Bihar govt may withdraw incentives to new industries: Sushil

Senior BJP leader Sushil Kumar Modi today alleged that the Bihar government was mulling to withdraw various incentives to industries under the proposed industrial policy and said that such a move would be a setback for industrialisation process in the state.
The state government is likely to reduce to 100 per cent in place of existing 300 per cent as compensation on VAT for execution of proposed industrial units in Bihar, the approval for which has already been given, he claimed in a statement.
In addition, the state government is also mulling to scrap 20 per cent capital subsidy to new industries, besides withdrawing exemption from contribution in the employees provident fund in the event of 100 or more employees being hired by the proposed industrial unit, Modi said.

In a setback to new entrepreneurs, the state government may scrap subsidies on account of cost on setting up diesel generator sets, project report, technical knowledge and land development for new industries, besides changing norms for payment of subsidies for stamp duty and land use (the payment for which will be made later in place for existing provision for advanced subsidy), the senior BJP leader said.
If these rollbacks are incorporated in the new industrial policy, the industrialists would be discouraged from investing in Bihar, the former deputy chief minister added.