Industries in Bihar
Bihar has agro-based industries like Sugar Industries, Jute Industries, Silk Industries, etc, Forest-based Industries like Paper and Pulp Industries, Timber Industry, etc, Mineral-based Industries like Cement Industry, Crusher Industry,Oil Refining Industry,Glass Industry and many other industries.
There are some important support organisation like Udyog Mitra,District Industries Centre and Bihar Industrial Area Development Authority (BIADA), which are working for better industrial development in Bihar. After reorganisation of Bihar about 82% concentration of industries went to Jharkhand, thus Bihar has only 18% industries in the state. As per Economic Survey of 2018-19, the contribution of the industrial sector to Gross State Domestic Product (GSDP) in Bihar is 11.3% in the year of 2017-18.
Classification of Industries (Bihar GK in English)
On the Basis of Raw Material
In Bihar on the basis of raw material industries are classified into three groups such as:
1. Agro-based Industries 2. Forest-based Industries
3. Mineral-based Industries
On the Basis of Size
On the basis of size, industries are divided into large scale industries and micro, small and medium industries:
Micro, Small and Medium Industries
➤ These industries have great possibilities in the state. These are labour intensive units while large scale industries are capital intensive units.
➤ The district industrial centres have been established with the aim to set-up small scale units in the state. These industrial units are comprised of ornaments, plywood, incense stick industry, leather, carpet and metal-work industries.
Large Scale Industries
➤ After reorganisation of Bihar, most of the large scale industries went to newly created Jharkhand. In the lack of basic industrial structures, the development of large scale units remained at a slow rate in Bihar. The large scale industries are comprised of sugar, jute, cement industries and so on.
Forest-based Industries
Despite of having minimum forest resources, still Bihar has some forest-based industries in the state. These :
Lac Industry
➤ It has been developed in the districts of Gaya and Purnea. Lac insects are reared on Indian jujube tree (Ber) and Butea monosperma (Palash) tree in the districts of Nawada, Gaya, Banka, Munger, Sheikhpura and Purnea.
Paper and Pulp Industry
➤ Major paper factories are located at Dalmianagar (Rohtas district) and Jitwarpur (Samastipur) but now these have become sick industries. Small paper mills are located at Barauni, Patna and Darbhanga.
➤ Raw materials for manufacturing of paper are obtained from bamboo, Sabai grass, soft wood, sugarcane bagasse, rice bran and so on.
➤ Dalmianagar Paper Factory in Rohtas district is famous for the production of high quality paper, tissue paper, printing paper, ticket board, pulp board and simplex board and so on.
➤ ‘Ashok Paper Mills Limited’ in Darbhanga and ‘Thakur Paper Mills Limited’ in Samastipur were important paper industries in the state before 1990s but now these industrial units are not in existence.
Wood Industry
➤ Wood industry has been developed in the regions of Terai in North Bihar like East Champaran, West Champaran, Araria, Kishanganj and Bhagalpur and South Bihar like Gaya, Nawada and Rohtas. Thus, North Bihar has maximum wood industries.
➤ Asian Plywood Industries is a large scale industry which is located in Hajipur.
Other important regions are Narkatiaganj, Samastipur, Gopalganj, Jogbani, Katihar and Muzaffarpur.
Bamboo and Cane Based Industry
➤ Bamboo is produced in Northern parts of Gaya district and Northern Bihar regions adjoining to Terai regions, whereas cane is found in the forests of North-West Champaran district.
➤ Bamboo and cane goods are produced in small and cottage industries in Bihar.
Bamboo is extensively used in construction work. Due to its low cost, durability and multiple uses, bamboo is known as Poor man’s Timber.
Agro-based Industries
Due to having varied agro-climatic conditions, the cultivators in Bihar produce a variety of crops such as oilseeds, fibre, fruits, vegetables, sugarcane, tea, tobacco, etc.
Thus, the state has enormous potential for the development of agro-based industries depending upon various kinds of agricultural production.
Important agro-based industries are given below:
Sugar Industry
➤ The first sugar manufacturing industry for the production of white sugar was set-up in 1840-41 by the Dutch at Lauriya in Bihar but it failed.
➤ The first successful sugar mill was set-up by the British in 1903 at Marhaura town in Saran district of Bihar.
➤ At the time of Independence, Bihar was the second largest producer of sugar after Uttar Pradesh in the country. The state produced about 22.7% sugar of India at that period. At that time, India had 66 sugar mills out of which Bihar had 33 sugar mills, but now Bihar produces only 2% sugar in the country.
➤ As per Economic Survey of 2018-19, there are 11 sugar mills in Bihar, out of which 9 are in the private sector and 2 are in the public sector. These sugar mills are Bagaha, Harinagar, Narkatiagunj, Majhaulia, Sasamusa, Gopalganj, Sidhwalia, Riga, Hasanpur, Lauriya and Sugauli.
➤ Harinagar Sugar Mill (West Champaran) is the highest producer of sugar in the state.
➤ The main reasons for less number of sugar mills in the state are production of inferior quality of sugarcane, old sugar mills, lack of capital investment, inadequate government policies and so on.
➤ For the promotion of sugar mills in the state, the State Government has established the Bihar State Sugar Corporation (BSSC) in the year 1974.
➤ Bihar ranks third in the country in terms of number of sugar mills after Uttar Pradesh and Maharashtra.
➤ To increase productivity and recovery percentage of sugar, a programme has been implemented under Mukhya Mantri Ganna Vikas Yojana for the financial year 2017-18.
Jute Industry
➤ The concentration of jute industry is found in the North-East of Bihar. Four districts of Eastern Bihar are important producers of jute namely Purnea, Araria, Kishanganj and Katihar districts.
➤ Bihar ranks second in the production of jute in the country after West Bengal.
➤ Jute products are diverse from gunny bags to home decor. Floor mats, carpets, fold purse, etc are the main items manufactured.
➤ In order to increase jute production, National Jute Manufacturers Corporation Ltd (NJMC) was set-up in 1980. Its headquarters is located at Katihar.
Food Processing Industry
n The Bihar Industrial Investment Policy, 2016 has placed high importance on agro-based industries in the state. In this policy, food processing sector has been included as one of the 10 priority sectors. Under this policy, special attention will be given to perishable commodities such as fruits, vegetables, fish, etc.
n After reducing the wastage of these commodities, farmers would be able to get better price and thereby increase their income by 30%.
n As per Agricultural Road Map (2017-22), Bihar has about 413 Food Processing Units, out of which 260 units are working properly.
Jute Park
A Jute Park has been established in Maranga (Purnea) with an investment of ` 42.36 crore under the Public-Private Partnership (PPP) mode. Two private units of this park are functioning well. The products of these units are jute yarn, jute clothes, jute twin and other similar products. This Jute Park has generated direct employment for 500 people and indirect employment for 1,000 people.
Cotton-Textile Industry
➤ The largest development of cotton-textile industry is seen in Gaya and Bhagalpur districts of Bihar. Manpur region of Gaya district is the major centre of Cotton-textile industry. About 1,000 powerlooms have been established here.
➤ In Bhagalpur and Darbhanga districts, the cotton textile industry has been set-up as handloom industry.
➤ Patna, Madhubani, Munger and Bhagalpur have more than 40 hosiery factories. The cotton textile industrial units import cotton from Kanpur and Ahmedabad.
➤ Bihar State Textile Corporation Limited was established in the year 1970.
➤ Lungis of Bhagalpur, Obra of Aurangabad and carpets of Daudnagar are famous all over the country and have great demand. Other important cotton textile centres are Phulwari Sharif, Dumraon, Munger, Madhubani and Muzaffarpur.
Silk Industry
➤ It has been developed in the districts of Bhagalpur, Gaya and Vaishali. Bhagalpur is known as Silk City.
➤ Bihar Silk and Textile Institute was established in the year of 1922. Three types of silk are produced in Bihar such as mulberry, tasar and eri.
➤ To promote silk industry in the state 4 regional offices have been set-up in Bhagalpur, Muzaffarpur, Gaya and Darbhanga districts.
➤ For the promotion of Tasar sector and generation of employment in rural areas, ‘Mukhyamantri Tasar Development Project’ was started in Bihar in 2012-13. The aim of this scheme is to plant Arjun and Asan trees in the districts of Banka, Munger, Nawada, Kaimur, Jamui and Rohtas and in some water logged areas in North Bihar. Eri silk rearing is confined to Begusarai district. Arjun and Asan trees are very important for sericulture.
➤ Mukhyamantri Kosi Mulberry Scheme was started in the year 2016-17. The silk yarns produced under this scheme have been given the brand name of Kaushiki.
Under this scheme, seven districts in Kosi region have been selected for promotions of Mulberry production namely Saharsa, Supaul, Madhepura, Araria, Kishanganj, Katihar and Purnea.
Khadi and Village Industries
➤ The Khadi and Village Industries Commission (KUIC) has the responsibility of promoting rural Industries. There are 84 khadi organisations in Bihar, in which 65 are currently functional.
➤ Khadi fair was organised in Arrah, Rajgir, Muzaffarpur and Bhagalpur to promote khadi organisations.
Tobacco Industry
➤ Tobacco is used in pan-masala cigarettes, bidis and so on. Tobacco is produced in the districts of Darbhanga, Begusarai, Muzaffarpur, Saran, Vaishali, Samastipur, Patna, Bhagalpur, Munger and Purnea.
➤ The oldest tobacco manufacturing unit was set-up by Raj Enterprises in 1905 at Dilawarpur in Munger. It was later incorporated by Indian tobacco company (ITC). ‘Zarda’ is a form of tobacco which is produced in Muzaffarpur.
Tea Industry
➤ Tea industry in Bihar was started in 1990s. It is grown mostly in Kishanganj district, which is the largest tea producing district in the state and has tea plantation over 50,000 acres of land.
➤ More than 4,000 tonnes of tea is grown every year in Bihar. There are 7 tea processing plants in Kishanganj, with an annual output exceeding 2,300 tonnes. There is still a scope for another 50 new tea processing plants in Kishanganj, that could help tea cultivators need not ferry the tea leaves from the neighbouring North Bengal.
➤ The State Government has announced subsidies and incentive package for new tea processing plants.
Dairy Industry
Bihar State Milk Cooperative Federation was established in 1983 which has played a pivotal role in the development of dairy industry in Bihar. It provides a number of services to milk producing households like artificial insemination, deworming of cattle, etc. Some milk cooperatives in Bihar :
➤ Deshratna Dr. Rajendra Prasad Milk Union, Barauni
➤ Vaishali Patliputra Milk Union, Patna
➤ Tirhut Milk Union, Muzaffarpur.
➤ Vikramshila Milk Union, Bhagalpur.
➤ Mithila Milk Union, Samastipur.
➤ Shahbad Milk Union, Arrah.
Mineral-based Industries
Important mineral based industries :
Oil Refinery and Chemical Industries
➤ Barauni Oil Refinery was set-up in collaboration with Soviet Union (Now Russia) and Romania in July 1964 at Barauni (Begusarai). It is connected with Naharkatia Oil Region of Assam through a 1,159 km long pipeline. Besides, it gets crude oil from Algeria, Iraq and Malaysia. It is also linked with Haldia and Paradeep ports.
➤ Besides Oil Refinery at Barauni, there are thermal power plant, a fertilizer manufacturing unit and many small industrial centres.
➤ A factory of Hindustan Fertilizer Corporation is located in Barauni which is based on nitrogen fertilizer. Naphtha and gypsum are used as raw materials to produce ammonium sulphate and super phosphate fertilizers. It is the biggest nitrogen based plant in Bihar which was established in 1976.
➤ Pyrites Phosphate and Chemicals Limited (PPCL) is located at Amjhore in Rohtas district which is based on pyrites minerals. It uses pyrites to produce sulphur and phosphate fertilizers.
Cement Industry
➤ Important centres of cement industry are Banjari and Dalmianagar of Rohtas district. Kalyanpur Cement Limited, Banjari was set-up in 1937 and Shri Cement Plant was set-up in Aurangabad.
➤ The government has proposed a large scale unit of cement in Aurangabad (2014-15) and Bhabua (Kaimur) (2013-14).
Crusher Industry
➤ In crusher industry/factory stones or large rocks are reduced into smaller rocks, gravels or rock dust by a machine known as ‘Crusher’.
➤ The Southern hilly regions of Bihar have granite and gneiss rocks. Thus, this industry has been developed in the districts of Munger, Jamui, Gaya, Nawada, Aurangabad, Rohtas and Kaimur.
Glass Industry
➤ Important centres of glass industry in Bihar are Patna, Darbhanga and Bhagalpur.
Sand, silica sand, limestone, sodium sulphate, potassium carbonate and barium oxide are raw materials of this industry.
➤ These raw materials are found in the Southern parts of Bihar. This industry produces many useful items like bangles, bottles and so on.
Other Important Industries in Bihar
Other important industries in Bihar :
Leather Industry
➤ Bihar has immense scope for the development of leather industry as it has a sizeable animal population of the country.
➤ The state is known for best quality goat skins, cow hides, buffalo skins and calf skins.
➤ There are 7 markets in Bihar for hides and skins i.e. Patna, Arrah, Aurangabad, Munger, Muzaffarpur, Katihar and Purnea.
➤ Arrah is a major market of buffalo hides, whereas Muzaffarpur for buffalo’s calf skin and Patna for goat skin.
➤ Muzaffarpur, Barauni and East Champaran have leather tanning industries.
Rail Coach Factory
➤ The state has rail coach factory namely, ‘Bharat Wagon and Engineering Company. Limited at Mokama in Patna district. This is a Public Sector undertaking (PSUs) of the Central Government which produces railway wagons.
➤ It was set-up in the year 1978, which came into existence by merging of two private companies namely Arthur Butler Company Limited (Muzaffarpur) and Britannia Engineering Company Limited (Mokama).
➤ Earlier it was under the Department of Heavy Industries and Public Enterprises but from 13th August, 2018, it came under the Railway Ministry.
➤ Jamalpur Locomotive Workshop is located in Munger district which manufactures railway goods. It was the first full-fledged railway workshop facilities in India, which was set-up by the East India Railway on 8th January, 1862.
➤ Carriage Repair Workshop was set-up in June 2003, at Harnaut in Nalanda district.
➤ Rail Wheel Plant was set-up at Bela in Dariapur block in Saran district in 2014. Its headquarters is located in New Delhi.
➤ The Diesel Electric Locomotive Factory, Madhepura is a joint venture of Alstom SA of France with Indian railway, which will be located at Madhepura district in Bihar. This factory aims to manufacture 800 high power locomotives over a periods of 11 years.
➤ A Diesel Locomotive Factory, Marhaura in Saran district in Bihar started manufacturing the locomotives from 2018.
Handloom Industry
➤ Handloom industry holds an important space in the industrial scenario of Bihar.
There are 2 apex level marketing organisations namely Bihar State Handloom Co-operative Union (Patna) and Bihar State Wool and Sheep Union (Patna).
➤ If one looks at the locational concentration of handlooms in Bihar, it is found that 15 districts are involved in different kinds of production.
➤ Apart from these, there are 6 more regional unions located in Nalanda, Sitamarhi, Siwan, Madhubani, Purnea and Bhagalpur.
➤ The State Government is taking immense interest in providing modern skills of weaving to the weavers of Bihar. For this purpose, 8 government industries are running which are located at Chakand (Gaya), Obra (Aurangabad), Kako (Jehanabad), Ambabagh (Bhagalpur), Amarpur (Banka), Nepura (Nalanda), Rajendra Nagar (Patna) and Barari (Bhagalpur).
Handloom Concentrated Districts in Bihar
| District | Products |
| Aurangabad, Rohtas | Woolen blanket, woolen carpet and sari |
| Banka | Tasar silk, exportable silk cloth |
| Bhagalpur | Silk, cotton, furnishing cloth, staple chadar, exportable silk and cotton cloth |
| Darbhanga, Madhubani, Sitamarhi | Fine cotton long cloth, dhoti, shirting |
| Gaya | Cotton and silk cloth |
| Kaimur | Woolen carpet, Banarasi sari |
| Nalanda | Ornamental curtain, bed cover, interior decoration material and ornamented cloth |
| Nawada | Tasar silk and ladies dress material |
| Patna, Siwan | Cotton cloth and furnishing cloth |
| Purnea, Katihar | Jute bags, jute-blended material, interior decorative material |
Source : Department of Industries, Handloom, GOB
Schemes Related to Handloom Industry
ChiefMinister’s Cluster Handloom Development Scheme The State Government has launched new scheme named Chief Minister Cluster Handloom Development Scheme in 2016-17 to provide the facilities to handloom weavers and Rangrej artisans. The following facilities are being provided under this scheme: – ` 15,000 for each weaver/rangrej artisan to purchase new loom/dyeing kits.
– corpus money of ` 5,000 per weaver for purchasing raw materials.
– ` 40,000 for construction of workshop.
BhagalpurMega Handloom Cluster Scheme The Central Government has sanctioned the Bhagalpur Mega Handloom Cluster Scheme for the benefit of weavers of Bhagalpur and Banka districts. Under this scheme, 10 block level clusters, each with a Common Facility Centre (CFC), two dye houses, one design studio and product development centre have been sanctioned by the Central Government. The National Institute of Fashion Technology (NIFT) Patna is assisting the scheme with cluster monitoring and technical assistance.
Ordinance Factory
➤ Ordinance Factory, Rajgir (in Nalanda) was sanctioned by the Central Government in the year 2001. It is Asia’s first unit to establish modern technology in the field of propellant manufacture of Bio-Modular Propellant.
Kattha (Catechu) Industry
➤ Khair tree (Acacia catechu) is found in abundance in the Shiwalik mountainous region. Kattha is extracted from khair tree wood. Bettiah and Gaya have Kattha manufacturing industries in Bihar state.
Major Industries and their Locations
| Industry | Location |
| Alcohol Industry | Sultanganj, Manpur, Munger, Patna, Pachrukhiya and Marhaura (Saran) |
| Bihar State Scooters Limited | Fatuha (Patna) |
| Bihar Wagon and Engineering Company Limited | Mokama, Muzaffarpur (Cabinet announced the closure in August, 2017) |
| Blanket Industry | Gaya, Purnea, Aurangabad and Motihari |
| Cement Industry | Banjari and Dalmianagar, Aurangabad, Patna |
| Cigarette Factory and Gun Factory | Munger |
| Cotton Textile Industry | Gaya and Bhagalpur |
| Footwear Industry (Bata India Limited) | Mokama |
| Glass Industry | Patna, Darbhanga and Bhagalpur |
| Handloom Industry | Madhubani, Bhagalpur, Bihar Sharif, Gaya, Patna and Munger |
| Iron Industry | Gaya and Purnea |
| Jute Industry | Purnea, Araria, Kishanganj, Katihar and Samastipur |
| Lac Industry | Gaya and Purnea |
| Leather Industry | Mokama, Begusarai, Gaya, Muzaffarpur, Digha( Patna) |
| Match Stick Industry | Katihar |
| Mining Industry | Aurangabad |
| Paper Industry | Samastipur, Darbhanga (not active) |
| Raw Silk | Katihar, Purnea and Manoharpur |
| Sindur Factory | Lakhisarai |
| Sugar Industry | Marhaura, Chanpatia, Sugauli, Sakri, Bihta, Garaul, Motipurand Warisaliganj |
| Tasar Silk | Bhagalpur |
| Tobacco Industry | Dilwarpur (Munger), Gaya, Arrah, Bihar Sharif, Vaishali, Buxar, Lakhisarai, Patna, Saran, Purnea and Darbhanga |
| Utensils Industry | Siwan and Bihta |
| Industrial Towns in Bihar | ||
| Town | District | Industries |
| Bagaha | West Champaran | Paper Industry |
| Bhagalpur | Bhagalpur | Tasar (silk) Industry and Handloom Industry. |
| Digha | Patna | Leather Footwear and Alcohol Industries. |
| Dumraon | Buxar | Cotton Textile and Lantern Industries |
| Gaya | Gaya | Sugar, Lac, Cotton Textile and Leather Industry |
| Hathua | Gopalganj | Ganga Vegetable Oil Factory |
| Jamalpur | Munger | Railway Workshop |
| Lohat | Madhubani | Sugar Mill (not active) |
| Marhaura | Saran | Sugar and Chocolate Manufacturing Factories |
| Mehsi | East Champaran | Button Manufacturing Industry |
| Mokama | Patna | Footwear Factory |
| Narayanpur | Muzzaffarpur | Medicine Industry |
| Patna City | Patna | Sindur, Gulal and Fire Cracker Manufacturing Units/Industries. |
| Riga | Sitamarhi | Sugar Mill |
| Samastipur | Samastipur | Sugar Mill (not active) |
| Tandwa | Aurangabad | Blanket Manufacturing Industry |
Major Public Sector Undertaking of Bihar
| Name of Undertakings | Establishing Year |
| Public Utility Service | |
| Bihar State Electricity Board | 1958 |
| Bihar State Hydroelectric Power Corporation | 1982 |
| Bihar State Road Transport Corporation | 1953 |
| Bihar Water Development Corporation | 1973 |
| Productive Units | |
| Bihar Industrial Area Development Authority | 1960 |
| Bihar State Agro-Industries Development Corporation | 1966 |
| Bihar State Leather Industries Development | 1974 |
| Bihar State Sugar Corporation Limited | 1974 |
| Finance Service | |
| Bihar State Credit and Investment Corporation Limited | 1975 |
| Bihar State Film Development and Finance Corporation Limited | 1983 |
| Bihar State Financial Corporation | 1954 |
| Bihar State Minorities Financial Corporation | 1983 |
| Bihar State Panchayati Raj Financial Corporation | 1974 |
| Service Sector | |
| Bihar State Exports Corporation Limited | 1974 |
| Bihar State Food and Civil Supplies Corporation Limited | 1973 |
| Bihar State Handloom and Handicrafts Corporation Limited | 1974 |
| Bihar State Khadi and Village Industries Board | 1956 |
| Bihar State Tourism Development Corporation Limited | 1980 |
Industrial Regions in Bihar (Bihar GK in English)
When several manufacturing industries tend to be concentrated in a particular area thus, that region becomes an industrial region. The concentration of industries at such places depends upon some favourable factors like availability of raw material, favourable climate, transportation facilities and human resources (skilled and semi-skilled labour), which help in the development of industrial region. As Bihar is almost devoid of minerals thus, some industrial regions have been developed at distant places on the basis of agricultural products, forest resources, limestones and so on. Important industrial regions of Bihar are given below:
Gaya-Guraru Industrial Region
➤ It is agro-based industrial region, where cotton textile industry has been set-up in Gaya and sugar mill is located in Guraru region. Sugar mill of Guraru has been shut down.
➤ Manpur in Gaya is an important centre of handloom industry. Due to adjoining mountains stone crushing industry has also established in Gaya district. Tilkut manufacturing and tobacco industries have also developed in this area.
Son Valley Industrial Region
➤ This industrial region lies in the Son Valley and Kaimur plateau region. This region is rich for its limestones, sandstones and forest resources.
➤ It is the most prosperous industrial region of Bihar, which has many modernised industries. For example, Dalmianagar (Rohtas) has many industrial units of cement, paper, sugar, chemicals, vegetable oil and lumbering.
South-Eastern Bihar Plain Industrial Region
➤ This industrial region lies in the Eastern part of South Bihar plain, which covers Lakhisarai, Munger and Bhagalpur district of Bihar.
➤ It includes important industrial centres like gun and cigarette factories of Munger, railway workshop in Jamalpur (Munger), silk and tasar factories of Nathnagar (Bhagalpur).
➤ Apart from these, it also has rice and flour mills, furniture making and stone crushing activities.
Barauni Industrial Region
➤ It is one of the most developed industrial regions in the state.
➤ This region has many modernised industries such as oil refinery unit, chemical fertilizer manufacturing unit, thermal power plants, petro-chemical units and dairy industry.
➤ Barauni Oil Refinery gets its raw material from Assam oil region through pipelines.
The region also has chemical fertilizer factory which is based on naptha by production.
South-Western Bihar Plain Industrial Region
➤ This industrial region is located in the Western part of the South Bihar plain and cover districts of Patna, Buxar and Bhojpur.
➤ In this region, leather factory, manufacturing of rail boggies, iron sheets and iron rods manufacturing industries are located in Mokama, sugar industry is in Bihta, leather industry/factory in Digha and cotton textile centres in Buxar and Phulwari Sharif. Patna city has glass industry, bakeries and pulp manufacturing units.
North-Western Sugar Industrial Region of Ganga Plains
➤ It is located in North-Western part of Bihar in the Ganga Plain region. This region has favourable geographical conditions for sugarcane production thus, it is a major region for sugar industry.
➤ This region covers East and West Champaran, Siwan, Gopalganj and Saran districts which have many sugar mills such as Marhaura, Chanpatia, Maharajgunj, Gopalganj, Pachrukhi, Hathua, Narkatiaganj and Chakia.
Rice Industrial Region of Terai Belt
➤ Rice mills have been developed on a large scale in Terai belt of Northern border areas of Bihar.
➤ Important rice mill centres of this industrial region are Narkatiaganj, Raxaul, Bergania, Sitamarhi, Janakpur road, Jainagar, Jhanjharpur, Jogboni and Forbesganj and so on.
Policies Related to Industrial Establishment (Bihar GK in English)
Bihar Industrial Investment Promotion Policy (BIIPP), 2016
➤ The objectives of this policy are to develop adequate infrastructure, prioritising core sectors with comparative advantages, promoting advanced technology and skill development, comprehensive and competitively structure package of assistance/incentives and promotion of balanced regional development.
➤ The policy has pronounced various measures for the creation of enabling infrastructure during the policy period of 5 years.
Some of the key measures include:
– Promotion of Amritsar-Kolkata Industrial Corridor.
– Establishment of new industrial areas and expansion of existing industrial areas, air cargo complex and container freight terminal.
– Promotion of integrated manufacturing clusters.
– Establishment of gas pipeline network.
– Increase in the supply of quality/reliable energy.
– Establishment of Common Facility Centres (CFCs) in the potentialMSME clusters.
– Promotion of private industrial parks.
– Promotion of private participation for increasing availability of industrial land.
Bihar Start-up Policy, 2017
➤ The Bihar State Government has launched the Bihar Start-up Policy in March 2017, to foster innovations and promote innovation led entrepreneurship in the state. This policy envisions Bihar to emerge as the most preferred destination for start-ups by leveraging the potential of local youth through a conducive start-up ecosystem.
➤ The main features of this policy include funding and technical handhold support initiatives that are synchronised with various stages of start-up business cycle.
➤ The policy envisages many provisions for additional support to prospective entrepreneurs who are the SC/ST/Women/Differently-Abled.
Major Industrial Institutions in Bihar
The state of Bihar has some important industrial institutions which look after the promotion of industries in the state such as:
Udyog Mitra
➤ It was created in the year 2004, under the Society Act, 1860 after merging of Industrial Data Bank and Single Window System.
➤ It was created under the aegis of the Department of Industries to help prospective entrepreneurs in establishing industries.
➤ It is also associated with the preparation of monitoring reports of schemes being implemented by the District Industries Centre, (DICs).
➤ Under the Cluster Development Scheme of Government of India, the work on the development of 13 clusters is being taken up by Udyog Mitra. It is also the implementing agency for National Mission for Food Processing, (NMFP)
Bihar Industrial Area Development Authority (BIADA)
➤ BIADA was created under the statutory provisions of the Bihar Industrial Area Development Act, 1974 to promote industrialisation in the state of Bihar. The important functions of BIADA : – To acquire land to be allotted to the investors for establishment of industrial units.
– It develops necessary infrastructure for industrial development such as roads, power and water connections, etc.
➤ The 4 regional offices of BIADA are located at Darbhanga, Patna, Bhagalpur and Muzaffarpur.
District Industries Centre (DIC)
➤ The Department of Industries set-up the District Industries Centre (DIC) as a nodal agency for helping entrepreneurs to set-up industries in the state.
➤ The DICs give special emphasis on micro, small and medium enterprises.
➤ It is also the principal implementation agency for Prime Minister’s Employment Generation Programme (PMEGP).
Office of Investment Commissioners
➤ The Bihar Government set-up the office of Investment Commission and located it in Mumbai, which is the Commercial Capital of India, in order to encourage ‘Make in Bihar’ and facilitate private investments in the state.
➤ Till 31st December, 2017, it has got many investment proposals such as for super speciality hospital, cement and food processing.
➤ The office also got substantial amount of proposals for investment in the sectors like energy.
Infrastructure Development Authority (IDA)
➤ The Bihar State Infrastructure Development Enabling Act, 2006 is a comprehensive legislation for rapid development of physical and social infrastructure in Bihar.
➤ The Infrastructure Development Authority (IDA) was constituted under this Act on 27th April, 2006, as a nodal agency for Public-Privated Partnership Projects in the state.
➤ The IDA has executed various infrastructure projects such as National Institute of Fashion Technology (NIFT), Patna and Aranya Bhawan, Patna.
