Bihar receives record Rs 1.81 trillion investment proposals, says minister

"Ab humara samay hai" - The time for Bihar has come, said state's Industries and Tourism Minister Nitish Mishra after it received a record Rs 1.81 lakh crore worth of investment proposals in its only second investor meet.

Mishra said the focus will now shift to providing all the promised support to the investors so that the units could start quickly.

"I am very happy personally and very satisfied, and I am thankful to my team in the industry department who has been for the last few months working on their toes, holding a series of events in different states, interacting with the business community, trying to pitch Bihar and the advantage Bihar," he said.

The state signed with an array of companies' memorandum of understanding (MoUs), committing Rs 1.81 lakh crore of investment at the second edition of the Bihar Business Connect investor summit last week.

"To be very honest, even we were not expecting this kind of figure," he said. "From now on it will be the emergence of a new Bihar."  After the mega success of the investor meeting, the investing community started treating Bihar as an attractive designation for even private capital.

"I think the myth, which was there or the perception which the people had about Bihar (of the state being less investor-friendly), has gone. Now, it is a complete emergence of a new Bihar under the leadership of Nitish Kumar ji, and I am very positive that in years to come when these MoUs are converted into projects, it will have a big effect, big impact," he noted.

Hitherto considered a laggard, the state signed investment commitments with 423 companies at its only second investor meet, Bihar Business Connect 2024, on December 19-20.

Sun Petrochemicals will invest Rs 36,700 crore in renewable energy projects, including pump hydro and solar plants. Adani Group, which is the largest private investor in the state, committed to investing about Rs 28,000 crore in setting up an ultra-supercritical thermal power plant as well as expanding cement production capacity, food processing and logistics businesses.

NTPC Green, the renewable energy arm of the state-owned electricity generating giant, has committed to investing Rs 10,000 crore in clean energy projects. SJVN, formerly known as Satluj Jal Vidyut Nigam, committed a similar amount for the pump storage project. Construction and engineering major Ashoka Buildcon promised an investment of Rs 9,000 crore in setting up a green hydrogen unit in the state.

NHPC, India's largest hydroelectric producer, committed an investment of Rs 5,500 crore in setting up a 1,000 MW solar project, while SLMG Beverages (a bottler for Coca-Cola) committed Rs 3,000 crore, Shree Cements Rs 800 crore and Haldiram Snacks Pvt Ltd Rs 300 crore.

Mishra, whose CEO-styled governance was instrumental in pivoting the change in perception about the state as an investment destination, said the first edition of the investor meet in 2023 got an investment commitment of Rs 50,300 crore.

Bihar now boasts one of the best infrastructures - from roads and highways to almost round-the-clock electricity, industrial parks and SEZs.

The MoUs signed cuts across sectors - from energy to tourism, information technology to food processing and much more, he said. "Bihar is a place where you will have a maximum opportunity for growth."  "Ab hamara samay hai (It's now our time)... the time for Bihar has come," he said.

Mishra said the focus will now shift to start converting the MoUs into projects, according requisite sanctions and approvals.

"If you need the allotments of land, we have to allot them land. Maybe if they require some specific infrastructure or they require some specific policy support, we will try and provide," he said.

The state, he said, is redrafting its 2016 industrial policy and new sectoral investment policies.

"I want that in the coming days, our policies should be such that it should not only be competitive with policies of other states but also be very attractive."  When the current round of investment proposals gets on the ground, the industrial landscape of Bihar will change - from an agro and food processing heavy portfolio to one where clean energy's pie rises dramatically.

Information technology and general manufacturing also get a big boost.

"If you will see now the complete dynamics of the investment in Bihar will completely change. It would be the emergence of a new industrial map," Mishra said.

To investors who missed the bus, he said those still deliberating on investments should make the first move before the opportunities vanish.

"The future belongs to Bihar," he said.

"My request (to investors) would be that do not go by the perception, see the reality. If you invest or when you invest in a different subject, please come to Bihar and see the state, its policies, people and resources. And then you make a choice whether Bihar is fit for investment or not.