Address at the Inauguration of the Global Meet for a Resurgent Bihar

Missions for Bihar's Prosperity

I am delighted to participate in the inauguration of the Global meet for a Resurgent Bihar to explore opportunities and partnerships for the development of Bihar. My greetings to all the participants who have come from many parts of the country and abroad with open mind to participate in building a resurgent Bihar in partnership with the people of the state. I am sure your mission to make the aspirations and dreams of people of Bihar a reality will definitely come true. My greetings to all of you.

A few years back, I saw a study report from Dr. Paul H. Appleby of University of California. Dr. Appleby who was a US based public administration scholar presented a document on administration of Indian States to the Prime Minister Jawaharlal Nehru in 1952. Dr. Appleby's study using various criteria and interviews with hundreds of specialists across the country concluded that Bihar was the best administrated state in the country at that time. Today you have the wonderful opportunity to repeat history with your innovative participation.

I have visited all the States of the country and nearly all Union Territories and met people from all walks of life. Particularly I have met over one million students upto the age of 17. When I interacted with them, I have shared their dreams and pains. I visited Bihar number of times and it has always been a source of happiness for me to meet Bihar youth and Bihar farmers. Bihar indeed, has a great capital of knowledge, capital of skills and above all capital of hard work. This capital has spread in many parts of the country and also many countries in our planet. Time has come for Bihar to get transformed into a developed state before 2015. We need the best of minds to be the partners in this great journey.

Core competence of Bihar

Bihar is the ninth largest state in terms of area in the Indian Union. The total area of the state is 1,73,877 sq. km. The state is completely landlocked. The Ganga river cuts the state into two unequal halves, flowing from West to East. The southern half is almost double in size of the northern part.

Chhotanagpur plateau is full of highlands, hills and valleys. This region is also noted for waterfalls on some rivers like Suvarnarekha (Hundru falls). In northern Bihar there are rivers like Ganga, Kosi, Gandak, Sone, whereas the rivers in the south Bihar are Punpun, Phalgu, Sakri, Kiul, Damodar, Baraker, Suvarnarekha, Koel etc. Most of the rivers merge with the Ganga. The monsoon reigns supreme here and carries great weight in the overall human occupancy pattern and economic development. The average rainfall varies from about 100 cm in the non Chhotanagpur region to 150 cm in the Chhotanagpur region. You are blessed with abundance of water. What is needed is water management through connectivity.

Developed Bihar leads to Developed India

On 28th March 2006, I addressed the Joint Session of the Bihar Legislature. I suggested ten missions with a potential to make Bihar economically prosperous with synergized efforts from the political systems, administration and the collective leadership of the State and Centre. The leaders of industry and trade, policy makers, scholars, development practitioners and social activists have all their roles in realizing this vision of developed Bihar.

What can be the missions for the development of Bihar? Since the number of people living below poverty line in Bihar is about 42% against the national average of 26%, the first mission is to elevate all of them and bring income into their hands and smiles on their faces. This can be done by having focused development leading to higher per capita income and better quality of life. Your state can definitely transform into an economically developed model state. At this stage, let me share with you the Development Radar brought out by the Planning Commission.

The boundary of octagon projected in the Development Radar indicates the maximum achievements of various indicators of development. The smaller octagon represents the national average. While we appreciate you for your achievements in safe water provisioning, you need to achieve higher results in the area of pucca houses, literacy, formal education, life expectancy, infant mortality rate, per capita expenditure and poverty alleviation. All of you will agree with me that Bihar has the potential to achieve all these aspects better than other states in the country, if only all of you decide to work in synchronization for the development of the state as the prime focus.

Focus Bihar

I am happy to learn that the Government of Bihar is already on the path of evolving a road map for its full fledged development. Our focus must be on how the per capita income of Bihar can be increased from the existing Rs. 6,700 (2005-2006) to Rs. 35,000 by 2010 and also to create an investment friendly climate leading to employment avenues. As per the employment exchange report from Bihar as on 31st December 2005, the total registered candidates are 14.7 lakhs. This is pertinent mainly to the urban areas and that too mostly to those who have passed Board exams or beyond. But, 90% of the people live in rural areas and many youth who in the cities who do not pass the Board exams are called dropouts. Hence in our estimates there are at least Ten million unemployed or underemployed persons in the whole of the state. Bihar should aim at realizing the goal of 100% literacy and employment by the year 2015.

The Human Development Index ranking of Bihar within Indian states is fifteen, which should be improved considerably to be in tune with the heritage, past glory and the present aspirations. When your present meets your past and creates the future, Bihar will be transformed into a developed state.

Missions for Bihar

Let us now look at what are the missions which Bihar can undertake based on the core competence of the state. The following are some of the important missions and its outcome for Bihar?s prosperity:-

1. Agriculture and Agro Food processing: Increasing the agriculture production, activating the sugar industries, dairy development, food processing and horticulture leading to empowering and enrichment of 27 million farmers. It involves production of 57 million tonnes of food grains, fruits and vegetables by the State. Also it will lead to a business of Rs. 100,000 crores for processed food items in a decade.

2. Education and entrepreneurship: 75% literacy by 2010 and 100% by 2015. Integrated education and entrepreneurship from the secondary to higher education segment. Bihar should also aim at IIT and Indian Institute of Science Education and Research. Higher education should lead to employment generators for the state instead of employment seekers.

3. Global Human resource cadre: Will lead to productive and high value employment for 10 million youth in Bihar. Prepare 2 million youth for high value employment in IT, ITES and BPO sector and allied sector before 2010.

4. Renaissance - Nalanda International University: University with international partnership with an outlay of Rs. 500 crores ($100 million). The focus of the university is the evolution of world of peace and prosperity, devoid of crime, terrorism and war. It will draw inspiration from the rich historical traditions of Nalanda, Bodhgaya where Lord Buddha got enlightenment and other spiritual centers in Bihar to create a new framework, in the modern context, to generate, share and disseminate knowledge and skills. It will be a place for meeting of minds from the national and international arena to do research on unity of minds linking human welfare, science, technologies, economics and spirituality with reference to ancient and modern thinking.

5. Healthcare Mission: Quality health care for all 82 million people through mobile clinics, tele-medicine, corporate hospitals and health benefit schemes.

6. Flood and Water management: Apart from revival of ponds and desilting of river beds, creation of waterways in southern Bihar to manage the flood will increase irrigated land for about 5 million hectares and generate over 1000 MW of Hydel power and provide employment for 9 Million people.

7. Infrastructure Development (PURA): Convert 35,500 km length of rural roads to all weather roads and improve the maintenance of national and state highways to international standards. This is essential for all the missions discussed. Creation of 500 PURAs for the rural economic prosperity with at least two agro, food and fruit processing rural enterprises in each PURA. One nuclear Power Plant of 1000 MW capacity is suggested, apart from the large scale use of solar power and modernization of thermal power stations and creation of super critical thermal station of 1980 MW capacity.

8. Tourist destination of the world: Increase international tourist arrival of 1 lakh to 1 million and domestic tourist of 7 million to 30 million. It will generate minimum of 4 million jobs with reference to international tourist arrival alone. It will lead to US $10 million additional revenue to the state. Road, communication and proper hotel accommodation will be a necessary condition for enabling such a tourist growth.

9. Exclusive economic zones: Creation of 10 exclusive economic zones will give a mission to industries such as leather, silk, sports goods, sugar and IT, ITES and BPO and special tourist products. It can provide large scale employment for each region and it should aim at a turn over of at least Rs. 5,000 crores per year based on our experience in the country.

10. E-Governance for Bihar: For carrying out all the 9 missions the most important driving force is implementation of e-governance coupled with administrative reforms and mission mode management is the necessary requirement. This will accelerate the process of socio economic development.

In the missions stated above, I would like to stress on certain missions like agro-processing, global human resource development, infrastructure development, tourism, the creation and operation of exclusive economic zones, which will provide an opportunity for all of you to work together and bring prosperity to Bihar and thereby to country.

Agriculture and Agro-Food Processing

The agro-food processing envisages a business volume of over Rs. 100,000 Cr. within the next ten years. The first task will be to revive the sugar industry by creating at least ten sugar mills through co-operative-industry-government partnership. This is essential to ensure the full utilization of over 100 lakh tonnes of sugar being now sent to sugar

factories in other States and make Bihar as a major sugar producer of the nation.

The second area is creation of food processing industry for fruits and vegetables. Here the industry can participate in

creation of large cold storage chains for enabling Bihar's farmers to store the high value fruits and vegetables and market it at a competitive rate determined by demand and supply conditions. The richness of Bihar in fruits and vegetables should result in the creation of large number of food and fruit processing industry based on the district wise core-competence of Bihar. I have suggested creation of 500 PURAs (Providing Urban Amenities in Rural Areas) in Bihar. In my estimate I would consider establishment of at least one each food/fruit processing enterprise in each of the PURA clusters. The specialists from commerce, industry and human

resources here should work out ways and means the young entrepreneurs of the region can be enabled supported by the banking and university system. You should also ensure an overall linkage including the marketing set up for this big mission.

Global Human Resource Cadre

In the coming years I visualize larger participation of Bihar in the IT, ITES and BPOs sector. As per NASSCOM McKinsey Report-2005, the requirement of knowledge

manpower in the IT sector by 2010 is expected to be over 9 million and in the support sector such as transportation,

construction and retailing will be around 6.5 million. I visualize at least 1 million direct jobs on IT, ITES and BPO sector and another 1 million jobs in construction, retail and transportation being occupied by Bihar youth. For this, there is a need to carry out state-of-the-art, skill oriented sectoral training of the youth who have the necessary aptitude for such tasks.

Infrastructure Development

The major infrastructure development required in Bihar is the development of physical connectivity. To improve the

connectivity to the 45,000 villages in Bihar there is a need to urgently upgrade the 35,500 kms of seasonal road to all weather roads to provide all weather, business and commercial movements to all district and villages of Bihar. In addition there is a need to upgrade all the national and state highways to international standards so that the tourists can be attracted to Bihar. The next area of development will be the modernization of existing power plants, creation of mega power plants and establishment of number of solar power plants at the village level.

Tourism

Bihar with its rich Civilizational heritage is a very important tourist destination. Here, I would like to narrate the gist of the discussion which I had with the President of Maldives during his visit to India. We discussed particularly about Maldives tourism. The tourism in Maldives accounts for over 19% of their GDP, a fifth of total employment, approximately 30% of revenues and 70% of foreign exchange earnings. Tourism, the dominant sector of the country?s economy, is very dependent on choices made by external consumers. Maldives attracts tourists with its beautiful island resorts in the form of aesthetically crafted thatched cottages and bungalows.

In 2004, Maldives had attracted tourists twice its

population. On analysis, I found the reasons for the growth as the Government of Maldives gives the Islands for development as tourists spot on lease to private enterprises. The private enterprises invest and develop the whole Island with self-contained resorts including roads, power system, communication, drainage and waste management system, water, shopping malls, entertainment areas and banking system. Simultaneously, there is a need to create certain number of small airports where 50-seater aircraft can land as a part of tourism development plan of the State. There is no Government investment needed for the project. Can you take up such a mission in Bihar and develop total tourism package for Bihar as a Build, Operate and Transfer Scheme. This will definitely be a new challenge for the Business leaders participating in this programme.

Creation and Operation of Exclusive Economic Zones

I have suggested creation of an exclusive economic zones in the whole State of Bihar with a turn over of at least Rs.

5000 Cr. per year in each of these zones. There is a need to collect the industry in the individual economic zone based on the core competence of the region. For example, Muzaffarpur is famous for carpets. Can we inject technology design skills and state-of-the-art packaging and preservation to make this product an international market success. Similarly, as you all aware Bihar has the best of hides and skins in the country. Whereas the hides and skins are being bought without value addition by Chennai and Kolkata. Bihar entrepreneur can definitely consider creation of state-of-the-art leather industry in Bihar for adding value to the hides and skins for marketing globally. Similar is the case with Bhagalpur sarees, Madhubani paintings and several other core competence areas of Bihar. I also understand that there is a possibility of finding oil and gas in Bihar in addition to granite stones. This can definitely become a vibrant industry of Bihar. I am sure the entrepreneurs assembled here will participate in all these missions and transform Bihar into a state rich in manufacturing and the services sector apart from its core competence in agriculture.

After my address to the Legislative Assembly of Bihar, I am glad to know that enabling actions for accomplishing the missions have been taken by the Bihar Government. Thus, the environment is ripe for the industry leaders to take up ventures for uplifting all the three sectors of the economy namely agriculture, manufacturing and services.

Ten Point Formula for Prosperity through smart Governance

1. Fiscal correction, enhancing the revenue, controlling the expenditure and restructuring the debt and borrowings.

2. Restructure the Public sector corporations, undertakings and turn the focus towards providing quality of services to people at the same time made competitive.

3. Creating the export led economy in the state.

4. Reviving the Cooperative societies with new management structure, state-of-the-art technology value addition, export oriented market linkages, coupled with state-of-the-art training.

5. Reviving the Agriculture sector by diversification, efficiency in water management and alternate cropping, Agro-food processing and create a market chain.

6. Encourage cultivation of commercial crops with market advantage while ensuring food security with the stabilization of food grains cultivation and increase the food production.

7. Accelerating the growth momentum in Manufacturing and Services sector with attractive investment climate, single window clearance, creating special economic zones, deregulation, better monitoring instead of control

8. Delivering Quality of Service to the people through smart governance using G2G, G2C and G2B e-governance GRID across the state in Civil Administration, Police Administration, and Institutional Administration thus creating transparent administration.

9. Establishment of PURA to remove the Rural Urban Divide and improving the Rural Economy with ?One PURA Cluster - One Product? as the focus.

10. Evolution of leadership for the mission mode operation from planning to execution to the performance.

Conclusion

For success in all projects we need creative leaders. Creative leadership means exercising the vision to change the traditional role from the commander to the coach, manager to mentor, from director to delegator and from one who demands respect to one who facilitates self respect. For a prosperous and developed Bihar, I am sure that the industry and business leaders will use their creative leadership and innovative ideas to organize and nurture entrepreneurship to make Bihar prosperous, happy and peaceful State before 2015.