Last Updated: October 27, 2007 00:42:05
Nitish Kumar
Patna, October 27: Once shunned by investors, economically backward Bihar is metamorphosing into an investment-friendly state, attracting funds worth Rs. 370 billion (over $9 billion) in the past two years.
Bihar Industries Minister Gautam Singh said that big industrialists have been showing keen interest after Chief Minister Nitish Kumar initiated some measures to develop the state's infrastructure.
'Bihar will attract investors in large numbers. The state is poised for development,' Singh told IANS.
'In less than two years, the state government led by Nitish Kumar had cleared 76 proposals for projects worth Rs. 370 billion,' state industries department principal secretary Vijay Raghavan said here Friday.
Most of the investments are in the power, sugar and cement sectors. Raghavan said proposals cleared by the state government include setting up of 14 ethanol plants, four each for maize processing and cement manufacture and three power plants.
Last week, Reliance Industries chairman Mukesh Ambani visited Patna and made it clear he was keen to invest in Bihar, which he said must develop for India as a whole to prosper.
'Bihar has a big potential for investment,' Ambani said here Friday after a meeting with the chief minister. 'We will to do something for the state's development.'
In the past one year, he is the fourth big industrialist to explore investment possibilities in the state.
Tata group chairman Ratan Tata, Mahindra & Mahindra group vice-chairman Anand Mahindra and Bharti group chairman and managing director Sunil Bharti Mittal have carried out investment reconnaissance in the state.
Raghavan admitted the value of investment proposals might be small for developed states, but it was an achievement for Bihar.
'This is the indication of a positive beginning. We hope more investments will flow into the state in the coming months,' he said.
'The state government has already given the go-ahead to a number of projects and is in the process of acquiring lands for the purpose. If these industries come up, they would provide direct employment to 90,000 people and indirect employment to nearly 500,000 people across the state.'
After coming to power in November 2005, the Nitish Kumar-led government had initiated measures to build the state's infrastructure, including roads, bridges and power, to attract investors. But more has to be done to develop infrastructure in rural areas.
The government has also prepared a land bank to make land available to investors.
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