Nearly 50 lac MT of paddy is produced annually in Bihar spread over an area of around 40 lac Ha. Bihar is known for some famous fine varieties rice including Katarani rice, renownedfor its special aroma, produced in Bhagalpur- Munger region. Patna rice isanother fine variety of the State. Districts like Rohtas, Kaimur, Aurangabad,Bhojpur and Buxar in south-west region, are known as the “rice bowl “ofthe State. ‘Sona Chood’ of Bhojpur region is yet another scented variety.These districts account for more than 30% of rice production and have athriving rice milling cluster.Bihar is also one of the largest markets for milled rice. In fact, installed capacity of rice milling is not enoughto meet the existing demand and existing mills also require expansion and modernization. Thus, there is a largescope for setting up new and modern rice mills in the State which can make variety of rice products. There arealso significant opportunities in utilization of by products for making starch, bran oil etc. for .Finally, the large paddy production also offers opportunities for setting up husk based power generation in theState. The present productivity level at around 15 Quintal/Hectare is expected to increase to around 25 by2011-12 Qtl/Ha bringing in further opportunities for potential entrepreneurs.