Bihar Industrial Investment Promotion Policy, 2016 announced

Technology in the hands of businessmen

In order to establish Bihar as the most preferred investment destination, Government of Bihar had announced the Bihar Industrial Investment Promotion Policy, 2016 that is operational since last one year. Based on the assessments of their economic and employment generation potential, an increased focus is required on the IT,ITES and ESDM sector.

I. So any unit that invests more than 5 crores in fixed assets and plant and machinery, excluding the cost of the land and generating direct employment of 50 crores workers in IT/ITES and ESDM sector shall be treated as the high priority sector and shall be given following incentives in addition to that existing in the Industrial investment promotion policy 2016 of the state: –

(A) Exemption from stamp duty/registration fees – In the present industrial policy-2016, 100% reimbursement is provided on the sale/transfer/lease of the land only after the production starts, but now these units 100will be % exempted from paying stamp duty/ registration fees on the sale or lease of land. In case of land allotted by the government, no stamp duty is to be paid.

(B) Exemption from the land conversion fees:- In the existing industrial policy, 2016 the land conversion fee is 100% reimbursed only after the production begins, but now 100% exemption from payment of “land conversion fees” shall be given for the conversion of agriculture land.

(C) Interest subvention: – In the existing industrial policy , 2016 the interest subvention on the term loan availed by the unit from the scheduled nationalised bank /financial institution approved by the SEBI was 10% or actual rate of interest whichever is lower , subject to upper limit of 30% of the project cost and upper limit of 10 crores. Now interest subvention of 10% to the eligible units on the term loan subject to upper limit of 50% of the project cost and upper limit of 20 crores will be given.

(D) Tax incentive: – All new units will be entitled to avail 100% reimbursement of SGST on the net tax payable for initial five years of production.

(E) Employment cost subsidy:- 50% reimbursement (in case of male workers) and 100% reimbursement (in case of female workers) of expenditure on account of contribution toward ESI and EPF scheme (SC/ ST) for a period of 5 years for new units for those employees who are domicile of Bihar up to a maximum of Rs 1000 per month in case of female and 500 per month in case of male.

(F) Skill development subsidy (SC/ ST): -The State Government shall provide skill development subsidy of Rs 20,000 per employee/ Bihar Skill Development Mission (BSDM) rates whichever is lower. This incentive will be applicable for training of employees/ staffs who are domicile of Bihar and shall have to be employed for at least one year.

Press release at 2pm - post discussion Hindi-1

Press release at 2pm - post discussion Hindi-2