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Bihar has come out with a new textile and leather policy providing power and freight subsidy along with provident contribution for up to five years.
Meanwhile, it has urged the Centre to do away with consumption-based quota mechanism for ethanol production.
Syed Shahnawaz Hussain, Industries Minister of Bihar, told reporters here that based on the migrant survey, nearly 63 per cent of labour employed in various textiles units all over the country are Biharis. “This data is based on survey conducted among migrant workers returned to State during pandemic. With strong labour force along with much better law and order situation and improved infrastructure provide strong opportunity for development of textile and leather industry in Bihar,” he said.
The State has 2,900 acres of available land bank. It has a population of 14 crore which means a big domestic market. “Till now, companies have benefited from the this large market, now time has come for them to manufacture here,” Hussain said. Further, with proximity to Nepal, Bhutan and Bangladesh and states such as Uttar Pradesh, West Bengal, Bihar has the potential to serve 55 crore population, he added.
Policy
The new policy will provide 15 per cent of plant and machinery investment as subsidy with a ceiling of ₹10 crore,₹2 per unit as power subsidy ranging from ₹2.5 lakh to ₹80 lakh (based on size of units) and 50 per cent of the expenditure incurred for patent registration with a capping of ₹10 lakh. “Units will get reimbursement of the ESI and EPF paid against employee as employment generation subsidy with a monthly grant up to ₹5,000 per employee for a period of five years,” he said. while adding 30 per cent freight reimbursement to be provided for taking goods to nearby ports for export.
These are beside full reimbursement of State Goods & Services Tax (SGST), interest subvention subsidy up to 10 per cent of interest on term loan availed from a bank or financial institution, skill development subsidy of ₹20,000 per employee and 100 per cent reimbursement of stamp duty and land conversion fee.
“State Government is setting up a special office in the Capital where investors will be accorded red carpet welcome, single window facilitation and all approvals within seven days,” Hussain assured.
Ethanol
Bihar is gearing up to be supplier of ethanol with 17 plants coming up. We have got₹36,253 crore worth of investment proposal, out of which 30,000 crore are for ethanol production only,” he said while highlighting that State does not just have very high maize production, but good quantity of water. “One litre of ethanol requires five litre of water and Bihar is blessed with large water source,” he said.
However, Bihar’s hands are tied due to consumption based quota from ethanol production. “Bihar has got a quota for 18 cr litre of ethanol production which has now been raised to 36 crore litre while the State bid for 172 crore litre,” he said while informing that the Centre was urged to remove this quota system.
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