Dy CM Modi says some administrative tweaking has also helped. “Earlier, a Superintendent Engineer had the power to sanction a project amounting to just Rs 20 lakh. That has been increased to Rs 1 crore, which has resulted in quick decisions,” says Modi.

State expenditure, however, is most visible in the public health sector. From 39 patients in January 2006, the number of patients visiting Public Health Centres jumped to 4,524 per month in October 2007.

And, the drastic rise in corporate tax collection reflects the “deepening business activity” in the state, say Income Tax officials. “The figures certainly mean that economic activity has increased manifold. A sharp rise in tax collected at source too confirms that individuals are benefiting from the changing economic scenario,” says a senior I-T official based in Patna.

In its report, the Bank also appreciates the government’s decision to implement the Single Window Clearance Act and a State Investment Promotion Board (SIPB) to facilitate industrial investment.

Other international donor agencies too have come forward to chip in. Along with the World Bank, the Asian Development Bank (ADB) and the UK-based Department for International Development (DFID) are jointly working to support the development agenda.

“As we move forward, we are working closely with the ADB and DFID to define a joint framework for a coordinated approach to our assistance,” says Dipak Dasgupta, World Bank’s Lead Economist in New Delhi.

“Abolishing APMC has checked exploitation of traders. However, the land belonging to marketing boards will be best utilised when big companies like Reliance and ITC come to Bihar for contract farming,” says Modi.