According to the 30-page study land plots in the state are small and scattered across industrial zones, while high land prices serve to discourage entrepreneurs. It urged the Bihar Industrial Area Development Authority (BIADA), which was in the eyes of storm a couple of months back, to maintain a modernised and computerised land records system to avoid confusion.

The paper highlights the negligible generation of electricity in the state and noted that allocation from NTPC units must go up from its present share of 25 per cent to 50 per cent.

The FICCI-KAF report called upon the state government to do away with the fuel surcharge of electricity for industrial units.

The report also said that the absence of coal linkages is a major impediment for developing thermal power stations in the state.

It needs to be recalled that Bihar has not received a single rupee from the proposed investments amounting to Rs 42,941 crore.

“There has been a significant gap in terms of the proposals of investments intended towards Bihar and the amount of investments the state received in actual terms,” the report said.

Apart from unavailability of land, relative lack of skilled labour, poor extension of banking or credit services to small, medium and tiny industries are factor responsible for the lack of inudstrialization.

Besides, the state lacks highly improved transport facility and connectivity due to absence of four-lane National Highways and two-lane State Highways. It has relatively less number of bridges across the Ganga, and there is also lack of air cargo handling facility at airports. The absence of mid-level airports at Muzaffarpur, Bhagalpur, Purnea and Dehri-on-Sone is another hindering factor.

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