The proposed NRI cell will help those who wish to invest in the state. It will provide information and help speed up passage of investment proposals through the single-window clearance system.

Modi said the government would also set up a corpus fund with contributions from NRIs for development of the state.

"The idea of a corpus fund was mooted by NRIs who told me to create it at the earliest so they could contribute to it," he said.

Some days ago Bihar chief secretary G.S. Kang had said Indians in the US were keen to invest in the state's hospitality, IT and health sectors. Kang, who headed a team of officials to the US, said: "We have received over half a dozen proposals from them and will study them for clearance."

Bihar is keen to attract foreign investment in the areas of agriculture, health, IT, tourism and infrastructure.

The government is trying to promote the state, often seen as one of the most lawless in India and struggling with highest percentage of population below the poverty line, as a favourable investment destination but has had little success so far.

In 1995, then chief minister Lalu Prasad undertook a foreign trip to attract NRIs to Bihar but did not make much headway. Since then there has been no serious effort by the government to woo NRIs.