Time to invest in Bihar, as Govt announces massive cut in land rates

Plot allotment Bihar service sector

Patna: Are you looking to invest in Bihar thanks to its investor-friendly industrial policies, but exorbitant land prices are spoiling your plans? Here is the right time to think again.

For, the State Government has decided to offer land to the entrepreneurs on a highly discounted price for those willing to invest in industries. One can now aspire to have the portion of land on lease under the Bihar Industrial Area Development Authority (BIADA) command at as low the cost as 20% of the existing price.

The State Cabinet at its meeting chaired by Chief Minister Nitish Kumar approved the Industries Department’s proposal to offer up to 80% discount on the rates of industrial plots as compared to the existing rates at the far-off and unoccupied plots of BIADA. The Industries Department decided to lower the cost of plot to boost industrialisation.

Industries sources said that high cost of land was a major deterrent for the entrepreneurs to invest despite modified industrial policies, which offer a lot of incentives and tax discount for new investors.

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Talking to reporters after the Cabinet Meeting, Additional Chief Secretary, Cabinet, S Siddharth said that the State Government has approved four discount in the range of 80% to 20%, depending up on the class of and location of the plots to woo the investors. “The cost of land in BIADA areas is high as it’s been fixed in accordance with the prevalent minimum value register (MVR)—which determine the cost of land,” said Siddarth.

“This will turn out to be a major incentive for the investors. They can now spend more on equipment and machinery, than investing on land,” said the ACS. The investors can avail 80% discount on land rates in selected zones of the Industrial areas of Gopalganj, Siwan, Aurangabad, Rohtas, Buxar, Gaya, Munger, West Champaran, Madhubani, Madhepura, Saharsa and Nalanda.

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After the discount, plots currently costing about ₹2.97crore can be available at ₹59 lakh in Gopalganj. Likewise, plots worth ₹5.75 crore in industrial area of Siwan, Phase-2, can be have at ₹1.15 crore. Similarly, 60% discount is being offered on plot located in different phases of industrial areas of West Champaran, Purnia, Araria, Madhubani, East Champaran, Muzaffarpur, Vaishali, Patna, Buxar , Nawada, Munger and Khagaria.

Likewise, 40% and 20% discount will be given on unoccupied plots of BIADA in Rohtas, Bhojpur, Jehanabad, Siwan, Madhubani, Sitamarhi, Darbhanga, Katihar, Kishanganj, Bhagalpur, Purnia, East Champaran, Vaisali, Aurangabad, Buxar, Nawada and Lakhisarai.

State to dole out 35% subsidy on food processing units

The Industries Department is set to launch the long-awaited Centrally sponsored scheme, PM Micro Food Processing Enterprise Scheme, under which individuals and farmers’ producer organisations (FPOs) are offered up to 35% subsidy on the investment in the food processing sector.

The State Cabinet has sanctioned ₹469 crore, which amounts to about 40% of the total expenditure on the scheme, as the state share for the scheme to be implemented till the fiscal year of 2024-25. The Central Government will spend 60% of the fund on the scheme. Individuals and FPOs would be given credit-linked subsidy up to ₹10 lakh, which would be equivalent to the 35% of the total investment. The entrepreneurs need to invest at least 10% of the total project cost, while the rest of the amount will be managed from the State Government.

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