Bihar govt asks SME investors to step up production

State government is trying the old carrot and stick rule with small and medium investors. It has decided to provide land to these investors. However, in return government is asking them to start production as soon as possible.

"We have very limited land," said Industries Minister of Bihar, Renu Devi, "and a big population, which is dependent on this land for its livelihood. So, we cannot allow hoarding of land." She added, "Meanwhile, industrialisation is also very important. Therefore, we are formulating a new way. We are providing land to various small and medium investors, with a written assurance that they will begin production within a set timeline. If they fail, we will have the right to cancel their land allotments."

 

According to her, the state government is developing new industrial parks. It is also trying to take back unused land blocks in the old industrial parks. She said, "Till July, we had allotted land to 178 industrial units. From this, 11 units have already started production and 89 units were in different phases of construction. However, work was either too slow or not started at all on the rest of the 78 units. So, we have decided to cancel their allotments."

"It was not a hasty decision. We looked into every aspect and then went ahead. We have very limited industrial land. Therefore we want better utilisation of our resources and we cannot allow hoarding of our precious industrial land," added the minister. She said, "It will encourage faster execution of work, which in turn will create more opportunities in terms of employment and investment."

However, the minister accepts that there are hurdles in the systems. "Delays do not always mean mala-fide intent. Sometimes there are genuine reasons too. So, we have decided to set up a committee, which will look into the problems of investors, whose projects are running behind the schedule. It will meet such investors and try to understand their point of view. It will also have the authority to cancel the land allotments," said the minister.