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Rs 50cr investment benchmark set for land

The land crunch in the state has forced Bihar Industrial Area Development Authority to become selective in allotment of plots in future.

Now on, proposals for investment of Rs 50 crore and more will be given preference over smaller ones. Entrepreneurs wishing to invest in selected sectors, which include manufacturing and processing, IT and industrial parks, common logistical facility and industry-related training centres, will be now given preference of land allotment.

With the Biada having frozen all fresh allotments in October stating that they do not have “any land left”, the authority has spelled out a few guidelines for the fresh allotments whenever they open their window.

“At present, the fresh land allotments are not taking place as there is no land left with the Biada. However, acquisition will be made and it is under process. There will be fresh allotments soon with a notice regarding the same to be made public. However, the authority will now focus on certain fixed sectors and on investments worth at least Rs 50 crore and above. It is not that investments below Rs 50 crore won’t be considered but the preference will be on the Rs 50-crore-and-up bracket,” a Biada official said.

If one looks at the SIPB approvals until October last year (as available with the department), the total investments between Rs 10 crore and Rs 99 crore stand at 255. The investments below Rs 10 crore stand at 606 and investments worth between Rs 100 crore and Rs 500 crore, stand at 107. The investments above Rs 500 crore stands at only 47 according to the list, which has not been updated.

“The small investments are more in the state. Recently, chief minister Nitish Kumar has also acknowledged the fact that the state was aiming at the small investments for now. But they seem to rise above the bar of very small investments. The project-price link is probably set for this,” an industrialist said on condition of anonymity.

Sources said the state government now was focusing on the fixed sectors. “Recently, a task force has been formed for the manufacturing sector. With the government focusing on fixed sectors, the allotment of land will also be on the basis of the same. The government will concentrate on some sectors for at least a year. This means that for at least one year, preference for land allotment will be given to these sectors. After a year, a review will be held on the performance and the list of sectors may be changed,” the Biada official added.