Bihar New Industrial Promotion Policy-2011
Bihar state cabinet on 7th june’11 has okayed the new industrial policy. To be known as the New Industrial Promotion Policy-2011, it will come into effect from July’11.
Under this policy, new labour intensive industries which invest over Rs 500 crore in the state will be given special incentive. The State Government ill give incentive to the small and medium industries as well as to those industries setting up captive power plants of their own.
Such industries will be given subsidy equal to 50 to 60 per cent of the total amount involved in setting up of the plants.
Those industries which will pursue job-reservation policies will be provided additional 10 per cent subsidy. Those setting up units producing SPV or unconventional energy appliances will also be given 60 per cent subsidy.
Industries will be assisted in preparation of DPRs, obtaining ISO markings and carbon-free certification. Paper works related to setting up of industries has also been simplified and the new as well as old industries opting for expansion will now get concessions in registration and stamp duty fees while purchasing land for the purpose.
Here are the chief highlights of the new industrial policy:
- The policy identified nine “thrust areas” — food processing, agro-based industries, tourism, super specialty hospitals, IT, technical and high education, electronics, hardware and non-conventional sources of energy.
- On the controversial matter of land acquisition – the government assures it would try its best to make land available to the entrepreneurs.
- Though not part of the policy statement, the state has made available Rs 1,500 crore to the authorities concerned for strengthening the land bank.
- The new policy provides for a subsidy grant of 50 per cent for setting up captive power plants. The amount of grant/subsidy would go up to 60 per cent if any unit decides to set up non-conventional sources of energy for captive use.
- Entrepreneurs would not have to pay any stamp duty for land registration when setting up a new industrial unit or carrying out expansion to existing units.
- The policy will provide a capital subsidy of about Rs 5 crore to those making less than Rs 500 crore of investments whereas Rs 30 crore would be given as capital subsidy to industrial units that invest Rs 500 crore or above.
- According to the scheme if any industrial unit follows government reservation policy, it would get 10 per cent additional funds. But this is not binding on them.
- The government would provide special incentive to entrepreneurs from Scheduled Castes or Scheduled Tribes. Women and the disabled would also get similar benefits. For these categories, 100 per cent VAT would be reimbursed if their turnover crosses Rs 30 lakh per annum.
As per news report, Bihar government will however not help industry in acquiring fertile land or any crop land.