Breaking all negative perceptions, Bihar has been able to attract new investment proposals worth Rs 5,794 crore during 2016.
Statistics released by the department of industrial policy and promotion of the Union commerce ministry, suggest a massive 365% rise in investment proposals over Rs 1,247 crore in 2015.
In fact, 2016 was a bounce-back year for Bihar in terms of new investment proposals after witnessing a decline from Rs 1,449 crore in 2014 to Rs 1,247 crore in 2015.
The figures show that Bihar left its neighbour Jharkhand far behind in attracting new investment proposals in 2016. Jharkhand, during the year under review, attracted new investment proposals worth just Rs 1,329 crore despite the strategic advantage of having huge mineral reserves.
In fact, Jharkhand witnessed a decline in new investment proposals from Rs 1,540 crore recorded in 2015 to Rs 1,329 in 2016.
Bihar’s investment proposals worth Rs 5,794 crore, came from just 19 proposed new units. This accounts for 1.41% of the total proposals received nationally during 2016.
However, market observers doubt if the 2016 figures will be maintained this year, as many liquor giants have been forced to shelve their production and expansion plans in the state following the imposition of total prohibition on April 5, 2016.
The only silver lining for the state is the commitment on part of the Confederation of Indian Industry (CII) to partner with the Bihar government in promoting technology-friendly farming in the state. The national industry body has also promised to promote setting up farm-equipment manufacturing units in the state.
“Bihar can be promoted as a model state in technology driven farming. In this process there will be an increase in demand for farm equipment, which in turn will promote setting up their manufacturing units in the state,” a CII official said.