Bihar govt ready with draft policy for pvt industrial parks

The policy will be unveiled by CM Nitish Kumar at Entrepreneur's Meet, which is scheduled on April 29

A glimmer of hope for investors facing land troubles has begun to appear in the state. Bihar government's draft policy for private industrial parks is almost ready and it will be unveiled by the Chief Minister Nitish Kumar at Udyami Panchayat (Entrepreneur's Meet), which is scheduled on April 29, at Rajgir.

"The draft for the policy is now almost complete," said one of the senior officials of the industries department, "and it will be unveiled by CM at Udyami Panchayat at Rajgir. It will be a major step forward and will help entrepreneurs in a great manner." He added, "We wanted it to be one of the best policies in the countries, therefore we have studied policies of other states. We have also incorporated suggestions of trade and industries bodies in this policy. Those, who want to set up industrial parks in the state, will also be given substantial subsidies." The state government has so far received two informal proposals to set up private industrial parks in the state. "Informal proposals have begun to flowing in. So far, two such proposals have been received. A group of landowners from Mokama, near Patna, have shown interest, while one such proposal came from Madhepura district. We are hopeful that many more investors will come in the coming days," commented that official.

"Bihar has the highest population density in the country," said Industrial Development Commissioner, Naveen Verma told Business Standard a few days ago, "and land unavailability emerged as a biggest bottleneck for the rapid industrialisation of the state. Therefore, we needed to innovate." He said, "We will welcome investors planning to set up private industrial parks here. However, first they have to submit some strong proposals to back their initiatives. If we like their proposals, then we are ready to offer subsidies up to 30-40 percent." The state government is planning to waive off stamp duty and other duties regarding the conversion of land for these investors. Moreover, the industrial units situated at these parks may also be allowed to avail subsidies that are offered under industrial policy of the state government. State government might also help them in developing basic infrastructure. It is also planning to provide electricity to these parks on priority basis.

However, the state government is not ready to get involved in land dealings. "The state government is very serious about this proposal. We will help such investors in their endeavor. However, we would like to clarify that in no way state government will indulge in land deals. The investors have to do this on their own," Verma added.

During last six years, Bihar received investment proposals worth more than Rs 3 lakh crores. However, with a population density of more than 1,100 people per square km, the state government finds it difficult to vacate land. One of the officials of the industries department stated, "We have one of the best industrial policies in the country. But due to industrial land scarcity, the rate of industrialisation is still dismal. Therefore, we are now looking towards private sector."