Bihar brings new project approval system to filter non serious investors
Apart from land, people wanting to invest in Bihar will also have to show their financial strength too
Under this new policy the state government has decided to give more weightage to investors, who have land available to them and money to complete their projects.
"We have been trying to attract new investors in the state for a long time now," Principal Secretary, Industries Department, Naveen Verma told Business Standard, "Our constant efforts have shown results too. However, during the process many non serious investment proposals have also been approved. This has blurred the investment scenario. Therefore, we are now rectifying our mistakes."
"We are now approving proposals of only those investors, who we think have a genuine interest in investing in Bihar. Therefore, we have evolved our approval system accordingly," he added. Since 2006, Bihar has received investment proposal worth more than Rs 3 lakh crore, but the only Rs 5,000 crore worth of investments came on the ground.
Under this new system, the state government has made it mandatory for investors to have land and money available to them.
Verma said, "Bihar has the highest concentration of population in the country. Due to this, many investors find it hard to get land for their projects and ultimately give up without notifying us. We do not want to just add numbers in our files; we want concrete results on the ground. Therefore, we have made land availability compulsory for project approvals."
Apart from land, people wanting to invest in Bihar will also have to show their financial strength too.
The official commented, "In recent years, we have come across many cases, where proposals struck into limbo due to insufficient funds. Hence, we are now asking them show fund availability." The state government has also made it mandatory for investors to submit their project progress report regularly