Industry needs level-playing field: BIA

PATNA: Bihar's new industrial policy has galvanised the Bihar Industries Association (BIA) into action. So much so that a BIA delegation had called on the industrial development commissioner (IDC) on July 26 to offer its suggestions for rehabilitation of the sick industries. Speaking to mediapersons here on Friday, BIA president KPS Keshri said that the real challenge before the state government is to rehabilitate 26 per cent of the sick industrial units and revive the viable ones out of the 54 per cent industrial units that are lying closed. The BIA has urged the government to provide a level-playing field to the local industries in terms of giving priority to their products. It also sought an amendment to the Stores Purchase Act, 2002 in the larger interest of local industries. Stressing the need for state's own store purchase preference policy, Keshri pointed out that in other states, about 60-100 per cent of the products manufactured by indigenous industries are purchased by the respective governments. While the Jharkhand government purchases 75 per cent of the local products, the figure is 100 per cent in Assam. Other vital demands of the BIA include setting up of an expressway to link Bihar's industrial centres with sea ports in West Bengal or Orissa for transportation of export items. In fact, Bihar urgently requires connectivity with sea ports like the one at Haldia in West Bengal or any other major port in Orissa. Creation of a dry port in Bihar is imperative and Fatuha is the most ideal place even in the eyes of the state government, Keshri said. Even CM Nitish Kumar had recently apprised the Planning Commission of the state government's requirement in this regard, Keshri said. Hailing waiver of minimum guarantee charged for supply of electricity to the industries, the BIA has urged the government to waive off compound interest and penal interest against loans taken by the sick industries from the Bihar State Finance Commission, Bihar Credit and Investment Corporation (BICICO) and other agencies of the state government. Keshri said that the BIA had launched an intensive campaign for identifying sick industries in Muzaffarpur so that they could be revived. He said that the new industrial policy lacks the essence of a "competitive policy", vis-a-vis providing capital subsidy to the industry. He, however, regretted that the BIA's demand in this regard had not been included in the new policy. Keshri defended the decision of the Bihar Industrial Area Development Authority to sell the building and land belonging to the Patna Industrial Area Development Authority at Pataliputra Industrial Estate to film-maker Prakash Jha for constructing a multiplex. In fact, the industrial policy adopted by the state government in 2003 had envisaged industry status for the entertainment sector, Keshri said. "The state needs investment and not controversy," he remarked.