Chief minister Jitan Ram Manjhi inaugurates the steel processing unit at Agamkuan on Saturday. Picture by Jai Prakash

Patna, Oct. 25: Chief minister Jitan Ram Manjhi as well as his predecessor Nitish Kumar’s vision of emphasis on smaller industrial units rather than waiting for big-ticket investments seems to have started showing results.

A baby step in this regard was put on Saturday with the inauguration of a steel-processing unit of Patna-based A.V. Ispat Pvt. Ltd at Agamkuan. The fully automated facility with a monthly processing capacity of around 4,000 tonnes of coil into steel sheets has been set up by city-based entrepreneur Vinod Kheria using an estimated outlay of Rs 4 crore in mere 180 days.

Manjhi, during the inaugural event of the processing facility today, once again emphasised on smaller industrial units. “We are fine even if multi-national companies do not want to come to Bihar as we can do well with entrepreneurs from within the state making small investments here only,” Manjhi said.

Manjhi had spoken on the same lines at a function organised by the Bihar State Foodgrain Businessmen’s Association on September 2.

Manjhi’s views on investments is in line with those of Nitish, who, during a meeting of the State-Level Bankers’ Committee last year, had agreed that while big-ticket investments in Bihar were not forthcoming, the state had good potential for small investments. “It is the drops of water which will eventually fill a pot,” Nitish had said, adding that they were promoting small investments now.

The inauguration of the steel-processing unit of A.V. Ispat today is being largely perceived as much- needed boost to the metal industry in the state, especially after Bihar lost Jamshedpur, the lone steel city of the region in November 2000 after Jharkhand was carved out.

Claimed to be the exclusive dealer of Steel Authority of India (SAIL), A.V. Ispat would get its raw material — coil — from big steel manufacturing firms, including Jindal Steel, Tata Steel and Bhushan Steel among other. The supply of the finished products — steel sheets — would be made available to wholesalers, steel traders and even government agencies primarily in Bihar.

The proprietors of the maiden steel processing plant claimed that its advantage would be in the form of lower prices of steel sheets compared to those being procured from outside the state. “The requirement of customised steel in the state is enormous and our plant would prove to be a boon from the supply side. It would be a win-win situation for the consumers as well as the state government. While the consumer would get steel sheets at lower prices due to reduction in transportation cost, the government would get a share in the revenue generated in the form of taxes,” said Vinod, director, A.V. Ispat.