Patna, June 4: The Bihar Industrial Area Development Authority (Biada) has decided to urge the government to formulate a permanent exit policy for industrialists to return unused land.

Chief minister Nitish Kumar on Monday presided over the Udyami Panchayat where industry bodies suggested that the state government should bring changes to the exit policy every two years. Sources in Biada, the authority that provides land to investors, however, told a permanent policy was a better idea.

"The authority will write to the state government urging them to implement a permanent exit policy," a Biada official told The Telegraph. "The policy should be drafted in such a manner that industrialists have a fair chance to return unused land against a few benefits. We are positive that the industries department will consider our demand and implement it. At present, Biada has very little land at its disposal with several investors waiting in queue. A permanent solution to the problem is necessary."

The last time the state floated such an idea was in 2013 for a period of six months (May to October). It was stated that industrialists who were interested to return unused land would be paid according to the current land rate. However, the plan failed.

The principal secretary of the industries department, S. Siddhartha, said they are working on a similar scheme.

At present, Biada only has 182 acres of land available at its disposal. More than 500 industrialists, who were provided land by Biada, are yet to start work on their projects. Biada leases out land to industrialists for a period of 90 years. "A permanent policy is always better. The state government can provide industrialists with different sops to make the policy attractive so that they approach Biada to hand over unused land," the Biada official pointed out. "In the Udyami Panchayat on Monday, suggestions were made to the state government to allow Biada to buy back unused land at 15 per cent less than the original circle rate and sell it to another industrialist at the original circle rate. Thus, with the same piece of land being sold twice to two industrialists, Biada will reap huge profits."

The authority has recently started to serve notices to industrialists who are sitting on Biada plots without using them. More than 50 industrialists have been served with notices to vacate the plots or face legal action.

"The problem is that once a notice is served, the party moves the court and a long legal battle begins. The authority wants to avoid this by introducing a permanent exit policy to lure industrialists to hand over plots," the official told The Telegraph.