Mineral Based, Textile and Tourism Industry in Bihar and Supporting Institutions and Schemes

Saturday, September 5, 2020

Although Bihar Bihar lags in mineral resources but in terms textiles and tourism Bihar has very bright scope. The only need is to liberalise policies and their implementation in the state regarding establishment of new firms in the state. 

Mineral-Based Industries

1. Mining and Quarrying 

Although mining activity is very limited in the state due to deficient mineral resources in the state, in recent years revenue collection was increased significantly. Revenue collection from mining and quarrying during 2018-19 was 1556.77 crore (against the target of 1600 crore which was 43.8% more than that in 2017-18. This is happened due to various positive steps taken by the government.
The sources of revenue collection were sand, works department, stone and crusher, bricks and others. The government used geo-maping application to track revenue collection from brick kilns, which enhanced the revenue collection significantly. It also reflects growth in construction works.
But the state government has also been pursuing sustainable sand and stone mining policy to prevent disastrous effect on environment.

2. Cement Industry

The first Cement factory in Bihar was established in Chhotanagpur, Bihar (now in Jharkhand), because both Calcium Carbonate and Coal are present are present in huge amount there.  Which are essential components required to manufacture cement. But after division of the state, Rohtas remained the only district where cement was produced.

Currently in Bihar, Cement factories are located mainly in Dalmia Nagar (Rohtas), Bhabhua, Patliputra, etc.

Calcium Carbonate reserves in Bihar is about 289 million tonne out of which 154 million tonne can be used to produce cement. Despite large reserves of Calcium Carbonate in Bihar, production of cement is only 0.50 million tonne/year mainly due to lack of sufficient demand, inadequate power supply, logistics issues and lesser urbanisation.

3. Fertilizer Factory

In Bihar largest fertilizer company was established in 1976 in the name of Hindustan Fertilizer Corporation Limited in Barauni with the capacity of about 1000 tonnes/day. But closed in 2002 after it was declared sick by the cabinet committee on Economic Affairs. One more plant was established at Amjhor, Rohtas in 1990 in the name of Pyrite, Phosphates and Chemicals Limited (PPCL). This factory was using pyrite ore present in Rohtas for manufacturing fertilizer.But this company was also closed in 2010 due to it's weak performance.

But a new ray of hope was emerged when cabinet committee decided to reestablish the fertilizer factory in Barauni using the land of erstwhile Hindustan Fertilizer Corporation Limited (HPCL) in 2017. This project was initiated with the collaboration of many public and private entities like NTPC, L&T etc.

  • This factory is scheduled to be operational by May, 2021.

Textile Industry

1. Handloom and Powerloom

To encourage the cultural tradition of weaving the government of Bihar brought many schemes to boost the Handloom and powerloom sector in the state which resulted into development of new Handloom production centres, which not only make handloom products for domestic market but also export to other countries.

Currently there are 13 centres in the state where handloom or powerloom is utilised to manufacture various kinds of goods. These are given below:-

Districts Handloom Products
Bhagalpur Tassar Silk, Cotton, Exportable, Linen, Furnishing cloths and Staple Chadar.
Banka Tassar Silk, Exportable silk cloth and Cotton towel.
Nalanda Ornamental curtain, Bed covers, Interior decoration material and Ladies dress material.
Gaya Cotton long cloth, Bed sheets and towels.
Nawada Tassar Silk and ladies dress materials.
Madhubani Fine cotton cloth, dhoti and shirting.
Aurangabad & Rohtas Woolen blanket, wooden carpet and Sari.
Kaimur Woolen carpet, Banarsi Sari etc.
Patna & Siwan Cotton clothes and Furnishing Cloth.
Patna & Siwan Jute bags, Jute blended materials and interior decoration materials.

2. Silk Industry

Bihar has a great potential of silk production. in Bihar mainly three types of silk is being produced i.e. 

  1. Mulberry
  2. Tassar
  3. Eri(Castor)

During 2018-19 the production of mulberry, and Eri cloths were declined by 575 against the production 2017-18. This was attributed to decline mulberry and Eri cocoon production during 2018-19. 

Tourism Industry in Bihar

When tourism in Bihar came into minds of people (national or international), there is  a general perception that only some of the historical sites like Bodhgaya, Rajgir, Nalanda and Vaishali are important.

To remove such perceptions Government of Bihar, planned as many as eight tourist circuits in the state -

i. Buddhist Circuit, ii. Jain Circuit, iii Ramayan Circuit, iv. Shiv Shakti Circuit, v. Sufi circuit, vi. Sikh Circuit, vii. gandhi Circuit and viii Eco Circuit.

To promote tourism in the state, the State government allocated generous funding to the Department of Tourism. In 2019-20 a sum of Rs. 275 crore was allocated which was almost three times as the allocation in previous financial year (2018-19). 

Good tourism policies of the Government of Bihar led to increase in the number of tourist arrivals in the Bihar from 183.6 lakh in 2011 to almost double 336.21 lakh in 2018 with the annual growth rate of 7.8%.

The number of foreign tourists also increased. The annual rate of increase in foreign tourists is about 1.8% . But most of the tourists come to Bihar mainly for religious and heritage purposes. Eco-Tourism in Bihar is lagging, which has very good potential in the state.

Supporting Institutions and Schemes for the Growth of Industries in Bihar

1. Bihar Industrial Area Development Authority (BIADA)

To promote Industrialisation in the state, BIADA was formed under the statutory provision of the Bihar Industrial Area Development Act, 1974,. BIADA is responsible planning for the development of industries in Bihar with it's four regional offices in Patna, Muzaffarpur, Bhagalpur and Darbhanga.

As of September 2019 BIADA had acquired cumulatively 6061.7 acres of land and out of that 3363.77 crores of land was already allocated to entrepreneurs.

  • The BIADA Act, 1974 was amended in 2017 to facilitate better working of the Authority.

2. Udyog Mitra

Udyog Mitra provides consultancy services to prospecting industrialists to establish and expand their industry, make required project profile, provide necessary information and address various queries and concerns that arise during the operation of industrial firms. It also organises seminars, capacity building activities and disseminate information about industries.

During 2018-19, Udyog Mitra provided consultancy services to 1834 prospecting industries.

3. Khadi and Village Industries

Khadi and Village Industries Commission (KVIC) along with Khadi and Village and industries Board (KVIB), Bihar promote Khadi and small and medium scale industries in Bihar.

These bodies disseminate information on newer skills, innovative technology and research and Development.

KVIC is also responsible for handling scheme of fund Regeneration fo Traditional industries (SFURTI) and Prime Minister's Employment Generation Programme (PMEGP) started in 2008.

4. Chief Minister Micro and Small Industries Cluster Development Scheme

Under this scheme and Detailed Project Report (DPR) was prepared to establish common facility centres for 8 clusters were approved by the state level committee. Till the preparation of the Report of Economic Survey,2019-20, Rs. 17.96 crore has been granted for the establishment of Facility Centres at 7 clusters. under this Scheme, and Apparel part at Bihta (Patna), a Leather goods complex (Muzaffarpur) have been proposed. Besides these DPR of a Makhana Cluster in Supaul and Sanitary Pad cluster in Lodhipur, Sabaur, Bhagalpur have been approved by the state level committee.

Under Industrial Incentive Policy-2011 and the Bihar Industrial Promotion Policy, 2016, and the state government to provide basic facilities to the industrial firms. Out of that 200 crore has been provided to the sales and Tax Department for VAT reimbursement.