CM Cycle Yojna attracts major investors to state

PATNA: This week, when members of the state assembly debate over the first supplementary budget presented by deputy CM Sushil Kumar Modi before its passage by the House, they might gloss over or just shrug their shoulders over a small sum Rs 19.32 crore that is to be given to ninth standard boys and girls studying in government high schools under the CM’s Cycle Yojana.

The CM Cycle Yojna of giving cycles to the boys and girls of 9th standard, has triggered a big investment opportunity in the state,

To fecilitate this, three bicycle manufacturing companies in the country have shown interest to have their manufacturing units in Bihar. The three companies, as industries department principal secretary C K Mishra said, are TI Cycles, Hero Cycle, and Avon Cycle. “Bihar, with its CM’s Cycle Yojana, has the strength and capacity to absorb cycles manufactured within the state,” he added.

It is learnt that TI Cycles, with investment proposal of Rs 45 crore, has identified land in Hajipur industrial area, and the construction work, too, has been started. Representatives of Hero Cycle, with investment proposal of Rs 200 crore, have done the survey work with regard to their land at one or two places, a source said. Similarly, Avon Cycle, which is the biggest manufacturer of cycles in the country, has an investment proposal of around Rs 50 crore, and is also busy identifying the land for its manufacturing unit in the state.

According to sources, the rising steel prices have forced cycle manufacturing companies to hike the prices of bicycles, on the one hand, and they have been also looking for an assured market, on the other hand. Bihar, with its CM’s Cycle Yojana, has come into a position of its own to provide it.

It is being felt that Bihar can afford absorption of around five lakh bicycles manufactured annually. Of the five lakh cycles produced annually, four lakh customers would be from among the ninth standard students and another one lakh would be the general customers.

This overall trend would be available over the next three years, implying the production and sale of 15 lakh bicycles during the period. The change, including the production and sale of high-end bicycles, is expected to be on the higher side later to sustain the cycle manufacturing industry, on the one hand, and of spare parts manufacturers, on the other.