Patna, Sept. 14: Bihar has fared poorly in a World Bank report on "ease of doing business in Indian states".
The report, which was released in Delhi today, has ranked Indian states among which Bihar stands at 21.
Gujarat tops the list.
Stakeholders attributed Bihar's ranking to red tape, scarcity of land and failure of the state government to ensure effective implementation of single-window system, which has been initiated for quick clearance of projects.
On June 8 this year, department of industrial policy and promotion of the Union ministry of industries had released a framework to access states when it comes to ease of doing business.
The ranking of the states has been done on the basis of reform measures in eight key areas - setting up of business, land allotment and getting construction permit, complying with environmental procedures, complying with labour regulations, obtaining infrastructure-related utilities, registering and complying with tax procedures, carrying out inspections and enforcing contracts.
Reacting to the report, industries minister Shyam Rajak said the state would not develop industrially until and unless it was provided a special category status.
"Bihar needs special category status. We don't have any natural resources or minerals. Only special category means that the state will witness tax exemptions, which will attract big players. We have an attractive industrial incentive policy but one should understand that investors come to any state for profits. Land is a problem no doubt but not a major issue as we have out private industrial area policy. The Centre should grant Bihar special category and the state will witness big investments for sure," Rajak told The Telegraph.
However, several states, which are below Bihar in the rank, enjoy special status category - something Bihar ministers chose to ignore. Some of them are states like Assam, Uttarakhand, Tripura, Sikkim, Mizoram, Jammu and Kashmir, Meghalaya, Nagaland and Arunachal Pradesh.
Industrialists had a different perspective altogether. O.P. Sah, president, Bihar Chamber of Commerce and Industries, said the state was lacking in the delivery mechanism. "We have the best industry policy in the country but the delivery mechanism is missing. We have a State Investment Promotion Board (SIPB) but do not have a proper single-window system. Red tape still rules and officials sit on files for days and months altogether. In such a scenario, how can things be good? The special category status will attract investments but unless the delivery mechanism is strong, nothing will work," Sah said.
Another industrialist, who requested anonymity, said: "The private industrial area policy was formed more than almost two years back and the first one was set up at Mokama. Till now, it has not witnessed a single investment. Two more have been approved in Khagaria and Kaimur but how can the government guarantee its success if the first one did not click?"
