in the state were made functional, spread over 18 districts of south Bihar (Table 5.28). Table 5.28 : District-wise Number of Ahars, Pynes and Ponds made functional under Different Programmes

Sl. No.

District

Number of System Made Functional RRR of State RIDF AIBP Water Plan Bodies

1

Patna

9

21

2

Nalanda

40

26

66

3

Bhojpur

3

7

10

4

Buxar

3

6

9

5

Kaimur

5

4

1

10

6

Gaya

27

36

1

64

7

Jehanabad

8

20

1

29

8

Arwal

9

Nawada

20

10

Aurangabad

5

3

8

11

East Champaran

1

7

8

12

Sitamarhi

3

13

Madhubani

1

4

5

14

Munger

3

5

8

15

Sheikpura

7

14

21

16

Lakhisarai

9

8

17

17

Jamui

18

Bhagalpur Total

12

Total

5

42

5 14

34

3

10 7

7

151

183

147

157 14

161

15

510

Source : Department of Minor Water Resources, GOB

Interlinking of Rivers The scheme of interlinking of rivers is being envisaged mainly for protecting the agricultural land from flood and drought. This will first require identifying the rivers to be interlinked and then preparing Detailed Project Reports (DPR) for execution. These schemes will be formulated in such a way that they do not cross state or international boundaries. In future, however, these could be extended to or coordinated with the inter-state or international schemes as per the requirements of the state. The DPR of Budhi Gandak-Noon-Baya-Ganga link scheme has been prepared by the National Water Development Authority (NWDA) and sent to the Central Water Commission (CWC) for approval. On completion of the scheme, 1.26 lakh hectares of irrigation potential will be created in the districts of Samastipur, Begusarai and Khagaria. This scheme will 184

also protect these districts from floods caused by river Budhi Gandak. Under inter linking of rivers scheme, the DPR for interlinking of Sakri river and Nata river has been approved by the CWC. After the execution of this scheme, irrigation facility will be ensured to 68,000 hectares in the districts of Nawada, Nalanda and Shekhpura. The DPR of Kosi-Mechi Interlinking Scheme has also been prepared by National Water Development Authority (NWDA) and has been submitted to CWC for its approval. After the completion of this scheme, 2,11,400 hectares of additional irrigation potential will be created in the districts of Araria, Saharsa, Supaul, Kishanganj and Purnea. The state government has been making sincere efforts in water management to protect the different regions of the state from the natural disasters like flood and droughts. Some of these steps are enumerated below: (i)

The work for strengthening of Eastern and Western Kosi embankment in different stretches are continuing. Under Bihar Kosi Flood Recovery Project (Kosi-I), Sanjay dhar, Haiya dhar and Bochaha dhar have been strengthened. Further, under Bihar Kosi Basin Development Project (Kosi II), a road length of 8 kms. has been constructed.

(ii)

Construction of 57 kms. length of new embankments under Bagmati Flood Management Phase II has been completed.

(iii) In order to enhance the irrigation potential, 8 Irrigation Schemes have been completed — Bachharaja Weir Scheme-Madhubani (2530 hectares), Kachnama Weir Scheme (Jehanabad) (3240 hectares), Restoration of Navagadh Weir Scheme (Jehanabad) (576 hectares), Sammat Bigha Weir Scheme (Jehanabad) (3800 hectares), Sesamba Weir Scheme (Jehanabad) (1700 hectares), Esarvey Check Dam (Gaya) (850 hectares), Bhetaura Dam (Gaya) (1880 hectares) and Restoration of Kadahar Weir Scheme (Gaya) (840 hectares). (iv) Two stretches of 105 kms. and 50 kms. of old embankment under Bagmati Management Scheme (Phase I and Phase II) have been raised and strengthened. (v)

The river closure work of Durgawati Reservoir Scheme in Kaimur district has been completed and irrigation facility is being provided to farmers since 2014-15.

(vi) Against a target of 374, raising and strengthening of 332 small embankments in different districts have been completed. Presently, the work for raising and strengthening of 17 small embankments are in progress. Programme of Command Area Development There are 7 on-going and 2 new schemes in the state under the Command Area Development and Water Management (CADWM) Programme. Under this programme, field channels have been constructed in 2,26,185 hectares and in another 1,01,096 hectares, field and intermediate link drains have been constructed, during 2005-06 to 2014-15. Under major and medium irrigation schemes, CADWM programme will be executed through four Command Area Development 185

Agencies (CADA) in the state. This programme is funded through Accelerated Irrigation Benefit Programme (AIBP), a centrally sponsored scheme. Table 5.29 : Command Area Development Programme under Agriculture Road Map II During 2012-17 Name of Scheme Command Development Management Programme

Area and Water (CADWM)

During 2017-22

Area Amount Area Amount (lakh ha.) (Rs. crore) (lakh ha.) (Rs. crore)

4.44

1672.00

4.96

1867.00

Source: Agriculture Road Map, GOB

Other Irrigation Programmes (i)

Under NABARD (Phase XI), 31,200 hectares irrigation potential has been created through 775 tubewells. A total of 10,242 state tubewells which were constructed under the NABARD (Phase-III), NABARD (Phase-VIII) and NABARD (Phase-XI), are to be soon energized. Besides, 2871 state tubewells have been energized by the end of 2014-15. Again, Rs. 85.39 crore was sanctioned for renovation of 2397 state tubewells which were energized during NABARD (Phase-III) and NABARD (Phase-XI).

(ii)

A Water Regulatory Authority has been established under Bihar State Water Policy, 2015 by Department of Water Resources. A proposal to keep the Ground Water Authority as a subsidiary of the Water Regulatory Authority has been submitted to Department of Water Resources.

(iii) Under the Integrated Action Plan, a total of 184 projects for Irrigation Channels, Ahars, Tanks, Water Harvesting Structure, etc. have been completed at a total expenditure of Rs. 20.24 crore. (iv) To encourage the installation of private tubewells by farmers, the state government has two ambitious schemes — Million Shallow Tube Wells Programme (MSTP) and Bihar Ground Water Irrigation Scheme (BGWIS). An irrigation potential of 2.78 lakh hectare has been created through installation of 99,570 private tubewells under BIGWIS during 2009-10 to 2012-13. (v)

A new scheme named ‘Bihar Shatabdi Niji Nalkup Yojana’ has been launched by the state government, which is a subsidy-based scheme. Under this scheme, two types of tubewells will be installed — shallow tubewells (70m depth) and medium depth tubewell (70m to 100m depth). For the installation of shallow tubewells, the maximum subsidy is Rs. 15,000 and, for the medium tubewells, it is Rs. 35,000. There is also a programme of giving a maximum subsidy of Rs. 10,000 for pump sets or half the market rate price, whichever is less.

186

Table 5.30 : Proposal for Implementation of Schemes during the 2017–2022

Schemes A

Number

Irrigation Potential (in lakh ha.)

Required Money (Rs. in crore)

Ground Water Utilisation Scheme

(i)

6” diameter Community/Private deep tube-well (electricity operated in South Bihar and in sugarcane producing areas)

12700

5.08

1500.00

(ii)

Shallow Private Tube-well of 4” diameters under Bihar ground water irrigation Schemes under 90% government subsidy.

800000

16.00

5040.00

812700

21.080

6540.00

0.385

200.00

Total B (i) C

Rehabilitation of Ground Water irrigation Lift irrigation renovation Scheme

385

Schemes for use of Ground Water for irrigation

(i)

Tubewell Renovation

(ii)

Non working Private Tube-well under Bihar ground water irrigation Schemes under 90% government subsidy. Total

D

1250

1.00

400.00

250000

5.00

1200.00

251250

6.00

1600.00

Ground Water Management

(i)

Water Management Cum irrigation check dam/ Surface Water Storage Schemes

3350

1.68

241.20

(ii)

Investigation wells for ground wells management, irrigation well, acufier test etc.

0

0

55.53

3350

1.68

296.73

Total E

Enhancement of 10% Capacity development technology Scheme detailed project , controlling quality etc. Source: Department of Minor Water Resources, GOB

187

863.27

APPENDIX Table A 5.1 : District-wise Road Network in Bihar (Length in km) Districts

2013

2014

2015 (up to September)

Categories Patna Nalanda Bhojpur Buxar Rohtas Kaimur

NH 394.90 177.07 85.00 55.00 145.24 52.24

SH 162.16 172.00 152.80 78.50 234.80 99.40

MDR 458.41 318.26 258.28 126.39 398.41 232.60

NH 394.90 177.07 85.00 55.00 145.24 52.24

SH 199.31 172.00 152.80 78.50 234.80 99.40

MDR 495.59 389.95 250.00 126.60 415.11 239.29

NH 394.90 177.07 85.00 55.00 145.24 99.04

SH 204.25 186.11 177.25 77.95 231.00 91.09

MDR 565.21 444.90 281.64 126.60 365.71 263.97

Gaya Arwal/Jehanabad Nawada Aurangabad

119.50 134.23 84.30 137.23

218.60 104.30 170.33 150.50

351.33 203.21 136.60 258.73

119.50 134.23 84.30 137.23

218.60 104.30 170.33 150.50

600.92 279.99 158.10 245.13

119.50 134.23 84.30 137.23

246.80 66.10 185.25 156.99

628.46 358.25 157.41 256.31

Saran Siwan Gopalganj

180.50 54.00 96.43

201.80 159.40 81.64

262.08 328.66 312.21

180.50 54.00 96.43

201.80 159.40 52.64

219.24 250.01 321.69

180.50 54.00 96.43

196.45 157.35 55.60

200.34 292.14 352.64

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

112.00 94.00 258.23 136.00 22.00 127.61

101.60 144.05 70.33 49.30 13.64 151.20

317.01 309.84 394.24 222.36 33.00 177.30

112.00 94.00 259.40 167.82 22.00 127.61

101.60 144.05 70.33 49.30 13.64 151.20

298.56 330.45 431.02 286.51 33.00 177.35

112.00 94.00 259.40 167.82 22.00 127.61

115.00 131.20 76.20 94.26 11.75 113.20

293.88 408.53 455.50 213.89 101.43 179.41

Darbhanga Madhubani Samastipur

49.80 207.75 65.51

198.06 131.95 221.90

402.75 314.63 321.45

49.80 207.75 65.51

198.06 131.95 221.90

372.70 371.20 384.65

49.80 235.91 65.51

224.02 99.39 194.32

412.46 380.81 411.37

Begusarai Munger Shekhpura Lakhisarai Jamui Khagaria

95.89 96.91 12.00 45.21 88.36 92.30

42.00 11.06 52.90 58.84 133.09 15.00

201.63 45.20 108.51 58.29 183.78 129.05

95.89 72.97 12.00 45.21 112.35 92.30

42.00 35.00 52.90 58.84 109.15 15.00

246.58 53.00 126.83 87.45 198.21 212.07

95.89 72.97 45.73 50.71 197.22 92.30

42.50 34.00 22.305 49.40 62.79 18.00

245.59 46.00 137.26 91.00 207.90 242.59

Bhagalpur Banka

146.00 -

81.05 215.21

252.96 264.49

146.00 10.96

81.05 204.25

265.27 206.29

146.00 85.79

72.00 169.49

263.64 200.06

Saharsa Supaul Madhepura

78.70 204.60 109.00

134.75 150.38 99.48

357.52 469.79 73.98

92.80 215.50 109.00

120.65 139.49 99.48

332.33 546.59 87.46

92.80 215.50 109.00

96.55 133.28 100.04

279.04 498.15 103.45

Purnea Kishanganj Araria Katihar

120.20 68.00 153.50 101.50

161.48 49.06 94.65 115.98

269.05 233.50 252.29 363.62

115.50 67.87 153.50 157.61

148.98 49.95 93.65 99.63

256.90 286.17 240.99 304.36

115.50 67.87 153.50 157.61

141.28 48.60 69.07 102.51

227.48 289.50 376.08 275.30

Total

4200.71 4483.19 9401.40 4320.99 4426.43 10127.56 4594.88 4253.35 10633.87 Source: Department of Road Construction, GOB

188

Table A 5.2 : District-wise approved length and physical achievement of State Highways under RSVY (2014-15)

Patna

CPWD

Approved Length (km) 79.40

Nalanda

CPWD

39.50

38.80

Bhojpur

CPWD

47.00

47.40

Buxar

CPWD

78.84

78.84

Rohtas

CPWD

207.36

207.36

Kaimur

CPWD

52.29

51.70

Gaya

CPWD

68.22

68.22

Arwal/Jehanabad

CPWD

3.50

3.50

Nawada

CPWD

45.45

45.00

Aurangabad

CPWD

37.10

35.59

Saran

IRCON

24.00

20.35

Siwan

CPWD

54.60

54.60

Gopalganj

CPWD

24.90

24.90

W. Champaran

CPWD

35.85

35.25

E. Champaran

CPWD

102.51

103.45

Muzaffarpur

CPWD

NA

NA

Sitamarhi

CPWD

26.54

26.54

Sheohar

CPWD

12.00

12.00

Vaishali

IRCON

31.01

31.01

Darbhanga

IRCON

96.77

97.87

Madhubani

IRCON

105.86

105.86

Samastipur

IRCON

97.17

97.45

Begusarai

CPWD

41.30

41.30

Munger

CPWD

34.00

33.70

Sheikhpura

CPWD

38.54

38.50

Lakhisarai

CPWD

58.98

58.74

Jamui

CPWD

151.86

150.90

Khagaria

CPWD

NA

NA

Bhagalpur

CPWD

46.35

46.33

Banka

CPWD

167.06

165.20

Saharsa

CPWD

24.10

24.10

Supaul

CPWD

33.10

33.10

Madhepura

CPWD

27.77

27.77

Purnea

CPWD

91.40

91.00

Kishanganj

CPWD

79.59

78.00

Araria

CPWD

30.50

30.50

Katihar

CPWD

19.71

19.85

2114.13

2102.98

Name of the Districts

Implementing Agency

Total

Physical Achievement (km) 78.30

Source : Department of Road Construction, GOB

189

Table A 5.3 : Statistics of Registered Vehicles in Bihar During 2014-15 (in No.) Truck

Bus

Car

Taxi

Jeep

Three Wheeler

Two Wheeler

Tractor

Trailor

Other

3383 415 228 104 132 28

601 83 55 24 29 26

13643 221 154 104 245 96

776 184 171 44 31 27

1538 140 441 106 58 70

4171 615 994 374 711 217

74335 11881 9868 5180 2319 4508

2028 1136 1079 750 1308 798

806 334 876 745 664 330

18 87 71 9 36

101299 15009 13953 7502 5506 6136

Gaya Jehanabad Arwal Nawada Aurangabad

682 168 1 23 153

140 19 3 30 34

1059 31 71 91

792 21 19 87 107

698 33 25 135 392

1860 399 83 280 952

22703 2183 652 3345 10714

1224 496 318 1037 1167

683 354 125 472 407

3 61 4 116 213

29844 3765 1230 5596 14230

Saran Siwan Gopalganj

73 365 249

85 39 28

321 228 57

381 201 141

364 610 687

974 775 412

11287 23448 12533

842 1153 960

87 5 61

25

14414 26824 15153

272 511 1704 39 3 481

21 28 178 19 3 47

142 126 3468 36 1126

549 388 619 36 8 141

299 707 776 107 35 117

785 994 2283 1166 49 1201

13817 13039 57757 13117 1868 21164

923 1989 1344 993 129 1167

462 217 72 102 39 476

Darbhanga Madhubani Samastipur

750 47 249

24 3 17

911 100 77

669 116 75

465 55

2350 575 1107

17913 8662 19898

935 635 1265

265 140 580

Begusarai Munger Shekhpura Lakhisarai Jamui Khagaria

658 71 15 191 82 74

35 24 12 1 6 2

748 69 11 17 24

342 58 40 56 64 38

158 53 31 48 115 7

675 248 123 12 505 379

12892 4921 1870 2599 4367 6411

919 217 406 347 456 562

507 162 318 348 451 236

170

Bhagalpur Banka

106

37

1182

17

556

1455

10826

467

416

158

46

4

148

7

30

35

3118

243

139

3

Saharsa

164

22

218

93

88

338

3983

814

248

Supaul

35

13

43

19

55

146

5670

766

Madhepura

44

5

1298

45

84

634

14273

1153

491

36

18063

Purnea Kishanganj Araria Katihar

929 7 2 48

35 4 3 7

987 123 163 219

282 77 40 33

1 53

2649 137 441 154

7277 13055 5126 18754

1593 348 860 880

201 87 216 272

16 9

13953 13855 6913 20367

12532

1746

27557 6794 9137 31258 477333 Source: Department of Transport, GOB

33707

12394

1742

614200

District Name Patna Nalanda Bhojpur Buxar Rohtas Kaimur

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

Total

____________ 190

46

3 617 18 15

8

Total

17316 17999 68201 15615 2137 26537 24300 10293 23323 16934 5823 2834 3619 6046 7903 15220 3773 5968 6747

CHAPTER VI ENERGY SECTOR

Economic growth depends upon the availability of adequate, reliable and quality power at a competitive rate. Electricity now has become necessary for all the facets of life and has been recognized as a basic human need. It is a key to accelerate economic growth, generation of employment, elimination of poverty, and human development. Bihar’s economy is now growing at a fast rate; however, there is an apprehension about sustainability of this growth due to the shortage of power. To address this challenge, the state government has given the highest priority to the power sector during last couple of years, and there has been significant improvement in power availability. 6.1 Availability of Power The power problem in Bihar can be understood better in the context of its demand. As is apparent from Table 6.1, the peak deficit in power has been around 30 percent for several years till 2012-13. In 2013-14 and 2014-15, this deficit was reduced to around 20 percent. Due to increased availability of power from an average of 6-8 hours to 14-16 hours in rural areas and from 10-12 hours to 20-22 hours in urban areas, the per capita consumption of the state has risen from 145 kwh in 2012-13 to 203 kwh in 2014-15, implying a growth of about 40 percent in two years, which is the highest in the country. Table 6.1 : Power Scenario (2010-11 to 2014-15) Characteristic

2010-11

2011-12

2012-13

2013-14

2014-15

Peak Demand (MW)

2300

2500

2650

3150

3500

Peak Met (MW)

1664

1712

1802

2335

2831

Peak Deficit/ Surplus (MW) (-/+)

-636

-788

-848

-815

-669

Peak Deficit/ Surplus (%) (-/+)

-27.7

-31.5

-32.0

-25.9

-19.11

Energy Requirement (MU)

13298

14454

15321

18212

22226

Energy Availability (MU)

10978

12145

13267

15045

18731

Energy Deficit/ Surplus (MU) (-/+)

-2320

-2309

-2054

-3464

-3495

Energy Deficit/ Surplus (%) (-/+)

-17.4

-16.0

-13.4

-19.0

-15.7

Source : Department of Energy, GOB

6.2 Projection of Power Requirement With a view to provide electric connections to all rural and urban households and for providing power throughout the 24 hours by 2018-19, a vision document has been prepared by the state government, encompassing all the components of the power sector — Generation, Transmission 191

and Distribution. The existing electrification status of rural and urban household in the state is presented at Table 6.2. Table 6.2 : Status of Electrification of Rural and Urban Household (Figures in lakh)

Category of Households

2001

2011

CAGR

Projections for December, 2015

Total Households

139.83

189.41

3.08

213.85

Rural Households

126.60

169.27

2.95

190.12

Urban Households

13.23

20.14

4.29

23.82

Total Electrified Households

14.33

30.98

8.01

53.35

Rural Electrified Households

6.50

17.55

10.45

32.58

Urban Electrified Households

7.84

13.44

5.54

20.76

Total Un-electrified Households

125.49

158.42

2.36

160.51

Rural Un-electrified Households

120.11

151.72

2.36

157.54

Urban Un-electrified Households

5.39

6.70

2.21

3.06

Source : Department of Energy, GOB

There will be a quantum jump in power demand in the state in the coming years, mainly due to large scale release of service connection in rural areas towards full electrification, quantum increase in agriculture consumers, rise in demand of existing consumers (because of widespread use of electrical gazettes), and industrialization of the state. Table 6.3 presents the estimated annual energy requirement for the rural and urban households for the period 2015-16 to 2018-19. Table 6.3 : Annual Energy Requirement for Rural and Urban Households (Figures in MU) Category of Households

2015-16

2016-17

2017-18

2018-19

Existing Electrified Households

5692

6807

7542

8278

Unelectrified Households when Electrified

2333

5525

9158

13557

514

1246

2150

3252

Total Domestic Requirement

8539

13578

18850

25087

Consumers other than Domestic (Growing annually at 20 percent)

6467

7760

9312

11175

New Agricultural Connections

1128

2739

4888

7573

16134

24077

33050

43835

New Household when Electrified

Total

Source : Department of Energy, GOB

192

Table 6.4 shows the projected energy requirement at the state periphery, considering distribution losses and intra-state transmission loss trajectory. The expected power demand of Bihar by 2018-19 shall be of the order of 8774 MW, with a n annual energy requirement of 61,750 MU. Table 6.4 : Annual Energy and Peak Demand Requirement at State Periphery 2015-16

2016-17

2017-18

2018-19

Energy requirement as per demand projections (MU)

16134

24077

33050

43835

Distribution losses (Percentage)

38.71

34.26

30.18

26.23

3.92

3.87

3.82

3.77

27398

38100

49215

61750

Peak demand at 0.734 Load Factor (Including Agricultural load upto 50% only) (MU)

4112

5588

7088

8774

Peak demand at 0.734 Load Factor (MU)

4261

5925

7654

9604

Intrastate transmission losses (Percentage) Energy requirement at state periphery (MU)

Source : Department of Energy, GOB

The power capacity availability in the state was 3704.63 MW in March, 2015. In order to meet the increased demand, the state has already planned for increased capacity of 6521.30 MW from different sources in a phased manner by 2018-19. These sources are — own generating stations, renewable energy sources, central generating stations, and long/ medium term Power Purchase Agreements (PPA) through competitive bidding. The source-wise details of this increased capacity is presented in Table 6.5. Table 6.5 : Yearwise and Sourcewise Details of Capacity Expansion (Figures in MW) Sources

Cumulative Proposed Capacity

March 2015

2015-16

2016-17

2017-18

2018-19

State Sector State Thermal



470

720

720

720

State Small Hydro

55

55

88

88

208

CGS Thermal

2414.10

2843.17

3346.50

3561.20

3722.40

CGS Hydro

469.53

469.53

469.53

1344.53

1344.53

IPPs Projects (Case1)

460

460

460

460

960

JV / Partnership (Thermal)

220

534

584

1500

2873

NCE / RNES

86

139

248

398

398

Central Generating Stations Share

Total

3704.63 4970.70 5916.03 8071.73 Note : IPP = Independent Power Producer; JV = Joint Venture; NCE = Non-Conventional Energy; RNES = Renewable Energy Source

193

10225.93

As per the present Generation Plan, the additional capacity of 6521.30 MW is expected to be added by 2018-19 (either from new projects, or from those which are under construction, or from those old projects which are being renovated or modernised). Out of this addition, about 312 MW shall be from non-conventional energy sources and 6209.30 MW from conventional sources. As such, the total available capacity for Bihar by 2018–19 is expected to be 10,226 MW, of which 9828 MW will be conventional and the remaining 398 MW non-conventional. Table 6.6 : Estimated Availability of Power and Energy (2015-16 to 2018-19)

Year

Estimated Estimated Peak Energy Total Capacity Availability at Availability at (MW) State Periphery State Periphery (MW) (MU)

2015-16

4970.70

3494

27780

2016-17

5916.03

4510

36684

2017-18

8071.73

6093

47292

2018-19

10225.93

8093

63299

Source : Department of Energy, GOB

However, even with the availability of additional generation capacity, the state would still be facing a shortfall in terms of peak demand during 2015-16 (15.02 percent) to 2018-19 (7.76 percent). There will be a surplus in energy availability during 2015-16 (1.4 percent) and 2018-19 (2.5 percent), whereas during 2016-17 and 2017-18 the state will be facing a shortfall of about 4 percent in terms of energy availability (Table 6.7). Table 6.7 : Projected Surplus/ Deficit in Power and Energy (2015-16 to 2018-19) Power Supply Position

2015-16

2016-17

2017-18

2018-19

4112

5588

7088

8774

3494

4510

6093

8093

Peak demand Surplus(+) / Deficit(-) (MW)

(-) 618

(-) 1078

(-) 995

(-) 681

Peak demand Surplus/Deficit (Percentage)

(-) 15.02

(-) 19.29

(-) 14.04

(-) 7.76

27398

38100

49215

61750

27780

36684

47292

63299

Energy Surplus(+) / Deficit(-) (MU)

382

(-)1416

(-) 1923

1549

Energy Surplus (+)/ Deficit (-) (Percentage)

1.39

(-) 3.72

(-) 3.91

2.51

Estimated Peak Requirement with 50% agriculture load (**) only (MW) Estimated Peak Availability as per State Generation Plan (MW)

Estimated Energy Requirement at State Periphery (MU) Estimated Energy Availability at State Periphery as per State generation Plan (MU)

(**) –50% agriculture load will be supplied in rotation Source : Department of Energy, GOB

194

6.3 Institutional Structure of Power Sector In April, 1958, the Bihar State Electricity Board (BSEB) was originally constituted under Section 5 of the Electricity (Supply) Act, 1948 and was mandated for the management of generation, transmission, distribution and other electricity-related activities in Bihar. Under the new Bihar State Electricity Reforms Transfer Scheme 2012, the BSEB has been unbundled into five companies in November, 2012 — (i) Bihar State Power (Holding) Company Limited (BSPHCL), (ii) Bihar State Power Generation Company Limited (BSPGCL), (iii) Bihar State Power Transmission Company Limited (BSPTCL), (iv) South Bihar Power Distribution Company Limited (SBPDCL) and (v) North Bihar Power Distribution Company Limited (NBPDCL). The responsibilities of the newly-formed companies are briefly described below. Bihar State Power (Holding) Company Limited (BSPHCL) : This Company will own shares of the newly-incorporated, reorganized four companies — Bihar State Power Generation Company Limited, Bihar State Power Transmission Company Limited, South Bihar Power Distribution Company Limited, and North Bihar Power Distribution Company Limited. It is vested with the assets, interest in property, rights and liabilities of the erstwhile Bihar State Electricity Board (BSEB). The Company will primarily be an investment company. It will co-ordinate the activities other companies, handle disputes and provide all necessary support to them. Bihar State Power Generation Company Limited (BSPGCL) : This company is responsible for coordinating and advising other companies and concerns, including subsidiaries, engaged in the generation of electricity. The coordination and advisory roles include all matters concerning the construction, operation and maintenance of generating stations and associated facilities. It is also responsible for procuring fuel and its transportation to various sites and settling pending disputes. Bihar State Power Transmission Company Limited (BSPTCL) : This company is responsible for the transmission of electricity and is vested with the transmission assets, interest in property, and rights and liabilities of the erstwhile BSEB. Besides planning and coordination activities, this company is expected to develop an efficient system of intra-state transmission lines for electricity, connecting load centres to the generating stations. North and South Bihar Power Distribution Companies Limited (NBPDCL and SBPDCL): These two companies undertake the activities of distribution to all consumers, trading of electricity, and implementation of rural electrification schemes — under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), special Backward Region Grant Fund (BRGF), Restructured Accelerated Power Development and Reform Programme (R-APDRP), State Plan, and schemes funded by Asian Development Bank (ADB), the last one being an Externally Aided Project (EAP). The introduction of open access in distribution as per the Electricity Act 2003 and the directions of the regulator is also the responsibility of these two companies. They also tender, finalise and execute Power Purchase Agreements (PPA) and other agreements for sale or purchase of electricity. 195

The allocation of fund for BSPHCL and its subsidiary companies, Bihar Renewable Energy Development Agency (BREDA) and Bihar State Hydroelectric Power Corporation (BSHPC) was Rs. 3110.92 crore in 2013-14, which increased to Rs. 4189.92 crore in 2014-15. The outlay for 2015-16 is Rs. 3663.49 crore. The breakup of this amount under various heads is given in Table 6.8. Table 6.8 : Allocation of Funds under BSPHCL (Rs. crore) State Plan

Years

BRGF

BSHPC Genera- Transmi- DistribuBSPHCL BREDA BSHPC (RIDF) tion ssion tion

EAP

Total

2013-14 2125.00

367.346

25.00

25.00

215.00

50.00

15.00

63.57 225.00

3110.92

2014-15 1650.00

369.214

61.68 661.00

1099.18

20.00

38.93

69.92 220.00

4189.92

2015-16 2274.00

64.430

181.01 448.99

486.00

60.00

15.00

67.80

3663.49

66.26

Source : Department of Energy, GOB

6.4 Distribution Companies The distribution is an extremely important component of the whole electricity supply chain, as this is the only arm that generates revenue. This revenue enables the state government to improve the entire supply chain, by purchasing more electricity from the central sector. Thus, a major challenge of the power sector reforms lies in the efficient management of the distribution sector. The distribution system in Bihar is being served by two distribution companies — North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL). These companies are serving more than 70 lakhs of electricity consumers. At the end of October 2015, the distribution network in Bihar consisted of 1,33,491 circuit km low tension lines, 11 kV lines with 73,359 circuit km network, and 33 kV lines with 9815 circuit km network. There are 641 power substations (33/11 kV) and 1,00,842 distribution substations (11/0.4 kV). Table : 6.9 : Category-wise Number of Effective Consumers (As per billing data) Year

Domestic Commercial

Industrial Industrial Public ( LT) ( HT) Lighting

Traction Agriculture

Public Water Works

Total

Category-wise Number of Consumers 2012-13

3773077 (91.30)

279879 (6.77)

18816 (0.45)

1317 (0.03)

399 (0.01)

17 (neg.)

57838 (1.39)

1098 (0.03)

4132441 (100.0)

2013-14

3900733 (91.89)

273466 (6.44)

15851 (0.37)

1422 (0.03)

389 (0.01)

19 (neg.)

51989 (1.2)

1192 (0.03)

4245061 (100.0)

2014-15

5174585 (92.45)

346375 (6.19)

19599 (0.35)

1582 (0.03)

511 (0.01)

19 (neg.)

52980 (0.94)

1302 (0.02)

5596953 (100.0)

Source : Department of Energy, GOB Note : Figures in bracket indicate percentage shares.

196

The two distribution companies are already implementing several schemes for expanding and strengthening their distribution networks. These ongoing schemes include transformer replacement, procurement of new transformers, replacement of old conductors of existing high tension (HT) and low tension (LT) lines, and construction of new HT and LT lines, Power System Stabilisers (PSS) and bays. During the recent years, the demand for electricity has been increasing continuously in the state, because of both fast economic growth and the growth of population. This has resulted in high AT&C (Aggregate Technical and Commercial) loss, specially due to large scale rural electrification. In 2014-15, it was as high as 43.82 percent. Earlier, it was even higher — 46.33 percent (2013-14) and 54.63 percent (2012-13). The new distribution companies have been trying to address this issue by improving the billing and collection system, along with the metering of all consumer connections. Energy accounting and auditing at feeders and distribution transformers (DT) are essential for reducing these losses, and the distribution companies have already started this exercise. 6.5 Operational and Financial Status The generation and purchase of power (net of central transmission loss) in Bihar increased from 10,883 MU in 2010-11 to 17,418 MU in 2014-15. With increase in sales, the revenue collection has increased. The cost coverage has also risen from 69 percent in 2010-11 to about 89 percent in 2014-15, thus bringing down financial loss from 31 percent to 11 percent. The financial status of BSPHCL is described in Table 6.10. Table 6.10 : Financial Status of Power Sector 2013-14 Item

2010-11

2011-12

2014-15

2012-13 NBPDCL SBPDCL NBPDCL SBPDCL

Generation and Purchase (MU)

10883

11966

12614

5380.87

8620.56

7029.41 10388.18

6139.14

6694.93

7213.00

3604.82

4636.66

5003.92

5814.24

Losses (Percentage)

43.59

44.05

42.82

33.01

46.21

28.82

44.03

Average Revenue (Rs./Unit)

3.87

4.64

4.58

4.17

4.86

4.19

4.37

Sale of Power (Rs. crore)

2376.00

3109.00

3307.00

1503.66

2254.77

2095.00

2540.28

Total Income (including subsidies) (Rs. crore)

3617.61

5421.00

6480.56

2723.69

4190.81

3559.74

4610.37

Total Cost (Rs. crore)

5240.47

7798.78

7707.55

2797.95

4459.50

3856.53

5357.92

Cost Coverage (Total Income/Total cost) (Percentage)

69.03

69.51

84.08

97.35

93.97

92.30

86.05

Financial Loss (Percentage)

30.97

30.49

15.92

2.65

6.03

7.70

13.95

Sales (MU)

Source : Department of Energy, GOB

6.6 Programmes for Electrification and Distribution Schemes Three important programmes of the central government for expanding the coverage of electricity supply are — Integrated Power Development Scheme (IPDS) (Earstwhile Restructured Accelerated Power Development and Reforms Programme — R-APDRP), Din Dayal Upadhyay 197

Gram Jyoti Yojana (DDUGJY) (Earstwhile Rajiv Gandhi Grameen Vidyutikaran Yojana RGGVY), and Special Plan (Backward Region Grant Fund). The progress of these programmes are presented below: Integrated Power Development Scheme (IPDS) The scheme of R-APDRP, as approved by the central government for continuation in Twelfth and Thirteenth Plans, has been subsumed in the newly launched Integrated Power Development Scheme (IPDS) in December, 2014. It has several components — IT enablement of distribution sector, strengthening of distribution network for completion of targets, strengthening of subtransmission network in urban areas, and metering of distribution transformer/feeders/ consumers in the urban areas. Under Part-A of the erstwhile R-APDRP scheme, the work in 67 towns (excluding 4 franchise towns) is under progress. The distribution system is being strengthened under Part-B of the scheme in 60 towns and under the ADB-funded scheme in 7 towns. The work in 7 towns under the ADB-funded scheme is on the verge of completion. The aim is to provide real-time monitoring and control, minimizing loss, balancing load, and improving voltage profiles. The details of capital expenditure under R-APDRP are presented in Table 6.11. Table 6.11 : Capital Expenditure of R-APDRP Project Component under R-APDRP

Outlay (Rs. crore)

R-APDRP—Part A

253.68

R-APDRP—Part B

1155.21

R-APDRP—SCADA Total

36.00 1444.89

Source : Department of Energy, GOB

Village Electrification The central government has launched Deen Dayal Upadhyaya Gram Jyoti Yojna (DDUGJY) in December, 2014 with the following objectives : (i)

Separation of agriculture and non-agriculture feeders, facilitating judicious restoring of supply to agricultural and non-agriculture consumers in the rural areas.

(ii)

Strengthening and augmentation of sub-transmission and distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers.

(iii) Rural electrification for completion of the targets laid down under RGGVY under Twelfth and Thirteenth Plans by carrying forward the approved outlay of RGGVY to DDUGJY. The scheme of RGGVY as approved by the central government for continuation in Twelfth and Thirteenth Plans has been subsumed in this scheme as a separate rural electrification component. 198

Bihar, with 88.7 percent of its population living in rural areas (2011 census), remains the most ruralised state in India, the national average being around 68.9 percent. Thus, improving connectivity of rural areas to the power grid is of great importance. In view of this, the rural electrification work is being carried out in all the 38 districts of the state under DDUGJY (erstwhile RGGVY). The progress of Rural Electrification under DDUGJY is presented in Table 6.12. Table 6.12 : Progress of Work under DDUGJY (Erstwhile RGGVY) (Figures for no. of villages) Agencies / Eleventh Plan Tenth Targets / Plan Phase I Phase II Achievements Electrification of Unelectrified Villages (EUV)

Twelfth Plan

Total

Target NBPDCL

5954

4118

384

1450

11906

SBPDCL

10627

697

765

345

12434

Total

16581

4815

1149

1795

24340

NBPDCL

5954

4103

384

452

10893

SBPDCL

10627

697

744

284

12352

Total

16581

4800

1128

736

23245

Achievements

Intensive Electrification of Partially Electrified Villages (PEV) Target NBPDCL

-

5864

3510

14511

23885

SBPDCL

-

106

9435

7547

17088

Total

-

5970

12945

22058

40973

NBPDCL

-

5860

1670

1356

8886

SBPDCL

-

106

3041

258

3405

Total

-

5966

4711

1614

12291

Achievements

Source : Department of Energy, GOB

Special Plan (BRGF) The Backward Regions Grant Fund (BRGF) of the central government is designed to redress regional imbalances in development. This is a fully funded scheme of the central government. The fund provides financial resources for supplementing and converging existing developmental inflows into identified backward districts. It aims to bridge critical gaps in local infrastructure and other development requirements that are not being adequately met through existing inflows. The fund will facilitate participatory planning, decision making, and implementation and monitoring, reflecting the local felt needs. It also helps to improve the performance of critical functions by the state government. The scheme is divided into four parts — Phase-I, Phase-II, Phase-II (Part-C) and Rural Electrification (RE). The estimated cost of the above schemes is Rs. 5818.19 crore. Till November 2015, the expenditure incurred is around Rs. 1856.85 crore. 199

In 2014-15, there were about 160.50 lakhs un-electrified households in the state — 157.54 lakhs in the rural areas and 3.06 lakhs in urban areas. For 157.54 lakhs un-electrified rural households, a target has been set to electrify all those households by extending supply from the grid in a phased manner by 2018-19. Keeping in view of the fast growth of households in the urban areas due to migration from rural to urban, a target has been set to release connections to 1.58 lakh households in 2015-16, and 1.47 lakh households in 2016-17. Thus, by the end of 2016-17, every urban household will be electrified. 6.7 Transmission Power is supplied to various categories of consumers through a transmission network, which also involves the transformation of high voltage power to lower voltage. The transmission network serves as an important link between the generation and distribution of electricity. The challenges pertaining to the transmission process are, thus, mostly related to the growing needs of the other two segments — generation and distribution. To meet t h e g r o w i n g d e m a n d o f p o w e r , a robust and reliable transmission network is required, for both inter-state and interstate transmission. The existing transmission system is, therefore, being strengthened with proper planning to cater t o the demand for 24 hour availability of power by all types of consumers. Presently, about 9307 circuit km EHV (Extra High Tension) transmission line, 98 grid substations with total transformation capacity of 6700 MVA and evacuation capacity of 5360 MW comprise the its transmission system in Bihar. The projection for 2017-18 is 13,900 circuit km transmission line, 152 grid sub-stations with 12,830 MVA at 220/132 KV level and 13,020 MVA at 132/33 KV transmission capacity. The required capacity for 24 hour power supply for the period 2015-16 to 2018-19 has been projected, as presented in Table 6.13. The plan of action to meet the projected demand in 2017-18 and 2018-19 has been shown in following Table 6.14. The power availability during the peak period was 2831 MW in 2014-15, which increased to 3459 MW in October 2015, implying an increase of 23 percent. Table 6.13 : Projected Required Capacity for Power (2015-16 to 2018-19)

Demand / Capacity

2015-16

2016-17

2017-18

2018-19

Peak Demand (MW)

4112

5588

7088

8774

Transformation Capacity needed to meet Peak Demand (MW)

7710

10477.5

13290

16452

Available Capacity (MW) 8999/11870 11230/12620 12830/13020 12830/13020 (MVA) at 220/132/33 KV level Source : Department of Energy, GOB

200

Table 6.14 : Plan of Action for Strengthening Transmission Nos. of New Grid Sub-Stations

Year 2017-18

New Transmission Lines (Circuit km)

 400/220 kv-01 No.

 400 kv-150

 220/132/33kv-03 Nos.

 220 kv-360  132 kv-240

2018-19

 400/220 kv-04 Nos.

 400 kv-600

 220/132/33 kv-10 Nos.

 220 kv-1200

 132/33 kv-10 Nos.

 132 kv-800

Source : Department of Energy, GOB

6.8 Generation The state government has several plans for improving the power scenario of the state. To achieve the objectives envisaged in the document ‘24×7 Power to All’ and National Power Policy, the state government has initiated actions for extensive expansion of generation capacity through coal based power plants, hydro power generation and renewable energy generation. The BSPGCL has embarked on an ambitious plan to add substantial generating capacity in the next few years. It is targeting to achieve a total generating capacity of 1330 MW by 2016-17, 3310 MW by 2017-18 and 7270 MW by 2021-22. In order to turn its vision into reality, BSPGCL has entered into Joint Ventures with reputed companies in the power sector, like National Thermal Power Corporation (NTPC) and National Hydro Power Corporation (NHPC). The total generation capacity availability of power as on March 2015 for the state w a s 3704.63 MW. Out of t h i s , 83.5 percent is from coal based thermal power, 14.12 percent from hydro power, and the balance 2.3 percent from renewable energy sources. In terms of ownership, central sector has the largest share of 77.9 percent, followed by the private sector/IPPs (14.7 percent), and state sector ( 7.4) percent. The details of existing generating capacity in Bihar are shown at in Table 6.15. Table 6.15 : Existing Generation Capacity (March 2015) (Figures in MW) Ownership / Sector

Thermal Nuclear Coal

Gas

Diesel

Total

Hydro (Renewable)

RES (MNRE)

Grand Total

State

220

0

0

220

0

55

0

275

Private/ IPPs

460

0

0

460

0

0

86

546

Central

2414.10

0

0

2414.10

0

469.53

0

2883.63

Total

3094.10

0

0

3094.10

0

524.53

86

3704.63

Note : RES = Renewal Energy Sources; MNRE = Ministry of New and Renewable Energy; IPP = Independent Power Producers

201

As per the Generation Plan, capacity of 6521.30 MW is expected to be added by 2018-19, either from new projects, o r from those under construction, or from those under renovation and modernisation (R&M). Out of this, about 312 MW shall be from non- conventional energy sources and 6209.30 MW from conventional sources. As such, the total available capacity for Bihar by the end of 2018–19 is expected to be 10,226 MW — 9828 MW conventional and 398 MW renewable. The present status of the three generating units that remained in Bihar after the bifurcation of the state in 2000 is as below : (1)

Barauni Thermal Power Station (BTPS) Although BTPS has 7 different units, 5 of them have already run through their working life and are not in service anymore. The renovation and modernization work of remaining two units of 110 MW each is in progress. The construction works of two new units of 250 MW each is also going on under the extension programme. With consistent efforts of the state government, the coal linkage and environmental clearance have been obtained for these two new units.

(2)

Kanti Bijlee Utpadan Nigam Limited (KBUNL) The KBUNL is a joint venture of NTPC and BSPGCL, having equity partnership ratio of 65:35. It has two units of 110 MW each. The power production has started in both the units after renovation and modernization last year. The construction work of two new units of 195 MW each is also going on under the extension programme.

(3)

Kosi Hydel Power Station (KHPS) The Kosi Hydro Power Station (Kataiya), Birpur, consisting of 4 units of 4.8 MW each was commissioned during 1970-78. This project was handed over to Bihar State Hydroelctric Power Corporation (BSHPC) in November, 2003. The renovation work of 3 out of 4 units has been completed and power generation has started.

At present, the work is in progress for four more generating units in Bihar. On completion of all these projects, the dependence of Bihar on the central sector for power will be lessened. The details of these new projects are presented below: (1)

Nabinagar Stage-1 Plant : This project is located in Aurangabad district. For this power project, the construction works of three units of 660 MW each in progress. Due to sustained efforts of the state government, coal linkage has been allotted by the Ministry of Coal of the central government for starting own production in the state.

(2)

Power Projects in Buxar, Bhagalpur and Lakhisarai : The agreement has been signed with Satluj Hydro Electric Corporation for the construction of greenfield power projects at Chausa (Buxar), having two units of 660 MW each. In addition, agreement has also been signed with NHPC and NTPC for the construction of two greenfield thermal power plants 202

of 660 MW each. The plant in Pirpainti (Bhagalpur) will be constructed by NHPC and that in Kajara (Lakhisarai) by NTPC. (3)

Ultra Mega Power Project (Banka) : A proposal has been sent for the establishment of a power project in Banka (approximately 4000 MW), for which 2500 acres of land has been identified. The Central Water Commission has given consent for 120 cusecs of water from the Ganga river. The Power Finance Corporation (PFC) has incorporated two Special Purpose Vehicles (SPV) for carrying out the pre-award project activities. The Ministry of Power of the central government has allotted Barhat and Dhulia Nala Coal Block having a reserve of 731 MT. 2000 MW has been allocated to Bihar. Table 6.16 : Details of Existing and Planned Generation Units

Thermal Plan

KANTI TPP (2x110 MW) (2x195 MW)

201415 (Present Status) 220 MW

BARAUNI TPP (2x110 MW) (2x250 MW) ---

NABINAGAR TPP (3x660 MW) 1980 MW

BUXAR TPP (2x660 MW) SJVNL

2015-16 (Under Progress)

---

110 MW U# 7 Feb.’ 2016

---

2016-17 (Under Progress)

2017-18 (Under Progress)

2018-19

By 2022 (Upcoming Projects)

Beyond 2022

390 MW U# 3, Oct 16 and U#4, Dec.’ 2016 (195 MW each)

---

---

---

---

610 MW U# 8 & 9 Dec’ 2016 (250 MW each) U# 6 June 2016 110 MW

---

---

---

---

---

1980 MW U# 1 May- 2017 U# 2 Sep’ - 2017 U# 3 Mar’ – 2018

---

---

---

---

---

---

---

---

---

MoU signed on 20.11.15 1320 MW

BANKA UMPP (4000 MW)

---

---

---

---

---

---

Total Installed Capacity

220 MW

330 MW

1,330 MW

3,310 MW

3,310 MW

4630 MW

4000 MW 8,630 MW

Source : Department of Energy, GOB Note : Memorandum of Understanding (MoU) for Pirpainti Thermal Power Project (PPP) (2×660MW) with NHPC and for Lakhisarai Thermal Power Project (TPP) (2×660MW) with NTPC are to expire on 22.02.2016.

203

6.9 Recent Developments in Power Sector The state government, as already mentioned before, has prepared a document ‘24x7 Power to All’, presenting a roadmap for the development of power sector. Some of the recent developments under this roadmap have been : (a)

The idea of new service connection by organizing special camps in September, October and December 2014 and in February and August 2015 have resulted in 7.78 lakhs of new service connections.

(b)

Adequate number of engineers (at Executive, Assistant and Junior levels) have been posted at district level for proper monitoring of projects.

(c)

For revenue monitoring on day to day basis, monthly training programme for field officers are being organized.

(d)

For facilitation of new connections and redressal of grievances regarding high tension (HT) connections, online facility has been started.

(e)

For payment of electricity bills, provision has been made for alternatives like ATM, Sahaj Vasudha Kendra, ATP Machine, Net Banking, Mobile Phone and Grameen Banks. In addition, services of mobile vans have also been provided to the consumers for bill payment at their doorsteps.

(f)

A '24x7 Fuse Call Centre' has been established for providing uninterrupted power supply and redressal of consumer grievances.

(g)

Revenue-Linked Supply scheme has been launched in four districts of the state for increasing the revenue. Under this scheme, power would be supplied in proportion to the revenue obtained.

6.10 Bihar Renewable Energy Development Agency (BREDA) Most of Bihar’s installed generation capacity is concentrated in thermal power plants. This leads to a concern not only about the clean generation of electricity, but also puts a fiscal burden on the state, given that the prices of coal may be very volatile. Thus, aside from promoting hydel power projects, the state government has also created an agency called Bihar Renewable Energy Development Agency (BREDA), which is responsible for the development of projects that would use non-conventional energy sources for production of electricity. The state government provides funds to BREDA for expenditure on subsidies for the schemes and also for the expenditure on establishments.

204

Table 6.17 : Achievements of BREDA Physical Achievement

Financial Outlay

Distribution of Solar Lanterns (across all districts)

2000 nos.

Rs. 0.30 crore

Distribution of Solar Lanterns (across all districts amongst SC/ST)

4000 nos.

Rs. 0.60 crore

240

Rs. 71.88 lakh

1152 nos.

Rs. 13.14 lakh

493 nos.

Rs. 16.3 crore

100 Kwp

Rs. 4.50 crore

Distribution of Solar Lanterns (across all districts)

5000 nos.

Rs. 0.99 crore

Distribution of Solar Homelights

4900 nos.

Rs. 2.94 crore

366 nos.

Rs. 30.52 crore

200 nos.

Rs. 16.68 crore

989 nos.

Rs. 29.39 crore

100 kW

Rs. 1.55 crore

Solar electrification at Abhilekh Bhavan

50 kW

Rs. 0.775 crore

Solar electrification at Vidyut Bhavan

50 kW

Rs. 0.67 crore

Schemes 2012-13 A. Solar Photovoltaic Scheme

B. BEE (Bureau of Energy Efficiency) Schemes LED street light installation in various places in Patna by Patna Nagar Nigam LED bulbs and street lights in Nepura, Pilkhi, Sarilchak and Jahanabad (Nahub) villages 2013-14 A. Solar Photovoltaic Scheme Solar Water Pumping Systems installation under Bihar Saur Kranti’s irrigation scheme Solar electrification of Honorable Chief Minister’s House, Janata Durbar, and residential office

B. BEE (Bureau of Energy Efficiency) Schemes LED street light installation in various places in Patna by Patna Nagar Nigam LED street light installation in various places at Bodh Gaya by Bodh Gaya Nagar Panchayat 2014-15 (Upto September, 2015) A. Solar Photovoltaic Scheme Solar Water Pumping Systems under Mukhyamantri Naveen & Naveekarniya irrigation scheme Solar electrification at Buxar Open Jail

Solar Electrification at Chief Justice House

40 kW

Rs. 0.62 crore

Solar electrification at District Collectorate, Hospital, Guest House of 25 kWp Solar electrification at District Collectorate, Hospital, Guest House of 8-25 kWp

78 nos.

Rs. 35.33 crore

24 nos.

Rs. 11.397 crore

Solar Electrification at BBRA university, Muzaffarpur

100 kW

Rs. 1.55 crore

Solar Electrification at JP University, Chapra

100 kW

Rs. 1.55 crore

Solar Electrification at Apna Ghar, Patna

50 kW

Rs. 0.59 crore

B. BEE (Bureau of Energy Efficiency) Schemes LED street light installation in various places in Patna by Patna 400 nos. Nagar Nigam LED street light installation in various places in Patna, Biharsarif, 1023 nos. Darbanga, and Gaya Source : Department of Energy, GOB

205

Rs. 0.32 crore Rs. 1.36 crore

6.11 Bihar State Hydroelectric Power Corporation Limited Aside from thermal power, Bihar also has potential for generating power from water resources and, presently, this is being exploited to some extent. The Bihar State Hydroelectric Power Corporation Limited (BSHPC) was established to oversee expansion of hydroelectric power projects in the state. During the Tenth Plan, BSHPC started exploring possibilities for major hydel projects, besides its earlier mandate for minor hydel projects, There are 13 minor hydel projects that are currently operational in the state, with a total installed capacity of 54.3 MW. Presently, BSHPC is also engaged in exploring the possibilities of more minor hydel power projects in the state. There are 17 such schemes where the exploration work is in progress _____________

206

CHAPTER VII RURAL DEVELOPMENT

The agenda of rural development is very important for the Indian economy, since nearly 70 percent of its population live in rural areas, earning their livelihood mainly from agriculture. For Bihar, this agenda is even more important. No less than 90 percent of Bihar’s population live in rural areas. The challenge of development of the rural economy assumes greater significance in Bihar, as the density of population in the state is very high, putting enormous pressure on its land resources. The rural Bihar also sends a large number of migrants, either within or outside the state, underlining the limited scope of employment in the rural economy. For rural development, the state government has several programmes like extending irrigation network, improving road connectivity of the rural areas, increasing the availability of power, and a number of schemes to help the farmers to improve the technological base of agriculture. Some of these programmes to strengthen the rural economy are also supported by the central government. In addition, the state government has also made several interventions in the field of health and education to promote social development in the rural areas. All these programmes are aimed at strengthening the rural economy at one hand and promoting human development in the rural area. This chapter, however, is focused on some of the rural development programmes that directly help the rural population. These programmes include — Bihar State Rural Livelihood Mission, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Indira Awas Yojana (IAY) and Public Distribution System (PDS). Later, the chapter also presents the functioning of Panchayati Raj Institutions (PRI), Land Distributions, Disaster Management System, and Environment. 7.1 Poverty In order to attain sustainable development, the vicious circle of poverty should be overpowered by economic drivers. For measuring poverty, the Planning Commission has adopted the Tendulkar Committee estimates which, apart from the caloric consumption, include expenditure on health and education as part of expenditure on non-food items. Table 7.1 presents the poverty ratios in Bihar and India, for the years 2004-05 and 2011-12, as estimated by the Tendulkar Committee. The poverty ratio for Bihar is 34.1 percent for rural and 31.2 percent for urban households in 2011-12, implying an overall poverty ratio of 33.7 percent. These poverty ratios are much higher than that for India. From the table, it is also seen that, between 2004-05 and 2011-12, the poverty ratio declined by 20.7 percentage points for Bihar, as against 15.3 percentage points for all-India. The pace of reduction of rural poverty has been faster than that of the urban poverty, in both Bihar and India. Although Bihar accounts for 8.6 percent of India’s population, its share in the poverty-stricken population is much higher at 13.3 percent (Table A 7.1) (Appendix). A second indicator of poverty is the average Monthly Per Capita Expenditure (MPCE), collected by National 207

Sample Survey Organisation (NSSO). The 66th round of the NSSO survey reveals that, in 2011-12, the MPCE in rural areas in India is Rs 1287 and, for urban areas, it is Rs. 2477 (Table 7.2). The corresponding figures for Bihar is Rs 970 for rural and Rs 1397 for urban areas. In fact, the figures for Bihar is the lowest among all the major states. For rural areas, the MPCE in Bihar is only three-fourth of the all-India average; for urban areas, the gap is wider, the Bihar figure being a little more than half of the all-India average. Table 7.1 : Poverty Ratio of Bihar and India

2004-05

Reduction in Poverty Ratio (in % Point)

2011-12

State Rural

Urban

Combined

Rural

Urban

Combined

Rural

Urban

Combined

Bihar

55.7

43.7

54.4

34.1

31.2

33.7

21.6

12.5

20.7

India

42.0

25.5

37.2

25.7

13.7

21.9

16.3

11.8

15.3

Source : Planning Commission, GoI. Table 7.2 : Average Monthly Per Capita Expenditure (2011-12) (Rs.) Rural

Urban

Bihar

970.4

1396.7

All-India

1287.2

2477.2 th

Source: NSSO 66 round

7.2 Rural Development Programmes To alleviate poverty in the rural areas, the state government is presently implementing a number of rural development programmes. In the following sections, an attempt is made to review the implementation of important rural development programmes in the state, which are expected to generate additional income and expand livelihood options for its rural population. Bihar State Rural Livelihoods Mission (JEEVIKA) JEEVIKA is an initiative of the state government for poverty alleviation. It aims at social and economic empowerment of the rural poor by improving their livelihoods through developing institutions of the women, like Self-Help Groups (SHGs) and their federations to enable them to access better services and obtain credit for creating self-employment opportunities. The Ministry of Rural Development of the central government had launched the National Rural Livelihood Mission (NRLM) by restructuring Swarnajayanti Gram Swarozgar Yojana (SGSY), effective from April, 2013. The Bihar Rural Livelihoods Promotion Society (BRLPS) is functioning under the overall framework of NRLM, and implementing the JEEVIKA scheme. By the end of September, 2015, 47 lakh poor households were mobilised into 4.40 lakh SelfHelp Groups (SHGs). Out of these SHGs, 60 percent were federated into 21,529 Village Organisations (VO). These VOs were then amalgamated into 262 Cluster Level Federations. The project emphasizes on providing financial support to the SHGs by opening of saving 208

Table 7.3 : Progress of SHGs Items

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

No. of SHGs formed

15542

16627

24193

81620

207993

440489

No. of SHGs with bank account

16497

14054

16106

37556

116783

271377

No. of SHGs credit linked with banks

8007

14555

20219

23527

51403

148722

Bank credit (Rs. crore)

39.6

76.4

104.6

149.3

283.5

809.5

Note: The figures for 2015-16 are as on September, 2015 Source: Jeevika, GOB

Table 7.4 : Extent of Livelihood Related Activities by SHGs Activities

Number

Farms Number of farmers who undertook paddy cultivation

201702

Number of farmers who undertook SWI ( System of Wheat Intensification)

193884

Number of farmers engaged in Vegetable Cultivation

141824

Number of farmers engaged in Kitchen Gardening

26563

Number of farmers producing Mentha Oil

625

Number of farm-based Producer Groups (PG)

982

Off- Farms Number of Mother Units opened (Poultry) Number of households linked with poultry intervention Number of Producer Groups (PG) formed ( Dairy) Number of households linked with dairy

105 34704 446 34081

Non-Farm Number of Producer Groups (PG) formed for non-farm products (sujani, sikki, madhubani, agarbatti etc.) Number of households linked with non-farm PGs

260 14780

Skill Training Number of young people trained

68683

Number of young people placed or self -employed

51579

Vulnerability Reduction Number of Village Organisation (VO) participating in Food Security Intervention Number of Village Organisation (VO) participating in Health Risk Intervention Number of ANNAPURNA Centres ( Community Health and Nutrition Care Centre) Number of pregnant/lactating women benefited through ANNAPURNA Source : Jeevika, GOB

209

8058 7462 203 17081

bank account in different banks and ensuring their credit linkage. Till date, 1.49 lakh SHGs have been linked with banks, and they were able to obtain a total loan of Rs. 809.49 crore (Table 7.3). These SHGs have undertaken a number of activities to promote self-employment on farms or off-farms or non-farm (Table 7.4). In addition, they have also arranged for extensive skill training. Till date, 68.7 thousand young people have been trained to acquire various skills, and 51.6 thousand of them have also been able to find either self-employment or wage employment. Yet another activity of these SHGs is participation in Food Security Interventions or Health Risk Interventions. They also organise ANNAPURNA centres which cater to community health and nutrition care. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) In Bihar, the problem of employment insecurity is very serious because of the skewed land distribution in rural areas, resulting in a mass of agricultural labourers and marginal farmers in need of additional employment opportunities. The MGNREGS seeks to enhance the livelihood security of the households in rural areas by guaranteeing at least 100 days of wage employment in a year to every household whose adult members volunteer to do unskilled manual work. Simultaneously, the scheme is designed to create community assets for the benefit of the rural society. This is expected to decrease distress migration and have multiplier effect on the rural economy. The MGNREGS has become a powerful instrument for inclusive growth in rural areas through its impact on livelihood security and social protection. The information about the performance of the programme is presented in Table 7.5. As regards the number of job cards issued, it has been very high, throughout the period of 201011 to 2014-15. In 2014-15, it was 131.22 lakh. However, the number of households provided with employment has been decreasing over the years and, in 2014-15; it was only 10.36 lakhs. To the advantage of the women workers, their share in total employment has been above 25 percent in all the years; in 2014-15, this share was as high as 37.3 percent. Table 7.5 : Performance of MGNREGS Year

2010-11

2011-12

2012-13

2013-14

2014-15

No. of Job Cards Issued (lakh)

130.5

133.8

133.5

131.9

131.2

No. of households provided with employment (lakh) No. of Households obtaining 100 days of employment (lakh) Employment generated (lakh persondays) Percentage share of women in total employment generated Average employment per household (persondays)

46.9 (35.9) 2.6 (5.6)

26.8 (20.1) 1.4 (5.1)

24.7 (18.5) 1.6 (6.3)

20.6 (15.6) 1.2 (6.0)

10.4 (7.9) 0.3 (3.0)

1597.5

866.4

965.4

862.2

352.7

29.6

28.2

29.9

35.0

37.3

34.1

32.3

39.2

41.9

34.1

Number of completed works

83593

54589

64846

104832

114425

Fund utilized (percentage)

82.7

65.0

82.9

81.8

74.4

No. of accounts opened (in lakh)

102.6

107.6

110.7

111.0

49.3

Note: Figures in parentheses denote percentages with respect to the previous row Source: Department of Rural Development, GOB

210

The district-wise details about the implementation of MGNREGS is presented in Table A 7.2 (Appendix). In that table, one can observe a wide variation across the districts in the performance of MGNREGS. In 2014-15, the maximum number of job cards were issued in Muzaffarpur (6.28 lakhs), followed by East Champaran (5.96 lakhs) and Gaya (5.71). Less than one lakh job cards were issued in small districts of Sheohar (0.76 lakhs), Sheikhpura (0.90 lakhs) and Arwal (0.92 lakhs). The SC households represent 26.3 percent of the households with job cards. The percentage of households demanding employment was the highest in Katihar (21.6 percent), followed by Sitamarhi (18.3 percent); this figure was the lowest in Vaishali (5.2 percent). Nalanda ranked first (9.3 percent) as regards providing 100 days of employment to those who had demanded it, followed by Kaimur (7.3 percent), and Bhagalpur (6.3 percent). The districts reporting the highest participation of women were — Begusarai (57.9 percent), Darbhanga (47.4 percent) and Saharsa (46.7 percent), each one recording more than 40 percent participation of women in 2014-15. Less than 25 percent participation of women has been registered in Rohtas (21.0 percent), Kaimur (23.8 percent) and Siwan (24.5 percent). There is also wide inter-district variation as regards the total employment generation in 2014-15. Gaya (24.47 lakhs mandays) is the best district in employment generation, followed by Nalanda (17.93 lakhs mandays) and East Champaran (16.73 lakhs mandays). The two districts with the lowest employment generation in 2014-15 were Munger (2.23 lakhs mandays) and Arwal (2.33 lakhs mandays). The district-wise financial progress under MGNREGS is shown in Table A 7.3 (Appendix). Saharsa (99.7 percent) is the best district in the utilisation of fund in 2014-15. Lakhisarai (92.0 percent) and Jamui (91.7 percent), also utilized more than 90 percent of the MGNREGS fund. Table 7.6 : Completed Works under MGNREGS Year / Categories

2010-11

2011-12

2012-13

2013-14

2014-15

Water conservation

11424 (13.7)

6059 (11.1)

7009 (10.8)

6879 (6.6)

1937 (1.7)

Drought proofing

6609 (7.9)

5360 (9.8)

16246 (25.1)

29121 (27.8)

17963 (15.7)

Micro-irrigation works

7368 (8.8)

4605 (8.4)

4335 (6.7)

5618 (5.4)

1429 (1.2)

Provision of irrigation facility

1841 (2.2)

1902 (3.5)

1813 (2.8)

3210 (3.1)

4029 (3.5)

Renovation of traditional water bodies

7650 (9.1)

5065 (9.3)

6828 (10.5)

2428 (2.3)

592 (0.5)

Land development

4674 (5.6)

3229 (5.9)

4090 (6.3)

7654 (7.3)

2761 (2.4)

Flood control and protection

5072 (6.1)

2554 (4.7)

2265 (3.5)

1318 (1.3)

273 (0.2)

Rural connectivity

38955 (46.6)

25521 (46.8)

22056 (34.0)

28631 (27.3)

9410 (8.2)

Any other activity

0 (0.0)

294 (0.5)

204 (0.3)

19973 (19.1)

76031 (66.4)

83593 54589 64846 104832 114425 (100.0) (100.0) (100.0) (100.0) (100.0) Note : Figures in the parentheses denote percent share to total works completed Source : Department of Rural Development, GOB

Total Works Completed

211

Table 7.6 lists the category-wise completed works under MGNREGS, from 2010-11 to 201415. The projects for Drought Proofing and Rural Connectivity have dominated the scheme during this period. In 2014-15, these two categories together accounted for 23.9 percent of the total projects. The third most important category is Water Conservation, although provision of Irrigation Facility had the third highest share (3.5 percent) in 2014-15. Eventually, all these projects help in development of rural infrastructure and expansion of livelihood options for the rural people. Indira Awas Yojana (IAY) Shelter is a basic need of a citizen which is critical for the quality of life. A roof over the head endows a homeless person with an essential asset and improves his physical and mental well being. Hence, fulfilling the housing need, particularly for the rural poor, is an important component of the poverty alleviation efforts of the government. The Indira Awaas Yojana (IAY) is a flagship scheme of the Ministry of Rural Development for rural housing. Under the scheme, financial assistance is provided to the households living Below Poverty Line (BPL) in the rural areas for the construction of dwelling units. It has been in operation since 1985-86. The summary of the performance of IAY in Bihar over the last five years is presented in Table 7.7. Table 7.7 : Performance of the IAY Scheme (Figure in lakh) Annual Physical Target

Total

SC & ST

Percentage of Fund Utilisation

2010-11

7.59

5.29 (69.8)

2.60 (49.1)

66.4

2011-12

7.37

4.50 (61.1)

2.00 (44.5)

68.0

2012-13

8.36

8.40 (100.4)

3.72 (44.3)

75.9

2013-14

6.06

6.95 (114.8)

3.12 (51.6)

66.4

2014-15

2.75

4.99 (181.5)

2.48 (90.2)

66.2

Year

Houses Completed

Note : Figures in parentheses denote percentages with respect to the previous column Source : Department of Rural Development, GOB,

Since 2012-13, more than cent percent of physical targets were achieved in Bihar under IAY, compared to much lower achievements in previous years. The share of SCs and STs in the total houses completed was barely half up to 2013-14, but there has been a notable improvement in 2014-15 when the share was 90.2 percent. Public Distribution System (PDS) It is now well recognised that, to ensure food security, not only adequate foodgrains should be available, but the poor should have sufficient means to purchase food. The capacity of the poor to purchase food can be ensured in two ways – either by raising their incomes or through supplying foodgrains at subsidised prices. While the employment generation programmes attempt the first solution, the PDS is the mechanism for the second option. The PDS is a target group strategy to alleviate poverty, and it is extremely important for Bihar 212

where incidence of poverty is very high. Four essential commodities distributed through PDS outlets are — wheat, rice, sugar and kerosene oil. The social background of PDS dealers is presented in Table 7.8. The total number of PDS dealers is 42,141. The share of backward and extremely backward castes among the dealers is about 37.0 percent, that of scheduled castes 16.4 percent, and general castes 19.4 percent. The distribution of PDS dealers by their social background in different districts is presented in Table A 7.4 (Appendix). The ownership pattern of PDS outlets at the district level is nearly the same as in the state level. Table 7.8 : Social Background of PDS Dealers Social Background of PDS Dealers

No of PDS Outlets

Percentage Share

2014

2015

2014

2015

Scheduled Caste

6857

6891

16.3

16.4

Scheduled tribes

323

327

0.8

0.8

Backward Caste

12445

12463

29.9

29.6

Extremely Backward Caste

3068

3109

6.8

7.4

Minority

3036

2812

7.1

6.7

Women

3387

3361

7.7

8.0

Women Self Help Groups

202

209

0.5

0.5

Other Self Help Groups

118

105

0.4

0.2

Co-operative Society (Ex-Army Personnel)

4579

4494

10.7

10.7

Handicapped

177

180

0.3

0.4

General

8259

8190

19.4

19.4

Total

42451

42141

100.0

100.0

Source : Department of Food and Consumer Protection, GOB

Till 2012-13, PDS was implemented under three schemes, namely (i) BPL, (ii) Antyoday and (iii) Annapurna. After the enactment of National Food Security Act, February 2014, the PDS is run under two schemes — (1) Antyoday – providing 35 kgs of foodgrains per month to extremely poor BPL families (21 kgs of rice and 14 kgs of wheat) and (2) Priviledge Household (PHH) scheme — in which eligible members of a family are provided 5 kgs of foodgrains each month (3 kgs. of rice and 2 kgs. of wheat). These foodgrains are provided at a subsidised rate — Rs. 3 per kg. for rice and Rs. 2 per kg. for wheat. As per Socio Economic Caste Census (SECC) survey list, 7.60 crore persons are being presently provided with the subsidised food grains in Bihar. The operational details of PDS in Bihar for the last five years 2010-11 to 2014-15 are presented in Table 7.9. It shows that the lifting of both wheat and rice under Antyoday scheme has been close to 100 percent during the last five years. Under PHH scheme, the lifting percentage was less than 100 percent for both wheat and rice up to 2012-13. But, during the last two years, it has been close to 100 percent. For wheat, liftings were 94.8 percent (2013-14) and 95.0 percent (2014-15). For rice, the liftings were 96.4 percent (201314) and 97.0 percent (2014-15). 213

Table 7.9 : Allotment and lifting of wheat and Rice for BPL and Antyoday (Figures in ‘000 tonnes) Wheat Year

Allotment

Lifting

Rice Lifting Allotment Percentage

Lifting

Lifting Percentage

Antyoday 2010-11

417.1

408.6

97.9

625.7

595.2

95.1

2011-12

420.2

395.7

94.2

630.2

573.5

91.0

2012-13

420.2

407.5

97.0

630.3

593.8

94.2

2013-14

385.2

378.9

98.4

577.7

573.0

99.2

2014-15

385.2

377.9

98.0

577.7

572.9

99.0

PHH 2010-11

610.8

559.6

91.6

1495.1

1217.0

81.3

2011-12

985.9

638.4

64.8

2187.7

1500.2

68.6

2012-13

1348.4

470.5

34.9

2022.6

1065.9

52.7

2013-14

1056.6

1002.1

94.8

1340.7

1291.9

96.4

2014-15

1056.6

1002.6

95.0

1340.7

1295.7

97.0

Note : Since February, 2014, Antyoday and PHH are the 2 PDS schemes running in the state. Source : Department of Food and Consumer Protection, GOB

The district-wise information on allotment and lifting of wheat and rice during 2014-15 are presented in Tables A 7.5 (Appendix). For both the schemes, inter-district variation in terms of lifting of foodgrains lies between 80 to 100 percent. For wheat, 5 districts (Sheikhpura, Kaimur, Gaya, Nawada and East Champaran) top the list with 100 percent lifting percentage. Similarly, for rice, 8 districts (Nalanda, Kaimur, Gaya, Nawada, Aurangabad, Sheikhpura, Lakhisarai and Buxar) have 100 percent lifting percentage. Intervention in the Public Distribution System 

From July, 2015 onwards, the distribution of foodgrains (both Antyoday and PHH) and kerosene is done through coupon.



There is now a provision for vehicles loaded with foodgrains being fitted with GPS for monitoring their movements. Currently 72.4 percent vehicles are fitted with GPS.



The action for end-to-end computerization is being taken for institutions like Bihar State Food Corporation (BSFC) and operation of PDS in order to strengthen the system. Under PDS computerization scheme, all supply offices of respective districts, subdivisions and blocks have been supplied with computers. One PMU (Project Management Unit) is being set up at the headquarters of the Department.

7.3 Panchayati Raj Institutions (PRI) The three-tier Panchayati Raj system constitutes the foundation on which stands the entire edifice of rural development in India. The basic philosophy of Panchayati Raj system is that the villagers themselves should think, decide and act for their own collective socio-economic 214

interests. The three-tier Panchayati Raj Institutions in Bihar consist of a Gram Panchayat at the lowest level, Panchayat Samiti at the block level, and Zila Parishad at the district level. The Chairpersons of the Gram Panchayat, Panchayat Samiti and Zila Parishad are called Mukhiya, Pramukh and Adhyaksha, respectively. In response to the 73rd constitutional amendment, Bihar Panchayati Raj Act, 2006 was enacted to strengthen the three-tier panchayat system in the state. Presently, there are 38 Zila Parishads, 531 Panchayat Samitis, and 8398 Gram Panchayats. There is a provision of 50 percent reservation for women, including the reservation in single posts (Table 7.10). Table 7.10 : Overviews of Panchayati Raj Institutions in Bihar Item

No.

Item

No.

Zila Parishad

38

Gram Kachahari Members

115057

Panchayat Samiti

531

Gram Panchayat Secretary

5237

Gram Panchayat

8398

Nyaya Mitra

8398 7474

Gram Panchayat Members

115057

Gram Kachahari Secretary

Panchayat Samiti Members

11501

Zila Panchayati Raj Officers

38

Zila Parishad Members

1162

Block Panchayti Raj Officers

528

Source: Department of Panchayati Raj, GOB

The state government has taken numerous steps to fortify the PRIs: 

With the objective of making the three-tier PRIs inclusive, responsive and accountable, the Bihar Panchayat Strengthening Project is being implemented in 1304 Gram Panchayats of 91 Blocks in 6 districts of the state (Patna, Nalanda, Bhojpur, Saharsa, Supaul and Madhepura). The total project cost is 120 million US Dollars (Rs. 667.44 crore at the exchange rate of Rs. 55.62 per US Dollar). An agreement in this context has been signed with the World Bank.



A sum of Rs. 1237.17 crore has been sanctioned for the construction of 1435 Panchayat Sarkar Bhawans. At present, 475 Bhawans have already been completed, and 211 Bhawans are in the last stage of completion. The rest is under process at different levels of execution.



The honorarium of Gram Katchahary Nyayamitra has been enhanced from Rs. 2500 to Rs. 7000 per month. For Gram Katchahary Sachiv, it has been enhanced from Rs. 2000 to Rs. 6000 per month.



The Training Modules have been prepared for elected representatives and functionaries of the Gram Panchayats. They mainly consist of subjects related to the functioning of Gram Sabha, Women Empowerment, Development Schemes, Financial Management, and Maintenance of Records and Cash Books.



To promote transparency and accountability in the functioning of PRIs, e-Panchayat Mission Mode Project is being implemented to enable the Gram Panchayats under National e-governance programme.



The representatives of the Panchayats were declared public servants under The Bihar Panchayat Raj Act, 2006. 215



A total amount of Rs. 4972.93 crore for the period 2010-11 to 2014-15 was released to the PRIs in light of the recommendation of the Thirteenth Finance Commission. This sum is utilised for the construction of Aanganwadi Centres, Plain Cement Concrete (PCC) Roads, approach roads linking settlements with a population of less than 250 to the main road, and renovation/maintenance of government buildings in block levels. On the recommendation of the Fourteenth Finance Commission, a grant of Rs. 21017.83 crore has been sanctioned to the PRIs.



A total amount of Rs. 2118.60 crore was provided to the PRIs for the period 2011-12 to 2014-15 under the Fourth State Finance Commission. A fund of Rs. 15.00 lakh, Rs. 1.00 lakh and Rs. 2.00 lakh was provided as untied grant to each Zila Parishad, Panchayat Samiti and Gram Panchayat respectively. Table 7.11 : Overview of Financial Progress of PRIs (Rs. crore) 2013-14 Heads

2014-15

Expenditure as Expenditure percentage of Outlay

Outlay

Outlay

Expenditure as Expenditure percentage of Outlay

Untied Grants under (BRGF)

745.61

555.14

74.4

936.17

379.44

40.5

MMGY

192.95

172.81

89.6

13.75

13.75

100.0

5.00

0.00

0.0

38.00

18.01

47.4

194.88

180.95

92.8

195.00

191.48

98.2

1.35

1.35

100.0

4.00

1.78

44.5

1139.79

910.25

79.9

1186.92

604.46

50.9

3.73

3.37

90.4

4.41

4.21

95.5

213.69

175.26

82.0

233.95

184.75

79.0

3.09

2.62

84.8

3.03

2.47

81.5

45.05

17.91

39.8

43.32

17.91

41.3

-

-

-

815.35

815.16

100.0

1005.09

50.54

5.0

1566.77

1061.04

67.7

1802.32

1533.25

85.1

2647.68

2075.36

78.4

3092.12

1793.13

58.0

Capacity Building Under (BRGF) Allowances for elected members of PRIs/G.K. Rent for G.K. Bhawan Total Establishment of Headquarter Establishment of District Panchayat Establishment of Training Institute Grants for Nyaymitra & G.K. Matching Grant to Zila Parishad 14th State Finance Commission Grant 13th Finance Commission Grant Total Establishment of Election Commission Headquarter Expenditure on Election of ZP/Panchayat Samiti & GP Secretariat Economic Services

2.16

1.99

92.1

2.10

1.77

84.3

10.00

3.42

34.2

20.00

4.46

22.3

1.39

0.10

79.1

1.27

1.03

81.1

Total

13.55

5.51

48.0

23.37

7.26

31.1

3801.02

2991.12

78.7

4302.4

2404.85

55.9

Grand Total

Source: Department of Panchayati Raj, GOB

216

Most of the schemes implemented by PRIs were financed by the Backward Region Grants Fund (BRGF). However, as per the recommendations of the Fourteenth Finance Commission, 8 Schemes supported by BRGF have been delinked from the support of the central government with effect from 2015-16. A total of Rs. 4302.41 crore was approved for the PRIs in 2014-15, with an increase of 13 percent over the preceding year (Table 7.11). The actual expenditure (Rs. 2408.85 crore) was 55.9 percent of the approved budget. In 2013-14, the financial performance was better, the extent of fund utilisation being 78.6 percent. 7.4 Land Distribution Land reform usually refers to redistribution of land, acquired from those households who have land in excess of the legal ceiling. More broadly, it includes regulation of ownership, operation, leasing, sales, and inheritance of land. In Bihar, around 90 percent of the population reside in villages and 70 percent workforce are employed in agriculture and related works. The proportion of the landless or near landless among the rural households is steadily increasing. In an agrarian economy like Bihar, where density of population is very high and distribution of land is very unequal, resulting to a large mass of the rural population below the poverty line, there are compelling economic arguments for land reform. Table 7.12 : Land Distribution Pattern (Holdings in ‘000 and Area in ‘000 ha) All Social Groups

Scheduled Castes / Tribes

Male

Female

Total

Male

Female

Total

12623 (90.9)

2101 (92.4)

14724 (91.1)

1718 (94.5)

334 (95.2)

2052 (94.6)

3128 (56.7)

534 (62.8)

3662 (57.6)

415 (70.7)

84 (75.0)

499 (71.4)

824

120

(5.3)

944 (5.8)

73 (4.0)

14

87

152 (17.9)

1181 (18.6)

92 (15.7)

18 (16.1)

Marginal Holders Number Area Small Holders Number Area

(5.9)

1029 (18.7)

(4.0)

(4.0)

110 (15.7)

Semi-medium Holders Number

365 (2.6)

Area

945 (17.1)

47

(2.1)

412 (2.5)

123 (14.5)

1068 (16.8)

24

(1.3)

3

(0.9)

27

(1.2)

61 (10.4)

7

(6.3)

68

(9.7)

Medium Holders Number Area

73

(0.5)

7

(0.3)

80 (0.5)

3

(0.2)

0

(0.0)

3

(0.1)

373

(6.8)

38

(4.5)

411 (6.5)

16

(2.7)

2

(1.8)

18

(2.6)

3

(0.0)

-

3 (0.0)

37

(0.7)

(0.4)

40 (0.6)

Large Holders Number Area

3

3

(0.5)

1

(0.9)

4

(0.6)

All Size Groups Holders Number Area

13888 (100.0) 5512 (100.0)

2275 (100.0) 16163 (100.0) 850 (100.0)

6362 (100.0)

1818 (100.0)

351 (100.0)

2169 (100.0)

587 (100.0)

112 (100.0)

699 (100.0)

Source : Agriculture Census 2010-11, Government of India Note : Figures in the parentheses denote percentage share to all size group holders

217

It is evident from Table 7.12 that no less than 91.1 percent of the farmers in Bihar have marginal holdings (less than 1 hectare). Their share in total land is only 57.6 percent. Another 5.3 percent of the farmers have small holdings (between 1-2 hectares) and their share in total land is 18.6 percent. The land endowment of farmers belonging to SC/ST is even poorer. The state government has been working with a vision of inclusive development. Towards this, in recent years, a special focus of the Department of Revenue has been to make a provision of 3 decimals of homestead land to each Mahadalit family who do not have such land. Such land has been distributed either through ‘parcha’ or through ‘settlement’. The operation ‘Bhumi Dakhal’ has also been launched to restore possession of land to those families who had been dispossessed of such land. Under the scheme of homestead land to Mahadalit families, 2.34 lakh families have already been covered against a target of 2.43 lakh families, involving 7061 acres of land, as on 2014-15. The achievement percentage registered against the target in 2014-15 is 96.1 percent, 6.5 percentage points more than what was achieved a year before. The Department sought to provide land to the target group by the following four land streams — (a) Gair Mazarua malik/khas land, (b) Gair Mazarua aam land, (c) land under Bihar Priviledged Persons Homestead Tenancy Act, 1947, and (d) in the absence of the above lands, Raiyati land purchased under the Bihar Raiyati Land Purchase Policy, 2010. The progress under this scheme is presented in Table 7.13. Table 7.13 : Progress under the Scheme of Provision of House Sites to Mahadalit Families 2013-14

2014-15

Number of Mahadalit families To be covered

Already covered

Percentage of achievement

Area of land distributed (acres)

Number of Mahadalit families Percentage of achievement

Area of land distributed (acres)

87167

101.1

2937.89

44347

92.5

1102.72

60207

106.0

1760.12

42324

80.4

1255.22

0

140

-

4.88

243613

234185

96.1

7060.83

To be covered

Already covered

Gair Mazarua Malik / Khas land 78398

80173

102.3

2644.62

86224

Gair Mazarua Aam land 47027

43167

91.8

1091.16

47963

Bihar Priviledged Person Homestead Tenancy Act 52902

57417

108.5

1685.32

56804

Purchase of Raiyati land 68735

40764

59.3

1220.01

52622

Other Sources –





– Total

247062

221521

89.7

6641.11

Source : Department of Revenue and Land Reforms, GOB

Along with this, the Department is also running other land-related schemes for SC, ST, BC and EBC households. Some of the important programmes of the Department are as follows: 218



Between 2005-06 and 2014-15, altogether 18192.71 acres of land was distributed among 47810 landless households, under Bhoodan Yagnya Act.



Under Privileged Persons Homestead Tenancy Act, altogether 5073.90 acres of land was distributed during 2005-06 to 2014-15 among 1,27,009 households with no homestead land.



During 2005-06 to 2011-12, altogether 3572.55 acres of land was distributed among 40,163 beneficiaries for agricultural and homestead purposes.



Abhiyan Basera was started in 2014 under Homestead Land Scheme, Tribal Sub-Plan Scheme and Mahadalit Vikas Yojna. Under this scheme, all those families which have not been given homestead land will be provided with 5 decimal homestead land. The survey work is complete for the purpose. Under this scheme, 27,631 families have been given homestead land, either 3 or 5 decimals.



The computerization of land records was initiated in the year 1998-99 with 10 percent central fund. In 2008-09, this scheme became a part of Centrally Sponsored Scheme of the National Land Records Modernization Programme (NLRMP).



Circle (Anchal) office is the main source of land records. Therefore, inter-connectivity is required among sub-division and Anchal level offices. Out of 534 Anchal offices, data entry operators have been deputed in 531 Anchal offices. Networking facilities have been made available to 495 Anchal offices;



During 2014-15, Revenue Court Camps were organized in 5556 places, in which 2,40,467 mutation applications were received. Out of these 1,82,037 mutation cases were disposed off in the Court Camp itself.



Up to March 2015, 30,483 acres of land has been acquired for various development projects of either central or state government.



Under Sampark Sadak Yojna, those villages and tolas which have no connectivity roads are being provided land for road construction. Till date, 415 schemes have been completed, connecting 674 villages/ tolas with roads under this scheme.

7.5 Disaster Management Although disaster management programmes cover both rural and urban areas, it is the rural areas which are more affected by different disasters. The disaster risks in Bihar are very high because of both natural and manmade disasters. These include flood, drought, earthquake, cyclones, heat waves, cold waves, fire or attacks by extremists. All these contribute to a situation where the population is seriously threatened. The important steps that the state government has taken for disaster management are presented below. 

The state government has provided 9 batallions of NDRF (National Disaster Response Force) at Bihta, Patna.



The state government has provided 75 acres of land for NDRF battalions. The NDRF battalion consists of specialized teams, trained to respond in various types of natural 219

and manmade disasters. There are a total 1149 personnel and 18 teams. Each team comprises 45 personnel, well equipped and trained for rendering effective response in any disaster situation. For effective search and rescue operations in North Bihar, a process has started to establish a regular company of NDRF in Supaul district. 

There is provision for Agriculture Input Subsidy, House Damage Subsidy, and Subsidy for cattle loss, in addition to Gratuitous Relief and cash dole for those who were affected by natural disasters.



A Standard Operating Procedure for flood, drought and drinking Water Crisis has been formulated.



There is provision for fund to be given as compensation to acquire the land for the rehabilitation of families displaced due to erosion caused by rivers.



For those who die in man-made disaster, there is a provision for ex-gratia payment and arrangement of free treatment of injured in hospitals.



The state government has organised training and awareness programme to enhance the capacity of government officials and community for disaster management. These include — training of divers for search and rescue during flood, training of volunteers, training for quick medical response, and training for motor boat driving. In addition, engineers, contractors, architects and masons are being trained to make Earthquake Resistant Building.



The state government has formulated ‘Bihar Scheme for Assistance to Farmers in Farm Distress, 2015’ to provide assistance to farmers and take measures to prevent farm distress. Under this scheme, there is a provision of an ex-gratia payment of Rs. 4.00 lakh to be deposited in the name of the next-of-kin of the farmer who has died. This creates a fund with a Nationalized Bank which provides monthly interest to the account holder as a financial relief.



The state government has provided 40 Fibre Reinforced Plastic Boats and 310 inflatable motor boats to 28 flood-prone districts.



An amount Rs. 149.58 lakh has been provided to Beltron for the procurement of 85 satellite phones. Till date, 27 satellite phones have been installed.



The state government has identified 9 flood-prone districts as the nodal districts to procure tents for mega relief camp. Till date, 4729 tents have been procured.



The State Disaster Response Force has been equipped with modern equipments like inflatable motor boat, life jacket, deep diving suits and latest equipments of search and rescue during flood.



In collaboration with All India Institute of Medical Sciences (AIIMS), Patna, two phases of training for Quick Medical Response Teams have been completed. Under this, 3 officials of Health Department and 2 Police personnel from each district were trained. A total of 328 personnel have been trained to operate during multihazard disasters. 220



A total of 830 GPS sets were made available to all Divisional Commissioners, District Magistrates, Police Superintendents, Sub-Divisional Officers, Sub-Divisional Police Officers and Block Development Officers.

Table 7.14 gives particulars of amount allotted for floods and cyclones for six years. The fund allocation was the highest in 2013-14. Table 7.14 : Amount Allotted for Floods and Cyclones (Rs. lakh) Programmes

2010-11

2011-12

2012-13

2013-14

2014-15







761.0

1397.8



1070.3

10279.2

1475.0

29357.0

12200.3

5569.3

Cash Dole Assistance

681.3

2976.7

1053.0

18792.9

9945.3

4023.4

Clothes & Utensils Distribution

525.0

39.0

171.7

109.1

334.0

5404.7

Supply of Drinking Water



35.5

59.7

41.8





Repair of Road & Bridges





260.2

280.2



14.5

923.2

1774.4

2061.4

3712.8

1830.3

1592.2





197.9

103.1

471.3

3893.7

Agricultural Inputs

209.0

1021.2

46.7

12116.2

3981.6

14389.4

Repair of Boats

276.9

684.3

584.7

713.5

633.0

460.4









500.0

500.0

50.5

21.9

0.0







226.0

275.0

107.1

349.6

363.4

245.3

3962.1

17107.2

6017.5

66337.1

31657.0

36092.8

Relief & Rescue instruments Supply of Dry Food

Evacuation Operation Repair of Public Buildings

Repair of Embankments and Irrigation system Human Medicines Assistance for Flood Accidents Total

2015-16*

Source: Department of Disaster Management, GoB; Note: *-Up to September 2015;

7.6 Environment The debilitating impact of climate change has broadened the sphere of discourse on environment much beyond the traditional concerns. The available evidence suggests that there is high probability of increase in the frequency and intensity of environment-related natural hazards due to climate change. Bihar is highly vulnerable to hydro-meteorological natural disasters, with North Bihar being highly flood-prone and South Bihar being highly drought-prone. Out of 9359.57 thousand hectares of Bihar’s geographical area, forests cover only 621.64 lakh hectares, which is 6.6 percent of the total geographical area. Among the districts, Kaimur, Jamui, Munger and West Champaran has substantial forest area. Valmiki Nagar National Park located there is well known for a Tiger Reserve. The forests provide a wide range of economic and environmental services, including wood and non-wood forest products, protection of other natural resources, and contribution to local climate control. The Department of Environment and Forests has taken the following steps to protect the environment in the state. 221



A new scheme of town beautification plantation ‘Har Parisar Hara Parisar’ has been started from 2014. Under this scheme 1.71 lakh plants have been planted in 234 campuses, against the target of 175 campuses. During the monsoon of 2015-16, another 1.82 lakh plants will be planted in 1114 campuses.



In 2014-15, the concerned Department has planted 604.21 plants, against the target of 148.20 lakh plants.



Under Mukhyamantri Niji Poudhshala Scheme for popular plants, the number of such plants raised were 507.66 lakh, benefiting 4314 people. In Mukhya Mantri Niji Poudhshala Scheme for other species, the numbers of tube plants raised were 282.50 lakh, benefiting 1461 people.



Tissue Culture laboratory-cum-production centres have been established at T.N.B. College, Bhagalpur and at Bharat Sevak Samaj College, Supaul.



The state government has established 8 high-tech nurseries in different forest divisions, each having the capacity to produce 1 lakh plants every year. E-nursery application and online monitoring is being done for all nurseries in the state.



‘Goraiya’ (Sparrow) as state bird, 'Genda' (Marigold) as state flower, 'Ox' as state animal and 'Peepal' as state tree have been notified.



Under Water (Pollution Prevention and Control) Act, 1974 and Air (Pollution Prevention and Control) Act 1981, 13,408 agreement orders have been issued by the Bihar State Pollution Control Board for proper functioning of industries in the state.



For disposal of medical waste of hospitals, nursing homes, clinics etc., incineration plants have been established in the state. A community medical waste treatment facility has started at Indira Gandhi Institute of Medical Sciences (IGIMS), Patna.



The draft plan is ready for the establishment of a wild life safari in Rajgir.



The state government has established automatic air quality monitoring centers in Patna, Gaya and Muzaffarpur and data of dirt, sulpher dioxide, nitrogen oxide, and carbon monoxide etc. are being shown through LCD.



For monitoring of water quality of rivers in the state, samples from 86 places are being collected regularly and analysed.



A five-storey building (Aranya Bhavan) has been constructed in Patna to ensure more efficient functioning of the Department of Forest and Environment.

222

APPENDIX

Table A 7.1 : Number and Percentage of Population below poverty line for Major States - 2011-12 Rural Percentage No. of of Persons Persons (lakh)

Urban Percentage No. of of Persons Persons (lakh)

Total Percentage No. of of Persons Persons (lakh)

Statewise Share of Poor in All India

Andhra Pradesh

10.96

61.80

5.81

16.98

9.20

78.78

2.9

Bihar

34.06

320.40

31.23

37.75

33.74

358.15

13.3

Chhattisgarh

44.61

88.90

24.75

15.22

39.93

104.11

3.9

Gujarat

21.54

75.35

10.14

26.88

16.63

102.23

3.8

Haryana

11.64

19.42

10.28

9.41

11.16

28.83

1.1

Jharkhand

40.84

104.09

24.83

20.24

36.96

124.33

4.6

Karnataka

24.53

92.80

15.25

36.96

20.91

129.76

4.8

9.14

15.48

4.97

8.46

7.05

23.95

0.9

Madhya Pradesh

35.74

190.95

21.00

43.10

31.65

234.06

8.7

Maharashtra

24.22

150.56

9.12

47.36

17.35

197.92

7.3

Odisha

35.69

126.14

17.29

12.39

32.59

138.53

5.1

Punjab

7.66

13.35

9.24

9.82

8.26

23.18

0.9

Rajasthan

16.05

84.19

10.69

18.73

14.71

102.92

3.8

Tamil Nadu

15.83

59.23

6.54

23.40

11.28

82.63

3.1

Uttar Pradesh

30.40

479.35

26.06

118.84

29.43

598.19

22.2

West Bengal

22.52

141.14

14.66

43.83

19.98

184.98

6.9

India

25.70

2166.58

13.70

531.25

21.92

2697.83

100.00

Kerala

Source: Planning Commission, GoI

223

Table A 7.2 : District-wise Progress under MGNREGS

Districts Patna Nalanda Bhojpur Buxar Rohtas Kaimur

Percentage share of SC Percentage of households households among with jobcards demanding households with jobcards employment 2012-13 2013-14 2014-15 2012-13 2013-14 2014-15 2012-13 2013-14 2014-15 5.59 5.40 4.95 46.07 42.60 25.50 10.69 14.43 0.00 3.98 4.08 3.93 46.84 46.00 37.64 15.2 13.00 10.22 3.24 3.43 4.24 48.47 44.94 33.95 25.16 19.96 7.40 2.41 2.36 2.34 20.65 28.54 31.92 16.43 19.61 15.36 3.70 3.78 3.45 49.24 48.95 32.83 21.54 19.94 15.75 2.20 2.10 1.99 46.69 43.97 39.78 16.78 18.52 15.82 No. of households issued jobcards (lakh)

Gaya Jehanabad Arwal Nawada Aurangabad

5.38 1.33 0.95 3.20 3.24

5.98 1.22 0.96 3.36 3.15

5.71 1.35 0.92 3.56 3.22

65.09 43.37 41.59 61.09 57.35

66.00 43.80 41.55 29.60 42.24

56.84 32.10 33.44 30.85 42.81

24.74 26.91 10.99 19.73 19.09

21.07 18.84 15.06 23.76 22.28

14.32 13.17 14.02 12.88 13.96

Saran Siwan Gopalganj

4.76 3.72 3.22

4.76 4.10 3.40

4.72 3.20 3.44

48.61 14.87 21.33

48.61 25.95 20.56

23.88 18.57 20.21

13.8 10.27 11.91

17.01 9.65 19.37

10.21 8.66 10.52

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

4.00 5.88 6.40 4.21 0.88 5.05

4.38 6.23 6.50 4.30 0.87 5.24

4.37 5.96 6.28 4.31 0.76 5.10

38.1 18.45 52 36.6 25.4 50.5

35.01 19.50 24.11 35.95 22.31 46.63

19.07 19.73 24.38 18.49 22.62 33.85

40.64 18.26 24.3 11.22 40.32 10.44

34.57 14.83 12.82 22.48 25.10 8.58

7.55 7.86 7.29 18.33 16.16 5.23

Darbhanga Madhubani Samastipur

4.78 6.91 5.46

4.67 5.39 5.33

4.73 5.60 4.46

38.27 40.64 51.81

30.42 23.88 49.46

27.40 23.29 30.68

9.59 14.76 10.65

9.91 14.67 9.79

9.77 12.50 10.98

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

3.11 1.82 0.95 1.47 2.37 2.24

3.11 1.81 0.96 1.45 2.44 2.02

3.13 1.75 0.90 1.50 2.47 1.84

22.29 22.88 49.59 32.87 31.92 35.98

23.92 19.26 47.28 24.25 31.54 33.07

23.66 17.09 38.81 23.93 26.38 26.71

14.8 11.23 21.21 21.29 23.23 11.44

19.40 8.27 23.49 16.21 26.30 15.28

12.00 7.39 12.94 11.12 16.50 14.09

Bhagalpur Banka

3.62 3.01

3.62 3.01

4.14 2.63

23.28 26.27

23.31 26.27

13.40 16.93

17.34 26.43

12.75 20.90

8.55 13.51

Saharsa Supaul Madhepura

2.98 3.14 3.00

3.09 2.90 3.02

3.15 2.91 3.14

23.71 30.31 58.63

23.58 25.16 27.44

23.43 23.61 26.82

27.21 14.75 31.69

22.59 17.50 20.39

13.69 11.67 13.16

Purnea Kishanganj Araria Katihar

4.32 2.62 4.34 3.98

4.49 2.52 4.41 2.98

4.17 2.56 3.96 4.35

30.22 11.86 29.48 23

23.65 12.52 29.68 15.96

17.91 10.30 18.29 15.57

26.11 12.89 16.83 28.71

20.81 15.62 12.43 35.73

11.55 12.02 12.12 21.64

132.82 131.22 38.52 33.53 26.30 18.5 Source: Department of Rural Development, GOB

17.67

11.23

Bihar

133.49

(Contd...)

224

Table A 7.2 : District-wise Progress under MGNREGS

Districts

Patna Nalanda Bhojpur Buxar Rohtas Kaimur Gaya Jehanabad Arwal Nawada Aurangabad

Household getting 100 days Percentage share of women of employment as Persondays of employment in total employment percentage those obtaining generated (lakh) generated employment 2012-13 2013-14 2014-15 2012-13 2013-14 2014-15 2012-13 2013-14 2014-15 8.32 3.21 0.00 28.57 28.24 0.00 33.78 35.08 0.00 10.71 9.45 9.28 24.83 25.19 17.93 35.41 39.18 43.69 2.26 2.19 4.97 21.77 13.77 8.66 24.99 25.75 26.34 8.48 6.63 4.46 17.18 19.83 10.08 5.03 18.45 29.38 3.88 1.78 1.76 25.44 23.86 13.41 13.35 19.03 21.02 8.76 7.70 7.31 14.94 18.25 10.61 17.15 19.54 23.76 5.73 5.41 2.26 1.15 5.93

7.54 5.50 4.79 1.94 9.47

3.59 5.68 1.19 1.28 4.77

80.15 11.96 5.38 20.36 34.55

73.75 8.03 4.95 22.43 28.23

24.47 5.22 2.33 10.68 14.15

35 33.95 30.11 28.7 30.01

39.46 37.98 33.94 41.94 25.61

46.22 41.91 33.79 46.62 29.37

Saran Siwan Gopalganj

6.17 7.05 10.99

7.87 5.07 8.54

1.96 0.91 2.20

30.21 21.37 19.92

31.82 15.95 26.77

9.49 5.24 8.96

18.25 18.48 25.72

22.17 21.87 31.41

26.90 24.52 33.84

W. Champaran

15.19

4.17

6.19

51.89

39.34

11.97

24.65

30.96

30.22

E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

32.27 4.01 0.78 8.8 7.43

6.16 4.67 4.91 3.84 6.75

5.25 1.98 0.62 1.28 2.11

82 45.03 14.25 15.25 25.15

40.99 32.44 26.54 8.66 17.05

16.73 11.22 12.64 3.32 6.21

27.3 31.65 33.62 40.95 17.3

32.35 33.69 34.09 63.34 32.32

30.77 34.05 38.59 46.36 35.19

Darbhanga Madhubani Samastipur

3.46 2.33 0.74

0.84 2.54 3.82

2.29 2.01 4.52

31.43 31.14 16.74

14.69 18.82 25.36

12.55 14.11 13.27

39.18 36.61 31.1

41.29 40.63 37.83

47.35 42.55 42.41

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

7.5 4.74 3.49 4.51 5.53 1.73

4.30 1.26 4.31 5.12 9.19 2.16

3.95 0.99 1.55 6.17 3.24 0.59

21.66 7.88 8.72 12.16 24.09 8.5

21.88 3.74 9.48 9.04 31.77 10.22

10.46 2.23 2.79 5.17 13.69 3.21

49.79 29.8 36.97 37.78 38.44 39.04

56.90 27.31 40.98 38.20 39.28 41.85

57.90 32.19 41.91 42.13 40.54 44.59

Bhagalpur Banka

7.94 2.68

7.27 5.53

6.30 2.53

27.8 22.64

18.78 21.74

9.59 6.39

27.6 31.43

28.23 35.30

32.66 33.05

Saharsa Supaul Madhepura

0.75 3.38 2.08

1.52 4.03 9.38

0.72 1.87 1.62

22.08 14.77 20.56

22.04 17.81 24.13

10.98 6.81 9.34

34.14 35.74 32.98

47.18 36.26 32.99

46.67 36.31 41.33

Purnea Kishanganj Araria Katihar

2.35 4.62 5.17 2.06

1.85 3.22 2.83 2.28

0.57 0.94 0.78 1.53

37.33 13.88 27.93 25.91

27.11 14.81 16.99 31.15

6.56 4.03 5.90 12.32

29.71 26.1 23.37 41.99

35.89 37.85 27.46 39.74

37.23 29.05 32.10 39.47

Bihar

6.36

29.93

34.35

37.32

4.82 2.98 965.41 845.65 352.73 Source: Department of Rural Development, GOB

(Concluded)

225

Table A 7.3 : District-wise Financial Progress under MGNREGS 2012-13 Districts Patna Nalanda Bhojpur Buxar Rohtas Kaimur Gaya Jehanabad Arwal Nawada Aurangabad Saran Siwan Gopalganj W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

2013-14

2014-15

Fund Fund Percentage Fund Fund Percentage Fund Fund Percentage utilised available of available utilised of available utilised of (Rs. lakh) (Rs. lakh) utilisation (Rs. lakh) (Rs. lakh) utilisation (Rs. lakh) (Rs. lakh) utilisation

8483.48 7079.36 5825.38 4578.28 6343.87 3396.66

7202.50 6105.99 4479.08 4188.07 5788.42 2909.07

84.9 86.3 76.9 91.5 91.2 85.7

11853.06 6566.57 4967.73 6637.79 6960.18 4835.37

8862.71 5450.92 4015.12 6044.22 5850.29 4140.54

74.8 83.0 80.8 91.1 84.1 85.6

7843.51 4497.36 3218.07 3769.32 3722.30 2843.98

4780.65 3358.61 2550.89 2992.20 2835.96 1891.42

61.0 74.7 79.3 79.4 76.2 66.5

16975.38 13884.31 3034.63 2590.51 1158.17 996.37 4545.27 4254.13 7783.19 6892.84

81.8 85.4 86.0 93.6 88.6

12581.51 10565.25 2433.85 2043.24 1218.62 869.81 6126.21 5763.42 7963.25 6964.95

84.0 84.0 71.4 94.1 87.5

8242.24 1978.71 785.13 3506.65 4691.81

6603.10 1629.92 558.27 3135.82 3782.96

80.1 82.4 71.1 89.4 80.6

7565.55 4198.52 5099.57

92.2 68.4 83.9

3700.93 3528.56 3551.96

2862.50 1846.65 2646.78

77.3 52.3 74.5

10310.79 9102.82 13863.29 12395.14 10209.51 7853.13 7097.75 5331.33 3011.25 2400.19 5744.74 4265.81

88.3 89.4 76.9 75.1 79.7 74.3

4314.50 7231.62 5350.32 5471.16 1742.87 3153.50

2875.61 5386.39 2843.37 4131.44 1256.22 2543.24

66.6 74.5 53.1 75.5 72.1 80.6

7503.52 5277.10 4204.58

6792.58 4172.42 3264.85

90.5 79.1 77.7

10613.48 9324.19 15187.15 13068.54 14405.87 8427.26 3899.43 2681.58 3667.29 3120.50 6773.51 6048.59

87.9 86.1 58.5 68.8 85.1 89.3

8208.64 6138.80 6080.87

Darbhanga Madhubani Samastipur

8797.67 7766.45 6809.46

7275.67 6724.60 5092.79

82.7 86.6 74.8

5609.34 6828.00 9194.47

4165.53 5144.51 6881.90

74.3 75.3 74.8

4610.72 3448.77 4979.42

2657.44 2443.23 3567.43

57.6 70.8 71.6

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

5777.86 1734.37 1887.53 3512.66 4707.88 2163.46

4468.88 1317.25 1749.01 3191.08 4447.80 1841.44

77.3 76.0 92.7 90.9 94.5 85.1

7047.15 1554.41 2356.33 3355.21 7789.22 3020.05

5772.54 1179.81 2153.83 2910.39 6120.78 2643.87

81.9 75.9 91.4 86.7 78.6 87.5

4928.22 1281.00 872.98 1922.34 2999.14 1420.04

4329.53 900.85 754.07 1768.87 2748.99 1108.67

87.9 70.3 86.4 92.0 91.7 78.1

Bhagalpur Banka

6524.64 5475.93

5610.46 5172.93

86.0 94.5

7594.90 6508.80

5678.26 5968.60

74.8 91.7

4661.73 2632.83

3314.54 2103.98

71.1 79.9

Saharsa Supaul Madhepura

3565.13 5632.62 6115.52

3067.65 3670.69 4243.05

86.1 65.2 69.4

4284.76 6134.89 5857.97

3652.68 3387.29 5170.86

85.2 55.2 88.3

4281.09 4433.83 2694.20

4267.45 2249.76 2202.08

99.7 50.7 81.7

Purnea Kishanganj Araria Katihar

8484.52 3316.94 7546.42 7213.31

7672.57 2848.86 5958.42 6567.94

90.4 85.9 79.0 91.1

8651.97 4659.40 5605.59 9315.09

6931.62 4152.36 3973.78 8452.63

80.1 89.1 70.9 90.7

4169.54 2222.55 4393.40 4698.46

3462.95 1648.41 2667.39 4252.98

83.1 74.2 60.7 90.5

237767.96 197112.88

82.9

248177.33 203123.77

81.8

143794.76 106960.62

74.4

Bihar

Source: Department of Rural Development, GOB

226

Table A 7.4 : District-wise Distribution of PDS Dealers by Their Social Background in Bihar Percentage of Dealers belonging to Helper Samiti/ Women PACS/ BC/ EBC Minority Women /Other Samiti General SHG of ExArmy Personnel 46.6 2.7 10.0 0.7 7.5 15.2 41.7 4.0 9.7 1.8 16.1 12.0 38.6 3.0 7.8 0.0 10.0 27.2 32.4 2.7 5.6 0.4 15.5 23.7 39.0 5.8 4.7 0.6 12.2 16.3 39.7 6.8 8.6 0.0 4.4 16.4

Number of Dealers

SC/ ST

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

3410 1459 1472 934 1601 866

17.4 14.7 13.4 19.7 21.5 24.1

Gaya Jehanabad Arwal Nawada Aurangabad

2396 630 382 1127 1345

30.6 17.9 27.6 14.3 18.0

32.9 29.6 28.8 33.2 35.3

5.4 4.3 4.3 4.8 5.3

5.9 8.6 5.2 12.8 4.3

1.2 0.0 0.3 0.0 0.2

10.5 15.4 19.9 14.1 10.7

13.6 24.2 13.8 20.8 26.2

100.0 100.0 100.0 100.0 100.0

Saran Siwan Gopalganj

2147 1771 1197

11.4 13.4 13.4

32.1 36.4 30.1

2.3 8.1 3.0

15.8 5.8 6.8

0.0 0.1 0.0

11.1 7.2 16.0

27.2 29.0 30.8

100.0 100.0 100.0

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

2197 2714 2548 1776 359 1879

20.4 13.2 18.1 17.6 16.6 15.5

31.3 38.1 30.9 41.5 36.3 38.7

12.0 9.0 4.0 6.7 2.4 1.7

6.3 5.1 9.1 6.7 6.6 6.9

0.0 0.3 0.6 0.2 0.0 0.5

13.1 10.3 12.3 13.2 12.5 15.4

16.9 24.0 24.9 14.1 25.6 21.4

100.0 100.0 100.0 100.0 100.0 100.0

Darbhanga Madhubani Samastipur

2117 2377 2267

11.8 19.4 19.7

31.2 36.9 35.3

11.1 7.3 2.5

9.8 5.3 5.3

0.4 1.2 0.5

8.5 11.9 14.7

27.2 17.9 22.1

100.0 100.0 100.0

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

1433 782 351 555 922 886

27.3 8.4 13.2 12.0 19.8 16.8

27.3 48.1 28.5 32.6 34.3 52.0

4.3 5.7 4.5 2.5 3.4 3.6

11.9 9.8 5.4 10.8 4.3 8.4

0.0 0.0 0.8 0.3 0.0 4.8

4.6 12.5 16.9 13.8 13.3 6.3

24.5 15.6 30.6 28.1 24.9 8.2

100.0 100.0 100.0 100.0 100.0 100.0

Bhagalpur Banka

1712 1080

15.0 15.3

46.1 46.2

10.4 7.8

7.3 8.7

0.0 2.1

10.4 6.4

10.8 13.4

100.0 100.0

Saharsa Supaul Madhepura

1036 1131 1070

17.1 11.8 14.0

40.8 46.8 48.0

9.3 8.8 4.9

4.1 4.2 7.2

0.5 0.0 0.2

16.1 15.1 16.9

12.1 13.3 8.9

100.0 100.0 100.0

Purnea Kishanganj Araria Katihar

1525 925 1491 1601

18.6 15.2 15.7 18.5

36.1 38.7 31.5 38.3

16.2 15.9 25.0 10.7

9.7 13.9 13.7 3.6

1.9 0.2 0.0 0.0

7.1 8.7 7.1 13.1

10.3 7.4 7.0 15.9

100.0 100.0 100.0 100.0

Bihar

55471

17.1 37.0 6.7 8.0 0.5 11.3 Source: Department of Food and Consumer Protection, GOB

19.4

100.0

Districts

227

Total

100.0 100.0 100.0 100.0 100.0 100.0

Table A 7.5 : District-wise Allotment and Lifting of Wheat and Rice under NFSA during (2014-15) ('000 qntls) Wheat Districts

Rice

Allotment

Lifting

Patna Nalanda Bhojpur Buxar Rohtas Kaimur

864 499 397 215 408 229

821 487 393 214 407 229

Lifting Percentage 95.0 97.6 99.0 99.7 99.7 100.0

Allotment

Lifting

1297 748 596 322 612 343

1267 748 593 322 610 343

Lifting Percentage 97.7 100.0 99.6 100.0 99.7 100.0

Gaya Jehanabad Arwal Nawada Aurangabad

723 163 123 393 404

723 158 122 393 393

100.0 97.0 99.3 100.0 97.3

1084 244 185 590 606

1084 234 176 590 606

100.0 96.0 95.3 100.0 100.0

Saran Siwan Gopalganj

639 540 395

636 505 376

99.5 93.4 95.0

958 810 593

931 754 556

97.1 93.1 93.8

W. Champaran E. Champaran Muzaffarpur Sitamarhi Sheohar Vaishali

767 978 933 721 135 711

732 978 851 685 126 648

95.4 100.0 91.2 95.0 93.7 91.2

1151 1467 1400 1082 202 1066

1112 1389 1313 1055 198 996

96.7 94.7 93.8 97.5 97.9 93.5

Darbhanga Madhubani Samastipur

882 986 944

728 906 905

82.6 92.0 95.9

1322 1478 1415

1101 1359 1317

83.2 92.0 93.1

Begusarai Munger Sheikhpura Lakhisarai Jamui Khagaria

651 262 108 175 327 369

634 259 108 173 321 331

97.4 99.1 100.0 98.6 98.0 89.6

976 393 162 262 491 554

928 367 162 262 484 508

95.1 93.4 100.0 100.0 98.6 91.7

Bhagalpur Banka

560 427

494 355

88.3 83.2

839 640

740 551

88.2 86.0

Saharsa Supaul Madhepura

431 472 443

394 450 406

91.3 95.2 91.7

647 708 664

559 668 651

86.3 94.4 98.0

Purnea Kishanganj Araria Katihar

701 390 644 654

686 380 627 606

97.9 97.5 97.3 92.7

1052 585 966 981

984 583 906 911

93.6 99.7 93.7 92.9

Bihar

19660 18637 94.8 29489 27919 Source: Department of Food and Consumer Protection, GOB

___________ 228

94.7

CHAPTER VIII URBAN DEVELOPMENT

The low level of urbanisation in Bihar has been a major concern and promoting urbanisation and preparing towns for their important economic role is a challenge here. The present growth momentum of the state cannot be sustained if urbanisation is not promoted. The rapid economic growth in Bihar during the last decade has entailed a significant structural change in the economy; between 2004-05 and 2014-15, the share of primary sector in GSDP has decreased from 32 to 19 percent, and the combined share of secondary and tertiary sector has consequently increased from 68 to 81 percent. However, this structural shift has not been accompanied by increased urbanisation of the population; between 2001 and 2011, the level of urbanisation in Bihar has increased only marginally, from 10.4 to 11.3 percent. In the near future, therefore, it is likely that the level of urbanisation in Bihar will increase substantially, either through expansion of boundaries of existing towns or through large villages growing into towns. In this perspective, a well managed urbanisation is extremely necessary to ensure that the present growth momentum of Bihar economy is continued. 8.1 Level of Urbanisation With the level of urbanisation at 11.3 percent, Bihar is the least urbanised state in India; for the entire country, the urbanisation level stands at 31.2 percent (Table 8.1). Bihar accounts for 8.6 percent of India’s total population, but it has only 3.1 percent of its urban population. During the decade of 2001-11, the urban population in Bihar grew annually at 3.1 percent and 31 lakh people were added to the urban population; but it made little difference in the level of urbanisation. The progress of urbanisation in Bihar is largely driven by fertility rates which is very high in the state. Therefore, the largest contributor to the increase in urban population is due to the demographic growth of existing urban population, the next important contributor being the change of status for some habitations, from rural to urban. The component of migration of people from rural to urban areas is very small in the state. This pattern of urbanisation in Bihar has continued for long. Between 1961 and 2011, the level of urbanisation has increased by only 3.9 percent — 7.4 percent in 1961 to 11.3 percent is 2011. In contrast, during the same period, the level of urbanisation has increased by 13.4 percent in the entire country — 17.8 percent in 1961 to 31.2 percent in 2011. An important implication of this trend is that, while the future demographic changes in the country will be increasingly driven by urban population, it will continue to be driven by rural population in Bihar. Bihar’s urban system is characterised by the primacy of towns with population ranges of 1-10 lakhs and 50 thousand - 1 lakh (Table 8.2). Patna, as the capital city, has maintained its primacy in the state’s urban system, as it accounts for 14 percent of the state’s urban population, followed by Gaya which has a share of 4 percent. The huge gap in the distribution of urban population in 229

towns of different sizes indicates that, in many cases, the towns are not able to generate the desired economies in scale. Table 8.1 : Trend of Urbanisation in Bihar

Year

Urban Population (Bihar) (lakh)

Level of Urbanisation Bihar

India

1961

25.8

7.41

17.84

1971

32.4

7.70

19.75

1981

50.1

9.59

22.89

1991

64.9

10.05

25.50

2001

86.6

10.43

27.82

2011

117.6

11.29

31.16

Source : Census of India, RGI, GOI

Table 8.2 : Distribution of Urban Population by Size Class of Town Population (million)

2001

2011

2001

2011

Growth Rate of Population

>1 million

1

1

1.43

1.68

1.6

100,000 - 1 million

18

25

3.42

5.07

3.9

50,000 - 100,000

19

29

1.37

1.88

3.1

20,000 - 50,000

67

75

2.10

2.49

1.7

10,000 - 20,000

19

22

0.31

0.33

0.8

5,000 - 10,000

6

38

0.04

0.26

18.2

< 5,000

-

9

-

0.03

-

130

199

8.68

11.76

3.06

Number Size Class

Total

Source : Census of India, RGI, GOI

Regionally, Bihar’s economy is highly uneven and stands sharply divided between North and South, not just in terms of Per Capita Income, but in terms of other indicators as well (Table 8.3). North Bihar, comprising 21 districts, contributes about 42 percent of GSDP of the state, as against its population share of 63 percent. In terms of urbanisation, the level of urbanisation is only 7.7 percent in North Bihar, compared to 17.4 percent in South Bihar. One of the reasons for low urbanisation in Bihar is that the access to basic urban services is very low in its urban areas in terms of water supply, sewerage system, and drainage system (Table 8.4). As regards water supply, only 16.7 percent of the urban households have tap water within 230

premises. For access to piped sewer connected to latrines, the coverage is only 7.2 percent. Similarly, household connected to covered drainage is only 29.9 percent of total urban households. With the exception of Patna district, other districts in Bihar have very low coverage of basic urban services. For example, in 14 out of 38 districts, less than 5 percent of households have access to tap water within premises; in another 12 districts, the coverage of tap water within premises is between 5-10 percent. According to an assessment of basic urban services, undertaken as a part of the Asian Development Bank’s Bihar Urban Development Investment Programme (BUDIP), per capita water supply in the 24 large towns of Bihar is only 28 lpcd (litres per capita per day), only about one-fifth of the national average. This level is highly critical in all towns, except Patna, Muzaffarpur and Danapur. In terms of access to sewerage, it is observed that urban Bihar lags substantially behind the national average. Similarly, more than half the towns in Bihar are highly critical with respect to management of solid waste. Table 8.3 : North-South Divide in Bihar Indicator

North Bihar

South Bihar

Share of Total Population

63.0

37.0

Share of Urban Population (%)

43.1

56.9

Urbanisation Level (%)

7.7

17.4

Share in GSDP (%)

42.3

57.6

Per Capita Income (Rs.) (2004-05 Prices)

10,318

18,295

Households with Piped Water (%)

8.3

24.6

Households with covered Drainage (%)

19.6

38.7

Households with Electricity (%)

56.4

47.9

Table 8.4 : Access to Basic Urban Services in Bihar by Size Class of Towns (2011)

Households with tap water within premises (%)

Households with access to piped sewer connected to latrines (%)

Households connected to covered drainage (%)

>1 million

50.8

19.6

61.3

100,000 – 1 million

13.1

6.1

29.2

50,000 – 100,000

8.7

3.3

18.8

20,000 – 50,000

4.1

3.0

16.3

10,000 – 20,000

5.1

2.9

13.1

5000 – 10,000

3.1

3.4

17.3

<5000

5.1

2.1

12.9

Bihar Urban

16.7

7.2

29.9

City Size

Source: Census of India 2011

231

In this background, the following sections discuss some of the critical challenges faced by Bihar for its urban development programme and the interventions by the state government. 8.2 Expenditure on Urban Development The actual expenditure for urban development was Rs. 1391 crore in 2014-15, compared to Rs. 1196 crore a year before (Table 8.5). There has been a steady increase in such expenditure in last five years, growing annually at 40.1 percent. The utilisation of the disbursed amount has also been very high at more than 90 percent in recent years, except in 2011-12 when it was 88 percent. The disbursed amount as a percentage of total budgeted amount was rather low at 43 percent in 2010-11, but this share has increased steadily to reach 74 percent in 2014-15. But even now, the expenditure on urban development constitutes barely 1 percent of the total expenditure of the state government. The state government proposes to enhance this share in coming years. Apart from financial constraint, the urban development programme in Bihar also suffers from manpower shortage, both in terms of number and professional skills. This is yet another area which will receive more attention of the state government in future. Table 8.5 : Budget Allocations, Disbursements and Expenditure for Urban Development

Year

Budget Allocation (Rs. crore)

2010-11

Disbursement (Rs. crore)

Expenditure (Rs. crore)

1070.00

458.80

(42.9)

448.04 (97.7)

2011-12

1095.00

449.18

(41.0)

395.20 (88.0)

2012-13

1164.24

853.64

(73.3)

843.68 (98.8)

2013-14

1870.54

1248.60

(66.8)

1196.14 (95.8)

2014-15

2592.81

1907.13

(73.6)

1391.43 (93.0)

CAGR

25.0

47.3

40.1

Source : Department of Urban Development and Housing, GOB

8.3 Urban Development Programmes At present, there are several programmes for urban development, with funding from both central and state governments. These programmes are — (a) JnNURM, AMRUI and Smart City Missions, (b) Swachh Bharat Mission, (c) Namami Gange Scheme, (d) Support Programme for Urban Reforms (SPUR), (e) Urban Housing, and (f) Urban Transport. (a) JnNURM, AMRUT and Smart City Mission This programme was the first major flagship programme of the central government for improving urban infrastructure in Mission Cities. Now, the JnNURM has been replaced by the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), announced in 2015. This programme had two sub-components – Urban Infrastructure and Governance (UIG) and Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT). 232

Urban Infrastructure and Governance (UIG) : There were two Mission cities in Bihar – Patna Urban Agglomeration (Patna, Danapur, Khagaul, Phulwarisharif) and Bodhgaya. Under this component, Rs. 75608 lakh were sanctioned for implementation of Solid Waste Management (SWM) projects, water supply projects in Patna, Danapur, Khagaul and Phulwarisharif, and water supply and sewerage project in Bodhgaya. Of these projects, the Khagaul water supply scheme has been completed and Phulwarisharif Water Supply Scheme is near completion. The details of the sanctions is presented in Table 8.6. Table 8.6 : Programmes under Urban Infrastructure and Governance Name of Scheme

Estimated Cost (Rs. lakh)

SWM for Danapur, Khagaul, Phulwarisharif

1155.81

Khagaul water supply scheme

1315.43

Danapur water supply scheme

6896.45

Phulwarisharif water supply scheme

6896.45

Patna water supply scheme

42698.00

SWM for Patna

3695.40

Bodhgaya water supply scheme

3355.72

Bodhgaya sewerage scheme

9594.34

Total 75607.60 Source : Department of Urban Development and Housing, GOB

Urban Infrastructure Development for Small and Medium Towns (UIDSSMT) : Under this scheme, 11 projects were taken up during the period 2006-07 to 2008-09, with a total expenditure of Rs. 26113.56 lakh. The details are presented in Table 8.7. Table 8.7 : Details of Urban Development Schemes under UIDSSMT Name of Scheme

Estimated Cost (Rs. lakh)

Road and drainage construction in Fatuha

759.00

Road and drainage construction in Murliganj

1144.00

Road and drainage construction in Narkatiyaganj

4713.00

Road and drainage construction in Rosera

2921.32

Road and drainage construction in Barbigha

1573.00

Road and drainage construction in Bhabua

1088.00

Road and drainage construction in Bakhtiyarpur

511.00

Road and drainage construction in Lalganj

1263.00

Road and drainage construction in Chakia

1285.00

Water supply scheme in Muzafffarpur

9872.25

SWM in Arrah

983.99

Total

26113.56

Source : Department of Urban Development and Housing, GOB

233

Under AMRUT (new name of JnNURM), 25 ULBs of Bihar, each with a population of at least 1 lakh, are eligible for funding for water supply, sewerage, stormwater drainage, development of parks and green spaces, and urban transport. These ULBs are Patna, Gaya, Bhagalpur, Muzaffarpur, Darbhanga, Purnea, Arrah, Begusarai, Katihar, Munger, Chhapra, Danapur, Saharsa, Hajipur, Sasaram, Dehri, Siwan, Bettiah, Motihari, Bagaha, Kishanganj, Jamalpur, Jehanabad, Buxar and Aurangabad. The funding share between the central and state government for ULBs with population up to 10 lakhs will be 50:50, and for Patna, the funding share will be 30:70. The central government has provided for Rs. 6642.00 lakh in 2015-16 for this programme. The programme design has a strong bias towards ULBs stressing on decentralisation, which requires the ULBs to prepare State Level Investment Plans (SLIP) that are to be consolidated into State Level Annual Action Plan (SAAP). The Action Plan should be approved by a High Powered Committee at the state level for being submitted to the central government. The ULBs are required to submit the SLIPs on-line, direct to the central government. The relevant ULBs have all finalized the SLIPs and, at state level, the SAAP has also been finalised. Another new programme launched in 2015 is the ‘Smart City Mission’, under which 100 Smart Cities are to be developed in India over the next 5 years. Each city will receive Rs. 100 crore annually for 5 years for programme implementation and the state government will provide a matching grant for this purpose. These 100 cities were chosen through a specially designed competition. Biharsharif, Bhagalpur and Muzaffarpur in Bihar have qualified to the list of 100 cities at the end of the Phase 1 competition and received Rs. 2 crore each to design their Smart City Plan of Action. The required work is going on. In Phase 2 of the competition, the 100 Smart City Plans will compete to qualify for funding, with 20 cities to be chosen in 2015-16. The Smart City Mission is designed to improve the overall quality of life in cities through intelligent solutions and urban planning interventions. (b) Swachh Bharat Mission This is the flagship sanitation programme launched by the central government in 2014. The key components are as follows: Construction of individual toilets to eliminate open defecation : Bihar has a target of reaching 1.27 lakh urban families in 141 ULBs in 2015-16. The central government will contribute Rs. 4000 and the state government Rs. 8000, for each family to receive a total grant of Rs. 12,000 for this purpose. The central government has released Rs. 37.72 crore to Bihar till date. An amount of Rs. 22.49 crore remaining from the erstwhile Integrated Low Cost Sanitation (ILCS) programme is to be transferred for this purpose. Improving solid waste management practices : In 2015-16, an amount of Rs. 117.39 crore has been allocated for this purpose under the state plan. Funds are to be utilised for door to door collection of solid waste, purchase of equipment for solid waste management, purchase/development of land for landfill sites, setting up composting/waste to energy plants, cleaning of drains, and appointing additional manpower for cleaning public places. 234

Construction of community toilets : The target is to construct 6881 units in 141 ULBs of Bihar. The estimated cost is Rs. 5.30 lakh per unit, of which 40 percent will be the central government contribution. The state government will allocate Rs. 70,667 per unit, with the rest being beneficiary contribution. Construction of public toilets : It is estimated that each city receives about 5 percent floating population on a daily basis comprising people who come on work. To cater to the sanitation needs of this group, Bihar proposes to construct 1 public toilet per 600 of floating population. There are no norms with respect to central and state share for this programme. The ULBs are expected to explore Public-Private-Partnership (PPP) for this purpose. It is estimated that each unit will be constructed at a cost of Rs. 14 lakh. It is proposed that advertising rights will be allowed on three walls and user charges will also be collected. The ULBs are to provide land for this purpose, free of cost. (c) Namami Gange Scheme This programme of the central government targets towns located along the river Ganga, aiming for cleaning and rejuvenation of the river. There are 32 towns identified in Bihar for implementation of this scheme. The Detailed Project Reports (DPR) are being prepared in these towns for Interception and Diversion Sewers, Solid Waste Management, River Front Development, Crematoria, Dhobi Ghats, and Community Toilets. A summary of the status of this scheme is presented in Table 8.8. Table 8.8 : Details of Namami Gange Scheme

Number of Towns

Estimated Cost of Projects (Rs. crore)

Solid Waste Management

17

538.19

Sewerage network

14

2950.66

Interception and Diversion of Drainage including STP

16

1707.97

River Front Development

8

1250.21

Crematoria

11

85.58

Dhobi Ghats and Community Toilets

11

88.79

Sectors

Total

6621.33

Source : Department of Urban Development and Housing, GOB

In addition to the above, the central government had approved 4 sewerage projects (Buxar, Hajipur, Begusarai, Munger) and the Patna River Front Development projects under this Scheme in 2010. These projects are under implementation. The sewerage project cost Rs. 441.86 crore and the Patna River Front Development projects costs about Rs. 250 crore. Although Detailed Project Reports (DPR) for solid waste management and sewerage network have been prepared 235

under this scheme, there has been a revision in the funding approach for these projects. Since these projects impact the whole town and not just the river, the central government has now proposed to fund these through the Ministry of Urban Development and not the Namami Gange Scheme. (d) Support Programme for Urban Reforms (SPUR) The Department for International Development (DFID), UK is supporting the state government in implementing the Support Programme for Urban Reforms (SPUR) in 28 largest ULBs in the state. One of the key intervention areas is the provision of basic infrastructure in 1402 slums of these towns in Phase 1. The infrastructure being provided includes internal paved roads, drains, individual toilets, hand pumps and solar street lights at an estimated budget of Rs. 402 crore, of which Rs. 90 crore is the DFID share and the remaining is the share of the state government. The slum infrastructure works are being implemented by ULBs on the basis of plans that have been prepared by the community institutions in slums. The current focus is on the construction of individual toilets in slums through community-based construction. About 50,000 toilets are to be constructed in these slums at a cost of Rs. 20,000 per unit. The progress with respect to provision of the other basic infrastructure has been relatively slower because of the focus on toilet construction. (e) Urban Housing Access to housing for both the poor and the general urban population is a key focus area. According to estimates of the Union Ministry of Housing and Urban Poverty Alleviation, there has been an increase in the shortage of urban housing in Bihar from 3.5 lakh units in 2001 to 11.9 lakh units in 2012. The Bihar State Housing Board is the lead agency for housing schemes in Bihar. The following schemes have been sanctioned by the Board across the state in 2013-14: (i)

Construction of 1054 flats at an estimated cost of Rs. 475.82 crore on 16.50 acres in Dalpatpur, Arrah.

(ii)

Construction of 1596 flats on 10.10 acres in Sector 5, Patna and construction of commercial complex on 4.20 acres at Lohi Nagar in Patna.

(iii)

Construction of commercial complexes on 1.41 acres in Sector L of Lohia Nagar, Patna and on 0.55 acres in Hanuman Nagar, Patna.

(iv)

Redevelopment of business units in Bahadurpur Sector 3 and 6, Patna on 74.41 acres.

(v)

Reconstruction of old rental flats, EWS (Economically Weaker Section) Housing, slum housing in Sector S,T, and U in Lohia Nagar, Kankarbagh located on 32.35 acres.

(vi)

Redevelopment of old layout plan on 21.75 acres at Damodarpur, Muzaffarpur to construct 1496 flats and business units.

(vii)

Construction on 12,696 flats and business units on 125 acres, located in Katari and Mustafabad, Gaya. 236

(viii) Construction of 272 flats on 3.75 acres at an estimated cost of Rs. 101.55 crore at Barari, Bhagalpur. All the above projects include a mix of flats for EWS (Economically Weaker Section), LIG (Low Income Group), MIG (Middle Income Group) and HIG (High Income Group), as well as commercial complexes. Most of these projects are also to be implemented on PPP (PublicPrivate-Partnership) basis. The central government programmes that targeted the housing for the urban poor are described below. Basic Services for Urban Poor : This programme was a sub-mission under the JnNURM. The cenral government had sanctioned 22,372 housing units for the urban poor in Patna Urban Agglomeration towns and Bodhgaya. Under this initiative, 18 projects at Rs. 709.98 crore were to be completed by Housing and Urban Development Corporation (HUDCO). Till date, only 480 housing units have been constructed and handed over to beneficiaries. The remaining funds were returned to the central government, which was subsequently allocated to the state government as the central share under the Integrated Housing and Slum Development Plan (IHSDP). Integrated Housing and Slum Development Plan (IHSDP) : This programme aims to improve the living conditions of the slum dwellers, through both construction of new units as well as rehabilitation of existing dilapidated units. The central government sanctioned 32 projects in 28 towns from 2006-07 to 2011-12 with a ceiling cost of Rs. 80,000 per unit till 2009 and Rs. 1,00,000 per unit thereafter. The progress under this plan is presented in Table 8.9. Work is going on in all the towns with 19,020 units under various stages of completion and 9603 units already completed. Table 8.9 : Progress of Work under IHSDP Progress Indicators

Number / Amount

Total Towns Covered

28

Total Sanctioned Scheme

32

Total Sanctioned Dwelling Units

28,623

Total Project Cost

Rs. 75,788.79 lakh

Total Central Share

Rs. 38,078.89 lakh

Total State Share

Rs. 37,709.41 lakh

Central Share Released

Rs. 23,350.66 lakh

State Share Released

Rs. 22,416.95 lakh

Source : Department of Urban Development and Housing, GOB

237

Rajiv Awas Yojana (RAY) : This central government programme was launched in 2011, which aimed at creating a ‘slum-free India’. All 38 district headquarters have been selected under this programme in Bihar and 29 Detailed Project Reports (DPR) have been prepared for 27 cities. These ‘Slum-free City Plan of Action’ has been approved at the state level. The Central Sanctioning and Monitoring Committee has sanctioned 7 DPRs for Patna, Darbhanga, Katihar and Purnea to be implemented in phases. The progress under this scheme is presented in Table 8.10. Table 8.10 : Progress of Work under Rajiv Awas Yojana (RAY) Indicators

Number / Amount

Total Towns Covered

5

Total Sanctioned Scheme

7

Total Sanctioned Dwelling Units

11,276

Total Project Cost

Rs. 45,465.40 lakh

Total Central Share

Rs. 29,771.86 lakh

Total State Share

Rs. 15,693.51 lakh

Central Share Released

Rs. 11,450.73 lakh

State Share Released

Rs. 3,464.60 lakh

Source : Department of Urban Development and Housing, GOB

The various programmes that targeted housing for the urban poor have been subsumed under the ‘Housing for All’ programme launched in 2015. The goal of this programme is to provide a pucca dwelling unit of 30 sq.m. area to all. The central government has allocated Rs. 87.46 crore in 2015-16 for this programme. The central share is Rs. 1.50 lakh per beneficiary and the state government will contribute Rs. 50,000 per beneficiary. (f) Urban Transport The JnNURM also sanctioned funds for the purchase of 1098 buses for 19 towns of the state. Consequently, 40 buses have been operationalised in Patna and 25 additional buses procured. The state government also set up the ‘Bihar Urban Transport Services Limited’ for this purpose. The status of procurement of buses for urban areas is shown in Table 8.11. Table 8.11 : Progress of Work for Urban Transport Total Project Cost

Implementing Agency

Amount released

Purchase of buses in Patna

Rs. 3990.00 lakh

BUIDCo

Rs. 1995.00 lakh

Purchase of buses in Bodhgaya

Rs. 675.00 lakh

BUIDCo

Rs. 67.50 lakh

Scheme

238

The state government has established the ‘Patna Metro Corporation’ for developing and implementing the metro rail project in the city. The Feasibility Report has been prepared and the Detailed Project Report (DPR) is under preparation. 8.4 Urban Poverty As the world becomes increasingly urban, poverty too assumes an urban character. The urban poverty is multi-dimensional, relating to various forms of deprivations and risks. The urban poverty is first manifested in the lack of access of the urban poor to basic services, such as water, sanitation, shelter and livelihood. Secondly, as is becoming increasingly evident, this deprivation also relates to health, education, social security, and empowerment. Table 8.12 : Poverty Line and Poverty Ratios (2004-05 and 2011-12) Unit

Poverty Line (Rs) 2004-05

Poverty Ratio

2011-12

2004-05

2011-12

Bihar Rural

433

778

55.70

34.06

Urban

526

923

43.70

31.23

Total





54.40

33.74

India Rural

447

816

42.00

25.70

Urban

579

1000

25.50

13.70

Total





37.20

21.92

Source : Planning Commission

Bihar has made impressive strides in accelerating growth and reducing poverty. The incidence of overall poverty as measured by the headcount ratio has declined from 54.4 percent in 2004-05 to 33.7 percent in 2011-12 (Table 8.12). The number of the poor has also decreased from 40.2 million to 37.7 million during the same period. However, poverty in the urban areas continues to be very high and it is a matter of concern for the state’s development policy. Despite an increase in the GSDP, including its non-primary sector component, the numbers of the urban poor have continued to rise with their share in the total having escalated from 5.3 percent in 2004-05 to 7.1 percent in 2011-12. Table 8.13 : Slum Population in Bihar (2001 and 2011) Slum Population Number (in lakh)

As Percentage of Urban Population

As Percentage of India’s Slum Population

22

5.16

5.95

1.37

85

12.37

10.52

1.89

Year

Number of Towns

2001 2011

Source: Census of India 2011

239

Table 8.14 : Attributes of Slums in Bihar and India Attributes

Bihar

India

Good

37.5

57.7

Liveable

43.4

37.1

Dilapidated

8.8

3.9

Permanent

54.2

76.8

Semi-permanent

17.6

15.9

Temporary, serviceable

6.7

3.1

Temporary, non-serviceable

10.4

2.0

Unclassifiable

0.8

1.0

Tap from treated source

10.5

64.5

Tap from untreated source

3.5

8.6

Covered well

0.7

0.8

Uncovered well

2.4

2.2

Hand pump

68.9

12.5

Latrine connected to pipe sewer

3.9

24.2

Septic Tank

35.6

31.0

Open defecation 38.1 Source: Census of India 2011

18.7

Condition of Housing

Type of Structure

Source of drinking water

Access to latrines

The ‘slum settlements’ represent the most visible manifestation of urban poverty in India and reflect serious dimension of social exclusion. The Census (2011) puts the slum population at 12.4 lakh (10.5 percent of Bihar's urban population) in 85 towns reporting slums. Between 2001 and 2011, Bihar's slum population has more than doubled from 5.2 lakh in 2001 to 12.4 lakh in 2011 (Table 8.13). The Census reports that slums are generally an urban phenomenon confined to large cities; however, in Bihar, the largest proportion of slum population is reported from towns in the population range of 20-50 thousand, followed by towns in the population range of 50 thousand - 1 lakh. Further, the number of cities reporting slums in Bihar has risen considerably during 2001-2011. The condition of slums of Bihar compared to the other states shows that they are in a far worse situation (Table 8.14). The phenomena of urban poverty began receiving its due attention in the course of implementation of the SPUR programme. Some of the key interventions undertaken include a physical survey and GIS mapping of slums in the 28 largest ULBs, community mobilisation, and formation of Self-Help Groups (SHG). The SHGs had a focus on thrift and credit facilities to extend livelihood options. They were also encouraged to federate at slum, city and state level. The interventions initiated under SPUR received a boost with the initiation of the National Urban 240

Livelihoods Mission (NULM) of the central government that is being implemented in 42 towns of the state. The programme components and achievements are described below. (a)

Employment through Skills Training and Placement (EST&P) : This component deals with providing market based skill training to BPL youth and their placement and tracking for 1 year. The Department has identified a panel of Skill Training Providers and contracted 34 agencies for this purpose. Additionally, 16 trades and 20 modules have been identified. This list has been shared with the ULBs who also directly approach the agencies for training. The ULBs have also completed the identification of 36,062 beneficiaries for training. Progress has also been made for certification of the courses by the National Council of Vocational Training (NCVT). The progress under this component in 2015-16 is presented in Table 8.15. Table 8.15 : Progress of Training Work under EST&P

Annual Target

Number of persons undergoing training

Number of persons who completed training

SC

15750

736

2293

ST

2250

27

360

Others

57000

2193

14401

Population Groups

Total 75000 2956 17054 Source : Department of Urban Development and Housing, GOB

(b)

Support to Urban Street Vendors (SUSV) : This module aims at organising street vending activities in 42 ULBs through biometric survey of vendors and issue of I-cards, facilitating their linkages to welfare schemes. The progress under this component in 2015-16 is presented in Table 8.16. Table 8.16 : Progress of Work under SUSV Annual Target

Progress

No. of cities for Vendor Survey

42

42

No. of cities which completed Street Vendor Survey

42

9

No. of street vendors identified in surveyed cities

1,00,000

33847

No. of street vendors issued ID cards

1,00,000

0

15,000

5186

No. of financial literacy camps for street vendors

42

23

No. of training programmes for street vendors

125

39

No. of street vendors to be trained under Capacity Building

10,000

738

No. of Credit Cards to street vendors

10,000

0

Programme/ Monitoring Parameter

No. of basic Saving Accounts opened for street vendors

No of street vendors to be linked to insurance scheme 5000 Source : Department of Urban Development and Housing, GOB

241

160

(c) Capacity Building and Training (CBT) : Under the programme of NULM, a Project Management Unit has been constituted and City Level Mission Management Units have been mobilised. The progress in this context is presented in Table 8.17. Table 8.17 : Progress of Work under NULM Programme Monitoring Parameter

No. of Experts to be positioned

Positioned by end of year

State Level Mission Management Unit (SMMU)

6

6

City Level Mission Management Unit (CMMU)

89

89

Community Organisers (CO) 120 96 Source : Department of Urban Development and Housing, GOB

Till date, 2 training programmes have been conducted for SMMU experts, 5 training programmes for CMMU experts, and 2 training programme for Community Organisers, the last one covering all the 96 officers who have been appointed. (d)

Scheme of Shelter for Urban Homeless (SUH) : This module aims at providing temporary shelter for the urban homeless, either through the construction of new accommodation or renovation of existing ‘rain baseras’. A model design and estimate has been prepared for the construction of a 50 bed shelter, approved at a cost of Rs. 49.33 lakh. The progress under this component is presented in Table 8.18 and Table 8.19. Table 8.18 : Progress of Work under SUH New Construction

Refurbishment

Total target for shelters

38

76

Total no. of proposals received

38

0

Total no. of project proposals approved

38

0

1874.54

760.00

Programme Monitoring Parameters

Total cost of Approved Project Proposals (Rs. lakh)

Total capacity of the approved project proposals 1900 2594 Source : Department of Urban Development and Housing, GOB Table 8.19 : ULB-wise Progress of Work under SUH Status of SUH Construction started Tender published Land identified and under process of tender Land identified and No objection certificate (NOC) to be taken from concerned authority. Land yet to be identified

No. of ULB 01 02 11

03

21

Name of ULB Bhagalpur Biharsarif, Katihar Muzaffarpur, Purnea, Buxar, Navada, Hajipur, Sheohar, Madhubani, Chhapra, Saharsa, Lakhisarai, Banka Arrah, Sitamarhi, Araria

Patna, Nalanda, Darbhanga, Begusarai, Gaya, Munger, Motihari, Bettiah, Samastipur, Gopalganj, Siwan, Kishanganj, Madhepura, Supaul, Jehanabad, Aurangabad, Arwal, Jamui, Khagaria, Sasaram, Bhabhua Source : Department of Urban Development and Housing, GOB

242

(e)

Social Mobilisation and Institutional Development (SM&ID) : This component aims at formation of Self-Help Groups (SHGs) in urban slums, their financial inclusion and federating them. The NULM also entitles graded SHGs to a one-time Revolving Fund of Rs. 10,000. There are more than 5000 SHGs formed in the 42 towns, with more than 1500 of them receiving the Revolving Fund. The task of federating these SHGs at the town and state level has also been initiated. The progress under this component in 2015-16 is presented in Table 8.20. Table 8.20 : Progress of Work under SM&ID Annual target

Achievement

No. of Self-Help Groups (SHGs)

5000

1193

No. of Area Level Federations formed & registered

160

247

No. of City-Level Federations formed

30

15

3000

962

Programme / Monitoring Parameters

No. of SHGs given Revolving Fund

(2015-16)

No. of trainings conducted for SHGs

121

No. of SHGs undergone training

354

No. of Financial Literacy Camps organized

42

0

No. of basic service bank deposit account opened

15000

4256

Life Insurance (Janshree Bima Yojana)

10000

7023

No. of Proposals received by SULM

42

25

No. of CLCs established (with manpower)

5

0

Source : Department of Urban Development and Housing, GOB

(f)

Self-Employment Programme (SEP) : This component aims at facilitating the establishment of individual or group enterprises for livelihood improvements. In this context, structured training is being provided to the SHGs and their bank linkages are being facilitated. The targets for this programme is being shared with the State Level Bankers Committee. Further, discussions with Rural Self-Employment Training Institute (RSETI) are at an advanced stage to facilitate the required training.

The overall financial progress under each of the above components in 2015-16 is summarised in Table 8.21. 243

Table 8.21 : Financial Allocation for Programmes under NULM (2015-16)

Programmes EST&P

Annual Allocation (Rs. lakh) 9,041.25

SUSV

203.40

CBT

951.81

SUH

1,379.40

SM&ID

1,218.55

SEP

225.00

Total Administration and other expenses (2% of Total) Information, Education and Communication (3% of Total)

13,019.41

Total

13,670.38

260.39 390.58

Source : Department of Urban Development and Housing, GOB

8.5 Municipal Finance The Bihar Municipal Act, 2007 lists out the set of taxes which the municipalities may levy for raising revenues. The Municipalities may additionally levy user charges for water supply, drainage and sewerage, solid waste management, parking of vehicles, stacking of materials/ rubbish on public streets for construction work, and other specific services as mentioned in the Act. The fees and fines are also leviable on the sanction of building plans, issue of municipal licenses for various non-residential uses of lands, issue of death and birth certificates and the like. The Municipalities are also given the power to levy a surcharge on taxes, user charges and fines. Recognizing that internally generated revenues may not be sufficient to meet the financial requirements of municipalities, the Bihar Act provides for a grant-in-aid for them out of the consolidated fund of the state, based on the recommendations of the State Finance Commission (SFC). Presently, the status of municipal finances in Bihar is weak. The SPUR project has conducted detailed analysis of the status of municipal finances in the 28 largest ULBs of the state. On an average, these ULBs raised Rs. 589 per capita in 2012-13, which comprised 25 percent of own revenues and the balance is accounted for by state devolutions, assignments and grants-inaid (Tables 8.22, 8.23 and 8.24). The municipal expenditure on a per capita basis was estimated to be Rs. 387 in the same year (2012-13). Due to lack of capacity, the 28 ULBs are unable to spend even the limited resources at their disposal for maintaining services. In 2012-13, the 28 ULBs posted a surplus of revenues over expenditure, surplus being 34.2 percent of the total revenue receipts. Further, nearly three244

fourths of expenditure is reported to be on establishment; expenditure on operations and maintenance accounted for just 14 percent of the total expenditure. Table 8.22 : Indicators of Municipal Finances for 28 Largest ULBs (Rs. lakh) Indicators Total Revenue Income Self-Generated Income (a) Holding Tax (Including Water, Latrine Tax and Cesses) (b) Other Taxes (c) Non-Taxes Assigned Income (a) Stamp Duty (b) Professional Taxes Revenue Grants Other Income / Receipts (Excluding Capital Grants)

2012-13 40540.93 10324.97

2013-14 49837.94 12388.52

2014-15 49576.62 11499.58

6470.66

7753.00

7449.78

1381.35 2472.95 8774.49 8771.68 2.81 14328.81

1416.74 3218.78 11627.90 10554.40 1073.50 17414.95

601.49 3448.31 15184.80 13807.68 1377.12 22698.10

7112.66

8406.57

194.13

Capital Grants Received

20230.84

25406.90

32349.89

Total Revenue Expenditure Establishment Expenditure Programme Expenditure Operation / Maintenance Expenditure Finance and Interest Expenditure Other Revenue Expenditure (Including Depreciation and Finance charges)

26665.11 20333.95 1907.43 3768.09 131.47

29457.12 21383.63 2955.89 3198.85 202.52

31418.53 22766.51 2979.71 4855.01 236.84

524.18

1716.23

580.46

3.49

29.40

-

2862.18 2862.18 -

2862.18 2862.18 -

2862.18 2862.18 -

-

-

-

Total Assets Fixed Assets (Capital Expenditure) Short Term Assets (Excluding Inventory) (a) Cash (b) Bank (c) Investment (d) Deposits (e) Accounts Receivables

30656.73 9379.34 21277.39 20602.05 675.34

42783.16 18333.56 24449.60 22916.89 1532.71

48574.28 19618.49 28955.79 24756.44 4199.35

Provision of Bad / Doubtful Receivables (Assumed 30 percent of Receivables)

202.60

195.51

937.33

Current and Other Liabilities (Including Arrears, Estimated Expenses, Pensions, and Dues to Suppliers or Goods and Services already Supplied)

5754.49

5544.86

5544.86

Arrears of Salary and Pension Number of Property Tax Assesses Number of Regular Employees Number of Temporary / Contract Employees Estimated Population (lakh) Per Capita Revenue Expenditure

5544.86 8.33 0.04 0.02 30.44 876

6064.13 5.60 0.04 0.02 31.04 949

5798.73 6.17 0.04 0.03 31.04 1012

Total Debt Servicing (Finance charges, plus Repayment of Capital) Total Outstanding Debt (a) Loans from Financial Institutions / Government (b) Bank Overdrafts (c) Bonds Accumulated Surplus / Equity

245

Per Capita Capital Expenditure 308 591 Source : Department of Urban Development and Housing, GOB Table 8.23 : Key Indicators of Financial Status of 28 Largest ULBs Key Indicators

632

2012-13

2013-14

2014-15

Operating Ratio (Revenue Income/ Revenue Expenditure)

1.52

1.69

1.58

Self-Generated Income/ Revenue Income (Percentage)

25.5

24.9

23.2

Self-Generated Income/ Establishment Expenditure (Percentage)

50.8

57.9

80.5

Per Capita Revenue Expenditure (Rs.)

876

949

1012

Per Capita Capital Expenditure (Rs.)

308

591

632

Source : Department of Urban Development and Housing, GOB Table 8.24 : Income from Internal Sources for 28 Largest ULBs (Rs. crore) Sources of Income Property Tax

Other SelfGenerating Income

Total

2008-09

36.08

15.78

51.86

2013-14

77.45

56.19

133.64

2014-15

75.33

49.06

124.39

2015-16 (Estimates)

130.74

69.26

200.00

20.2

23.5

20.3

Year

CAGR

Source : Department of Urban Development and Housing, GOB

There has been a decline in the volume of state devolutions, assignments and grants-in-aid in the recent years, along with an increase in the own tax revenue of municipal bodies. However, the municipalities continue to rely on state devolutions and grants which are estimated to be threefourths of the total revenue receipts of municipalities. The role of State Finance Commissions is very important in the context of municipal finances, as transfers to the ULBs are made as per recommendations of the State Finance Commissions. The Fourth State Finance Commission had recommended that 7.5 percent of the state’s own tax revenue should be devolved to the local bodies, of which the share of urban local bodies will be 30 percent. The share of each ULB will be decided using three criteria — Population (weightage 60 percent), Geographical Area (weightage 20 percent) and Number of BPL Households 246

(weightage 20 percent). The priority areas for spending of devolved amounts were — Abolition of Manual Scavenging, Urban Roads, Water supply, Public Health and Sanitation (including Public Conveniences), Parking Places, and Street Lighting. The ULBs were also to be given grants-in-aid from the state government — Rs. 5.00 per annum (Patna), Rs. 1.00 crore per annum (Municipal Corporations) and Rs. 0.50 crore (Municipal Councils). According to the Fourteenth Finance Commission, Bihar's share of grants-in-aid for municipalities will amount to Rs. 2275 crore for the period 2015-20. It will consist of a basic grant of Rs. 2141 crore, and Rs. 535 crore as performance-linked grant for a period of four years. This will imply an annual amount of Rs. 428 crore as basic grant, and Rs. 134 crore as performance-linked grant. An important feature of the performance grant is that the procedure for the disbursal of the performance grant will need to be designed by the state government. It will be given to those municipalities which — (a) have audited annual accounts that relate to a year not earlier than two years preceding the year for which the performance grant is being sought, and (b) have registered an increase in own revenues over the preceding year. In addition, municipalities claiming performance grant will need to publish the service level benchmarks relating to basic urban services and put them in public domain. At present, the legal framework is already in place to enhance ‘own resources’ of ULBs in the state. With the appointment of capable staff in the ULBs, they are expected to raise more of own resources. 8.6 Institutions for Urban Development Bihar has 141 Urban Local Bodies – 11 Municipal Corporations, 42 Nagar Parishads and 88 Nagar Panchayats. The Urban Development and Housing Department at the state level has overall responsibility for urban development in Bihar. The Department is supposed to provide the policy framework and strategic guidance to the next lower level institutions, including specialised agencies in the implementation of policy. At state level, there are a number of specialized agencies of the Department, with some overlaps between the justification of these agencies. These agencies are : (a)

Bihar Urban Infrastructure Development Corporation (Implementation of city level infrastructure works)

(b)

Bihar State Housing Board (Lead agency for all housing related interventions)

(c)

Bihar Rajya Jal Parshad (Design and implementation of water supply schemes)

(d)

Urban Engineering Cell (Located within the Department) (Approval and monitoring of small infrastructure projects)

(e)

Town Planning Department (Preparation of Master Plans and their implementation) 247

As part of the SPUR programme, several key interventions have been made to improve the urban governance framework in the state. These interventions include : (a)

A significant number of Acts, Rules, Guidelines have been enacted to put in place the legal framework for urban development and governance. The most significant of them is three amendments to the Bihar Municipal Act 2007 to make it more relevant.

(b)

The institutional structure for urban development programmes has been extended and modified. The key interventions include the creation of the Bihar Urban Infrastructure Development Corporation as the lead agency for implementation of urban infrastructure works, and restructuring the Bihar Urban Development Agency to enhance its relevance as the lead agency for implementation of urban poverty programmes. Further, the Directorate of Municipal Administration has been formed for effective management of ULBs and provide additional technical support as required.

(c)

The necessary work is ongoing for ‘Right-sizing the ULBs’. This is especially relevant given that the current staff positions in ULBs have been frozen for the last two decades. The majority of sanctioned positions is no longer relevant in light of the reforms agenda that ULBs have adopted, after the enactment of the 74th Constitutional Amendment. The staff shortage is a key impediment to urban governance.

(d)

The necessary work is also ongoing for framing Municipal Cadre Rules in line with other states. This will ensure transparency and accountability of municipal staff and bring in efficiency in staff performance.

(e)

The Training and capacity building of staff is a key focus area. With assistance from the SPUR programme, the ‘Centre for Urban Governance’ has been established in Bihar Institute for Public Administration and Rural Development (BIPARD). This Centre has already taken the lead in training the newly appointed Executive Officers of the ULBs.

(f)

In order to improve decision making and enhance municipal accountability, an Management Information System (MIS) Cell is operational. This Cell regularly collects information from ULBs on physical and financial progress of various programmes. Monitoring formats have been developed and are used for monthly monitoring of ULB performance.

(g)

A Centralised Grievance Redressal Cell is operational to make it easier for citizens to register complaints. The functioning of this Cell is based on a Citizen’s Charter that defines timelines and responsibilities to address complaints regarding service delivery. This Cell undertakes regular follow up till closure of a complaint.

248

(h)

To help decision making, GIS Base Maps have been prepared in the 28 ULBs under the SPUR project. The reconciliation of detailed property survey (made with the help of the maps) and the database generated with existing municipal records is underway in 12 ULBs. The property survey has been completed in Katihar and Purnea and there has been a twoand-a-half times increase in the property tax base as per the new records. Katihar and Purnea corporations are the first two towns in the state which have also completed unique house numbering and number plate fixing.

(i)

The Department is also implementing an ambitious E-Municipality project to enhance transparency and good governance. In Phase 1, the following modules are being rolled out in the municipal corporation towns — (a) Self-Assessment for Property Tax, (b) Births and Deaths Registration, (c) Right to Information (RTI), (d) Building Plan Approval, and (e) ULB websites. In the next Phase, the intervention will be extended to all the Nagar Parishads. The interface includes the integration of a payment gateway so that the citizen’s need for physical presence in ULBs is reduced.

The state has already prepared a Bihar Urban Agenda, 2031. This document has a detailed roadmap for building urban infrastructure across all towns at levels consistent with standards, defined by the Ministry of Urban Development of the central government. The roadmap is focused on development of urban-led growth centres as well as creation of institutional capabilities to undertake the urban reform agenda. _____________

249

CHAPTER IX BANKING AND ALLIED SECTORS

During 2014-15, the Indian economy registered a modest recovery in growth, along with declining inflation and reduced current account deficit due to the falling global oil prices. Despite this, as the RBI observed in its report on the ‘Trend and Progress of Banking in India’ for 2014-15, the performance of the Indian banking sector remained subdued. It was manifest especially in relation to bank credit, the growth of which had dipped to a single-digit figure during the year. While the profits of the banking sector improved, it was more due to reduction in the growth of operating expenses, rather than a rise in the growth of income. The return on assets (RoA), the indicator of financial viability of the banks, did not show any improvement in 2014-15. The declining trend of the last few years regarding profitability of Public Sector Banks (PSBs) as well as their RoA continued in 2014-15. With increase in Non-Performing Assets (NPA), the asset quality of banks deteriorated, particularly for the PSBs. The Regional Rural Banks (RRBs) also witnessed a deceleration in profit growth. Certain reform measures were initiated for the banks, as part of the seven-point ‘Indradhanush’ package in August 2015, following the recommendations by the Committee to Review the Governance of Boards of Banks in India. This led to significant changes in selection of higher management positions to imbibe professionalism and efficiency in the decision making process. Further, it also led to a fresh plan for recapitalisation of the PSBs to the tune of Rs 70,000 crore till 2019, following a performance-cum-need-based approach. These reforms were expected to strengthen the weakening capital positions of PSBs in order to enable them to adopt the Basel III framework. A framework for accountability for PSBs was also introduced based on some Key Performance Indicators (KPI), both quantitative and qualitative. During 2014-15, spill over from external shocks also impacted the financial markets in India, though capital flows remained largely buoyant. The macroeconomic fundamentals of the economy improved moderately with continuing fiscal consolidation, narrowing of current account deficit and lower rate of inflation. However, the banking sector in general and PSBs in particular suffered due to reduced growth in credit, reflecting a slowdown in industrial growth and poor growth of earnings in the corporate sector. All these impacted the performance of the banking sector in Bihar as well. As the Annual Report of RBI stressed, “With fiscal consolidation firmly underway and with buoyant business optimism, the stage is now set for unshackling stalled investments and for boosting new capital spending in order to accelerate the pace of growth. Drawing on the experience of 2014-15, it is now time to implement an agenda to take the economy to higher growth in 2015-16 and over the medium-term.” This is especially important as the outlook for growth has shown signs of improvement. Following the initiatives launched by the central government in the form of ‘JAM trinity’ and the National Mission for 250

Skill Development, self-employment activities including start-up business and other programmes like Digital India and Make in India need to be strongly incentivised for better realisation of their employment potential. The PSBs play a major role in financial inclusion, particularly in the rural sector. In the near absence of a capital market, the financial sector in a state like Bihar is almost entirely driven by the Scheduled Commercial Banks (SCB). Any adverse development in the international and national banking scenario affecting the SCBs is, therefore, bound to impact the financial sector in Bihar as well. The financial system is driven by the flow of finances through intermediaries like banks, insurance companies, securities firms, mutual funds, finance companies and pension funds, all the institutions that channel resources from those who save to those who invest. However, the analysis of the financial sector in Bihar will take into account only banking institutions functioning in the state which includes — (i) Banks that include Commercial Banks, Regional Rural Banks, Cooperative Banks as well as other Cooperative institutions, (ii) State financial institutions, and (iii) National financial institutions. 9.1 Banking Infrastructure Commercial Banks Table 9.1 shows the distribution of commercial bank branches in Bihar from 2010 to 2015 and their growth. In March 2015, 58 percent of the total of 6297 branches of commercial banks in Bihar were located in rural areas, compared to 61 percent in 2010. Following a record 638 branches opened during 2013-14, the next year saw only 389 new branches, with as many as 178 branches (46 percent) opened in rural areas, 96 branches (25 percent) in semi-urban areas, and 115 branches (29 percent) in urban areas. The growth in number of banks in 2014-15 was 6.6 percent, compared to 12.1 percent in 2013-14 which was the highest during the last six years. Table 9.1 : Distribution of Commercial Bank Branch Offices (2010-2015) Years (End March)

Total

Growth Rate

2010

4173

2011

Percentage distribution of branches by location Rural

Semiurban

Urban

All

9.6

61.2

21.3

17.5

100.0

4549

9.0

60.4

21.5

18.1

100.0

2012

4860

6.8

59.6

22.0

18.4

100.0

2013

5270

8.4

59.6

21.8

18.6

100.0

2014

5908

12.1

58.7

23.0

18.3

100.0

2015

6297

6.6

57.9

23.1

19.0

100.0

Source : State Level Bankers' Committee

As of March 2015, the private non-nationalised banks have 221 urban and semi-urban branches and only 18 rural branches. These banks obviously take advantage of the relatively higher purchasing power in the urban and semi-urban areas. Their location pattern does not serve the objective of financial inclusion. 251

From Table 9.2, it can be noted that Bihar accounted for only 4.8 percent of all the bank branches in the country in June 2015, though its share in country's population was about 8.6 percent. This share has nearly been the same over the past few years. Table 9.2 : Distribution of Branches of Commercial Banks among States

States

No. of branches

Percentage Percentage share in share in allall-India India branches population

Assam

2127

1.6

2.6

Bihar

6301

4.8

8.6

Gujarat

7286

5.5

5.0

Haryana

4440

3.4

2.1

Himachal Pradesh

1476

1.1

0.6

Jharkhand

2793

2.1

2.7

Karnataka

9478

7.2

5.0

Kerala

6220

4.7

2.8

Madhya Pradesh

6036

4.6

6.0

11896

9.0

9.3

Odisha

4448

3.4

3.5

Punjab

6084

4.6

2.3

Rajasthan

6484

4.9

5.7

Tamil Nadu

9923

7.5

6.0

Uttar Pradesh

15886

12.1

16.5

Uttarakhand

1931

1.5

0.8

West Bengal

7363

5.6

7.5

131694

100.0

100.0

Maharashtra

All India

Source : Statistical Tables Relating to Banks in India (2014-15) RBI

Cooperative Banks The data for the State and District Central Cooperative Banks are shown in Table 9.3. It emerges from the table that the number of State Cooperative Banks in the country as a whole increased by 82 in 2013, but decreased by 22 in 2014. Similarly, in Bihar, both the State Cooperative Banks as well as the District Central Cooperative Banks experienced contraction in 2014, with their numbers shrinking from 12 to 11 in respect of the former and from 311 to 277 in respect of the latter. The total number of Cooperative Bank branches in Bihar was 288 in 2014, compared to 323 in 2013 and 295 in 2012. 252

Table 9.3 : Number of Branches of State and District Central Cooperative Banks (As on March 31)

State Cooperative Banks State

District Central Cooperative Banks

Total

2012

2013

2014

2012

2013

2014

2012

2013

2014

Andhra Pradesh

24

37

36

571

577

334

595

614

370

Bihar

16

12

11

279

311

277

295

323

288

Gujarat

1

3

7

1191

1247

1234

1192

1250

1241

Haryana

13

14

13

594

621

604

607

635

617

Himachal Pradesh

175

197

190

187

205

219

362

402

409

Jharkhand

-

-

5

114

122

95

114

122

100

Karnataka

40

40

42

605

604

652

645

644

694

Kerala

20

24

20

670

703

701

690

727

721

Madhya Pradesh

20

25

25

835

856

838

855

881

863

Maharashtra

53

53

53

3728

3710

3721

3781

3763

3774

Odisha

14

15

14

323

339

315

337

354

329

Punjab

20

21

19

805

812

800

825

833

819

Rajasthan

16

17

16

414

444

425

430

461

441

Tamil Nadu

46

47

47

738

784

782

784

831

829

Uttar Pradesh

29

29

29

1350

1385

1336

1379

1414

1365

Uttarakhand

15

16

15

232

243

235

247

259

250

West Bengal

43

48

43

322

285

287

365

333

330

999

1081

1059

13302

13655

13246

14301

14711

14305

India

Source : National Federation of State Cooperative Banks Ltd. (NAFSCOB)

Regional Rural Banks (RRB) With the promulgation of Regional Rural Banks (RRB) Act of 1976, the regional rural banks came into existence. With equity holdings by the central government, the concerned state governments and the sponsoring banks in the proportion of 50:15:35, respectively, the RRBs provide a multi-agency approach for agricultural and rural credit in India. The data for RRBs in Bihar are shown in Table 9.4. At the end of September, 2015, Bihar had 2058 RRB branches; in September, 2014, the number was 1889. Of the three RRBs in Bihar, Uttar Bihar Kshetriya Gramin Bank alone accounted for 50 percent of the total RRB branches in the state.

253

Table 9.4 : Number of RRBs Branches in Bihar (As on September, 2015)

Banks

Rural

Number of Branches SemiUrban Urban

Total

Madhya Bihar Gramin Bank

570

75

31

676

Bihar Kshetriya Gramin Bank

243

92

15

350

Uttar Bihar Kshetriya Gramin Bank

759

236

37

1032

Total

1572

403

83

2058

Source : State Level Bankers’ Committee

The total rural deposits of all Scheduled Commercial Banks in Bihar stood at Rs 48,202 crore as of March 2014 (Table 9.5). Bihar accounted for about 6 percent of all rural deposits of the Scheduled Commercial Banks in the country in 2013-14; this ratio has remained unchanged during the recent years. Deposits in the savings bank constituted the bulk (65 percent) of the total rural deposits of Scheduled Commercial Banks in Bihar. Table 9.5 : Rural Deposits of Scheduled Commercial Banks by Type of Deposit (as on March, 2014) Current Savings Term Total No. of No. of No. of No. of No. of Branches Accounts Amount Accounts Amount Accounts Amount Accounts Amount (Rs crore) (Rs crore) (Rs crore) (Rs crore) (lakh) (lakh) (lakh) (lakh)

State Andhra Pradesh

3366

5.1

2067

325.3

17035

29.3

22339

359.8

41442

Bihar

3037

12.2

2298

237.3

31307

24.2

14597

273.7

48202

943

1.8

1001

71.2

9816

6.6

4818

79.5

15635

Gujarat

2320

2.6

1665

131.1

17138

27.0

29073

160.8

47876

Haryana

1400

5.4

1195

69.3

12243

6.8

10513

81.4

23952

Himachal Pradesh

1025

5.6

996

46.7

10541

17.7

17957

70.0

29494

Jharkhand

1231

1.7

876

102.3

11925

12.6

9835

116.6

22636

Karnataka

3056

4.8

2184

194.6

15574

28.9

23186

228.4

40944

425

0.6

287

29.6

3725

5.1

6632

35.4

10643

Madhya Pradesh

2174

3.3

1180

173.8

14972

15.2

11463

192.3

27615

Maharashtra

2924

4.0

2612

205.1

21428

20.6

23828

229.6

47868

Odisha

2124

3.1

1377

170.8

20790

22.5

14666

196.4

36832

Punjab

2161

12.3

1498

94.0

20781

17.1

27048

123.4

49326

Rajasthan

2380

5.6

1226

141.2

15694

16.1

13144

162.8

30064

Tamil Nadu

2585

3.7

1599

233.9

17117

22.3

22067

259.9

40784

Uttar Pradesh

6993

22.2

4277

745.8

77115

55.3

36519

823.2

117911

Uttarakhand

830

2.3

920

42.3

8861

9.3

7401

53.9

17183

West Bengal

2864

7.1

2242

304.8

33083

50.0

36329

361.9

71654

44653

110.2

34170

3539.5

392259

416.6

360722

4066.2

787151

Chhattisgarh

Kerala

All-India

Source : Basic Statistical Returns of Scheduled Commercial Banks in India, RBI

254

Employees of Scheduled Commercial Banks From Table 9.6, it can be seen that there were 42,201 bank employees in Bihar in March 2014, compared to 38,368 in March 2013. Out of them, 46.7 percent belonged to the category of officers, down from 48.2 percent in the previous year. Bihar accounted for only 3.4 percent of all the employees of Scheduled Commercial Banks in India in March, 2014. From Table 9.7, it is seen that the total number of female employees of Scheduled Commercial Banks in Bihar in 2014 was 5237, compared to 3936 in 2013. Female employees account for a share of only 1.9 percent of all female employees in the country. Table 9.6 : Distribution of Employees of SCBs (March, 2014) State

Officers

Clerks

Sub-ordinates

Andhra Pradesh

48676 (48.8)

34561 (34.6)

16613 (16.6)

99850 (100.0)

Bihar

19689 (46.7)

14855 (35.2)

7657 (18.1)

42201 (100.0)

7823 (52.5)

5049 (33.9)

2021 (13.6)

14893 (100.0)

Gujarat

34503 (50.2)

24405 (35.5)

9778 (14.2)

68686 (100.0)

Haryana

21766 (57.5)

11224 (29.6)

4876 (12.9)

37866 (100.0)

4036 (43.6)

3406 (36.8)

1823 (19.7)

9265 (100.0)

Jharkhand

10294 (47.4)

7581 (34.9)

3861 (17.8)

21736 (100.0)

Karnataka

42430 (48.4)

32987 (37.6)

12242 (14.0)

87659 (100.0)

Kerala

27014 (47.3)

22616 (39.6)

7447 (13.0)

57077 (100.0)

Madhya Pradesh

23088 (48.4)

16788 (35.2)

7829 (16.4)

47705 (100.0)

116199 (57.7)

63571 (31.6)

21732 (10.8)

201502 (100.0)

Odisha

15799 (47.8)

11848 (35.9)

5388 (16.3)

33035 (100.0)

Punjab

26991 (54.2)

15536 (31.2)

7302 (14.6)

49829 (100.0)

Rajasthan

25407 (51.4)

16672 (33.7)

7377 (14.9)

49456 (100.0)

Tamil Nadu

49345 (50.1)

37580 (38.1)

11654 (11.8)

98579 (100.0)

Uttar Pradesh

56070 (48.1)

40981 (35.2)

19476 (16.7)

116527 (100.0)

Uttarakhand

6196 (44.6)

5084 (36.6)

2623 (18.9)

13903 (100.0)

West Bengal

36205 (45.0)

29206 (36.3)

15000 (18.6)

80411 (100.0)

640869 (51.1)

431842 (34.4)

181244 (14.5)

1253955 (100.0)

Chhattisgarh

Himachal Pradesh

Maharashtra

All India

Total

Note : Figures in Parenthesis indicate percentage share Source : Basic Statistical Returns of Scheduled Commercial Banks in India

255

Table 9.7 : Distribution of Female Employees of SCBs (March, 2014) State

Officers

Clerks

Sub-ordinates

Total

Andhra Pradesh

8839 (41.71)

9415 (44.43)

2936 (13.86)

21190 (100.0)

Bihar

2675 (51.08)

2189 (41.8)

373 (7.12)

5237 (100.0)

Chhattisgarh

1105 (41.89)

1385 (52.5)

148 (5.61)

2638 (100.0)

Gujarat

5098 (41.97)

5942 (48.91)

1108 (9.12)

12148 (100.0)

Haryana

4922 (58.04)

2891 (34.09)

667 (7.87)

8480 (100.0)

494 (33.49)

606 (41.08)

375 (25.42)

1475 (100.0)

Jharkhand

1728 (45.99)

1810 (48.18)

219 (5.83)

3757 (100.0)

Karnataka

9486 (38.24)

13157 (53.04)

2161 (8.71)

24804 (100.0)

Kerala

9296 (41.67)

10894 (48.83)

2118 (9.49)

22308 (100.0)

Madhya Pradesh

3490 (41.31)

4458 (52.76)

501 (5.93)

8449 (100.0)

29375 (52.68)

24135 (43.29)

2247 (4.03)

55757 (100.0)

Odisha

2383 (48.59)

2207 (45)

314 (6.4)

4904 (100.0)

Punjab

5066 (46.98)

4456 (41.32)

1262 (11.7)

10784 (100.0)

Rajasthan

3356 (49.45)

2708 (39.91)

722 (10.64)

6786 (100.0)

11261 (38.79)

15408 (53.08)

2359 (8.13)

29028 (100.0)

Uttar Pradesh

7552 (48.03)

6637 (42.21)

1534 (9.76)

15723 (100.0)

Uttarakhand

929 (38.28)

1220 (50.27)

278 (11.45)

2427 (100.0)

West Bengal

6165 (51.29)

4573 (38.05)

1281 (10.66)

12019 (100.0)

129345 (46.56)

125795 (45.28)

22652 (8.15)

277792 (100.0)

Himachal Pradesh

Maharashtra

Tamil Nadu

All India

Note : Figures in Parenthesis indicate percentage share Source : Basic Statistical Returns of Scheduled Commercial Banks in India

9.2 Deposits and Credits Per Capita Deposits and Credits of Scheduled Commercial Banks Table 9.8 shows the deposits and credits of Scheduled Commercial Banks in major states of India in 2012-13 and 2013-14. From this table, it is seen that there has been a significant growth (15.3 percent) in the total deposits in Bihar in 2013-14 (Rs 25,225 crore) over the previous year. Simultaneously, the credit in 2013-14 has also expanded by more than Rs 12,727 crore, implying a very high growth of 25.6 percent. Bihar’s share in the total deposits of Scheduled Commercial Banks increased slightly from 2.34 percent in 2012-13 to 2.39 percent in 2013-14, and its share of credit also improved marginally from 0.90 percent to 0.99 percent in this period. But, it is to be noted that the total bank credit in Bihar does not account for even 1 percent of the total bank credit in the country. 256

Table 9.8 : State-wise Deposits and Credit of Scheduled Commercial Banks in India (March 31) Deposits State

Credits

Amount Share Amount Share Amount Share Amount Share (Rs. crore) Percentage (Rs. crore) Percentage (Rs. crore) Percentage (Rs. crore) Percentage

2012-13

2013-14

2012-13

CD Ratio 201314

2013-14

Andhra Pradesh

398497

5.65

440999

5.54

438107

7.96

490843

Bihar

165209

2.34

190434

2.39

49735

0.90

62462

0.99

32.80

Gujarat

361054

5.12

414792

5.21

260642

4.73

309819

4.93

74.69

Haryana

169911

2.41

193315

2.43

129274

2.35

150886

2.40

78.05

45528

0.65

51993

0.65

15772

0.29

18598

0.30

35.77

Jharkhand

105701

1.50

120341

1.51

33415

0.61

38248

0.61

31.78

Karnataka

464639

6.59

536909

6.75

331540

6.02

381438

6.07

71.04

Kerala

234217

3.32

281593

3.54

171712

3.12

190557

3.03

67.67

Madhya Pradesh

200820

2.85

224910

2.83

115776

2.10

135788

2.16

60.37

28.63 1821186

28.99

89.76

Himachal Pradesh

Maharashtra

1785043

25.31 2028845

25.50 1576489

7.81 111.30

Odisha

143978

2.04

164629

2.07

66325

1.20

73343

1.17

44.55

Punjab

200680

2.85

230021

2.89

162550

2.95

182003

2.90

79.12

Rajasthan

177139

2.51

201257

2.53

163268

2.97

175331

2.79

87.12

Tamil Nadu

446577

6.33

499974

6.28

549245

9.97

608742

9.69 121.75

Uttar Pradesh

515015

7.30

597679

7.51

224708

4.08

266630

4.24

44.61

Uttarakhand

66453

0.94

76009

0.96

23147

0.42

27094

0.43

35.65

West Bengal

438344

6.22

480108

6.03

269934

4.90

295914

4.71

61.63

100.00 6282082

100.00

78.96

India

7051332

100.00 7955721

100.00 5506496

Source : Statistical Tables Relating to Banks in India, 2014-15, RBI

From Table 9.8, one can also note that the Credit-Deposit (CD) ratio of Scheduled Commerical Banks in Bihar in 2013-14 was the lowest (32.8 percent) among all the major states, as in the previous years. It was nowhere near the national average of 79.0 percent, not to mention the high CD ratios of Tamil Nadu (121.8 percent), undivided Andhra Pradesh (111.3 percent), Rajasthan (87.1 percent) or Maharashtra (89.8 percent). The Credit-Deposit (CD) ratios in Bihar since 2005-06, according to data released by the State Level Bankers’ Committee (SLBC), are presented in Table 9.9. As on September 2015, the aggregate deposits of all banks in Bihar were Rs 2,20,667 crore, against a credit of Rs 104004 crore, resulting in a CD ratio of 47.1 percent, substantially higher than the 32.1 percent in 200506. Even though there has been some improvement in the CD ratio in recent years, its low level continues to plague the banking scenario in Bihar. 257

Table 9.9 : Credit-Deposit (CD) Ratio of All Banks in Bihar Deposit (Rs. crore)

Credit (Rs. crore)

2005-06

46134

14808

32.10

2006-07

56342

19048

33.81

2007-08

68244

22077

32.35

2008-09

83048

24051

28.96

2009-10

98588

31679

32.13

2010-11

113909

38723

33.99

2011-12

138163

50704

36.70

2012-13

161036

65364

40.59

2013-14

183458

85334

46.51

2014-15

211302

100261

47.45

2015-16 (up to Sep 2015)

220667

104004

47.13

Year

CD Ratio

Source: State Level Bankers' Committee Note : As per the RBI data given in Table 9.8, CD Ratio of Bihar is 32.8 percent as of March, 2014, whereas the SLBC data presented in this table depicts the same as 46.51 percent. The difference is mainly due to the inclusion of funds loaned by banks under the RIDF Scheme (discussed in Section 9.5). Excluding the RIDF, the CD ratio would be 41.78 percent. Also Table 9.8 contains data only for the commercial banks in Bihar, while Table 9.9 contains data for all banks in Bihar including RRBs and Cooperative Banks.

In absolute terms, the low CD ratio means that if the current CD ratio of about 47 percent in the state were to increase to match the national level of around 78 percent, investments in the state would have to go up by nearly Rs. 68,400 crore which could provide the much-needed impetus to economic activities. The low disbursement of credit also indicates that either the industrial activities are stagnating or the credit requirements of the enterprises are being met at higher rates of interest from private lending agencies, eating into their profitability. This, naturally, is a serious hindrance to industrial growth in the state. Further, this also indicates the flight of capital away from an already disadvantaged state. However, it is to be mentioned that improvement in the CD ratio will depend on the credit demand which is dependent on a number of other factors like availability of infrastructure (especially uninterrupted supply of power), market, entrepreneurial skill and business atmosphere, for many of which Bihar is seriously disadvantaged.

258

Chart 9.1 : CD Ratio of Major Indian States as on March 31, 2014

140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0

Chart 9.2 : CD Ratio of Bihar 50.00

46.5147.45

45.00 40.59

40.00 35.00 30.00 25.00 20.00

29.86

32.10

33.81 32.35

32.13

33.99

36.70

28.96

26.81 22.79 23.92

15.00 10.00 5.00 0.00

The CD ratios in Bihar in 2014-15 by the bank groups and their locations are shown in Table 9.10. The CD ratios of Scheduled Commercial Banks in 2013-14 in different states as per sanction and utilization are shown in Table 9.11. Both these tables are based on the RBI data which do not take into account the credit available from NABARD under RIDF. In 2014-15, the CD ratio was the highest (54.92 percent) for Regional Rural Banks in Bihar, followed closely by the Cooperative Banks (53.49 percent) and, for Scheduled Commercial Banks, the ratio (35.52 percent) was much lower. Their respective shares in total deposits were Regional Rural Banks 259

(10.2 percent), Cooperative Banks (1.1 percent), and Scheduled Commercial Banks (88.7 percent); for credit, the respective shares were 14.9 percent, 1.5 percent and 83.6 percent. The combined credits or deposits of the Regional Rural Banks and Cooperative Banks were a fraction of the total credits and deposits of the Scheduled Commercial Banks; consequently, unless the CD ratio of the latter improves significantly, the overall CD ratio in the state is unlikely to improve. Table 9.10 : Bank Group-wise and Area-wise Credit-Deposit Ratio (2014-15) Bank Groups

Deposits (Rs. lakh)

Credits (Rs. lakh)

CD Ratio

Rural

5903362

1599628

27.10

-

27.10

Semi-Urban

4761965

1605494

33.71

-

33.71

Urban

8082448

3453626

42.73

-

42.73

Total

18747775

6658748

35.52

691770

43.91

Rural

1419631

846990

59.66

-

59.66

Semi -Urban

445259

217649

48.88

-

48.88

Urban

291072

119474

41.05

-

41.05

Total

2155962

1184113

54.92

27298

56.19

Rural

90484

42602

47.08

-

47.08

Semi-Urban

59721

42302

70.83

-

70.83

Urban

76263

36245

47.53

-

47.53

Total

226468

121149

53.49

4373

55.43

Rural

7413477

2489220

33.58

-

33.58

Semi-Urban

5266945

1865445

35.42

-

35.42

Urban

8449783

3609345

42.72

-

42.72

Total

21130205

7964010

37.69

723441

45.29

Area

Investment (Rs. crore)

ICD Ratio

Commercial Bank

RRB

Cooperative Bank

All Banks

Source : State Level Bankers' Committee

Investment Plus Credit to Deposit (ICD) Ratio The banks assist the economy not simply by giving credit, but also by investing in state government securities and in shares and bonds of state undertakings, quasi-government bodies and joint stock companies. Therefore, the total involvement of the banks in the economic activities of a state is truly reflected not by CD ratios alone, but by the Investment plus Credit to Deposit (ICD) ratios. From Table 9.10, it is seen that if the ICD ratio is taken into account, Scheduled Commercial Banks are much better, compared to their CD ratios. CD Ratio as per Sanction and Utilisation The CD ratio is conventionally calculated on the basis of credit sanctions in a state. A low CD ratio, based on credit sanctions, would indicate the migration of deposits from one state to 260

another. On the other hand, a CD ratio based on credit utilization takes into account the actual location where the credit is utilised. A comparison between these two types of ratios, therefore, assumes importance. For the country as a whole, these two ratios would evidently be identical, but the utilization ratio may be larger in respect of less developed states. This was indeed the case in Bihar, as the CD ratio based on utilisation was a little higher than the same based on sanction in both 2013 and 2014. (Table 9.11). Table 9.11 : Credit-Deposit (CD) Ratio of the Scheduled Commercial Banks as on March 31 2014

2013 As per Sanction Andhra Pradesh

As per Utilization

As per Utilization

As per Sanction

112.0

116.0

111.3

115.9

Bihar

30.5

35.0

32.8

34.8

Gujarat

72.8

81.5

74.7

81.0

Haryana

76.5

86.0

78.1

88.5

Himachal Pradesh

35.1

41.6

35.8

37.8

Jharkhand

32.1

35.8

31.8

33.0

Karnataka

71.9

76.5

71.0

76.5

Kerala

73.1

74.0

67.7

67.8

Madhya Pradesh

58.2

57.4

60.4

63.3

Maharashtra

89.4

80.8

89.8

81.3

Odisha

46.3

50.9

44.6

46.2

Punjab

81.6

78.9

79.1

81.3

Rajasthan

92.6

102.9

87.1

91.4

123.3

122.2

121.8

120.6

Uttar Pradesh

44.1

53.0

44.6

48.0

Uttarakhand

34.8

37.3

35.6

36.7

West Bengal

62.0

63.3

61.6

63.9

India

78.8

78.8

79.0

79.0

Tamil Nadu

Source : Report on Trend and Progress of Banking in India 2014-15, RBI

CD Ratio of Districts Table 9.12 depicts the CD ratios of all Scheduled Commercial Banks as well as Regional Rural Banks in all 38 districts of Bihar, during the last 6 years. From the table, it can be seen that the CD ratios showed a wide variation across the districts, from a low 23.4 percent in Siwan to a high of 60.5 percent for Muzaffarpur. However, there has been some improvement in these ratios compared to the last year for most districts. As of September 2015, the CD ratio was less than 30 percent in only 4 of the 38 districts (Bhojpur, Saran, Munger and Siwan); the number was the same in the 261

Table 9.12 : District-wise Credit-Deposit (CD) Ratio

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16 (Sep 15)

Patna

26.53

31.33

33.13

34.64

36.1

36.18

Nalanda

29.75

30.87

32.22

34.04

32.1

31.17

District

Bhojpur

23.9

25.17

24.53

22.28

27.88

29.09

Buxar

31.56

32.23

31.65

28.96

36.19

37.04

Rohtas

38.37

40.04

40.2

42.94

45.72

45.94

Kaimur

52.16

49.07

54.59

52.44

56.51

58.43

Gaya

32.07

31.38

33.37

33.76

33.05

32.57

Jehanabad

29.98

32.36

33.72

27.6

32.13

34.73

Arawal

45.38

31.5

32.2

34.03

37.19

39.09

Nawada

34.44

39.27

37.76

38.62

36.95

37.31

Aurangabad

31.82

33.24

34.94

37.34

39.63

41.09

Saran

24.35

24.35

22.96

25.8

28.42

28.56

Siwan

21.63

21.1

21.68

23.26

25.36

23.41

Gopalganj

28.66

28.43

27.71

26.69

31.79

30.71

West Champaran

45.69

49.14

45.46

45.8

49.79

51.69

East Champaran

44.07

42.25

43.5

45.51

48.24

46.79

Muzaffarpur

35.69

33.2

38.88

39.56

40.99

60.47

Sitamarhi

34

34.65

38.88

38.1

39.21

38.76

Sheohar

34.09

36.81

34.9

40.31

45.64

47.91

Vaishali

29.9

29.98

30.74

32.29

33.62

33.66

Darbhanga

28.54

26.91

36.85

43.69

38.11

35.98

Madhubani

29.4

30.59

29.82

31.47

34.28

33.04

Samastipur

44.36

42.74

37.41

39.55

43.17

41.34

Begusarai

39.63

38.95

45.24

49.9

44.68

47.02

Munger

29.64

28.08

21.25

26.39

26.72

25.76

Sheikhpura

28.6

28.93

29.82

34.5

39.72

40.19

Lakhisarai

24.95

25.25

28.09

34.74

35.66

35.79

Jamui

26.79

29.16

29.75

29.83

39.51

37.57

Khagaria

36.05

39.84

39.03

47.53

57.76

57.76

Bhagalpur

28.97

24.92

28.76

46.96

32.31

32.64

Banka

35.15

36.45

38.85

43.41

42.56

46.57

Saharsa

34.53

33.53

34.8

36.36

37.1

37.66

Supaul

36.1

35.83

39.97

41.47

44.84

43.22

Madhepura

43.39

31.78

37.1

39.01

39.12

37.11

Purnea

53.12

50.92

54.24

57.32

58.9

58.66

Kishanganj

53.34

50.65

52.58

58.46

58.17

56.28

Araria

45.84

48.96

48.52

46.68

50.04

54.12

44.92 44.29 42.37 44.87 Source : State Level Bankers' Committee

48.61

47.2

Katihar

262

last year. It was above 40 percent in 17 districts (Araria, Aurangabad, Banka, Begusarai, Kaimur, Kishanganj, Khagaria, Katihar, Muzaffarpur, Purnea, Rohtas, Samastipur, Sheikhpura, Sheohar, Supaul, East Champaran and West Champaran); there were 15 such districts last year. However, the high CD ratios in some districts are sometimes related to high Non-Performing Assets (NPA) of many banks, including cooperative banks; they do not necessarily reflect the banks’ increased credit flow in the district. CD Ratio of Commercial Banks in Bihar Tables 9.13 shows the CD ratios of nationalized commercial banks in Bihar. Among the Lead Banks, Central Bank of India had the highest CD ratio of 43.0 percent as on September 2015, followed closely by Union Bank of India (41.7 percent), Canara Bank (41.3 percent) and Bank of Table 9.13 : Credit-Deposit (CD) Ratio of Nationalised Commercial Banks

Banks

No. of Branches in 2015

2010-11 2011-12 2012-13 2013-14

2014-15

2015-16 (Sep 15)

Lead Banks State Bank of India

912

28.09

31.21

26.50

35.65

27.00

26.49

Central Bank of India

439

34.69

33.91

37.31

41.11

37.15

43.00

Punjab National Bank

554

29.74

33.05

30.46

37.05

38.65

39.46

Canara bank

219

33.71

39.40

39.07

42.78

40.21

41.33

UCO Bank

229

36.05

28.88

36.31

36.63

39.26

38.66

Bank of Baroda

235

34.27

33.57

35.08

35.77

34.82

41.01

Union Bank of India

141

26.67

36.78

22.29

36.02

41.12

41.73

Other Banks Bank of India

335

35.02

35.02

37.53

38.52

38.50

38.79

Allahabad Bank

233

26.62

30.50

34.17

41.36

39.97

39.90

Andhra Bank

30

20.18

21.35

23.32

14.53

16.76

15.99

Bank of Maharashtra

13

14.55

17.18

7.89

7.97

32.46

40.48

Corporation Bank

41

7.79

75.00

20.44

57.42

59.30

49.41

Dena Bank

40

11.64

09.49

41.94

31.13

30.26

31.16

Indian Bank

59

20.26

32.33

21.57

60.58

68.83

69.33

Indian Overseas bank

60

13.60

17.81

36.77

50.23

51.02

62.53

Oriental Bank of Commerce

48

24.40

30.41

42.67

45.13

39.90

41.79

Punjab and Sind Bank

12

10.73

11.10

10.82

112.00

62.82

NA

Syndicate Bank

56

41.67

39.92

41.43

40.11

40.88

40.32

United Bank of India

92

27.82

34.48

46.94

51.61

53.89

52.62

Vijaya Bank

30

21.28

21.93

22.77

25.68

29.19

34.18

State Bank of B&J

18

27.41

41.28

43.19

81.18

70.11

71.33

3

86.30

63.29

55.32

58.74

46.30

50.44

37.69

38.55

State Bank of Patiala State

3799 31.37 34.90 40.59 Source : State Level Bankers' Committee

263

40.73

Baroda (41.0 percent). Both Canara Bank and Central Bank of India had also maintained consistently high CD ratios since 2008-09. Among other nationalized banks, State Bank of Bikaner & Jaipur had the highest CD Ratio of 71.3 percent, followed by Indian Bank (69.3 percent). Out of 22 banks, 14 had registered improvement over the last year, others recording a deterioration. CD Ratios of Private Commercial Banks The CD ratios of private commercial banks in Bihar need a separate mention (Table 9.14). As of 2014-15, there were 239 branches of 10 private banks in Bihar, compared to 205 branches in 2013-14. Their CD ratios varied from only 0.45 to 54.43 percent. The combined CD ratio for these banks was 40.3 percent in March 2015. Except for the 18 rural branches of only four banks (Axis Bank, HDFC Bank, ICICI Bank and IndusInd Bank), all other branches of private commercial banks were either in the semi-urban or urban areas. Only two rural branches were opened during 2014-15 by them. Table 9.14 : Credit-Deposit (CD) Ratio of Private Commercial Banks (2014-15) Rural Banks

Urban and Semi-urban

Total

No. of Deposit Advance No. of Deposit Advance No. of Deposit Advance branches (Rs. lakh) (Rs. lakh) branches (Rs. lakh) (Rs. lakh) branches (Rs. lakh) (Rs. lakh)

CD Ratio

ICICI Bank

1

7365

3617

69

265739

114896

70

273104

118513

43.39

Federal Bank

0

0

0

8

19138

3019

8

19138

3019

15.77

Jammu Kashmir Bank

0

0

0

1

6243

1932

1

6243

1932

30.95

South Indian Bank

0

0

0

1

16792

1857

1

16792

1857

11.06

ING Vysya Bank

0

0

0

2

9850

44

2

9850

44

0.45

AXIS Bank

9

5412

525

52

355998

106399

61

361410

106924

29.59

HDFC Bank

3

1139

252

70

328832

160730

73

329971

160982

48.79

IndusInd Bank

5

5963

4336

11

91072

48483

16

97035

52819

54.43

Karnataka Bank

0

0

0

1

2240

775

1

2240

775

34.6

Kotak Mahindra Bank

0

0

0

6

19976

10257

6

19976

10257

51.35

All Private Bank

18

19879

8730

221

448392

239

457122

40.25

1115880

1135759

Source : State Level Bankers' Committee

CD Ratios of Regional Rural Banks (RRB) There are three Regional Rural Banks in Bihar, each serving a particular zone: Madhya Bihar Kshetriya Gramin Bank (sponsored by Punjab National Bank), Uttar Bihar Kshetriya Gramin Bank (sponsored by Central Bank of India) and Bihar Kshetriya Gramin Bank (sponsored by UCO Bank). Table 9.15 shows the CD ratios of these three Regional Rural Banks. Bihar Keshtriya Gramin Bank has the highest ICD ratio of 81.3 percent in September 2015, while Madhya Bihar Keshtriya Gramin Bank has the lowest CD ratio of 38.3 percent. The overall CD 264

ratio of RRBs in the state in September 2015 was 52.9 percent, nearly the same as in the last year (53.6 percent). There was not much difference between their CD and ICD ratios. Table 9.15 : Credit-Deposit (CD) and Investment Plus Credit-Deposit (ICD) Ratios of RRBs CD Ratio RRBs

2012-13 2013-14 2014-15

ICD Ratio 2015-16 (Sep 15)

2012-13

2013-14

2015-16 (Sep 15)

2014-15

Madhya Bihar KGB

42.40

42.52

43.36

38.26

42.42

42.52

43.36

38.26

Bihar KGB

50.92

72.11

75.35

72.57

50.52

79.33

83.48

81.28

Uttar Bihar KGB

51.80

55.30

56.79

56.93

51.80

55.30

56.79

56.93

Total of R.R.Bs

48.51

53.56

54.92

52.89

48.51

54.70

56.19

54.27

Source : State Level Bankers' Committee

9.3 Sectoral Share in Priority Sector Advances Achievement under Annual Credit Plan (ACP) Table 9.16 presents the sectoral profile of credit deployment in 2014-15. The priority sector advances constituted 73 percent of the total bank advances in the state. The share of agriculture in the total advances was 50 percent, about the same as in the previous year. It can be seen that the advances made to the small and medium scale industries were 13 percent of the total loans disbursed in 2014-15, which was a little higher than 11 percent registered in 2013-14. This lower volume of credit to industry in Bihar is certainly a cause for concern. For augmenting the credit flow to this sector, development of infrastructure in power and roadways would be necessary, along with the revival of Industrial Estates. The overall achievement under the Annual Credit Plan was 93 percent in 2014-15, which was about the same achieved in 2013-14 (92 percent). There was also an overachievement in respect of credit to small and medium enterprises during the last four years. This obviously indicates a growing demand for credit for small and medium enterprises and the need to enhance the allocation for this sector. The districtwise figures of achievements of Annual Credit Plan are shown in Table A 9.1 (Appendix). Table 9.16 : Sectoral Share of Advances under Annual Credit Plans (2014-15) ACP Target (Rs. crore)

Sector Agriculture

Achievement (Rs. crore)

Achievement (percentage)

Share in Advances (percentage)

36000

34680

96.33

50.41

Small & Medium Enterprises

8500

8875

104.40

12.90

Other Priority Sector Advances

7500

6484

86.45

9.42

Total Priority Sector Advances

52000

50038

96.23

72.73

Non Priority Sector Advances

22000

18759

85.27

27.27

Total

74000

68797

92.97

100.00

Source : State Level Bankers' Committee

265

The total credit flow in Bihar during the past six years is shown in Table 9.17. Under the Annual Credit Plan of banks in Bihar, the total credit flow in the state has increased from Rs 57,007 crore in 2013-14 to Rs 68,797 crore in 2014-15, registering a 21 percent growth compared to the 28 percent growth registered a year before. The achievement percentages have been rising steadily from 69 percent in 2010-11 to 93 percent in 2014-15. It is also seen that there were wide variations in achievement rates among various bank groups, ranging from as low as 36 percent in the case of Cooperative Banks to 102 percent in case of Regional Rural Banks (Table 9.18). Table 9.17 : ACP Achievement - All Banks Target (Rs. crore)

Achievement (Rs. crore)

Achievement (percentage)

2009-10

21128

17537

83.0

2010-11

37000

25552

69.1

2011-12

43200

32416

75.0

2012-13

51400

44521

86.6

2013-14

62000

57007

92.0

2014-15

74000

68797

92.97

Year

Source: State Level Bankers' Committee

Table 9.18 : Agency-wise Analysis of ACP Achievement (2014-15) Target (Rs. crore)

Achievement (Rs. crore)

Achievement (percentage)

57166

52250

91.40

1003

362

36.07

Cooperative Banks

15831

16185

102.24

Total

74000

68797

92.97

Agencies Commercial Banks Regional Rural Bank

Source : State Level Bankers' Committee

Outstanding Agricultural Advances The data on credit flow to agriculture in Bihar during the six year period 2009-10 to 2014-15 is presented in Table 9.19. The agricultural credit flow expanded continuously since 2010-11. In 2014-15, except for the Cooperative Banks, the achievement rates have been more than 95 percent in respect of both Commercial Banks and RRBs. It was, of course, the Commercial Banks that accounted for the major share in the total credit, which was 61 percent in 2014-15. The outstanding agricultural advances stood at Rs 30,652 crore at the end of 2014-15 (Table 9.20). This implied an annual growth rate of 21 percent in total outstanding credit to agriculture during the six-year period. 266

Table 9.19 : Agriculture Credit Flow (Rs. crore) Commercial Bank

RRBs

CCB

Total

Year Target

Achievement

Target

Achievement

Target

Achievement

2009-10

5425

4960 (91.4)

2220

1851 (84.0)

1082

353(32.6)

8727

7163 (82.1)

2010-11

9111

7058 (77.5)

5228

3188 (61.0)

1529

422 (27.6)

15868

10667 (67.2)

2011-12

12241

9689 (79.2)

7013

4882 (69.6)

1848

387 (20.9)

21102

14958 (70.9)

2012-13

14674

13203 (90.0)

8407

8035 (95.6)

2319

328 (14.2)

25401

21566 (84.9)

2013-14

18709

17786 (95.1)

10777

10676 (99.1)

800

307 (38.4)

30286

28770 (95.0)

2014-15

22191

12809

13058 (101.9)

1000

362 (36.2)

36000

34680 (96.3)

21260 (95.8)

Target Achievement

Note : Figures in bracket indicate percentage of achievement Source: State Level Bankers’ Committee

Table 9.20 : Outstanding Agricultural Advances Outstanding Agricultural Advances Year

Commercial Banks

RRBs

(Rs. crore)

Cooperative & LDBs

Total

Annual Growth Rate

2008-09

6409

2206

308

8923

15.6

2009-10

8521

3104

292

11916

33.5

2010-11

10664

3270

48

13982

17.3

2011-12

12426

3445

2418

18290

30.8

2012-13

15422

4219

2824

22538

23.2

2013-14

19231

5101

1047

25380

12.6

2014-15

23130

6311

1212

30652

20.8

Source: State Level Bankers' Committee

Primary Agricultural Credit Societies (PACS) Table 9.21 shows some selected indicators of functioning of Primary Agricultural Credit Societies (PACS) in different states, as on March 2014. Though with 8463 PACS, Bihar accounts for 9.1 percent of all PACS in India, it is much behind the other states in terms of both deposits and borrowings. Also, out of the total 8463 PACS in Bihar, as many as 3962 societies are making losses, their total loss amounting to Rs 1crore, while 1180 societies have earned a total profit of Rs 6 crore. The total deposits of all PACS were only Rs 175 crore, and their total borrowings amounted to Rs 508 crore.

267

Table 9.21 : Selected Indicators of Primary Agricultural Credit Societies (March 31, 2014)

State

Loans and Advances Outstanding (Rs crore) No. of Deposits Borrowings PACS (Rs crore) (Rs crore) NonAgriculAgriculture ture

Societies in Profit

No.

Amount (Rs crore)

Societies in Loss

No.

Amount (Rs crore)

Andhra Pradesh

2807

1260

35043

4237

184

1222

50

1585

440

Bihar

8463

175

508

NA

NA

1180

6

3962

1

Gujarat

8313

1560

12026

6101

233

5969

96

1909

55

Haryana

657

565

10586

7335

406

63

40

580

360

2135

2283

2878

586

11

1718

0

343

0

Jharkhand

NA

NA

NA

NA

NA

NA

NA

NA

NA

Karnataka

4915

2856

9245

4703

730

3030

100

1652

45

Kerala

2909

57968

79628

9389

35993

1127

961

936

1743

Madhya Pradesh

4457

817

6456

3400

119

2153

131

2129

178

21268

187

15219

10132

Na

9264

2

11424

5

Odisha

2701

1182

4575

2739

80

645

26

2028

351

Punjab

1609

434

1206

1183

36

925

199

472

829

Rajasthan

5671

1395

7015

3012

187

4049

83

1113

34

Tamil Nadu

4310

8066

17844

4988

11238

2803

9147

1507

4860

Uttar Pradesh

8929

68

1259

800

Na

4536

18

1968

2

Uttarakhand

758

545

1224

386

111

586

45

167

8

West Bengal

7402

1891

4630

1388

241

2344

20

4036

15

93042

81895

212429

61376

49679

43327

11052

37662

9118

Himachal Pradesh

Maharashtra

India

Source : National Federation of State Cooperative Banks Ltd.(NAFSCOB)

The poor resource base of PACS, their inefficient management and low level of participation of their members are major bottlenecks for increasing the credit flow through PACS. As indicated by NABARD, the capacity of PACS is limited to meet only partially the credit requirements of their members. In order to improve their functioning and financial status, it is necessary to develop them as Multi-Service Centres to provide ancillary services to their members and help them to diversify their activities. State Cooperative Banks Table 9.22 shows the working results of State Cooperative Banks in major states during the three years 2011-12 to 2013-14. The recovery percentage for these banks in Bihar actually declined significantly from 65 percent in June 2012 to only 25 percent in June 2014. The share of Non268

Performing Assets (NPA) in the total outstanding loans in Bihar was 12.4 percent in 2014, compared to 10.3 percent in 2012 and 13.0 percent in 2013. Table 9.22 : Working Results of State Cooperative Banks Profit/Loss (Rs. crore) State

NPAs as percentage to Loans Outstanding

Recovery (percentage) as at end-June

2012

2013

2014

2012

2013

2014

2012

2013

2014

Andhra Pradesh

123.02

73.89

1365.10

0.98

1.94

2.27

99.10

97.34

97.30

Bihar

45.88

59.50

241.20

10.25

13.03

12.38

65.00

54.76

25.08

Gujarat

18.85

66.36

139.30

2.13

1.62

2.30

86.30

98.47

98.54

Haryana

18.69

30.21

219.80

0.05

0.05

0.05

99.94

99.96

100.00

Himachal Pradesh

41.42

50.46

406.80

10.91

9.83

10.36

71.76

69.72

86.00

Jharkhand

0.00

-0.52

-23.30

NA

37.46

55.48

NA

NA

69.14

Karnataka

29.00

31.00

345.00

3.66

3.30

4.22

97.65

97.61

98.04

-101.16

53.16

-635.90

12.72

8.41

24.74

85.14

84.37

86.15

Madhya Pradesh

68.25

39.04

655.90

1.48

1.71

0.80

97.43

97.66

97.70

Maharashtra

175.39

391.17

4005.10

21.19

18.94

14.66

97.30

89.12

83.81

Odisha

11.01

12.64

140.50

4.69

4.61

3.76

97.08

97.11

97.32

Punjab

27.18

18.91

172.90

0.87

0.75

0.77

98.70

98.73

97.29

Rajasthan

19.58

23.53

151.30

0.83

0.88

0.33

94.70

97.02

98.51

Tamil Nadu

51.99

43.24

322.20

3.29

4.62

4.27

98.34

99.82

99.46

Uttar Pradesh

30.02

32.36

402.40

6.23

5.09

5.06

95.28

96.03

95.45

Uttarakhand

2.76

4.44

71.40

4.93

10.15

3.11

97.20

97.19

94.83

West Bengal

-59.90

10.04

-106.30

10.29

9.57

7.57

71.20

93.06

53.28

Kerala

Source : National Federation of State Cooperative Banks Ltd.(NAFSCOB)

State Cooperative Agriculture and Rural Development Banks Table 9.23 shows the working results of State Cooperative Agriculture and Rural Development Banks (SCARDB) in major states. Here also, the recovery rate in Bihar was very poor at only 6.4 percent in 2014, compared to the national average of 33.3 percent. In Bihar, the Non-Performing Assets (NPA) constituted as much as 98.1 percent of their total outstanding loans in 2014, a little lower than 99.3 percent registered in 2013. These ratios were much higher than the national average of only 35.6 and 36.0 percent, in these two years. The total losses of these banks in Bihar was Rs. 22.1 crore in 2014, compared to a modest profit of Rs. 1.5 crore a year before. 269

Table 9.23 : Working Results of SCARDBs

Branches State 2014 Bihar

NPAs as percentage of Loans outstanding

Profit/Loss (Rs. crore) 2013

2014

2013

2014

Recovery (Percentage) 2013

2014

131

1.54

-22.08

99.34

98.06

1.95

6.38

0

-8.94

-9.56

66.25

70.68

21.99

6.44

181

37.52

23.50

40.35

43.68

43.56

42.99

0

-6.99

-36.13

29.47

46.59

55.68

32.10

Himachal Pradesh

33

0.01

2.41

48.97

50.30

50.86

50.24

Karnataka

23

0.05

0.06

26.99

26.99

39.01

42.14

Kerala

14

20.65

21.11

3.43

3.16

94.39

94.88

Madhya Pradesh

7

-139.88

-197.64

77.87

86.31

8.39

3.56

Maharashtra

0

-113.02

-204.76

98.35

99.90

1.21

0.02

Odisha

5

-0.97

-0.97

100.00

100.00

0.38

0.38

Punjab

0

28.78

25.67

3.81

2.13

81.44

83.65

Rajasthan

7

3.07

2.15

38.26

46.48

48.81

43.86

18

2.29

2.67

22.29

9.11

5.57

74.93

323

81.79

81.79

65.98

65.98

17.29

17.29

2

0.06

-24.21

18.82

26.88

60.08

57.21

823

-101.32

-346.33

36.00

35.57

32.26

33.25

Chhattisgarh Gujarat Haryana

Tamil Nadu Uttar Pradesh West Bengal All India

Source : National Federation of State Cooperative Banks Ltd.(NAFSCOB)

Kisan Credit Cards The Kisan Credit Cards (KCC) scheme, introduced in 1998-99, aims at providing crop loans to farmers in a flexible and cost-effective manner. The scheme is implemented by all Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, Central Cooperative Banks, and Primary Agricultural Cooperative Societies. Beneficiaries under the KCC are issued with a credit card-cum-passbook, incorporating the borrowing limit and validity period. The credit limits are fixed, taking into account the production credit needs for a full year, plus ancillary activities relating to crop production. At the discretion of lending banks, sub-limits for credits are also fixed. The crop loan is provided in the form of a revolving cash credit facility, involving any number of drawals and repayments within the fixed limit. The number of KCCs issued by banks in Bihar during the period 2010-11 to 2014-15 is shown in Table 9.24. For the Scheduled Commercial Banks and the RRBs, the achievement rates were consistently high, with the achievement rate at 69.5 percent and 65.8 percent respectively in 2014-15. The Central Cooperative Banks lagged way behind their targets, their achievement in 2014-15 being only 22.3 percent. The overall achievement for all banks in 2014-15 was 66.4 270

percent, down from 71.6 percent a year ago. The district-wise figures of achievements of KCC scheme are shown in Table A 9.2 (Appendix). Table 9.24 : Number of Kisan Credit Cards (NEW) issued by Banks Target

Achievement

Percentage

Target

Achievement

Commercial Banks

Percentage

RRBs

2010-11

861430

474628

55.10

478570

276129

57.70

2011-12

811209

579456

71.43

467080

204488

43.78

2012-13

811207

600343

74.01

467081

246987

52.88

2013-14

909186

675107

74.25

535348

387658

72.41

2014-15

903944

628370

69.51

537590

353841

65.82

CCB

Total

2010-11

160000

40021

25.01

1500000

790778

52.72

2011-12

221711

34946

15.76

1500000

818890

54.59

2012-13

221712

16492

7.44

1500000

863822

57.59

2013-14

55466

11325

20.42

1500000

1074090

71.61

2014-15

58466

13057

22.33

1500000

995268

66.35

Source: State Level Bankers' Committee

9.4 Financial Institutions National Bank for Agriculture and Rural Development (NABARD) The NABARD has a mandate for facilitating credit flow for development of agriculture, agroindustries, village and cottage industries, handicrafts and other rural crafts by providing refinance to lending institutions in rural areas. It also coordinates the operations of rural credit institutions and offers training and research facilities. In addition, it manages the Rural Infrastructure Development Fund (RIDF), created to compensate for the shortfall in lending by commercial banks to agriculture. NABARD also provides loans to state governments for projects relating to irrigation, soil conservation, watershed management, drinking water supply, cold storage chains, and other rural infrastructure projects. The details of sector-wise refinancing by NABARD till March, 2015 are shown in Table 9.25. Refinancing by NABARD has been continuously increasing and stood at Rs 7585 crore at the end of 2014-15, compared to only Rs 1336 crore in 2010-11. In 2014-15, there were substantial increases in both crop loan refinance and RIDF loan, raising the level of total financial support by 85 percent. About 14 percent of the financial support has been provided by way of RIDF loans, discussed in the next section. 271

Table 9.25 : Sector-wise Refinancing by NABARD (Rs crore) Year

Crop Loan Refinance

Investment RIDF Loan Credit (sanctioned) Refinancing

Total Financial Support

2010-11

409.7

285.9

640.0

1335.6

2011-12

700.0

376.5

638.0

1714.5

2012-13

1077.0

521.4

902.0

2500.4

2013-14

2338.0

370.6

1422.8

4131.4

2014-15

4370.0

2157.4

1058.0

7585.4

Source : NABARD

Chart 9.3 : Refinancing by NABARD (Rs crore) 8000 7000 6000 5000 4000 3000 2000 1000 0 2010-11 2011-12 Crop Loan Refinance RIDF Loan (sanctioned)

2012-13 2013-14 Investment Credit Refinancing Total Financial Support

2014-15

Under the Investment Credit Refinancing, NABARD covers a number of activities and Table 9.26 presents the extent of refinancing for each of these activities during the last five years. It emerges from the table that four most important activities refinanced by NABARD in 2014-15 were — farm mechanisation, self-help groups, dairy and rural non-farm sector. The shares of these four important activities in total refinancing of Rs. 2157.36 crore were — farm mechanisation (13.7 percent), Self-Help Groups (5.3 percent), dairy (4.9 percent) and farm sector (13.8 percent). The level of refinancing in 2014-15 was increased by nearly 6 times from the previous year.

272

Table 9.26 : Details of Sector-wise Investment Credit Refinance in Bihar by NABARD (Rs. crore) Sectors

2010-11

2011-12

2012-13

2013-14

2014-15

Minor Irrigation

39.38

32.72

46.57

17.89

25.25

Farm Mechanization

81.92

97.76

250.84

67.27

295.60

Dairy

92.56

70.62

-

31.11

104.59

Self Help Groups

40.57

43.66

-

63.38

114.24

Non-Farm Sector

22.84

97.80

53.56

21.26

298.06

8.72

33.98

170.46

169.73

1319.30

285.99

376.54

521.43

370.64

2157.36

Others Total

Source : NABARD, Bihar

9.5 Rural Infrastructure Development Fund (RIDF) The RIDF was set up by the central government in 1995-96 for financing ongoing rural infrastructure projects by providing low cost fund support to the state governments and stateowned corporations. The fund is managed by NABARD. The scheduled commercial banks contribute to the fund to the extent of their shortfall in stipulated priority sector lending to agriculture. The RIDF was created to provide the following benefits: (i) unlocking of sunk investment already made by the state governments, (ii) creation of additional irrigation potential, (iii) generation of additional employment for the rural people, (iv) contribution to the economic wealth of the state, (v) improved connectivity between villages and marketing centres, and (vi) improvements in quality of life through facilities in education, health and drinking water supply. At present, RIDF covers a wide range of 31 activities classified broadly under three categories — (i) Agriculture and Related sectors, (ii) Social Sectors and (iii) Rural Connectivity. For Agriculture and Related Sectors, the loans are provided for 95 percent of the project cost; for Social Sectors, the limit is 90 percent for north-eastern region and 85 percent for other states; finally, for Rural Connectivity, the limits are 90 percent for north-eastern region and 80 percent for other states. Till the end of March, 2015, 19 tranches of RIDF have been sanctioned, totaling to Rs 2,30,951 crore for the entire country, out of which only Rs 1,86,448 crore (80.7 percent) have been disbursed (Table 9.27). For Bihar, however, the disbursed amount of Rs 7586 crore constituted 77.9 percent of the total sanction of Rs 9735 crore. Bihar was able to utilise 84.6 percent of the total disbursed fund till March 2015.

273

Table 9.27 : Cumulative Disbursements under RIDF till March 2015 Sanctions Disbursement Utilisation (Rs. crore) (Rs. crore) (Rs Crore) 19118 16143 13290

State Andhra Pradesh

Utilisation percentage 82.3

Bihar

9735

7586

6419

84.6

Chhattisgarh

5096

3573

3163

88.5

Gujarat

16739

13919

12801

92.0

Haryana

4955

4030

3500

86.8

Himachal Pradesh

5133

4564

3462

75.9

Jharkhand

6807

5403

4664

86.3

Karnataka

9994

7936

7055

88.9

Kerala

7536

5205

4205

80.8

Madhya Pradesh

16119

12618

10354

82.1

Maharashtra

11908

9961

8387

84.2

Odisha

12328

8368

7654

91.5

Punjab

7216

6192

5028

81.2

Rajasthan

15510

12916

10800

83.6

Tamil Nadu

14298

11517

11190

97.2

Uttar Pradesh

17596

14479

13206

91.2

Uttarakhand

5047

3293

3425

104.0

West Bengal

12066

7595

8447

111.2

RIDF Total

212451

167948

147989

88.1

18500

18500

18500

100.0

230951 186448 166489 Source : Annual Report, 2015, NABARD

89.3

Bharat Nirman All India

Table 9.28 : Sanctions and Disbursements in Bihar under RIDF till March, 2015 (Rs. crore) RIDF Tranche

Sanction

Disbursement

Disbursement Percentage

RIDF I -X

508

351

69.1

RIDF XI

459

418

91.1

RIDF XII

305

231

75.7

RIDF XIII

578

512

88.6

RIDF XIV

752

720

95.7

RIDF XV

674

637

94.5

RIDF XVI

1089

656

60.2

RIDF XVII

1048

598

57.1

RIDF XVIII

1490

533

35.8

RIDF XIX

1764

634

35.9

Total till March 2013

6907

3965

57.4

Total till March 2014

8790

5290

60.2

Total till March 2015 9735 6419 Source : NABARD Bihar

65.9

274

The total disbursements made by NABARD to Bihar under 19 tranches of the RIDF loan are shown in Table 9.28. For many tranches, there is a huge gap between sanction and disbursement. Till March 2014, the total disbursements stood 61.0 percent which rose to 65.9 percent by March 2015. Such shortfall in disbursements of RIDF funds is a matter of concern for Bihar. The progress of RIDF during 2014-15 under tranche XIX is shown in Table 9.29. During this year, the RIDF projects in the state could create irrigation potential for 9.88 lakh hectares, besides building 72,605 meters of bridges and 6959 kms. of roads. The total value of all of these infrastructural gains was Rs 2210 crore. These projects also created employment potential for 3.43 lakh people. However, in respect of the generation of employment potential, Bihar’s achievements are very modest when compared to other states like undivided Andhra Pradesh, Madhya Pradesh, Maharashtra, Gujarat, Odisha, West Bengal or Uttar Pradesh. Table 9.29 : Estimated Benefits under RIDF –XIX as on March, 2015 Non-recurring employment (lakh man-days)

Potential States Irrigation (ha) Andhra Pradesh

Roads (km)

Bridges (m)

Value of Recurring production employment Rural road (Rs. crore) (No.) Irrigation and rural bridge

Others

2466638

34152

71134

5034

2092791

5597

5970

3738

Bihar

988366

6959

72605

2210

343437

406

4137

676

Chhattisgarh

505028

10809

31603

972

89306

1079

1132

86

Gujarat

2754717

20124

4346

1331

1914883

1670

990

1431

Haryana

1108730

3363

4903

1843

177070

765

479

234

Himachal Pradesh

130362

9733

22526

1023

790822

774

799

406

Jharkhand

311869

10871

102521

338

100075

419

1813

544

Karnataka

508125

41874

53234

1186

161780

1856

3378

1259

Kerala

343381

5281

32826

783

116758

446

886

716

Madhya Pradesh

1707926

16658

48082

6093

1257107

3853

2158

478

Maharashtra

1031425

29522

79629

1625

5215485

3718

3385

355

Odisha

2080345

8061

112624

3779

1250594

3412

4286

831

Punjab

1607981

10511

8606

7161

301230

1401

1265

1078

Rajasthan

798026

67295

14224

799

312740

1480

3627

4935

Tamil Nadu

650104

42946

85018

926

508305

735

4581

2769

Uttar Pradesh

6157325

29209

66610

8900

1885131

3482

2466

2524

Uttarakhand

223225

11638

18209

594

100990

581

1271

102

West Bengal

1450795

17092

21818

2523

955815

1390

3273

4762

25879995

396084

961171

47843

17911579

34174

50450

28530

Total

Source : NABARD Annual Report, 2015

275

9.6 Micro-Finance in Bihar The conventional anti-poverty programmes suffer from problems of delivery and are often unsuccessful in making a serious dent on poverty, especially the kind of poverty caused by the absence of a credit support for the poor households. This is particularly true in Bihar. In this scenario, microfinance is a potent alternative for poverty alleviation, through affordable, timely and adequate credit and other financial services for the poor people. In this background, the Self Help Groups (SHGs) and the SHG-Bank Linkage Programme (SHG-BLP), implemented by Scheduled Commercial Banks, Regional Rural Banks and Cooperative Banks, have emerged as the major microfinance programme in the country. As of March 2015, there were 77 lakh SHGs in India linked to the formal banking system with their savings balance of nearly Rs. 11,060 crore, compared to Rs 9900 crore in the previous year. The total bank loan disbursed to these SHGs during 2014-15 amounted to more than Rs 27,580 crore. In other words, the SHG-BLP has so far been one of the most preferred and viable models for financial inclusion of the hitherto unreached rural poor. Bihar, a slow starter, is gradually catching up with other states in both formation of SHGs and ensuring their bank linkages. The performance of SHGs in Bihar till 2014-15 is shown in Table 9.30. As of March, 2015, bank-linked SHG coverage in rural Bihar was 29.2 lakh households, down from 32.4 lakh a year before. The average savings of Rs 13,216 per SHG in Bihar was still Table 9.30 : Performance of SHGs in Bihar March 2014

Indicators

March 2015

Rural households covered (SHG: savings linked) (in lakh)

32.4

29.18

No. of SHGs having savings bank account (in lakh)

2.69

2.24

Average savings / SHG (Bihar) (Rs)

6127.0

13216

Average savings / SHG (India) (Rs.)

13321.0

14368

No. of SHGs provided bank loan

190171

189341

Amount of bank loan outstanding (Rs. lakh)

89814.2

102675.69

40036

65122

28400.0

47100.54

Average bank loan per SHG in Bihar (Rs. lakh)

0.70

0.72

Average bank loan per SHG in India (Rs. lakh)

1.75

1.69

7057.6

7130.35

7.86

6.94

No. of SHGs provided bank loan during the year Amount of bank loan (Rs. lakh)

Gross NPA (Rs. lakh) Percentage of gross NPA to total outstanding in Bihar Source: NABARD Bihar

below the national average of Rs 14,368, but the gap has considerably narrowed, compared to the last year. The average credit of Rs 72 thousand per SHG was, however, far below the national average of Rs 1.69 lakh. The total loans disbursed during 2014-15 to the SHGs by banks 276

amounted to Rs 471 crore, which was much higher than Rs 284 crore disbursed in the previous year. Their outstanding loans at the end of 2014-15 stood at Rs 1027 crore, higher than the corresponding figure one year earlier (Rs 898 crore). The non-productive assets of SHGs in Bihar declined marginally from Rs 71 crore in 2014 to Rs 70 crore in 2015. Such non-productive assets in 2015 constituted 6.9 percent of total outstanding loans. NABARD has identified 16 districts in Bihar for promoting and financing women SHGs through positioning an anchor NGO in each identified district. Table 9.31 shows the status of SHG-Bank Linkage in major Indian states in terms of the number of credit-linked SHGs till 2014-15. Bihar had 2.24 lakh SHGs at the end of 2014-15, about 2.9 percent of the country’s total. Their number was much higher last year (2.69 lakh). The total savings of these SHGs were Rs 297 crore and total bank credit of Rs 471 crore were made available to these SHGs during 2014-15. Table 9.31 : SHG-Bank Linkage in Selected States of India (March 2015) No. of SHGs with Bank Linkage

Savings of SHGs with Banks (Rs lakh)

Bank loans disbursed during the year (Rs lakh)

Andhra Pradesh

884508

262949.95

562314.81

Bihar

224469

29666.98

47100.54

Chhattisgarh

148293

17954.14

11107.29

Gujarat

215839

17543.01

26209.02

Haryana

41653

3651.08

4060.03

Jharkhand

82138

8492.52

3750.89

Karnataka

734304

130241.10

480337.12

Kerala

585471

64524.57

144477.29

Madhya Pradesh

225615

23901.55

30532.80

Maharashtra

717860

90380.82

89053.23

Odisha

452068

49703.80

127888.29

Punjab

25870

2235.11

3364.99

Rajasthan

245903

14379.43

28920.80

Tamil Nadu

987282

103456.83

401673.11

Uttar Pradesh

392276

35475.66

65820.57

West Bengal

760941

127347.93

150504.66

7697469

1105984.07

2758231.06

Total

Source : Status of Micro Finance in India, 2014-15, NABARD

The year-wise progress made in credit linking of SHGs is shown in Table 9.32. During 2014-15, banks have credit-linked additional 51,403 SHGs within the state. This is an improved performance compared to 2013-14, when only 41,714 SHGs were bank-linked. 277

Table 9.32 : Growth of Micro-financing in Bihar Year

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Number of SHGs linked to bank during the year

30241

26055

22714

30297

41714

51403

Source : State Level Bankers' Committee

Table 9.33 shows the microfinancing activities of the Regional Rural Banks in Bihar in 2014-15. During that year, the three Regional Rural Banks have together financed 51,403 SHGs (51.4 percent of target). The total amount of credit disbursed during the year was Rs 284 crore, compared to Rs 177 crore during the previous year, which was about 60 percent of the total credit of Rs. 471 crore disbursed to SHGs in Bihar in 2014-15. Table 9.33 : Microfinancing by RRBs during (2014-15)

RRBs

Target

Bihar KGB

SHGs with Bank-linkage Credit Percentage Sanction Amount Achievement (Rs lakh)

4414

3719

1865

84.25

Madhya Bihar KGB

11482

10575

5946

92.10

Uttar Bihar KGB

20700

17290

9508

83.53

Total for Bihar

100000

51403

28352

51.40

Source : State Level Bankers’ Committee

Some major handicaps that exist in linking the SHGs to banks include the absence of reputed NGOs and low awareness of the stakeholders about the benefits of SHG lending. As noted by NABARD, despite the unique characteristics of SHGs and their accomplishments so far, several issues continue to affect the programme like inadequate outreach in many regions, delays in opening of SHG accounts, delays in disbursement of loans, impounding of savings by banks as collateral, non-approval of repeat loans even when the first loans were repaid promptly, multiple membership, limited interface with bankers, and monitoring. It is expected that initiatives taken by NABARD and other implementing banks in organising sensitisation programmes shall result in a more favourable environment towards the SHG movement in the state. The State Level Bankers' Committee in Bihar had identified certain factors that have contributed to the success of SHGs in other states and which are, by and large, absent in Bihar. These factors are — attitude of the rural people and their education, availability of professionally-run quality micro-finance institutions, conducive regulatory framework, government support, and channelising government assistance through the SHGs. It will be necessary to remove the above constraints to ensure the spread of the SHG movement in the state. The SHG-BLP was given a renewed thrust by NABARD with the launch of SHG-2 to address some of these bottlenecks. All the SCBs, RRBs and CCBs are part of this renewed thrust. The focus of SHG-2 would be on voluntary savings, cash credit as a preferred mode of lending, scope for multiple borrowings by SHG members in keeping with the repayment capacity, and avenues to meet higher credit 278

requirements for livelihood creation. Further, the scheme will also promote SHG Federations as non-financial intermediaries, audit and rating of SHGs as part of risk mitigation system, and strengthening the monitoring mechanisms. 9.7 Financial Inclusion The Reserve Bank of India had instructed to provide banking facilities in all the unbanked villages in Bihar, irrespective of population criterion by March, 2016 (instead of the earlier Table 9.34 : Roadmap of Financial Inclusion (September 2015) Sl. No.

Name of Bank

Number of Banking Outlets opened through Number of allotted Bank Banking Other Total village Branch correspondent modes Scheduled Commercial Banks(SCB)

1

State Bank of India

3719

33

3686

0

3719

2

Central Bank of India

2207

14

2193

0

2207

3

Punjab National Bank

3855

16

3839

0

3855

4

Canara Bank

621

18

603

0

621

5

Uco Bank

1467

0

1460

7

1467

6

Bank of Baroda

582

41

541

0

582

7

Union Bank of India

346

0

346

0

346

8

Bank of India

1123

0

1123

0

1123

937

20

917

0

937

13

0

0

13

13

5

0

4

0

5

9

Allahabad Bank

10

Andhra Bank

11

Corporation Bank

12

Dena Bank

10

10

0

0

10

13

Indian Bank

121

0

121

0

121

14

Indian Overseas Bank

27

0

26

0

27

15

Oriental Bank of Commerce

47

3

44

0

47

16

Syndicate Bank

73

18

31

23

73

17

United Bank of India

428

0

419

8

428

18

Vijaya Bank

7

0

7

0

7

19

IDBI

1

0

1

0

1

15589

173

15361

51

15589

Total for SCB

Private Bank 1

ICICI Bank

3

1

2

0

3

2

Jammu Kashmir Bank

3

0

0

3

3

3

HDFC Bank

1

0

1

0

1

7

Total Private Bank

1

3

3

7

4328

0

4547

1757

0

1792

1

Madhya Bihar Gramin Bank

Regional Banks 4547 219

2

Bihar Gramin Bank

1792

3

Uttar Bihar Gramin Bank

35

5408

24

5384

0

5408

Total for RRBS

11747

278

11469

0

11747

Total for Bihar

27343

452

26833

54

27343

279

deadline of August, 2015). A Roadmap for such financial inclusion was prepared by the banks in Bihar, in consultation with the state government. The Roadmap aimed at expanding banking outlets, either by opening new branches, or by appointing Banking Correspondents, or through ICT-based and other modes. Table 9.34 presents the number of villages allotted to each bank under this Roadmap and it further shows that its target has been fully achieved by September, 2015. Out of 27.3 thousand villages that were financially included, the majority (98.1 percent) were included through Banking Correspondents; new bank branches accounted for 1.7 percent of the villages, and other modes 0.2 percent of the villages. Among the three types of banks, private banks had an insignificant role in this plan for financial inclusion. The Scheduled Commercial Banks had the largest role, which together extended banking facility to 15.6 thousand villages (57.0 percent) and the Regional Rural Banks played that role for 11.7 thousand villages (43.0 percent). 9.8 Corporate Climate in Bihar Tble 9.35 shows the total number of limited companies registered in major states of India during 2013-14. From this table, it can be seen that 2366 limited companies (2.4 percent of the country’s total) had registered themselves in Bihar in 2013-14, compared to 1566 in the previous Table 9.35 : State-wise Number of Registration of New Limited Companies during 2013-14 States Andhra Pradesh

No. of Companies Public

Private

Authorised Capital (Rs crore) Total

Public

Private

Total

82

7093

7175

151.39

3065.36

3216.75

128

2238

2366

74.31

271.31

345.62

33

512

545

11.95

104.37

116.32

Gujarat

126

5009

5135

314.11

2101.25

2415.36

Haryana

62

3405

3467

93.4

640.89

734.29

8

293

301

2.35

34.38

36.73

Jharkhand

99

941

1040

3628.46

206.23

3834.69

Karnataka

41

5953

5994

23.85

994.62

1018.47

Kerala

55

2865

2920

112.62

603.08

715.7

Madhya Pradesh

80

2169

2249

140.55

269.56

410.11

361

17325

17686

612.45

3881.83

4494.28

Odisha

38

1239

1277

131.3

164.99

296.29

Punjab

86

1182

1268

45.4

221.68

267.08

Rajasthan

43

3506

3549

4035.33

270.9

4306.23

Tamil Nadu

162

6293

6455

223.47

1371.33

1594.8

Uttar Pradesh

419

7431

7850

3353.7

532.03

3885.73

19

467

486

9.75

64.55

74.3

961

8976

9937

250.46

1269.76

152