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Montek's Suggestion Not Practical, Says BIA Chief

  • Taking a cue from RBI governor D Subbarao's statement that industries of Bihar need holistic development, the Bihar Industries Association (BIA) has stated this is important to strengthen local industries to attract outside investment.Talking to TOI, BIA president K P S Keshri called for government support and tax concessions to local industries till they reach a level-playing field to compete with the industries of other states. He said the suggestion of Planning Commission's deputy chairman Montek Singh Ahluwalia at the 'Global Summit on Changing Bihar' for withdrawing tax concessions to industries was not practical in the case of Bihar as the state's industries were yet to develop, gain strength and prosper.
  • He said that Bihar Industrial Incentive Policy 2006 and 2011 were among the best such policies in the country, but their implementation remained tardy due to apathy of subordinate and field staff of the state government. "Even the State Investment Promotion Board (SIPB), which had its origin in single window system, has been giving only in-principle approval for setting up industries. Most of the promoters and entrepreneurs have to wait and move around for final approval of their industrial projects," Keshri said.
  • Keshri reiterated the BIA demand for allowing Private Public Partnership (PPP), under which a private entrepreneur or group of entrepreneurs could purchase industrial plot of around 25 acres with government providing the cost for development of industrial infrastructure on it. Under such a policy, industries in the manufacturing, service, food processing industries and other sectors could have their own separate clusters to house their units.
  • Under PPP mode, common facility centres should be established at least at Muzaffarpur, Hajipur, Patna and Bhagalpur for providing cold chain for vegetables, fruits, fruit products and pulp. This will enable value addition to farm products which could be marketed in big cities and other distant places. The Union government provides 50% subsidy for such infrastructure development, he stated, adding an air cargo complex should also be established at the Patna airport. He stressed on proactive role by the government in giving purchase preference to quality products of local industries.

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