Jharkhand Development Report Insights

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Jharkhand development report November 2008
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Jharkhand in its Eighth Year

A Study
For
Prabhat Khabar

November 2008

indicus Analytics
Nehru House 2nd Floor, 4 Bahadur Shah Zafar Marg
New Delhi 110002
Phone- 011-42512400/01
Website: www.indicus.net

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Table of Contents
Acknowledgement ...................................................................................................................5
Introduction............................................................................................................................6
Data Qualification..................................................................................................................8
Jharkhand – A Review...........................................................................................................9
State Profile______________________________________________________________9
Gross State Domestic Product Estimates...........................................................................10
Section I Jharkhand in the post liberalization era............................................................11
Section II Jharkhand @ IT today.......................................................................................17
Section III. Jharkhand in its Eighth Year.........................................................................27
A. Governance in Jharkhand_______________________________________________27
1. Law and Order............................................................................................................27
2. Public Finance............................................................................................................35
3. Movement of Prices...................................................................................................42
4. Infrastructure..............................................................................................................44
B. Jharkhand As a Knowledge Economy..........................................................................52
1. Communication..........................................................................................................52
2. Educational Institutions.............................................................................................55
C. Socio-Economic Profile ................................................................................................60
1.Demography................................................................................................................60
2. Workforce ..................................................................................................................63
3. Basic Necessity..........................................................................................................64
4. Health.........................................................................................................................68
5. Education....................................................................................................................71
6. Agriculture.................................................................................................................77
..............................................................................................................................................77
..............................................................................................................................................78
7. Investment Scenario...................................................................................................80
8. Consumer markets......................................................................................................87
9. Fiscal Status...............................................................................................................91
Section IV : The Districts of Jharkhand______________________________________96
1. Health and Civic Attainment ....................................................................................97
2. Education..................................................................................................................100
3. Demography.............................................................................................................102
4. Poverty.....................................................................................................................104
...................................................................................................................................104
5. Economy...................................................................................................................106
6. Overall Performance of the districts........................................................................110

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Section V Jharkhand’s best and worst constituencies...................................................115
Section VI Potential Cities – An evaluation....................................................................119
Section VII Ranking of Eastern Zone States..................................................................121
Section VIII Looking into the future................................................................................123
Bibliography........................................................................................................................132

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Acknowledgement

First and foremost we would like to acknowledge Prabhat Khabar for initiating and supporting
this project for the fourth consecutive year for the people of Jharkhand. We would also like to
thank Shri Harivansh ji for providing us with insightful information and vision in putting
together and backing such a project. We would like to thank the eminent contributors for
taking out their valuable time and sharing their thoughts about Jharkhand.

Team Members

Dr. Sumita Kale
Deepa Nayak
Ankur Gupta

Indicus Analytics, New Delhi
indic@indicus.net
November 2008.

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Introduction

The passing of the Bihar Reorganization Bill gave birth to the 28th state of the nation,
Jharkhand on November 15th 2000 on the occasion of the birth anniversary of the legendary
Bhagwan Birsa Munda. Jharkhand as a state is known as a vast reservoir of natural resources in
terms of forest areas as well as minerals. However, in spite of this immense potential, it has
not been able to utilize them properly and is thus counted among the backward states in the
country. Its inheritance is considered to be one of the major reasons for this backwardness
which is reflected in the development backlog over the years. The widespread unrest among
the naxal community in recent times has further added to the problem. It thus puts a challenge
before the state to provide good governance and to enable equitable growth and socio-
economic progress. With a population size a third of Bihar and community-centered
traditional ethos of tribal people, it will be relatively easier for the nascent state to pass on the
benefits of growth to its citizens equally.

The present study makes an attempt to analyze the strengths and weaknesses of the state,
objectively using government's own data. Various aspects of Jharkhand's economy and the
changes therein over time have been tracked to see the extent of progress in different
indicators of growth and development. In each of the aspects, Jharkhand's status in
comparison to other states has been discussed. Further, a comparative analysis of various
districts of the state has also been presented. Latest available data from various government
and semi-government sources have been used for this analysis. Since this study is the fourth in
the series, data has been updated from the previous edition, where available.

The study is divided into eight sections each dealing with various issues related to
development. Section I focuses on Jharkhand's position vis-à-vis other states in the post-
liberalization phase. Section II examines the potential of the IT/ITES sector in the state. The
third section of the study explores the quality of governance, examines the knowledge and
communication base as well as the socio-economic profile of Jharkhand. The fourth section of
the report deals with the intra-state analysis where the districts of the state are compared. The
fifth section provides a comparative picture of the parliamentary constituencies in the state in
terms of various socio-economic and infrastructure based parameters. Sixth section explores
the potential cities of the state while the seventh section gives the state rankings in the eastern
zone in terms of various socio-economic variables. Gross domestic product and per capita
income of Jharkhand vis-a-vis other states in 2020 has been discussed in the eighth and the
final section.

The states, which are being considered for comparison, are in one way or the other, related to
Jharkhand. We have considered the parent state of Jharkhand, Bihar, new states that were
formed at the same time as Jharkhand, Chhattisgarh and Uttarakhand and the other neighbors
of Jharkhand -West Bengal and Orissa. In some cases, where relevant, we have also
considered states that have performed significantly well in the area being discussed.

This study is a depiction of the current scenario in Jharkhand across different socio-economic
parameters, which will enable readers to understand the various elements crucial for growth

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and development in the state. It will also provide useful insights to the policy makers to take
constructive steps in those areas where the state is lagging behind.

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Data Qualification

Jharkhand was formed only eight years ago and generally the different government
departments take an average of two years to release their data. Hence the data for the year
2006-07, and 2007-08 is not available more majority of the indictors. As a result, for most of
the indicators, the latest data we have is for the period of 2005-06. Hence depending on the
availability of the data the analysis has been done from 2001to 2005-06.

One important point related to the GDP data is that the previous reports contained GDP
figures with 1993-94 as the base year. While the present report gives GDP figures with the
latest released 1999-2000 base year.

Another point worth mentioning is that we have used the revised estimates rather than
budgeted estimates for indicators related to expenditure incurred by the state government on
various sectors like education, health etc. The revised estimates actually gives the estimates
which has been revised and is thus an actual indicator of the amount of expenditure incurred
on health and family welfare. The latest year for which the revised estimate is available is
2005-06.

With a relatively short time span, the data shows a lot of fluctuations during this period. While
analysis for these parameters is being done on the basis of this data, the trends will become
clearer with passage of time and release of the data in forthcoming years.

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Jharkhand – A Review

State Profile

State Jharkhand
Capital Ranchi
Area (sq. km.) 79,714
Population 2001 29,945,829
Density of Population per sq. km. 338
Average Annual growth rate of population 2.1
1991-2001 (%)
Annual Per Capita Income 2007-08 (Rs.) Rs. 23,098
Percentage of Urban Population (%) 22.25
Literacy Rate (%), 2004-05 58.82
Number of Districts 24
Number of Towns 152
Number of Villages 32,616
Prominent Cities Ranchi, Jamshedpur, Dhanbad, Bokaro
Prominent Airports Ranchi
Principal Crops Maize, Rice, Wheat, Pulses
Heavy Engineering, Coal Mining, Tussar Silk,
Major Industries Steel, IT, Tourism

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Gross State Domestic Product Estimates

Table I : GSDP at current prices (Rs. Crores)

GSDP (Rs. Crores) Growth (%)
2002-200 2003-200 2002-20 2003-20 2004-20 2005-0 2006-
States 3 4 2004-2005 2005-06 2006-07 03 04 05 6 07
Jharkhand 38,187 42,494 56,871 62,950 69,752 9.01 11.28 33.83 10.69 10.81
Bihar 65,117 66,961 73,791 79,682 94,251 12.65 2.83 10.2 7.98 18.28
Madhya Pradesh 86,832 102,839 107,657 118,586 128,202 0.1 18.43 4.68 10.15 8.11
Chhattisgarh 32,901 39,803 45,999 51,921 58,323 8.72 20.98 15.57 12.87 12.33
Maharashtra 299,279 337,495 378,839 432,413 476,509 10.32 12.77 12.25 14.14 10.20
Punjab 82,648 89,838 96,592 104,705 123,397 3.71 8.7 7.52 8.4 17.85
West Bengal 168,047 189,099 208,578 236,044 259,057 6.94 12.53 10.3 13.17 9.75
All-India
GDP(99-00 base) 2,265,304 2,549,418 2,855,933 3,250,932 3,790,063 7.86 12.54 12.02 13.83 16.58

Source: Central Statistical Organization
Note: The current series of GDP is based on the new 1999-2000 series.

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Section I Jharkhand in the post liberalization era

The Indian economy saw widespread reforms introduced in the P V Narasimha Rao regime in
early 1990s which led to a spurt in the growth path in the entire nation. It changed the
structure of the economy from emphasis on government in a socialist pattern to a mixed
economy with considerable role for the private sector. For states like Jharkhand, Chhattisgarh
and Uttarakhand which were born in 2000, the early impact of liberalization is difficult to
gauge as data is available in most cases on the undivided states. Moreover the parent states of
Bihar, Madhya Pradesh and Uttar Pradesh are the ones which have been languishing at the
bottom of the economic and social ladder in India for many years. The new states were
formed to break free of the poor governance in the parent states and aim for higher growth
and better development policies. Consequently, new initiatives at the national level are likely to
show less impact on the newly formed state as against the existing ones.

Prevalence of wide disparity in terms of economic and social development characterizes the
federal state of India. Therefore, any reform or policy adopted at the national level is likely to
have diverse impact at the regional level. With the central government taking a back seat in
control, the role of the state governments increased with the relaxation of norms. This made it
easier for some states with better governance like Gujarat and Maharashtra to attract private
investment. Another important point to note is that economic liberalization encompasses
diverse areas in industry, agriculture, trade etc. State-specific characteristics would limit or
enhance the impact of reforms in these areas. For instance, dismantling of industrial licensing
and balanced growth policy meant that industries would locate on economic considerations.
States which had infrastructure in place attracted investment while others whose infrastructure
provision in power, roads etc. was lacking, had to work towards putting in these foundations
first, without the help from the centre. States now have to compete for investment projects,
this increases the burden on the state government for providing a conducive investment
friendly environment. Hence there are positive forces being unleashed across the nation which
states can take advantage of, and at the same time there is reallocation of resources and
increased competition amongst states, which can have a negative effect on growth in some
sectors. Moreover, some areas are still under central government control and have little role
for the private sector, for example coal mining and pricing. This limits the advantage that
accrues to the states like Jharkhand with huge coal reserves.

This article will examine how economic liberalization has impacted Jharkhand, looking at
trends in various parameters like income growth, poverty, health, education etc. It is seen that
while economic growth has spurted, there has been little impact on other parameters. An
attempt is made to give a complete picture of the effect of the reforms despite the constraints
of consistency and comparability of data across the time period under study.

Broadly, parameters evaluated fall into two categories, viz, economic and social. The economic
indicators used are annual growth rate of the state income, i.e the Gross State Domestic
Product and the poverty levels in the state. In terms of state income, there are significant
constraints of data. National accounting series have changed twice in the period since the
eighties and the growth rates have been calculated for three equal intervals, 1986-87 to

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1992-93, 1993-94 to 1999-00, 2000-02, each with a different data series. While these are not
strictly comparable across time, the general trend is clear when compared across states and
with the national picture. Moreover, data are available separately for the divided states only
from 1993-94.

Figure 1 : Growth rate for Real GSDP
12
10.3
9.6
10
8.5
7.4
8
6.6
5.9 6.2
5.9 5.9 5.7
(%)

6 5.0 5.0
4.6 4.7
4.5 4.4
3.9
4 3.2 3.0
2.1 2.1
2

0
Jharkhand Bihar Chhattisgarh Madhya Uttarakhand Uttar Pradesh India
Pradesh
1986-87 to 1992-93
Source: Central Statistical Organization;Note: The three time periods
1993-94 to 1999-00
are based on three different national accounting series -1983-84, 1993-
2000-01 to 2006-07
94 and 1999-00 respectively, which are not strictly comparable across
time.

The graph reveals that there was a spurt in growth in Bihar, including Jharkhand in the nineties
with economic liberalization. However, after the formation of the new state in 2000,
Jharkhand growth has risen in double digits, while Bihar has lagged behind. The picture is
more varied for the other divided states, but the basic trend is clear: growth has increased over
the last two decades and the newly formed states have benefited from separation from their
parent state and having greater control in their own governments.

The manufacturing sector in Jharkhand has seen a leap in growth and investments, especially
in key industries like steel, aluminum, cement etc. With access to its vast mineral resources and
connectivity through a rail network, the state has reaped benefits from the liberalization.
However, with minerals being the strong attractor, other sectors like services for instance have
not grown, as they have in other states in this decade. Moreover, the composition of services
within the sector shows large share of transportation and storage facilities, again an offshoot of
the mining and industrial sector requirements, rather than catering to the needs of the people.

As per the Planning Commission, “Infrastructure is generally defined as the physical
framework of facilities through which goods and services are provided to the public.
Its linkages to the economy are multiple and complex, because it affects production and
consumption directly, creates positive and negative spillover effects and involves large inflow
of expenditure. Proper infrastructure is very much essential for the long term growth of the
nation. Jharkhand was first part of Bihar, a poor state and then as a new state faced the
problem of lack of access to infra structure, viz, proper roads, adequate power supply, proper

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irrigation facilities etc. Although the problem persists in the entire state, it is much more
serious in rural areas. A good network of roads allows for the smooth transport of both
passengers and freight, thereby promoting economic activities in the region. Nearly 44 percent
of the habitations in the state remain to be connected by road in January 2008. Another key
element to gauge the infrastructure base is the power supply. Availability of cheap, abundant
and regular power supply is quite necessary for economic activity. Per capita consumption of
electricity is an important indicator for measuring the prevailing power situation in a state.
While generation capacity directly influences power production and hence availability, it may
not always be a good indicator of power availability in the states of the country as sharing of
power generated in a particular state is possible through the National Power Grid.1 In 2004-05,
per capita consumption of electricity was 402.1 kwH compared to 411.1 at the national level. It
is ironic that only 32 percent of the households have electricity in a state that has a third of
India’s coal reserves and abundant water resources, and also hosts India’s first multipurpose
hydro project, Damodar Valley Corporation. Yet, reforms have reached the state with power
projects now getting an impetus.

The provision of electricity, road and telecom connectivity can give the required impetus to
growth in the villages that will reduce inequality by boosting traditional livelihoods in the
small-scale sector. Though teledensity in India has crossed 25 percent, in Jharkhand there is
only one landline per hundred people and just 2 mobile phones per hundred people. There are
significant challenges to overcome here since forests occupy almost 30 percent of the total
state area, making accessibility a difficult task. However infrastructure provision and
connectivity in particular are essentials for growth and development to be truly inclusive.

Special Economic Zones are a new policy tool for attracting investment on a large scale in
high productivity sectors. Though Jharkhand was born in the same year when the SEZs
started in the country (2000), there are only two SEZs being developed at Adityapur and
Ranchi. Jharkhand government has however made pioneering efforts in introducing
information technology (IT) in governance throughout the state. Citizens now have more
convenient access to government information and it gives them an opportunity to participate
in the decision making process. The state through public private partnerships has connected
state headquarters to block level through the state wide area network popularly known as
Jharnet.

The state of Jharkhand therefore has made progress with liberalization on the economic front,
however, as can be seen below, the fruits are yet to percolate to the masses. Poverty levels of a
particular region determine to a large extent the level of development of that region.
Jharkhand due to its inheritance is classified as one of the poorest states in the country.
Accessibility of state wise poverty related data is a problem. The Planning Commission gives
poverty data after calculation from the expenditure rounds of National Sample Survey
Organization (NSSO). Table 1 gives the proportion of population below poverty line of
Jharkhand compared to other states. The table depicts the existence of stark poverty in the
state. The proportion of population below poverty line of Jharkhand is almost double than the
national level although it is just below its parent state in the latest year for which data are
available separately. The institutions responsible for implementing anti-poverty programmes
are not efficient and only a small section of the poor actually take the benefits.

Development Trends, Tenth Plan Document, Planning Commission
1

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Table 1 Population below poverty line (%)
States 1987-88 1993-94 1999-00 2004-05
Jharkhand 52.1* 55.0* 42.6* 40.3
Bihar 52.1* 55.0* 42.6* 41.4
Chhattisgarh 43.1* 42.5* 37.4* 40.9
Madhya Pradesh 43.1* 42.5* 37.4* 38.3
Uttarakhand 41.5* 40.9* 31.2* 39.6
Uttar Pradesh 41.5* 40.9* 31.2* 32.8
West Bengal 44.7 35.7 27.0 24.7
Maharashtra 40.4 36.9 25.0 30.7
Tamil Nadu 43.4 35.0 21.1 22.5
Orissa 55.6 48.6 47.2 46.4
India 38.9 36.0 26.1 27.5
Source : Planning Commission
Note: Asterisk denotes data for undivided states.

Health and education parameters are examined as the main social indicators. Health and
nutrition are classified among the basic ingredients of human capital. Better provision of
medical facilities is quite essential for the development of any region especially in a newly
formed state as it would engender security in the new state. Jharkhand’s initial health status
indicators are unfavorable as compared with the all-India average and the major Indian states.2
Infant mortality rate (IMR) is one of the most important health indicators and gives an
indication as to how the state has performed in other indicators like level of education,
availability of health facilities etc. Table 1 shows the performance of the states in various
health indicators. The table shows that while Jharkhand has lower IMR than Bihar, it fares
badly in terms of other parameters. Only 34 percent of the children in the age group of 12 to
23 months are fully immunized against diseases. Access to good quality health care is the right
of any citizen and provision of the same is the responsibility of the government, especially in a
state where majority of the citizens have very low incomes to support such expenses.
Jharkhand has to go a long way in improving its health care facilities and providing quality
services to its citizens. Public private partnerships (PPP) in health care which is widely
practiced in almost all the states in recent times, has not yet penetrated the state. For example,
in Karnataka, the Yeshaswini Health Insurance Scheme was started in 2002 by a private health
centre, Narayana Hrudayalaya and now covers over 300 private and government hospitals in
the state where farmers can avail of health care at the cost of just Rs. 10 per month.
Government infrastructure is used for enrolment and premium collection, and in the initial
years, the government also gave a small subsidy towards the insurance premium. For a small
fee, the farmers have access to the best medical care in the state of Karnataka.

2
Jharkhand: Addressing the Challenges of Inclusive Development, The World Bank, 2007

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Table 2 Health Parameters
IMR (Number of children dying Full Immunization
before 1 year for 1000 live births) (%)
States 1992-93 1998-99 2005-06 1992-94 2005-06
49
Jharkhand 89.2* 54.3 10.7* 34.2
60
Bihar 89.2* 73 10.7* 32.8
61
Chhattisgarh 85.2* 90.6 29.2* 48.7
74
Madhya Pradesh 85.2* 86.1 29.2* 40.3
43
Uttarakhand 99.9* 37.6 19.8* 60
71
Uttar Pradesh 99.9* 86.7 19.8* 23
38
West Bengal 81 48.7 34.2 64.3
73
Orissa 112.1 81 36.1 51.8
Source : National Family Health Survey I and II, 1992-93 and 1998-99, SRS
Bulletin
Note : Asterisk denotes data for undivided states

Education is an important indicator of socio-economic development since it improves the
quality of life and by creating human capital, is an integral investment in the development
process. Jharkhand is categorized as one of the educationally backward states of the nation.
One of the indicators of the educational level in a region is the literacy rate, given in figure 2
below. One can see a rise in the literacy rate of Jharkhand but it is still lower than the other
two newly formed states. Again, only 45 percent of children above 10 years completed primary
schooling in the year 2004-05.3 The absence of basic education has a direct effect on the
employability of the labour force in higher income generating jobs. Therefore it is essential for
the government to work towards improving the education condition in the state. Realizing
this, the state government has begun taking specific steps like introducing PPP in education.
The East Singhbhum Jharkhand Education Project (JEP) introduced in the state has been
quite successful in providing better quality of education resulting in lowering of drop out rates.
Under this scheme, private schools were persuaded to admit under-privileged students in
special sessions after regular school hours. This project has shown immediate results in
bringing and retaining students in schools. The UNICEF has since recommended similar
projects be started in other states as well.

However, in case of higher educational institutions, the PPP scheme has not been that
successful. The standard of engineering colleges in the state is not up to the mark and students
prefer to go to better quality institutes in Karnataka, Maharashtra and Andhra Pradesh.
Initiatives should be taken by the private colleges to improve the quality of education. There
are however, new and innovative ideas being experimented with like the ‘Tele education
project (TE)’ under the Jharkhand Space Application Centre’s administration. The TE aims to
provide virtual classrooms to students to enable them to attend classes from their native places
thereby reducing the cost of migration. This provision is especially useful in rural areas where
access to good quality education is a distant dream.

3
Indicus estimates from NSS 61st Round, 2004-05(Employment round)

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Figure 2 : Literacy Rates

80
72.0
69.0
65.0
70 64.0 63.0
58.0 58.0
57.0
60 54.0
49.0
48.0 46.0
50 44.0
43.0 42.0
41.0 41.0
39.0
(%)

35.0
40 34.0
33.0
28.0 27.0
26.0
30

20

10

0
Jharkhand Bihar Chhattisgarh Madhy a Uttaranchal Uttar West Bengal Orissa
Pradesh Pradesh
Source: Census of India and Indicus estimates,
1981 1991 2001
respective years

However, in case of higher educational institutions, the PPP scheme has not been that
successful. The standard of engineering colleges in the state is not up to the mark and students
prefer to go to better quality institutes in Karnataka, Maharashtra and Andhra Pradesh.
Initiatives should be taken by the private colleges to improve the quality of education. There
are however, new and innovative ideas being experimented with like the ‘Tele education
project (TE)’ under the Jharkhand Space Application Centre’s administration. The TE aims to
provide virtual classrooms to students to enable them to attend classes from their native places
thereby reducing the cost of migration. This provision is especially useful in rural areas where
access to good quality education is a distant dream.

The process of liberalization initiated in the 1990s changed the closed Indian economy to a
globalised one, with the private sector playing a major role. However, the impact on the
mineral rich state of Jharkhand has been mixed. Though economic growth has been
boosted with the manufacturing sector benefiting from the changed conducive
environment, the state has lagged behind most of the states in various socio economic
parameters. The spurt in growth has not percolated through to the masses, and this is a
reflection of the poor governance in the state that has not been able to translate the impact
of growth into positive benefits to the poor. It is of course true that much of the problems
have been inherited from its parent state, Bihar. Moreover, the ongoing Naxalite problem
has put hurdles in the government reaching out to many areas. There are therefore many
challenges to overcome, but the major reasons responsible for the slow progress in
development parameters are the weak institutional mechanisms and lack of effective
governance. Economic liberalization can raise growth levels, but for balanced and inclusive
growth, the government has to play an active role. Provision of a secure environment with
effective delivery of basic social provisions like health and education are imperative for the
masses to take part in the benefits stemming from a liberalized economic environment. It is
here that the government of Jharkhand faces an uphill task ahead.

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Section II Jharkhand @ IT today
By Sunil Kr. Barnwal♣ and Syed S. Kazi♣♣

Introduction
The government of Jharkhand has recognized the strategic importance of Information Technology in
improving the society and economy of the state as a whole. Underling the need of information
society, the state has initiated an innovative broad based, enterprise wide approach to service
delivery. The government of Jharkhand is investing towards ICT infrastructure in the state to
leverage the best and the latest in technology in devising solutions to the governance issues in various
areas beginning with the ones which have maximum public interface. The larger realization is that
unless the benefit of ICT reach the village people in the rural areas, the state will not achieve
substantial social and economic growth. The state efforts are reflected in its different projects
initiatives in the areas of infrastructure, applications, establishing new institutions and policy
formulations.
Towards this end, the state has been taking regular initiatives in major verticals to ascertain the status
of underlying infrastructure, human resources, policy regimes, investment climates etc. for setting up
new institutions and computerization of its major departments by rolling different applications
regularly on pilot basis in the districts with the view that once it stabilizes in pilot district, the state
will roll it out in each district to reach to its people with minimum hitch.
The challenges are equally a matter of concern but not insurmountable. Among identified challenges
are expanding the IT infrastructure network, quality human resource development, scaling up of
projects already implemented, and ensuring sustainable outcome of various interventions.

Recent IT Trends

There are many improvisations taking place in the state’s IT applications and deployments. For
instance, earlier ICT applications were not in 3-tier architecture and required sending different forms
from district and block offices to be entered in the main system. This caused a delay in process and
was rather counter effective. The current application is web interactive and paper handling has
reduced a lot now and work is fast.

The following are major new initiatives in Jharkhand’s IT for development:

 Process standardization is being achieved through user interaction by studying at different
departments involving users for standardization. Standardization and simplification was
achieved by dividing the manual process in logical modules of the application software.
 Under new Institutional Framework, Jharkhand Space Application Centre and Jharkhand
Agency for promotion of Information Technology is working in the areas of GIS and
software development activity. Some pioneer work has been done by JSAC like Geological
Mapping and Studies, Soil Mapping and erosion studies, Agriculture / Horticulture Studies,
Forest Resources Mapping and Monitoring, Water Resource Mapping and monitoring,
Village Information System, Geographical Information System, Space Communication,
Urban and Infrastructure Development, Land Records Computerization and Disaster
Management.

M
Mr. Sunil Kr. Barnwal is Additional CEO, JAP-IT, Jharkhand and IG Prison
M♣
MR. Syed Kazi is Programme Officer, Digital Empowerment Foundation, New Delhi

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 New IT polices encourages investments in the state by facilitating single window clearance
within 10 days. The current policies discuss in length regulatory, legal and security needs of
the industry. The state has rendered its support by allowing exemptions from environment
clearance, self-certification for purpose of compliance of acts like Minimum Wages Act,
Factory Act, Water and Pollution Acts etc.
 By improved service delivery now regular departmental information is disseminated with the
help of portal. Tender information is available on portal for whole lot of work now. The
results of examination are available on net for wider and quick access in the state.
 With investment in infrastructure, the State Wide Area Network Connectivity through
Jharnet is available for data, audio and video applications up to block level. All the
information related to Citizen Service Centres will be routed through this network. Jharnet
success will encourage more and more applications to be made available at Citizen Service
Centres for better service to village people. Opening of IIIT will take care of manpower
requirement of the Industry in the state in field of Information Technology. IT Park will
create investment climate for software companies.
 By encouraging the Public and Private Partnership business Model in new project areas, the
state will work towards for improved sustainability and wider participation such as Jharnet,
IIIT etc.
 In the state routine kind of work has been outsourced for better co-ordination such as
manpower outsourcing, and application program development through industry specific and
domain experts for state of the art services and for achieving strict time schedule and budget.
 Further introduction of computer in schools will generate computer savvy people in the
state to use the IT infrastructure in self-growth.
 State IT policy gives lot of incentives for new entrants in IT and BPO companies for
opening their shops in the state for growth of IT sectors. Development of IT Park in this
direction is in progress in Namkum and Jamshedpur.
 The state has provision of a supplementary budget for state level e-governance projects. A
high level committee has been formulated to review the project proposals prepared by
PeMT for adherence to state priorities.
 The state information on portal will save time and money of citizen which they used to
spend visiting different state offices all these days is now available to them which they can
further use in other social and self development.

IT Infrastructure is critical for Growth

Being a newly created state, Jharkhand has its own traditional and emerging infrastructure limitations.
However, the positive trend is the Government of Jharkhand’s extra effort in enabling IT
infrastructure across the state in rapid time. Already the state has been implementing the national
programme of State Wide Area Network (SWAN) which is a statewide high-speed communication
backbone to ensure voice and data connectivity at all blocks & villages, and high speed internal
gateway. Under this Jharkhand State Wide Area Netwok (JHARNET), the State Government is
promoting speed and ease of governance.

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JAP-IT

Jharkhand Agency for Promotion of Information Technology was
conceptualized to accelerate the growth of Information Technology in
Jharkhand and implement the policies of the State Govt. in the area of IT.
The broad objectives were to provide IT inputs to Governments Departments, Agencies and to assist
them in computerization and networking, to co-ordinate with investors and industry, trade
organizations and financial institutions in public and private sector. With above objectives, JAP-IT
geared up for implementing the projects assigned to them and succeeded in disseminating the strides
made by DOIT, Jharkhand through participation in various exhibitions, seminars etc among the
leading IT players of the country and thereby attracting them in the state of Jharkhand.

The need for SWAN has arisen to leverage connectivity benefits; delivery of e-Governance
applications; better monitoring and evaluation; seamless flow of information; availability of
Information to people; efficient delivery of services; internal computerisation and information flow.
Overall, the state ICT infrastructure is focused on four key components: Data Centre, State
Jharkhand State Wide Area Network (JHARNET), Block to Panchayat Connectivity (BPC) and
Common Service Centres (Pragya Kendras).

As of actual implementation, a state of the art State Data Centre is being built by the
Government of Jharkhand to ensure the security, integrity and availability of data with all
government departments through a secured centralised data hosting facility. Jharnet is being
implemented across the state to modernise the government's communication network to act as
a information superhighway since 2005. The network is implemented on the modified Build
Own Operate and Transfer (BOOT) financial model for a period of 5 years. The JharNet is
designed as a state-of-the-art network to provide multiple services like Voice, Data, Video and
Internet communication simultaneously over a single fully Internet Protocol (IP) based
network built across the state of Jharkhand using world class carrier level networking
infrastructure. The Government of Jharkhand has broadly three vertical layers in its
organizational structure viz. the State Headquarters, District Headquarters and Sub-divisional
and Block Headquarters. The JharNet network architecture therefore also consists of three
vertical tiers covering the entire state of Jharkhand where bandwidth connectivity between
each tier is initially 2 Mbps which is easily upgradeable to 8 Mbps as and when required in
future.

Regarding Pragya Kendras, Jharkhand takes pride in being the first state in the entire country
to implement the scheme of Common Service Centre (CSC). Steps have been taken to set up
4,562 CSCs throughout all the panchayats in the state in first phase and 872 CSCs in second
phase to provide e-Governance and other value added services. These CSCs, named Pragya
Kendras in Jharkhand, seek to transform rural areas through the use of ICT and deliver all
hosts of government and private services to the rural people at their doorsteps.

There are key issues in enabling a robust ICT infrastructure across the state. These include-
awareness and timely commitment among stakeholders, infrastructure fragilities, telco issues,
integrating existing connectivity infrastructure, systems integration, loose ends: power, third
party infrastructure, downward connectivity and band-width and expansion issues. However,
efforts continue to ensure the best in class social and physical infrastructure to attract leading
companies to invest in IT and ITES in Jharkhand.

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Jharnet
Govt. of Jharkhand has conceived the Jharkhand State Wide Area Network (JHARNET) to
push forward in the Information Technology in the Government to promote the speed and
ease of governance. It is a Information Superhighway for Jharkhand which carry Multi
Services-Data, Voice and Video. All Government communication and IT infrastructures is
being linked to Jharnet. The Connection will be from State Headquarters up to Block Level
through District and Sub-divisions. The key applications envisaged on the network are Video
Conferencing, Voice and Data Communications, Intarnet Operation, Electronic Data
Interchange (EDI) services, Value Added Networks, Help Desk for JHARNET users,
Information Kiosks, Data Warehousing and Unified Messaging Services (UMS) etc. Benefits
of Jharnet include connectivity of the entire state at on go under one Secured intranet. Jharnet
forms a Data Super Highway of Jharkhand and runs Intra & Inter-departmental applications.

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Leveraging IT for e-Governance

e-Governance and pervasive use of information technology presents the Information and
Communication Technologies (ICT) as a compelling tool to the government in its aforementioned
roles. The introduction of ICT to government presents an opportunity to provide government
services to a wider audience at a lower cost of availing services. Especially, in a vast and highly
populated country like India, ICT also helps to improve the coverage of services while also
facilitating faster processing of services requests. This enables provisioning of satisfactory services to
a larger number of people without the need to open more physical offices and recruiting more staff
thereby improving efficiency and productivity of government. The savings thus made may be
ploughed back into the welfare and development activities of the government. As the use of ICT
allows the government to conduct its activities in a totally different environment, introduction of
ICT’s is an opportunity to re-look the archaic processes and procedures and re-engineer them for the
benefit of both the departments and the masses. This process improvement has a huge impact on the
efficiency and speed of government services delivery.
The Government of Jharkhand is cognizant of the significant role that may be played by the
government in improving the lives of its citizens. The government can improve the lives of its
citizens by ensuring that demanding and availing government services is made easier and easily
accessible to every citizen at a time and place of their convenience. This appreciation is manifested in
its various development initiatives such as computerization of departments, reforming the
governance systems as also in its quest for reaching out to the citizenry for proactive delivery of
government services. Further, the government can help in the elimination of poverty and general
economic prosperity by enhancing the investment climate by making it easier for businesses to
conduct business in a safe and red-tape free environment.
The Government of Jharkhand’s appreciation of the above is evident from the following select
initiatives taken by the government for improving services delivery to citizens:
• State-wide high speed communication backbone – Jharnet, has been established to
ensure voice & data connectivity at all blocks & villages.
• Pragya Centers or Citizen Services Centers are being established in each of the 4,562
Panchayats to provide government services using the ICT
• An internet portal has been established as a one stop shop to get information and
avail services from the GoJ
•
A slew of computerization and automation initiatives in important citizen interfacing
departments such as the commercial taxes, revenue, transport, social welfare etc.
have been undertaken to improve services delivery. A comprehensive list is given as
an answer to the question 2 below.
Furthermore, acknowledging the vast employment generating potential of the IT services industry,
the State Government actively promotes establishment of units for providing IT-Services (hardware/
software based etc.) and IT-enabled Services (Call Centre, Medical Transcription, BPO, etc.). State
Government also provides incentives necessary to foster rapid growth of the industry by preferential
allotment of land to IT Industry.

The Government of Jharkhand has undertaken a wide ranging and well thought out e-
Governance program as enunciated in its e-Governance roadmap. Instead of ad-hoc
computerization, the state has leveraged cost benefit analysis to prioritize the revenue
generation and citizen interfacing departments for e-Governance initiatives so as to maximize

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the returns on the money spent on e-Governance and build support for e-Governance by
showing tangible results. Some of the successful initiatives are listed below:

S. N Initiative Description Status
Information Technology Department
1 Common Jharkhand is the pioneer State in the Service Centre
Service Centres country to set up 4,562 CSCs Agencies have been
(CSCs) throughout all the panchayats in selected for all five
Jharkhand to provide G2C and B2C Divisions. Various
services. G2C services have
been rolled out.

2 JharNet JharNet is the backbone network for In use
(SWAN) voice, data and video communication
throughout the state of Jharkhand. It
connects the State HQ to all the
Districts with 10 Mbps backbone while
from the District level to the Sub-
division level down to Block level with
2 Mbps connectivity.

3 Jharkhand A single point entry portal for the state Operational
Portal of Jharkhand for providing government
information and services to citizens and
businesses.
4 FileTracker Its main objective is to replace the Operational
manual record keeping system for files
and letters with a more efficient
paperless automated system. The other
objectives of the system are to provide
necessary inputs to the decision makers
about work studies, providing an
efficient monitoring of pending issues
and also provide an efficient way to
search the letters or files and to
ascertain their present status.

Revenue & Land Reforms

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5 Digitization of
Khatiyan and Unicode-based application software has The pilot project
Register II been developed for the Land Record has been successfully
Computerization in the state. completed in
Lohardaga and East
Singhbhum districts

Registration & Stamps
6 J.A.R.S.
(Jharkhand A system which allows citizens to apply Operational in 10
Automated electronically and scrutinize and verify districts.
Registration the documents automatically as well as
System) store all records electronically.

Commercial Taxes Department
7 Integrated Dealer information system, Operational
Online Tax accounting information system,
Commercial Assessment information system,
Taxes System Return processing system,
& other departmental functions
Finance
8 Centralized To bring core Treasury functions into Implemented and in
Treasury one unified centralized system use in all 31 locations.
management
system

9 GPF through Computerization of GPF system Operational
electronic
network

Mines & Geology
10 GIS To have extensive details of minerals Operational
present in each of the Districts and
other mineral related issues

Welfare Department
11 Website The website provides details of the Operational
Department and the Department
expects to augment the scope of
website by allowing citizens to carry out
all their transactions through it.

Others

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12 Prison The main purpose behind the Operational
Management implementation of the Prison
System Management System (PMS) was to
enhance the administrative capabilities
of the jails in terms of monitoring and
security of the prison while improving
the efficiency and productivity of the
Prisons.
13 Tender An internet based application has been Operational
Information developed and deployed that enables
System the following on the internet:
publishing information about tenders,
sending the information on tenders of
interest to registered private players,
uploading of tender documents etc.
14 Employment An online system for registration and Operational
Exchange renewal of registration at employment
computerization exchanges has been developed. The
application also allows transmitting
data to employers directly.
15 Computer Supply of computers systems and The RFP has been
education in provision for computer education approved and the
Schools services in Schools from class IX to vendor selection in in
Class XII progress.

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The Trend in the ITES sector

One of the policy thrust of the Government of Jharkhand is ensuring best in class social and physical
infrastructure to attract leading companies to invest in IT & ITES in Jharkhand. Of late there has
been increasing trends in the Information Technology Enabled Services (ITES) in the state. Business
Process Outsourcing (BPO) and call centres are new trends. Already a number of ITES majors have
applied for setting up units at the International Incubation Facility Centre (IIFC), Software
Technology Parks of India (STPI) in Ranchi, at a cost of around Rs 10 crore. The state government
has put up a demand request to the Union Ministry of Communications and IT to approve proposals
to set up 3 more STPIs in the state. The new STPIs are identified in Jamshedpur, Bokaro and
Dumka.

Already various local and national ITES companies have evinced interest in setting up middle-level
units in the BPO and call centre sectors at the IIFC. Jamshedpur-based Alpine Techno has already
started its operations with 12 seats. It plans to increase it to 48 seats within a year. MdBoss-ew, Delhi,
E-Octopus, Ranchi, Cysys Technologies, Bhubaneswar and 7Hills, Kolkata are the others who have
implemented their pilot projects and have started their operations on the Rs 3,000-per-seat plug-and-
play facility. Talks are also going on with key ITES companies to set up ITES units in the state.

The scope is tremendous in the IT and ITES sector in the state. As per a NASSCOM-McKinsey
study, the state can contribute enormously in the US$ 24 billion industry in India in 2008. Despite
Kolkata and Bhubaneswar taking the lead, the Government of Jharkhand with its vast untapped
potential is keen to boost the ITES sector in the state.

The key identified challenges in the IT and ITES sector are equally worrisome at times. The absence
of direct connectivity, either by rail or air, between Jharkhand and the southern states like
Hyderabad and Bangalore has affected the prospects of the IT and ITES sector in the state. There
are concerns that the connectivity issue is holding back greater investments in this sector. Another
challenge is that ITES units in the state are facing the problem of getting adequate number of people
with required proficiency in English language. To address this situation, necessary steps are taken to
promote/encourage establishment of institutions for training in spoken English.

Fund crunch is holding back potential entrepreneurs in the state to set up/expand units in ITES.
Again, to help development of this industry in Jharkhand, the Department of Industries is looking
towards setting up special funds to like venture capital fund to help the upcoming establishments. In
this context, coordination with SIDBI and other financial institutions is being established. Another
requirement is units engaged in medical transcription require a different work culture. Such
establishments need 24 hours working time. To address this, the Government of Jharkhand has been
considering in declaring this sector as essential service.

Recent advances in the state and in other states

The state has developed the IT policy keeping in mind the enhanced opportunities that IT
will unleash over the next decade. These opportunities will allow corporates to create immense
value, provide significant opportunities for talent development and employment, and enhance
efficiencies in governance and social service. Therefore, the core objective of the new IT
policy is to allow different constituents within the state to leverage this opportunity. As
stated, the core objective of the IT Policy is to facilitate improved communications and

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infrastructure while implementing a statewide high-speed communication backbone, ensure
voice and data connectivity at all blocks and villages, and high speed internal gateway. The
objective is to develop human resources and facilitate effective governance in all major
departments and timely service delivery to the citizens.
The state has planned to train at least 25 to 30 e-governance Champions amongst State
officials and to make them responsible to implement the e-governance roadmap of Jharkhand.
It goes without saying that implementation of e-governance projects will create a totally
transformed work environment for employees in all departments and will radically redefine the
way services are offered to citizens and businesses.
Currently, e-District project which seeks to make the district administration more responsive
and accessible is very high on the state’s agenda. Decision support system for disaster
assessment and management is also being conceptualized. It has also planned to resume
information system and a web-based cultural Atlas of the state. Tele-medicine is also going to
be a milestone in the area of medicine apart from another ambitious project called tele-
education to provide basic education in a mission mode. In a nutshell, information
technologies are being envisaged to deliver a variety of information services to the citizens
effectively and efficiently in near future.

Identifying key challenges
As like any other newly created and emerging State, Jharkhand has its own share of challenges
in IT for development and its deployment. The foremost is the infrastructure barrier. The
communications and information infrastructure and its state wide implementation and running
are a huge task at hand. This includes increasing cost in upgrading of hardware and software
and setting up faster networks, higher level machines, more complex software and more
capable professionals. As mentioned, developing quality human resource is a challenge. Until
and unless the state has put greater efforts in education and information literacy it would be
difficult to bridge digital divide in the state and facilitate development. The challenge is to
reduce gaps in poor access to computers and information and communication technology
amongst large section of the state population who are living in the periphery of the state’s
social and economic set ups. Then there are the content barriers in terms of facilitating local
language digital content in meeting information and communication needs of the local
population.

Looking Ahead
After creation of DoIT, Jharkhand’s initiatives in the area of application of ICT in improving
service and governance were scaled up to harness the advantages of ICT applications. While
the state has been pioneer in establishment of SWAN and Common Service Centre Projects,
its progress in computerization of key departments such as treasuries, commercial taxes,
registration etc. has been note worthy. In addition, IT department is pro-actively trying to
push for computerization of operations in almost all the state departments so as to have an
absolutely integrated service delivery system in near future.
Successful implementation and sustenance of e-Governance programmes for the state will
depend on support, guidance and direction from the top staff of various state departments.
The need was felt to train officials occupying decision making levels and managerial posts who

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will be trained as ‘e-Champions’ to be equipped with necessary skills to lead the successful
implementation of e-governance projects in the state.
*******

Section III. Jharkhand in its Eighth Year

A. Governance in Jharkhand

This section explores effectiveness of governance in Jharkhand. Good governance is the
prerequisite for the overall development of a region. Good governance can be gauged from
various angles like maintenance of law and order, management of finances of the government,
control in the movement in prices and development in infrastructure.

1. Law and Order

a. Value of property stolen & recovered

The manner through which the property is secured in a particular region depicts how efficient
is the state in securing the basic needs of its citizens.

Table A.1 (a): Percentage of stolen property recovered

States 2003 2004 2005 2006
Jharkhand 20.6 16.2 18.3 16.3
Bihar 15.0 15.9 16.5 16.0
Uttarakhand 32.0 27.6 29.0 29.4
Chhattisgarh 28.9 33.2 50.7 22.8
West Bengal 23.7 22.9 22.0 20.7
Orissa 39.0 38.1 39.9 33.4
India 25.8 19.9 23.9 25.3

Source: Crime In India, National Crime Record Bureau, 2006

• In Jharkhand, the percentage of stolen property recovered has reduced from
2005 to 2006. This depicts that volatile law and order situation is prevalent in
the state and the government has not been able to curb this problem
effectively.

• However, the percentage recovery of stolen property in Jharkhand is
marginally better than its parent state, Bihar.

• Among the newly formed states, Uttarakhand has been the most efficient in
recovering stolen property followed by Chhattisgarh.

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• Neighboring states like Orissa and West Bengal also fare well on this front
compared to Jharkhand.

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b. Juvenile Delinquency

Juvenile delinquency refers to criminal acts committed by children below 18 years of age. Since
this criminal act is related to children who are the future citizens, juvenile delinquency has
become a major social problem and thus a major concern for the state government. The
crimes committed by the juveniles fall under two categories – under the Indian Penal Code
(IPC) and Under Special Laws (SL).

Table A.1 (b): Incidence of crimes committed by Juveniles
States 2003 2004 2005 2006
Jharkhand 821 821 189 881
Bihar 260 214 286 210
Uttarakhand 28 36 23 106
Chhattisgarh 1,179 1,819 2,924 2053
West Bengal 106 75 131 99
Orissa 219 261 430 430
India 25,686 24,985 25,601 25817


• Jharkhand has shown considerable rise in the incidence of crimes committed
by the juveniles between 2005 and 2006. Though the 2005 low figure appears
to be an aberration, the number of crimes in 2006 exceed the previous years
levels, a warning to the state government to achieve the betterment of
children below 18 years.

• Compared to its parent state, Jharkhand has larger incidence of juvenile crimes
committed in 2006. It is more than four times that of Bihar.

• Among the newly formed states, Chhattisgarh has the highest incidence of
juvenile delinquency followed by Jharkhand.

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c. Incidence of Murder

Under the Indian Penal Code (IPC) murders come under the category of violent crimes. The
measure of murder used here includes all the reported cases of murder. The incidence of
murder in a particular region indicates the effectiveness of the police administration prevalent
in that particular region.

Table A.1 (c): Incidence of Murder
Change in
2001-06
State 2001 2003 2004 2005 2006 (%)
-1.0
Jharkhand 1,507 1,482 1,488 1,523 1,492
-10.8
Bihar 3,643 3,772 3,948 3,471 3,249
-13.3
Uttarakhand 316 293 262 279 274
24.8
Chhattisgarh 880 797 927 1,013 1,098
-10.6
West Bengal 1,594 1,464 1,425 1,453 1,425
17.4
Orissa 987 1,102 1,066 1,079 1,159
-10.3
India 36,202 33,821 33,608 32,200 32,481

• In Jharkhand the number of reported murders slightly decreased in 2006
compared to the previous year. This is a solace for the state government but
continued efforts in this direction are needed to bring in good law & order
situation in the state.
• Among the newly formed states, Uttarakhand has fared well compared to the
other two states.
• Among the neighboring states, Orissa has shown considerable rise in murders
since 2001.

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d. Incidence of Rape

Rape is one of the major crimes against women and incidence of rape in a particular region is
an indicator of the extent of safety provided to them. Over the years the punishment of
committing rape has become stricter with an aim to check this heinous crime. While it is true
that crimes against women are under-reported, the changes over time do reflect the trends.
For the present analysis the number of reported cases of rape in respective years has been
considered.

Table A.1 (d): Incidence of Rape
Change in
State 2001 2003 2004 2005 2006 2001-06 (%)
Jharkhand 567 1,482 797 753 799 40.92
Bihar 888 3,772 1,390 1,147 1,232 38.74
Uttarakhand 74 293 115 133 147 98.65
Chhattisgarh 959 797 969 990 995 3.75
Orissa 790 1,102 770 799 985 24.68
India 16,075 33,821 18,233 17,651 19,348 20.36


• Jharkhand reported an increase of about 40 percent in the number of rapes in
a time span of five years (2001 to 2006).
• Together Bihar and Jharkhand make this part of eastern India increasingly
unsafe for women in terms of incidence of rape.
• Jharkhand has fared well compared to Uttarakhand where the rate of growth
in incidence is very high. However, it is far behind Chhattisgarh where the rate
of growth in incidence of rape is quite low.

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e. Incidence of Crime Against Women and Child

Crimes against women include rape, kidnapping & abduction, molestation, sexual harassment,
forced prostitution, dowry deaths and importation of girls (NCRB, 2003). Under the Indian
Penal Code (IPC) punishable crimes against children include infanticide, rape, kidnapping &
abduction, foeticide, exposure and abandonment, procuration, selling and buying of girls,
forced domestic and economic duties, and other unnatural duties. For the present discussion,
all reported cases of crimes against women and children in the respective year have been
considered.

Table A.1(e): Incidence of Crime against Women and Children

Change in
2001-06
State 2001 2002 2003 2004 2005 2006 (%)
Jharkhand 2,270 2,601 2,132 1,887 2,641 3,091 36.17
Bihar 5,439 5,800 4,563 6,107 6,134 6,806 25.13
Chhattisgarh 4,574 8,915 4,935 2,307 4,596 4,995 9.20
Uttarakhand 795 897 745 750 862 1,089 36.98
West Bengal 6,737 7,017 4,199 9,244 12,123 13,217 96.19
Orissa 5,425 4,835 4,383 2,744 6,335 6,979 28.65
India 154,609 158,147 144,353 102,504 170,528 183,732 18.84

• Jharkhand registered a decline in the incidence of crime committed against
women and children in 2004 since 2001 but the numbers increased thereafter.
• Among the newer states, Uttarakhand has recorded the lowest incidence of
crime committed against women and children followed by Jharkhand in 2005.
• Jharkhand lies far below its neighbouring state, West Bengal and mother state
Bihar where the incidence of crime committed against women and children is
considerably high.

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f. Incidence of Crime Against Schedule Castes and Schedule Tribes

The Constitution of India provides that the state shall promote the social and economic
upliftment of the weaker sections like Schedule Castes and Schedule Tribes. Since
independence, various laws have been passed to prevent them from injustice and exploitation.
As per Census 2001, SC & ST constitute around 40% of the total population of Jharkhand and
thus crime committed against these sections indicates the lack of equality in the state and
ineffectiveness of governance

The crimes against Schedule Castes/ Schedule Tribes are broadly categorized under two
categories
1. Under the Indian Penal Code (IPC)
It includes crimes like murder, hurt, rape, kidnapping & abduction, dacoity, robbery, arson,
others (other classified IPC crimes)
2. Under Special Laws (SL)
It includes the crimes which come under Protection of Civil Rights Acts, 1955, Prevention
of Atrocities Act 1989.
For the following discussion, all the reported cases of crimes against Schedule Castes and
Schedule Tribes in the respective years have been taken.

Table A.1 (f): Incidence of Crime against SC and ST

Change in
State 2001 2003 2004 2005 2006 2001-06 (%)
Jharkhand 440 184 249 760 665 51.14
Bihar 1,350 1,799 2,691 1,906 2,099 55.48
Uttarakhand 186 134 140 100 69 -62.90
Chhattisgarh 987 1,483 1,374 951 1,027 4.05
Orissa 2,468 1,641 1,917 2,041 1,502 -39.14
India 39,718 32,141 32,422 31,840 32,861 -17.26


• Crimes committed against SCs and STs have decreased in 2006 compared to
2005 although the incidence had increased in previous years.
• Among the newly formed states, Uttarakhand has performed well compared to
others.
• Crime has increased at all India level marginally.

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g. Civil and Armed Police Strength

Police force is essential for maintaining law and order, combating crime and regulating
traffic. It is important for a state to have adequate police force, which should keep on
increasing with the increase in population. Development and growth are feasible only
when there is peace and order in the civil life of a state and the presence of a strong police
force is essential for enforcing the law of the land and combating crime.

Table A.1(g)Civil and Armed Police strength
Change in 2001-06
States 2002 2003 2004 2005 2006 (%)
Jharkhand 8,930 17,659 20,992 24,563 25,730 188.13
Bihar 48,968 42,707 49,590 51,046 43,273 -11.63
Uttarakhand 9,092 10,373 12,173 11,947 9,518 4.69
Chhattisgarh 10,909 12,715 20,350 23,350 18,147 66.35
West Bengal 61,727 62,343 81,749 80,039 61,393 -0.54
Orissa 27,392 27,044 35,265 34,911 27,913 1.90
India 1,015,416 1,025,777 1,337,183 1,342,858 1,091,899 7.53


• The strength of police has increased in Jharkhand in 2006 compared to 2005. This may
be attributed to increased Naxalite movement in the state.

• Other states have experienced reduction in the civil and armed police strengths.

• An important insight derived from the table is that in Jharkhand the strength of police
is high. In spite of this high presence of police personnel in Jharkhand, the crime
committed is not low. This calls for the police strength to be more efficient in
maintaining law and order in the state.

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2. Public Finance

a. Expenditure on Health, and Family Welfare

Health and Family Welfare are crucial inputs into the well being of the population and the
expenditure by the government in this sector indicates how seriously this commitment is
taken. Public health & family welfare are some of the public services provided by the
government. Expenditure in this sector reflects the proportion of total expenditure that the
state invests in these public services.

Table A.2 (a): Share of expenditure on Health and Family Welfare in total disbursements (%)
States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Jharkhand 4.9 4.2 3.3 2.9 5.8 6.3
Bihar 4.9 4.2 2.9 2.6 2.6 4.4
Chhattisgarh 4.3 4.0 0.9 1.3 1.4 3.9
Madhya Pradesh 4.1 4.1 1.4 1.4 1.5 4
Orissa 3.7 3.8 1.6 2.2 2.8 3.4
Uttar Pradesh 3.6 3.8 0.9 2.1 2.6 6.4
Uttarakhand 4.4 3.8 0.7 2.3 2.4 4.6
West Bengal 5.0 4.9 1.1 1.3 1.6 4.4
India 4.4 4.1 1.4 1.8 2.1 4.1

Source : Reserve Bank of India; Budget Documents of State Governments

• The percentage share of expenditure on health & family welfare in total expenditure
has been higher in Jharkhand than that of other states except Uttar Pradesh where it is
slightly higher. A possible reason might be that as a new state, Jharkhand is in the
process of developing its overall infrastructural facilities for improving human resource
potential which includes setting up hospitals, primary healthcare centres etc.

• The expenditure incurred by Jharkhand on health and family welfare is comparatively
higher than other newly formed states, its neighbouring states as well as the national
average thereby signifying that the state invests more than the national average on public
services which is a positive sign from the perspective of long term progress of the state.

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b. Share of expenditure on education to total disbursements

A major priority of governments in developing economies is to build on human capital by
improving access to and the quality of educational facilities to all sections of the society. The
share of expenditure on education in total expenditure of the state budgets is just one indicator
of the commitment of the state to fulfilling this objective.

Table A.2 (b): Share of expenditure on education to total disbursements (%)
States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Jharkhand 16.2 19.0 11.5 11.7 13.5 15.2
Bihar 20.7 18.4 14.3 13.9 14.2 17.5
Madhya Pradesh 12.5 12.2 4.2 3.9 4.2 11.9
Chhattisgarh 12.4 11.0 3.1 4.5 4.8 13.2
Orissa 12.4 11.0 3.1 4.5 4.8 12.6
Uttar Pradesh 16.0 14.6 2.9 6.5 8.0 15.2
Uttarakhand 21.1 20.0 3.6 9.2 9.0 16.9
India 16.1 15.0 5.0 6.3 7.2 14.2

Source : Reserve Bank of India; Budget Documents of State Governments

• Share of educational expenditure out of total expenditure in Jharkhand is slightly higher
than the All India figure.

• The share of educational expenditure out of total expenditure spent by Jharkhand is also
comparatively higher than the newly formed state of Chhattisgarh.

• Jharkhand also spends larger share of its budget on education compared to its
neighbouring states like Orissa.

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c. Expenditure on Administration

Expenditure on administration includes the revenue expenditure of the state government in
the administration of the state in the respective year. Administrative activities include activities
like Secretariat-General Services, District Administration Services, Police, Public Works etc. It
is an important measure of the importance given to administrative activities.

Table A.2 (c): Percentage of Total Expenditure on Administration

States 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Jharkhand 10.7 9.0 7.2 6.7 9.7 9.0
Bihar 9.6 8.1 5.3 5.7 5.5 6.8
Chhattisgarh 6.4 6.4 1.3 1.7 2.4 2.2
Uttarakhand 9.5 7.4 1.4 4.1 3.7 2.8
West Bengal 6.5 6.3 1.4 1.8 2.0 1.4
Orissa 6.7 4.2 2.1 2.4 2.8 3.1
India 7.1 6.5 2.2 2.7 3.2 2.2
Source: Reserve Bank of India , Respective Years

• Jharkhand spends a considerable share of almost 9 percent of its total expenditure on
administrative activities.

• Jharkhand spends a larger share of expenditure on administration compared to other
newly formed states and other neighbouring states.

• The percentage share of all India expenditure on administrative activities is also much
lower than Jharkhand’s percentage share.

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Jharkhand Development Report Insights

Jharkhand Development Report Insights

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Jharkhand Development Report Insights