Forbesganj Industrial Area land cheapest in Bihar

So are lives of local Muslims

By Mumtaz Alam Falahi,,

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Patna: There are 47 officially notified Industrial Areas in entire Bihar. Bihar Industrial Area Development Authority (BIADA) has divided the state into four regions, and these 47 Industrial Areas have been distributed among the four. The Forbesganj Industrial Area has the second lowest rate of land.

Land Rate of Industrial Areas in Bihar

BIADA has four Regions — Patna, Bhagalpur, Darbhanga and Muzaffarpur. While Patna has the highest number of Industrial Areas (19) Muzaffarpur has the lowest (7). There is not one rate for all regions or for all Industrial Areas. Region-wise and Industrial Area-wise the rate of land varies on the basis of its location and connectivity. The rate is as high as Rs 195.49 lakh per acre in Patliputra Industrial Area in Patna under Patna Region to as low as Rs 2.14 lakh per acre in Murliganj Industrial Area under Darbhanga Region.

The Auro Sundaram International Private Limited coming up in Forbesganj Industrial Area

BIADA Regions

No. of Industrial Areas

Highest Rate per Acre (Rs in Lakh)

Industrial Area

Lowest Rate per Acre (Rs in Lakh)

Industrial Area
















Madhepura (Udakishanganj)









Low Rate of Land in Forbesganj

Of the 47, there are only two Industrial Areas whose land rate per acre is below Rs 3 lakh – Murliganj under Darbhanga Region has the rate of Rs 2.14 lakh while Forbesganj has Rs 2.73 lakh. It is in Forbesganj that the Bihar Government of Chief Minister Nitish Kumar allotted two plots measuring around 33 acres of land to Auro Sundaram International Private Limited one of the directors of which is Saurabh Agarwal, son of BJP MLC Ashok Agarwal. The 33 acres were given to Agarwal family for 90 years in Rs 90 lakh. It is said that BIADA has constructed a boundary wall of Rs 4 crore around the plot and gave it free to the company of BJP leader.

Low Rate of Life in Forbesganj

The plot of Auro Sundaram is near Bhajanpur village in Forbesganj block in Araria district and had since 1958 a road connecting the village to the local market, Idgah and hospital. The company blocked the road on June 3 and when the locals came out to protest they were gunned down mercilessly. Whatever the government says, the life of the locals, like the land, has been taken very cheaply. The government has not announced any compensation for the victims, nor has taken action against any police officer. Araria is a Minority Concentration District and Forbesganj too is officially minority dominated block.

What is BIADA?

BIADA or Bihar Industrial Area Development Authority is a statutory body constituted under the statutory provision of the Bihar Industrial Area Development Act 1974 with a mission to promote and assist industrialization.

Its objectives are: (a) To promote and develop infrastructure for industries in the industrial area such as road, drainage, water, power; (b) To help, support entrepreneurs to setup industries and provide assistance and incentives under the industrial policy of the State; and (c) Dissemination of Information about the Industrial Policy and create an investor friendly atmosphere in the state.

Process of Land Allotment

In the last four days BIADA has earned fame which it might not have since it came into being. On 18th of July 2011, it was exposed that BIADA has allotted several huge plots to sons and daughters of ministers, MLAs and MLCs of JDU-BJP alliance government of Chief Minister Nitish Kumar. The Opposition has since demanded a CBI probe into the allotment of land by the BIADA. They have also demanded Nitish’s resignation. One of the main reasons of protest by Opposition was that the land was given out of turn and even though the applicants did not meet one of the criteria – of being entrepreneur. None of VIP children, it is said, has any background of entrepreneurship.

BIADA invites application for allotment of Land in prescribed format. Application form for Land allotment is submitted along with the following documents:

1. Projects Profile (Three Copies) prepared by Accredited/Approved consultant with information regarding details of item to be produced, land required, Plant & machinery, finance for the project, working capital requirement with layout plan.

2. Personal Bio-data of entrepreneurs along with three attested photographs and identity proof.

3. Demand Draft of Rs.500/- as processing fee and Rs.2000/- per acre (adjustable) as security money.

At a regular interval a concerned committee of BIADA holds a meeting region-wise and disposes of the applications. There are two such scheduled meetings for August. The meeting for Bhagalpur and Darbhanga Regions will be held jointly on 2nd August, 2011 for the Applications received till 18th July, 2011. The meeting for Patna and Muzaffarpur Regions will also be held jointly on 13th August, 2011 for the Applications received till 30th July, 2011.

It looks BIADA does not invite tender for a particular plot of land as it has already fixed rate of land for each Industrial Area, and perhaps here lies the crux of the issue. When rate is open and fixed then many others things, besides prescribed criteria, could go behind allotment. This is possible because the powerful Board of Directors of BIADA is appointed by the Bihar Government.

Organizational Structure of BIADA

According to its own website, BIADA runs under the guidelines and policies of the Board of Directors. The Directors are nominated by the State Govt. under the chairmanship of the Principal Secretary, Department of Industries, Government of Bihar. Managing Director is the executive head of the organisation and works under the overall superintendence and guidance of the Board. With a view to provide quick services to the entrepreneur the whole organisation has been decentralized in four Regional Areas with each area having an executive director.