The Government of Bihar has decided to offer a discount of up to 80 per cent on the lease of land under Bihar Industrial Development Authority (BIADA) to encourage investment in the state.
During a meeting, the Bihar state cabinet on Tuesday approved the decision on 54 units, including 15 industrial units, under Piyada. BIADA leases land to investors for a specified period of time at a price lower than the market price and up to department (government) rates.
As per the Bihar Cabinet decision, the rate of BIADA units has been reduced by 80 per cent for 15 units, 60 per cent, 40 per cent for 12 units each and 20 per cent for 15 units. These industrial units are spread across the state in Gopalganj, Aurangabad, Rohtas, Buxar, Gaya, Munger, Nalanda, Saharsa, West Champaran, Bhojpur, Jehanabad, Patna, Madhubani, Katihar, Siwan, Bhagalpur, Kishanganj, Khagaria, Sitamarhi and Bhojpur districts Nawada, Lakisaray, Darpanga, Jehanabad and Patna.
Government land prices vary from 42 lakh rupees per acre to 1,325 rupees per acre before they are cut.
Bihar Industry Minister Syed Shahnawaz Hussain told the Indian Express, “We have a lot of Piyada lands across the state. While some industrial unit lands have good access to roads, some are less developed and others need to be developed. Why should he care? Investors should take our land if it does not have a reasonable price? We have broken the government minimum cost barrier by setting 54 industrial units and decided to lower the cost.”
The Industry Minister, who has been traveling across states to attract investment and recently held investor meetings in Delhi and Kolkata, added that the availability of land was the biggest constraint to investment. “With good roads and electrical supply, investors are showing keen interest in Bihar now,” the minister said, adding that they still had a challenging task to realize upcoming investments including in food processing and agriculture based industries.
In the past six months, Bihar’s industry division has received more than 200 proposals for investment in ethanol production, textiles and other fields. The new textile policy also aims to reform the textile industry, including the silk industry in Bhagalpur.
The recent opening of one of the largest bottling plants by Pepsico in Begusarai worth Rs 500 crore on BIADA leased land was the largest investment received during the current Nitish Kumar scheme.
Bihar has also seen huge investments in ethanol production that can ensure a fair cost of maize for the farmers of 18 maize-producing regions. While India’s first new ethanol plant started in Purnea in April, another 16 such plants have been set up.
In the last 19 years of Nitish Kumar NDA’s rule, no major investment was made despite the emergence of 377 units between 2016-2017 and 2022-23. In 2017-18, Bihar received investments of Rs 331.95 crore which increased to Rs 551.44 crore in 2021-22.