Bihar Government’s Policy of Private Industrial Parks

            The long standing problems of land troubles for investors in the state are soon going to witness solution. The Bihar Government has almost done with the drafting of the policy for setting up private industrial parks in the state. The Bihar Chief Minister Nitish Kumar will unveil policy for private industrial parks at Udyami Panchayat on 29^th April, 2013 at Rajgir. One of the senior officials of the industries department told media that the government wanted the land policies to be one of the best policies in the country so they have studied policies of the other states. They have also incorporated suggestions of trade and industrial bodies in this policy. He also added that the people who would want to set up industrial parks in the state will be given substantial subsidies. So far, the state government has already received 2 such informal proposals to set up private industrial parks. He said that a group of land owners from Mokama, near Patna has shown interest, while one such proposal came from Medhapura district. The government hopes to see many more investors coming forward in future. Naveen Verma, the Industrial Development Commissioner accepted that the unavailability of land has become a blockage for rapid industrialization of the state. They are welcoming investors to set up private industrial parks. But first these investors have to submit strong proposals to back their initiatives. They will look into the proposals first and then if they like it then they are ready to offer subsidies even up to 30-40 %. The state industrial department would however facilitate easy conversion of areas to industrial land. The industrial units in these parks will also be allowed to avail subsidies that are being offered under the industrial policy of the state government. If needed the state government is willing to help these investors in developing the basic infrastructure. It is also going to provide electricity to these parks on the basis of priority. But the state government is unwilling to get involved in land dealings. Verma added that the state government is very serious about this proposal. They will give all possible help to the investors but in no way the state government will get itself indulge in land deals. The investors have to carry it out on their own.

            Over the last 6 years, Bihar has received investment proposals over Rs. 3 lakh crores. But one major drawback that the state faces is the vast density of population of over 1100 people per square kilometer, so the state government finds it tough to vacate land. One of the industries department officials stated that Bihar has one of the best industrial policies in India but due to lack of industrial land the rate of industrial land is minimal. So the main aim of the government is to look towards the private sector.

            The question now lies that how many investors will be willing to invest in these industrial parks. It will definitely give a boost to the industrial sector of Bihar which has still not got the right exposure.

(Dated: 7^th April, 2013)

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