Lalu lays foundation stone of rail factory at Dalmianagar

Sasaram (Bihar), Nov 23: Railway Minister Lalu Prasad laid the foundation stone wagon and coupler factory at Dalmianagar in Sasaram.

The proposed factory at Dalmianagar would manufacture high axle-load wagons and bogies couplers having 32.5 tonnes axle-load capacity.

Describing railways as the lifeline of the country, Lalu said the railway would generate electricity on its own to run its services.

The minister also inaugurated the 18-km Bikramganj-Piro rail section and Piro-Ara-Sasaram section.

PLIGHT OF BIHAR AND BIHARIS - by AGAST ANAND

All the pictures splashed across all the newspapers and television channels of Biharis getting bashed up ruthlessly has become a common feature and no longer evoke a shock or a feeling of disbelief. Yes, it raises a lot of questions. And all the questions coagulate
towards a single question and that is "WHY BIHAR"? (Including Jharkhand)

In the 1950s, Sir Paul Appleby visited India. He was an expert in public administration and came to India on an invitation by Pandit Nehru. He went on record to say, "Bihar is the best administered state in India and in the time to come it will become an example for
other states". Alas! Bihar lost out midway. It is high time to give it a thought and evaluate, why and where did we lose our way?

We gave the first president to India and that doomed us. Since then, we started considering ourselves as "INDIANS" and not "BIHARIS" or "JHARKHANDIS". But the "REST OF INDIA" did not think the same way. For them, we were and continue to be only Biharis, very different from the rest of Indians.

Out if the feeling of the same "INDIANNESS", we gave for free our rich mineral wealth to the rest of India so that their industries can run. It was like giving our family gold or milk-giving cow to them because we thought that they were our brothers. They took all
the minerals and despised us… hated us more and more as the time passed.

Had we sold these minerals directly to European countries or China, we would have been richer than Kuwait or any other country in the world and the rest of India would have come to Bihar seeking work. The constant and unrestricted drain of minerals is like allowing the parasites to suck our blood... to let the traitors rape our women and helplessly watch them having the last laugh. This was "Freight Equalization" Policy which cheated us of our wealth and left us high and dry.

Whenever it came to regional development, some states held the country on ransom. They threatened and blackmailed India of secession and in turn made the centre bow down before them and fulfill their demands. They therefore, got the maximum benefits.
Perhaps, they have always been lucky to have powerful regional leaders which unfortunately, Bihar has always lacked. Punjab dangled the same threat in the 50s and the dam which was to be built on river "Kosi" went to them as "Bhakra Nangal" project. Biharis again sacrificed for the sake of India… for their Punjabi brothers. But this sacrifice was not honored. The terrorists killed innocent, defenseless and hapless Biharis in 80s who had gone to Punjab to make out a living for themselves.

The land of North Bihar is so fertile that we would have become the "Rice Bowl" of the world. The "Green Revolution" which should have happened in Bihar happened in Haryana and Punjab.

Has any state valued our sacrifices?

We kept dying of HUNGER, POVERTY, FAMINE and FLOODS but still voted on caste lines. For us, the most important issue was being a Rajput, Bhumihar, Yadav, Muslim, etc. But remember, the world always thought of us as "DISPICABLE BIHARIS" who need to be wiped out of the map of India.

Out of caste considerations, we kept on giving leaders like Laloos, Rabris, Pappus, and Shahabbuddins and ensured that we disappear from the radar of development.

The rest of India was too happy to see all this because out of our destitution, we provided them very cheap labor which could run their mills, build their homes, work in their fields, look after their cattles, carry them on cycle rickshaws or rickshaws pulled by human
beings, and still tolerate their ill-treatment which they have always meted out to Biharis. It started with "BIHARI" becoming an ABUSE and this kind of treatment meted out to Biharis gradually started giving rest of India a "PERVERSE PLEASURE"

Suddenly now, this despicable Bihari who was best fit to be at his feet has started giving "COMPETITION" to the rest of India. Years of struggle has hardened a Bihari and made him very competitive. This has unnerved everybody. The violence which we now see against the Biharis is a "NERVOUS REPRESENTATION" of the rest of India because
somewhere in their heart of hearts they know that they cannot
compete.

We always gave preference to "CASTE" while electing our leaders who have always lacked "VISION". They have empowered themselves rather than empowering the people of ill-fated Bihar. We have always lacked a good regional leader of stature who could defend the needs of Bihar. Had the then politicians put their foot down on the issues
like Kosi River or freight equalization policy, Biharis would have never migrated to other parts of the country to seek jobs. We now need leaders who can not only restore our wealth but also our "PRIDE".

It is important for every Bihari to realize that unless and until we build our own home (Bihar), we will never have our pride anywhere outside.

Dear Biharis, it has been enough now. We have suffered a lot… we have been exploited a lot… we have tolerated all forms of atrocities in the past sixty years. Our pride is at stake. Now, the time has come to stand up and intensify our struggle to regain the respect and dignity which we deserve in India. Let us start making our efforts very much in the positive direction to build a new Bihar.

Let us create a people's movement to bring about a change... Let us act now for the resurgence of Bihar.

AGAST ANAND
agastanand@yahoo.co.in

Japan, Asian Development Bank pledge $1 mn aid to Bihar

Japan Special Fund (JSF) and the Asian Development Bank (ADB) on Thursday said they will provide a financial assistance of $1 million (Rs.40 million) to Bihar for improving the living conditions of the people.

JSF, aided by the Japanese government, would help the state in preparing a blueprint for the proposed Bihar Urban Development Project for cities like Patna and Gaya, according to a statement by the ADB. The state government would contribute $250,000 to the development projects, it added.

With the help of the grant, the state will assess the feasibility of all aspects of the development project, which will be financed with a loan from the ADB in coming years.

Bihar Pul Nirman Nigam : A recarnation

The mantra of modern India economy which began saying bid adieu to public sector enterprise way back in early ninties seems losing its charm as the post 2k scene is depicting a different story. With some work at grassroot level the leaders of Bihar shown their ability and managerial skill set. Be it the NDA or UPA in the center, leaders of Bihar has been taking profit out of it for the development in Bihar. The success story
in turnstiling almost dead or bad a/c state institution into a profitable one not just limited to Indian railways and Laloo Prasad yadav. India
could not sidelined the role of Ramvilas Paswan as telecommunication minister who changed the face of telecomm industry and the way country communicate today.


In recent time there is a very healthy competition among leaders of Bihar for development. With decades of false promises and maturity among voters with time the leaders now understands that untill the profit remain unreachable for the majority they can't be in power. The uprootment of RJD has been proved as a bacon for them.

With the onset of Nitish Kumar as CM, Bihar has witnessed the unprecedented development work in Bihar. There is also a slower but significant change in work culture too, resulting in timely execution of state duty. The most happening state institution here is none other than Bihar Pul Nirman Nigam.

The corporation which were running into the loss of 16 crores rupees just a couple of years back in 2005 is all set to make a whopping profit of rupees 30 crores. Knowingly most the work (including Patna Road Project) taken back from Tantia Construction has been given to the Pul Nirman
Nigam taking its success into account.

The most promising infrastructure development program 'Chief Minister project' in recent times in Bihar, has been assigned to the Pul Nirman Nigam Limited. A total of 519 small size bridges has to be constructed by the corporation under this Project. The mentor of this promising project, CM Nitish Kumar himself monitoring the project and satisfied with the work of Pul Nirman Nigam.

Though the role of government assistance to get back the corporation on track could not be overlooked. The ruling NDA govt. in Bihar helped the institution to its full. A percentage of 9% had been applied for a turnover of more than 250 crores. A managerial make over been done to the corporation and new young faces been introduced in the board. Almost a fresh team has been created and new secretary been appointed. This helped to expunge red tapism and changed the work culture in the corporation. These efforts began to take shape right in the first year and the corporation successfully made a profit of 5.96 crores in 2005-06. The acceleration continued and helped the institution touching the profit to a whopping 17.22 crores in the very next financial year 2006-07.

The officials in the Bihar State Pul Nirman Nigam having no hiccups boasting to touch the profit to the significant 30 crore marks. "We are working hard and there is no compromise with project deadline, there is no dearth of machinaries and work force", said an enthuasistic officer of Pul Nirman Nigam.

Contributed by an Anonymous Reader

An astonishing makeover of Bihar : Times of India reports

From a squeaky-clean room, Qamruddin Lari frantically calls collectors in 38 districts of Bihar. "I have been calling them since morning. So far I have reached 23. I have yet to speak to 15 more and send the file to the CM by tomorrow morning," says the gutkha -chewing, bearded man.

Lari is deputy secretary at the ministry of minority welfare and he has been tasked to report to CM Nitish Kumar on the status of hostels for minority students in Bihar.

The CM's query would not have surprised anyone had it been in any other state. But this is Bihar where, till a few years ago, files, especially those pertaining to "non-lucrative" sectors like minority development, gathered dust indefinitely.

No more. The person in command, Kumar, is presently basking in the image of vikaspurush (man of development), a tag accorded to him by the local press. The hottest buzz in Patna these days is not a scam, but the absence of it.

Image matters. So does attitude. Almost three years into his rule, Kumar is fanning a fresh wind of change. Now ministers are seen most of the time, not hanging around 1, Annie Road, the CM's official residence, but in their respective offices. Babus work independently of political interference.

"Now politicians don't arm-twist us. We don't take decisions under anybody's pressure," says A C Mishra, president of the Bihar Administrative Officers' Association which has over 1,500 members.

In fact the babus have become so "independent" that last week some peoples' representatives ( zilla parishad members) even sought the CM's intervention. Kumar's weekly janta durbar has emboldened the submissive subjects to raise their grievances openly.

"A captain must lead by example. While Lalu-Rabri had centralised power, Nitish has decentralised it," says Shivanand Tiwari, Kumar's close confidante and a Rajya Sabha MP. "Now a project costing up to Rs 25 crore doesn't need the cabinet's sanction. Earlier, even for a small amount like Rs 1.50 lakh, the CM's nod was necessary."

The local media are enthused, especially by the Nitish government's zero tolerance to criminals. The notorious politico-criminal nexus in Bihar is dying, as several politicians with criminal backgrounds are now in jail. The fast-track courts, set up by Nitish, have awarded lifetime terms to three sitting MPs—Mohammed Shahabuddin, Pappu Yadav and Surajbhan Singh. Anand Mohan, an ex-MP, has been convicted with capital punishment. So far around 6,000 criminals have been convicted by the fast-track courts.

The cops obviously are celebrating. "Earlier goons enjoyed political patronage and managed to get the filing of chargesheets delayed. Now the cops have been instructed not to get coerced," says a senior police officer.

So what's with Kumar that was missing during the 15-year rule of Lalu-Rabri? "It's in the political will. Lalu began beautifully with his empowerment of the downtrodden slogan, but soon he lost the track," says social activist Satyanarayan Madan.

Many say Bihar is seeing a change also because of the kind of company its CEO keeps. M T Khan, a member of Temple of Understanding, a Patna-based thinktank, says he once visited the residence of Ranjan Yadav, a former Lalu associate. "Lalu's kitchen cabinet operated from Ranjan's place. You could find all kinds of people there, including wheelers-dealers," reminisces Khan. "Lack of transparency in governance ruined the state."

However, Lalu's men refuse to buy the argument that Kumar's government is more transparent and performance-oriented. They blame the then governments in Delhi. "When we ruled, the Congress and the NDA were in power in Delhi. They didn't give us enough funds," says Shyam Rajak, RJD's national spokesperson. "Now there are no complaints of discrimination against Bihar, as our MPs lobby for funds. Even the UPA government is magnanimous with money for Bihar."

The difference lies the mindset. Lalu thrived on an aggressive but sectarian awakening among garib-gurba (dirt poor) while Kumar claims he has an inclusive agenda. The much-talked about Muslim-Yadav (MY) combination of Lalu is virtually in tatters as Muslims are increasingly casting their lot with Kumar. "Lalu didn't do anything for the Muslims except providing them security. But we need jobs too," says Reyaz Azeemabadi, editor of Urdu fortnightly Secular Front.

Both Lalu and Nitish have their favourite slogans.

"Lalu's slogan of Lathi mein tel pilao (oil your lathis) has been replaced by Nitish's Pen mein roshnaayee dalo (put ink in your pens). That explains the difference between the two regimes. One egged on violence while the other persuaded people to civilise," explains Shahid Ali Khan, a minister in Kumar's cabinet.

Bihar is set to see an educational revolution. A branch of IIT, a university of law, a management college, and an institute of fashion technology and revival of the ancient Nalanda University are some of the institutions that will help push the state back out of its abyss.

However, Kumar's detractors call it city-centred development. "It's a cosmetic change confined mostly to cities. We brought rodent catchers and rat eaters back from the margins. Nitish is pushing them back their hell holes," protests Nihora Prasad Yadav, RJD's general secretary (Bihar).

The critics may deny him the credit, but Kumar's diligence to revive the dysfunctional institutions is showing "startling" results. Nityanand Kumar, principal of a polytechnic college in Chhapra, visited some technical institutes in his area. "When I opened the labs, snakes and scorpions almost leaped on me. Many of the colleges existed only on paper and the authorities had not even bothered to open them for decades," says the polytechnic principal.

Now many skeletons are falling out of a cupboard kept secret by the previous regime. Will the good times last?

Bombardier, Alstom in fray for Rlys` unit in Madhepura Bihar

Global electric locomotive manufacturers - Bombardier Transportation, Alstom and Siemens from Europe and Kawasaki, Toshiba, Mitsubhishi and Mitsui from Japan - have shown interest in participating in the Indian Railways' ambitious Rs 2,000 crore project to set up an electric locomotive factory at Madhepura, Bihar.

The project will be implemented on a private-public partnership basis. The Railways will pick up a maximum of 26 per cent equity stake in a special purpose vehicle to be floated for the purpose. The remaining equity will come from the foreign partner.

The initial capital cost of the factory, as estimated by the Indian Railways, is Rs 1,000 crore. But industry experts say that the actual cost could go up in the range of Rs 2,000 to Rs 2,500 crore factoring in to account the increase in the prices of critical components like steel, iron, cement, fuel among others.

The top international companies were all present in a pre-application conference, which was held at Rail Bhawan on Friday.

Rajeev Jyoti, MD, Bombardier Transportation, said, "We are very eager to associate with the project. Since the agreement will be for a long-term basis, we will have to carefully evaluate the commercial, legal and technical aspects before participating in the bidding process."

Similarly, a top executive of Alstom Transportation, who did not want to be named, also expressed interest in participating in the proposed project. The factory will be set up on a build, own and operate (BOO) basis for the production and supply of a minimum of 660 locomotives over a period of eight years. and undertake maintenance thereof for a period of up to 20 years.

The Indian railways will be subscribing to its equity for up to a maximum of 26 per cent of the issued and paid up equity capital of the company,subject to a maximum of Rs 100 crore.

A Rail Bhawan official said that the project is receiving a good response from global locomotive manufacturers and they are expecting a minimum of 5-6 major players in the final bidding process.

The due date for the application of request for qualification (RFQ) is on July 18, 2008 and the shortlisting of applicants will be done within 15 days from the application due date.

With the commissioning of the project, railway officials say that the Indian railway will be upgrading its technology to the next generation, where the new locomotive which will have 12,000 horsepower will have the capacity to pull a higher pay load at a much higher speed of 100 km per hour. This will enable the Indian Railways to cut down their operational and maintenance cost.

thereby increasing productivity. Currently, Railways operate electric locomotives with 6000 horsepower capacity having a speed of 80 km per hour.

Ruia plans giant sugar unit in Bihar

Kolkata based P K Ruia Group, which also manages Dunlop India and Jessop India, would be building what it claimed would be the largest greenfield sugar complex in the country at Shariyatpur in East Champaran district of Bihar.
The Rs 800 crore project along with the capacity of crushing 10,000 ton of cane per day, would also include an ethanol manufacturing unit with a daily capacity of 240 kilolitres and a 50MW power plant.

The project would require 180 acres and 102 acres had already been acquired.

"We are keeping space for expanding the ethanol manufacturing capacity to 700-1000 kilolitres a day, if the state government allows the production of ethanol directly from the cane," said Pawan Kumar Ruia, chairman of the Ruia Group on the sidelines of a clourful foundation stone laying ceremony of the plant which was graced by several central government dignitaries and four elephants belonging to a local politician.

Out of Rs 800 crore project cost, Rs 120 crore would come from the sugar development fund (SDF), Rs 130 crore would be promoters' contribution and the remaining Rs 550 crore would be raised through bank loans.

This is the second sugar mill of the group after Kamlampur Sugar and Industries Ltd at Uttar Pradesh, which has a daily capacity of crushing 4000 ton of canes.

The chairman added that the company was keen to set up sugar mills in other parts of the country as well.

Later, Ruia said that the group company Falcon Tyres Ltd was planning to set up a factory as a greenfield project near Mysore.

"We have already identified land for the plant," Ruia said.

The estimated cost for the Falcon project was around Rs 500 crore and the capacity of the plant would be in the region of 150 ton a day.

"The plant would be near Mysore and the total cost of the project is likely to be in the region of Rs 500 crore," he added.

Bihar propelling India's telecom growth: survey

India, the second largest telecom market in the world, derives its growth in subscriber base from the otherwise underdeveloped states of Bihar and Madhya Pradesh, a survey by the Associated Chambers of Commerce and Industry of India (Assocham) suggests.

According to an Assocham state-wise analysis of mobile subscription released Tuesday, Bihar registered the maximum increase in annual telecom subscribers, marking a growth of 88.2 per cent in the fiscal 2007-08 as compared to the 51.1 per cent in 2006-07.

The total number of mobile phones in Bihar increased from 57,73,370 in 2006-07 to 108,69,459 in 2007-08.

Bihar was followed by Madhya Pradesh, which saw mobile phone users increase from 66,82,326 in 2005-06 to 124,91,306 in 2007-08. West Bengal registered an increase of 86.1 per cent in the subscriber volumes from 84.4 per cent in 2006-07. In volume terms, it increased from 5040111 in FY 2006-07 to 9381095 in the previous fiscal.

“While the metropolitan cities have reached their saturation point, the next phase of telecom growth in India is being driven by sub-urban places of Bihar, Madhya Pradesh, West Bengal and Orissa,” Assocham president Sajjan Jindal said.

According to the Assocham analysis, keeping aside Delhi, Mumbai, Kolkata and Chennai, smaller centres have registered an upsurge, thanks to the major players entering into the unexplored markets, growing middle class, low tariffs and economic mobile handsets.

Nalanda to move from ruins to riches

NEW YORK: Why would a mentor group associated with a university that will be founded in the boondocks of Bihar outside a village called Bargaon be meeting in Tokyo, Singapore, and now in New York?

Because the stakeholders come from far and wide, stretching from East Asia to the United States, and the university is no ordinary one. We are talking here of Nalanda, the famous Indian seat of learning and one of the world's first residential universities founded some 1500 years ago that in its heyday boasted of over 10,000 students and 2,000 teachers coming from Korea, Japan, China, Tibet, Indonesia, Persia and Turkey.

Last week, representatives from host nation India and the East Asian countries had their third meeting in New York to decide the nuts and bolts of reviving the original globalist school "aimed at advancing the concept of an Asian community...and rediscovering old relationships."

Chaired by Nobel laureate Amartya Sen, the mentor group decided on six faculties for what will largely be a post-graduate research university. They include a School of Buddhist studies, philosophy, and comparative religion; School of historical studies; School of International Relations and Peace; School of Business Management and Development; School of Languages and Literature; and, School of Ecology and Environmental Studies.

The mentor group also decided to select an eminent academician to be the Inaugural Rector an initial appointment period of five years to oversee the project, which is expected to start rolling in 2009 after the group meets again in New Delhi in August and gives its recommendation to the East Asian Summit in December. By then, countries are expected to write out the checks to revive one of the world's landmark learning centers.

The numbers are still fuzzy, but the founders are looking at an initial endowment of anywhere from $250 million to $ 1 billion, a modest start in an era when Harvard University's endowment stands at $35 billion ( see Indiaspora ).

"The idea is not to have a Harvard replica...and besides, the dollar still goes a long way in India," said Neelam Deo, India's consul-general in New York who hosted the meeting, adding that the aim of reviving the university was "to emphasize the importance of eastern intellectual endeavour and ensure that human aspiration is not be dominated by western imprint."

The oldest extant universities in the world -- in continuous operation -- date back to around 1200 years ago, and they are all outside the United States. The University of Al Karaouine in Fez, Morocco (founded 859 AD), is listed as the world's oldest, continually-operating, degree-granting university, followed by Cairo's Al Azhar University (975 AD).

European universities all came in the next millennium with Bologna (1088), Paris (1150), and Oxford (1167) listed as the oldest. Nalanda preceded all of them, having been founded around 450 AD under the patronage of the Gupta
emperors, although some records date it back to 500 BC around the time of Buddha. It functioned till 1193 when it was sacked by the armies of Bakhtiyar Khilji.

But now, with the economic weight of the world shifting again to the east, countries in the region appear keen to also gain intellectual heft. Although India, China, Japan and Singapore are the prime movers, even Australia and New Zealand are said to be keen to contribute to the Nalanda project.

Bihar seeks World Bank funds for rural roads

Patna, March 16 The government has sought funds from the World Bank to build all weather rural roads to provide connectivity to villages in the five districts of south Bihar where Maoists are active. “The government has sought loans from the World Bank. We are optimistic,” Rural Development Minister Narendra Narain Yadav said Sunday.

Yadav said the districts where the roads will come up are Gaya, Jehanabad, Arwal, Aurangabad and Patna.

“The government plans to construct 351 km of rural roads at an estimated cost of Rs.1.44 billion,” said Yadav.

In the last few years, whenever the government attempted to build rural roads, Maoist guerrillas created trouble and targeted officials, contractors and workers engaged in the task.

The fear of Maoists has put a stop to road construction in many rural areas.

Building a Better Future for Bihar

The devastating floods in Bihar remind us of the state’s special importance in India. Straddling the country’s heartland, and home to one of its largest and poorest populations, Bihar is the crucible in India’s battle against poverty. In many ways, Bihar’s journey on the road to development will play a major role in shaping the India of tomorrow.



In response to the people’s aspirations, the state government has begun to set the stage for rapid economic development. It has undertakensweeping policy reforms, sometimes moving ahead of the more progressive states in the country. Major initiatives have been taken to streamline the administration, attract industry, ensure easier credit and better prices for farmers, and to lay the foundation for bringing modern e governance services to the people. Challenging popular perception, women have won more seats in the state’s recent panchayat polls than were reserved for them. By all accounts, law and order has improved, and informal surveys show that many people see a change for the better.



Bihar already enjoys many natural advantages and opportunities. The River Ganges flows through its heart, bringing much needed water to its fertile farmland, especially during the long dry season. As the birthplace of the Buddha, the state has the potential to become a hub of world class tourism. Gaya already has an international airport, and Nalanda is slated to become a new university, reviving its ancient heritage as a renowned seat of learning. And, Bihar’s people, working in the public and private sectors across the country, are a valuable resource for the country as a whole.



With the stage now set for development, the World Bank has resumed support to Bihar after a gap of many years. A recent project for US$63 million, aptly called ‘Jeevika’, aims to light the spark of empowerment to help rural women start productive new livelihoods. The project will cover 4000 villages in Bihar’s poorest districts. Improving economic opportunities for poor and disadvantaged communities is particularly important in a state like Bihar where more than two thirds of agricultural families have little or no land whatsoever.



Yet, formidable challenges remain. Bihar is still the poorest state in the country with a per capita income that is half the national average. Forty percent of its 90 million people live below the poverty line, making it home to one of densest concentrations of poor people anywhere in the word. And as we are seeing again this year, Bihar’s northern areas are prone to recurrent flooding, while the southern areas suffer from frequent droughts. The state also compares extremely poorly with the rest of India on critical infrastructure issues – road transport, urban infrastructure, and power – all of which are essential for development. Huge investments are needed. And, although the vision for development is strong, state institutions that must implement this agenda need improvement.



While Bihar has a lot of catching up to do, there are signs of hope. If the current momentum for progress can be sustained, the state can hope to bring prosperity to its people. The road to development will now need the combined efforts of the state and the central government, the private sector, civil society, Bihar’s migrant population, as well as the international community.



The World Bank stands ready to help. Apart from our new rural livelihoods project, we are already partnering with the Government of India on implementing a number of national projects in the state – including the Sarva Shiksha Abhiyan which aims to enroll all primary-age children in school by 2010. Bihar also receives a significant share of three national highway improvement projects that are supported by the Bank and we will soon be helping the state to build a network of rural roads as part of the Pradhan Mantri Gram Sadak Yojana.



The Bank has also been helping the Government of Bihar to build technical capacity in a range of sectors, from public expenditure management, to the reform of the public distribution system. A Development Policy Loan to help the state implement its broad development agenda is also under preparation. Given the devastation wrought by the recent floods, we are looking at ways to expand our on-going technical support to the Government of Bihar for flood forecasting and management. And, as we move forward, we are working closely with the Asian Development Bank (ADB) and the United Kingdom’s Department for International Development (DFID) to define a joint framework for a coordinated approach to our assistance.

NTPC approves 73.41-bln-rupee investment for second stage of Bihar project

India's largest power utility National Thermal Power Corp Ltd (NTPC) said its board has approved an investment of 73.41 bln rupees as an appraised estimated cost for the second stage of Barh Super thermal power project in the eastern state of Bihar.

In a regulatory filing, the state-run company said the second stage of this project consists of the construction of two 660 megawatts units.

The project's first stage consisting of 3 units of 660 MW is under implementation, NTPC added.

Nitish urges Lalu to complete rail projects in Bihar

Hoping that Railway Minister Lalu Prasad would not announce any increase in passenger fares in the Railway budget for 2008-09, Bihar Chief Minister Nitish Kumar has urged Prasad to accord top priority to implementing railways projects in the state.

"We want that there should not be any increase in passenger fares," Kumar said while addressing a group of reporters last evening.

Urging Lalu to accord top priority to implement all the pending projects in Bihar, Kumar said the railway projects which were pending for the last four years, if implemented would benefit the people of the state.

"Usually, Lalu resorts to tricks and raise fares indirectly by altering the rules," Kumar charged and sarcastically remarked "Lalu gives from one hand, takes the benefits back from another."

Kumar, who himself had been the Railway minister during the NDA regime, said that it was only after some time people come to realise that they had been taken for a ride in the name of reduction of fare or freight cost.

On Lalu's promises to present attractive railway budget from the point of view of common man's interests, Kumar alleged that Lalu was making promises only to get approving thumping of desks on the floor of parliament.

ADB to lend 1.5 bn dollars for Bihar

Multilateral funding agency Asian Development Bank will lend about 1.45 billion dollars for the development of infrastructure and agriculture to reduce rural poverty in Bihar.

The bank would lend for the projects such as Agribusiness Infrastructure Development Project (about 250 million dollar), Power Sector Development Programme (500 million dollar), Urban Infrastructure Development Sector Programme (150 million dollar), state Roads Investment Programme (300 million dollar).

According to the ADB, 'India: Country Operations Business Plan 2008-2010', through Agribusiness Infrastructure Development Project poverty would be reduced through increased private partnership in agricultural marketing and integration of small farmers into organised value chains.

Recently global financing agencies, including the World Bank have expressed keenness to invest in construction, power, health, tourism and rural development in Bihar.

Head of the World Bank (WB), ADB, UK-based Department of International Development (DFID) and Japan Bank of International Cooperation (JBIC) had their first joint meeting in Bihar in the presence of Chief Minister Nitish Kumar in January.

According to Kumar, each of the 8,712 gram panchayat in the state required Rs 35-40 lakh for construction of a state secretariat-like building.

A whopping Rs 3,000 crore was estimated to be spent for construction of these buildings, which would be tremor-proof and have enough space to shelter those affected by floods.

SKS Microfinance to expand network across Bihar

SKS Microfinance, one of the world�s leading microfinance companies, plans to expand its operations to cover most districts in Bihar and reach out to 3 lac poor households by March, 2009. SKS started operations in Bihar in July 2006 and presently has a membership base of 70,000 poor households across 26 districts. It has three area offices in Gaya, Bhagalpur and Patna and 50 branch offices across the state.

The coming year, we will expand our operations to cover most of the 37 districts in the state. Bihar has over 1 core poor and low-income households across the state and we need to provide access to finance for these families. By March 09, we plan to extend Rs.210 crore loans to 3 lac households impacting 15 lac lives,� said Vikram Akula, CEO & Founder, SKS Microfinance.



SKS Microfinance currently serves 17 lac clients across 15 states and has disbursed nearly Rs. 2,000 crores in unsecured credit with a 99.8% repayment rate. SKS also provides life and health insurance products. It has 651 branches covering 20,000 villages and slums across the country and is adding 50 new branches and 1.5 lakh new clients per month.



Borrowers use loans for starting micro-enterprises, ranging from livestock, trade, services and agriculture. Returns on borrower enterprises average 100%, enabling them to earn income, build assets, and get out of poverty. SKS uses a lending model that was developed by Nobel Prize winner, Muhummad Yunus of the Grameen Bank in Bangladesh. The system involves forming groups of women who serve as guarantors for each other, thus enabling SKS to provide loans without taking any collateral from borrowers.

In FY 2008-09, SKS plans to disburse an additional Rs 5,200 crores to clients in nearly 40,000 villages and slums across the country. SKS also plans to add new financial services, ranging from other micro-insurance products to remittances.

In Bihar, SKS has disbursed loans worth Rs.55 crore and has a total outstanding of Rs.38 crore. It presently operates in Araria, Banka, Begusari, Bhagalpur, Bhojpur, Buxar, East Champaran, Gaya, Kaimur, Katihar, Khagaria, Kishanganj, Lakhisari, Munger, Muzaffarpur, Nalanda, Nawada, Patna, Purnia, Rohtash, Saharsa, Samastipur, Saran, Shiekhpura, Siwan and Vaishali.

We will be launching operations in Chapra, Sitamarhi and West Champaran in the coming months. We plan to increase our branch network from 50 to 140 and staff strength from 600 to 850 by March 09,explained K.V.Rao, Vice President, Member Services.

Loans flood for Bihar projects

Patna, Feb. 12: A group of joint international development partners comprising World Bank, Asian Development Bank and Department for International Development today granted a slew of development projects to Bihar.

The World Bank sanctioned a development policy on the basis of a loan-credit system to the tune of Rs 872 crore to support policy reforms being undertaken by the state.

The international bank, the Centre and the Bihar government signed an agreement to this effect on January 15.

Encouraged by the generous grant, chief minister Nitish Kumar, who had an hour-long meeting with the representatives of the Joint Development Partners’ Group, said: “Moved by the group’s response, we have agreed to take on more reform processes.”

“We are setting up a committee under the chairmanship of the chief secretary to monitor the reform process and the utilisation of the bank-sponsored funds,” he added.

The World Bank, said the chief minister, was also in the process of funding the Bihar Panchayat Strengthening project.

The project aims to improve autonomy, capacity and accountability of the panchayat raj institutions in rural pockets of the state.

The Asian Development Bank (ADB) has also agreed to finance construction of nine roads (820km) in Bihar.

Nitish conceded that the state was in the process to invite tenders for the projects. “The construction (funded by ADB) is likely to begin from June 2008,” he added. The government is also in discussion with the ADB to earn support worth US $ 500 million for electric power sector projects.

The Department of International Development (DID) today agreed to provide technical assistance worth US$35 million in this year itself to enable the state improve its governance and administrative reforms programme.

The DID also sanctioned US$100 million and US$150 million to improve its municipal governance and health sectors.

Expressing happiness over the sumptuous grants, aids and credits, the chief minister said the loans were possible because the government had created an atmosphere of development.

“The government’s improved functioning pegged world bodies to come together and support Bihar’s development initiatives,” he said.

Bihar's mega hydropower project given environmental clearance

Patna : Power starved Bihar's 126 MW capacity Dagmara hydropower project in Supaul district has got environmental clearance from the central government, official sources said Thursday.

The centre's nod has relieved the Bihar government, which is facing violent protests due to the worst power crisis the state has ever seen.

Three people were killed and at least two dozen injured in police firing in Kahalgaon town in Bhagalpur district Jan 18 when people were protesting against electricity outages.

According to sources in Bihar State Hydro Power Corporations (BHPC), the Ministry of Environment and Forests has found no environmental hazard with the setting up of the Dagmara hydropower project and has given its clearance.

The Asian Development Bank (ADB) had already agreed to provide Rs.4 billion for the project.

A senior BHPC official told IANS that work on the project would begin this year and would be completed in the next three years if everything went according to plan.

After the completion of the project, overall power situation in the state's Kosi region is expected to improve considerably.

Last September, an agreement was signed between the BHPC and the central government's Water and Power Consultancy Services Ltd. (Wapcos) for preparation of a detailed project report.

The project is estimated to cost Rs.6 billion.

Railways set to issue Rs25,000 cr tender- Selected Bidder to set up factory in Madhepura

The Indian Railways is getting ready to place a Rs25,000 crore order, its largest ever, for 1,000 electric locomotives that it will buy over eight years.
The company winning this order will also get to set a locomotive factory in Madhepura, Bihar, at a site provided by the railways, which will have a minority stake in this facility.

The order is likely to attract the interest of multinational firms such as General Electric Co., Bombardier Inc. and Siemens AG. Rajeev Jyoti, president and managing director of Bombardier Transportation India Ltd, said the firm would definitely bid for the tender for locomotives. Executives at GE India and Siemens India could not be reached for comment.

13,000-crore Plan for Bihar

NEW DELHI: The Planning Commission on Wednesday approved a plan outlay of Rs.13,000 crore for Bihar for 2008-09, which includes additional Central assistance of Rs.100 crore for “projects of special importance” to the State.

This decision was taken at a meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Bihar Chief Minister Nitish Kumar here.

It was also agreed that on the basis of mid-year performance and absorptive capacities, an additional outlay of Rs.500 crore, in the special package of assistance based on performance, can be included in the Annual Plan for the year 2008-09, taking this to an effective plan size of Rs.13,500 crore.

Mr. Ahluwalia complimented the Bihar Government on the major initiatives taken towards administrative reforms, decentralisation and simplification of procedures, delegation of powers and also focused attention towards implementation of flagship programmes launched by the Central Government, which has lead to acceleration in plan expenditure.

Efforts appreciated

Appreciating efforts being made for improving performance in the sectors of education, health and horticulture, Mr. Ahluwalia said the Commission was concerned about the problem being faced by the States in executing centrally-sponsored schemes and was looking forward to suggestions aimed at improving implementation by making guidelines flexible wherever necessary.

Attention was drawn to the industrial policy launched by the State Government in 2006 and it was pointed out that the policy skewed towards dependence on providing fiscal benefits in the form of subsidy and concessions for attracting investments. This was contrary to the policies being pursued by the Central Government which emphasises for creation of enabling conditions and removal of impediments.

Bihar Chief Minister Nitish Kumar said special plan has been formulated to bring about improvement in sectors like power, road connectivity, irrigation, forestry and watershed development. Social sector is being given top priority.

Next year, 31 per cent of the development funds would be earmarked for this sector. Irrigation and flood control will also get focused attention with over 13 per cent and 10.93 per cent allocations, he added.

Public funding

The State Government is working to raise the standards of living to the national average and beyond through inclusive growth with rural bias and gender focus, he said, and added that because of large gap in development, the State Government will have to depend more on public funding. The Centre should evolve district specific approach on programmes like National Rural Employment Guarantee Programme, Mr. Kumar added.

Bihar stir may power NTPC diversification

A citizens’ agitation in Bihar and the state government’s promise to look at the privatization of the state’s electricity utilities have provided NTPC Ltd an opportunity to diversify into power distribution—a logical extension of business for the Central government owned power generation firm, the country’s largest.

This could provide an impetus to the company’s plans for the distribution business. NTPC has been exploring the idea of entering the business and even formed a distribution arm, NTPC Electric Supply Co. Ltd, or NESCL. As part of its forward integration move, NTPC had earlier planned to set up distribution networks in Kanpur in Uttar Pradesh and Mangalore in Karnataka. Neither, however, have come about yet.


As the local population in Bihar continues agitating against the lack of adequate power in the state, chief minister Nitish Kumar, in a bid to contain the political backlash, on Monday said it was NTPC’s duty to provide power to Bihar. Kumar’s statements were made following an agitation, which led to the death of three people in police firing on Friday near the NTPC-owned 1,340MW plant in Kahalgaon in south Bihar.
NTPC has two plants in Bihar, but these are not owned by the state government and their output can only be accessed indirectly by the state from a central pool.
A generation utility located in any of the five power regions in the country supplies power to the region’s load dispatch centre. In Bihar’s case, it is Eastern Region Load Dispatch Centre, or ERLDC, from where the state electricity board (SEB) purchases power.

Bihar has a power generation capacity of 584MW, compared with a demand of around 1,400MW. The deficit is made up by accessing the central pool.

Following the chief minister’s remarks, NTPC is readying to move into power distribution, provided it is issued a power distribution licence by the Bihar State Electricity Regulatory Commission (BSERC), a state government body.

“The state government is trying to divert the issue. Supplying power to Kahalgaon is not our responsibility as it is the job of the Bihar State Electricity Board (BSEB). As per the law, we cannot distribute power. If they want us to do so, let them issue us a distribution licence and then we will consider it,” said T. Sankaralingam, chairman and managing director, NTPC.

The state government can do this only by privatizing power distribution.
Nitish Kumar, immediately after he become chief minister in November 2005, had promised to explore all options, including privatization, to revive the power sector in Bihar.

“BSEB is in a big mess with more than 51% power cut in Bihar. Our units at Kahalgaon are operating at maximum capacity. I will be visiting the state shortly to firm up our plans,” Sankaralingam said.

State government officials do not agree with NTPC’s view and argue that the firm cannot shy away from its responsibility of supplying power. “When you take away land and displace the people from there, these people are given a special status. You cannot treat them as ordinary consumers. While NTPC is maintaining 24-hour power supplies to its operational units, including the railway station used for handling coal (which comes to the plant), they are not willing to supply power to the consumers,” said H.C. Sirohi, divisional commissioner, Bhagalpur.

Analysts say NTPC’s entry into the distribution business will be significant, given the fact that it has a power generation capacity of 27,404MW and plans to increase this to 50,000MW by 2012.

A Delhi-based analyst who did not wish to be named said: “NTPC may negotiate with the state governments to get a distribution company. That is the way forward. There are very few good distribution companies in the sector such as Calcutta Electricity Supply Corp., Tata Power, Torrent Group and Reliance Power. Nothing stops NTPC from entering the power distribution sector. It is a strong player and SEBs have failed in certain respect in certain areas which are primarily managerial in nature.”
“Entering the distribution part of the business will not be a problem for NTPC as it has the access to power generation,” said a Union government official who did not wish to be named.