Cabinet nod to Bihar Industrial Investment Promotion Policy
Patna,(BiharTimes): With a view to attracting investors and help them set up industries in Bihar the state cabinet on Tuesday gave its nod to the much awaited Bihar Industrial Investment Promotion Policy.
According to Principal Secretary, Industries, S. Siddharth there were separate policies to promote investment in IT, tourism, food processing and other sectors, but the government has now decided to bring one policy for all sectors.
He said they have been categorised under two heads - priority and non-priority.
Now there would be 10 priority sectors: food processing, tourism, small machine manufacturing; IT, IT enabled services, electrical and electronic hardware manufacturing; textile, plastic and rubber industry, renewable energy, health care, leather and technical education.
All other industries have been categorised under non-priority sector.
The new policy will fully reimburse stamp duty and land conversion fees on industrial investments. The government will provide altogether 10 per cent interest subvention for priority sector industries and 12 per cent for micro and small industries.
Explaining this further the Industies Secretary said if bank loans at the rate of 14 per cent interest is taken for making an investment the state government would reimburse the first 10 per cent interest for industries (priority and non-priority) and first 12 per cent for micro and small industries.
However, the interest subvention would be limited to either 30 per cent of the total investment or Rs 10 crore, whichever is less, for priority industries, and 15 per cent of total investment or Rs 10 crore, whichever is less, for non-priority industries. The previous policy had a limit of Rs five crore, he added.
According to the new policy the state government will also provide 100 per cent VAT or GST reimbursement on investments for five years for priority industries and 70 per cent reimbursement for non-priority industries.
The five-year policy, which will replace the old one, will be effective till 2021 and will come into force from the date of notification, which, the government said, would be September 1, 2016.
