Bihar government is now planning to introduce big changes in its industrial policy. The state government is considering offering new rebates to investors, whereas limiting the scope of some of the old exemptions.
The state government is in the last leg of the mid-term review of its industrial policy, which was introduced in 2006 and revised in 2011.
"The policy proved very helpful in bringing new investors to Bihar," Industries Minister Renu Kushwaha told Business Standard, "however, there are still some roadblocks. Therefore, we decided to review our policy and remove them. We are trying to make this policy more investor friendly. At the same time, we are also working to weed out non-serious investors."
The state government is now planning to introduce procedural change in the policy. One of the officials working on the revision told, "These changes were on the top of our agenda. We are trying to devise a way, which can stop non-serious investors. We want them to have land and at least 20 percent of total project cost available with them. Apart for that, the state government will have right to cancel their approvals, if they do not meet our requirements or fail to complete work in stipulated time period."
The state government is also planning to introduce manufacturing sector as one of the thrust areas in its industrial policy.
It is considering offering new rebates to investors in the revised policy.
"We want to offer more rebates and subsidies to some of our thrust areas, namely food processing and tourism. Existing units would be eligible for new subsidies, if want to expand their operations. Besides, VAT reimbursement process would also be simplified for older units, so that they do not have to deal with the bureaucratic tantrums," said the official.
Meanwhile, the state government is also planning to limit the scope of some of the old exemptions, especially in the power bills.
According to state government officials, it is now planning to limit the exemptions from Annual Maintenance Charges and Monthly Maintenance Charges for seven years, instead 10 years which was allowed in the existing policy.