The reasons for Bihar’s changing face are many, say experts and officials. “Legislative backing to most of the reforms has also boosted investor confidence... Major international donor agencies are thus gearing up to contribute to the state’s development,” says the World Bank report.

But according to Deputy Chief Minister Sushil Modi, whose NDA government under Chief Minister Nitish Kumar took over last year, the first big step was the collective decision to delegate power from top down. “It is yielding huge results,” says Modi.

The most tangible growth has been in the agriculture growth rate. According to the PAU study, this has hinged on vegetables and fruits, apart from traditional crops. This highlights the fact that Bihar’s farmers are beginning to wake up to the commercial prospects in the sector.

Here, an unexpected boost has come from the Centre’s green signal to promote new forms of bio-fuel, especially in blending sugar-generated ethanol and petrol. The result: Hindustan Petroleum, India Glycols and Birla Sugar have touched base with the government on taking over closed sugar mills on lease. “Bihar is sure to emerge as an ethanol hub,” says Sugarcane Minister Nitish Mishra.

The other area that the government has zeroed in on is infrastructure. Consider this:

• Record 30% allocation of plan money for road construction

• Utilisation of Rs 8,647 crore on development works in 2006-07, 102 % of the annual expenditure target.

“We intend to spend Rs 18,000 crore in the next three years in the road sector. Massive work is already underway to construct and improve our national and state highways and our district and rural roads. Along with the Prime Minister’s Gram Sadak Yojana, we have also launched or own road project called the Chief Minister’s Gram Sadak Yojana,” says Deputy Chairperson of the State Planning Board N K Singh, in the World Bank report.

... contd.