CITY BUSINESS PLAN

City Business Plan for Muzaffarpur Municipal Corporation
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.
Final Report
4-4