On September 13, Adani Power announced that it will set up a 2400 MW Greenfield Ultra Super Critical power plant at an estimated cost of 3 billion (₹ 26,482 crore) in Pirpainti in Bhagalpur District in Bihar. 1020 acres of land have been allotted for the project on lease for 33 years at a nominal rate of ₹1 per year. Adani has entered into an agreement with Bihar Power Company Ltd (BSPGCL) for the supply of electricity at ₹ 6.075 per kWh for 25 years.

As this is the biggest investment Bihar has received in more than a decade, it created a buzz. On September 15, a Congress leader accused the Bihar government of favouring Adani by allotting land at ₹ 1/year and also alleged that around 10 lakh trees would be cut for the project. After that, there is an ongoing debate on this project. Bihari people are highlighting the need for industries in Bihar on social media, and subsequently media is covering the topic too.

As a Bihari, let me tell you, the first time I got the news of ₹26,482 crore of investment in my state, it felt like a personal achievement. After the political statements, the joy turned into fear, fear of losing this project. I am frightened that this project may end up in political turmoil or in the Judicial process, causing infinite delays or may totally back out (you can call it a far-fetched fear). Without having any prejudice to any other states, news of big companies setting up their units in other states always makes me a jealous child. This has been amplified by my travel to other parts of India. When I travel to the shiny Highways in Bihar, I see nothing but some small factories of bricks and a dystopian-looking empty road with unfinished houses on either side. You have to wait long if you desire a hotel with a clean toilet; it will be worse if you are travelling with a female. In comparison to Mumbai-Pune or Pune-Nasik or Delhi-Amritsar, Highways in Bihar look like a destitute country which managed to make basic infrastructure somehow, but now is destined to see it empty and bland. It just doesn’t look like the same country.

A FAR-FETCHED CRITICISM

Criticism of this project doesn’t hold water. Many states allot land on nominal rates to attract investment. Adani was given land for the Mundra port at Rs. 400 per acre, attracting similar criticism. Today, Mundra port has become the biggest container port in India and has significantly upgraded Gujarat’s position in handling cargo ships. The port has contributed 2.25 lakh crore to the state and national exchequers, and it also created 7.5 crores of man-days employment as of Nov 2024.

Also, the 10-lakh trees allegation is simply not true. The area in discussion is not a dense Amazon forest. The number of trees in the referred area stands at around 10,000, and a 300-acre green area is proposed to be built inside the campus itself. But I am not here to defend the Bihar government or Adani; rather, I have other concerns.

DISMAL STATE OF INDUSTRIES IN BIHAR

Secondary sector in Bihar is contributing only 21.5% of GSDP (50.2% of it comes from the construction sector, only 37% from manufacturing as per data of 2022-23) as compared to MH-26.4%, UP- 28.4%, Haryana-33% and Jharkhand – 35.4%. ASI (Annual Survey of Industries) for the reference year 2022-23, the total number of factories in Bihar was 3307, out of which only 2782 were functional, while the total functional factories in India stand at 206523.

While Bihar contributes more than 9% of India’s population, cumulative factory units in Bihar are less than 2% of India (1.34%). Persons employed in Public/private company limited are 1.9% of the total workforce against 11.3% of all India (Source- Bihar economic survey 2024-25). Out of over 8 lakh registered startups in India, Bihar has 2786 recognised startups as of June 2024, just 2786 (DPIIT DATA). Popular perception of Bihar, being a landlocked state, is considered to be unfit for industrialisation, doesn’t hold water. States like UP, Haryana, Delhi, and Punjab are also landlocked states, but they have a significant number of industries operating there (especially the IT industries don’t specifically need a seaport to flourish). Bihar is ranked 35^th in terms of per capita income, with significant employment challenges.

SATISFACTORY IMPROVEMENT

During the last two decades, Bihar has made progress on each and every parameter required for industrial growth. Road connectivity in Bihar is 3167 per thousand square km, which is the third highest in the country. Total installed power capacity is around 9500 MW with peak power demand of 8000 MW (I can assure this data from the electricity supply in my village in Kishanganj District, which is 22-23 hours a day). Bihar has a potential workforce (some may argue it is an unskilled workforce, which is true, but industry-specific skills can be taught with vocational training, etc). Bihar has water resources.

As per the latest National Crime Records Bureau (NCRB) data, Bihar is the fifth state in crime per lakh people, below states like Kerala, UP, Maharashtra and Delhi. There is no organised crime syndicate operating in Bihar now. All I want to say is that there is nothing much adverse in Bihar today that it should be considered adverse for setting up industries. So I ask this question myself every day: what is the biggest roadblock for industries to consider Bihar as a destination?

ECOSYSTEM

Despite daily news of heavy traffic and people complaining about the quality of living in metro cities like Bengaluru, Mumbai, Delhi, Kolkata, we often see companies inaugurating their offices in those cities. I sometimes wonder why? Why would every company prefer to establish its units at a place which has hardly any space left for one extra person?

And the only answer that comes to mind is ECOSYSTEM.

Despite the progress on basic infrastructure, Bihar has little to offer in terms of an existing support system. A company can’t run in isolation. It needs a vibrant ecosystem, viz, supply chain, skilled manpower, markets, past precedence, etc. Startups or MSMEs can only thrive in an existing support system, and it is beyond their capacity to create an ecosystem big enough to support various types of industries.

Only big projects can create an ecosystem out of nothing and be big enough to support other industries. Bihar is in dire need of big industries which can create an atmosphere for startups and MSMEs. It is always the first step which is harder. Once the system is established, you don’t need to do much. Bihar and its people must be ready to extend incentives like land lease at a nominal price or tax rebate, etc., to attract Big Projects. Without Big companies coming to Bihar, the lost respect of the once mighty region can’t be restored.

Bihari people have suffered a lot, and now it is the time to focus on long-term growth at the cost of short-term loss. Bihar must stop being a destination for the supply of unlimited cheap labour and remain a face of the Bimaru state. I dream of a day when I can talk about Bihar with pride and not with hesitation.