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Bihar is now mulling a unique proposition under which it would provide land to investors in return of stakes in their projects.
According to the state government officials, the profits earned from these projects will be spent on the development of the local area.
"Land unavailability is one of the biggest bottlenecks in the rapid industrialisation of the state," Industries Secretary Naveen Verma told Business Standard. "Therefore, we are finding new ways to help investors. We are right now considering several avenues for this and this is one of them. It is a win-win proposition for all of the stakeholders."
Under this proposed scheme, the state government is pondering on a proposal to provide government land to entrepreneurs in return of stakes in their projects.
"We have thousands of acres of unused land scattered over the state. If we utilise it properly, it will be very helpful in the development of the state," Verma added.
He said, "We are thinking of providing land to the entrepreneurs according to their need and in return they would have to give us stake in their projects equal to the value of the land. We use the circle rate for the valuation of the land, which is normally much lower than the market price. Therefore, it would be good deal for the entrepreneurs. In return, we will get stakes in the projects, which will be benefit in the long run." The state government also plans to use the profit for the local area development. The official commented, "After we realise our costs, the profit will be used for the local area development. Therefore it is beneficial for the state also."
The government says it is considering setting up a committee of officials to choose the most viable projects.
According to the suggestions of the committee, the state government will provide land. "There will be proper checks and balances. It will be a completely transparent system," said the Secretary.
In last seven and half years, the state government has received investment proposals worth Rs 3 lakh crore, but due to land scarcity not even 2 percent of the amount came on the ground.
Verma said, "We know there are challenges, but we are trying. The state government is considering various proposals to help investors. It is one of them. We will choose the best one after proper consideration."
