bihar: a land of immense opportunities for agro and food processing

1. Bihar: A land of Immense Opportunities for Agro and Food Processing

3. Changing Bihar : Priorities Roads � Agenda for 11th Plan Up gradation of 1600 km of National Highways to 4 lanes Two laning of all State Highways Upgradation of all major District Roads Total estimated budget : Rs. 18,000 Crores Power � Agenda for 11th Plan 2 Thermal power plants 6 Hydro power plants Total Installed Capacity planned : 4000 MW

4. State Investment promotion board (SIPB) :Approved Projects

5. Food Processing Sector �Identified as Key to industrial growth A vision document for Food processing sector in the state for next 10 years prepared Vision Document Identified wide range of interventions Development of 2 Integrated Food Zones/ Food Parks Setting up of 100 Rural Agri Business Centres Development of Rice/Makhana/Maize clusters Setting up of Modern Abattoirs and Fish Processing Units Setting up a Nodal Quality Assurance/Product Dev. Centre Investment potential of around Rs. 1500 crores identified in food processing sector

7. Potential for Agro and Food Processing

8. Opportunities for Rice Based Industries Modern Rice Mills Some famous fine varieties: Katarani, Sona Chood Thriving milling industry in Rohtas, Buxar, Kaimur, Aurangabad, Bhojpur Bihar is one of the largest markets for milled rice Current milling capacity in the state not enough to meet the demand Husk Based Power Plants Large quantity of Paddy production Productivity of Bhabhua one of the highest in India � 3.11t/ha

9. Opportunities for Maize Based Industries Starch, Poultry feed, corn oil, flakes, flour unit In Bihar maize is grown throught the year but Winter maize (Rabi) unique to the state Khagaria, Madhepura, Katihar, Purnea, Saharasa, Begusarai are main maize producing districts Insignificant processing in the state Major Supplier to maize based industry located in Northern and Eastern India

10. Fruits & Vegetable Based Processing Litchi Processing Bihar produces 75% of the litchi in the country Highly perishable fruit, processing center should be close to production Shahi litchi flavour is absent outside the Muzaffarpur litchi cluster Only 5000 MT of processing capacity in Bihar, not even 5 % of estimated production Litchi producing area well connected by road and rail Other Fruits and Vegetable Processing Banana ripening and processing: About 10 lacs MT production in Vaishali and Bhagalpur region Makhana: 20, 000 MT of production in districts like Darbhanga, Madhubani, Purnea and Katihar

11. Jute Processing State is a major jute producing region Accounts for 13 % of jute production, second after WB Purnea, Araria, Kishanganj, Katihar, Supaul and Madhepura major jute producing districts A comprehensive business plan made for balanced growth of the sector Processing identified as a weakness, less than 5 % processed in State State Offers immense opportunities for setting up of facilities Value added products, diversified jute products etc. One Jute park under PPP mode coming up in Purnea with an estimated investment of Rs.125 crores

12. Tea Sector Prospects Area under Tea Cultivation increasing State Govt. coming with a special policy package to promote tea cultivation and processing in the State Policy to provide : To provide tea processing an industry status Backward linkage for the tea processors Incentive as per the existing land ceiling act Grant on plant & machinery for tea processing units

13. Sugar Sector Prospects Traditionally State has been an important sugar producing region State Government trying to revive 19 closed sugar mills Reliance and HPCL among Bidders awarded mills for revival in the first phase Fresh bids being invited for other mills Ethanol producion to be focus of new investment plans

15. Enabling Policy Environment Industrial Incentive Policy 2006 Stamp duty and registration fee waiver in lease/sale/transfer of land for setting up Units VAT reimbursements @ 80% of deposited amount for 10 years (max. 300% of capital investment) Incentive provisions for Zero VAT items also available (max 70 % of installed capacity) Reimbursement of 50% capital investment on plant & machinery for captive power generation/Diesel generating set with no upper limit 25% VAT reimbursement for existing industries for 5 years Abolishment of APMC Act Bihar Single Window clearance Act 2006

16. Special schemes for food processing sector

18. Scheme for Integrated Development of Food Processing Sector

19. Scheme for Integrated Development of Food Processing Sector

20. Scheme for Integrated Development of Food Processing Sector

21. Scope and Coverage of the Scheme Land & Factory building, plant and machinery, R& D quality control center, warehousing facilities, training center, trade and display center, water supply, electric supply including captive power plant, effluent treatment, telecommunication lines etc. The cost of land considered for project cost would be the registered value of the land Note: For expansion and capacity increase projects, benefits available only if expansion is at least 50% of the present capacity. Scheme for Integrated Development of Food Processing Sector

22. First Installment : 10 % of the assistance, as advance, on final approval of the project Second Installment: 20 % of the assistance, as advance, after the financial closure of the project and award of contracts for civil work and placing of orders for proposed plant and machinery Third Installment: 40% of the assistance after the utilization of the previous installments and after the proportionate expenditure (i.e. 30% of the share of Individual Investors/SPVs) has been incurred by the individual investors/SPVs Fourth Installment: 30% of the assistance after the utilization of the previous installments and after the completion of the project Scheme for Integrated Development of Food Processing Sector

23. Scheme For Food Parks

24. Scheme For Food Parks

25. Scheme For Food Parks

26. Scheme For Food Parks Release of Assistance

27. Approved food processing projects

28. ADB Project : Modernisation of Agricultural Markets APMC Act repealed by State Government Aimed at modernisation of agricultural markets and growth of food processing sector Erstwhile APMC markets presently unregulated but functional 95 such markets spread across the state Total land area available more than 1300 Acres Many such markets strategically located close to major cities Modernisation of these markets to be focus of Agribusiness Infrastructure Development Investment Program (AIDP) of Asian Development Bank

29. Modernisation of Agricultural Markets AIDP is flagship Program of Asian Development Bank in Agriculture Sector in India and in line with the 11th Five Year Plan objectives Program aimed at funding critical infrastructure projects in agricultural sector Around 20 erstwhile major APMC mandis may be selected in the first phase for developing them as part of integrated value chains in PPP framework Viability Gap Funding (VGF) as one of the key options for funding along with State Government Schemes for these value chains

30. IFC- Investment Climate Reform Programme Aimed at improvement in overall investment climate Focus on Agricultural produces � specially maize and sugarcane Detailed Value Chain mapping done Agricultural Competitiveness Partnership being worked on Task forces on maize and poultry are being proposed To facilitate Public-Private-Dialogue (PPD) Similar task force is being proposed for sugarcane sector

31. IL&FS-CDI Ltd as Project Management Agency (PMA) Preparation of techno-feasibility reports for various clusters Identification of entrepreneurs & helping them in finalizing the business plan Preparation of project profiles alongwith entreprenuers for submission to PAMC Preparation of DPRs on behalf of entrepreneurs and submission to PAMC with its recommendation Assistance to entrepreneurs in accessing bank finance Monitoring progress of projects and assisting PAMC in release of eligible grants.

32. Thanks