Where The Best Minds Meet
 
Home | Everything | News | Blogs | Jobs | Ask Questions | Submit Article or Question | About Biharscoop | Register

Login

Make a new account

Username:
Password:
www.thejamalpur.com

Who's Online? (15)

. Vishnu Kumar
. Unregistered Visitors (14)

Note: You may cloak yourself from appearing here in your Display Preferences.

Recent Comments

. Rules are only for the subjects and not for Rulers (Bihar Putra)

. Re: (outdoorh)

. Re: (09009)

. Investment in Bihar (achauhan2002)

. reforming bihar (rohitneta)

. Looking for Investment in Bihar (bhishm4u)

. mungur (khyrahTakooree)

. This is the fact (Rajesh Kumar)

. Investment in Bihar (abhishekpandey)

. Investment in Bihar (abhishekpandey)

Recent Member Diaries

Please Don't think in a different way always
by Rajesh Kumar - December 13

How to use the "Free Member Diaries" feature.
by Rajesh Kumar - August 20


More Diaries...

Front Page

Monday February 22nd
. Slim Chance For Early Polls In State (0 comments)
. Bihar To Work For The Settlement Of Nomadic Tribes (0 comments)

Sunday February 21st
. Bihar's Economic Miracle: Real, But Fragile (0 comments)
. Excise Dept Targets Rs 100cr Addl Revenue (0 comments)
. 11 Power Plant Proposals Okayed (0 comments)
. 200 Posts Lying Vacant In Medical Colleges (0 comments)

Friday February 19th
. Japan Keen To Invest In Bihar's Buddhist Circuit (0 comments)
. CCS Approves Opening Of Army's Second Officers Training Academy In Gaya (0 comments)
. Bihar Govt Inreases Ex-Gratia Payment (0 comments)
. Nalanda To Be Developed As Tourist Hub (0 comments)

Tuesday February 16th
. Governance: RTI, Mum's The Word, The Centre Plans To Manacle The RTI Act (0 comments)

Sunday February 14th
. Online RTI Applications For NRIs! (0 comments)

Friday February 12th
. Bihar To Set Up Farmer Information Centres With Toll Free Numbers (0 comments)
. Fresh Rules To Discipline State Govt Employees (0 comments)
. Bihar PCC May be Reconstituted (0 comments)
. IIT Patna Gets Land (0 comments)

Wednesday February 10th
. Bihar Mulls Bill To Rein In Private Coaching Centres (0 comments)
. Special Courts For Corruption Cases In Bihar (0 comments)

Tuesday February 9th
. Bihari Youth To Develop Course Curriculum For US Varsities (0 comments)
. AMU's Special Centre In Bihar On Fast Track (0 comments)
. Season Of Hope For Congress In Bihar (0 comments)
. Low-Cost Ranchi IIM To Start In June (0 comments)

Monday February 8th
. Several Bridges In Critical Stage (0 comments)
. Why You Will Have To Live With SMS Ads (0 comments)

Sunday February 7th
. Bihar Seeks Reimbursement Of Amount Spent On National Highways (0 comments)
. Bihar CM For Centralised Procurement Of Arms, Ammunition (0 comments)
. India To Launch Helpline For Tourists (0 comments)

Friday February 5th
. Land Distribution In Bihar Highly Polarized: Report (0 comments)
. Revisiting Traditional Irrigation System May Solve Bihar's Agricultural Problems (0 comments)
. Non-Resident Indian (NRI) Resumes Pile Up At Indian Human Resources (HR) Firms (0 comments)

Older Stories...

Bihar Needs To Look At Own Entrepreneurs

Bookmark to: Linkarena Bookmark to: Digg Bookmark to: Facebook Bookmark to: Reddit Bookmark to: StumbleUpon Bookmark to: Furl Bookmark to: Spurl Bookmark to: Google Bookmark to: Technorati Bookmark to: Newsvine Bookmark to: Blinkbits Bookmark to: Netvouz Information
Bihar is rich in human resources. It turns out unskilled and semi-skilled workers with the same rapidity as IIT engineers and civil servants. Long is the list of top engineers, doctors, civil servants and technocrats from the state. Business schools, medical and engineering colleges always have a more than proportionate participation from Bihar.

Yet, the state is not even a blip on the radar screen of the corporate sector. Human resource-intensive sectors like information technology and information technology-enabled services have shunned the state. In fact, Bihar does not feature in the game plan of most corporations. Apart from Hindustan Unilever, no other blue-chip company has of late put money in the state. Trucks come laden with stuff from neighbours like West Bengal, Uttar Pradesh and even Madhya Pradesh but go back empty. Essential commodities are all imported from other states and, therefore, sell at a premium. Cement, for instance, in Bihar is at least 5 per cent costlier than in the neighbouring West Bengal.

In the past, industry's bugbear was the poor law and order situation in the state. There was nobody to guarantee the safety of executives posted there. The Nitish Kumar administration has made Bihar a better place. "If you go to any park at Patna in the morning, you will find big cars of every description," according to Chief Minister Nitish Kumar. The point is important. Earlier, such was the terror of kidnappers and extortionists that people had clamped down on any expenditure that could give away their wealth. Not any longer.

When Kumar took over the affairs of the state four years ago, there was hope that the state's defunct sugar industry would revive. Bihar contributed a fourth of the sugar produced in the country before Independence. It now accounts for less than 3 per cent.

Source:Business-standard Bihar needs to look at own entrepreneurs

Click On "Full story" For More...

By ugesh sarkar, Section Business
Posted on Sat Jan 02, 2010 at 12:09:46 AM EST
Unfortunately, companies that were brought in by Kumar to invest in the sector have developed cold feet. One has even forfeited the earnest money of Rs 5 crore. There just isn't enough sugarcane to feed the mills, investors say. Set up the mills and the sugarcane will follow you, Kumar counters. It's a chicken-and-egg situation. Of course, state-owned Hindustan Petroleum Corp is putting up an ethanol unit in Bihar but experts doubt its commercial viability, given the current high price of sugarcane. And with one year to go for elections to the state Assembly, nobody will be in a hurry to put his money in Bihar.

Such is the nature of politics in the state. Not everybody is sure that there is widespread political buy-in on economic reforms. Caste-based politics still holds strong in the state. What if Kumar does not come back to power? Will his successor have the same enthusiasm for maintenance of law and order or development of infrastructure? These are questions that bother corporations.

Kumar puts the blame at the doorsteps of the Centre. Bihar, he says, has not been compensated for the loss of natural resources and industry to Jharkhand, coal linkages for proposed thermal power stations in the state have not been cleared, and there is no clarity on ethanol. The solution, he says, is to grant the status of "special category state" to Bihar.

The bottom line for Bihar is that it will have to depend on its own entrepreneurs for investments -- once locals build a strong foundation, outsiders are bound to follow. Industry estimates suggest that local entrepreneurs have invested close to Rs 1,500 crore in the recent past. Though not large by any yardstick, it does show that there is latent entrepreneurship in the state. But they don't know what to do.

When Kumar came to power, he brought several top industry leaders to the state. Road shows were held across the country. The idea was noble. One or two big names could have got others also to invest in the state. But that didn't happen. Instead, it scared local businessmen. Will we be able to stand competition from large players, most of them thought. Most local businessmen complain that the bureaucracy takes a lot of time to put into action announcements made by Kumar and his colleagues in the ministry. Orders have taken up to two years to get notified.

The biggest problem they face is finance. The state is hugely under-banked. And since banks, state-owned as well as private, now follow what the market dictates, there is little the state can do. Businessmen are at times asked to fork out twice or even thrice the loan amount as collateral security. This perhaps is the reason why microfinance outfits like SKS Microfinance have done so well in Bihar. Their customers are large in numbers and non-performing assets are low. Clearly, banks can take a lesson or two from them.

< Mahadalits To Get Money Gor Homestead Land In Bihar | Rahul To Woo Bihar, Launch IYC Membership Drive >

Biharbrains Community
In search of Brains of Bihar
info@biharbrains.org
www.biharbrains.org biharbrains -subscribe@yahoogroups.com