CITY BUSINESS PLAN

CITY BUSINESS PLAN 

The Support Programme for Urban Reform in Bihar (SPUR) is a six years partnership project between the 

Govt. of Bihar and the Department for International development, U.K. Systematic local economic 

development is one of the key components of SPUR. As a first step, City Business Plans have been 

prepared for the 29 project towns. 

City Business Plan is an operational tool for mapping economic development opportunities of urban 

areas, enabling effective interface between government agencies and business communities for 

attracting investment and improving business climate of towns. It is aimed to identify skill gaps and 

design and implement market based skill and enterprise development programs. CBPs also provide road 

maps for enterprise development, promote local business opportunities, and streamline the approval 

processes for business start ups as well as to strengthen fiscal and financial capacities of urban local 

bodies for improving local infrastructure. CBPs of 14 towns (Patna, Danapur, Phulwarisharif, Khagaul, 

Ara, Chhapra, Biharsharif, Siwan, Hajipur, Muzaffarpur, Motihari, Bettiah, Darbhanga and Sitamarhi) 

have been prepared and CBPs of 13 towns (Gaya, Bodhgaya, Dehri‐on‐Sone, Aurangabad, Nawada, 

Sasaram, Purnea, Katihar, Saharsa, Kishanganj, Bhagalpur, Munger & Jamalpur) are in the final stages of 

preparation. 

SPUR would like to place the City Business Plans for wider review and consultation. All queries/ 

suggestions/ remarks can be sent to asinha.spur@ipeglobal.com with subject line “City Business Plan 

for ________(town)”.

Table of Contents 

List of tables 

List of figures 

List of annexures 

List of abbreviations 

1 INTRODUCTION ...................................................................................................................... 1-1 

1.1 Introduction ........................................................................................................................ 1-1 

1.2 Urban Poverty in India ...................................................................................................... 1-1 

1.3 Urban Poverty in Bihar ..................................................................................................... 1-1 

1.4 City Business Plan Under SPUR Programme ................................................................. 1-2 

1.5 The Consultant ................................................................................................................... 1-2 

1.6 Objectives of a CBP ........................................................................................................... 1-2 

1.7 Approach and Methodology .............................................................................................. 1-3 

1.8 Structure of the City Business Plan .................................................................................. 1-6 

2 CITY PROFILE ......................................................................................................................... 2-1 

2.1 Introduction ........................................................................................................................ 2-1 

2.2 General Profile ................................................................................................................... 2-1 

2.3 Infrastructure Profile ........................................................................................................ 2-2 

2.4 Regional Setting ................................................................................................................. 2-3 

2.5 Municipal Administration ................................................................................................. 2-4 

2.6 Spatial Population Distribution and Population Density Pattern .................................. 2-4 

3 ECONOMIC DEVELOPMENT .............................................................................................. 3-1 

3.1 Urban Economy with Regional Potential ......................................................................... 3-1 

3.2 Work Force Participation Rate ........................................................................................ 3-1 

3.3 Trade and Commerce ........................................................................................................ 3-2 

3.4 Informal Activities ............................................................................................................. 3-3 

3.5 Agri-Resource Potential .................................................................................................... 3-4 

3.6 Tourism ............................................................................................................................... 3-7 

3.7 Enterprise Scenario ........................................................................................................... 3-8 

3.7.1 Enterprises Units under BIADA..................................................................................................... 3-8 

3.7.2 Enterprises Units under District Industry Center (DIC) ............................................................. 3-10 

3.7.3 Critical service sector enterprises ............................................................................................... 3-10 

3.7.4 Business Catalogue ...................................................................................................................... 3-11 

4 INVESTMENT CLIMATE AND BUSINESS COMPETITIVENESS ANALYSIS ............ 4-1 

4.1 Introduction ........................................................................................................................ 4-1 

4.2 Factor and Demand Conditions and Others Parameters of the Business Environment4-1 

4.3 Identification of Economic Sectors and Value-Chains with Potential ........................... 4-3 

4.4 The Industry Climate and Business Competitiveness Analysis ..................................... 4-3 

4.4 The Industry Climate and Business Competitiveness Analysis ..................................... 4-3 

Final Report 

i

City Business Plan for Muzaffarpur Municipal Corporation 

5 CENTRAL AND STATE GOVERNMENT PROGRAMMES ............................................. 5-1 

5.1 Introduction ........................................................................................................................ 5-1 

5.2 PPP Cluster Development Scheme of the Central Government .................................... 5-1 

5.3 Relevant Central Government Programmes ................................................................... 5-3 

5.3.1 Office of Development Commissioner (MSME) - Ministry of MSME ............................................ 5-3 

5.3.2 Schemes of the Small Industries Development Bank of India (SIDBI)........................................... 5-7 

5.3.3 Schemes of the National Small Industries Corporation (NSIC)..................................................... 5-7 

5.3.4 Schemes of the Ministry of Commerce and Industry ...................................................................... 5-7 

5.3.5 Schemes of the National Horticulture Board (NHB) ..................................................................... 5-7 

5.3.6 Agriculture and Processed Food Export Development Authority (APEDA) ................................. 5-8 

5.3.7 Ministry of Food Processing Industries (MOFPI) Schemes .......................................................... 5-8 

5.3.8 Swarna Jayanti Shahari Rozgar Yojana (SJSRY) .......................................................................... 5-8 

5.3.9 Prime Minister’s Employment Generation Programme (PMEGP) ............................................... 5-9 

5.4 Relevant State Government Schemes ............................................................................. 5-10 

5.4.1 Pre-Production Incentives ........................................................................................................... 5-10 

5.4.2 The following incentives are be given to industrial units after commencement of Commercial 

Production under the New Industrial Incentive Policy. ............................................................................ 5-11 

5.4.3 Tax Related Incentives ................................................................................................................. 5-12 

5.4.4 Scheme for Food Parks and Scheme for Integrated Development of the Food Processing Sector .. 5- 

13 

5.5 Summary and Conclusion ............................................................................................... 5-13 

6 VALUE CHAIN ANALYSIS AND BUSINESS LINKAGES ................................................ 6-1 

6.1 Introduction ........................................................................................................................ 6-1 

6.2 Litchi Value-Chain: ........................................................................................................... 6-1 

6.3 Lac Bangle Value-Chain .................................................................................................... 6-3 

6.4 Cloth (textile and garment) Value-Chain ........................................................................ 6-5 

6.5 Summary and a SWOT analysis ....................................................................................... 6-7 

7 SKILL AND ENTREPRENEUR DEVELOPMENT PROGRAMMES ............................... 7-1 

7.1 Introduction ........................................................................................................................ 7-1 

7.2 Training needs of public and private service providers presently offering services .... 7-1 

7.2.1 Skill development and training institutions in the region: The present circumstance ................... 7-1 

7.2.2 Profile of key training service providers ........................................................................................ 7-2 

7.2.3 Constraints in the roles of existing skill development and training service providers and their 

training needs ............................................................................................................................................. 7-3 

7.3 Training needs of Potential Entrepreneurs, (that is, for enterprise start-up) .............. 7-5 

7.4 Training needs of existing entrepreneurs ........................................................................ 7-5 

7.5 Summary and a SWOT analysis ....................................................................................... 7-8 

7.6 Summary .......................................................................................................................... 7-10 

8 BUSINESS APPROVAL SYSTEM .......................................................................................... 8-1 

8.1 Background ........................................................................................................................ 8-1 

Final Report 

ii


8.2 CBP Objective .................................................................................................................... 8-1 

8.3 The Existing Process .......................................................................................................... 8-2 

8.4 BIADA ................................................................................................................................ 8-2 

8.4.1 Establishing Industries within BIADA ........................................................................................... 8-2 

8.5 Establishing Industries within Municipal Limits ............................................................ 8-4 

8.5.1 District Industries Centre (DIC).................................................................................................... 8-5 

8.5.2 Municipality Specific Approvals .................................................................................................... 8-6 

8.5.3 Approvals/Clearances from Other Government Departments ....................................................... 8-7 

8.6 Establishing Industries Outside Municipal Limits ....................................................... 8-10 

8.7 Bihar Single Window Clearance Act, 2006 .................................................................... 8-10 

8.7.1 Project Clearance Committee (PCC) .......................................................................................... 8-11 

8.8 Business Approval System in Some Other Indian States ............................................. 8-11 

8.9 Single Window Clearance Mechanism Implementation ............................................... 8-13 

8.9.1 Recommendations ........................................................................................................................ 8-13 

8.9.2 Implementation of Recommendations .......................................................................................... 8-16 

9 REHABILITATION OF STREET VENDORS ...................................................................... 9-1 

9.1 Introduction ........................................................................................................................ 9-1 

9.2 Approach and Methodology .............................................................................................. 9-2 

9.3 National Policy on Urban Street Vendors, 2009 .............................................................. 9-2 

9.4 Bihar State Draft Street Vendors Bill, 2011 .................................................................... 9-3 

9.5 Status of Street Vendors .................................................................................................... 9-4 

9.6 City Level Status of Vendors............................................................................................. 9-4 

9.7 Ward-Wise Status of Vendors .......................................................................................... 9-5 

9.8 Key Issues of Street Vendors............................................................................................. 9-5 

9.8.1 Issues emerging through consultation with street vendors ............................................................ 9-5 

9.8.2 Issues emerging through Consultation with Govt. Officials and Elected Representatives ............ 9-9 

9.9 No Vending Zone ............................................................................................................. 9-10 

9.10 Vending Zone ................................................................................................................... 9-14 

9.11 Restricted Vending Zone ................................................................................................. 9-14 

9.12 Mapping Constraints ....................................................................................................... 9-15 

9.13 Recommendations ............................................................................................................ 9-15 

10 STAKEHOLDER CONSULTATIONS ................................................................................. 10-1 

10.1 Introduction ...................................................................................................................... 10-1 

10.2 Approach & Methodology ............................................................................................... 10-1 

10.3 Govt. Officials & Institutional Representatives ............................................................ 10-2 

10.3.1 Issues/Suggestions ................................................................................................................... 10-2 

10.3.2 Other Stakeholders .................................................................................................................. 10-4 

11 PUBLIC-PRIVATE PARTNERSHIP .................................................................................... 11-1 

11.1 Alignment with the CDP and CIP .................................................................................. 11-1 

11.2 Municipal (and other) vacant land ................................................................................. 11-2 

Final Report 

iii


11.3 Public-Private Partnerships in the context of the CBP................................................. 11-2 

12 CBP IMPLEMENTATION PROCESS ................................................................................. 12-1 

12.1 Introduction ...................................................................................................................... 12-1 

12.2 Structuring and implementation of the city business plan ........................................... 12-1 

12.3 Task Force Functional Mechanism ................................................................................ 12-5 

Final Report 

iv


List of Tables 

TABLE 2.1: GENERAL PROFILE OF MUZAFFARPUR ............................................................................................... 2-1 

TABLE 2.2: INFRASTRUCTURE PROFILE OF MUZAFFARPUR .................................................................................. 2-2 

TABLE 3.1: COMPARATIVE URBAN WORK FORCE PARTICIPATION RATE ............................................................. 3-1 

TABLE 3.2: WORK FORCE PARTICIPATION RATE OF MUZAFFARPUR CITY ........................................................... 3-1 

TABLE 3.3: WORKFORCE EMPLOYED IN DIFFERENT SECTOR IN BIHAR STATE AND MUZAFFARPUR DISTRICT 

(EMPLOYMENT FIGURE IN 000) .................................................................................................................... 3-2 

TABLE 3.4: TYPES OF STREET VENDORS IN MUZAFFARPUR ................................................................................. 3-4 

TABLE 3.5: TYPES OF STREET VENDORS IN MUZAFFARPUR ................................................................................. 3-4 

TABLE 3.6: SOME SME LITCHI PROCESSING UNITS IN MUZAFFARPUR DISTRICT ................................................. 3-5 

TABLE 3.7: AGRI-RESOURCE POTENTIAL OF MUZAFFARPUR DISTRICT ................................................................. 3-5 

TABLE 3.8: SPECIFIC INDUSTRY TYPES-MUZAFFARPUR ....................................................................................... 3-8 

TABLE 3.9: MAIN INDUSTRY TYPES-MUZAFFARPUR .......................................................................................... 3-10 

TABLE 3.10: SWOT ANALYSIS OF THE SERVICE SECTOR ................................................................................... 3-11 

TABLE 5.1:PROGRESS OF SOME RELEVANT CENTRAL GOVERNMENT PROGRAMMES AND SCHEMES IN INDIA ....... 5-2 

TABLE 5.2 : PERFORMANCE OF PROGRAMMES, SCHEMES, INCENTIVE PACKAGES AND RELATED ACTION PLAN... 5-14 

TABLE 6.1: FACTOR AND DEMAND CONDITIONS, OTHER PARAMETERS OF THE BUSINESS ENVIRONMENT ............. 6-2 



TABLE 6.4 : SWOT ............................................................................................................................................... 6-7 

TABLE 7.1 : SWOT VIS-À-VIS SKILL AND ENTREPRENEUR DEVELOPMENT TRAINING PROGRAMMES .................... 7-9 

TABLE 7.2: IMPORTANT VALUE-CHAINS AND STAKEHOLDER TRAINING NEEDS .................................................. 7-10 

TABLE 7.3: TRAINING AREAS FOR EXISTING ENTREPRENEURS/MANPOWER, POTENTIAL ENTREPRENEURS AND 

VENDORS AND RELATED SERVICE PROVIDERS. ........................................................................................... 7-11 

TABLE 7.4: TRAINING AREAS FOR LOCAL PUBLIC AND PRIVATE SERVICE PROVIDERS AND FACILITATING SERVICE 

PROVIDERS ................................................................................................................................................. 7-12 

TABLE 9.1: STATUS OF STREET VENDORS ............................................................................................................ 9-4 

TABLE 9.2: CITY LEVEL STATUS OF VENDORS ..................................................................................................... 9-4 

TABLE 9.3: LIST OF PARTICIPANTS WARD NO.11 STATION ROAD ........................................................................ 9-7 

TABLE 9.4: LIST OF PARTICIPANTS WARD NO.11 STATION ROAD ........................................................................ 9-7 

TABLE 9.5: LIST OF PARTICIPANTS WARD NO. 20 COMPANY BAGH .................................................................... 9-8 

TABLE 9.6: LIST OF PARTICIPANTS WARD NO.19 MOTI JHEEL ............................................................................. 9-8 

TABLE 9.7: CONSULTATION WITH GOVT. OFFICIALS AND ELECTED REPRESENTATIVES .................................... 9-10 

TABLE 9.8: NO VENDING ZONE .......................................................................................................................... 9-11 

TABLE 9.9: VENDING ZONE ................................................................................................................................ 9-14 

TABLE 9.10: RESTRICTED VENDING ZONE ......................................................................................................... 9-14 

TABLE 10.1: LIST OF PARTICIPANTS AT THE TASK FORCE MEET ........................................................................ 10-3 

TABLE 10.2: LIST OF GOVERNMENT AND SUPPORT SYSTEM STAKEHOLDERS ...................................................... 10-4 

TABLE 10.3:: LIST OF ENTREPRENEURS .............................................................................................................. 10-5 

Final Report 

v


TABLE 11.1: CDP PROJECTS AND BROAD COST ESTIMATES ................................................................................ 11-1 

TABLE 11.2: PPP INVESTMENT OPTIONS ............................................................................................................. 11-2 

TABLE 12.1:CBP STRUCTURING AND IMPLEMENTATION .................................................................................... 12-2 

List of Figures 

FIGURE 1.1: STAGES OF CBP ................................................................................................................................ 1-5 

FIGURE 2.1: LOCATION OF MUZAFFARPUR IN BIHAR............................................................................................ 2-3 

FIGURE 2.2: LOCATION AND LINKAGES OF MUZAFFARPUR TOWN ...................................................................... 2-4 

FIGURE 3.1: LOCATION OF EXISTING MARKETS OF MUZAFFARPUR ..................................................................... 3-3 

FIGURE 3.2: RESOURCE MAP OF MUZAFFARPUR ................................................................................................. 3-7 

FIGURE 3.3: INDUSTRIAL AREA OF MUZAFFARPUR .............................................................................................. 3-9 

FIGURE 12.1: TASK FORCE FUNCTIONAL MECHANISM ....................................................................................... 12-6 

List of Annexures 

ANNEXURE 1.1: CHECKLIST OF INFORMATION SOURCES AND NEEDS 

ANNEXURE 1.2: DISCUSSION FORMAT OF THE QUESTIONNAIRE/SCHEDULE ADMINISTERED 

FOR STUDY OF ENTERPRISES AND ACTIVITIES ALONG A VALUE-CHAIN 

ANNEXURE 3.1: PRODUCTION OF MAJOR CROPS IN THE REGION. 

ANNEXURE 3.2: TABULATION OF BIADA DATA 

ANNEXURE 3.3 SUMMARY OF DIC DATA OF MUSHAHARI BLOCK, MUZAFFARPUR 

ANNEXURE 3.4 BUSINESS CATALOGUE 

ANNEXURE 4:1 CITY BUSINESS PLAN: PERCEPTIONS VIS-À-VIS INVESTMENT 

ATTRACTIVENESS INDICATORS 

ANNEXURE 7.1 TRAINERS TRAINING IN ENTREPRENEURSHIP DEVELOPMENT AND FACULTY 

DEVELOPMENT PROGRAMME 

ANNEXURE 7.2 CLUSTER VALUE-CHAIN DEVELOPMENT AGENT (CDA) TRAINING 

PROGRAMME 

ANNEXURE 7.3 PROGRESS REPORT OF PMEGP 2010-11, UP TO OCTOBER 2010 

ANNEXURE 8.1 TO ANNEXURE 8.7 COMPRISES FORMATS WITH REGARD TO BUSINESS 

APPROVAL SYSTEMS 

ANNEXURE 9.1: WARD WISE DISTRIBUTION OF STREET VENDORS 

ANNEXURE 10.1: LIST OF PARTICIPANTS AT THE TASK FORCE MEET 

Final Report 

vi


List of Abbreviations 

APEDA : Agriculture and Processed Food Products Export Development Authority 

APMC : Agricultural Produce Marketing Committee 

ASSOCHAM : Associated Chambers of Commerce and Industry of India 

BDS 

: Business Development Service 

BIADA : Bihar Industrial Area Development Authority 

BMA : Bihar Municipal Act, 2007 

BPL 

: Below Poverty Line 

BSEB : Bihar State Electricity Board 

BSRTC : Bihar State Road Transport Corporation 

CBO 

: Community Based Organisation 

CBP 

: City Business Plan 

CDA 

: Cluster Development Agent 

CDP 

: City Development Plan 

CEO 

: Chief Executive Officer 

CFTRI : Central Food Technology Research Institute 

CGTMSE : Credit Guarantee Fund Trust for Micro and Small Enterprises 

CII 

: Confederation of Indian Industry 

CIMP : Chandragupt Institute of Management 

CIP 

: City Investment Plan 

CPHEEO : Central Public Health and Environmental Engineering Organisation 

DC (MSME) : Development Commissioner (Micro. Small and Medium Enterprise) 

DC–Handicraft : Development Commissioner Handicraft 

DFID : Department for International Development 

DI 

: Department of Industries 

DIC 

: District Industries Centre 

DIPP 

: Department for Industrial Policy and Promotion 

DISCOM : Distribution Company 

DMC : Darbhanga Municipal Corporation 

DPR 

: Detailed Project Report 

DST 

: Department of Science and Technology 

ED 

: Entrepreneurship Development 

EDC 

: Entrepreneur Development Centre 

EDI 

: Entrepreneurship Development Institute 

Final Report 

vii


EDP 

EM 

ESDP 

FGD 

FI 

FICCI 

FPI 

GM 

GoB 

GoI 

HH 

HACCP 

HMWS & SB 

ICT Pvt. Ltd. 

IEC 

IED 

IHSDP 

IID 

IID 

IIE 

IIUS 

IO 

ISI 

ISHUP 

ITI 

JLG 

JNNURM 

Km 

KV 

KWh 

LIG 

LPCD 

M 

MFI 

MCGFS 

: Entrepreneurship Development Programme 

: Entrepreneur Memorandum 

: Entrepreneurship cum Skill Development Program 

: Focus Group Discussion 

: Financial Institution 

: Federation of Indian Chambers of Commerce and Industry 

: Food Processing Industries 

: General Manager 

: Government of Bihar 

: Government of India 

: House Hold 

: Hazard Analysis and Critical Control Point 

: Hyderabad Municipal Water Sanitation & Sewerage Board 

: Intercontinental Consultants and Technocrats Pvt. Ltd. 

: Information, Education and Communication 

: Institute of Entrepreneurship Development 

: Integrated Housing & Slum Development Programme 

: Institute for International Development 

: Industrial Infrastructure Development 

: Indian Institute of Entrepreneurship 

: Industrial Infrastructure Upgrading Scheme 

: Investigating Officer 

: Indian Standards Institution 

: Interest Subsidy Scheme for Housing the Urban Poor 

: Industrial Training Institute 

: Joint Liability Group 

: Jawaharlal Nehru National Urban Renewal Mission 

: Kilometre 

: Kilo Volts 

: Kilo watt hour 

: Low Income Group 

: Litres Per Capita Per Day 

: Metre 

: Micro Finance Institution 

: Mutual Credit Guarantee Fund Scheme 

Final Report 

viii


MLD 

Mm 

MMC 

MSE 

MSE-CDP 

MSME 

MSME-DI 

MUN 

NABARD 

NEF 

NGO 

NH 

NID 

NIESBUD 

NIMSME 

NMCP 

NOC 

NSIC 

NSSO 

NSTEDB 

NW 

OBC 

PCB 

PCC 

PHED 

PMEGP 

PPP 

RGUMY 

SC 

SH 

SHG 

SIDBI 

SIPB 

SJSRY 

SPUR 

: Million litres per day 

: Millimetre 

: Muzaffarpur Municipal Corporation 

: Micro and Small Enterprise 

: Micro and Small Enterprise-Cluster Development Programme 

: Micro, Small and Medium Enterprise 

: Micro, Small and Medium Enterprise- Development Institute 

: Mahila Udhyam Nidhi 

: National Bank for Agriculture and Rural Development 

: National Equity Fund 

: Non-Government Organisation 

: National Highway 

: National Institute of Design 

: National Institute for Small Business Development 

: National Institute for Micro, Small and Medium Enterprises 

: National Manufacturing Competitiveness Programme 

: No Objection Certificate 

: National Small Industries Corporation 

: National Statistical Survey Organisation 

: National Science & Technology Entrepreneurship Development Board 

: North West 

: Other Backward Classes 

: Pollution Control Board 

: Project Clearance Committee 

: Public Health and Engineering Department 

: Prime Minister‟s Employment Generation Programme 

: Public Private Partnership 

: Rajiv Gandhi Udyami Mitra Yojna 

: Scheduled Caste 

: State Highway 

: Self Help Group 

: Small Industries Development Bank of India 

: State Investment Promotion Board 

: Swarna Jayanthi Shahari Rozgar Yojana 

: Support Programme for Urban Reforms 

Final Report 

ix


SPV 

Sqkm 

ST 

SWOT 

TAST 

TBI 

TNEB 

TNPCB 

UIDSSMT 

UIG 

ULBs 

VAT 

VT 

VTI 

WFPR 

: Special Purpose Vehicle 

: Square kilo metre 

: Scheduled Tribe 

: Strengths, Weaknesses, Opportunities and Threats 

: Technical Assistance Support Team 

: Technology Business Incubator 

: Tamil Nadu Electricity Board 

: Tamil Nadu Pollution Control Board 

: Urban Infrastructure Development Scheme for Small and Medium Towns 

: Urban Infrastructure & Governance 

: Urban Local Bodies 

: Value Added Tax 

: Vocational Training 

: Vocational Training Institute 

: Work Force Participation Rate 

Final Report 

x

Executive Summary 

Introduction 

The overall objective of Support Programme for Urban Reforms (SPUR) in Bihar is to enable 

urban local bodies in the State to function as engines of economic growth of the State. 

Urban local bodies have institutional limitations to encourage and attract private sector 

investments to cities/towns and hence the main operational strategy formulated under SPUR is to 

promote local economic development by creating an enabling environment for the private sector 

to invest in areas of their core economic sectors. 

CBP 

City Business Plan (CBP) is visualized as an operational tool to:- 

(i) Conceptualize and guide the private sector and business community to identify core 

economic competitiveness of cities 

(ii) Facilitate a productive investment dialogue with local governments and communities. 

(iii) Isolate comparative and competitive advantages of the cities and their potential for 

economic development and guide potential investors to direct their resources to realize 

maximum economic returns 

(iv) Study value chain linkages of local enterprises and make strategic interventions to 

enhance their profitability and sustainability 

(v) Identify viable investment plans for improving business linkages and lastly to 

(vi) Identify the procedural reforms needed at municipal and district levels to reduce 

investment transaction, time and costs for prospective private investors 

Intercontinental Consultants and Technocrats Private Limited (ICT), New Delhi has been 

commissioned by SPUR to prepare a CBP for Muzaffarpur. 

Study Methodology and Coverage 

The study methodology involved extensive group consultations as well as also individual 

consultations with:- 

(i) Government and municipal officials 

(ii) Members of the local economic development task force set up by the District Magistrate 

through interactive workshops 

(iii) Industry associations, 

(iv) Chamber of Commerce 

(v) Entrepreneurs representing individual enterprises in manufacturing, retailing, trading and 

service sector activities like cold store, etc. 

(vi) Street vendors 

Final Report 

ES-1


The study area covered Muzaffarpur Municipal Corporation (MMC) and adjoining areas. 

Muzaffarpur municipal area had a total population of 305,525 residing in 32 municipal wards as 

per 2001 census. However, the ward boundaries have since been revised and currently, the city 

has 49 wards. The total number of street vendors in Muzaffarpur city is approximately 9758 (as 

per SPUR survey) and Work Force Participation Rate (WFPR) is 25%. 

Muzaffarpur district largely has an agrarian economy. The district is renowned for its litchi fruit 

which is highly perishable and requires a specific climate and soil condition found in the district. 

Apart from litchis, Muzaffarpur is also well known for its production of lac bangles and is one of 

the leading trading hubs for cloth. 

Findings and Recommendations 

Favourable factor conditions in terms of access, availability of raw materials, skilled labour, and 

specialized industrial infrastructure with supporting institutions are the positive aspects of 

developing Muzaffarpur economically. Market connectivity is relatively strong to facilitate 

movement of goods to and from the city through rail and road network. Likewise, the commercial 

segment of the city comprises of a strong network of traders. 

Value chains prioritized by the Local Economic Development (LED) Task Force include litchi, 

lac bangles as well as cloth (textile and garment) value chains. 

Abundant raw material availability makes the litchi value chain as the key focus area. Over 3000 

individuals of the city workforce are involved with litchi related activities during the limited 

period of harvesting season. High perishability of the product makes it imperative for litchi 

producers to have their processing facility near to the centre of production. 

Barely 10% of litchi produced, production exceeds 50,000 MT per annum, is currently processed 

in the region due to limitations in processing facilities. There is thus, scope for establishment of a 

common facility on PPP basis for pulp processing (20 TPD), cold storage, testing and packaging 

with a moderate investment. 

Litchi is amenable to processing in various ways and it is estimated that about 40 value-adding 

downstream processing units for pulp, litchi juice, litchi jam, jelly etc. could generate additional 

employment for at least 300 persons with a value addition up to 20% in the short term. 

A range of other horticultural produce such as mangoes and bananas may also be processed in 

such facilities to optimize capacity utilization as harvesting season for litchi is limited. 

It was estimated, that there are about 500 household and micro sized units in the lac bangle 

segment providing employment to about 2000 persons with an estimated annual turnover of about 

Rs.50 crores. Retailers and wholesalers have market connectivity across Bihar and there is 

historical recognition and preference for lac bangles from the region from customers across the 

state. 

Final Report 

ES-2


Establishment of a common facility on the basis of PPP for providing appropriate training and 

design/finished intervention will increase the gross value accruals from this product and generate 

additional employment. 

Muzaffarpur is hub for trading in cloth for entire North Bihar. There are over 600 cloth traders, 

merchants and related transport service providers as well as about 3000 household and micro 

sized tailoring units and a dozen garment manufacturing units in the region. It is estimated, that 

livelihood for over 10,000 persons in the city is linked to cloth and fabric trade and tailoring 

services and garment manufacturing. 

Here again, the establishment of a common facility on the basis of PPP will encourage transition 

of Muzaffarpur from a mere fabric trading centre to a quality garment producing hub. A single 

garment unit with an investment of Rs.5 lakhs on basic equipment could provide direct and 

indirect employment to over 10 persons. The envisaged common facility will help train over 500 

skilled workers every year to undertake embroidery, design and finished garment services. 

Muzaffarpur has the benefit of both government and private Polytechnics as also Industrial 

Training Institutes who conduct accredited vocational training courses and over 900 persons are 

trained every year by these institutions. Smaller NGOs train over 3000 persons on tailoring 

services and basic garment manufacturing. 

There is evidently, scope for twinning the EDP (Entrepreneurship Development Programme) and 

Skill development programmes of MSME-DI, Muzaffarpur and IED, Patna in the City Business 

Plan. Skill development training programmes to generate employment opportunities can also be 

undertaken by service providers like:- 

(i) 

(ii) 

(iii) 

(iv) 

(v) 

MSME –DI, Muzaffarpur 

IED, Patna 

Industry associations 

NGOs and 

Technical (Vocational and industrial training Institutions) 

Training needs will include: 

(i) Development of EDP trainers through advanced and practical trainers‟ training 

programme 

(ii) Cluster development agents training 

(iii) Training of potential entrepreneurs including vendors and Self-help groups evolved by the 

municipality 

Training needs for existing enterprises will include:- 

(i) 

(ii) 

Operation of technically advanced equipment 

Linkage potential with different programmes and schemes of Government related capital 

investment subsidies, access of credit, market development, PPP option for common 

facility and practical business management 

Final Report 

ES-3


A large industrial area exists under the control of BIADA existing in Muzaffarpur. However, 

nearly half of the industries in this zone do not have access to continuous power supply, resulting 

in about 20% of the units having been wound up after commencement of operations. Over 35 

acres of land are still available for setting up new units in BIADA estate. Since no municipal land 

measuring an acre in stretch in one location is available, establishment of common facilities for 

developing and strengthening cluster value chains may have to be undertaken in BIADA estate. 

A transparent single window clearance system has to be mandatorily set up to receive applications 

from entrepreneurs for new projects both in the manufacturing and service sectors. 

An empowered Project Clearance Committee should review the application and recommend 

clearance/approval/rejection of the project within the stipulated timeframe incorporating 

viewpoints of all concerned viz. municipality, pollution control board, electricity and water 

department, factory Inspector, Chief Fire Officer, etc. 

To achieve the above, the entire process - registration, review and clearance - should be done 

online through adequate capacity building, proper computer training and installation of required 

resources. 

LED task force will need to work out a plan to protect the livelihood of legitimate street vendors 

by demarcating vendor zones, restricted vendor zones and no vendor zones in the city. 

Prioritization of allotment of stalls/kiosks to SC/STs, physically challenged, economically 

weaker, poor and vulnerable people, in accordance with Bihar Government Street Vendors Policy 

will have to be addressed. 

Fundamental structure for economic, industrial and commercial development exists in 

Muzaffarpur and if the required interventions are pursued by a mix of stake holders, the results 

will be distinctly visible. 

Implementation of CBP over a pre-determined timeframe say three years or so is expected to 

contribute towards more local employment and livelihood augmenting structural changes. 

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1 INTRODUCTION 

1.1 Introduction 

This chapter explains the contextual and conceptual underpinnings of a City Business Plan (CBP) in 

terms of a brief overall status of urban poverty in India, and in Bihar, and the significance of a city 

business plan in facilitating a city‟s inclusive economic growth. 

1.2 Urban Poverty in India 

While India is becoming increasingly urbanised, the country is witnessing a corresponding increase in 

the concentration of poor people in urban areas. 

As per the latest survey report of the National Statistical Survey Organisation (NSSO) there are over 

80 million poor people living in the cities of India. In some of the larger states, the ratio of urban 

poverty is higher than that of rural poverty leading to the phenomenon of „Urbanisation of Poverty‟. 

Urban poverty poses the problems of housing, water, sanitation, health, education, social security, and 

livelihood along with the urgency to address the special needs of vulnerable groups such as women, 

children and aged people. In many smaller cities (particularly, towns) with an underdeveloped 

industrial and commercial sector, most poor people are involved in informal sector activities where 

there is constant threat of eviction and almost non-existent social security cover. With growing 

poverty, such Indian cities have been grappling with the challenges of making the cities sustainable, 

i.e. inclusive, productive, efficient and manageable. 

1.3 Urban Poverty in Bihar 

Bihar is the third largest state in terms of total population as per the 2001 census and influx into urban 

areas in the state has put urban infrastructure and services under severe stress. The increasing pressure 

on the urban environment is taking its toll on the quality of life of the urban population. Further, in 

urban areas, more than 59.8% of the household heads are self-employed and only around 30% have 

regular employment. While casual wage labour represents only around 10% of occupation among all 

urban household heads, in the poorest quintile, the majority of the urban poor has no choice but to 

work in this vulnerable sector. 

Cities hold tremendous potential as engines of economic and social development, creating jobs, and 

generating wealth through economies of scale. They need to be sustained and augmented through high 

urban productivity for better economic growth. For cities to become growth oriented and productive it 

is also essential to attain efficiency and equity in the delivery and financing of urban infrastructure. 

An integrated approach is needed to address various dimensions of urban development. Infrastructure 

inadequacies in urban areas are a major factor constraining Bihar‟s growth. The tasks involved in this 

regard are to: 

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Garner additional resources to augment civic amenities, and 

Ensure growth of urban areas in a systematic and sustainable manner. 

1.4 City Business Plan Under SPUR Programme 

The Support Programme for Urban Reforms (SPUR) in Bihar is based on the premise that effective 

urban centres play a significant role in economic growth and poverty reduction by providing the 

nuclei for greater economic activity and services that can contribute to pro-poor development. 

Conventionally, urban development projects have been equated with basic urban infrastructure 

development and services ranging from water supply and sanitation to waste management. This 

approach simply plugs gaps in infrastructure services in rapidly urbanising areas, while not adequately 

(nor specifically) addressing the development needs of private sector entrepreneurs (nor rural-urban 

linkages), among other complex challenges.1 It is therefore necessary to adopt an approach that 

focuses on cities‟ competitiveness and links Micro, Small and Medium Enterprises (MSMEs) and 

industrial (that is, manufacturing and service sector enterprise) clusters. Urban areas facilitate 

economic growth and it is also possible to support this economic function by linking cities and 

industrial clusters and their competitiveness.2 

1.5 The Consultant 

In this context, International Consultants and Technocrats Pvt Ltd. has been commissioned under 

SPUR to prepare a CBP for five cities in the Muzaffarpur cluster covered under the SPUR programme 

viz, Muzaffarpur Darbhanga, Motihari, Sitamarhi& Bettiah. The city business plan is essentially a 

road map to guide the growth of business and economic sectors in the city towards achieving the 

economic vision of cities and to enable/facilitate private sector investments in competitive and 

potential business opportunities.3 

1.6 Objectives of a CBP 

The vision to create prosperous urban communities by improving the private sector investment 

attractiveness and economic growth of poor communities requires multipronged strategies. These 

strategies are implemented through policy innovations and investment projects at various levels of 

1 ADB, 2010.”Competitive Cities,” Asian Development Bank, Manila, Nov. (pp:4-6). The Bank also moots a 

City Cluster Economic Development (CCED) approach involving: profiling the economic competitiveness of 

urban locations; identifying value-chain gaps in industry clusters in these locations; and preparing and 

implementing short, medium and long-term action plans that helps develop competitive cities and clusters. 

2 M.E. Porter,1988.”Clusters and the New Economics of Competition,” Harvard Business Review, Harvard 

University. 

3 SPUR, 2010.”Local Economic Development.” Support Programme for Urban Reforms. 

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State Government and Local Government through sustainable partnerships with business 

communities, non-government organizations and local communities. Due to the institutional 

limitations of urban local bodies to engage private sector investments to cities, the main operational 

strategy to promote economic development of urban local economies is to align the Bihar urban local 

economic development vision and strategies formulated under the Support Program for Urban 

Reforms (SPUR) in Bihar with the national urban (and related) development programmes primarily 

for creating enabling environments for the private sector to invest in cities in areas of their core 

economic sectors, leverage municipal lands, where available (as well as other government and private 

land) for economic development, promote pro poor businesses, enterprise development, and 

rehabilitate and promote informal sector growth. An important aspect of improving the business 

climate of cities is to establish the comparative advantages of the various urban centres and economic 

clusters through market analyses of investment potential and identification of value chains for 

establishing where public and private sector interventions can unlock unexploited opportunities. The 

City (Municipal) Business Plan (CBP) is recommended as an operational tool: 

to conceptualize and guide the private sector and business community to identify the core 

economic competitiveness of cities and facilitate a productive investment dialogue with local 

governments and communities 

to isolate the comparative advantages of the cities to provide the required basic information 

and investment perspectives on the economic development potential and guide potential 

investors to direct their resources to realize maximum economic returns 

to study the value chain linkages of local enterprises and strategic interventions to enhance 

profitability and sustainability orientation; identify viable investment plans for improving the 

business linkages between small and micro enterprises 

to identify the procedural reforms needed at municipal and district levels to reduce the 

investment transaction costs to prospective private investors4 

1.7 Approach and Methodology 

The approach and methodology of the study involved extensive group consultations (that is Focus 

Group Discussions) as well as individual consultations with officials representing the support system 

and entrepreneurs representing individual enterprises (partly using a questionnaire schedule, which in 

effect served more as a discussion format), industry associations and Chambers of Commerce 

involved in manufacturing, trading, retail and wholesale, as well as related critical service sector 

activities like cold store and training operations. In addition, street vendors were also directly 

consulted. 

4 LED Operations manual 

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The approach and methodology incorporated for preparation of the CBP may be considered in 

different stages. The stages included: 

Stage I: Project initiation 

Stage II: Status assessment “As is” of parameters related to CBPs; organisation of a Task Force 

meeting to review and guide CBP preparation 

Stage III: Potential assessment and preparation of draft CBPs with intervention plan; preparation of a 

business catalogue 

Stage IV: Preparation of the final CBP incorporating comments from client. These stages are depicted 

in Figure 1.1. 

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Figure 1.1: Stages of CBP 

CBP Final Report 

Organisation of a Task Force meet to review the 

draft CBP report 

Preparation of a Final CBP report 

Preparation of a city business catalogue 

Collection and compilation of data from the 

ULB, DIC, BIADA, Chamber of Commerce, 

Agriculture Department etc. 

Formation and meeting of a Task Force 

chaired by the District Magistrate and 

involving related CBP stakeholders for 

review of progress and inputs vis-à-vis focus 

areas of CBP as well as prioritising valuechains 

2 on the basis of comparative advantage 

and demand potential beyond limited local 

demand as well as workforce participation 

Study and compilation of an overview of the 

city economy in each of the target cities 

Study of economic sectors of each city and its 

adjacent regions 

Investment climate and business 

competitiveness analysis 

Study of alignment status with ongoing 

Central and State Government programmes 

Scrutiny of value chains and existing business 

linkages of SMEs and micro enterprises 

Scrutiny of circumstance vis-à-vis skill and 

entrepreneurship training initiatives 

Analysis of municipal approval systems; and 

other DIC and BIADA related approval 

systems as they apply to manufacturing and 

service sector enterprises even within 

municipal limits 

Study of PPPs in investment opportunities; 

study of municipal land as well as BIADA 

land as manufacturing and also many service 

sector enterprises are located in BIADA 

estates; Study of City Development and 

Investment Plans 

Study of status of vendors 

Preparation of the final CBP 

incorporating comments from 

Client. 

Potential assessment and 

preparation of draft CBPs 

with intervention plan; 

preparation of a business 

catalogue 

Status assessment “As is” of 

parameters related to CBPs; 

organisation of a Task Force 

meeting to review and guide 

CBP preparation 

Project Initiation 

Evolution and preparation of intervention 

plan vis-à-vis: 

Investment climate and business 

competitiveness; and on critical (cluster) 1 

value-chain interventions and business 

linkages 

Scope for alignment with ongoing Central 

and State Government programmes and 

schemes 

Skill and entrepreneur training initiatives 

Alignment with city development and 

investment study (particularly vis-à-vis 

“sectors” such as “Economy, trade and 

commerce”) 

Recommendations with respect to municipal 

(and other related) approval systems 

Recommendations upon municipal (and other 

related) land auditing 

PPPs in investment opportunities 

Vendors 

analysis 

Submission of a Draft Report 

Mobilisation and start-up 

Meeting with SPUR-DFID and ULB officials; 

Conduct of preliminary FGDs with ULB, 

Chamber of Commerce, DIC, BIADA, 

Polytechnic representatives and NGOs; and 

individual consultative meets with 

entrepreneurs in manufacturing and service 

sectors and traders etc. 

Basic identification of information sources in 

the light of needs; preparation of information 

check-list 3 

Literature review 4 

Finalisation of approach and methodology 

Inception Report Submission 

1 

Cluster” refers to enterprise clusters of similar type of business activities (SPUR, 2010: City/Municipal business plan framework – Operations Manual, LED). The 

Government of India considers clusters as manufacturing and service sector enterprises involved in similar type of activity agglomerated in one location such as a 

district or taluka. Critical related and supporting enterprises involved in different value-chain activities are also considered part of a cluster. 

2 

Value-chains involve stakeholders in manufacturing and service sectors as well as in trading, retail and wholesale activities. 

3 

Annexure 1.1 presents the same and information was culled on this basis to the extent available/feasible. Annexure 1.2 presents a questionnaire schedule which 

served more as a discussion format over FGDs and individual consultations with value-chain stakeholders. 

4 

City Development Plan; “Understanding the urban street vending sector: A socio economic study across 28 cities in Bihar”, SPUR DFID study, 2010; Bihar Municipal 

Act (BMA), 2007; Applicable building bye-laws and zoning regulations; Industrial and investment policy of Bihar; ADB, 2010: “Competitive Cities”, Asian Development 

Bank, Manila; M.E. Porter, 1988. “Clusters and the new economics of competition”, Harvard Business Review, Harvard University; SPUR, 2010. “Local Economic 

Development”; other relevant documents. 

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1.8 Structure of the City Business Plan 

The final report comprises the following chapters as stated below: 

Chapter 1 : Introduction 

Chapter 2 : City profile 

Chapter 3 : Economic development 

Chapter 4 : Investment Climate and Business Competitiveness analysis 

Chapter 5 : Central and State Government Programmes 

Chapter 6 : Value Chain Analysis 

Chapter 7 : Skill and Entrepreneur Training Programmes 

Chapter 8 : Business Approval System 

Chapter 9 : Rehabilitation of street vendors 

Chapter 10 : Stakeholders Consultation 

Chapter 11 : Potential PPP Investment Opportunities 

Chapter 12 : CBP implementation process 

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2 CITY PROFILE 


The city profile presented herein is primarily based on the City Development Plan prepared under 

SPUR TAST. Apart from the CDP, preliminary observations and findings that emerged from the 

various visits to Muzaffarpur city have provided significant insight into the city profile. City profile is 

discussed in the following paragraphs. 

Muzaffarpur town lies in the centre of Muzaffarpur district. The city of Muzaffarpur is famous for its 

exotic fruit Litchi. Litchi fetches a fancy price in the export markets in fresh as well as processed 

form. Muzaffarpur is a thriving wholesale business place and has a number of reputed educational 

institutions. 

The principal communication routes of the district pass through Muzaffarpur town. The presence of 

Budhi Gandak River marks the northern boundary of the town. Muzaffarpur is connected with Hajipur 

and Patna by National Highway (NH) 77. Muzaffarpur is well connected with other districts of North 

Bihar like Sitamarhi (NH 77), Champaran and Darbhanga (NH 57) etc. The railway line passes almost 

through the heart of the town and connects Samastipur, Motihari and Hajipur. An aerodrome is 

situated in village Patahi approximately 6.5 km towards west on the Chapra Road. 

2.2 General Profile 

Muzaffarpur is situated on the southern bank of the Budhi Gandak river. The total population of the 

city is 3,05,525, as per census 2001. There are 49 municipal wards. The general profile is presented 

here in terms of basic information about the city as shown in Table 2.1 below. 

Table 2.1: General Profile of Muzaffarpur 

Items 

Status 

Area (sqkm) 26.68 

Number of wards 49 

River 

Budhi Gandak 

Relief 

Plains 

Climate 

Sub-Tropical 

Rainfall (mm) 1100 to 1300 

Population (2001) 305,525 

Population (Estimated-2011) 467,007 

Projected Population 2030 805,513 

Population Density (PPH) 114.51 

Literacy Rate 68.86 

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Items 

Status 

Avg. Household Size (Census 2001) 6.1 

Sex Ratio 863 

SC -ST Population 8.55% (SC-8.38% & ST 0.17%) 

Major relevant Land use (existing as per Industrial-5.90%, Commercial-1.08 %, 

Draft master Plan) 

Agriculture-10.30 %& Vacant-1.16 % 

Source: CDP, Muzaffarpur 

As shown in above table Muzaffarpur is located on plain topography. It has a sub-tropical climate. As 

far as land use is concerned, evidently, there is little vacant land (1.16%) available at the disposal of 

the municipality for developmental purposes. 

2.3 Infrastructure Profile 

The main components of physical and social infrastructure have been taken from the CDP of 

Muzaffarpur and given in the Table 2.2 below. 

Table 2.2: Infrastructure Profile of Muzaffarpur 

Infrastru 

cture Item Current Status Remarks 

Source Underground water NA 

Supply Per Capita 41.24 LPCD Norm is 155 LPCD (CPHEEO) 

Water 

Supply 

Population 

100% population should be 

60% 

Covered 

covered 

Quality Potable treated water to be supplied 

Institutional 

Responsibility 

Sewerage System 

PHED 

No 

MMC 

Sewerage 

Transport 

Coverage of Toilet 63% house 37% go for open defecation 

No. of Public 

Toilet 

6 Not maintained properly 

NH 28,NH-57, NH-77,NH- 

Road Connectivity 

102 Good regional 

connectivity 

Truck Terminal 

Lot of trucks pass 

No 

through the city 

General Traffic Traffic jams Encroachment of roads 

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Infrastru 

cture Item Current Status Remarks 

Condition 

General city Road 

Condition Bad Not maintained properly 

Rail Connectivity Main Railway line Hazipur line 

Airport 

Unused Airport. Nearest 

yes 

commercial Airport at Patna 

Electricity Electricity Supply 15 hour/day Low voltage 

Technical 

Some private 

Education Centre 

technical institutions functioning 

Education (nos) 1 

in the city 

Engineering 

College 1 - 


The tabulation above mirrors the relatively poor circumstance vis-à-vis utilities and infrastructure for 

evolving and supporting a competitive economic base in the specific context of the industrial and 

commercial sector. 

2.4 Regional Setting 

Muzaffarpur is the primary urban area in Muzaffarpur district and main urban center of north Bihar 

(See location in Figure 2.1). Other major urban areas in north Bihar are Samastipur, Darbhanga, 

Madhubani, Sitamarhi, Motihar, Chhapra, Vaishali and Hajipur. 

Figure 2.1: Location of Muzaffarpur in Bihar 

Muzaffarpur 

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Muzaffarpur district has well developed means of communication. It has a network of railways and 

roads. All the block headquarters are linked with the district headquarters by pucca roads. Trains and 

buses are the main means of communication. Almost on all roads the buses of Bihar State Transport 

Corporation ply routinely. 

Muzaffarpur is connected by broad gauge railway line on Motihari – Samastipur section of the 

Eastern Railway. Further southward a railway line connects Muzaffarpur with the State capital Patna. 

Muzaffarpur is well connected with other surrounding towns by roads ( Figure 2.2). 

Figure 2.2: Location and Linkages of Muzaffarpur Town 

2.5 Municipal Administration 

The study area covers Muzaffarpur Municipal Corporation (MMC). Muzaffarpur was declared as a 

Municipal Corporation in 1981. The first elected body of the Municipal Corporation was instituted in 

the year 2002 which is functional till date. The Muzaffarpur Municipal area had a total population of 

3, 05,525 and was divided into 32 wards as per Census 2001. However, the ward boundaries have 

recently been revised and currently the city has 49 wards. 

2.6 Spatial Population Distribution and Population Density Pattern 

As per 2001 census Muzaffarpur Municipal Corporation had 32 wards, which have been revised to 49 

wards in 2007. According to the revised wards, the Spatial Population distribution has been depicted 

in the figure below. The overall density of Muzaffarpur is 114 persons per hectare as per census 

2001, which is within the population density norms for medium and large towns, given in the UDPFI 

Guidelines which are 100-150 ppha. But the ward wise density analysis shows maximum number of 

wards have more than 150 ppha density with ward no. 39 having the highest population density (476 

ppha) followed by ward no. 44 (396ppha) and ward no. 22 (386 ppha). Similarly ward no. 49 has the 

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lowest population density (21 ppha) with increasing order of ward no. 12 (39 ppha) and ward no. 45 

(40 ppha). The wards forming the core city area, that is ward number 3, 19, 21, 22, 39, 40, 43 and 44 

are highly populated and needs re-densification and de-congestion. The peripheral wards have less 

population 

***** 

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City Business Plan for Muzaffarpur Municipal Corporation

3 ECONOMIC DEVELOPMENT 

3.1 Urban Economy with Regional Potential 

Muzaffarpur district largely has an agrarian economy. Considering the district as the hinterland for a 

significant portion of the industrial and commercial activities in the city region, on the basis of year 

2005‐06 data5, the district produces 3.0% rice, 3.5% wheat, and 5.9% vegetables of Bihar state‟s total 

production. The district is famous for fruits e.g. litchi and mango, which are exported to other parts of 

the country and even abroad. Apart from good concentration of cattle, fisheries, poultry and livestock, 

the district also has potential for dairy products, cattle feeding plants, honey related products, abattoir, 

raw hide mandi, leather industries and meat processing. Along with these the district is also rich in 

handicraft works especially lac bangles, sujni embroidery and appliqué work (CDP Muzaffarpur). 

3.2 Work Force Participation Rate 

As per 2001 Census, Muzaffarpur Municipal Corporation has 25% Work Force Participation Rate 

(WFPR) which is low when compared to National, State and District averages. The male worker 

population is 68,206 which is 22.3% of the total population of the city, but it comprises 89% of the 

total workers in Muzaffarpur city. However, only 11% female workers form part of the total work 

force which is hardly 2.7% of the total population of the city. As far as engagement of workers in 

different economic activities are concerned, the highest proportion of workforce is engaged in other 

activities (94%), followed by HH industries (4%), cultivation (1%) and Agriculture Labour (1%). 

A summary tabulation of economic activity-mix in the city is tabulated in Table 3.7 below: 

Table 3.1: Comparative Urban Work Force Participation Rate 

Particulars Total Workers Male Workers Female Workers WFPR 

Urban India 92,278,654 76,175,323 16,103,331 32% 

Bihar 2,222,037 1938181 283,856 26% 

Muzaffarpur District 89,016 78676 10,340 26% 

MMC 76,518 68206 8,312 25% 

Source: Census of India, 2001 

Table 3.2: Work Force Participation Rate of Muzaffarpur City 

Workers 

Percentage 

Cultivators 1 

Agriculture Laborer 1 

HH Industries 4 

5 According to the resource mapping undertaken by Gherzi‐Genesis. 

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Others 6 94 

Source: Census of India, 2001 

Table 3.3: Workforce employed in different sector in Bihar State and Muzaffarpur District 

(employment figure in 000) 

District 

name 

Total 

main 

work 

ers 

Cultivat 

ors 

Agrcultu 

ral 

labourer 

s 

Livesto 

ck, 

forestr 

y & 

others 

Mining 

& 

querryi 

ng 

H.H. 

Industr 

ies 

Other 

HH 

industr 

ies 

Construc 

tion 

Trade 

& 

Comme 

rce 

Transp 

ort , 

Storage 

& 

Comme 

rce 

BIHAR 18795 7713 8114 64 12 292 276 89 708 188 1339 

% 100 41.0 43.2 0.3 0.1 1.6 1.5 0.5 3.8 1.0 7.1 

Muzaffarp 

ur 823 328 347 5 0 10 18 5 39 15 56 

% 100 39.9 42.2 0.6 0.0 1.2 2.2 0.6 4.7 1.8 6.8 

Source: SPUR 

The Table 3.3 above shows the total state level and district level workforce employed in different sectors. In the 

district, out of total workforce, high majority of workforce is dependent upon agriculture sector (Cultivator- 

39.9% & Agriculture Laborer-42.2%) followed by other services (6.8%), Trade and Commerce (4.7%), Other 

Household Industries (2.2%), Transport, Storage and Commerce (1.8%), Household Industries (1.2%) 

Construction (0.6%), Livestock and, Forestry and Others (0.6%). It may be concluded that very high majority 

of the workforce is dependent upon agriculture sector in the district. The city level data of all the components is 

not available and considering the different economic activities, the district level data cannot be interpolated, 

therefore, Census 2001 data as given in Table 3.2 is the only authentic data to analyze the employment status. 

3.3 Trade and Commerce 

The economic base of the city is trade and commerce. Muzaffarpur was once a key commercial hub of 

North Bihar and the wholesale centre of all types of mill cloth. Muzaffarpur also serves as market 

centre for nearby small cities and villages for supplying various commodities. There are markets, 

specifically for some products for e.g. Sutapati is well known for jewelry and readymade garments. 

Muzaffarpur is famous for its lac bangle (Lahthi). The city has wholesale markets as well which are 

Saryaganj Chowk and Kalayani along Gola area. These form the Central Business District (CBD) of 

Muzaffarpur. The CBD has narrow lanes and encompasses the congested areas on both sides of 

Katchary road, Laxmi Narayan road, Mr. Aiya Ganj road, Tilak Maidan road and Raghu Bans road, 

extending over ward numbers 20 and 23. In addition, commercial activities have mushroomed on both 

sides of the following roads. 

Brahmpura road 

Othe 

r 

servic 

es 

6 Other Workers (as per Census): All workers, i.e., those who have been engaged in some economic activity 

during the last one year, but are not cultivators or agricultural labourers or in Household Industry, are 'Other 

Workers‟. It may be noted that worker involved in service sector are also part of this category. 

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Old Bazaar road 

Nathu Choudhary road 

Kalambagh road from Maripur Chowk to Neem Chowk 

Rewa Ghat road from Brahmpura Chowk to Maripur Chowk 

Akharaghat road up to Zero Mile and its surroundings 

The Commercial hub of the city is Motijheel, Purani Bazaar, Sariyaganj, Sutapatti and JawaharLal 

Road. The location of existing markets/ commercial areas of Muzaffarpur are shown in Figure 3.1. 

Figure 3.1: Location of Existing Markets of Muzaffarpur 

3.4 Informal Activities 

Informal activities form an important part of the economic fabric of the city. It is not just a major 

source of employment but also provides affordable services to the majority of the urban population. 

Street vendors are an integral part of Muzaffarpur as in any other medium sized city. They mostly 

locate themselves strategically near work centres, commercial areas, outside schools and colleges, 

religious places, tourist places, hospitals, transport nodes and near housing colonies. Street vendors 

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are observed occupying space on the pavements or other public/ private areas as well as seen moving 

from place to place carrying their wares on push carts or in cycles or in baskets placed on their heads. 

The total number of vendors in Muzaffarpur city is approximately 9,758 (Source: SPUR Vendor 

Study). The percentage of static vendors is 91.1% and that of mobile vendors is 8.9%, and street 

vendors are engaged in a range of activities from selling vegetables and fruits, non-vegetarian items, 

readymade garments to other household items. A large number of vendors are engaged in trade of 

miscellaneous items like plastic toys, leather goods etc with many of them self-employed as cobblers, 

porters, barbers etc. Vendor does not require any license (or permit) for vending business on footpath 

or any other place in urban area since the state/ULBs do not have a definite policy in this regard 

(SPUR Study: Understanding the Urban Street Vending Sector: A Socio Economic Study Across 28 

Towns in Bihar). The types of street vendor in terms of gender, fixed and mobile are shown in Table 

3.4. Analysis of vendors in terms of types of items sold by them is shown in Table 3.5. 

Table 3.4: Types of Street Vendors in Muzaffarpur 

Static Male Static Female Moving Male Moving Female Total 

Number 5075 3810 593 280 9758 

% 52.01 39.04 6.08 2.87 100 

Source: Survey conducted by SPUR team 

Table 3.5: Types of Street Vendors in Muzaffarpur 

S. No. Vendors Number Percentage 

1 Vegetable 2437 25.0 

2 Fruit 1472 15.1 

3 Non-veg 956 9.8 

4 Cloth 1111 11.4 

5 Food 1893 19.4 

6 Others 1889 19.4 

Total vendors 9758 100 

Source: Survey conducted by SPUR team 

A detailed analysis of street vendors and guidelines for rehabilitation of vendors is given in a separate 

chapter in this report. 

3.5 Agri-Resource Potential 

Bihar produces 75% of the total litchi production of India and occupies nearly 54% of the area under 

litchi plantation in the country. The area under litchi in Muzaffarpur district is about 8,000 Ha with a 

production of about 75,000 tonnes per annum. The fruit is exported to England, Spain, Netherlands, 

France and Nepal. There are a few established SME litchi processing units in the district as presented 

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in. Table 3.3. In addition, there are evidently, a large number of micro-sized and HH level operators 

in the value-chain. 

Table 3.6: Some SME Litchi Processing Units in Muzaffarpur District 

Sl. 

Area of 

Capacity 

Name of Unit Location 

No 

Operation (Tonnes/Annum) 

Activity 

Litchi squash, 

1 

Litchi 

Litchika Bela‐ 

Mushahari 500 canning 

International Muzaffarpur 

Litchi 

& 

honey 

2 

Shyama Agro Ratwara Bandra block, 

Squash & 

200 

Industry Muzaffarpur Muraul block 

Canning 

3 

Mushahari, 

Premier Food 

Squash & 

Khabra Road Saraiya, 

200 

Products 

Canning 

Kanti 

4 

Thakur Litchi 

Bochahan 

Squash & 

Bochahan 

200 

Industry 

block 

Canning 

Radha Krishna 

Pasteurized 

5 Implex Pvt. Ltd. Muzaffarpur Muzaffarpur 500 Litchi 

juice 


The Agri-resource potential in terms of other food crops is presented in Table 3.7. A comparative 

perspective of production of major crops is presented in Annexure 3.1. 

Table 3.7: Agri-resource potential of Muzaffarpur District 

CEREALS & PULSES 

M.T 

Rice 12703 

Wheat 259634 

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Maize 40739 

Lentil 1262 

Moong 16611 

Arhar 405 

FRUITS 

Mango 90304 

Guava 11528 

Litchi 54322 

Lemon 4962 

Banana 219284 

Papaya 1692 

Amla 806 

Others 10616 

VEGETABLES 

Potato 190599 

Onion 47037 

Tomato 83220 

Cauliflower 65504 

Cabbage 50080 

Brinjal 61513 

Okra 34933 

Chili 22301 

Bitter-gourd 35771 

OTHERS 

Mustard Oil 4502 

Sugarcane 50480 

Source: Agriculture profile of Bihar state 

The Muzaffarpur city and district has mainly agricultural resources as mentioned in the above table. 

The agri-resource potentials are indicatively shown in the Figure 3.2. 

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Figure 3.2: Resource Map of Muzaffarpur 

3.6 Tourism 

Muzaffarpur has a few locations of regional and local significance. Some of these are 

Baba Garibnath Temple 

This is one of the famous temples of Lord Shiva. A long history is associated with the establishment 

of the temple and the Shivling. Baba Garibnath who had a great sympathy for the poor, established the 

temple and one of the great devotes Shri Shivdhari Pathak of Chapra district ensured regular worship 

and took care of the temple premises. It is also called as second Baidhnath. 

Chaturbhujsthan Temple 

Chaturbhuj Temple is famous for its spirituality and faith. In 1303 AD in a village called Turki a big 

idol of Lord Chaturbhuj was found. The saint brought the idol, all the way from Turki to Muzaffarpur, 

on foot which was a reflection of his faith and worship. "Lord Chaturbhuj" was established beside 

"Lord Shiva" under a tree and since then his regular worship started. 

Gola Durga Temple 

This great temple is an icon of faith, worship and belief in Ma. It is situated on the south coast of 

"Gandak" river. Possibly, it was made in the year of 1932 by Darbhanga Maharaj Kamlesh Singh. 

Devotees come in masses to worship Goddess Kali. 

Bangla Mukhi Temple 

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This is a very important temple of the city. Many of devotees within the city come here to worship. 

Litchi Gardens 

Litchi gardens of Bochaha, Jhapaha and Mushahari from the first week of April to the second week of 

May. They are located in a radius of five to seven km from Muzaffarpur 

National Litchi Research Centre at Rahua 

One can also visit the National Litchi Research Centre at Rahua, five km from Muzaffarpur town, to 

know more about litchi. 

Pankha Toli Temple 

Bishops’ House church and European Church 

3.7 Enterprise Scenario 

Muzaffarpur district is the centre of several industries. The Prabhat Zarda Factory, Bharat Wagon and 

Engineering Ltd., the thermal power station at Kanti, IDPL factory, units of the Leather Development 

Corporation, Muzaffarpur Dairy (a unit of the Bihar State Dairy Corporation) are the major industries 

located in Muzaffarpur city and its periphery. The above industries have generated considerable 

employment and have also been helpful in establishing a number of small industries including a few 

cottage industries. An important item that is manufactured in Muzaffarpur city is the railway wagon. 

Also, Muzaffarpur city is a very important trading centre for textiles. Sutta Patti market is famous for 

textile trading in Bihar. 

3.7.1 Enterprises Units under BIADA 

Muzaffarpur has not been able to establish itself as an industrial centre, despite having good rail and 

road connectivity and regional potential for agro based industries. Market connectivity and resource 

base has not helped develop industry. In the south-western part of Muzaffarpur city, Bela Industrial 

Area is spread around 392 acres. Out of these 392 acres of industrial area, 266 acres have been 

allotted to industries and about 21 acres is under dispute .Effectively, just over 36 acres of land is 

presently vacant of which the single largest chunk of available land is 2 acres. Due to lack of power 

supply and the problem of water logging off-take of sites in the estate is poor and many units have 

closed down. Many sheds are in dilapidated condition. Presently, there are 92 industrial units in 

operation in the Industrial Estate and Industrial Area put together. 

Details of the type of industrial units existing in the BIADA industrial estate at Muzaffarpur along 

with their current status is shown in Annexure 3.2. Information relating to some specific industry 

types is given in the Table 3.8 below. 

Table 3.8: Specific Industry Types-Muzaffarpur 

S. No. Types of Industrial Units Numbers of Units 

Active Under Construction Sick/Closed 

1 Poultry & Cattle feed 7 10 3 

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2 Flour milling & Spices 6 8 2 

3 Litchi & fruit processing 1 2 - 

4 Plastic & PVC related industries 10 7 4 

5 Semi-finished leather goods 5 1 3 

6 Agricultural implements 4 1 - 

Source: BIADA, Muzaffarpur 

The profile of units in these estates indicate little evidence of clustering of industrial enterprises in the 

region, but for those in value-chains related to agro-food products (including animal feed to an extent) 

and leather. 

The details of these 225 industrial units in terms of name of units, plot number, area, name of products 

has been given in Annexure 3.2. The industrial area of Muzaffarpur city is shown in Figure 3.3. 

Figure 3.3: Industrial Area of Muzaffarpur 

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3.7.2 Enterprises Units under District Industry Center (DIC) 

Similar information obtained from the DIC is given below for a few specific industry types. 

The analysed data as shown in table below indicate that there are total 80 main industrial units in 

Muzaffarpur. The majority of industries are related to flour milling and spices (n-22), readymade 

garments (n-21), gate, grill and shutter mfg (n-18), lac bangle mfg. & related work (n-13), cold 

storage (n-3) and, litchi pulp, juice & fruit juice (N-3). 

Table 3.9: Main Industry Types-Muzaffarpur 

S.No. Industry type Number of Units % 

1 Flour Milling and spices 22 27.5 

2 Readymade garments 21 26.3 

3 Gate, Grill and shutter mfg. 18 22.5 

4 Lac bangle mfg. & related work 13 

16.3 

5 Cold storage 3 3.8 

6 Litchi pulp, juice & fruit juice 3 3.8 

Total 80 100 

Source: DIC, Muzaffarpur 

Evidently, there is potential for agro-food industry, readymade garments, gate grill, cold storage as 

well as litchi. In an environment where few units register themselves with the DIC, the presence of 

many such registered units is revealing. The detail of industrial units registered under DIC is given in 

Annexure 3.3. 

3.7.3 Critical service sector enterprises 

Evidently, some critical service sector enterprises in the region may be also viewed in terms of 

hospitals and nursing homes/diagnostic clinics, hotels and restaurants as well as construction 

contractors. In addition, there are a number of service sector enterprises involved in trade and 

commerce such as operating agencies/dealerships and transport businesses. There are also many 

enterprises into retail of products, like garments, furniture and jewelry. 

There are about 30 hotels, guest houses and lodges in Muzaffarpur. Some other important service 

sector enterprises include hospitals as well as construction industry stakeholders and contractors. 

Also, there are around more than 100 hospitals/nursing homes and diagnostic clinics in the city. Juran 

Chapra area of city is famous as a hub for hospital industry. 

Many enterprises serve as dealers for a range of household and industrial/agricultural equipment. 

Evidently, there are over a 10 enterprises operating agencies or dealerships who provide employment 

to between 5-20 persons each. 

Many service sector enterprises like those into civil engineering contractorship or nursing homes and 

diagnostic clinics are not registered with the DIC. This is evidently because they are not aware of the 

scope to benefit by way of preferential interest rates/priority credit and investment subsidies, PPP 

options to facilitate upgrading. As a matter of fact, the Government of India has been assisting the 

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construction industry as well as hospitals and diagnostic clinics in other Indian States like 

Maharashtra and Andhra Pradesh through the PPP route. 

Table 3.10: SWOT Analysis of the Service Sector 

Strengths 

-Typically, enterprises possess competitive advantage in 

terms of ability to cater to local demand and provide 

customised services (e.g., civil engineering 

contractors/builders, nursing homes and diagnostic clinics, 

printing units, etc.) 

-Growing regional population reflects sustained growth in 

demand. 

-Presence of supporting service enterprises such as cold 

stores to facilitate evolution of a vibrant horticulture 

processing base. 

Weaknesses 

-Relatively, small populations of the urban and 

adjoining regions restricts enterprise growth 

potential of service sector firms. 

-Resource scarce nature of enterprises affect 

scope for providing value-added services. 

-Inadequate information base; None of the 

service sector enterprises have availed of 

assistance under PPP schemes of the 

Government nor many even assistance provided 

for individual enterprises for example investment 

subsidies for super speciality hospitals. 

Opportunities 

-There are a range of PPP options for service sector 

enterprises as to help them offer value-added services and 

also upgrade equipment: Diagnostic centres and nursing 

homes may establish expensive testing equipment (e.g., 

MRI test equipment and medical waste incinerators) on PPP 

basis; construction industry stakeholders may establish flyash 

related classifiers, bulkers (transport vehicles), steam 

curing and testing facilities under similar schema to produce 

value-added high quality but cheap building material 

(ranging from paints to tiles) from harmful fly-ash presently 

disposed of by thermal power stations in adjacent districts 

like Muzaffarpur; printing units may establish upgraded prepress, 

press and post-press facilities on PPP basis; etc. 

-There are a range of financing instruments such as the 

CGTMSE which are available for both manufacturing as 

well as service sector enterprises that may be leveraged to 

facilitate start-up, upgrading and growth. 

-Power intensive service sector enterprises such as cold 

stores may be supported through: introduction to 

appropriate bio-mass technologies for competitive 

generation of power; integrated industrial infrastructure with 

dedicated power connectivity through PPP schemes of the 

Government of India. 

-The PPP option offered to the park hotel in Muzaffarpur 

where municipal land has been offered on soft lease basis is 

an option that need be retained for potential service sector 

and trade and commerce related enterprise initiatives in 

terms of truck terminals, commercial complexes to the 

extent possible. 

Threats 

-Inadequate initiatives towards upgrading 

equipment/services may lead to regional uncompetitiveness 

of enterprises such as diagnostic 

clinics to enterprises in other regions. 

-Inadequate co-operative actions by enterprises 

in different service sectors will make them uneligible 

for assistance under cluster based PPP 

schemes of the Government. 

3.7.4 Business Catalogue 

The business catalogue is a directory which contains information on some important public and 

private institutions, of relevance to industry and commercial stakeholders. In this context, contact 

details of relevant institutions have been provided in Annexure 3.4. 

***** 

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4 INVESTMENT CLIMATE AND BUSINESS 

COMPETITIVENESS ANALYSIS 


The investment climate in the city may be studied in terms of demand and factor conditions as well as 

other parameters of the business environment. Further, in this CBP certain competitive/potential subsectors/value-chains 

have been identified on the basis of “Revealed Comparative Advantage” in terms 

of start-ups and performance in the region as revealed by data obtained from the DIC, BIADA as well 

as agri-resource base. Existing and potential competitiveness of these value-chains have also been 

given due consideration. These value-chains have relatively higher scope for upgrading and 

development of a vibrant labor-intensive and value-adding manufacturing base. Also, these could 

have among the highest pro-poor impact even in the short-to-medium-term as the livelihood of 

thousands (and even tens of thousands) of the urban populace is dependent on these segments. 

Industrial and commercial activities catering largely to limited local demand can hardly be expected to 

drive economic growth of the city. Therefore, value-chains that evidently possess regional or even 

national competitiveness and potential have been identified. 

4.2 Factor and Demand Conditions and Others Parameters of the Business Environment 

Factor conditions may be considered in terms of access to as well as cost of raw material, power, 

skilled labor, credit, basic and specialized industrial infrastructure and related and supporting 

enterprises and institutions. Other parameters related to the business environment may be viewed in 

terms of policy and schemes which are discussed in Chapter 5 as well as on the regulatory 

environment including in terms of approval systems for start-up discussed in Chapter 8. 

Raw material inputs: 

The city‟s hinterland comprises a range of horticulture crops like mangoes, bananas and litchis as 

well as a large base of cereals like wheat as well as pulses (like moong). 

Manpower skills: 

The city has a base of traditionally skilled manpower in a range of industrial and commercial 

activities such as in lac bangle manufacture, jewelry manufacturing, furniture making, garment 

manufacture etc. However, there is evidently a dearth of specialized skill development institutions 

related to specific value-chains but for a few private sector institutions and NGOs providing 

training in basic garmenting. 

Power: 

Despite the existence of the large industrial area, that is, phase I and phase II of the Bela Industrial 

estate established by BIADA, many enterprises do not get the critical necessary benefit from such 

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enclaves. About one half of the estate does not have access to continuous power connectivity. 

Even for the few hours that power is available, there are frequent power cuts which significantly 

affect typical manufacturing industries. As a matter of fact, about 20 percent of the units that have 

commenced operations (till date) have wound-up. The option of strengthening existing industrial 

infrastructure through State Government Schemes, or through linkages with Public Private 

Partnership (PPP) schemes (such as the Industrial Infrastructure Development or IID) scheme of 

the Govt. of India merits serious consideration. 

Basic industrial infrastructure: 

The industrial estate in the region suffers from power and water logging constraints. Nevertheless, 

parts of the estate are relatively better-off in these fronts. There is over 35 acres of land available 

for new units in the estate. The land in the estate as well as other land within and beyond the 

municipal limits may be utilized by start-ups. There is evidently no municipal land of an acre in 

stretch (in one location) which may be utilized for purposes of establishing common facilities. 

Related and supporting enterprises and institutions: 

The litchi value-chain alone has the benefit of access to necessary supporting enterprises like cold 

stores as well as supporting technical institutions (for inputs in pre and post-harvest management) 

like the Litchi Research Institute. However, value-chains such as the lac bangle, textiles and 

garments (cloth), jewelry, furniture etc. suffer on this front. Basic training and testing lab 

facilities, modern packaging units etc. are in dearth. 

Demand Conditions: 

The city is well connected by rail and road and the market connectivity is relatively strong to 

facilitate movement of goods into and from the city. The town is connected by NH-28, NH-57 and 

NH-102. The road network within the city is managed by three departments namely the 

Muzaffarpur Municipal Corporation (MMC), Public Works Department (PWD) and the District 

Council (DC). Muzaffarpur city also falls on the Samastipur-Motihari railway section and is 

therefore an important railway junction. In fact this station handles more than 10,000 passengers a 

day. Also, the Ramdayal Nagar railway station is situated to the South of town on the 

Muzaffarpur-Hajipur Railway line in ward 31. The Narayanpur-Anand railway station is located 

near an industrial estate outside MMC area and facilitates the transportation of bulk goods. The 

nearest airport is at Patna, a three hour drive from the city. However, if the expected level of local 

economic development takes place, the existing airport of |Muzaffarpur itself, could be made 

operational in the long term and commencement of regular air services will in itself give a boost 

to LED. The commercial segment of the city (also) comprises a strong network of traders with 

strong market connectivity. The circumstances reflect a relatively strong local demand condition 

in the light of the city‟s population of 467,007 persons (2011) and market connectivity country 

wide, as also scope for exports through the airport at Patna and seaport at Kolkata. In addition, the 

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city specific social infrastructure needs to be developed as indicated in the CDP as to complement 

(and augment) private investment in the region. 

4.3 Identification of Economic Sectors and Value-Chains with Potential 

The DIC, BIDA as well as Chamber of Commerce data indicate a larger number of industrial and 

commercial units catering to local (largely city level) demand. A few industrial and commercial subsectoral 

value-chains evidently have potential to cater to needs beyond limited local demand. Some of 

them (prioritized by the city level Task Force) include the litchi, lac bangle as well as “cloth” (textiles 

& garment) value-chains. The litchi value-chain has comparative advantage in terms of a critical 

factor condition, namely abundant raw material availability. The lac bangle value-chain has 

comparative advantage in terms of traditionally skilled artisan/manpower base. The “cloth” valuechain 

has also comparative advantage in terms of Muzaffarpur being the largest trading hub of the 

core raw material fabric for value-added processing. 

4.4 The Industry Climate and Business Competitiveness Analysis 

4.4 The Industry Climate and Business Competitiveness Analysis 

A study of the industry climate and analysis of the business competitiveness was also carried out by 

administering a survey based on questionnaire finalized in consultation with SPUR. The questionnaire 

used to assess the industry climate and business competitiveness analysis is given in Annexure 4.1. 

A total of 10 prominent business and industry leaders were interviewed for the purpose. Responses to 

all questions were sought in the range of 1 to 5 (from Best to Worst). The survey results have been 

analysed in terms of the following 8 broad categories: 

I. Basic Infrastructure 

II. Simplicity of Rules and Procedures 

III. Cost in terms of time for doing business 

IV. Orientation of the Government 

V. Responsiveness of the government 

VI. Corruption 

VII. Property rights and Security 

VIII. Demand Conditions 

The small sample size was one of the major limitations of the survey but time constraint did not 

permit a bigger sample size. Conclusions about the industry climate and business competitiveness in 

Muzaffarpur were arrived at on the basis of the majority response to the questions asked and these are 

given below: 

Basic Infrastructure: 

Basic infrastructure in terms of Roads (inter-city), banking facilities, telephone connection and 

internet connection has improved substantially, but in terms of electricity supply, water availability 

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and trained workforce, much more improvement is required. Overall there is a positive trend in 

infrastructure improvement in the area. 

Simplicity of Rules and Procedures: 

The rules and procedures in terms of accessing land, water, electricity, telephone and other 

connections have been simplified in the recent past. Rules and procedures related to work conditions 

for labour, employee provident fund, other employee welfare regulations, hiring new employees and 

firing non-performing employees; have not changed considerably in the area. Rules and procedures 

related to environmental regulations, transport regulations, dealing with other regulations, dealing 

with various inspectors etc. have been simplified and overall there is a continuous positive change. 

As far as rules and procedures related to the payment of income tax, central excise, sales tax/VAT, 

and other state-level taxes are concerned, most of the rules have been made simple for the enterprises 

in the state of Bihar. 

Cost in Terms of Time for Doing Business: 

As far as cost in terms of time for doing business is concerned various parameters like land allotment, 

building plan approval and issue of trade license by the municipality were not seen as hindrances. 

NOC from pollution control board was considered cumbersome. Electricity connection and 

registration with DIC were also probed. Time taken for building plan approval is ranging from 15 

days to1 months; depend upon case to case basis. Time taken for issue of trade license is around 20 

days. Time taken for NOC from pollution control board and time taken for registration with DIC is 

ranging from 1 month to 2 months. 

Orientation of the Government 

The various organs of state government are oriented towards bringing a positive change and due to 

this the political leadership and bureaucracy are contributing in a very positive way to the 

developmental process. The local government (municipality) and its constituents are not much 

contributing positively in the development process. 

Corruption 

As told by most of the respondents, corruption in state government in terms of giving money/gifts for 

general good relations, giving money/gifts in lieu of work to be done, getting employment 

to favorites of politicians, bureaucrats etc., providing other benefits to their household members, 

paying juniors to meet senior government functionaries; has been reduced substantially after the 

present government has taken over. Corruption in terms of the above mentioned parameters in Local 

Government (Municipality) has also reduced to some extent. 

Property rights and Security: 

Most of the respondents had little or no knowledge about the security of Intellectual property rights 

and that there are mechanisms to handle the issues related to it. There is practice of encroaching the 

vacant public land but all private Immovable properties are safe in the state. As far as personal 

security of business persons is concerned, there is no problem in the area. 

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Demand Conditions: In the recent past the demands for goods and services have improved in the 

area. 

***** 

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5 CENTRAL AND STATE GOVERNMENT 

PROGRAMMES 


Several programmes and schemes of the Central and State Government ministries, departments and 

institutions may be twinned with the CBP of Muzaffarpur. Some of these programmes and schemes 

such as the PMEGP and the SJSRY are relevant for start ups, while others like the PPP based cluster 

development schemes are of relevance to existing industrial and commercial stakeholders. As matter 

of fact, but for programmes and schemes related to food processing and horticulture, most others are 

generic and cut across/transcend value-chains. 

While some programmes and schemes of the Central and State Government such as those providing 

assistance for conduct of EDPs have been arranged by the IED, Patna and a few NGOs in 

Muzaffarpur, by and large most Central Government options remain untapped. Evidently, in the past 

institutions have leveraged and conducted a few EDPs sponsored by the Ministry of Food Processing 

Industries (MOFPI) (a Central Government scheme) and Shram Vikas Yojna/Mukhya Mantri Vikas 

Yojna (a State Government Scheme) across Bihar. Financial grants of between Rs. 1.4 lakh to Rs 2 

lakh is provided for each EDP under such programmes. Typically, however, the low budget MSME- 

DI led EDPs and ESDPs with outlay of between Rs. 30,000-80,000 alone are provided to potential 

start-ups in the region. 

5.2 PPP Cluster Development Scheme of the Central Government 

The cluster development schemes pursued by different Central Government bodies have been in 

progress for several years. However, the benefit of these schemes has completely by-passed North- 

Bihar. As a matter of fact, the State Government is yet to evolve a comprehensive PPP based cluster 

development policy. Since 2000, many Central Government ministries have launched cluster 

development initiatives under taken in a PPP mode. The nature of such programmes and their scope is 

presented in the tabulation following. Evidently, while interventions under some programmes are 

more “broad-based” in terms of their emphasis on (“soft intervention”) improvements in different 

operational areas related to cluster enterprises such as technology, finance and marketing skills, today 

resource outlays are skewed towards common infrastructure and technology upgrading. Evidently, 

much of such initiatives are oriented towards common facilities and infrastructure development on a 

public-private partnership mode. 

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Table 5.1:Progress of some relevant Central Government programmes and schemes in India 

Programme/Scheme 

Scope of the programme/scheme 

Ministry of MSME 

Micro and Small 

The scheme is broad based but with over 97 per cent of resource outlay 

on common facilities for upgrading technology and productivity. A 

scheme for infrastructure upgrading, namely the Industrial Infrastructure 

Development (IID) scheme has been merged with the MSECDP.A total 

outlay of about Rs 135 million by way of grant is available per cluster 

for common facilities and Rs. 60 million for infrastructure related 

interventions. The limit for soft interventions is Rs. 25-30 million per 

Enterprises Cluster cluster. Usually, each cluster where MSMEDIs are directly intervening, 

Development 

has a (Cluster Development Executive) CDE whose costs are borne by 

Programme (MSECDP) the MSMEDIs or by concerned local institutions. The total budgetary 

outlay by the DCMSME for common facilities alone is about Rs. 5000 

million, and till date, interventions (including diagnostic studies) have 

been pursued in over 400 clusters. While a few programmes were 

initiated as early as 1998, most were launched since 2002-3.The cluster 

of litchi in Muzaffarpur is being supported under this scheme. However, 

progress of interventions merits technical assistance. 

The scheme is broad-based with a percentage of about 25 per cent outlay 

being oriented towards common facilities. A total outlay of Rs. 10 

million per cluster amounting to Rs. 1000 million for 100 clusters is 

provided for. Interventions are led by a trained Cluster Development 

Scheme Fund for 

Agent (CDA) representing concerned implementing agencies who are 

Regeneration of 

largely NGOs and functionaries of government departments. Under the 

Traditional Industries 

scheme the Ministry of MSME through nodal agencies such as the Coir 

(SFURTI) 

Board and Khadi and Village Industries Commission (KVIC) provide 

financial assistance for implementation. Interventions are on since 2006- 

7 in about 100 clusters. The scheme is expected to continue into the most 

5 year plan. 

Ministry of Food Processing Industries 

Focus on evolution of specialised and basic industrial infrastructure. 

Scheme for Mega Food 

There is a budgetary ceiling by way of grant assistance per cluster of Rs. 

Parks (SIMFP) 

400 million. Interventions are on across the country. 

Ministry of Textiles 

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Programme/Scheme 

Scheme for Integrated 

Textile Parks (SITP) 

Baba Saheb Ambedkar 

Hastshilp Vikas Yojana 

Scheme (AHVY) by 

the DC(Handicrafts) 

Integrated Handloom 

Cluster Development 

Scheme (IHCDP) by 

the DC(Handlooms) 

Industrial Infrastructure 

Up-gradation Scheme 

(IIUS) 

Scope of the programme/scheme 

Exclusive emphasis on creation of specialized and basic industrial 

infrastructure for textile and garment units. A resource outlay of about 

Rs. 15000 million has been pegged for 40 parks and more are in 

progresses across the country. 

Interventions are relatively broad-based. Interventions have been 

pursued in across 684 clusters since 2001-2. Emphasis has been more 

towards strengthening co-operatives and NGOs in clusters. 

Interventions are relatively broad-based. Interventions are on in over 20 

larger clusters and 100s of mini-handloom clusters since 2005-6. 

Interventions are being pursued through trained CDEs representing 

NGOs and related state government as well as National bodies. 

Assistance provided per cluster varies from Rs. 5 million to Rs. 20 

million depending on size of the cluster. Recently, a few megahandloom 

clusters have been identified, envisaging outlay of even up to 

Rs. 700 million per cluster. 

Ministry of Commerce and Industry 

The scheme accords exclusive emphasis on infrastructure development 

since 2004-5 and provides about Rs. 50 crore per cluster. 

5.3 Relevant Central Government Programmes 

5.3.1 Office of Development Commissioner (MSME) - Ministry of MSME 

Some schemes and programmes of critical relevance under this office include: 

‣ National Manufacturing Competitiveness Programme (NMCP) Scheme 

‣ Micro & Small Enterprises Cluster Development Programme 

‣ Credit Linked Capital Subsidy Scheme for Technology Upgradation 

‣ Credit Guarantee Scheme 

‣ Mini Tool Room Scheme 

‣ Scheme for Micro Finance Programme 

‣ Programmes & Schemes of the Ministry of MSME 

‣ MSME Market Development Assistance (MDA) 

‣ ISO 9000/ISO 14001 Certification Reimbursement Scheme 

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National Manufacturing Competitiveness Programme (NMCP) 

The Government had launched the National Manufacturing Competitiveness Programme since 2005 

with an objective to support Small and Medium Enterprises (SMEs). The programme provides 

assistance in a range of areas: 

‣ Marketing Support/Assistance to MSMEs (Bar Code) 

‣ Supports for Entrepreneurial and Managerial Development of SMEs through Incubators 

‣ Building Awareness on Intellectual Property Rights (IPR) for MSME 

‣ Lean Manufacturing Competitiveness 

‣ Mini Tool Rooms 

‣ Design Clinic for design expertise for MSMEs 

‣ Technology and Quality Upgradation Support, etc. 

Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) 

The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has 

adopted the cluster development approach as a key strategy for enhancing the productivity and 

Competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their 

collectives in the country. The Scheme addresses common issues such as improvement of technology, 

skills and quality, market access, access to capital, etc. It also has an objective to create/upgrade 

infrastructural facilities in the new/existing industrial areas/ clusters of MSEs. and to set up common 

facility centres (for testing, training, raw material storage/processing depot, effluent treatment, 

complementing production processes, etc). 

The Scheme assists for conduct of a Diagnostic Study of about 3 months duration, sourcing of 

technology, setting up of Common Facility Centres (CFCs), organizing workshops, training and study 

visits etc. Govt of India assistance may be viewed in terms of: Diagnostic Study - Maximum cost Rs. 

2.50 lakhs. Soft interventions - Maximum cost of project Rs. 25.00 lakh, with GoI contribution of 

75% (90% for clusters with more than 50% women/micro/village/SC/ST units).; and Hard 

interventions i.e. setting up of CFCs – maximum eligible project cost of Rs. 15.00 crore with GoI 

contribution of 70% (90% for Special Category for clusters with more than 50% 

women/micro/village/SC/ST units). 

As indicated, an Industrial Infrastructure Development scheme has been subsumed in the MSE (CDP). 

This facilitates Infrastructure Development for facilities like power distribution network, water, 

telecommunication, drainage and pollution control facilities, roads, banks, raw materials, storage and 

marketing outlets, common service facilities and technological backup services for MSEs in the new/ 

existing industrial estates/areas. It also supports establishment of renewable and non conventional 

energy systems. Projects may be implemented through an appropriate State Government agency. 

Progressively, SPVs of industry may also implement such projects. Infrastructure Development in 

new/ existing industrial estates/areas are assisted as per the following terms: Maximum eligible 

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project cost of Rs.10.00 crore, with GoI contribution of 60% (80% for Special Category States and for 

clusters with more than 50% women/micro/SC/ST units. 

Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation of Small 

Scale Industries 

The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to MSE 

units, on institutional finance (credit) availed of by them for modernization of their production 

equipment. The Scheme provides for 15 per cent capital subsidy on related equipment. The eligible 

amount of subsidy calculated is based on the actual loan amount not exceeding Rs. 1 crore. The Small 

Industries Development Bank of India (SIDBI) and the National Bank for Agriculture and Rural 

Development (NABARD) act as Nodal Agencies for the implementation of this scheme and several 

Public Sector Banks have also been inducted as nodal banks/agencies for implementation and release 

of capital subsidy under the CLCSS.CHEME 4 

Credit Guarantee Fund Scheme for MICRO AND SMALL ENTERPRISES (CGTMSE) 

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the 

Government of India to make available collateral-free credit to the micro and small enterprise sector. 

Both existing and new enterprises are eligible to be covered under the scheme. The Ministry of Micro, 

Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI), established 

a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to 

implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The corpus of 

CGTMSE is contributed by the Government and SIDBI in the ratio of 4:1. The institution which are 

eligible under the scheme are the SIDBI, scheduled commercial banks (Public Sector Banks/Private 

Sector Banks/Foreign Banks) and select Regional Rural Banks. The credit facilities which are eligible 

to be covered under the scheme are both term loans and working capital facility up to Rs.100 lakh per 

borrowing unit, extended without any collateral security or third party guarantee, to a new or existing 

micro and small enterprise. For those units covered under the guarantee scheme, which may become 

sick owing to factors beyond the control of management, rehabilitation assistance extended by the 

lender could also be covered under the guarantee scheme. It is noteworthy that if the credit facility 

exceeds Rs.50 lakh, it may still be covered under the scheme but the guarantee cover will be extended 

for credit assistance of Rs.50 lakh only 

Typically, the guarantee cover available under the scheme is to the extent of 75 per cent of the 

sanctioned amount of the credit facsility. In case of default, the Trust settles the claim up to 75% (or 

80% wherever applicable) of the amount in default of the credit facility extended by the lending 

institution. Operations of the CGTMSE are conducted through Internet. The website of the CGTMSE 

has been hosted at www.cgtsi.org.in. 

Final Report 

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Scheme for Micro Finance 

The Scheme has been tied up with the existing programme of SIDBI by way of contributing towards 

security deposits required from the Micro Finance Institutions (MFIs/NGOs) to secure loans from the 

SIDBI. The scheme is being operated in underserved States and underserved pockets/districts of other 

states. The Government of India provides funds for Micro-Finance Programme to SIDBI, which is 

called a „Portfolio Risk Fund‟ (PRF).At present SIDBI takes fixed deposit equal to 10% of the loan 

amount. The share of MFIs/NGOs is 2.5% of the loan amount (i.e. 25% of security deposit) and 

balance 7.5% (i.e. 7.5% of security deposit) is adjusted from the funds provided by the Government of 

India. Assistance under this scheme may be leveraged to evolve and strengthen MFIs in the region. 

Quality Upgradation/Environment management for small scale sector through incentive for ISO 9000 

/ISO 14001 /HACCP Certification: The scheme provides incentive to those small scale/ ancillary 

undertaking who have acquired such certifications. The Scheme envisages reimbursement of charges 

of acquiring certifications to the extent of 75% of the expenditure subject to a maximum of Rs. 

75,000/- in each case. Permanent registered Small Scale/ancillary/Tiny/Small Scale Service Business 

Enterprises (SSSBE) units are eligible to avail the Incentive Scheme. The Scheme provides one time 

reimbursement of 75% of the admissible expenses incurred for acquiring ISO 9000/ISO 14001 

certification, limited to Rs. 75,000 to a small unit. 

MSME – MDA Scheme 

The scheme offers funding for: Participation by (manufacturing) MSEs in international trade 

fairs/exhibitions under MSME India stall; Sector specific market studies (also) by Industry 

Associations. Initiating/contesting anti-dumping cases by SSI Associations; Reimbursement of 75% 

of one time registration fee and 75% of annual fees (recurring) paid to GSI by Small & Micro units 

for the first three years for bar code. 

Under this scheme, the Govt. of India reimburses 75% of air fare by economy class and 50% space 

rental charges for one representative of an MSE unit for General category entrepreneurs. For 

Women/SC/ST Entrepreneurs & Entrepreneurs from North Eastern Region, Govt. of India reimburses 

100% of space rent and economy class air fare. The total subsidy on air fare & space rental charges is 

restricted to Rs.1.25 lakh per unit. SCHEME 7 

The Schemes of the DC (MSME) also addresses the growing demand for tools and dies in the 

country, particularly in the MSME sector. The scheme supports establishment of large as well as Mini 

Tool Rooms and Training Centres. Such a centre can be set up at an estimated cost of around Rs. 15 

crore (including Rs. 10 crore towards cost of machinery/equipment). However, the cost may vary 

depending upon the activities proposed to be undertaken. The Central assistance will be in the form of 

one time grant-in-aid equal to 90% of the cost of machinery/equipment (restricted to Rs. 9.00 crore in 

each case) in the case of a new Mini Tool Room. Such schemes may be of use in the North Bihar 

region in the longer term context, as the engineering and capital goods sector evolves. 

Final Report 

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5.3.2 Schemes of the Small Industries Development Bank of India (SIDBI) 

SIDBI has been offering several schemes for developing the MSE sector. Importantly, as indicated 

they serve as nodal agencies for assistance under the CGTMSE and IID Schemes. The schemes of 

assistance for MFIs are also of importance in the region. 

5.3.3 Schemes of the National Small Industries Corporation (NSIC) 

Amongst its many services NSIC registers MSE units under a Single Point Registration scheme for 

participation in Government Purchases. Benefits under this scheme includes: Issue of tender sets free 

of cost; exemption from payment of earnest money and waiver of security deposit. Also, built up 

space is provided by the NSIC to MSMEs in several domestic exhibitions at subsidized rates to enable 

them to exhibit their products and services. The rate of subsidy available on space charges is as under: 

Micro Enterprises: 75%; Small Enterprises: 60%; Medium Enterprises: 25%. 

In addition, buyer-seller meets are also organized to bring bulk buyers / Government departments and 

MSMEs together at one platform. Bulk and departmental buyers such as the Railways, Defence, 

Communication departments and large companies are invited to participate in buyer-seller meets to 

bring them closer to the MSMEs for enhancing their marketing competitiveness. The net budgetary 

support for a Buyer-Seller Meet is subject to the following limits: Rs. 5 lakh in case of the meet is 

held in „A‟ class cities; Rs. 3 lakh in case of the meet is held in „B‟ class cities; Rs. 2 lakh in case the 

meet is held in „C‟ class cities. 

5.3.4 Schemes of the Ministry of Commerce and Industry 

Assistance to States for Developing Export Infrastructure and/or other Allied Activities (ASIDE). The 

objective of the scheme is to involve states in the export effort by providing assistance to State 

Governments for creating appropriate infrastructure for the development and growth of exports. As 

indicated, the IIUS scheme also provides similar support for even non-export oriented units. 

Assistance by way of grant-in-aid is provided to the tune of 75 percent of project cost, subject to a 

ceiling of Rs. 50 crore per cluster/location. 

5.3.5 Schemes of the National Horticulture Board (NHB) 

Schemes of this institution are in terms of subsidies towards: High Quality commercial horticulture 

crops; Herbs; Aromatic Plants; Seed & Nursery; Biotechnology, Tissue Culture; Bio-pesticides; 

Organic Foods; Estt. of Laboratory for Agri /Horticultural activities; Grading 

/Washing/Shorting/Drying Packing Centres; Pre-cooling Units/Cool Stores; Refer Van/Containers; 

Retail Outlets; Ripening/curing Chamber; Market yard; Vapor Heat Treatment unit; Primary 

processing of products, fermentation, extraction, distillation, juice vending, pulping, dressing, cutting, 

chopping etc; Cartons, Aseptic packing. 

Similarly, assistance under the scheme is offered as back-ended capital investment subsidy not 

exceeding 20% of the project cost with a maximum limit of Rs. 25 lakh per project of Post-Harvest 

Management and primary processing of horticulture. 

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Back-ended capital investment subsidy not exceeding 25% of the project cost with a maximum limit 

of Rs.50 lakh per project is also offered for establishing related cold stores and upgrading existing 

cold stores. 

5.3.6 Agriculture and Processed Food Export Development Authority (APEDA) 

The APEDA offers a range of schemes offering subsidies to the tune of 50 percent of cost: Schemes 

for Research and Development; for setting up/strengthening laboratories; Assistance to exporters & 

producers for installing quality management, quality assurance and quality control system such as ISO 

series, HACCP, TQM etc. including consultancy, quality improvement and certification for these; 

Activities related to standardization and quality control; Upgradation and recognition of labs for 

export testing. Assistance to recognized associations of growers/exporters for organizing 

seminars/group activities including study tours within the country and abroad (organized by APEDA); 

Establishment of common infrastructure facilities (by APEDA) or any other Government or Public 

Sector agency like Airport Authority of India or Port Trust etc. Activity for development of packaging 

standards and design; publicity & promotion through preparation of product literature, publicity 

material, advertisement, etc (by APEDA); brand publicity through advertisement etc; export 

promotion (by APEDA) undertaking activities like buyer-seller meet; product promotion; exchange of 

delegations; participation in exhibitions / fairs and events. 

5.3.7 Ministry of Food Processing Industries (MOFPI) Schemes 

The MoFPI also offers a range of schemes. These include: 

i. Scheme for infrastructure Development: Setting up of Mega Food Parks, Cold Chain 

infrastructure, Modernization of Abattoirs (Grant in-aid-assistance of upto 60 percent is 

offered subject to a ceiling of Rs. 50 crore per park. 

ii. Scheme for technology upgradation, establishment and modernization of food processing 

Industries. 

iii. Scheme for up gradation of quality of street food 

iv. Scheme for quality assurance, codex standards, research & development and other 

promotional activities: Research & development, setting up/ Up Gradation of Quality 

Control/ Food Laboratory HACCP / ISO 14000 / ISO 22000 / GHP / GMP QUALITY / 

Safety Management. In addition, the MoFPI also supports conduct of EDPs related to food 

processing. 

5.3.8 Swarna Jayanti Shahari Rozgar Yojana (SJSRY) 

The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) subsumes the earlier three schemes for urban 

poverty alleviation, namely Nehru Rozgar Yojana (NRY), Urban Basic Services for the Poor (UBSP), 

and Prime Minister‟s Integrated Urban Poverty Eradication Program (PMIUPEP). The key objective 

of the Scheme is to provide gainful employment to the urban unemployed or underemployed through 

the setting up of self-employment ventures or provision of wage employment. 

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5-8


The target population under SJSRY is the urban poor – those living below the poverty line, as defined 

by the Planning Commission from time to time. The SJSRY has five major components, namely- 

Urban Self Employment Program (USEP): Assistance to individual urban poor beneficiaries for 

setting up gainful self-employment ventures (Loan & Subsidy); 

Technology/marketing/infrastructure/knowledge & other support provided to the urban poor in 

setting up their enterprises as well as marketing their products (Technology, Marketing & Other 

Support). The financing Pattern under USEP is as follows: Maximum allowable unit project cost - 

Rs.200,000; Maximum allowable subsidy - 25% of the Project Cost subject to a maximum of Rs. 

50,000; Beneficiary contribution -5% of the project cost as margin money; No Collateral is 

required. 

Urban Women Self-help Program (UWSP): This Component has two sub-components: 

Assistance to groups of urban poor women for setting up gainful self-employment ventures - 

UWSP (Loan & Subsidy). For setting up group enterprises, the UWSP group shall be entitled to a 

subsidy of Rs.300,000/- or 35% of the cost of project or Rs. 60,000/- per Member of the Group, 

whichever isless. The remaining amount will be mobilized as Bank Loan and Margin Money; 

Revolving Funds for Self-Help Groups (SHGs) / Thrift & Credit Societies (T&CSs) formed by 

the urban poor women -UWSP (Revolving Fund). Here SHG/T&CS entitled to a lumpsum grant 

of Rs. 25,000/- as Revolving Fund at the rate of Rs.2000/- maximum per member. 

Skill Training for Employment Promotion amongst Urban Poor (STEP-UP): The average 

unit cost allowed for training is to not exceed Rs.10,000/- per trainee, including material cost, 

trainers‟ fees, tool kit cost, other miscellaneous expenses to be incurred by the training institution 

and the monthly stipend, to be paid to the trainee. 

Apart from abovementioned schemes for the urban poor, there are other schemes for urban poor like 

TPDS (Food grain, sugar & kerosene given at subsidized rate to BPL families) and other programmes 

of the state governments. 

5.3.9 Prime Minister’s Employment Generation Programme (PMEGP) 

The Scheme is implemented by the Khadi and Village Industries Commission (KVIC), a statutory 

organization under the administrative control of the Ministry of MSME as the single nodal agency at 

the National level. At the State level, the Scheme is implemented through State KVIC Directorates, 

State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. 

Funding Pattern under the PMEGP which strives to generate employment opportunities is through 

setting up of new self-employment ventures are as follows: 

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Categories of beneficiaries 

Beneficiary’s 

contribution Rate of Subsidy 

under PMEGP 

(of project cost) (of project cost) 

Area (location of project/unit) Urban Rural 

General Category 10% 15% 25% 

OBC /Minorities/Women, Ex-servicemen, 

Physically 

handicapped, NER, Hill and 

Border areas etc. 5% 25% 35% 

The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh. The 

maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh and the 

balance amount of the total project cost will be provided by Banks as term loan 

5.4 Relevant State Government Schemes 

The state Government has introduced several schemes towards accelerating industrial and 

commercial growth and ameliorating poverty amongst the poor. A new Industrial Incentive Policy - 

2011 has been draft and under this proposed policy, there are provisions for granting incentives such 

as 100%; exemption from Stamp Duty and Registration Fees during the pre-production phase, Capital 

Subsidy for industrial units, inclusion of Entry- Tax in the re-imbursement of 80% of VAT, incentive 

also to existing units for Captive Power Generation / Diesel Generating sets and subsidy on nonconventional 

sources of energy production, re-imbursement of expenses incurred on project reports, 

technical know-how fees, Quality Certification, Electricity Duty etc. The incentive programmes and 

schemes in this context comprise pre and post production incentives and tax related incentives. 

5.4.1 Pre-Production Incentives 

Stamp Duty and Registration Fees 

‣ 100% exemption from Stamp Duty / Registration Fees being levied on Lease/ Sale / Transfer of 

Industrial Land/Shed as also those outside the jurisdiction of Industrial Area Development 

Authority for new Micro, Small, Medium (MSME) and large sector industries. This exemption 

from Stamp Duty and Registration Fees facility is granted only for the first time and is not 

applicable in subsequent stages of Lease / Sale / Transfer. This incentive is available to new units 

only. 

‣ Existing Industrial Units which have undertaken expansion or diversification thereby leading to 

an increase of 50% in their production capacity, are also be entitled for the above incentive, only 

to the extent of additional land required for Expansion. 

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5.4.2 The following incentives are be given to industrial units after commencement of 

Commercial Production under the New Industrial Incentive Policy. 

(i) Post-Production Incentives 

Under the present policy, incentives like Project Report incentive, incentives on land/shed, 

financial assistance for acquiring Technical Know-How, Capital Subsidy etc. will be available. 

The upper limit for such reimbursement will be Rs. 600 lakh (Six hundred lakh). This will be 

excluding the subsidy on Captive Power Generation / Diesel Generating set. 

(ii) Project Report Incentive 

Re-imbursement of 50% of the cost, subject to a maximum of Rs. two lakh, incurred in the project 

report preparation by industrial units. This is provided that, the project report is prepared by 

consultancy firms recognized by the industries department. If a unit gets Carbon Credit, 50% of 

the consultancy charges, subject to a maximum of Rs. 15 lakh will be reimbursed. 

(iii) Incentives on Land / Shed 

The following incentives / subsidy are available to all eligible units for investment on land/shed 

located in the Industrial Area Development Authority/ Export Promotion Industrial Park/ Food 

Park/ Agri Export Zone and also investment on Land/Shed allotted in Industrial Area/ Park 

developed on Government land or on private land: Micro / Small units: 50% with a ceiling of Rs. 

15 lakh; All large / Medium / Mega units: 25% with a ceiling of Rs.30 lakh 

(iv) Financial Assistance for Technical-Know-how 

If any entrepreneur acquires technical know-how from any recognized institution or to establish or 

to expand industry, he/she is reimbursed 30% (maximum Rs. 15.00 lakh) of the fees paid to the 

institution/organization for technical know-how. 

(v) Incentive / subsidy on investment on Plant & Machinery purchased for Captive Power 

Generation / DG set 

‣ 50% (fifty percent) of the amount spent on plant and machinery in the establishment of 

Captive Power Generation/Diesel Generating is reimbursed to industry. No ceiling has been 

fixed on this. Existing units would also be entitled for grants on the amount spent on plant and 

machinery in the establishment of Captive Power Generation/Diesel Generating sets. 

‣ This grant is also to be given to SPVs constituted for the purpose of captive power generation. 

‣ In the case of energy produced through non-conventional sources, 60% of the expenditure on 

plant and machinery will be payable as subsidy. No ceiling has been fixed for availing this 

incentive. This facility is available to existing units. 

(vi) Exemption from Monthly Minimum Charges/ Minimum Base Energy 

charge/Demand/Billing Demand 

‣ The existing operational units and new units are granted exemption from Monthly Minimum 

Charges/Minimum Base Energy Charge/ Demand/ Billing Demand or such charge being 

Final Report 

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levied in any other name in the tariff order of BERC with the effective date of the new 

Industrial Policy. This facility will be available for five years. 

(vii) Capital Subsidy 

‣ New MSME industrial units will be granted 20% capital subsidy on the amount spent on plant 

and machinery subject to a maximum of Rs. 75 lakh (seventy five lakh). 

‣ New large industrial units are granted 20% capital subsidy on the amount spent on plant and 

machinery subject to a maximum of Rs. 500 lakh (five hundred lakh). This facility will be 

available only after commercial production of the industrial unit. 

(viii) Incentive on Quality Certification 

‣ 75% of expenditure incurred in obtaining certificate of I.S.O. standard (or equivalent) from 

reputed national/international level organizations, would be reimbursed by the State 

Government to small industrial units to improve the quality of products. 

‣ Ceiling is fixed, on the fees payable in the case of registration of Mortgage documents, when 

this is being registered for the first time. 

5.4.3 Tax Related Incentives 

(i) Re-Imbursement of VAT and Entry-Tax 

‣ All new units are entitled to avail 80% reimbursement against the admitted VAT amount 

deposited in the account of the Government, for a period of ten years. The ceiling for this 

reimbursement will be 300% of the capital Invested. But new industrial units of Brewery and 

Distillery will be reimbursed a maximum of only 25% of the paid VAT, which will be 

applicable for 10 years and the ceiling for this reimbursement 300% of the capital invested. 

Entry-Tax 

‣ In the event of adjustment of Entry- Tax against the output tax, the amount paid as Entry Tax 

by new Industrial units after commencement of commercial production, will be included in 

the amount of 80% VAT for the purpose of reimbursement. This incentive will also be 

available to operational existing units. 

‣ The following incentive is provided to new industrial units after commencement of 

commercial production: 100% exemption in luxury tax for seven years; 100% Reimbursement 

of electricity duty for seven years; 100% exemption in land conversion charge 

‣ Re-Imbursement of VAT/Entry-Tax for units in operation 

Presently working industrial units will secure re-imbursement of 25% of the VAT/entry- tax 

deposited in the account of the Government. This re-imbursement will be valid for only five 

continuous years. In case of expansion by the working units, the said industrial units will also 

get re-imbursement benefit on VAT/Entry- tax on the expanded portion only. This incentive 

will be available to existing operational sugar mills provided this type of incentive is not 

available to them under the Sugarcane Incentive Policy. 

Central Sales-Tax 

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MSME industries have to pay only 1% CST on their item of production. 

There are a range of other special incentives such as subsidy for employment generation and 

implementation of the reservation policy of the Government. 

5.4.4 Scheme for Food Parks and Scheme for Integrated Development of the Food 

Processing Sector 

The State Government proposes to establish two food parks in the State, one in the Muzaffarpur – 

Vaishali region and the other in the Bhagalpur – Katihar region under the scheme for food parks. In 

addition, under the integrated development of the food processing sector scheme, all projects in the 

food/agro sector promoted either by Special Purpose Vehicles (SPVs) or by individual investors are 

eligible for assistance under the Scheme. Grant is offered up to 40% of the project cost, subject to a 

maximum of Rs. 10 Crore for an SPV in case of common cluster infrastructure and up to 35% of the 

project cost subject to a maximum of Rs. 5 Crore in the case of an individual investor. 

Assistance is provided towards establishment of physical infrastructure and common facilities ranging 

from by-product processing units (e.g. rice bran processing, corn oil, husk based power generation 

plants), procurement centres, storage, cold chain facilities, drainage, water supply, sewerage, power 

supply including captive power plant, effluent treatment, telecommunication lines, R&D centre, food 

testing laboratory, quality control & certification laboratories and training centre as well as marketing 

infrastructure. Soft components like entrepreneurship development training, quality and 

environmental certification, adoption of TQM including HACCP, ISO standards etc. are also 

supported. 

5.5 Summary and Conclusion 

In essence, typically, micro and small enterprise stakeholders in the manufacturing as well as service 

sector, and operating in the “formal” (DIC registered) sector avail of all State Government incentives 

that are channelled and monitored through the DIC at each district. The critical limitation is with 

regard to availing assistance under Central Government programmes. As a matter of fact, the only 

Central Government programmes and schemes twinned with enterprises in the region comprise: 

PMEGP programmes 

SJSRY programmes 

CGTMSE (to a limited extent – perhaps to a dozen odd manufacturing and service sector 

firms) 

EDPs and ESDPs conducted by the MSME-DI; and to a limited extent, “soft” interventions 

under the MSE-CDP in the litchi cluster of Muzaffarpur 

EDPs conducted by IED-Patna and sponsored by the Ministry of Food Processing Industries 

The limitation may be particularly ascribed to co-ordination failures between enterprises and their 

chambers as well as support system institutions. It is possible to re-dress the circumstance through the 

Final Report 

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skill and capacity building of a cadre of entrepreneurship trainers and Cluster Development Agents as 

to play the role of facilitators. 

Table 5.2 : Performance of programmes, schemes, incentive packages and related action plan 

Important 

Programmes, 

Present 

Circumstance 

Schemes and 

Incentives 

Central Government 

NMCP Scheme Assistance not 

availed 

MSE-CDP; IID Assistance availed to 

a very limited extent; 

Assistance availed 

under the MSE-CDP 

alone to a limited 

extent for soft 

interventions by 

Litchi cluster units 

CLCSS Assistance not 

availed 

Action Plan for 

Likely Impact 

Twinning with 

the CBP 

Skill and capacity Assist existing manufacturing and 

building of a service sector enterprises in the 

cadre of city in different value-chains (like 

entrepreneurship lac and jewelry chains) to develop 

trainers and competitiveness on different fronts 

Cluster 

such as design and quality even in 

Development the short-to-medium term 

Agents to play the perspective 

role of facilitators 

-do- 

Encourage manufacturing, service 

sector and trading enterprises in 

different value-chains to develop 

competitiveness by means of 

filling-in-gaps in the value-chain 

activities and jointly installing 

capital intensive equipment as 

common facilities; re-dress gaps in 

existing (BIADA) industrial 

infrastructure and establish new 

industrial estates in future even in 

the short-to-medium term 

perspective 

-do- 

Encourage enterprise start-ups as 

well as growth across different 

value-chains through investment 

subsidy for individual enterprises 

even in the short-to-medium term 

perspective 

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Credit Guarantee Assistance availed to 

Scheme 

a limited extent 

perhaps by only a 

dozen odd units in 

the city 

Scheme for Micro Assistance not 

Finance 

availed 

Programme 

MSME-MDA Assistance not 

availed 

SIDBI linkages Assistance availed to 

(IID, Microfinance, a limited extent only 

MCGF schemes) for CGTMSE 

assistance 

NSIC (Govt. Assistance not 

purchase 

availed 

programme, buyerseller 

meets) 

Ministry of Assistance not 

Commerce and availed 

Industry 

(IIUS,ASIDE 

schemes) 

-do- 

Encourage institutional credit links 

for manufacturing and service 

sector enterprises encouraging 

start-up as well as growth even in 

the short-to-medium term 

perspective 

-do- 

Facilitate micro-credit linkages to 

artisan and HH value-chain 

stakeholders through MFIs and 

NGOs (e.g., in lac bangle, jewelry, 

garment manufacturing and 

furniture segment) even in the 

short-to-medium term perspective 

-do- 

Facilitate direct export market 

linkages for enterprises (e.g., 

litchi value chain stakeholders) 

even in the short-to-medium term 

perspective 

-do- 

Facilitate links for infrastructure 

financing as well as for credit., 

thereby contributing to 

encouraging enterprise start-ups 

and growth in the short-to-medium 

term perspective 

-do- 

Facilitate government and public 

sector (and defense) demand 

related market linkages for 

different value-chain enterprises 

(e.g., litchi, furniture, and in the 

longer term for even fly-ash based 

products) 

-do- Additional option to 

establish/strengthen dedicated and 

integrated industrial infrastructure 

with necessary common facilities 

on PPP basis encouraging 

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NHB Assistance not 

availed 

APEDA (quality Assistance not 

development, availed 

infrastructure, 

marketing) 

Ministry of Food Assistance largely 

Processing not availed; EDP 

Industries programme 

(infrastructure, assistance for a 

parks, quality couple of EDPs a 

upgrading, EDPs) year availed through 

IED-Patna 

SJSRY Assistance availed, 

but below targets 

PMEGP Assistance availed, 

but below targets 

enterprise start-up and growth in 

the longer term perspective 

-do- Facilitate quality upgrading, 

infrastructure and marketing for 

horticultural produce in the longer 


-do- Facilitate quality upgrading, 

infrastructure and marketing and 

perhaps even a refrigeration 

facility in Patna airport in the long 

term perspective as city 

manufacturing and service sector 

evolves to facilitate floriculture 

and even horticulture exports (as 

has been established at the Pune 

airport by APEDA to facilitate 

floriculture exports); secure MDA 

assistance for participation in fairs 

and exports even in the short and 

medium term perspective 

-do- Help establish dedicated and 

integrated food parks with 

common facilities in the longer 

term perspective; local institutions 

to implement result and start-up‟s 

oriented EDPs with meaningful 

budgetary outlay of about Rs, 2 

Lakh per EDP even in the short-tomedium 


-do- 

Scope to increase impact and 

achieve targets which are presently 

hardly 50 per cent realised 

-do- 

Scope to increase impact and 

achieve targets which are presently 

hardly 50 per cent realised in terms 

of number of start-ups 

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State Government 

Range of 

incentives 

Assistance availed by 

registered enterprises 

in the formal sector 

-do- - 

**** 

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6 VALUE CHAIN ANALYSIS AND BUSINESS 

LINKAGES 


Evidently, the litchi and the lac bangle value-chains have considerable potential. The litchi valuechain 

has a comparative advantage in terms of a critical factor condition, namely availability of 

abundant raw material as a resource base, while the lac bangle value-chain has an advantage in terms 

of traditionally highly skilled base of manpower. The total turnover of litchi sold as a commodity or 

processed product from any one region in the country or state is the highest through/from Muzaffarpur 

city and provides employment to thousands of the urban folk in the city and in the adjoining rural 

area/district.These value-chains have amongst the greatest potential in terms of encouraging valueadding 

start-ups/pro-poor impact in the city. The extent of value-addition to litchi cropped in the 

hinterland of Muzaffarpur and Darbhanga is marginal. The litchi fruit is often transported as raw 

material for processing in other states and regions like Mumbai and Bangalore. There are a few units 

like D.K. Agri Co. and Lichika international who pursue value-added processing activities and also 

smaller firms in the region who primarily-process litchi to pulp, produce juice etc. DIC and BIADA 

records also indicate a few registered units in litchi processing. There is great scope for evolving 

greater competitive advantage in these employment intensive value-chains. 

The following sections analyze these value-chains in terms of related factor and demand conditions as 

well as other parameters that contribute to competitiveness as well as other product of the relevant 

business environment. 

6.2 Litchi Value-Chain: 

The scope of increasing value accruals to litchi stakeholders in 

the region is evidently high as some of the existing processors 

in the region procure litchi from growers @ Rs. 25 per kg and, 

in turn, sell the same after processing @ Rs. 70 per 750 ml of 

litchi juice, comprising 30 percent pulp and 70 percent water 

and essence. At least 3-4 new jobs are created by every 

processing unit. There are already about 3,000 persons within 

the urban and adjoining area in litchi related activities. 

Training for stakeholders has been undertaken to a limited 

extent by the MSME-Dl in terms of pre and post harvest 

management including on the optimal use of fertilizers. 

However, this has benefited hardly 40 stakeholders. Other 

Consultation of Team ICT with Litchi 

value chain entrepreneurs 

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cluster value-chain development interventions are yet to take off. The circumstance and potential of 

the litchi value-chain may be studied in terms of factor and demand conditions and other parameters 

of the city business environment. 

Table 6.1: Factor and demand conditions, other parameters of the business environment 

Parameters 

Scope for intervention 

Raw Material: Litchi‟s in the region have a comparative Scope to encourage private 

advantage in terms of area (area under litchi in Muzaffarpur 

District was 7229 ha in 2008-09) and production (Production in 

year 2008-09 was 54322 MT in Muzaffarpur District 7 ) In fact, 

this unique horticultural produce of Bihar accounts for 75% or 

more of the production of this fruit in India. Hence, there is no 

major constraint on the supply front. However, there are 

investment in cold stores as well as 

establish such stores on the basis 

of PPPs. In fact, conversion of 

litchi into pulp and storage of the 

same is expected to save upto 25 

percent in post-harvest losses. 

limitations in terms of refrigerated storage facilities to reduce 

post-harvest losses. 

Industrial Infrastructure and Power: Some activities in litchi There is scope to twin needs of 

processing including refrigerated storage facilities are critically BIADA as well as related 

dependent on competitive and reliable sources of electricity. 

There is need for upgrading the BIADA industrial estate in the 

enterprises in such estates with the 

IID scheme of the Govt. of India to 

region wherein, only part of the estate has continuous power facilitate better power 

connectivity as to enable them to offer continuous supply of 

electricity to enterprises. 

connectivity, develop roadways, 

ETPs, reduce water logging, etc. 

Skilled manpower: While there is a large base of traditionally Leveraging inputs from related 

skilled entrepreneurs and manpower in the litchi farming public and private service 

segment, gaps are evident in terms of pre-and post harvest providers. 

management skills. While the MSME-DI at Muzaffarpur has 

facilitated training of 40 odd stakeholders on these fronts, many 

more stakeholders are required to be trained. Training is critical 

in areas such as the management of nutrients, plucking 

techniques etc. 

Also, there is evidently need for training on pulp processing, 

packaging, as well as on value-added processing such as juices, 

jams and squashes etc. Further, inputs on food quality norms 

7 Agriculture Profile of the State 

Final Report 

6-2


and HACCP, as well as on export management are necessary. 

Training on basic management skills as well as pre-and postharvest 

technologies is also important. 

Credit: The Central Bank of India serves as the lead bank of 

the district and despite the presence of a range of commercial 

banks in the city, typical micro-units in the segment experience 

critical limitations vis-à-vis access to credit. There is need for 

linkages with appropriate financing instruments and schemes. 

Related and supporting enterprises and institutions: The 

Litchi Research Centre provides inputs on pre and postharvesting 

technologies. However, there are limitations in terms 

of training institutions and courses related to value-added 

processing. There is also a gap in terms of testing facilities. 

Limitations are also there in terms of pulp processing (which is 

the primary processing activity prior to value-added processing) 

and packaging. In summary, there is a severe limitation in terms 

of pulp making facilities, testing, training, pulp processing, 

packaging and appropriate cold storage facilities. Cluster firms 

are supported by institutions like the MSME-DI for 

entrepreneurship as well as for cluster development 

interventions. 

Demand Conditions: Demand conditions are strong and 

growing, and the State Govt‟s Industries and Food Processing 

Department has also prioritized litchi-processing for 

development and value-added processing. 

Facilitate linkages with the Mutual 

Credit Guarantee Fund Scheme 

(MCGFS) typically supported by 

the SIDBI, as well as the 

CGTMSE through training 

interventions as well as Technical 

Assistance (TA). 

There is need to establish pulp 

processing, training, testing and 

packaging facilities as a common 

facility on PPP basis. There is 

scope to deploy a mix of training 

and TA interventions on this front. 

There is scope to leverage upon 

MSE-CDP scheme of the GoI in 

this regard. 

There is scope to link the valueadded 

products to large food-brand 

in the country through TA 

intervention. 

6.3 Lac Bangle Value-Chain 

Muzaffarpur has a large segment of artisans involved in the 

manufacture of lac bangles. The city and adjacent regions 

comprise around 500 HHs and micro-sized units 

manufacturing lac bangles clustered in areas like Islampur. 

Some of the micro-sized units in the cluster have turnovers 

even in the range of about Rs. 30 lakh per annum. 

Consultation of Team ICT with Lac value 

chain entrepreneurs 

Final Report 

6-3


Performance in terms of turnover has shrunk due to rise in prices of input like aluminum metal by 

over 40-50 percent in the last couple of years. The critical equipment used by units in the sector 

comprises, iron sheets, wooden rollers and tools costing hardly about Rs. 50,000 per “bhatti”. 

However, such a small enterprise provides employment directly to 3 persons and an artisan owning 3 

“bhatis” to about 10 persons. Hence, the segment is relatively labour intensive. In fact, 25-35 percent 

of “cost of production” is ascribed to piece-rate wages paid to artisans by unit holders. 

Typical Equipment deployed in a Lac unit 

Analysis in terms of value chain specific circumstance highlights the following: 


Parameters 


Raw material and credit: Lac is There is need for apt credit instruments and 

conveniently sourced by enterprises from 

Jharkhand. There are constraints in terms of 

access to raw material accessed from regions 

like Kolkata and Kanpur. Inputs such as 

aluminum metal and hardening chemical are 

sourced from these locations and rising raw 

material prices have been eating into margins 

of artisans. 

institutions such as the MCGFS and the 

CGTMSE as well as artisan credit card scheme to 

be twinned with operations of cluster firms. 

Presently these artisans have limited links with 

the formal banking system, there is also scope to 

include MFIs and NGOs, and SIDBI (scheme for 

Micro Finance) to assist units PMEGP in the 

region. 

Skill: While artisans have traditional skills, 

there are no support institutions for upgrading 

There is need for training interventions in design 

and finishing (color spraying to lend shine). 

skills. 

Related and supporting enterprises and Scope to leverage on PPP scheme such as the 

institutions: The firms in the segment suffer MSE-CDP/NMCP scheme to implement a 

from want of any testing and design facilities 

in the region. 

common facility for testing and design for 

stakeholders. 

Final Report 

6-4


Demand conditions: While firms in the A mix of training and TA interventions as 

region have a traditional base of loyal indicated will be appropriate. 

customers from the North Bihar region, 

progressively, they are experiencing 

competition from other locations like Jaipur 

with better design and color spraying finish. 

Impact of interventions: 

The industry is highly labour intensive. The output of lac bangles from the region is about Rs. 50 

crore per annum and the livelihood of many artisans is at stake. Already, many artisans in villages 

around Muzaffarpur have virtually ceased operations posing grave livelihood concerns. The 

segment, however, has considerable potential. 

Supporting enterprises and infrastructure: 

There is no training, design or testing facility in the region and firms have no links with the Lac 

Research Centre at Ranchi. 

Cluster firms have established linkages with wholesalers and knowledge of market and design 

trends in Bihar. Evidently, designs as well as lac content/color changes as per seasons such as 

harvesting and wedding seasons. 

6.4 Cloth (textile and garment) Value-Chain 

Muzaffarpur has historical recognition as a centre for cloth trade in North Bihar. It is among the top 5 

or 6 cloth trading locations in India with over 600 cloth merchants. In fact, a couple of merchants 

have turnovers in excess of Rs.100 crore. However, value-addition is limited despite a large base of 

micro-sized garment manufacturing units in the city. The output in the city in terms of cotton & 

polyester fabric is believed to be in the range of over Rs. 2000 crore per annum. However, there is 

limited value-addition in terms of garment manufacture in the region. There is considerable scope for 

value-addition. In fact, there are a number of garment manufacturing units registered with the DIC 

and many of these have turnovers upwards of Rs. 50 lakh per annum. 

Consultation of Team ICT with cloth value chain entrepreneurs 

Final Report 

6-5


Some such units even cater to defense requirements in Bihar and produce track suits with more 

advanced equipment like flat-lock, over such equipment (from Zuki/Brother). The activity is labour 

intensive as investment in equipment of Rs. 3 lakh merit about 9 persons to be involved in 

manufacture. 

Most units in the region use traditional industrial sewing machines. Cloth trade in Suttapatti in 

Muzaffarpur alone is believed to be Rs. 2 crore and more a day. 

There are a number of micro-sized training institutions like Sri Ram Janki Silayi Paridhan Kendra 

providing training to at present 2500 persons (in total) every year, but only on basic traditional sewing 

machines. The turnover of the value-chain could be about Rs. 5000 crore per annum while valueaddition 

negligible. Livelihood of over 10,000 persons in the city is believed to be linked to this 

segment of cloth & fabric trade as well as garment manufacturing. 

Typical Equipment deployed in a Garment unit 


Parameters 


Raw Material: Cotton as well as polyester There is scope to introduce garment manufacture 

and synthetic fabric is typically sourced and even power-loom weaving activity into the 

from other locations like Ichalkaranji, region through dedicated EDP initiatives. 

Bhiwandi, and Salem. Also the trading 

community has established links with 

suppliers. However, despite convenient raw 

material access, there is limited valueaddition. 

Credit: Despite the presence of a range of There is need for linkages with appropriate 

commercial banks in the city, typical microunits 

in the segment confront critical The Mutual Credit Guarantee Fund Scheme 

financing instruments and schemes. These include: 

limitations vis-à-vis access to credit, and (MCGFS) typically supported by the SIDBI, 

linkages with the PMEGP scheme. CGTMSE etc; direct more PMEGPs towards this 

segment. 

Final Report 

6-6


Parameters 

Related and supporting enterprises & 

institutions: There is a critical gap in terms 

of training, testing and design facilities in 

the city. 


Scope to implement a common facility on PPP 

basis involving training, design and basic testing 

lab facilities. Schemes of the Ministry of Textile as 

well as the Ministry of MSME may be leveraged 

upon through training and TA. 

6.5 Summary and a SWOT analysis 

While there are a range of important value-chains related to litchi and other food and horticultural 

produce, lac bangle, cloth, jewelry, and furniture involving stakeholders pursuing activities in terms 

of manufacturing/processing, and various trade and commercial services such as transportation, 

wholesaling and retailing, the value-chains with substantial comparative advantage and potential 

beyond local demand and prioritised by the Task Force for immediate short-to-medium term 

interventions include the litchi, lac bangle and cloth related value chains. A SWOT of these value 

chains are summarily presented in the table following and also necessary “hard” interventions 

involving capital investment outlay in a PPP mode is indicated with envisaged impact thereof: 

Table 6.4 : SWOT 8 

Strengths 

Weakness 

Litchi 

-Experienced entrepreneurs in related 

Litchi 

-Limitation in terms of testing, training in valueadded 

manufacturing and service and trading activities. 

product processing, pulp processing, 

There are about 30 MSE processors / packaging and appropriate cold storage facilities. 

manufacturers in the city and adjacent regions, 

and a range of related raw material traders, 

-Presently, about 90 per cent of the harvested 

litchi fruit is transported as a mere commodity 

finished product retailers/vendors and (also) for processing and value-addition in 

wholesalers, and transporters and cold store 

service providers associated with this industry in 

the region. During season, it is believed that over 

3,000 individuals of the city workforce are 

locations like Mumbai and Bangalore. 

-Presently, post harvest losses are about 25 per 

cent due to inadequate facilities for convert litchi 

into pulp and storage of the same. 

involved with litchi related activities. 

-Cold stores are critically dependent on 

-Large raw material resource base is the basis for competitive and reliable sources of electricity. 

8 Based on interactions with MSME-DI officials, DIC officials, Chambers of Commerce, ULB, Litchi Research Centre and 

manufacturer entrepreneurs, cold store service providers and traders and retailers in litchi, lac bangle and textiles and garments 

value-chains. 

Final Report 

6-7


comparative advantage (production of over 

54,322 MT per annum which is the highest in the 

region; advantage of proximity to other cropping 

regions as Bihar produces over 75 per cent of 

output in the country and is a world leader in 

global trade). 

-Wholesalers and traders as well as some 

processors have established regional, National 

and global market connectivity/linkages for 

commodities as well as value-added products; 

good rail and road connectivity and established 

transport service providing enterprises. 

-Presence of dedicated support institutions such 

as the Litchi Research Centre and the PUSA 

institute providing training in pre and post 

harvest management and undertaking research; 

MSME-DI facilitating training in other areas. 

-Access to support infrastructure for 

manufacturing and service enterprises by way of 

BIADA estates for many service sector units like 

cold stores as well as for processing units. 

Most cold stores in the region per-force depend 

on expensive diesel oil to operate their facilities 

for most of the day. Even much of the available 

sites in the BIADA estates in the region have 

poor power connectivity and infrastructure. 

-Absence of a dedicated truck terminal for 

transporters. 

-Limited access to processors and related service 

enterprises for institutional credit facilities. 

Lac Bangle 

-Some HH units are closing down due to rising 

costs of raw material and inputs such as 

aluminium and hardening chemicals sourced 

from Kolkata and Kanpur by over 40 per cent the 

last couple of years; as well as competition from 

better designed and finished products from 

Jaipur. 

-Scant upgrading on design and finishing 

activities. 

-Minimal access to institutional credit for artisans 

and training facilities. 

Lac Bangle 

-There are about 500 HH and micro-sized units 

employing about 3-4 persons each involved in 

artisan and retailing activity. Other than artisans 

and retailers, there are raw material traders and 

transporters as well as finished product 

wholesalers involved in value-chain activities. In 

effect, about 2000 persons of the city workforce 

is employed in the segment; annual turnover of 

enterprises involved in lac activity in the region is 

about Rs. 50 crore. 

-Traditionally skilled artisan base is the basis of 

comparative advantage; there is also convenient 

access to some core raw material such as lac from 

Final Report 

6-8


neighbouring Jharkhand. 

-Retailers and wholesalers have market 

connectivity across Bihar and there is historical 

recognition of and preference for lac bangles 

from the region from customers and consumers 

across the State. 

Cloth(textiles and garments) 

-There are over 600 cloth (fabric) traders and 

merchants and related transport service providers, 

as well as about 3000 HH and micro-sized 

tailoring units and a dozen garment 

manufacturing units in the region. In fact, it is 

estimated that the livelihood of over 10,000 

persons in the city is linked to cloth and fabric 

wholesale, retail and to tailoring services and 

garment manufacturing. 

-Comparative advantage exists in terms of 

Muzaffarpur being amongst the top 6 trading 

hubs for critical material cloth in India with a 

turnover of over Rs. 5,000 crores per annum. 

-Retailers and wholesalers have strong market 

connectivity across North Bihar. 


-Training institutions have only traditional 

industrial stitching machines and are not in a 

position to train on expensive modern stitching 

equipment and accessories. 

-Absence of supporting enterprises in terms of 

modern embroidery facilities or design facilities; 

nor testing and finishing facilities. 

-Limited access to institutional credit facilities for 

service sector tailoring units as well as garment 

manufacturers. 

Opportunities 

Litchi 

-The commodity is sold at the rate of about Rs. 

25 per kg. while value added products like juice 

produced from I kg. litchi pulp is sold at about 

Rs. 210 for 3 lts. The output of the value chain 

from Muzaffarpur alone is therefore at least about 

Rs. 135 crore as hardly 10 per cent litchi fruits 

are presently processed in the region due to 

limitations in terms of pulp processing facilities. 

Over 80 per cent of litchi is marketed outside the 

state. 

Threats 

Litchi 

-PPP based assistance and intervention is a 

critical need in the light of poor resource 

capabilities by local MSE stakeholders and more 

importantly, to demonstrate benefits of related 

private sector investment projects in pulp 

processing, juice making and service sector 

activities like cold stores. 

-Absence of interventions in a PPP mode will 

leave Muzaffarpur a mere sourcing and trading 

Final Report 

6-9


-Establishment of a common facility on PPP 

basis for pulp processing (20 TPD), cold storage, 

training, testing and packaging at a project cost of 

Rs. 900 lakh. Even a micro-enterprise processing 

0.5-1 TPD of litchi fruit provides direct and 

indirect (in services, loading/unloading and 

transportation, vending) employment to about 7-8 

persons. Therefore, the common facility will 

offer potential to increase capacity/establish 

about 40 value-added processing units producing 

juice, jelly etc. generating additional employment 

to at least 300 persons. 

-The project will demonstrate benefits of PPP as 

well as scope for future private sector investment 

in related activities – pulp processing, cold stores, 

juice and jelly processing units etc. 

-Value-addition to litchi in the region could 

increase from a mere 10 per cent to 20 per cent 

even in the short term. 

-A range of other horticultural produce such as 

mango and banana may also be primarily 

processed in such facilities to optimise capacity 

utilisation between different seasons. 

centre for litchi sans a vibrant employmentgenerating 

and value-adding processing sector. 

-In addition to ensuring power connectivity to 

BIADA estates, alternate and viable stand-alone 

energy generation technologies related to biomass 

energy will have to be introduced to 

enhance viability of service sector cold store 

enterprises who are a critical part of the litchi 

value-chain. Inadequate efforts on this front will 

leave a critical segment of the value-chain 

uncompetitive. 

-There is need to effectively twin EDPs with 

value-chain activities such as processing and cold 

stores, without which the desired impact in terms 

of value-addition, enterprise start-ups, growth and 

gainful employment generation will not be 

realised. 

Lac Bangle 

-Sans interventions on the credit and training 

front, as well as on necessary common facilities, 

the very livelihood of much of 2000 members of 

the urban workforce may be at threat even in the 

medium-term context. 

Lac Bangle 

-Lac bangles from Jaipur with better design and 

finish are sold at higher rates of about 15 per cent 

per set; firms in Muzaffarpur and also their 

artisans could also increase their gross valueaccruals 

to this extent from the present average of 

barely Rs. 20 per set through 

urban poor is likely to be high as over 700 

artisans may be trained every year by the 

envisaged training facility; also as much as 20 per 

cent of sale price of bangles is accrued as wages 

to artisans. appropriate training, design/finish 

Final Report 

6-10


interventions. 

-Scope for establishing a common facility on the 

basis of PPP for training, design and testing at a 

project cost of about Rs. 100 lakh. 

-Impact of intervention on the 

-The project will also demonstrate scope for 

future private sector investment in the bangle 

manufacture and related service sector activities 

like training and design. 


-Scope to establish a common facility on the 

basis of PPP basis for training, design and 

embroidery/finish in garmenting at a project cost 

of about Rs. 800 lakh. This will encourage 

transition of the city from a mere fabric trading 

centre to a quality garment producing hub. 

-A single garment unit with investment of about 

Rs. 5 lakh on basic equipment could provide 

direct and indirect employment to over 10 

persons. The envisaged common facility could 

help train over 500 skilled workers every year 

and provide embroidery/finish services 

strengthening existing enterprises and 

encouraging at least 50 enterprise start-ups. 


-Sans PPP assistance and interventions for the 

envisaged CFC, stakeholders will continue to 

remain at the lower end of the value-chain. 

-There is need to effectively twin EDPs with 

value-chain activities with service sector 

activities such as tailoring, and garment 

manufacturing without which the desired impact 

in terms of value-addition, enterprise start-ups, 

growth and gainful employment generation will 

not be realised. 

**** 

Final Report 

6-11

Final Report 

6-12 


7 SKILL AND ENTREPRENEUR DEVELOPMENT 

PROGRAMMES 


Despite a rich agri-resources base in terms of paddy and pulses (as a second crop) horticulture 

produce like litchi and mangoes and a couple of industrial estates established by BIADA, skill 

development and training programmes to generate employment opportunities may be viewed in four 

contexts: (1) training needs of public and private service providers presently offering related services 

(2) training needs of potential entrepreneurs, that is, for enterprise start-up (3) training needs of 

existing entrepreneurs and/or city manpower,(also) for enhancing the performance and sustained 

competitiveness of existing firms in different value-chain activities. The specific value-chains with 

comparative advantage in the city include the litchi and lac bangle value-chains. Advantages in these 

two value-chains are by virtue of raw material resource base and manpower skill, respectively. In 

addition, the “cloth” or textile and garments value-chain also has scope to be evolved (4) training 

needs of vendors. 

7.2 Training needs of public and private service providers presently offering services 

There are a range of related service providers ranging from Central Government to State Government 

institutions as well as private service providers in the city. However, there are various factors that 

have limited their performance. The circumstance may be redressed by capacity building and training 

interventions that could help them pursue their roles vis-à-vis entrepreneurship, cluster development 

and skill upgrading more effectively. 

7.2.1 Skill development and training institutions in the region: The present circumstance 

The private and public service providers in the region providing entrepreneurship and skill 

development related training services for industry and manpower in the city may be viewed in term of 

institutions such as: the MSME-DI in Muzaffarpur; IED, Patna, with a project office in Muzaffarpur; 

the DIC in Muzaffarpur; one Government polytechnic each in Muzaffarpur for men and women 

respectively; 6 private Industrial Training Institutes; as well as (partly) the ULB at Muzaffarpur. The 

ULB at Muzaffarpur is involved to a limited extent in capacity building of SHGs under the SJSRY. 

These institutions (but for the private ITIs) facilitate or provide training on entrepreneurship and/or 

skill development subsidized under different Central & State Government schemes. The contribution 

on this front as well as capabilities of NGOs as well as local Chambers of Commerce and industry 

associations in this context in Muzaffarpur is marginal. 

Final Report 

7-1


7.2.2 Profile of key training service providers 

MSME-DI, Muzaffarpur: This institution is the field office of the Office of the DC(MSME), 

New Delhi, and Ministry of MSME. The Annual Report (2011-12) of the MSME-DI, 

Muzaffarpur very succinctly summarizes the scenario in the CBP region encompassing the 

Muzaffarpur cluster: “The industrial scenario of North Bihar is characterized by incipient sickness 

of micro, small and medium enterprises, erratic power supply to the MSME units and closure of 

these units in more and more numbers...” Nevertheless, the report also indicates the tremendous 

opportunity for regional stakeholders: “…there is wide scope for food processing industries 

because the area is rich in agricultural, horticultural produce” The MSME-DI provides a range of 

services for industry. Some of the more critical of these services may be viewed in terms of: 

preparing and facilitating preparation of project reports and business plans for start-ups; conduct 

of EDPs (also in food processing). In all, in 2010-11, the institute had organized 13 EDPs and 75 

ESDPs and 74 Motivational Campaigns (also) across the cities of Muzaffarpur, Bettiah, Sitamarhi 

and Darbhanga. The institution had also organized 3 business skill development programmes in 

association with the Government Polytechnic for women in Muzaffarpur and also in Darbhanga. 

It had also organized MDPs on Tally, export documentation and on ISO 9001-14000. The 

institutions‟ operation is largely or almost completely subsidized by the Central Government. 

Institute of Entrepreneurship Development (IED-Patna): The IED, Patna, is the apex institute 

of the State Government for providing entrepreneurship development and related skill 

development services in the State. The Institution is governed by a broad committee involving 

representatives from the Women Development Corporation, Department of Rural Development 

and the Department of Industry etc., The activities of this institution typically includes : conduct 

of general EDPs, conduct of EDPs under food processing related special component scheme of 

the Ministry of Food Processing Industries, GoI; conduct of technology management programmes 

sponsored by the DST, Ministry of Science & Technology, GoI; Agri-clinic and Agri-links centre 

training under National Institute of Agricultural Extension Management (MANAGE), Hyderabad 

(also involving in organizing of MDPs towards technology management etc.).The institution has 

a project office at Muzaffarpur. 

District Industries Centre: The District Industries Centre (DIC) at Muzaffarpur is the field 

office of the industries department of the State Government. The DIC is involved in several 

critical activities related to entrepreneurship development. This may be viewed in terms of 

playing a key role in the Task Force Committee which is involved in selecting candidates for 

assistance under the PMEGP. Also, this institution is involved in scrutinizing applications seeking 

assistance and/or subsidy from the Government. The latter may be viewed in terms of investment 

subsidy of about 20 per cent and/or VAT refund @ about 75 per cent for a period of 5 years after 

Final Report 

7-2


start-up under different promotional schemes of the State Government. Progressively, this 

institution is also pioneering cluster development interventions in the region. 

Urban Local Body (ULB): The ULB is also involved in some entrepreneur development 

activities. The ULB at Muzaffarpur also facilitates training of network of households and micro 

enterprises under the Swarna Jayanti Sahari Swarojgar Yojna. 

Government Polytechnic/s and Industrial Training Institutes (ITIs): A Government 

polytechnic for men as well as one for women exists in Muzaffarpur. However, their inputs are 

hardly related to critical agro/food value-chains in the region. For instance, the government 

polytechnic at Muzaffarpur churns out 300 students every year but they are in courses like civil, 

electrical, mechanical, electronics, and computer science and engineering area. Passing out 

students typically join large companies and organizations such as the Indian Railways and the 

State Electricity Board. Such institutions offer limited inputs on project report preparation, 

conduct of market survey etc., and evidently a couple of students take up an entrepreneurial 

career. The courses offered by such polytechnics are typically 3 year diploma courses. The 

Ministry of HRD has supported the Government men‟s polytechnic in Muzaffarpur under its 

Community Development through Polytechnics scheme. Under this scheme about Rs. 6 lakh 

worth of specialized equipments have been procured by the institution and Rs. 8 Lakh of recurring 

expenditures is also met with. The objective of this course is to partly promote self-employment 

capacities and the institution has set a target of about 900 trainees per annum. There are also 

several private ITIs in the target cities who (on an average) churn out 50-60 students per year. 

These institutions offer a certificate programme on different trades such as welding, fitter, 

electrician, typing and stenography, draftsmanship. These are normally certificate courses of 

typically 1 year duration. The Litchi Research Institute facilitates training on pre and post 

harvesting technologies. 

Unlike in many other locations in India, the Chamber of Commerce as well as various small 

industry associations in the city are not involved in facilitating entrepreneurship development, 

incubation, or capacity building training to members or potential entrepreneurs. 

7.2.3 Constraints in the roles of existing skill development and training service providers 

and their training needs 

In the context of initiatives of the DIC, under the PMEGP, this institution has rarely ever achieved 

beyond 50 per cent of the envisaged target in terms of number of enterprise start-ups (133 as the target 

for the year 2010-11).Therefore, advanced(trainers) training in the area of entrepreneurship 

development may be appropriate as a capacity building initiative. More importantly, the critical 

training need of industry extension officers of this institute may be particularly viewed in terms of 

catalyzing and undertaking cluster development interventions. Their involvement on the front of 

professionally assisting existing SMEs in the area is, at best, limited. As a matter of fact, in many 

Final Report 

7-3


states in India officers of such institutions have been already trained to serve as Cluster Development 

Executives/Agents. 

In the context of the EDPs/ESDPs organized by both the MSME-DI as well as the IED-Patna, there 

are several limitations: Typically, EDPs/ESDPs conducted in the region are not focused on the 

resources potential to develop an employment generating manufacturing sector. Training is largely 

focused on electrical appliances repair, computer hardware servicing and such. In fact, these 

institutions had hardly offered a couple of programmes for the food processing sector in Muzaffarpur 

in 2010-11. In the case of EDP and ESDP programmes organized by the MSME-DI, they suffer from 

severe budgetary limitations (Rs. 20,000 to Rs. 30.000 per EDP) and EDPs are hardly of two weeks 

duration. 

Except for programmes sponsored by the Ministry of FPI, where the (Rs. 2 lakh) EDP provides for 

final disbursement of programmes subsidy component linked to achieving a success (start-up) rate of 

at least 40 per cent per EDP, there is no success-rate specified; and EDPs organized by institutions in 

the region (have witnessed average success rates of hardly 20 per cent per EDP). Further, there is 

little or no involvement of either industry associations or commercial banks other than the 

involvement of lead bank in the selection process of candidates for training. Both MSME-DI as well 

as IED-Patna (as well as NGO) functionaries need to be groomed through appropriate trainers training 

as well as cluster development training. 

Neither polytechnics nor ITIs in the region offer courses related to critical agro-food processing valuechains 

related to the city as well as its hinterland in which they have comparative advantages in. Also, 

their contribution towards entrepreneurship and enterprise start-ups is extremely limited. Faculty 

development in the field of entrepreneurship development is an option to be considered. Nevertheless, 

as indicated, the Government polytechnic is significantly contributing towards skill upgrading of 

manpower in the region. 

In this regard, the critical stages, features and methodology of an ideal Entrepreneurship Programme 

and approach need to be imbibed by related service providers in the region. This may be viewed in 

terms of: 

Appropriate identification and selection of potential entrepreneurs in terms of potential winners 

and serious candidates who prima-facie display entrepreneurial tendency and skills. Such 

candidates typically comprise individual members of SHGs, perhaps vendors, passing-out 

students from technical or vocational institutions, wards of existing entrepreneurs and small 

business loan applicants of FIs as well as PMEGP candidates. 

Appropriate EDP training inputs with adequate focus of inputs on practical and bankable business 

plan preparation and successful enterprise management. Inputs by way of business opportunity 

guidance also need to be offered. 

Final Report 

7-4


Where necessary, synergising facilities of existing firms, schemes, technical institutions as to 

provide technical training (and incubation facilities) for start-ups. 

Synergization with ideal financing instruments, and identifying appropriate intermediaries such as 

MFIs and FIs, for financing start-ups. 

Establishment of market linkages between larger firms (including firms in prioritized cluster 

value-chains) and start-ups where feasible; and linkages with necessary service providers. 

Provide, and/or evolve means for providing adequate mentoring and counseling support, 

particularly in the start-up and teething stage of enterprises 

In this context, there is a need for training functionaries of local NGOs, the MSME-DI, DIC as well as 

IED, Patna representatives, as well as Polytechnics and ITIs on the same .The focus of much of such 

training needs to be in conduct of litchi and food processing EDPs (in addition to other EDPs). 

7.3 Training needs of Potential Entrepreneurs, (that is, for enterprise start-up) 

There is need for an ideally structured and result oriented EDP module that will be offered to potential 

entrepreneurs. The module will encompass a time frame of 6 weeks: 

Inputs will be offered in terms of appropriate business opportunity identification; and facilitate 

technical training (for about 2 weeks) 

The training module will also offer training inputs with adequate focus of input on practical and 

bankable business plan preparation and successful management. 

Understand appropriate financing schemes to facilitate start-up. 

Understand options with regard to marketing tie-ups (also with large firms); and, the vis-à-vis 

different service providers who assist start-up as well as growth of enterprises (including the 

NSIC, MSME-DI, Export Promotion Councils etc) 

7.4 Training needs of existing entrepreneurs 

Training needs in the context of existing entrepreneurs and/or city manpower may be considered in 

terms of: 

Litchi Value-Chain: Litchi processing has 

considerable potential in Muzaffarpur city and 

the regions adjoining it. However, presently only 

a small proportion of the resource base is locally 

processed and value-added by HH and microsized 

private enterprise in the region, and much 

of the litchi is merely transported as a bulk 

commodity for value-addition (and employment 

generation) in other locations in India. Litchies 

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are processed into value-added products like juice and thousands of the urban populace in 

Muzaffarpur are involved in related value-chain activities ranging from raw material collection, 

primary processing and conversion into pulp, further processing into products like jams, squashes 

etc. Although the production of horticulture crops like mangoes and bananas in the district of 

Muzaffarpur is much higher than litchis, this unique horticulture produce of Bihar accounts for 

nearly 75 % of the total production of this fruit in India. As on date, litchi growers do not get 

adequate and remunerative prices as most of the produce is being sent to other states as a 

commodity than a value-added product. There are important livelihood concerns. Consultations 

highlight critical constraints in activities along the value-chain. These include: the use of 

traditional technology in some activities; inadequate private sector investment in processing of 

litchi into pulp; and inadequate facilities in terms of related and supporting enterprises and 

institutions in terms of training and skill upgrading of manpower on value-added product making 

equipment, testing and aseptic packaging for targeting premium markets and for export. 

The field-office of MSME-DI, Muzaffarpur of the nodal Central Government body for MSMEs 9 

has conceived a project (with a project cost of about Rs. 10 crore) for implementation of an 

integrated common facility under the PPP based Micro & Small Enterprises Cluster Development 

Programme (MSE-CDP) of the Central Government. The project envisages a refrigerated storage 

facility for raw material to reduce “post-harvest losses”, modern pulp making facilities, testing and 

training and aseptic packaging facility. This project could be eligible for assistance by way of 

grant-in-aid of between 80 to 90 per cent under the MSE-CDP. Importantly, investment in the 

processing into pulp activity will ensure the availability of primary processed raw material for 

local value-addition in HH and MSE juice making units, also encouraging enterprise start-ups and 

employment generation. Also dedicated testing and aseptic packaging could help cluster valuechain 

firms penetrate premium and export markets in considerably more volumes. There is 

considerable scope for building upon the preliminary interventions by the MSME-DI, Muzaffarpur, 

in establishing technology upgrading and market developing common facilities on a PPP mode for 

firms in the litchi value-chain. Training for stakeholders has been facilited to a limited extent by 

the MSME-DI in terms of pre and post-harvest management including the optional use of 

fertilizers. However, this has been to a limited extent of hardly 40 stakeholders. Industry 

stakeholders are also of the view that training is critically required in terms of export management, 

and HACCP norms. Basically, there is considerable scope for investment in PPP mode in primary 

processing for value-addition to local resources, joint technology upgrading, enhancing national 

9 Namely, the DC-MSME, GoI. 

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and global value-chain linkages and market connectivity, and facilitating large number of 

employment generating MSE start-ups in the litchi cluster value-chain. 

Lac bangle value-chain: Some of the target cities like Muzaffarpur and Sitamarhi have a 

considerable segment of poor households (HHs) involved in lac bangle manufacturing. 

Muzaffarpur city and nearby regions, for example, has perhaps around 500 HHs and micro-sized 

units manufacturing lac bangles clustered in areas 

like Islampur. 10 Evidently, there is need for propoor 

credit linkages and skill upgrading in the lac 

bangle value-chain with considerable scope for 

direct pro-poor impact. As a matter of fact, 

thousands of artisans involved in value-chain 

activities in this segment are dispersed across 

numerous villages around Muzaffarpur in the Consultative interaction of Team ICT with 

district. Of concern, is the trend in the recent past Lac Bangle value-chain artisans. 

of many lac manufacturing HH units closing 

down posing grave livelihood concerns vis-à-vis affected families of artisans. 

The constraints faced by HH units may be ascribed to rising costs of raw material and inputs 

(aluminum metal, hardening chemical) used in the manufacturing process as well competition from 

better designed lac bangles from clusters in other Indian States like Rajasthan. Critical raw material 

and inputs in bangle manufacturing are sourced from Kolkata and Kanpur and rising costs of inputs 

has affected profit margins of the local artisans leaving little cash surplus for procurement. In this 

context, there is evidently scope for interventions by way of appropriate credit linkages for 

necessary working capital through: the artisan credit card scheme of the Development 

Commissioner – Handicrafts (DC-H) of the Ministry of Textiles, New Delhi; inducing microfinance 

(including Islamic Banking) institutions to work with the segment; twinning Prime 

Minister's Employment Generation Programme (PMEGP) targets with enterprise start-ups and 

expansion in the segment, and Mutual Credit Guarantee Fund (MCGF) Scheme based (larger) 

group finance for artisan networks. In addition, there could be need for inducing skill upgrading of 

artisans particularly in the area of design development through a mix of training interventions as 

well as common facilities. As entire urban families in locations like Isalampur are involved in lac 

10 Many of these units manufacture lac bangles and sell them through own or other small HH family operated 

“exclusive” retail outlets. The product has great demand, particularly, during the marriage season as well as the 

festival times of Teej etc. in the region as well as the State when large volumes of these bangles are procured by 

women-folk. 

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bangle manufacturing, thousands of the urban populace in Muzaffarpur city and adjacent regions 

may be benefited by appropriate cluster value-chain development interventions. 

Cloth Value-Chain: Muzaffarpur has for a long period of time remained a centre for cloth trade in 

North Bihar. However, value addition is limited though there is also a large number of micro-sized 

garment making units in the city. There is also a gap in terms of skilled manpower in the region 

with hardly any institution offering basic operators‟ courses. In this context, there is evidently 

scope for both start-ups in the segment and therefore entrepreneurship training, well as training for 

manpower in related fields. Further, in the light of absence of adequate skill training facilities or 

even value-adding facilities such as embroidery or washing and finishing facilities for ready-made 

garments in the region, there is scope to develop a dedicated common facility for fabric as well as 

ready-made garment manufacturing supported by dedicated supporting facilities like process 

course as well as skill training, embroidery, washing and finishing facilities. In fact, PPP options of 

the Central Government support such initiatives. 

7.5 Summary and a SWOT analysis 

Skill development and training programmes to generate employment opportunities may be viewed in 

terms of: 

Training needs of public and private service providers presently (or potentially) offering 

related service. Such existing and potential service providers include the MSME-DI, IED- 

Patna, Chambers of Commerce, (BIADA and other) industries associations, NGOs and 

technical (vocational and industrial) training and research institutions (like the Litchi 

Research Centre and the Lac Research Centre, Ranchi). Their training needs include advanced 

and practical EDP trainer‟s training and cluster development agent‟s training. 

Training needs of potential entrepreneurs (including vendors and even SHGs evolved by the 

ULB) in terms of EDP training which may be offered by the trained trainer‟s – to the extent 

feasible through twinning the CBP with EDPs offered by the MSME-DI, IED-Patna and 

NGOs. Skill development training need be appropriately twinned with these EDPs. 

Training needs of (as well as TA for) existing enterprises in terms of operating 

technologically advanced equipment, practical business management, linkage potential with 

different programmes and schemes of the Government related to capital investment subsidies, 

access to credit, PPP options for common facilities and industrial infrastructure, market 

development etc. Some other specific requirements are spelt out under the opportunities 

section in the table following. 

A SWOT vis-à-vis skill and entrepreneur training programmes is presented in table 7.4 below. 

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Table 7.1 : SWOT vis-à-vis skill and entrepreneur development training programmes 

Strengths 

-Presence of a range of institutions like MSME- 

DI, (branch office of) IED-Patna, NGOs, 

Chambers of Commerce, technical training and 

research institutions involved in providing skill 

and entrepreneur training; Institutions like 

MSME-DI and IED-Patna have EDP trainers 

with allocated funds to conduct a variety of EDP 

and vocational skill upgrading activities. 

-Presence of Government and private 

polytechnics and ITIs who conduct accredited 

vocational training courses. Over 900 trainees are 

groomed every year by these institutions. Smaller 

NGOs train a total of over 3,000 persons on 

tailoring services and basic garment 

manufacturing every year. 

-Presence of several product value chains like lac 

and cloth with regional, and like litchi with 

National and even global potential; others like 

furniture, jewelry also have a reasonable base and 

fly-ash also has potential. Skill upgrading of 

manpower and existing and potential 

entrepreneur training in these segments has 

considerable potential; institutions like MSME- 

DI have trained cluster development agents 

involved in training and providing TA vis-à-vis 

“soft” interventions (related to technical training, 

design development, quality management 

systems, market development etc.) 

Opportunities 

-Scope to twin the EDP and skill development 

programmes of MSME-DI and IED-Patna into 

the CBP (some additional leveraging funds upto a 

maximum of Rs. 40,000 per EDP may be 

considered under the SPUR-DFID budget) for 8 

Weakness 

-Success rates in EDP programmes is poor at 

hardly 10-20 per cent for every 20 odd candidates 

trained per programme due to limitations in 

candidate selection in terms of not involving 

concerned bankers and chambers of 

commerce/associations in this stage, programme 

input delivery, and also funding (in the case of 

MSME-DI programmes). 

-Limited interventions in terms of TA and 

training to assist existing enterprises, but for a 

few training programmes organised by MSME- 

DI. 

Threats 

-Inadequate co-ordination by the envisaged EDC 

with institutions like MSME-DI and IED-Patna 

could affect CBP implementation prospects in the 

field of entrepreneurship and skill development 

training. 

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start-up oriented EDPs per year training 160-200 

candidates per year and ensuring at least 50 

enterprise start-ups. 

-Scope to ensure greater involvement of technical 

institutions including the Government 

polytechnic and ITIs in the conduct of EDPs. 

-In addition to generic training requirements 

delineated earlier, specific skill upgrading 

requirements of litchi entrepreneurs/manpower 

may be viewed in terms of export management, 

HACCP and quality, packaging, testing and 

business incubation related training. These may 

be facilitated through an envisaged EDC; Skill 

upgrading requirements of lac bangle 

entrepreneurs/artisans comprise design, colour 

spraying and on testing. These may also be 

facilitated through the envisaged EDC; -Skill 

upgrading requirements of cloth value chain 

stakeholders are required in terms of testing and 

design. 

-Dedicated initiatives are required to dovetail 

institutions like the NID, CFTRI, NSIC, SIDBI, 

DST, DC-Handicraft and MoFPI into the training 

agenda. CBP implementation will suffer sans 

such twinning. 

7.6 Summary 

Training need of vendors may be viewed in terms of EDP training as to facilitate their graduation into 

entrepreneurship. Training requirements in this context may be viewed in terms of requirements for 

potential entrepreneur start-ups delineated earlier. 

Table 7.2: Important value-chains and stakeholder training needs 

S.No. Existing value-chain 

Critical training needs/areas 

entrepreneurs/manpower 

1 

Litchi Processing, 

Muzaffarpur 

E.g. pre and post-harvest management including 

pest management practices; operating advanced 

equipment and technology in crushing, juice 

making, aseptic packaging and testing; export 

management; HACCP; basic management; inputs on 

assistance provided by different institutions and 

under diverse schemes 

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2. 

3. 

4. 

Lac Bangle, 

Training in color spraying to lend shine to bangles; 

Muzaffarpur 

basic management inputs; assistance provided by 

different institutions and under diverse schemes. 

Cloth, 

Garment design, stitching on basic as well as well as 

Muzaffarpur 

advanced stitching machines; embroidery; powerloom 

weaving; basic management; inputs on an 

assistance provided by different institutions and 

under different schemes. 

Potential entrepreneurs/vendors 

Start-ups/vendors; SHGs evolved by Entrepreneurship Development Training. 

ULB 

Table 7.3: Training areas for existing entrepreneurs/manpower, potential entrepreneurs and 

vendors and related service providers. 

S.No. 

Training area for existing 

Some related Service Providers 

entrepreneurs/manpower 

Design (including use of related software NID, Ahmedabad (some related private 

1 equipment)- for lac bangle and cloth valuechains 

design institutions in other locations. 

Application of and range of upgraded Machinery and equipments suppliers/ 

equipment and technology 

manufacturers; CFTRI, Mysore (Food 

2. 

Processing – Litchi value-chains); Litchi 

Research Institute, Muzaffarpur and AU, 

Pusa (for litchi processing) 

3. 

Linkages with Government procurement NSIC, Patna/New Delhi 

programmes; tender marketing 

4. Basic Business management MSME-DI, Muzaffarpur; Team ICT 

Exposure to the range of financing SIDBI, Patna, Lead Bank Branch in 

5. 

instruments and institutions for MSEs (e.g.- different districts, NSIC Patna; Team ICT 

CGTMSE, NEF, MUN and raw material 

assistance programme of the NSIC) 

Exposure to the range of financing, SIDBISIDBI, Patna/Lucknow; Team ICT 

6. instruments and institutions (for HH and 

cottage entrepreneurs (e.g. – MCGFS) 

7. 

Export Management- particularly for litchi MSME-DI, Muzaffarpur; APEDA, 

stakeholders 

Patna/New Delhi; NSIC, Patna/New Delhi 

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8. 

Exposure to the range of PPP schemes and 

projects for industrial infrastructure and 

common facilities 

MSME-DI, Muzaffarpur; Ministry of FPI, 

New Delhi; DC-Handicrafts, New Delhi; 

Ministry of Commerce and Industry, New 

Delhi; DST. Ministry of Science & 

Technology, New Delhi; Team ICT 

Establishment of business incubators Department of Science and Technology 

(TBI programme) New Delhi; Ministry of 

9. 

Food Processing Industries, New Delhi 

(Food Processing Industry); MSME-DI, 

Muzaffarpur (incubator programme under 

NMCC) 

Potential entrepreneurs and vendors 

1. Entrepreneurship Development IED, Patna; 

Training 

MSME-DI, Muzaffarpur; local NGOs; Technical 

Institutions; Chamber of Commerce and industry 

associations; ULB- upon being groomed through 

trainer‟s training programmes 

Table 7.4: Training areas for local public and private service providers and facilitating service 

providers 

S.No. Training Area Some related Service Providers 

1 

2. 

3. 

Faculty development programme for faculty 

of polytechnic/ITIs 

Trainers Training Programme in 

entrepreneurship development (e.g., food 

processing) for NGOs, functionaries of 

MSME-DI; IED- Patna; ULB; Chamber of 

Commerce and industry association; technical 

institutions. 

Cluster Development Agent training for 

NGOs, MSME-DI, IED-Patna, ULB; 

Chambers of Commerce and industry 

associations. 

EDI, Ahmedabad; NIMSME, Hyderabad, 

Team ICT 

Team ICT; NISME, Hyderabad; EDI, 

Ahmedabad; IIE, Guwahati; NIESBUD, 

Delhi 

Team ICT; Kerala Bureau for Industrial 

Promotion, Trivandrum ;NIMSME – 

Hyderabad; EDI-Ahmedabad 

Annexure 7.1 and 7.2 elaborates on trainers training as well as on cluster development training 

***** 

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8 BUSINESS APPROVAL SYSTEM 

8.1 Background 

India as a nation ranks rather poorly amongst global economies from the point of view of business 

regulations that enhance business activity and those that constrain it.. Though the regulatory 

environment for doing business in India is supposed to have considerably improved over the past five 

years - 2006 to 2011 – the nation is still rated business unfriendly, ranking 134 out of 183 global 

economies in the ease of doing business. 

According to the study conducted by the International Finance Corporation, the average time taken in 

India 11 for: 

(i) Starting a Business is 29 days 

(ii) Getting the required construction permits is 195 days and 

(iii) Registering the property is 44 days 

8.2 CBP Objective 

Bihar State Government has been making serious endeavors in the past few years to improve the 

investment climate in the State and with this in view; it has created a State Investment Promotion 

Board. Although this Board approved close to 400 Project proposals upto October 2010, only 45 has 

started working by end of Financial Year 2010-11. One of the major hurdles that has been in existence 

in starting any business anywhere in our country is the approval system,. The City Business Plan is 

thus expected to recommend a streamlined process for business approval 

in respect of both 

manufacturing enterprises as also service enterprises and facilitate the establishment of „single 

window approval system‟ at Municipal/District level for: 

i. reducing transaction costs involved in business start up 

ii. 

iii. 

reducing the lengthy procedures involved in seeking approval and thus saving on 

costs and time and in addition, 

Exploring avenues to ensure speedy implementation of the approved Projects. 

These are discussed in greater detail hereunder. 

11 Source: Doing Business in India, 2011-IFC 

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City Business Plan for MuzaffarpurMunicipal Corporation 

8.3 The Existing Process 

In order to achieve the above, a detailed assessment of the business start up and approval system 

followed in District/Municipal level institutions in Bihar was carried out. Discussions were held with 

the owners of some industrial units as also with Municipal Authorities on the land registration and 

building construction approval procedures as also other clearance procedures. It emerged that getting 

clearance from the Pollution Control Board was considered the most cumbersome procedure. 

Any person wanting to establish an industrial unit or food processing unit or a commercial or 

trading enterprise has to follow the laid down procedures before commencing the business. Such 

procedures vary depending upon whether the unit is being set up on land leased or purchased: 

i. within the designated industrial area under the jurisdiction of BIADA or 

ii. within the municipal limits or 

iii. outside the municipal area but within the district 

These are discussed in greater detail hereunder. 

8.4 BIADA 

Allotment of land for an industrial plot for establishing an enterprise is invariably done within the 

designated industrial area(s) under the jurisdiction of Bihar Industrial Area Development Authority 

(BIADA) 

BIADA was set up under a law enacted in 1974 by the State Government of Bihar whereby it was 

made responsible for planning, development, maintenance of industrial areas and amenities thereto 

and allotment of land, execution of lease, cancellation of such allotment and lease, realization of fees, 

rent charges and matters connected thereto. In 1982, BIADA was vested with the authority/powers to 

take back a plot after cancellation of allotment as per laid down procedure. 

After the creation of BIADA, all those persons or entrepreneurs, who are interested in setting up an 

enterprise have to submit a detailed Project Report on the industry proposed to be established 

together with information about the land on which it is to be set up, plant and machinery which are 

proposed to be acquired, etc, to BIADA. 

The architectural and structural design of the industrial unit to be set up is prepared based on the 

BIADA guidelines, which stipulates that the whole plot area is not to be utilized for the building. 

8.4.1 Establishing Industries within BIADA 

Land allotment/Transfer of Land: 

For allotment of an industrial plot/shed in the industrial area under BIADA, an application form 

(present cost Rs.100) is to be submitted with required particulars either to the development officer or 

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area-in-charge of BIADA, the general manager of DIC or the CEO of the Udyog Mitra. This 

application should include the following details;- 

a. Personal profile 

b. Proposed industrial unit details including 

the product to be produced 

the ownership details 

the financial institutions/Banks from whom the seed capital/working capital loans are 

proposed to be obtained, etc. 

The application form is to be submitted along with certain specific information and documents and 

payments which are detailed in the application form (Annexure 8.1) and which are summarized here 

under:- 

Information Details 

o Details of item to be produced 

o Land required for production. (in sq. ft.) 

o Land required for storage and processing of raw material.(in sq. ft.) 

o Land required for storage and processing of finished product (in sq. ft.) 

o Details of drainage of water to be disposed 

o Quantity of total water required. 

o Total Electricity required. 

o Source of procurement of raw materials. 

o Market profile 

o Details of procurement of plant and machinery 

o N.O.C. from pollution control board 

o Details of finance for the Project. 

o Details of number of Skilled/unskilled labour requirements. 

o Working Capital requirement. 

Documents 

o Project report (two copies) prepared by an accredited/approved consultant 

o Proposed memorandum form 12╬ (Two copies) 

o Personal profile/ bio-data of entrepreneur 

12 ╬ An entrepreneur‟s memorandum as per the amended format under MSMED Act, 2006 is to be filed with the DIC by a 

micro, small or medium enterprise 

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o Layout plan duly certified by consultant registered with Govt. of Bihar, for medium 

scale industries 

o Acceptance in case of medium scale industries. 

o Registration and Memorandum of Articles of Association from the Registrar of 

Companies in case of limited companies. 

o Copy of the Partnership Deed registered by the Registrar of Companies, duly attested 

by a gazetted officer- in case of a Private company 

o Letters of recommendation from two reputed persons. 

o Two photographs of applicant duly attested by a gazetted officer/MP/MLA 

Payments 

o Application fee of Rs. 500/- in the form of a Demand Draft for small scale industrial 

units (SSI) 

o Application and processing fee of Rs. 1000/- in the form of a Demand draft for 

medium & large industries, Note: Both the above are non-refundable/non transferable 

o Land allotment money in the form of a Demand draft @Rs. 2000/- per acre of land 

applied for. (This will be returned without interest within 30 days, in case of nonallotment). 

The Proposal is reviewed by BIADA officials and thereafter, the entrepreneur is called for personal 

discussions. Allotment of the industrial plot is done to the entrepreneur after BIADA approves the 

project and the architectural and civil design of the building to be created on the plot of land. 

Allotment is effected only after 20% of the land price is deposited by the businessman. The average 

time taken for approval is estimated between 10-15 days. 

The letter of allotment contains the terms and conditions regarding payments etc. before the 

possession of land/shed are handed over. With the required formality completed, land is handed over 

with the stipulation to start the project or industry by a time frame. Subsequently with things falling in 

place a final lease agreement between the entrepreneur and the respondent BIADA ranging from 33 

years to 99 years is executed. The lease agreement permits mortgaging the land in favour of financial 

institutions if there is financing or borrowing involved. 

BIADA industrial areas do not fall under the purview of the Municipality as per clause 362 of 

Chapters XL of the Bihar Municipal Act, 2007 and hence, no municipal clearances are required. 

8.5 Establishing Industries within Municipal Limits 

In order to establish an industrial unit within the municipal area a no objection certificate (NOC) from 

the municipal corporation/council would be required to ensure that the use of the designated plot of 

land is in accordance with the city‟s master plan. However since Muzaffarpur city does not have an 

approved master plan the first step involved in the process of seeking approvals is to obtain 

registration from the DIC. 

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A project proposal for establishing an industrial unit within municipal limits would require the 

following approvals/ clearances 

i. Registration with District Industries Centre (DIC) 

ii. Building plan for the approval from the municipality 

iii. Obtain a trade license from the municipality 

iv. Registration under the Labour act from the Labour and Employment Department 

v. Registration under the Factory act from the Chief Factory Inspector 

vi. Approval from Pollution Control Board for non-Agro based industries and /or polluting 

industries 

vii. Certificate from Department of Food Processing in case of production of Fruit & Vegetable 

based products 

viii. Certificate from State Drug Controller for production of Drugs/Pharmaceuticals & cosmetics 

ix. Registration with Sales Tax Department 

x. Power Sanction & connection from the Electricity Department 

xi. Weight and Measurement division 

Clearances from all the above Departments or Government Agencies are required in order for the 

industrial undertaking to start commercial production and the process of seeking such clearances and 

time taken are more often than not, major factors of discouragement to the budding entrepreneur. 

An analysis of the clearances required from each of the Departments listed above, is detailed 

below:- 

8.5.1 District Industries Centre (DIC) 

In order to get a registration from DIC for the proposed industrial unit, a list of documents are 

required to be submitted. This list is at Annexure 8.2. The DIC ascertains as to whether the land, on 

which the manufacturing/service unit is to be established, is owned or leased by the 

industrialist/entrepreneur. In the case of leased land, it verifies the authenticity/ownership of the land 

before granting registration for establishing the industry. The industrialist can apply for various 

infrastructural facilities like electricity, water, etc. only after DIC registration is done and pollution 

control board approval is received. 

The role of the DIC does not end with initial registration. It follows it up with an inspection as to 

whether the entrepreneur followed all the procedures and obtained all the requisite 

approvals/registrations as also ascertain whether the industry has commenced production or not before 

granting the unit a permanent registration-EM-II. The entrepreneur has to submit three copies of a 

memorandum (Annexure 8.3) for micro and small enterprises and four copies for medium 

enterprises, as the case, may be, under subsection 1 of section 8 of the Micro, Small & Medium 

Enterprises Development (MSMED) Act, 2006 with the DIC for obtaining the permanent registration 

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The DIC also facilitates the entrepreneur to avail of bank loan and the subsidies and incentives as 

applicable through various government schemes for setting up agro-based industries. A process of 

application of MSM Enterprises is shown in below chart: 

8.5.2 Municipality Specific Approvals 

Building Plan Approval: 

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The entrepreneur has to have his Building plan approved by the Municipality after obtaining the 

DIC registration. The Building design can be prepared by either a registered civil engineer or 

registered architect of the Municipal Council, but construction work can be undertaken only after 

the Building plan is approved by a registered architect empanelled with the Municipality. There 

are sufficient number of certified architects/engineers in the Municipality. A copy of the 

approved building plan is to be submitted to the Municipal Council, whose officials ensure that 

the construction work is as per the approved Building plan and does not have any discrepancies 

or variation. 

Issuance of Trade license by Municipality: 

An application is to be submitted to the Municipality 

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for obtaining a Trade License, after 

registration with the District Industries Centre (DIC). Industrial plots registered under BIADA 

are however, not required to take any Trade license from the Municipality. Municipality issues a 

Trade license levying some nominal fees and the average time taken for issuance of Trade license 

is between 20-30 days. There is, however, no upper time limit within which the Trade license has 

to be issued. 

8.5.3 Approvals/Clearances from Other Government Departments 

Labour and Employment department: 

This Department gives its approval to run the factory based on the list of total number of 

employees that the unit intends to employ along with type of work that they would be 

undertaking. This process reportedly takes anywhere from 2 days up to a week. It may be noted 

that registration with the Labour Department is mandatory for any type of non-residential 

activity, within 90 days of establishment of the Unit. 

Registration under the Factories Act 

An application for registration and grant or renewal of license has to be filled in triplicate. 

(Annexure 8.4) Chief Factory Inspector issues the certificate to the entrepreneur after ensuring 

that the following documents have been submitted and that they are in order: 

i. Certified architectural design and civil design/building plan of the industrial unit 

ii. 

iii. 

iv. 

Land registration certificate 

Registration certificate from Labour Department 

Health and Safety certificate of labourers working in the Unit 

v. Clearance certificate for Fire Fighting arrangement 

vi. 

vii. 

viii. 

ix. 

Details of security guards posted at industrial site 

Copy of Memorandum of Association 

Copy of Articles of Association 

Copy of Board of Directors Resolution 

x. Copy of Memorandum of entrepreneur


xi. Certificate from Pollution Control Board. 

The certificate issued by Chief Factory Inspector is normally valid for one year and the time taken 

for processing and issuance of the same is not less than a week. There is no specified upper time 

limit within which certificate has to be issued. 

Weight and Measurement Department 

All the basic documents along with proof of identity of the applicant are submitted to the 

department. A certificate is normally issued within a week or so, after the Inspector from the 

department visits the site and satisfies himself. 

State Drug Controller 

A detailed report about the industry, nature of its products, the units registration certificate from 

BIADA and DIC, certificates from Weight and Measure department, Labour department, etc are 

given. The Drug controller‟s department reviews the documents submitted before issuing the 

certificate. This certificate is required only for production of drugs/ pharmaceuticals and 

cosmetics and is issued within 2-3 days. 

Food Supply and Food Processing Department 

In this department all certificates as required to be submitted to Drug controller, are to be 

submitted and a certificate is issued within 2-3 days. This certificate is required for production of 

fruit and vegetable based products. 

NOC from Pollution Control Board 

An application has to be submitted in duplicate to the Member Secretary, Bihar State Pollution 

Control Board, Patna along with the requisite fees, for obtaining Consent to Establish (NOC) U/S- 

25&26 of the Water (Prevention & control of pollution) Act,1974 and U/S 21 of the Air 

(Prevention & control of pollution) Act, 1981. The following documents are required to be 

submitted for pollution clearance: 

i. Detailed Project Report 

ii. Location map indicating project location 

iii. Land registration papers 

iv. Basic details of industrial unit being set up 

Environmental clearance certificate is given by the Pollution Control Board after the officials visit 

and carry out an inspection of the site and are satisfied with all the arrangements. Here again, time 

taken varies from 10-30 days, but there is no definite upper time limit for issuing the clearance. 

Firefighting Certificate 

Firefighting department generally issues its clearance between 7-15 days after ensuring that the 

Unit has been provided with all recommended Firefighting measures. 

Trade Mark and ISI Mark 

Final Report 

8-8


It is not mandatory for entrepreneur to take these registration certificates, but should it be felt 

necessary or should it be required to be taken, time taken has to be built in. 

Boiler Machine Inspection department 

In case the industrialist wishes to establish a Rice mill, approval has to be taken from the Boiler 

Machine Inspection department. Time indicated for inspection and issuance of certificate is stated 

to be between 7-10 days, but there is no upper time limit. 

Electricity Connection 

An application has to be filed with the Bihar State Electricity Board (BSEB) stating the 

requirement of power 

Commercial Tax Department 

An application has to be filed for registration under the State Value Added Tax (VAT) rules. 

Table 8.1: Time Frame for Approval 

S.No. Clearances/Approvals Time Frame as 

per Act. 

1 Allotment of industrial plot under BIADA 15 Days 

2 Building Plan approval from municipality if plot is 

within municipal limit 

7 Days 

3 Trade license from municipality 30 Days 

4 License from Labour and Employment Department 7 Days 

5 License from Chief Factory inspector under 

Factories act 

More than 7 

days 

6 Certificate from State Drug Controller 3 Days 

7 Certificate from Food Supply and Food Processing 

Department 

3 Days 

8 NOC from Pollution Control Board 30 Days 

9 Firefighting Certificate 15 Days 

10 Electricity Connection 23 Days 

11 NOC from Panchayat in case of establishing 

enterprise outside municipality or BIADA 

7 Days 

12 Land conversion permission 45 Days 

13 Water Connection 23 Days 

14 Permission for Loan Equity 21 Days 

15 Land Acquisition outside industrial area 90 Days 

16 Government land acquisition by District Magistrate 15 Days 

17 Government Land acquisition by Land Revenue 30 Days 

Actual Time 

Taken 

Final Report 

8-9


Officer 

18 Government Land acquisition by Government 45 Days 

Table 8.1 indicates the average time taken for various approvals for units located within BIADA, 

within Municipal limits and outside Municipal limits. Information relating to actual time taken, will 

be filled after completion of the perception survey - Annexure 8.5. 

8.6 Establishing Industries Outside Municipal Limits 

The establishment of an industry outside the municipal limits similarly requires all the above steps to 

be followed except for the requirement to obtain a trade license from the municipality. However the 

industrialist would have to obtain a NOC from the Panchayat by submitting the Land possession 

certificate and attested copies of the sale deed/Khatihaan 

8.7 Bihar Single Window Clearance Act, 2006 

Realizing the need for speeding up the process of giving clearances and issuing certificates required 

for setting up industrial undertakings in the State, Government of Bihar has in 2006 enacted the „Bihar 

Single Window Clearance Act‟, 2006. A copy of this Act is placed as Annexure 8.6. 

This Act, which extends to the whole of State of Bihar, was enacted with the following major 

objectives in mind: 

i. Speedy processing of clearances and certificates required for setting up an industrial 

undertaking 

ii. Promotion of all –round development of the State including industrial development 

and 

iii. To provide for investor friendly environment in the State of Bihar 

The enactment of such a law was to bring about a paradigm shift in the ways and means of doing 

business in the State by providing single point clearances to promoters and thereby ensuring early 

commercial production from such units. 

Under this law, the State Government has the powers to constitute by notification, a District Single 

Window Clearance Committee for each district, under the chairmanship of the District Collector and 

having 5 other members, for such term as may be specified in the notification 

The District Committee shall exercise the following powers and perform following functions namely: 

(i) to meet at such times and places as the Chairman of the Committee may decide and 

shall transact business as per the procedure as may be prescribed. 

(ii) to receive applications for all clearances for setting up industrial units with proposed 

investment up to the amount notified under section 19. 

Final Report 

8-10


(iii) to review and monitor the processing of applications by the competent authorities and 

to forward the orders of the competent authorities to the applicant. 

(iv) to inform the applicant of the date on which the application was received by the 

competent authority and the date on which such application may be deemed to have 

been approved in the case of deemed approval. 

(v) to forward cases with remarks and relevant documents to the State committee/State 

Board, in case of non-existence of State Committee for decision under section 16. 

(vi) the member of the district Committee shall attend the meeting convened under clause 

(i) personally and in case he is unable to attend the meeting, he may depute a senior 

level officer with a written authorization to take appropriate decision in the meeting. 

(vii) such other powers and functions as may be prescribed. 

8.7.1 Project Clearance Committee (PCC) 

The Project Clearance Committee (PCC) or Committee for clearance of industrial proposals under 

single window concept at district level comprises of: 

District Magistrate 

- Chairman 

General Manager, DIC 

-Member Secretary 

Executive Engineer, Electricity Board 

-Member 

Representative, State Finance Corporation -Member 

Chairman, District Industries Union 

-Member 

Divisional Pollution control board representative - Member 

8.8 Business Approval System in Some Other Indian States 

A single window clearance system for various industrial projects has been introduced by some of the 

state governments in India to avoid delay in processing applications and thus attract more investors. 

Although Single Window Clearance System has been in existence in some states like Kerala since 

2000, it has not been successful due to various reasons – one amongst which being the lack of 

transparency. Necessary amendments to the existing system have to be brought to make this single 

window clearance system more transparent and thus effective. A description of the system existing in 

Andhra Pradesh and Tamil Nadu is given below: 

Andhra Pradesh: 

A common application Form-I-Part-A for Establishment of an industrial unit in Andhra Pradesh is to 

be filed with the nodal agency for the purpose of: 

arranging site clearance 

statutory approvals from gram panchayat, municipality, urban development authority, 

inspector of factories 

alienation/acquisition of land 

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8-11


power feasibility and power connection from DISCOM 

sanction of water supply from local bodies or the HMWS&SB 

ground water 

Adequate number of copies (as per the check slip) of the four page application form is to be filed as 

part of the single window clearance system. (Annexure 8.7) 

No validated information relating to the success or otherwise of the scheme was readily available. 

Tamil Nadu 

The „Single Window „documentation and clearance centre for obtaining all pre- project state level 

approvals and infrastructure support in the state of Tamil Nadu , came into effect in January 2002 . 

All investment proposals are normally cleared in 30 days on an average under Tamil Nadu‟s single 

window clearance facility. An indicative list of approvals for setting up businesses in Tamil Nadu is 

given below. 

List of approvals and clearance required Departments to be consulted 

Incorporation of the company 

Registrar of companies 

Registration , IEM, industrial licenses DIC 

Allotment of land 

State department of industries/ State industrial 

development corporation/ Infrastructure corporation 

Permission of land use 

State DI, Department of Town and Country planning 

Site environmental approval 

State pollution control board and Ministry of 

environment and forests 

No objection certificate and consent 

underwater and pollution control acts 

State pollution control board 

Approval of construction activity and 

building plan 

Town and Country planning authority 

Sanction of power 

State electricity board 

Registration under state sale tax act and Sale tax department, central and state excise department 

central and state excise act 

Source: Guidance Export & Promotion Bureau 

The single window clearance committee at the district level comprises of: 

District Collector - Chairman 

General Manager, DIC - Convener 

Deputy Director, Town & Country Planning - Member 

District Environmental Engineer, TNPCB - Member 

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8-12


Superintending Engineer, TNEB - Member 

The above committee meets once every month to speed up the issue of clearances. 

8.9 Single Window Clearance Mechanism Implementation 

8.9.1 Recommendations 

The key elements for successful implementation of a single window clearance system would be as 

follows: 

i. A transparent system in which all the department concerned will be liable for providing the 

clearance without any delay, would require to be set up. 

ii. If any department has objections in giving clearance to the application, the same will be 

reviewed by the PCC which will look in to all aspects and if it is legally permissible, approve 

the project. 

iii. Decisions taken by the project clearance committee, represented by all departmental heads, 

should be final and cannot be objected to, by any other organization/institution or local body. 

iv. An entrepreneur should be able to start a project without objection from any other institutions 

in the municipality/Government, once it is cleared by the Project Clearance Committee 

(PCC). 

v. The inclusion of a representative of the Municipality like the Executive Officer or Town and 

Country Planning department official in meetings of the PCC as a permanent invitee will 

enhance the functional efficiency of the PCC. 

vi. If the single window clearance system is made online and all departments are linked in a 

system, the online registrations can be monitored on a daily basis by senior officials of DIC 

and an alert given to the officials of concerned departments, if there is a delay in response. 

vii. Introduction of the online single window business approval system as part of the state 

governments e-governance initiative, will have the added advantage that no application will 

remain unattended and without any action being taken. 

viii. An online tracking system will strengthen the approval process even more. 

ix. The Project Clearance Committee must meet at least once every month to speed up the 

issue of clearances on a given day for example, the third Saturday of every month. 

x. Awareness must be created amongst the investing public, entrepreneurs and industrialists of 

the existence and efficacy of the Bihar Single Window Clearance System. 

Although the Govt. of Bihar had enacted the Bihar Single Window Clearance Act 2006 with all good 

intentions, the single window clearance mechanism has not in reality, become effective till now. In 

fact, though there is a Single Window Act in the state, there are (to quote the Deputy Chief Minister 

of the state) several small windows behind that single window. Thus, effectively introducing those 

Final Report 

8-13


components of the City Business Plans which finally get the approval of the state government, the 

effective implementation of the Single Window Clearance System would go a long way in helping the 

state to figure more prominently in the country‟s industrial map. 

The introduction of an online Single Window Clearance System even in state like Bihar, where the 

literacy level is relatively poor, strongly recommended in a phased manner. The option of according 

automatic clearance to proposals in the event of no objections raised by any of the concerned 

authorities within a period of maximum sixty days may not be practically feasible but is still being 

recommended. for consideration of the State Government. The recommended structure under 

Single Window Act is shown in the Figure 8.1. 

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8-14


Figure 8.1: Recommended Online Single Window Business Approval System 

Receipt and Processing of Applications (CAF) 

for establishment of Industry/Enterprise 

involving investment below `10 Crores.crore 

Manufacturing 

Processing 

Service 

Commercial 

Business 

1 

Forward Applications and Pursues Clearances* 

*Grant/NOC/License/Allotment/Registeration/ 

Approval/Consent/Permission, etc. 

E 

pp 

2 

F f E p ’ 

Memorandum-1 (EM-1) 

District Magistrate 4 

General Manager-DIC 

Executive Engineer- Electricity Board 

Chairman -Dist. Industries Union 

Representative- State Finance Corporation 

Representative- Div. Pollution Control 

Board 

No Municipal Clearances required 

Within BIADA zone 

Building Plan Approval 

Within Municipal Limits 

ULB (Municipal Corporation/ 

Municipality) 

Trade License 

Outside Municipal Limits 

(Gram Panchayat) 

NOC for land transfer 

Clearances 3 

Competent Authority 

Pollution Control 

Board (for non-agro 

industries and/or 

polluting industries.) 

Commercial 

Tax 

Department 

Industrial safety permits and 

labour related approvals 

from Department of Labour 

and Industrial Health & 

Safety 

Industry Specific Approvals 

as State Drug Controller, 

Food Processing 

Commissioner etc. 

Electricity 

Board 

Water Supply 

Department 

Note: 

1. PCC must meet at least once every month on pre-scheduled date – for example, third Saturday of every month. 

2. EM-II to be filed by entrepreneur after commencing production of goods or rendering services and within two years of filing EM-I 

3. Every Clearance process must have a time frame specified – TBD in consultation with local PCC 

4. Inclusion of a representative of the Municipality like the Executive officer or Town and Country Planning department official will enhance the functional 

efficiency of the PCC 

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8-15


8.9.2 Implementation of Recommendations 

The inherent difficulties which are likely to be faced during the course of implementation of the 

system are dealt with hereunder along with suggestions for overcoming them: 

i. Lack of hardware infrastructure. 

All offices of the DIC should be provided with state of the art computers with broadband 

and internet facilities. 

Similar provisions should be made in every government department associated with 

project clearance. 

ii. Capacity building and Training of man power. 

The Investigating officers (IOs) in various offices of DIC should be suitably trained to 

process the applications and to appropriately address the queries of the investing public. 

Carrier progression of the IOs should be linked to performance. 

Staff of other departments concerned with the clearance process, should also be similarly 

trained. 

iii. Contractual appointment. 

Educated and/or experienced persons with technical qualification and proficiency in uses 

of computers can be considered for contractual employment at entry point level after 

initial training, in DIC and other departments involved in the clearance process. 

iv. DIC jurisdiction. 

The jurisdiction of the District Industry Centre should be, over a period of time, 

extended to community development blocks at least and subsequently, to the panchayats. 

***** 

Final Report 

8-16

9 REHABILITATION OF STREET VENDORS 


A street vendor is broadly defined as a person engaged in 

vending of articles, goods, wares, food items or 

merchandise of everyday use or offering services to the 

general public, in a street, lane, side walk, footpath, 

pavement, public park or any other public place or private 

area or from a temporary built up structure or by moving 

from place to place and includes hawkers, peddlers, 

pheriwallas, rehri-patri wallas, footpath dukandars, 

sidewalk traders, squatters and all other synonymous 

terms which may be local or region specific; and the 

words street vending with their grammatical accordingly as exhibited in Photo. 9.1 and Fig.9.2. 

Street Vending has been a profession since time immemorial, with street vendors an integral part of 

our urban history and culture. Shopping and marketing, in 

a traditional Indian sense, has primarily been informal. 

These informal units are located strategically near bus 

stands, railway stations, collectorates, busy streets, 

commercial areas, outside the boundary of schools, 

colleges and hospitals, etc. 

In Muzaffarpur city, there are a total of 9758 vendors 

(Source: SPUR Vendor Study). The percentage of static 

vendors is 91.1% and that of mobile vendors is 8.9%, and 

street vendors are engaged in a range of activities from 

selling vegetable and fruits, non-vegetarian item vending, 

and selling readymade garments to other household items. A large number of vendors are also 

engaged in trade of miscellaneous items like plastic toys, leather goods etc and many of them are selfemployed 

as cobblers, porters, barbers etc. The detailed analysis of street vendors has been given 

below by following the policies of National Urban Street Vendors Policy, 2009 and Bihar Draft Street 

Vendors Bill, 2011. This chapter comprises the following items: 

Approach and methodology; 

National urban street vendor policy 2009; 

Draft Bihar state street vendors bill 2011; 

Status of street vendors; 

City level status of vendors; 

Photo 9.1: A view static vendors engaged in 

vending activities at Moti Jheel ward No.19 

in municipal area of Muzaffarpur city. 

Photo 9.2: Another view of street vendors 

engaged in business activities along Station 

road ward No.11 in Muzaffarpur cluster. 

Final Report 

9-1


Ward wise status of vendors; 

Key issues of street vendors; 

Issues emerging through consultation with street vendors; 

Issues emerging through consultation with Govt. Officials & elected representatives; 

Vending zone; 

No-vending zone; 

Restricted vending zone; and 

Recommendations 

9.2 Approach and Methodology 

For carrying out this study a series of transect walks were conducted in the wards of the city to 

identify the actual situation of the street vendors in the town besides data culled out from DFID – 

SPUR survey of street vendors. In addition stakeholders consultations were also conducted 

particularly involving street vendors and local govt. officials to incorporate the views of the people in 

the city business plan. The study was carried out keeping in mind the National Policy of Urban Street 

Vendors, 2009 and Draft Bihar State Street Vendors Bill, 2011. 

9.3 National Policy on Urban Street Vendors, 2009 

The objective of the policy is to provide and promote a supportive environment for the vast mass of 

urban street vendors to carry out their vocation while at the same time ensuring that their vending 

activities do not lead to overcrowding and unsanitary conditions in public spaces and streets. The 

specific objectives of this policy are as follows: 

To give street vendors a legal status by formulating an appropriate law and thereby providing 

for legitimate vending zones in city/town master or development plans including zonal, local 

and layout plans and ensuring their enforcement; 

The principle for determination of vending zones as restriction-free vending zone, restrictedvending 

zones and non-vending zones, street and other public places; 

To provide civic facilities for appropriate use of identified spaces as vending/hawking zones, 

vendors‟ markets or vending areas in accordance with city/town master plans including zonal, 

local and layout plans; 

To eschew imposing numerical limits on access to public spaces by discretionary licenses, and 

instead moving to nominal fee-based regulation of access, where previous occupancy of space 

by the street vendors determines the allocation of space or creating new informal sector markets 

where space access is on a temporary turn-by-turn basis. All allotments of space, whether 

permanent or temporary should be based on payment of a prescribed fee fixed by the local 

Final Report 

9-2


authority on the recommendations of the Town Vending Committee to be constituted under this 

Policy; 

To promote, where necessary, organizations of street vendors e.g. unions / co-operatives / 

associations and other forms of organizations to facilitate their collective empowerment; 

To set up participatory processes that involve firstly, local authority, planning authority and 

police; secondly, associations of street vendors; thirdly, resident welfare associations and 

fourthly, other civil society organizations such as NGOs, representatives of professional groups 

(such as lawyers, doctors, town planners, architects etc.), representatives of trade and 

commerce, representatives of scheduled banks and eminent citizens; 

To promote norms of civic discipline by institutionalizing mechanisms of self-management and 

self-regulation in matters relating to hygiene, including waste disposal etc. amongst street 

vendors both in the individually allotted areas as well as vending zones/clusters with collective 

responsibility for the entire vending zone/cluster; and 

To promote access of street vendors to such services as credit, skill development, housing, 

social security and capacity building. For such promotion, the services of Self Help Groups 

(SHGs)/Co-operatives/ Federations/Micro Finance Institutions (MFIs), Training Institutes etc. 

should be encouraged. 

9.4 Bihar State Draft Street Vendors Bill, 2011 

The objective of this policy is to provide for protection of livelihood of urban street vendors and to 

regulate trade and services provided by street vendors to the public and for matters connected 

therewith or incidental thereto. The main objectives of the policy are as follows: 

The norms of spatial planning to be adopted by the planning authority for earmarking vending 

zones or adequate space for street vendors in the master plan, development plan, zonal plan, 

layout plan or any other spatial plan; 

The principle for determination of vending zones as restriction-free vending zone, restrictedvending 

zones and non-vending zones, street and other public places; 

The condition under which private places may be designated as vending zones by the municipal 

authority; 

The principle for determining holding capacity of vending zones and the manner of undertaking 

comprehensive digitalized photo census and survey of the existing number of street vendors 

within the holding capacity of the vending zones; 

The form and manner of grant, renewal, suspension or cancellation of a registration certificate 

for, and issue of identity card to, the street vendors; 

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9-3


The manner of levy and collection of fees for the grant and renewal of a registration certificate 

and fine fines for contravention of the terms and conditions of registration and other provisions 

of this Act; 

The form and manner of grant, renewal, suspension or cancellation of a license; 

The manner of levy and collection of fees for the grant and renewal of license and fines for 

contravention of the terms and conditions of the license; 

The terms and conditions for street vending including norms to be observed for up keeping 

public health and hygiene; 

The designation of State Nodal Officer for coordination of all matters relating to street vending 

at the state level; 

The designation of District Nodal Officer for coordination of all matters relating to street 

vending at the District level; 

The manner of maintenance of proper records and other documents by the town vending 

committee, local authority, planning authority, State Nodal Officer and District Nodal Officer in 

respect of street vendors; and 

The manner of giving notice to, and eviction of, street vendors; impounding, destruction or 

seizure of stalls, goods and equipment‟s and relocation of, and compensation payable to evicted 

street vendors; 

9.5 Status of Street Vendors 

It has emerged from the SPUR vendor study that out of total 9758 vendors, a majority 5075 vendors 

belong to the category of static/fixed male and 3810 static female vendors. In case of mobile vendors 

male vendors constitutes 593 whereas female mobile vendors are 280. The status of street vendors in 

terms of gender, static and mobile is presented in Table 9.1. 

Particulars 

Static 

Male 

Vendors 

Table 9.1: Status of Street Vendors 

Static 

Female 

Vendors 

Mobile 

Male 

Vendors 

Moving 

Female 

Vendors 

Total 

Number 5075 3810 593 280 9758 

Percentage 52.01 39.04 6.08 2.87 100 

Source: Survey conducted by SPUR 

9.6 City Level Status of Vendors 

City level status of vendor study has revealed that a majority of vendors are engaged in vegetable 

activities (2437) followed by food (1893), others (1889), fruit 1472, cloth vendors (1111) and vendors 

selling non-vegetarian food items (956). It is evident from the following Table 9.2. 

Table 9.2: City Level Status of Vendors 

Final Report 

9-4


Sl. 

No. 

Vendors Number Percentage 

1 Vegetable 2437 25.0 

2 Fruit 1472 15.1 

3 Non-vegetarian 956 9.8 

4 Cloth 1111 11.4 

5 Food 1893 19.4 

6 Others 1889 19.4 

Total 9758 100 

Source: Survey conducted by SPUR 

9.7 Ward-Wise Status of Vendors 

SPUR vendor study shows that a majority of vending activities is being done in specific locations like 

Company Bagh area ward No.9 (n=538), followed by Ghirni Pokhar to Saraiyaganj ward No.19 

(n=290), Kalyani Chowk to Thana Chowk ward No.23 (n=283), Station road to Muzaffarpur ward 

No.9 (n=235), around bus stand ward No.10 (n=232), Neem Chowk to Aghoria bazar ward No.28 

(n=232), Kathipul ward No.26 (n-210) and Purani bazar ward No.40 (n=202) etc. A detailed break up 

of status of vendors ward wise is summarized in Annexure 9.1. 

9.8 Key Issues of Street Vendors 

Consultation is an entry point for promoting adequate 

rehabilitation of vendors. The purpose of this 

consultation is to undertake systematic listening, which 

gives voice to the people particularly poor and 

vulnerable vendors group which was taken up as an 

integral part of the city business plan preparation. The 

key issues of street vendors which emerged during 

consultation and discussion with street vendors and 

local Govt. officials are as follows: 

Photo 9.3: Social expert discussing vendors‟ 

issues during public consultation at station 

road, ward No. 11 in the city of Muzaffarpur. 

9.8.1 Issues emerging through consultation 

with street vendors 

Consultation involving a wide range of street vendors 

both static and mobile selling vegetables and fruits, 

non-vegetarian item vending, readymade garments and 

other household items like plastic toys, leather goods, 

cobblers, porters, barbers etc. The issues that emerged 

during discussion with the street vendors are outlined 

Photo 9.4: A view of Street vendors‟ 

participation during consultation and 

discussion about social issues and their 

adequate rehabilitation at Company Bagh 

area ward No.9 in the city. 

Final Report 

9-5


below and a list of the participants‟ location wise is presented in Table 9.3, 9.4, 9.5 & 9.6 and 

exhibited in Photo. 9.3, 9.4 & 9.5 respectively. 

Vendors lack gainful employment; 

Usually they face Muzaffarpur Municipal 

Corporation (MMC) drive to harass and evict 

them in the name of encroachment and traffic 

congestion; 

MMC charge Rs.20 per day from eatery vendors 

but other vendors pay Rs.15 per day; 

Vendors usually possess low skills and have low 

levels of education; 

Vending activities does not require high skills and 

the capital involved is low; 

A large part of their income is spent in bribes and protection money; 

Vendors live a precarious existence as they face the constant threat of eviction and destruction 

of their property by police and MMC officials; 

They have poor social protection and their working condition on the street exposed them to a 

variety of safety and health issues; 

They frequently suffer theft/robbery of vending commodities from their kiosks/vending shops; 

MMC should promote weekly markets to accommodate more vendors; 

Vendors requested training programs on subject related to accounts and business management 

for developing harmonious relationship with customers and wholesalers/Mandi businessmen; 

Vendors requested for getting credit and microfinances from Govt. scheme; 

They demanded formation of vendors‟ association; 

Some vendors requested for skill development training including hygiene and sanitation; 

Most of the vendors demanded establishment of toilets, cycle stands and MMC water supply 

facilities in vending areas; 

The lack of toilets has an adverse effect on health particularly women vendors and many suffer 

from urinary infections and kidney ailments; 

Some of the vendors demanded tree plantation in vending areas; 

Vendors reported water logging problems in many locations of the city; 

At a few locations vendors reported noise pollution because of busy streets; 

Vendors requested improvement of drainage and footpaths; 

Appropriate arrangements for waste disposals including provision of dustbins and regular 

collection of waste from vending zone; 

Establishment of dispensaries and clinics in vending areas requested; 

Photo 9.5: Social expert with street vendors 

during consultation with Moti Jheel ward No. 

19 in Muzaffarpur city. 

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9-6


Vendors requested for life insurance; 

During consultation, vendors requested for approval of draft Bihar State vendors bill, 2011 by 

the State Assembly; 

They requested that MMC should give licenses to regularize their business; and 

Few vendors demanded establishment of a special vendor market 

Location: Station Road Ward No: 11 

Date: 7 September 2011 

Time: 9:00 am 

Table 9.3: List of Participants Ward No.11 Station Road 

Sl. 

Social 

Name Vendor’s Profession Sex Age 

No. 

Category 

1 Mr. Rizaul Rehman Head of Association Male 45 General 

2 Mr. Mohd. Mehtab Grocery Male 30 OBC 

3 Mr. Bainat Shah Hotel Male 55 OBC 

4 Mr. Santosh PCO Male 27 General 

5 Mr. Manoj Hotel Male 26 General 

6 Mr. Alok Hotel Male 30 General 

7 Mr. Niteesh Kumar Grocery Male 25 SC 

8 Mr. Zaul Rehman Grocery Male 40 General 

9 Mr. Mohd.Saeed Grocery Male 35 OBC 

10 Mr. Kishan ji Grocery Male 35 General 

11 Mr. Mohd. Shakeel Paan Male 28 OBC 

12 Mr. Ajay Ram Grocery Male 35 SC 

13 Mr. Sonu Ram Grocery Male 34 SC 

14 Mr. Alok Singh Hotel Male 32 General 

15 Mr. Ashok Prashad Hotel Male 45 OBC 

Location: Station Road Ward No: 11 


Time: 10:00am 

Sl. 

No. 

Table 9.4: List of Participants Ward No.11 Station Road 


Social 

Category 

1 Mr. Mahendra Ram Grocery Male 60 SC 

2 Mr. Jogendra Prasad Hotel Male 46 OBC 

3 Mr. Kartik Lal Shah Hotel Male 45 OBC 

4 Mr. Umesh Prasad Hotel Male 40 OBC 

5 Mrs. Laxmi Devi Fruit Female 60 SC 

6 Mr. Mukesh Shah Fruit Male 35 OBC 

7 Mr. Shahankar Shah Grocery Male 32 OBC 

8 Mr. Raj Kumar Fruit Male 25 SC 

9 Mr. Deepak Kumar Grocery Male 20 SC 

Final Report 

9-7


Sl. 

Social 


No. 

Category 

10 Mr. Baid Nath Shah Hotel Male 55 OBC 

11 Mr. Rajesh Kumar Hotel Male 31 SC 

12 Mr. Manoj Kumar Hotel Male 28 SC 

13 Mr. Guddu Kumar Hotel Male 26 SC 

14 Mr. Alok Kumar Hotel Male 28 SC 

15 Mr. Chottu Kumar Hotel Male 25 SC 

Location: Company Bagh Ward No: 20 


Time: 11:00 am 

Table 9.5: List of Participants Ward No. 20 Company Bagh 

Sl. No. Name Vendor’s Profession Sex Age 

Social 

Category 

1 Mr. Abdul Bari Books & Stationary Male 44 OBC 

2 Mr. Mohd Siraj Books & Stationary Male 22 OBC 

3 Mr. Sajid Raza Books & Stationary Male 25 General 

4 Mr. Mohd. Abbas Bakery Male 55 General 

5 Mr. Mohd. Mustafa Lock Fitter Male 45 General 

6 Mr. Mohd. Manzar Book Binder Male 44 OBC 

7 Mr. Mohd. Akbar Book Binder Male 35 OBC 

8 Mr. Mohd.Nazir Book Binder Male 60 OBC 

9 Mr. Razi Ahmad Paan Male 50 General 

10 Mr. Mohd. Azizul Book Binder Male 55 OBC 

11 Mr. Akeel Ahmad Shoes Repair Male 26 OBC 

12 Mr. Shankar Rai Tea Male 35 OBC 

13 Mr. Amar Nath Sharma Books and Stationary Male 44 General 

14 Mr. Kanahiya Lal Gupta Plastic Products Male 44 OBC 

15 Mr. Parvez Alam Cotton work Male 50 OBC 

Sl. 

No. 

Location: Moti Jheel Ward No: 19 


Table 9.6: List of Participants Ward No.19 Moti Jheel 

Time: 2:00 pm 


Social 

Category 

1 Mr. Subhash Kumar Garments Male 28 SC 

2 Mr. Amar Verma Garments Male 46 General 

3 Mr. Vijendra Chaudhary Garments Male 50 OBC 

4 Mr. Raju Kumar Garments Male 32 SC 

5 Mr. Mohd. Raqeebul Bags Male 45 OBC 

6 Mr. Munshi Shah Fruits Male 60 OBC 

7 Mr. Shatrohan Tea Male 42 OBC 

Final Report 

9-8


Sl. 

No. 


Social 

Category 

8 Mr. Umesh Garments Male 40 OBC 

9 Mr. Monoj Tea Male 35 OBC 

10 Mr. Akbar Ali Garments Male 25 OBC 

11 Mr. Kalu Chaat Male 35 OBC 

12 Mr. Anil Garments Male 39 OBC 

13 Mr. Lal Babu Garments Male 45 OBC 

14 Mr. Dilip Paswan Garments Male 45 OBC 

15 Mr. Mohd. Firoz Garments Male 35 OBC 

16 Mr. Vikas Patel Garments Male 38 OBC 

17 Mr. Dharmender Fruits Male 26 OBC 

9.8.2 Issues emerging through Consultation with Govt. Officials and Elected 

Representatives 

As per the process of information propagation and 

collecting relevant information for rehabilitation of street 

vendors, various Govt. officials were consulted during the 

field visit in the city. During consultation with local 

officials following issues emerged. A list of the consulted 

Govt. officials is presented in Table 9.7 and shown in 

Fig.9.6. 

The MMC does not have land to develop locations 

for relocation of street vendors; 

The MMC cannot establish weekly vendors markets 

because of unavailability of land; 

The Govt. is yet to evolve a scheme for rehabilitation of vendors; 

There is need for capacity building of the support system (DIC, MSME-DI, IED-Patna, as well 

as NGOs) to support entrepreneurship training to vendors as well as facilitate micro-credit 

linkages; 

Difficult to change the mind set of street vendors; 

Problems in formation of Self Help Groups (SHGs) and Joint Liability Groups (JLGs) because 

of the lack of awareness among vendors as well as dedicated intervention by the support 

system; 

Some of the Govt. officials are not very aware about the National and Bihar Govt. policy for 

protection of street vendors; 

The MMC is unable to even build basic toilet facilities for vendors in vending areas because of 

non-availability of space for construction; 

Photo 9.6: Workshop at DM Office for 

preparation of CBP including vendors‟ 

rehabilitation in the city 

Final Report 

9-9


The MMC has no appropriate arrangements for waste disposal, dustbins and regular collection 

of waste from vending zone; 

There is a huge problem of traffic congestion at some locations because of vendors 

mushrooming in those areas; and 

Lack of finances to implement programs for upliftment of street vendors. 

Table 9.7: Consultation with Govt. Officials and Elected Representatives 

Sl. No. Name of Officials Designation 

1 Mrs. Nirmala Kumari Municipal Addl. Commissioner 

2 Mrs. Bimla Devi Tulsayan Mayor 

3 Md. Nisaruddin Deputy Mayor 

4 Mr. Kammaruzazzam District Disaster Officer 

5 Mr. C.M. Thakur District Statistical Officer 

6 Mrs. Poonam Jha District Planning Officer 

7 Mr. Gaya Prashad Singh Transport Association 

8 Mr Umesh Paswan Ward Counsellor 

9 Mr. Chatarbuj Prasad Gupta -do- 

10 Mr. Raj Vinit kumar -do- 

11 Mr. Krishna Kumar shah -do- 

12 Mr. Suresh Kumar Choudhary -do- 

13 Mr. Suman Kumar Tiwary -do- 

14 Mr. Ravi Sankar -do- 

15 Mr. Rajeev Kumar -do- 

16 Mr. Rajesh Kumar -do- 

17 Mr. Ajay Kumar Gupta -do- 

18 Mr. Rameshwar Paswan -do- 

19 Mr. Ravi Sankar Sharma -do- 

20 Mr. Mukesh Kumar Vijeta -do- 

21 Mr. Amar Singh -do- 

22 Mr. Sayed Majid Hussain -do- 

9.9 No Vending Zone 

The no-vending zones may be notified both in terms of location and time. Locations should not be 

designated as 'no-vending' zones for frivolous reasons; the public benefits of declaration of a novending 

zone should clearly outweigh the potential loss of livelihood and non-availability of goods 

and services that it would involve. 

As many as 11647 street vendors are likely to be affected by the declaration of no-vending zone and 

some of them may be considered for shifting in proposed vending areas. 

During transect walks in the municipal wards and consultation and discussion with the vendors and 

their representatives as well as MMC officials, the following locations were identified for no-vending 

zone as outlined in Table 9.8. 

Final Report 

9-10


Sl. 

No. 

Table 9.8: No Vending Zone 

Areas / Locations 

Municipal 

Ward 

Remarks 

1 Bibiganj 1 

Heavily built-up, narrow 

and congested area 

2 Bibiganj to Bhagwanpur 1 -do- 

3 Bhagwanpur To Reva Rd. Ward No.2 -do- 

4 Chandni Rd. Ward No.2 -do- 

5 Gobarsahi to Bhagwanpur Ward No.3 -do- 

6 Maripur to gobarsahi Ward No.3 -do- 

7 Beriya to Lakshmi Chowk Ward No.4 -do- 

8 Chandni Chowk to Beriya Ward No.4 -do- 

9 Brahmapura to Sanjay Cinema Ward No.5 -do- 

10 Chata Chowk to Khabra Ward No.6 -do- 

11 Khabra to Kali Mandir Ward No.6 -do- 

12 Khabra to Gobarsahi Ward No.7 -do- 

13 Maripur to Bhagwanpur Gumti Ward No.7 -do- 

14 Juran Chapra to Brahmpura Ward No.8 -do- 

15 Refujee to Juran Chapra Ward No.8 -do- 

16 Company Bagh Ward No.9 -do- 

17 Kachahri Rd. Ward No.9 -do- 

18 Sadar Hospital Rd. Ward No.9 -do- 

19 Station Road Ward No.9 -do- 

20 Around the Bus Stand Ward No.10 -do- 

21 Circuit House Ward No.10 -do- 

22 Magistrate Col. Ward No.10 -do- 

23 Maripur Moar to Bus Stand Ward No.10 -do- 

24 Zero Mile Ward No.11 -do- 

25 Zero Mile to Akhara Ghat Ward No.11 -do- 

26 Balu Ghat Ward No.12 -do- 

27 Balu Ghat to Pul Ward No.13 -do- 

28 Balu Ghat to Zero Mile Ward No.13 -do- 

29 Akhara Ghat Pul to Kali Mandir Ward No.14 -do- 

30 Mandir to Balu Ghat Ward No.14 -do- 

31 Kapuri Nagar to R.N.C Ward No.15 -do- 

32 R.N.C to Hanuman Mandir Ward No.15 -do- 

33 Aamgola Pul to Harisma Chowk Ward No.16 -do- 

34 Diwan Rd. Ward No.16 -do- 

35 Diwan Rd. to Harisma Chowk Ward No.16 -do- 

36 Durgamandir to Najirpur Ward No.17 -do- 

37 Saraiyaganj to Durga Mandir Ward No.17 -do- 

38 Najirpur to Pankaj Market Ward No.18 -do- 

39 pankaj Market to Tower Ward No.18 -do- 

Final Report 

9-11


Sl. 

Municipal 


No. 

Ward 

Remarks 

40 Chata Chowk to Pankaj Market Ward No.19 -do- 

41 Ghirni Pokhar to Saraiyaganj Tower Ward No.19 -do- 

42 Kalyani Chowk to Chata Chowk Ward No.19 -do- 

43 Companybagh karbala to sikandpur Ward No.20 -do- 

44 Tower to Companybagh Ward No.20 -do- 

45 Purani Gudri to Amar Cinema Ward No.21 -do- 

46 Sonarparri to Purani Gudri Ward No.21 -do- 

47 Bank Road Ward No.22 -do- 

48 Islampur Ward No.22 -do- 

49 Sutapatti Ward No.22 -do- 

50 Thana Chowk to Islampur Moar Ward No.22 -do- 

51 BB collegiate to Arya Samaj Mandir Ward No.23 -do- 

52 Kalyani Chowk to thana Chowk Ward No.23 -do- 

53 Thana to Dharmshala Chowk Ward No.23 -do- 

54 Choti Saraiyaganj to Tower Ward No.24 -do- 

55 Pandeyji Gali Ward No.24 -do- 

56 Andi Gola Ward No.25 -do- 

57 Ghirni Pokhar Ward No.25 -do- 

58 Jawahar Lal road Ward No.25 -do- 

59 Both Side of Railway Gumti Ward No.26 -do- 

60 

Chandralok Chowk to Technical 

Chowk 

Ward No.26 

-do- 

61 Chata chowk to Speaker Chowk Ward No.26 -do- 

62 Kathi Pul Ward No.26 -do- 

63 Balughat bandh Ward No.27 -do- 

64 Banaras Bank Chowk Ward No.27 -do- 

65 Soda Godam Ward No.27 -do- 

66 Milky Tola Ward No.28 -do- 

67 Neem Chowk to Aghoria Bazar Ward No.28 -do- 

68 Milky Tola to R.D.S College Ward No.29 -do- 

69 R.D.S to Ramdayal gumti Ward No.29 -do- 

70 R.D.S. college to Aghoria Bajar Ward No.29 -do- 

71 Atardah Ward No.30 -do- 

72 Atardah to Milky Tola Ward No.30 -do- 

73 Neem Chowk to Atardah Ward No.30 -do- 

74 Kachchi Pakki Ward No.31 -do- 

75 Kachhi Pakki to Atadah Ward No.31 -do- 

76 Shitla Gali Ward No.31 -do- 

77 Atardah to Railway Gumti Ward No.32 -do- 

78 Railway Gumti to Gas Godam Ward No.32 -do- 

79 Ratbara Ward No.32 -do- 

80 Sherpur Ward No.33 -do- 

Final Report 

9-12


Sl. 

Municipal 


No. 

Ward 

Remarks 

81 Sherpur to Neem Chowk Ward No.33 -do- 

82 Mithanpur Lala to Aamgola Ward No.34 -do- 

83 Sherpur to Mithanpur Lala Ward No.34 -do- 

84 Harisabha to Pani Tanki Ward No.35 -do- 

85 Pani Tanki to Panjabi College Ward No.35 -do- 

86 Amar Cinema to Harisabha Ward No.36 -do- 

87 Pani Tanki to Amar Cinema Ward No.36 -do- 

88 Kanhauli Ward No.37 -do- 

89 Kanhauli Math Ward No.37 -do- 

90 Kanhauli to Bela Ward No.37 -do- 

91 Police Line Ward No.38 -do- 

92 Tinpokhariya Ward No.38 -do- 

93 Banaras Bank to Jail Chowk Ward No.39 -do- 

94 Police Line to Banaras Bank Chowk Ward No.39 -do- 

95 Prabhat Cinema to Harisabha Ward No.40 -do- 

96 Purani Bazar Ward No.40 -do- 

97 Purani Bajar to Prabhat Cinema Ward No.40 -do- 

98 Chouri to Khadi Bhandar Ward No.41 -do- 

99 Rambagh Chowk to Rambagh Chouri Ward No.41 -do- 

100 Nunphar Ward No.42 -do- 

101 Nunphar to Kali Mandir Ward No.42 -do- 

102 Nunphar to Pokhariya Ward No.42 -do- 

103 Bela Chapra Ward No.43 -do- 

104 Bela Chowk to Mithanpura Ward No.43 -do- 

105 Mithanpura to Pani Tanki Ward No.43 -do- 

106 Pani Tanki to Meman Gali Ward No.43 -do- 


108 P.N.T Chowk Ward No.45 -do- 

109 P.N.T to Madnani Gali Ward No.45 -do- 

110 P.N.T to Rambagh Chowk Ward No.45 -do- 

111 Bela to Kanhauli Ward No.46 -do- 

112 Rambagh to Khadi Bhandar Ward No.46 -do- 

113 Kanhauli to P.N.T Ward No.47 -do- 

114 Khadi Bhandar to Kanhauli Ward No.47 -do- 

115 Kanhauli to Masjid Chowk Ward No.48 -do- 

116 Masjid to P.N.T Ward No.48 -do- 

117 Khadi Bhandar to Leprosy Mission Ward No.49 -do- 

118 Leprosy Mission to Tinpokhari Ward No.49 -do- 

Final Report 

9-13


9.10 Vending Zone 

The demarcation of zones should be specific, conducive and adequate for street vendors. There are 

three types of vending zones to be earmarked as per the Bihar State vendors draft bill, 2011 (i) 

Vending Zone (ii) No Vending Zone (iii) Restricted Vending Zone 

Vending zone means an area or place or a location designated as such by the planning authority for 

the specific use by street vendors for street vending and includes footpath, side walk, pavement, 

embankment, portions of a street, waiting area for public or any such place considered suitable for 

vending activities and providing services to the general public. 

During transect walks in the city and consultation and discussion with vendors and their 

representatives as well as MMC officials the following locations were identified and proposed for 

vending zone as indicated in Table 9.9. 

Sl. 

No. 


Table 9.9: Vending Zone 

Municipal 

Ward 

Remarks 

1 Bhagwanpur Chowk to Maripur Ward No.02 

Basic facilities may also be set 

up because of widened road 

2 Lakshmi Chowk to Brahmapura Ward No.05 -do- 

3 Akhada Ghat Road Ward No.12 -do- 




9.11 Restricted Vending Zone 

Restricted vending zone should be based on certain objectives which can ensure free flow of traffic, 

smooth movement of pedestrians and maintenance of cleanliness and public hygiene while facilitating 

vendors/hawkers in restricted vending zone to sell goods/services at convenient locations visited by 

the public. Restricted vending zones‟ may be notified in terms of both location and time and it should 

be designated by appropriate architect planning for specific use by vendors for vending activities. The 

locations identified for restricted vending zone are presented in Table 9.10. 

Table 9.10: Restricted Vending Zone 

Sl. No. Areas / Locations Municipal Ward Remarks 

1 Bhagwanpur Chowk to Maripur Ward No.02 

Adequate planning and 

architect designing required 

2 Lakshmi Chowk to Brahmapura Ward No.05 -do- 




Final Report 

9-14


9.12 Mapping Constraints 

The No Vending Zone, Vending Zone and Restricted vending Zone could not be shown on ward maps 

because of the overlapping of zones within wards. Some wards contain all three zones; therefore, 

ward-wise map of abovementioned three zones could not be shown. 

9.13 Recommendations 

In Muzaffarpur city there is a growing number of street vendors. The growth is mainly related to the 

changes in the economy of the city. Street vending increases with the shrinking of jobs in the formal 

sector and with lack of gainful employment in rural areas. The rural unemployed tend to move to the 

cities in search of employment. They usually possess low skills and have low levels of education. 

Both factors make it almost impossible for them to find regular jobs in the formal sector. Entry into 

this trade is easier because it does not require high skills and the capital involved is low. Some of the 

more important points are listed below as recommendations: 

Collection and maintenance of data regarding street vendors; 

The MMC should identify and declare vending zones as restriction free vending zones, 

restricted vending zones and no vending zones; 

There should be periodic surveys of vending zones; 

The MMC should take into account the natural propensity of street vendors to locate in certain 

places at certain times; 

There should be a fixed sign board at each vending zone to indicate the kind of vending zone 

and vending times; 

The no-vending zones may be notified both in terms of location and time. Locations should not 

be designated as no-vending zones for frivolous reasons; 

The MMC will identify and provide land for appropriate development of vending zone in the 

city; 

Mobile urban vending should be permitted in all areas even outside the designated vendors' 

markets, unless designated as no-vending zone through a participative process; 

The MMC may promote weekly markets in different wards every day to attract more mobile 

vendors concentrated in the most busy and highly congested streets of the city; 

The MMC should declare place and timing of vendors markets for weekly markets, night 

bazaars and holiday bazaars during fair and festival seasons particularly Rakhi Purnima, Holi, 

Dussehra, Diwali, Saraswati Puja, Durga Puja, Bhaiya Dooj, Chhath and Eid etc; 

The MMC should ensure adequacy of civic amenities, including, water, sanitation, waste 

management, electricity in the vending zones; 

Monitor activities of street vendors; 

Final Report 

9-15


Promote awareness regarding credit and facilitate entrepreneurship particularly into 

manufacturing or processing in mills or HH industries through institutional mechanisms; NGOs 

can do better in this regard; 

The MMC should provide sufficient spaces, designated as vendors markets in layout plans at 

locations of such natural markets, for the number of vendors‟ static and mobile which can cater 

to demand for their wares / services. If aspirants to such location exceed the number of spaces 

available, the excess may be regulated by fees and not discretionary licenses; 

The public benefits of declaration of a no-vending zone should clearly outweigh the potential 

loss of livelihood and non-availability of goods and services that it would involve; 

With the growth of the city every new area should have adequate provision for Street vendors; 

Provision for protective covers to protect their wares as well as themselves from heat, rain, dust 

etc; 

The policies at National and State level are not implemented by the MMC because it lacks legal 

enforceability. Existing laws such as MMC laws, police Acts and IPC are not recognizing street 

vendors as a legal entity; 

The MMC should invite feedback from stakeholders specifically vendors and local people in 

formulation of vending zone and more importantly traffic police and MMC officials may be 

more accountable; 

Facilitate interaction with bankers in matter related to credit and microfinances linked with 

Swarn Jayanti Swarojgar Yojana; NGO can do good job in this area; 

Programmes for the benefit of street vendors such as, Jawaharlal Nehru National Urban 

Renewal Mission, Prime Minister's Employment Generation Programme, Aam Admi Bima 

Yojana and Rashtriya Swasthya Bima Yojana etc. may also be covered for their rehabilitation; 

NGO can do good job in this area; 

Organize and promote vendors associations and Self Help Group (SHGs) and Joint Liability 

Groups (JLGs) of street vendors in order to access micro-finances; 

SHGs and JLGs would be formed among street vendors to access credit from banks through 

mechanism like SHGs/JLGs-bank linkage; 

Conduct training program for street vendors with a view to enlighten them with business skills 

and awareness of legal rights, MMC procedures & dealing with police; NGO can assist in this 

regard; 

Skill development training including health, hygiene and sanitation; NGO can undertake this 

work; 

Welfare schemes regarding vocational education and training like the tailoring, car driving, 

basic computing skills can be extended to street vendors as well; 

Final Report 

9-16


Determine terms and conditions for providing benefits of insurance, maternity benefits, old age 

pension and other social security schemes to the street vendors in case of death, illness or 

disability; and 

Bihar State draft vendors bill, 2011 should be approved by the State Assembly as early as 

possible for the betterment of city as well as for street vendor livelihood. 

Final Report 

9-17


Different Views of Transect Walks and Consultations in Muzaffarpur City 

Final Report 

9-18

10 STAKEHOLDER CONSULTATIONS 


Stakeholder consultations were taken up as an 

integral part of the City Business Plan (CBP) 

preparation of Muzaffarpur City. The objective of the 

stakeholder‟s consultation was to ensure that the CBP 

reflects the ground realities and practically feasible 

strategies as articulated by stakeholders. For this 

purpose, after identification of stakeholders, the 

consultation process was formulated to target 

stakeholders at various levels. For the discussions a 

series of consultations were initiated with two 

groups‟ namely primary and secondary stakeholders. These two core groups of stakeholders were 

identified: 

Primary Stakeholders including mainly beneficiaries of a development intervention or those directly 

benefitted by it. They include local people e.g. 

resource persons and also community representatives 

in the program such as entrepreneurs, traders and their 

associations, NGOs& other institutional 

representatives; 

Secondary Stakeholders, who influence a 

development intervention or are indirectly affected by 

it. They include Govt. Officials and Line ministry and 

concerned departments, project staff, implementing 

agencies, civil society organizations (CSOs) and other 

development agencies etc. 

Photo 10.1. A view Team Leader focusing on 

value-chain component of CBP during 

Workshop at DM office, Muzaffarpur 

Photo 10.2. Workshop in progress at DM 

office Muzaffarpur for preparation of city 

Business Plan Strategy. 

10.2 Approach & Methodology 

The stakeholder consultations were held mainly to 

prioritize economic and business development issues 

and formulate feasible strategy options. The approach 

& methodology for the stakeholder consultations 

included: 

Identification of key stakeholders; 

Conducting consultations; 

Photo 10.3. Other view of workshop during 

question hours at DM office 

Final Report 

10-1


Documentation and recording of consultations; and 

Integrating consultation findings into program related decision making. 

The key stakeholders of the city have been identified as under: 

10.3 Govt. Officials & Institutional Representatives 

A number of stakeholder consultations were carried out in the form of meetings, discussions and 

workshops. Meetings and workshop were held to understand their views on the current scenario of 

Muzaffarpur city, their concerns vis-à-vis economic and business development of the city and priority 

areas which require more focus and also data collection required for preparation of CBP. The issues & 

suggestions emerged from the workshop are outlined below with a list of participants e.g. Govt. 

Officials including Core Task Force & institutional representatives is also provided in Table 

10.1along with Attendance Sheet (Annexure10.1) and different views of workshops exhibited in 

Photo. 10.1, 10.2, 10.3 & 10.4 respectively. Other Government, related stakeholders and 

entrepreneurs consulted with are listed in Table 10.2 and Table 10.3. 

10.3.1 Issues/Suggestions 

1. Strengthening the infrastructure of the BIADA 

industrial estate, particularly in terms of an 

express feeder, dedicated power supply facility to 

the estate. This will redress the present 

circumstance where many units are closed. The 

municipality has no vacant land available to 

develop either an industrial estate or a 

commercial complex in one location. The 

available Municipal (Vacant) land is dispersed 

across the city and is evidently not adequate for 

meaningful industrial/commercial PPPs; 

2. The value- chains that may be prioritized in the context of the CBP may include the Litchi, Lac 

Bangle as well as textile /garment value-chains. The Litchi product value-chain in the region is 

one which will have national and even global recognition and an imperative advantage, while 

Lac and textile/garment segments have scope to target the regional and local demand; 

3. A critical circumstance affecting the implementation of PPP projects in the industrial sector is 

the absence of a formal policy in the State which could help leverage assistance from the 

Centre. This is particularly true in the case of the MSE-Cluster Development Program. In 

addition, sector specific EDPs may be conducted in these value-chains to encourage a large 

number of value adding processing/manufacturing start-ups in the region; 

Photo 10.4. A view of healthy discussion by 

ADM and Deputy Mayor Muzaffarpur during 

the Workshop 

Final Report 

10-2


4. The IED, Patna is evidently open to leveraging State Govt. funds for conduct of more standard 

and better sponsored EDPs in any sector and for a period of six weeks each (particularly 

targeting the SC community) with greater result orientation. There is also need for trainers 

training in this context; 

5. The DDC reiterated that the most important value-chain or sector to be considered is the Litchi 

value-chain. The representative of the ULB as well as the Deputy Mayor reiterated the need to 

also focus on the Lac Bangle segment as it provides livelihood to thousands of city folk. The 

representative from the chamber of commerce mentioned that there is a need to also work on 

developing the cloth fabric value-chain (developing the power –loom sector and importantly the 

readymade garment segment in the region); 

6. The representative from the MSME-DI mentioned that the constraints to implementation of a 

PPP investment plan for an integrated common facility Centre for the lac bangle value –chain 

stakeholders is that of access to land (preferably at subsidized rates) as offered by many other 

State Governments. The BIADA representative mentioned that 1 acre land may be 

accommodated (at BIADA rates) as the State Government is yet to evolve a PPP scheme for 

twinning business development projects with Central Governments Schemes; 

7. The MSME-DI representative mentioned that there are a range of products that may be targeted 

in EDPs in the region. However, there is a constraint in terms of trained and qualified 

facilitators /trainers as well as linkages between local institutions and central government 

schemes that appropriately finances conduct of result oriented EDPs. There is evidently need 

for capacity building of such EDP facilitators through trainer‟s training programs. Scope in a 

variety of areas ranging from bamboo products to ready-made garments and furniture exists for 

micro-enterprise start-ups; 

8. The Additional Collector mentioned that there is need for exploring relocation of vendors in the 

light of Bihar State Vendors Bill 2011; and 

9. In the response to a query from the representative of the Chamber of Commerce, the BIADA 

representative mentioned that out of the 61 odd enterprises in the BIADA estate in the vicinity 

only about 21 are working. Some are sick due to problems of electricity which is effectively 

available for hardly 6-8 hrs a day. Presently, all BIADA land is occupied and there is no scope 

for allotment of land (more than one acre) for setting up a cluster facility unit. 

Table 10.1: List of Participants at the Task Force Meet 

Sl. No. Participant Designation 

1 Mr. Surya Narayan ADM 

2 Mr.Vinod Singh Gunyal DDC 

3 Md. Nisaruddin Deputy Mayor 

Final Report 

10-3


4 Mr.MotiLal President 

5 Mr.Rakesh Kumar District Horticulture Officer 

6 Mr. Rajesh Kumar Thakur Superintendent Deptt. Agriculture 

7 Mr. Devi Kumar Mishra Project Director 

8 Mr. A. R. Singh Municipal Commissioner 

9 Mr. N. K. Yadav District Officer 

10 Mr.Pawan Kumar Singh Asstt. Director 

11 Mr.Sidhir Kumar Singh Addl. Collector 

12 Dr.Hari Krishna Jha LDM 

13 Mr. M. S. Balakrishnan Management Expert 

14 Prof. V. Padmanand Team Leader 

15 Mr. Satish Kumar Senior Urban Planner 

16 Dr. Mohammad Isa Ansari Social Development Expert 

17 Mr.Sohaib Ali Sayed Social Scientist 

18 Mr.Prabhakar Kumar Sr. Manager 

10.3.2 Other Stakeholders 

A series of consultations and meetings were also initiated with a range of stakeholders comprising 

government officials, representatives of support institutions and entrepreneurs, representatives of 

chambers and industry associations etc. 

Government stakeholders and representatives of the support system 

A list of government stakeholders and representatives of the support system is reflected in Table 10.2: 

Table 10.2: List of government and support system stakeholders 

Sl. No. 

Govt. Officials/Representatives Support 

System 

Designation 

1 Municipal Corporation Mayor Muzaffarpur 

2 Municipal Corporation Executive Commissioner 

3 DIC, Muzaffarpur GM 

4 Central Bank of India, Muzaffarpur Chief Manager 

5 Central Bank of India, Muzaffarpur LDM 

6 BIADA, Bela Muzaffarpur ED 

7 National Research Centre of Litchi, Muzaffarpur 

8 Government Women Polytechnic, Muzaffarpur Principal 

9 MSME-DI, Muz Director, 

10 DIC Muzaffarpur Industry Extension Officer, 

11 EDA Rural System Pvt. Ltd Senior Executive 

12 MSME DI, Muzaffarpur Assistant Director 

Final Report 

10-4


Sl. No. 

Govt. Officials/Representatives Support 

System 

Designation 

13 NGO, Nirdesh Representative 

14 Agriculture Department District Agriculture Officer 

15 Shree Bhaskar Samaj Kayan Kendra (SBSKK) NGO Representative 

Entrepreneurs 

A list of Entrepreneur participants is reflected in Table 10.3: 

Table 10.3:: List of Entrepreneurs 

Sl. No. Name of Entrepreneurs Designation 

1 Mr. Manoj Kumar Singh 

2 Mr. Prem Kumar Verma 

Proprietor, Supriya Bee Keeping 

(Litchi king) 

Proprietor, M/s Parag Agro 

Foods(Makhana Processing) 

3 Mr. Shahid Kamal Dealer, M/s Kamal Bhai& Co. 

4 Mr. Mahesh Lalsah Proprietor, Sri ParvatiRiceMills 

5 Md. Chand Proprietor, M/s Chand Lahthi Centre 

6 Mr. Praveen Kumar Gupta 

Wholesaler, M/s Shankar Parvati Bangle 

Store 

7 Md. Ansari Proprietor, M. Jewelers 

8 Mr. Sandip Kumar 

Entrepreneur, Shivsankar, Prasad & 

Bros. Mango 

9 Mr. Rajiv Tulsayan Entrepreneur 

10 

Mr. Jamal Ahmad Khan and Shakil 

Pravez 

Artisans 

11 Mr. Pramod Kumar Entrepreneur, Cold Store Enterprise 

12 Mr. Shiv Shankar Sahu 

Entrepreneur, Floor Mill/Poultry 

Enterprise 

13 Mr. Imtiyaz Ahmad Artisan, Rizwan bangle Industry 

14 Dr. R.K. Singh Artisan, Rizwan bangle Industry 

15 Mr. Ram Pukar Roy Litchi Grower 

16 Mr. G.P. Tulsyan President, Laghu Udyog Bharti 

17 Dr. K.M. Tikmani 

18 Mr. Manoj Kumar Singh 

19 Mr. Prem Kumar Verma 

Ex-President, North Bihar Chamber of 

Commerce 

Entrepreneur ,Lichi & Honey (Supriya 

Bee Keeping) 

Makhana processing ,M/s Parag Agro 

Foods 

20 Mr. Sahid Kamal M/s Kamal Bhai & Co. 

Final Report 

10-5


Sl. No. Name of Entrepreneurs Designation 

21 Mr. Mahesh Lal sah 

22 Md. Chand 

23 Mr.Praveen Kumar Gupta 

Rice milling entrepreneur Sri Parvati 

rice mills 

Lahthi entrepreneur ,M/s Chand Lahthi 

centre 

Lahthi entrepreneur ,M/s Shankar 

Parvati Bangle Store 

24 Md. Ansari Jewelry entrepreneur , M. Jewellers 

25 Mr. Sandip Kumar 

Mango processor , Shivsankar Prasad & 

Bros. 

26 Md. Jamaluddin Lahthi entrepreneur, Jaipur lac centre 

27 Mr. Dinesh kumar 

Garments entrepreneur, Jai mata di 

garments 

Consultation Street Vendors 

A detailed consultation with street vendors and their representatives is delineated in chapter 9 of the 

report. 

***** 

Final Report 

10-6

11 PUBLIC-PRIVATE PARTNERSHIP 

11.1 Alignment with the CDP and CIP 

The CDP mentions the options of the following projects in its component related to Economy, trade 

and commerce: 

SL. 

NO. 

Table 11.1: CDP Projects and broad cost estimates 

PROJECT 

Economy, Trade & Commerce 

COST( in Rs. Lakh) 

1 Revival of sick industries in the industrial area/estate. 1000 

2 

Development of industrial parks for agriculture and horticulture 

based products based industries like the litchi and mango. 

4600 

3 Development of honey cluster 10 

4 

Incentives for HH and small scale industries (Manufacture of 

lac bangle; pickle and papad “factory”!) Handlooms 

30 

5 Development of a commercial complex/shopping area. 500 

6 

Construction of a planned and modern regional level market for 

wholesale business of RMG, fruits, vegetables, meat and fish 

1200 

7. Animal husbandry-Rearing of sheep and goats 500 

8 

“Development of CBP” as business market centre in the region 

and proper marketing for resources (!) 

500 

Total 8340 

In this context: 

1. The CBP is aligned with the CDP in terms of the CBP prioritizing litchi and lac bangle valuechains. 

2. However in the light of the fact that a significant part of the existing industrial estate in the region 

houses non-working or closed units whose land may be recovered by BIADA, and the fact that 

there is still 36 acres of additional vacant land in the estate, it will be more appropriate to upgrade 

existing facilities as to ensure adequate power connectivity and reduce water logging than evolve 

yet another estate. Also, a critical cause of sickness has been the decimal condition of industrial 

infrastructure. The ULB has no vacant municipal land to develop new industrial parks. 

3. There is already a base of litchi units and options for the litchi (as well as mango segment) is 

more in terms of common facilities that may be established to complement growth of a number of 

micro-sized units. There is adequate space(of about 36 acres)in the Bela industrial area and upon 

upgrading the estate through IID like schemes; many processing units may be located there. There 

is evidently no need to work on yet another specific and dedicated industrial estate in the short 

and medium term context particularly in the absence of any such feasible land with the ULB. This 

is also because land from a large number of closed units in BIADA may be recovered and offered 

Final Report 

11-1


to start ups where necessary. The latter limitation also restricts potential to develop a commercial 

complex or a „regional rural market‟ in the area. The PPP approach adopted by the ULB in case of 

“the Park Hotel” may be kept as an option to other private stakeholders. 

4. Interventions for reducing constraints in the business environment are deliberated in the CBP in 

detail for 3 value-chains namely litchi, lac bangle and “cloth” which will have positive impact on 

the livelihood of tens of thousands of existing and potential populace of the city. Some of these 

interventions are generic and are quite appropriate to stakeholders in other value-chain segments 

in the city. In fact, the entrepreneurship and cluster value-chain interventions and capabilities 

evolved among stakeholders in the region through implementation of the CBP could be up scaled 

and also subsequently replicated in other value-chains. 

The CBP also envisages capacity building and evolution of a cadre of appropriately trained 

Entrepreneurship-trainers and Cluster value-chain Development Agents who may work on a range 

of other value-chains as per their own mandate/ needs of stakeholders. These facilities are 

expected to leverage the wide range of available incentives and schemes of the central and state 

governments 

11.2 Municipal (and other) vacant land 

Municipal land records yet to be received by team ICT. BIADA estate has about 36.37 acres of vacant 

land. 

11.3 Public-Private Partnerships in the context of the CBP 

Public-Private Partnerships in the context of the CBP in terms of investment in fixed assets may be 

viewed in terms of: 

Table 11.2: PPP investment options 

Stakeholders 

Litchi value-chain 

Lac value-chain 

“Cloth” value-chain 

Generic for the industrial and 

commercial sector in the city 

PPP investment options 

Establishment of common facility for pulp processing, training, 

testing and packaging. 

Establishment of common facility with design studio and testing 

facility. 

Establishment of common facility with training, design, embroidery 

and range of quality supporting equipment. 

Strengthening infrastructure in the BIADA estate to resolve 

electricity and water logging constraints. 

***** 

Final Report 

11-2

12 CBP IMPLEMENTATION PROCESS 


The CBP implementation process will hinge on the facilitator and catalytical role of an Entrepreneur 

Development Centre (EDC, that is, basically a programme office) manned by a team of four 

professionals. The team will comprise a CBP Programme Manager, an entrepreneurship and cluster 

value-chain development specialist, a programme associate and an office administrator. 

Over a 3 year CBP implementation period the EDC will undertake/facilitate the following: 

1. Trainers training of EDP trainers. 

2. Training of Cluster Development Agents. 

3. Conception and structuring of various common facilities and industrial parks/physical 

infrastructure envisaged in the CBP and as may evolve over implementation 

4. Technical Assistance (TA) over implementation of entrepreneurship and cluster value chain 

interventions as also those related to vendors and facilitating effective approval mechanisms. 

5. Co-ordinate synergised initiatives by the different stakeholders involved in each of the 

identified projects, as well as other projects that may evolve over implementation. 

12.2 Structuring and implementation of the city business plan 

The critical projects identified in terms of “Hard” and “soft” interventions are tabulated below. The 

table summarises critical issues in terms of projects identified, potential partnering 

institutions/stakeholders, alignment with Central and State Government schemes (and funding 

requirements), municipal (and, other) land leveraging plan, time frame and the envisaged role of the 

EDC in this context. The feasible vendor and approval systems related interventions have been 

exemplified in chapters 9 and 8 respectively. 

For adequate rehabilitation of street vendors, the Task Force will require to plan, implement and 

monitor a census of street vendors before making regulations for the street vendor authorization 

system and demarcation and declaration of vending zones, restricted vending zones and no vending 

zones in the city and prioritization of allotment of stalls/kiosks to SCs/STs, physically challenged, 

economically weaker, poor and vulnerable people and be responsible for all other aspects of the 

implementation of the Bihar Govt. Street Vendors Policy, 2011. They will be considered on priority 

basis for EDP programmes. 

Evidently, there is no need for separate budgetary outlays on these fronts. Also, the trainers trained as 

per the CBP implementation plan below, will also be groomed to assist / facilitate securing of 

business approvals. 

Final Report 

12-1


Table 12.1:CBP structuring and implementation 13 

Presently/potentially 

Projects 

Potential 

partnering 

Alignment with Central and 

Municipal (and 

Time- 

Role of the EDC* 

competitive 

identified 

institutions 


other) land 

frame 

industry/business 

(Indicative 

/stakeholders 

(vis-à- 

Programmes (indicative 

leveraging plan 

sectors 

project cost) 

vis the ULB/SPUR- 

funding sources) 

DFID) 

Litchi value-chain 

Establishment of 

MSME-DI, DIC, Lead 

PPP scheme of the Ministry of 

Land requirement 

Y1,Y 

Provision/facilitation 

a common facility 

Bank, Litchi Research 

MSME /DC-MSME – MSE- 

is 1 acre but ULB 

2 

of training and TA 

for 

pre-cooling, 

Centre, Chamber of 

CDP (Rs. 810 Lakh); ideally a 

has no land to 

(Rs. 10 Lakh)* 

testing, 

training, 

Commerce, 

cluster 

contribution of Rs. 90 Lakh 

offer; negotiation 

pulp 

processing 

association, SPV of the 

from the State Government is 

is on with 

and packaging on 

cluster 

value-chain 

appropriate, but necessary 

BIADA and the 

PPP basis (Rs. 

stakeholders 

policy is yet to be evolved; 


900 Lakh) 

Ministry of FPI and Ministry of 

by 

value-chain 

Commerce and industry, 

stakeholders 

schemes may also be leveraged, 

if necessary; option under state 

government scheme for food 

13 Cost outlay marked with an asterisk would have to be contributed from SPUR-DFID sources. 

Final Report 

12-2


processing unit albeit at lower 

investment subsidy also exists. 

Lac value-chain 


MSME-DI, DIC, Lead 



Y1,Y 



Bank, 

Chamber of 


is 0.5 acre but 

2 


for 

testing, 

Commerce, 

lac 

CDP or cluster scheme of the 

ULB has no land 


training 

and 

entrepreneur‟s 

DC-Handicrafts (Rs. 100 Lakh); 

to offer; private 

designing on PPP 

association, SPV of the 

ideally a contribution of Rs. 10 

land 

within 

basis (Rs. 100 

cluster 

value-chain 

Lakh from the State 

Municipal limits 

Lakh) 

stakeholders, 

Lac 

Government is appropriate, but 

or other govt. 

Research 

Centre, 

necessary policy is yet to be 

land may be more 

Ranchi 

evolved. 

feasible 

Cloth value-chain 


DIC, Lead Bank, 



Y1,Y 



Textiles 

Committee, 


is 1 acre but ULB 

2 


for 

training, 

Mumbai, Chamber of 

CDP (Rs. 720 Lakh); ideally a 

has no land to 


design, 

Commerce, SPV of the 


offer; negotiation 

embroidery 

in 

cluster 

value-chain 

from the State Government will 

is on with 

garmenting 

on 

stakeholders, 

MSME- 

be appropriate, but necessary 

BIADA and the 

PPP basis (Rs. 

DI 

policy is yet to be evolved; 


800 Lakh) 

Ministry of Textiles schemes to 

by 

value-chain 

be also explored. 

stakeholders 

Generic 

Final Report 

12-3


interventions 

Strengthening 

BIADA estate industry 

Scheme of the DC-MSME – IID 

BIADA Land 

Y1,Y 


industrial 

association, DIC, Lead 

(Rs. 600 Lakh); ideally a 

2 


infrastructure 

Bank, 

Chamber of 



(redressing 

Commerce, 

SPV of 

from the State Government and 

power supply and 

stakeholders, BSEB 

Rs. 100 Lakh from industry will 

water logging 

be appropriate. 

constraints) in the 

existing BIADA 

estate (1000 

Lakh) 

Entrepreneurship 

DIC, Lead Bank, Litchi 

Preferably, trainer‟s training and 

N.A. Y1 Provision/facilitation 

and skill training 

Research 

Centre, 

cluster development training 

of training followed 

Chamber of Commerce, 

funded by SPUR-DFID; 

by hand-holding TA 

cluster 

association, 

subsequent EDPs and cluster 

over intervention with 

SPV of the cluster 

development interventions in the 

more emphasis on 

value-chain 

field to be financed under State 

intervention 

in 

stakeholders; 

NGOs; 

and Central Government 

identified key value- 

IED-Patna; 

Vendor 

schemes (e.g., ongoing 

chains (Rs. 25 Lakh 

Association; 

local 

programmes implemented by 

for each of the 

industrial 

training 

IED-Patna and MSME-DI, 

programmes or total 

institutes, Government 

Muzaffarpur etc.- with marginal 

Rs. 50 Lakh)*: 

polytechnic, BIADA 

leveraging funds to be brought 

-Trainer‟s training for 

Final Report 

12-4


by the SPUR-DFID) 

entrepreneurship 

trainers 

-Cluster Development 

Agents training 

The capacity building and soft intervention programme vis-à-vis evolving new enterprises as well as strengthening existing cluster value-chains may be 

pursued by the EDC over the first year of interventions and the hard interventions involving creation of fixed assets in the second and third years. 

12.3 Task Force Functional Mechanism 

The Task Force has been formed as per the direction of the Principal Secretary, Urban Development and Housing Department. The mandate of the Task 

Force is to advice, guide, assist and monitor the consultants in preparation of CBP as well as implementation of the CBP at local level. Under the CBP the 

Task Force has been proposed as a platform which will effectively steer the process of CBP implementation. It is proposed that at the time of implementation, 

the Task Force will consider and endorse all implementable projects envisaged by the proposed EDC/ enterprise and institutional stakeholders etc.. The 

proposed institutional structure of Task Force is given in figure 12.1. 

Final Report 

12-5


Figure 12.1: Task Force Functional Mechanism 

Mandate 

Consider and prioritize/select 

Projects 

Recommend Projects to the 

State and Centre 

Advice/guide implementation 

Monitor and evaluate project 

implementation 

Proposal Preparation by 

EDC/SPUR/Nodal 

Agency/Organization 

Task Force 

Review of Project Proposals 

Members 

DM, Chairman 

Mayor, MMC, Dy. Mayor 

Other members 

Endorsement of Project Proposals to 

relevant central government/ state 

government 

***** 

Final Report 

12-6

Annexure 1.1: Checklist of Information Sources and Needs 

(Collected through FGDs, individual consultation and secondary data compilation in each city) 

Information 

Information Needs 

Sources 

District - List of registered MSE units in the (a) city and adjoining areas, and (b) district 

Industries (2005-6 to 2010-11) 14 

Centre - Profile of registered units: Name of the contact person; name and address of the 

unit; product manufactured/services offered; major raw material used and its 

source; installed capacity; investment (ideally in plant and machinery); turnover, 

number of employees, major markets catered to in geographic and segment terms 

- Industrial policy; specific incentives offered 

- Information on sick and closed units How many of registered units have closed 

Has any initiative been undertaken for rehabilitation of sick units; detail 

- Which are the industrial units and sectors with potential and providing maximum 

employment to urban manpower What are their constraints with reference to 

factor and demand conditions How may these constraints be resolved 

- Which are the State Govt. / Central Govt. programmes and schemes in which 

DICs are involved (conduct of EDPs e.g., PMEGP, skill development, common 

facilities, industrial infrastructure); What is DICs role other than registration (for 

e.g. training of candidates selected under PMEGP, preparation of business 

plans/DPRs for candidates, facilitation in securing clearances for start-up etc.) 

What are the factors constraining DICs role; Have PMEGP targets been 

achieved, if not why 

- Which are the service providing institutions facilitating EDP training, 

preparation of business plans/DPRs What are the constraints in this context 

- List clearances required prior to start-up (land authority/municipality, NOC from 

the PCB, electricity and water supply department, building plan approval etc.); 

typical time required for each of the clearances; how may time required be 

reduced 

14 Unless otherwise specified, all information needs indicated in this check-list has reference to data vis-à-vis (a) 

concerned city and adjoining regions, and (b) to the extent conveniently available, concerned district (as some 

value-chains extend beyond urban regions into the rural hinterland). Also, in some cases (e.g., credit flows by 

financial institutions), district level data alone would have been formally compiled and city level data will have 

to be culled on the basis of expert opinion. 

Final Report 

i


ULB 

(Municipal 

Adm.) 

- Has e-filing facility of MSE registration been established Why not 

- List of licensed commercial and industrial establishments located in areas under 

the ULB (2005-6 to 2010-11) 

- Land and area mapping vis-à-vis vendor zones; vacant and unoccupied land 

within the ULBs jurisdiction 

- Recommendation of sites that may be developed as vendor zones, or offered for 

commercial and also for industrial activities on PPP basis or otherwise; what are 

the development needs, if any, in these sites 

-- Information on sick and closed establishments How many licensed operations 

have been closed Have any initiatives been undertaken for rehabilitation of sick 

units; details 

- Which are the commercial units and sectors with potential and providing 

maximum employment to urban manpower in the city and adjoining areas What 

are their constraints with reference to factor and demand conditions How may 

these constraints be resolved 

- Which are the State Govt. / Central Govt. programmes and schemes related to 

enterprise start-up and livelihood of the urban poor in which ULBs are involved 

(conduct of EDPs e.g., SJSRY, skill development); what is the ULBs role other 

than licensing (for e.g. provision of land on the basis of PPP for commercial 

activities such as for hotels, facilitation in securing clearances for start-up etc.) 

What are the factors constraining the ULB‟s role; have SJSRY targets been 

achieved, if not, why 

- List clearances required prior to start-up (land clearances from the ULB, NOC 

from the PCB, electricity and water supply department etc.); typical time required 

for each of the clearances; how may time required be reduced 

Lead Bank 

/Commercial 

banks; KVIC- 

B 

- Credit-deposit ratio of concerned financial institution/s; direction of credit in 

broad percentage terms (2010-11) 

- City and district-wise credit to MSME and larger industrial sector – proportion; 

break-up of sector-wise credit (2010-11) of concerned financial institution/s; 

What per cent has been sanctioned towards agro-food enterprise (including for 

cold stores and for warehouses How much of outstanding is oriented towards the 

priority sector How much resources have been the lent to the priority sector 

- Extent of propagation (off-take and direction of credit in 2010-11) of Central 

and State Govt. schemes: CGTMSE - How many units financed and in what 

sectors, PMEGP – How many start-ups vis-à-vis targets and in what sectors; How 

Final Report 

ii


many projects have received subsidy / assistance from Central and State Govt. 

schemes such as those related to food processing 

- Typical rate at which term loans and working capital loans are offered – floor 

and ceiling rates (and typical lending terms for MSMEs – repayment period) 

- Amount of lending by FIs to MFIs for onward lending to SHGs in the city and 

district (broadly, what per cent of such SHGs are into income generating 

activities What activities do they successfully undertake) 

- Which are the industrial units and sectors and commercial activities with 

potential and providing maximum employment to urban manpower What are 

their constraints with reference to factor and demand conditions as well as with 

reference to facilitating services like ED training and business plan preparation 

How may these constraints be resolved 

Government 

Polytechnic/ 

Govt. and 

private 

Vocational 

and Industrial 

Training 

Institutes 

- Number of such Government and private institutions in the region 

- Kind of trades taught; Number of students churned out every year in different 

trades 

- Nature of jobs secured by trainees; entrepreneurial activities typically pursued, if 

any 

- Extent of ties with State and Central Govt. institutions, programmes and schemes 

(such as with the NSTEDB/DST to establish ED cells; Technology Business 

Incubators; joint programmes with the MSME-DI and DIC) 






NABARD 

(District 

Managers)/ 

SIDBI(Patna) 

- Extent of refining local banks for lending under different schemes; Amount of 

lending to MFIs and sponsoring of NGOs and ED institutions (for what activities) 

in the city and adjoining regions/district in 2010-11 

- Mix of “programme and development” activities in the city and adjoining 

regions and district (if any) in 2010-11 

- Extent of off-take (investment inflows) in the city and adjoining regions and city 

vis-a-vis Central and State Govt. schemes (e.g., related to cold stores, 

warehousing, industrial infrastructure, Credit Linked Capital Subsidy – which 

sectors/value-chains) in 2010-11 

Final Report 

iii


MFIs/NGOs; 

ED 

institutions 

State 

Investment 

Promotion 

Board (Patna) 

Bihar 

Industrial 

Area 

Development 

Authority 

(BIADA) 

- Number and profile of units directly financed (which sectors, and what activities) 

in 2010-11 



their constraints (also) with reference to factor and demand conditions as well as 

with reference to facilitating services like ED training and business plan 

preparation How may these constraints be resolved 

- Typical activity mix – e.g., evolution of SGHs and EDP training to PMEGP 

candidates; annual turnover (2010-11) 

- Volume of lending; lending mix; source of funds 

- Extent of ties with Central and State Govt. institutions and schemes to conduct 

activities 






- Volume and direction (which sectors and activities) of inward and state-level 

investment flows 

- Investment Policy; specific incentives offered 






- Number and size (in acres) of industrial estate/s; Are they within municipal 

limits 

- Number of units in the estate, how many of them are in operation and how many 

are closed 

- How much land is occupied and how much vacant 

- Profile of registered (operating) units: Name of the contact person; name and 

address of the unit; product manufactured/services offered; major raw material 

used and its source; installed capacity; investment (ideally in plant and 

machinery); turnover, number of employees, major markets catered to in 

geographic and segment terms 

- What are the facilities offered for enterprises within the estate Continuous 

Final Report 

iv


Academic 

institutions 

NSIC/Export 

Promotion 

Councils like 

APEDA ( 

Patna) 

Industry 

associations/ 

chambers; 

CII-FICCI- 

ASSOCHAM 

(in Patna) 

Utilities‟ 

Departments 

(electricity, 

water, and 

power supply Continuous water supply At what rates and terms are these 

utilities supplied to enterprises in the estate 

- Is there need for upgrading facilities within the estate Specifically, in terms of 

what – e.g., site development to prevent water logging 

- Typically, profile of units that are presently closed (which sector) Did units ever 

take-off or did they close after start-up Why did they close down 

- Any projects undertaken along with Central Govt. or private sector on PPP 

basis Such as with the MoFPI, Ministry of Textiles, Ministry of Commerce and 

Industry, Ministry of Chemicals and Petrochemicals or the Ministry of MSME 

- Any projects set up under PPP basis with the private sector 

- Is there an ED cell at the institution to help evolve an entrepreneurial culture in 

the region Sponsored by whom 

- Any courses on entrepreneurship Pass-outs exploring an entrepreneurial career 

- Extent of ties with Central Govt. schemes (e.g., with DST/NSTEDB) 

- Membership by MSEs in the target cities – how many units Which sectors and 

value-chains 

- Track record of marketing and other assistance offered to MSEs in the target 

cities (market development assistance, vender marketing or vendor development 

assistance etc.) 

- List of registered members 

- Profile of member units: Name of the contact person; name and address of the 

unit; product manufactured/services offered; if possible - major raw material used 

and its source; installed capacity; investment (ideally in plant and machinery); 

turnover, number of employees, major markets catered to in geographic and 

segment terms 

-Activities of the network i.e. chamber or association 

- Ties with different institutions/schemes for activities 





and provision of BDS How may these constraints be resolved 

At what rate is the utility supplied for industrial and commercial use Electricity 

in terms of minimum monthly demand charges and per unit charges for LT and HT 

connections; water in rate per kilolitre 

Final Report 

v


land) 

Bihar 

Renewable 

Energy 

Agency 

Department of 

Agriculture; 

Horticulture 

Department 

for Fisheries; 

related to 

livestock / 

animal 

husbandry 

NGOs 

Renewable Energy Policy 

- Area under different crops; annual output in tonnes and approximate market 

value (2010-11) 

- How many farmers are involved in related activity What has been the extent of 

value-addition and what is its scope 

- Which are the related agro and food based industrial units and sectors and 

commercial activities with potential and providing maximum employment to 

urban manpower even while benefiting stakeholders in the rural 

hinterland/catchment area What are constraints to their development (also) with 

reference to factor and demand conditions as well as with reference to facilitating 

services like ED training and business plan preparation How may these 

constraints be resolved 

- Annual output of different varieties in tonnes and approximate market value 

(2010-11) 

- Which are the related agro-food based industrial units and sectors and 

commercial activities with potential and providing maximum employment to 

urban manpower even while benefiting stakeholders in the rural 

hinterland/catchment area What are constraints to their development (also) with 

reference to factor and demand conditions as well as with reference to facilitating 

services like ED training and business plan preparation How may these 

constraints be resolved 

- Type of activities, location 

- No. of SHGs/JLGs promoted 

- Types SHG trainings and details including curriculum and costs 

- Bank linkage with SHGs and details 

- Income generating activities by SHGs 

- Support from Government schemes/programmes and details including 

items/activities/rates 

- NGO staff strength and expertise 

- NGO brief profile and experience 

- NGO capacity for community mobilisation, and information, education and 

communication (IEC) 

Final Report 

vi


Urban 

Development 

Department, 

GOB / ULBs 

- Partnership and network details 

- Street vending policy, rules and procedures of GOB 

- Vending rules and regulations of ULB 

- License fees for vending, collection procedure & mechanism 

- Details of vending zones 

Final Report 

vii

Final Report 

i 



Annexure 1.2: Discussion Format of the Questionnaire/Schedule administered for Study of 

Enterprises and Activities along a Value-Chain 

A value-chain refers to the range of activities that are undertaken to bring a product or service to the 

market. Value-chain analysis, to be undertaken as part of each CBP will consider most important 

value-chains in a city in which there are a large number of clustered enterprises. 15 Envisaged brief 

value-chain mapping and analysis will involve primary survey of and individual consultation with 

about 20 firms undertaking different activities along the chain. These firms will include principal or 

core enterprises as well as related and supporting enterprises. In addition, over FGDs, the envisaged 

value-chain study will briefly analyse the roles of related institutions and service providers (including 

NGOs undertaking livelihood related interventions), as well as specific constraints vis-a-vis the 

business environment, factor and demand conditions. Such analyses and study will help evolve an 

action plan for upgrading and sustainable growth. The questionnaire/schedule for data collection from 

firms is as follows: 

Questionnaire/Schedule for primary survey of enterprises 

Enterprise profile and profitability 

Name of the firm/entrepreneur; year of commencement of business operation 

What has been the average profitability (Return on Investment) and capacity utilisation of the firm 

Why has performance deteriorated or improved 

Value-accruals 

- What is the cost structure of the enterprise along the value-chain in terms of break-up of annual 

expenses in operation 

- What is the gross value of annual output of the enterprise; and net value accrual to the enterprise 

Production and technology function 

- What are the technology / main equipment employed by the enterprise 

- Which is/are the institution/s and service provider/s offering assistance in terms of technology 

upgrading 

15 Preliminary consultations highlight the importance of the litchi value-chain in Muzaffarpur, the Makhana 

value-chain in Darbhanga, the jewelry value-chain in Sitamarhi and (possibly) paddy in Motihari and Betiah. 

Final Report 

i


- If equipment/process merits further upgrading, why is it not made 

Marketing function 

- What is the market for the firm‟s product/service in geographic and market segment terms 

- Who are the competitors of the firm 

- What is the basis of competition in the market Is it cost, differentiation or niche 

- Which are the main marketing channels Which among them is most profitable 

Procurement 

What are the sources of main and other raw material, and what are the constraints on the sourcing 

front 

Manpower and managerial skills 

- What are labour/managerial skill gaps 

- What are the skill upgrading programmes that labour/management should/can participate in 

- Who does/may offer relevant services 

Finance and capital 

Final Report 

ii


Annexure 3.1 Production of Major Crops in the region. 

City hinterlanddistrict 

Lentil 

Moong 

Darbhanga 2419 4168 

E. Champaran 6604 969 

Muzaffarpur 1262 16,611 

Sitamarhi 4425 2592 

W.champaran 12,998 256 

Zone Total 34789 49510 

Grand Total 128956 116923 


City hinterland-district 

Arhar 

Darbhanga 347 

E. Champaran 932 

Muzaffarpur 405 

Sitamarhi 487 

W.champaran 7101 

Zone Total 16417 

Grand Total 34647 


City hinterland-district Mustard Oil Sugarcane 

Darbhanga 1492 11731 

E. Champaran 453 238612 

Muzaffarpur 4502 50480 

Sitamarhi 1032 86562 

W. Champaran 17,029 2117879 

Zone Total 42729 2117879 

Grand. Total 81574 3854925 

Source: agriculture profile of Bihar state 

Final Report 

i


Name of 

Districts 

Mango Guava Litchi Lemo 

n 

Banana Pineappl 

e 

Papay 

a 

Amla Other 

s 

fruits 

Darbhanga 114025 4980 5768 5577 74362 - 1098 260 11156 

E. 

85579 1676 13169 11623 41203 - 840 437 9950 

Champaran 

Muzaffarpu 90304 11528 54322 4962 219284 - 1692 806 10616 

r 

Sitamarhi 45723 5747 15345 1981 26528 - 644 362 6552 

W. 67637 13431 14945 12497 43272 - 1156 568 11118 

Champaran 

Zone Total 750640 78040 17026 

6 

63578 788327 - 13795 5226 11545 

7 

Grand. 

Total 

132980 

3 

22919 

0 

21691 

8 

12809 

0 

137355 

4 

119484 33610 1283 

4 

27933 

7 


Name of 

Districts 

Potato Onio 

n 

Tomat 

o 

Cauliflow 

er 

Cabbag 

e 

Brinjal Okra Chili Bottle 

gourd 

Darbhanga 118468 19076 32314 26834 28076 51333 21251 14018 22145 

E. 185576 43288 41076 34554 28295 35582 34484 13567 28886 

Champara 

n 

Muzaffarp 190599 47037 83220 65504 50080 61513 34933 22301 35771 

ur 

Sitamarhi 107360 23629 33693 21295 16658 26693 13424 7839 20059 

W. 

Champara 

n 

196726 42497 46084 50159 28663 43459 34988 17552 31661 

Zone 

Total 

198691 

3 

30992 

8 

Grand. 503358 94660 

Total 6 4 

504247 488831 315571 496132 31561 16919 27692 

4 7 6 

103719 1043843 676979 118611 74348 45060 

1 

8 9 2 


62521 

7 

Final Report 

ii


Annexure 3.2: Tabulation of BIADA Data 

Sl.No Name of the Unit/Products Nos. of Unit 

Working/ Closed/ Sick/ 

Under Construction 

1 Pressure & Temperature Measuring Instruments 1 W-1 

2 Medical Tablets 1 W-1 

3 Masala Works 1 W-1 

4 Card Board Box Printing 1 W-1 

5 Organic fertilizer 1 W-1 

6 Hosiery Goods 1 W-1 

7 Plastic Bottle, bags 1 W-1 

8 P.V.C Pipes 8 

W-3 

C-2 

UC-3 

9 Agriculture Implements 5 

W-4 

UC-1 

10 Distilled Water 1 W-1 

11 C.I Ingots, Mould 1 W-1 

12 Paraffin Wax 1 W-1 

13 Tube Light fittings 1 W-1 

14 Ricksaw excel, Hand Pump 1 W-1 

15 Wire Nails, Panel Pin 3 

W-2 

UC-1 

16 Cattle Feed, Poultry Feed 19 

W-6 

C-3 

UC-10 

17 Pesticides 3 

W-1 

UC-2 

18 Fabrication of Galvanized Sub-station 1 W-1 

19 Organic Measures 2 W-2 

20 Nail, wire 3 W-3 

21 Cattle Feed & Poultry Feed ** Repeated at Sl No. 16Must be deleted 

22 Prifan 2 W-1 

C-1 

23 Colour 2 W-2 

24 Store 5 W-5 

25 Tobacco Candy 1 W-1 

Final Report 

i





26 Fabrication Gate, Grill, Almirah 2 W-1 

UC-1 

27 Spices 7 W-2 

C-2 

UC-3 

28 Electricity distribution 1 W-1 

29 Vetenary Feed Supplement 1 W-1 

30 Plastic shoes/Chappal 2 W-2 

31 Menthol 1 W-1 

32 Mas Sulphate, Zinc Sulphate, & Micronutrients 3 W-3 

33 Pickle 2 C-1 

UC-1 

34 Snacks/Bhujiya 2 W-2 

35 Polly coupling Tube, Wall Piston 1 W-1 

36 Cast Iron 1 W-1 

37 Hand Pump/Brass Stainer 1 W-1 

38 Domestic Sewing Machine 1 W-1 

39 Hatching Work 1 W-1 

40 Acid Chemicals 3 W-2 

UC-1 

41 Flour 5 W-2 

UC-3 

42 Plywood 1 W-1 

43 PSC Poles 2 W-2 

44 Maida, Suji 3 W-1 

UC-2 

45 Cold Storage 1 W-1 

46 Semi finished Leather 9 W-5 

UC-1 

C-3 

47 Plant Enzyme, Granules, Pesticides 1 W-1 

48 Oxygen Plant 1 W-1 

49 Vermicell 1 W-1 

50 Polly Bag, Sheet Packing Bag 2 W-1 

Final Report 

ii





UC-1 

51 Special Som 

52 Special Smokeless Fuel 1 C-1 

53 Office 3 W-2 

UC-1 

54 Single super Phosphate 2 W-1 

C-1 

55 Composite containers from craft duplex & virgin 

1 W-1 

papers. 

56 Publication House 1 W-1 

57 Food Product 1 W-1 

58 Wood Screw 2 W-1 

C-1 

59 Paints & Varnishes 2 W-1 

C-1 

60 Aluminum Utensil Gomala & Sauspan 2 W-2 

61 Gun Metal, Bushes 2 W-1 

C-1 

62 Plastic goods 1 C-1 

63 Tricycle and Cruches 1 W-1 

64 Makhana Processing 1 W-1 

65 Fly Ash Bricks 1 W-1 

66 Suction Haus 1 C-1 

67 Steel Fabrication 2 UC-1 

C-1 

68 Utensils 1 C-1 

69 Desk Scissors 1 C-1 

70 Candle Grease, Cycle Oil 1 C-1 

71 Rubber Sheet, Hawai Chappal 1 C-1 

72 Candle 1 C-1 

73 Colenatring of cotton cloth 1 C-1 

Final Report 

iii





74 Hume pipe and other concrete products 1 W-1 

75 M.S Angle 2 UC-1 

C-1 

76 Petrol-Pump 1 C-1 

77 Steel Furniture 2 C-1 

UC-1 

78 Valve Regulator for LPG Cylinder 1 C-1 

79 Corrugated paper Board & Boxes 2 W-2 

80 Cycle Ricksaw Parts 3 C-2 

UUC-1 

81 FCI Godawon 1 W-1 

82 Pump House 1 C-1 

83 Canteen 1 W-1 

84 Nylon socks & Nylon Garments 2 C-2 

85 D-Ethyl Oxylate 1 C-1 

86 Enamel Barton 1 C-1 

87 Cola 1 C-1 

88 Paper 1 C-1 

89 Desert Cooler 1 C-1 

90 Hexa amin 1 C-1 

91 Chemicals 1 W-1 

92 Pharmacy 1 C-1 

93 Wormi Compost 1 C-1 

94 Super Enamelated Wire 1 C-1 

95 Crushed Bones, organic mixture fertilizer 1 UC-1 

96 Seed Processing 1 UC-1 

97 Disposable containers 1 UC-1 

98 Offset Printing Press 2 UC-2 

99 Sheet & Carry bag 1 W-1 

100 Plastic sutli 6 W-4 

UC-2 

101 Detergent Powder 1 UC-1 

102 Shopping Mall & Multiplex 2 UC-2 

Final Report 

iv





103 Plastic scrap processing 1 UC-1 

104 C.I casting & H.D.E.P Pipes 4 W-1 

UC-3 

105 Fruit Processing 1 UC-1 

106 Packed Drinking water 1 UC-1 

107 Biscuit 1 W-1 

108 Disposable Glass & Plates 6 W-1 

UC-5 

109 PP, HDP, LD, granuals LD sheets, PP strips 1 UC-1 

110 LDPE-Pipe 1 UC-1 

111 Machine Vices 1 UC-1 

112 Bio-Medical Waste 1 UC-1 

113 Juice Pulp 1 UC-1 

114 Service Center 1 UC-1 

115 Solar Battery Inverter 1 UC-1 

116 Agarbatti 1 UC-1 

117 Inverter & UPS 1 UC-1 

118 Voltage Stabilizer 2 UC-2 

119 Ayurvedic Medicine 2 UC-2 

120 Day old chiks 1 UC-1 

121 Rice Polishing 1 UC-1 

122 Plant Growth Promoters 1 UC-1 

123 Mono filament yarn 1 W-1 

124 Litchi Juice, Pulp cane 1 W-1 

125 Open Land 4 W-2 

C-2 

126 Shop 1 W-1 

Source: BIADA-Muzaffarpur 

Final Report 

v

Final Report 

vi 



Annexure 3.3 Summary of DIC data of Mushahari Block, Muzaffarpur 

Type of Industry 

Number of 

Units 

Investment Cost (in 

Rs.) 

Ownership Status of 

Land 

Agarbatti 

Manufacturing 15 1,791,000 7 out of 15 Rented 

Animal Feed 

Supplement 1 7,000 Rented 

Assembling of Pump 

Set of Diesel Engine 1 5,000 Rented 

Assembling of 

Rickshaw 1 395,000 

Assembling of 

Stabilizer, Inverter & 

Charger 3 227,000 2 out of 3 Rented 

Assembling of 

Stabilizer, Water Level 

Controller, Transformer 

(Domestic) 2 36,000 Rented 

Atta, Besan , Sattu and 

Edible Oil Mfg, Spices 22 10,172,000 6 out of 22 Rented 

Bag Mfg 1 397,000 

ianda sans Sanitary 

Napkins Mfg 1 406,000 

Boutique & Beauty 

Parlor 5 275,000 4 out of 5 Rented 

Cable Network & 

Cabeling of Telecom 2 541,000 Rented 

Candle Mfg 2 49,000 1 out of 2 Rented 

Catering Services 1 375,000 

Cold Storage Service 3 84,650,000 

Computer Designing & 

Printing 6 1,055,000 3 out of 6 Rented 

Cool Herbal Oil 1 210,000 

Data Processing 5 675,000 2 out of 5 Rented 

Designing 

&Development of 2 360,000 1 out of 2 Rented 

Final Report 

i


Number of 




Units 

Rs.) 

Land 

Websites 

Electric Motor, 

Generator, transformer 

Repair (Job work) 1 20,000 

Electronic Choke and 

CFL Bulb Assembling 2 22,000 Rented 

Embroidery & 

Readymade Garments 3 276,000 2 out of 3 Rented 

Finishing of Glasses 1 395,000 

Fridge and AC 

Repairing 4 232,000 

Furniture 

Manufacturing 13 757,000 10 out of 13 Rented 

Gate Grill , Shutter, 

Rolling Shuttera Mfg 18 2,011,000 13 out of 18 Rented 

Hardware Repairing & 

Data Processing 1 53,000 Rented 

Beauty Products 2 81,000 

Hotel & Restaurant 

Services 2 866,000 

Rented(Mentioned as 

Lease) 

Ice Candy & Ice Cream 

Mfg 1 285,000 Rented 

Kasth Upskar Mfg 1 15,000 Rented 

Lakh Bangel Mfg 3 276,300 1 out of 3 Rented 

Laminate Paper Plate 1 300,000 

Leth (Job Work) 7 930,000 6 out of 7 Rented 

Making & Repair of 

Silver Jewelly 7 1,229,000 2 out of 7 Rented 

Map & Design Estimate 

& Project Profile 1 250,000 

Marbal Cutting & 

Polishing 1 95,000 

Mfg of Compost 1 205,000 

Final Report 

ii



Number of 

Units 


Rs.) 


Land 

Mfg of Papad, Bari & 

Pickels 7 2,634,000 

Mfg. & Repairing of 

Music Equipments 1 105,000 

Mfg. & Repairing of 

Steel Almirah 3 127,400 1 out of 3 Rented 

Mfg. Lichi Pulp & Lich 

Hole& Juice 2 21,500,000 

Mfg. of Bag & Sheet 

Cover 1 20,000 Rented 

Mfg. of Bakery 

Products 1 45,000 Rented 

Mfg. of Battery Plates 1 60,000 Rented 

Mfg. of Box of 

Honeybee fly 2 142,000 

Mfg. of Cane & Bambu 

Furniture 1 115,000 

Mfg. of Card Board 

Boxes 1 131,000 

Mfg. of Chocolate 1 209,000 

Mfg. of Clay Statue 1 127,000 

Mfg. of Decoration 

Items 1 7,500 Rented 

Mfg. of Decorative 

Glass 1 145,912 Rented 

Mfg. of Distlled Water 3 673,000 

Mfg. of Enamel Paint 1 160,000 

Mfg. of Envelope & 

Printing Work 1 331,000 Rented 

Mfg. of Fruit Juice 1 122,500,000 

Mfg. of Grader,Sizer, 

Elmator,Blower& 

Indent Jali 1 673,000 Rented 

Final Report 

iii



Number of 

Units 


Rs.) 


Land 

Mfg. of Greece, Welt 

Paster and Cycle Oil 1 10,000 Rented 

Mfg. of Hosiery Goods 1 114,000 

Mfg. of Ice candy & Ice 

Cream 3 1,008,000 2 out of 3 Rented 

Mfg. of Iron Hooks, 

Plunjor Rod & 

Rickshaw Spoke 1 535,000 

Mfg. of Lahthi 9 916,300 6 out of 9 Rented 

Mfg. of Lakh ki Bhatti 1 144,000 

Mfg. of Machchhardani 1 10,000 Rented 

Mfg. of Metalic Seed 

Bean, Seed Treatment 

Drum & Agriculture 

Implement 1 10,000 

Mfg. of Micro Liquid 

Fertiliser 1 276,000 

Mfg. of Mishri 1 371,000 

Mfg. of Murabba, 

Candy & laddu 2 372,000 1 out of 2 Rented 

Mfg. of Mustard Oil 1 100,400 

Mfg. of Optical Glasses 1 84,000 Rented 

Mfg. of Organic 

Fertiliser 1 40,000 Rented 

Mfg. of Part of Table 1 543,000 

Mfg. of Perfumes 1 30,000 Rented 

Mfg. of Pop Corn 2 377,500 1 out of 2 Rented 

Mfg. of PVC Junction 

Box, T Albow & Sandal 1 310,000 

Mfg. of Register, 

Copies 4 770,000 1 out of 4 Rented 

Mfg. of Rickshar & 

Cycle Skop 1 3,100,000 

Final Report 

iv



Number of 

Units 


Rs.) 


Land 

Mfg. of Sauce, Fruit 

Jam, Pickles, Noodles & 

Vinegar 1 2,960,000 

Mfg. of Stabliser, 

Battery Charger & 

Inverter 1 10,000 Rented 

Mfg. of Steel Almirah 1 1,025,000 

Mfg. of Trailer 1 126,000 

Mfg. of Trifla Choorn & 

Amla Juice 1 180,000 

Mfg. of Truck & Bus 

Body 9 1,047,000 7 out of 9 Rented 

Mfg. Of Vermi 

Compost 2 315,000 

Mfg. of Vin Bag 1 25,000 Rented 

Mfg. of Wooden Switch 

Board 1 2,000 Rented 

Mfg. of Wooden 

Upaskar 6 298,000 4 out of 6 Rented 

Mfg. of Woolen Carpet 1 121,000 Rented 

Mobile Repairing 1 40,000 Rented 

Moody Mfg 1 80,000 Rented 

Nail Polish Mfg 1 206,000 

Namkeen and Puf Mfg 2 2,903,000 

Offset Printing 1 286,000 Rented 

Offset Printing Press 1 1,110,000 Rented 

Packaged Drinking 

Water 1 8,900,000 

Packaging of Machine 

Oil 1 360,000 

Packing of Battery 

Water & Battery Acid 1 22,000 Rented 

Packing of Tea 1 85,000 Rented 

Painting, Poster (Job 1 13,000 

Final Report 

v



Number of 

Units 


Rs.) 


Land 

work) 

PCC Footwear and 

Paidal Mfg. 1 405,000 

Pickle Mfg 1 15,000 

Plastic Bottle Mfg 2 470,000 Rented 

Processing, Production 

& Packaging of Honey 2 1,451,000 

Pulse Processing 1 485,000 

Rajai, Pillow Mfg 1 24,000 Rented 

Readymade Garments 18 2,287,000 7 out of 18 Rented 

Refilling of Perfume 1 125,000 

Repair Tire & Tubes 1 12,000 Rented 

Repair works of Motor 

Cars 1 10,000 Rented 

Repairing & Winding of 

Electric Motor 1 10,000 Rented 

Repairing of Cycles 1 1,000 Rented 

Repairing of Domestic 

Electrical & Electronics 

Items 1 15,000 Rented 

Repairing of Electric 

Motor, Generator & 

Transformer and other 

items 4 73,000 Rented 

Repairing of Electronic 

IT and 

Telecommunications 1 75,000 Rented 

Repairing of Four 

Wheelers 1 65,000 Rented 

Repairing of Mobiles 1 30,000 Rented 

Repairing of Motor Car 2 55,000 Rented 

Repairing of 

Motorcycle 4 226,000 3 out of 4 Rented 

Final Report 

vi



Number of 

Units 


Rs.) 


Land 

Repairing of Nozzle 

Grinding & Fuel Pumps 1 478,000 

Repairing of Rickshaw 1 1,000 Rented 

Repairing of Shoes 1 1,000 Rented 

Rice Production 2 1,611,000 

Rly Wagon Mfg 1 50,120,535 

Screen Printing 2 261,000 1 out of 2 Rented 

self Carbon Mfg 1 6,000 Rented 

service for Citizens 1 514,000 

Service of Sweets, 

Bakery & Catering 1 371,000 

Sign Boar, Painting (Job 

Work) 1 450,000 

Small industry of 

Spices, Besan and 

Daliya 1 100,000 Rented 

Steel Number Plate, 

Mudguard, Engine Plate 

and Almirah 1 673,000 

Sugar Confectionery 1 450,000 

Sweet Box and Gift 

Pack Box Mfg 2 693,000 

Steel Trunck and Boes 

Mfg 1 25,000 Rented 

Tailoring (Job Work) 3 49,000 2 out of 3 Rented 

Tractor 7 DG Set repair 1 27,000 

Tyre Tube Malknizing 1 34,000 

Vehicle Repair 2 81,000 

Vermi Compost Mfg 1 405,000 

Web Designing, 

Software Development 

& Hardware Solutions 1 120,000 Rented 

Winding and Printing 1 674,000 Rented 

Work Audio-Video 1 236,374 

Final Report 

vii



Number of 

Units 


Rs.) 

Graphy 

Not Classified 1 8,000 

Source: DIC 


Land 

Final Report 

viii


Annexure 3.4: City Business Catalogue of Muzaffarpur 

Final Report 

i


Annexure 4:1City Business Plan: Perceptions vis-à-vis investment attractiveness indicators 

(Muzaffarpur cluster) 

This questionnaire seeks to elicit your perception vis-à-vis investment attractiveness of the city. The questions 

comprising 56 indicators are broadly grouped into 7 broad categories such as (a) Quality of physical and social 

infrastructure (b) Simplicity of rules and procedures (c) Orientation and capacity of the Government (d) 

Responsiveness of the Government (e) Property rights and ease of transactions (f) Corruption (g) City 

competitiveness for attracting private investment. 

Please rank the relevant indicator as (1) if your perception/response vis-à-vis the indicator is “simple/of no 

concern at all/very good”; (2) if your perception/response vis-à-vis the indicator is “relatively simple/of little 

concern/good”; (3) if your perception/response vis-à-vis the indicator is “average”; (4) if your 

perception/response vis-à-vis the indicator is “somewhat difficult/of some concern/bad”; (5) if your 

perception/response vis-à-vis the indicator is “very difficult/of significant concern/very bad”. 

-------------------------------------------------------------------------------------------------------------------------- 

Name of the respondent: 

Nature of business (manufacture/services/trading, retail, wholesaling etc.): 

Address of the business venture/s: 

Profile of the respondent (vis-à-vis the business community. E.g., President of the 

Chamber of Commerce, etc.): 

------------------------------------------------------------------------------------------------------- 

A. Investment Climate 

I. How good is the quality of inputs and infrastructure available for your business Rank/Score 

Smooth roads 

Stable electric supply 

Availability of banking facilities 

Adequate water availability 

Well-trained work force 

Telephone connections 

Internet connection 

Disciplined work force 

Overall 

B. Simplicity of Rules and Procedures 

I. How simple do you find the rules and procedures related to setting up a new 

manufacturing facility 

Accessing Land 

Rank/Score 

Final Report 

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Accessing Water 

Accessing Electricity 

Telephone (land line) connection 

Drainage/sewerage 

Getting other permissions 

Overall 

II. How simple do/did you find the rules and procedures related to labour and 

employees 

Rank/Score 

Work conditions for labour 

Employee provident fund 

Other employee welfare regulations 

Hiring new employees 

Firing non-performing employees 

Overall 

III. In Bihar, how simple do you find the rules and procedures related to: 

Rank/Score 

Environmental regulations 

Transport regulations 

Dealing with other regulations 

Dealing with various inspectors 

Overall 

IV. How simple do/did you find the rules and procedures related to the payment of 

taxes: 

Income tax 

Central excise 

Sales tax/VAT 

Rank/Score 

State excise 

Other state-level taxes 

Overall 

C. Cost in terms of time for doing business 

I. How long in your opinion does it take for receiving the following clearences: No. of days 

Land Allotment 

Building plan approval 

Issue of trade license 

NOC from PCB 

Electricity connection 

Registration with DIC (if applicable) 

D. Orientation of the Government 

I. Do you think the State Government and its constituents are oriented towards: Rank/Score 

Final Report 

ii


Changing/reforming for a better future 

Overall government functional efficiency 

Political leadership 

Senior bureaucracy 

Middle/Lower bureaucracy 

Overall 

II. Do you think the Local Government and its constituents are oriented towards: 

Changing/reforming for a better future 

Overall government 

Political leadership 

Rank/Score 

Senior bureaucracy 

Middle/Lower bureaucracy 

Overall 

E. Responsiveness of the government 

I. How responsive is the State Government to your commercial/business needs: Rank/Score 

Ease of meeting relevant government functionaries 

Getting a patient hearing 

Speed of decision-making 

Fair resolution of differences with the government 

Overall 

II. How responsive is the Local Government to your commercial/business needs: 

Rank/Score 

Ease of meeting relevant government functionaries 

Getting a patient hearing 

Speed of decision-making 

Fair resolution of differences with the government 

Overall 

F. Corruption 

I. Approximately how often are you involved in providing any of the following benefits 

to State Government or semi-government functionaries 

Rank/Score 

Giving money/gifts for general good relations 

Giving money/gifts in lieu of work to be done 

Getting employment to favorites of politicians, bureaucrats etc. 

Providing other benefits to their household members 

Paying juniors to meet senior government functionaries 

Overall 

II. Approximately how often are you involved in providing any of the following benefits 

to Local Government or semi-government functionaries 

Rank/Score 

Giving money/gifts for general good relations 

Giving money/gifts in lieu of work to be done 

Getting employment to favorites of politicians, bureaucrats etc. 

Final Report 

iii


Providing other benefits to their household members 

Paying juniors to meet senior government functionaries 

Overall 

F. Property rights and Security 

I. Please rate in terms of how true you consider the statement to be: Rank/Score 

Intellectual property rights are protected highly in my 

State 

Immovable property is safe from encroachments & illegal occupation 

Personal security of business persons 

Overall 

G. Demand Conditions 

I. Please rate in terms of how true you consider the statement to be: Rank/Score 

Demand for goods and services has improved 

Overall 

Rank/Score = Between 1 to 5 from Best to Worst 

Final Report 

iv


Annexure 7.1 Trainers training in Entrepreneurship Development and Faculty Development 

Programme 

Concept: In order to fulfill their mandate, public and private service providers like the DIC, 

MSME-DI, NGOs, IED-Patna and ULB require capacity-building on several administrative as 

well as academic aspects vis-à-vis conducting result-oriented EDPs. In summary, they should 

be trained to: 

Identify and select potential entrepreneurs. 

Identify business opportunities and link them with potential entrepreneurs 

Leverage or provide basic technical inputs in related value-chain activities 

Prepare appropriate and bankable business plans for individual enterprise 

Provide basic and practical management inputs to trainees 

Implement result-oriented entrepreneurship Development Programmes 

Conduct trainer‟s-training programmes for entrepreneurship development 

Coverage: The 10 day full time training inputs (for 20 trainees per batch) may be considered 

in terms of three sub-themes: introduction to administrative, technical and academic inputs; 

the methodology for business opportunity guidance and preparing a business plan; and the 

third, covering project implementation and management. The inputs are envisaged to provide 

trainees with necessary exposure to organizing integrated and result oriented EDPs, and the 

administrative modalities, as well as technical and academic content in the training 

component of such EDPs.The capacity-building of trainees will also be on areas ranging from 

the promotion of an EDP and selection of candidates on the basis of their personality-traits as 

well as professional skills. Training should also emphasize tools vis-à-vis business 

opportunity identification, with specific reference to projects related to important valuechains. 

The coverage of topics range from: preparation of a business plan; profiling of support 

institutions and service providers whose services may be availed of; market survey 

methodology; techno-economic parameters of a plan; to investment appraisal techniques. A 

relevant input in this perspective is the capital and cost structuring of an enterprise. The 

coverage of topics would also include important tools related to project implementation and the 

regulatory aspects related with regard to enterprise start-up and management; basic accounting 

systems, marketing management in SMEs and quality management and Management 

Information Systems (MIS) related techniques. These topics could help trainers counsel 

entrepreneurs intensively over the start-up and teething stage of an enterprise. 

Final Report 

i


Annexure 7.2 Cluster Value-Chain Development Agent (CDA) Training Programme 

Cluster value-chain Development Agent (CDA) training programme 

Concept: In order to fulfill their mandate, the public and private service providers require 

capacity-building on various field-level tools of intervention. They need imbibe a wide frame 

of reference in terms of successful experiences elsewhere. In summary, they should be trained 

to:- 

‣ Develop and retain a holistic and integrated value-chain perspective to interventions 

towards regional industrial development 

‣ Conduct diagnostic studies of value-chains and clusters 

‣ Evolve and strengthen industry associations, NGOs and MFIs 

‣ Evolve networks and SPVs of firms and other stakeholders, prepare and implement 

common business plans 

‣ Promote industry-institution linkages 

‣ Provide Business Development Services (BDS) to enterprises 

Coverage: Coverage of core inputs under this 10 days full time training (for 20 trainees per 

batch) programme may be visualised to comprise: the methodology of interventions; the 

mapping and diagnosis of value-chains (of potential as well as existing clusters); field – level 

instruments for intervention in existing clusters, with emphasis on those addressing factor 

constraints; and an elaboration on the methodology of inducing the evolution of clusters. 

Final Report 

i


Annexure 7.3 Progress Report of PMEGP 2010-11, Up to October 2010 

Target 

Application Sanctioned 

Margin 

Project 

Margin 

Money 

Amount 

No. of Money (Rs. 

involved 

Districts 

(Rs. In 

Emp. (No.) 

Project In Lakh) No. 

(Rs. In 

Lakh) 

Lakh) 

Bhagalpur 72 102.64 41 224.78 64.69 206 

Darbhanga 99 138.76 10 39.95 10.43 41 

E. Champaran 117 166.56 16 100.00 25.45 100 

Muzaffarpur 113 158.4 3 17.12 5.94 22 

Patna 145 198.98 71 666.64 139.47 570 

Rohtas 74 103.38 36 405.48 101.11 262 

Samastipur 103 144.36 60 337.57 113.93 307 

Sitamarhi 81 112.86 4 23.00 3.55 25 

W. Champaran 94 128.06 7 110.00 14.53 52 

Total 898 1254 248 1924.54 479.1 1585 

Final Report 

i


Annexure 8.1 BIADA Application Form 

Final Report 

i

Final Report 

ii 


Final Report 

iii 


Final Report 

iv 



Annexure 8.2 Documents required to be submitted in DIC 

Final Report 

i


Annexure 8.3 DIC memorandum 

Final Report 

i

Final Report 

ii 


Final Report 

iii 


Final Report 

iv 


Final Report 

v 



Annexure 8.4 Form of Registration under factory act 

Final Report 

i

Final Report 

ii 



Annexure 8.5 Pollution control board form 

Final Report 

iii

Final Report 

iv 


Final Report 

v 


Final Report 

vi 



Annexure 8.6 Bihar Single Window Clearance Act 

Final Report 

i

Final Report 

ii 


Final Report 

iii 


Final Report 

iv 



Annexure 8.7 Andhra Pradesh Single window clearance system 

Final Report 

i

Final Report 

ii 


Final Report 

iii 


Final Report 

iv 


Final Report 

v 



Annexure 9.1: Ward wise Distribution of Street Vendors 

Ward 

Non- 

Area/Location Veg. Fruit 

No. 

veg 

Cloth Food Others Total 

1 Bibiganj 16 5 5 0 8 4 38 

1 Bibiganj to Bhagwanpur 34 14 4 1 50 5 108 

2 Bhagwanpur to Maripur 30 10 10 0 25 10 85 

2 

Bhagwanpur To Reva 

Road 

10 10 15 10 25 5 75 

2 Chandni Road 10 5 5 2 10 6 38 

3 Gobarsahi to Bhagwanpur 15 10 5 10 23 6 69 

3 Maripur to gobarsahi 20 20 10 5 20 10 85 

4 Beriya to Lakshmi Chowk 20 15 25 5 15 8 88 

4 Chandni Chowk to Beriya 20 20 10 10 25 10 95 

5 

Brahmapura to Sanjay 

Cinema 

15 10 5 5 25 20 80 

5 

Lakshmi Chowk to 

Brahmapura 

32 14 8 6 21 12 93 

6 Chata Chowk to Khabra 10 5 5 4 12 14 50 

6 Khabra to Kali Mandir 6 4 5 0 12 6 33 

7 Khabra to Gobarsahi 12 4 6 8 12 14 56 

7 

Maripur to Bhagwanpur 

Gumti 

8 6 2 2 8 12 38 

8 

Juran Chapra to 

Brahmpura 

12 8 4 2 23 6 55 

8 Refujee to Juran Chapra 0 0 0 60 10 8 78 

9 Company Bagh 16 96 6 306 72 42 538 

9 Kachahri Road 12 6 2 18 8 42 88 

9 Sadar Hospital Road. 0 4 0 0 24 22 50 

9 Station Road Muzaffarpur 4 106 6 14 82 23 235 

10 Around the Bus Stand 22 56 42 28 36 48 232 

10 Circuit House 12 8 6 46 31 14 117 

10 Magistrate Colony 16 28 18 0 16 40 118 

10 

Maripur Moar to Bus 

Stand 

32 23 25 0 22 18 120 

11 Zero Mile 98 22 12 8 26 14 180 

11 Zero Mile to Akhara Ghat 12 16 10 4 22 14 78 

Final Report 

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Ward 

Non- 


No. 

veg 


12 Akhara Ghat 26 12 22 25 18 22 125 

12 Balu Ghat 6 0 4 8 8 11 37 

13 Balu Ghat to Pul 8 2 2 6 12 14 44 

13 Balu Ghat to Zero Mile 6 4 3 5 26 10 54 

14 

Akhara Ghat Pul to Kali 

Mandir 

4 2 5 0 6 14 31 

14 Mandir to Balu Ghat 4 2 5 0 6 14 31 

15 Kapuri Nagar to R.N.C 2 3 2 4 6 14 31 

15 

R.N.C to Hanuman 

Mandir 

6 2 3 5 8 12 36 

16 

Aamgola Pul to Harisma 

Chowk 

6 18 2 0 8 16 50 

16 Diwan Road 18 8 0 0 12 18 56 

16 

Diwan Road to Harisma 

Chowk 

8 9 2 0 14 16 49 

17 Durgamandir to Najirpur 2 2 3 3 6 8 24 

17 

Saraiyaganj to Durga 

Mandir 

28 8 12 6 11 14 79 

18 Najirpur to Pankaj Market 8 4 3 2 16 18 51 

18 pankaj Market to Tower 18 5 4 0 12 15 54 

19 

Chata Chowk to Pankaj 

Market 

12 3 8 0 8 16 47 

19 

Ghirni Pokhar to 

Saraiyaganj Tower 

162 54 16 0 26 32 290 

19 

Kalyani Chowk to Chata 

Chowk 

25 15 6 0 11 12 69 

20 

Companybagh karbala to 

sikandpur 

6 4 5 0 12 18 45 

20 Tower to Company bagh 0 12 0 8 6 16 42 

21 

Purani Gudri to Amar 

Cinema 

6 3 8 0 8 16 41 

21 

Sonarparri to Purani 

Gudri 

6 4 5 0 12 18 45 

22 Bank Road 26 15 2 0 22 12 77 

Final Report 

ii


Ward 

Non- 


No. 

veg 


22 Islampur 22 5 3 0 18 14 62 

22 Sutapatti 12 8 2 0 18 26 66 

22 

Thana Chowk to Islampur 

Moar 

0 6 2 3 12 8 31 

23 

BB collegiate to Arya 

Samaj Mandir 

14 12 5 48 12 8 99 

23 

Kalyani Chowk to Thana 

Chowk 

18 35 10 152 46 22 283 

23 

Thana to Dharmshala 

Chowk 

22 18 15 18 21 19 113 

24 

Choti Saraiyaganj to 

Tower 

18 11 0 0 8 12 49 

24 Pandeyji Gali 22 8 0 0 18 26 74 

25 Andi Gola 28 22 20 0 8 16 94 

25 Ghirni Pokhar 46 16 10 0 10 12 94 

25 Jawaharlal Road 26 5 3 8 22 18 82 

26 

Both Side of Railway 

Gumti 

5 12 6 0 22 15 60 

26 

Chandralok Chowk to 

Technical Chowk 

52 12 8 0 12 14 98 

26 

Chata chowk to Speaker 

Chowk 

12 15 10 8 12 18 75 

26 Kathi Pul 128 22 20 6 18 16 210 

27 Balughat bandh 21 8 9 6 12 18 74 

27 Banaras Bank Chowk 18 11 21 3 16 21 90 

27 Soda Godam 21 14 4 0 12 14 65 

28 Milky Tola 38 24 12 2 8 12 96 

28 

Neem Chowk to Aghoria 

Bajar 

82 26 34 0 62 28 232 

29 

Milky Tola to R.D.S 

College 

26 8 25 21 32 18 130 

29 R.D.S to Ramdayal gumti 12 8 6 4 22 12 64 

29 

R.D.S. college to Aghoria 

Bajar 

22 12 10 6 36 22 108 

Final Report 

iii


Ward 

Non- 


No. 

veg 


30 Atardah 16 8 15 0 22 14 75 

30 Atardah to Milky Tola 6 3 6 4 8 11 38 

30 Neem Chowk to Atardah 18 6 22 0 12 26 84 

31 Kachchi Pakki 8 4 8 6 12 16 54 

31 Kachhi Pakki to Atadah 22 12 8 4 12 18 76 

31 Shitla Gali 12 8 2 0 8 14 44 

32 Atardah to Railway Gumti 8 4 6 0 14 12 44 

32 

Railway Gumti to Gas 

Godam 

22 12 5 0 8 16 63 

32 Ratbara 12 5 4 2 12 17 52 

33 Sherpur 6 4 2 0 4 12 28 

33 Sherpur to Neem Chowk 4 2 5 0 6 8 25 

34 

Mithanpur Lala to 

Aamgola 

6 2 3 2 5 16 34 

34 

Sherpur to Mithanpur 

Lala 

4 2 2 0 6 8 22 

35 Harisabha to Pani Tanki 24 38 8 10 24 18 122 

35 

Pani Tanki to Panjabi 

College 

4 5 3 8 18 16 54 

36 

Amar Cinema to 

Harisabha 

8 6 5 12 16 18 65 

36 

Pani Tanki to Amar 

Cinema 

22 12 8 16 18 26 102 

37 Kanhauli 12 5 4 0 6 12 39 

37 Kanhauli Math 14 4 2 0 6 16 42 

37 Kanhauli to Bela 28 6 5 6 12 24 81 

38 Police Line 18 8 6 11 8 16 67 

38 Tinpokhariya 26 5 4 6 12 18 71 

39 

Banaras Bank to Jail 

Chowk 

6 4 2 2 8 10 32 

39 

Police Line to Banaras 

Bank Chowk 

12 5 2 2 6 12 39 

40 

Prabhat Cinema to 

Harisabha 

12 16 10 2 12 16 68 

Final Report 

iv


Ward 

Non- 


No. 

veg 


40 Purani Bajar 108 26 22 12 18 16 202 

40 

Purani Bajar to Prabhat 

Cinema 

28 18 16 5 16 18 101 

41 Chouri to Khadi Bhandar 18 10 6 2 12 14 62 

41 

Rambagh Chowk to 

Rambagh Chouri 

12 4 2 3 8 10 39 

42 Nunphar 6 4 3 2 8 12 35 

42 Nunphar to Kali Mandir 18 10 8 6 12 8 62 

42 Nunphar to Pokhariya 8 3 4 3 6 14 38 

43 Bela Chapra 26 12 15 6 8 12 79 

43 

Bela Chowk to 

Mithanpura 

22 9 8 0 6 18 63 

43 Mithanpura to Pani Tanki 28 16 12 8 12 16 92 

43 Pani Tanki to Meman Gali 28 12 8 6 6 18 78 

44 Mithanpura to Pani Tanki 28 16 12 8 12 16 92 

44 Pani Tanki to Meman Gali 28 12 8 6 6 18 78 

45 P.N.T Chowk 42 16 9 5 12 14 98 

45 P.N.T to Madnani Gali 8 2 2 0 4 8 24 

45 P.N.T to Rambagh Chowk 26 12 8 2 8 12 68 

46 Bela to Kanhauli 12 8 6 4 8 6 44 

46 

Rambagh to Khadi 

Bhandar 

22 12 14 11 12 18 89 

47 Kanhauli to P.N.T 8 4 3 0 6 9 30 

47 

Khadi Bhandar to 

Kanhauli 

21 12 8 6 8 0 55 

47 

Rambagh to Khadi 

Bhandar 

6 2 2 0 4 8 22 

48 

Kanhauli to Masjid 

Chowk 

18 12 8 4 6 12 60 

48 Masjid to P.N.T 6 4 5 0 8 16 39 

49 

Khadi Bhandar to Leprosy 

Mission 

16 8 6 4 6 12 52 

49 

Leprosy Mission to 

Tinpokhari 

12 8 6 4 12 16 58 

Final Report 

v


Ward 

No. 


Nonveg 


Total 2437 3909 2428 2067 3004 3782 11647 

Final Report 

vi


Annexure 10.1: List of Participants at the Task Force Workshop 

Final Report 

i

CITY BUSINESS PLAN

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