Fiscal sops thrust of Bihar's new industrial policy

Patna, July 21(IANS) The industrial policy of Bihar unveiled Friday offers more fiscal sops than ever to attract domestic and overseas investment in one of India's most backward states and proposes many industrial parks and zones to push economic growth and employment.

The thrust of the new policy is to be industry and investments friendly towards industry and investments and create an environment conducive for businesses so that industrialisation and employment can be speeded up, officials said.

Chief Minister Nitish Kumar's eight-month government finally unveiled the policy that has fiscal incentives for potential investors looking at projects in Bihar as also for those willing to expand and modernise sick industrial units.

The policy - effective April 1 this year - gives reimbursement of tax paid under value-added tax regime, fiscal benefits at both pre- and post-production stages of manufacturing products and sops for setting up captive power units.

According to the new policy, the state government will set up a special economic zone (SEZ) to push growth, and encourage the establishment of agro export zones, food parks and a jute park to promote its cultivation in flood prone areas.

The policy proposes a one-time 100 percent rebate in stamp and registration duty for land in industrial areas as also for units that are being set up outside the earmarked industrial estates.

It also allows reimbursement for the amount paid under value added tax of up to 80 percent for 10 years for all the new units. Industrial units would also get a capital subsidy of 50 percent for setting up a captive power plant.

A proposal has also been made for a fund to be established for reviving sick industrial units in the state.