Patna, Aug. 31: Investors with land in hand are better suited to get their proposals passed by the state government.
The industries department is contemplating a change in the Industrial Incentive Policy, 2011, with focus on entrepreneurs who have arranged for land to set up their industries. It is piqued by slow real time investments against those approved on paper by the State Investment Promotion Board (SIPB), sources said.
With senior officers keeping mum, sources said it is being mulled to give prominence to entrepreneurs who finalise land deals to set up units before approaching the SIPB for approval.
No decision has yet been taken on investors who approach the board with investment projects without land deals in their kitty.
A source in the industries department told The Telegraph: “Discussions are on to make certain changes in the industrial policy. The department has started to properly screen projects of investors who approach the SIPB for approvals, and is now expected to go one step further. Prominence will be given to entrepreneurs and industrialists who have finalised land deals to set up their industry.”
The source added: “This can mean that approvals will be given only to those who have bought land and have the necessary papers. The SIPB will check the papers and approve the plan based on the detailed project report submitted. The decisions, once final, would be made public.”
The SIPB between 2006 and June 2013 has approved 1,246 proposals, senior industry department officials said. But, many entrepreneurs have not yet set up their units after approval from the SIPB, which means the proposed investments (money) are not on a par with the investments on paper.
On scanning approved investments in 22 districts, an industries department official said: “A majority of the approved investments in the districts have either not been set up or are delayed.”
An official said modifying the industrial policy would, however, not necessarily mean investors without land will be shown the door.
“Right now, the department is saying that prominence will be given to investors with land. The department is trying to strike a balance,” the official said.
An industrialist said: “At present, investors wanting to get their projects approved by the SIPB only has to submit a detailed project report. It isn’t necessary that they have land. Once the project has been approved, the investor starts the search. Land has been a perennial problem and a roadblock to industrialisation in the state. The cabinet recently approved the Private Industrial Area Policy and this move (modification of Industrial Incentive Policy, 2011) could kick-start the policy and assist entrepreneurs in investment.”