Nitish with BIA president KPS Keshri at Udyami Panchayat. (PTI)

Patna, July 30: A state investment and advisory council would be set up to make the task easier for entrepreneurs wishing to do business in Bihar, a destination still considered rocky for establishing industry.

Announcing this today at a gathering of entrepreneurs, chief minister Nitish Kumar said the government was determined to “reduce the risk factor involved in making investments” in the state and the council was a step in that direction.

“The notification for setting up a state investment and advisory council would be issued in a day or two after which there would be a meeting of the council in Patna. Later, all entrepreneurs, industry bodies, prominent industrialists and economists would take part in a conference of the council in Mumbai,” Nitish said while addressing the entrepreneurs’ meet, Udyami Panchayat.

The chief minister and the deputy chief minister would be the chairman and vice-chairman respectively of the council. Prominent economists, management experts, top state government officials and representatives from trade and industry would be part of the council, which would also have Sebi chairman U.K. Sinha as a member, Nitish said.

This is the first Udyami Panchayat since February 10, 2010, when it had been decided that the meet would be held every quarter, but wasn’t. Nitish today declared that the meet would henceforth be a regular affair on the lines of the weekly janata darbar. The Udyami Panchayat would now be held on every fifth Monday of a month — which implies that the meet would take place four or five times a year. The next such meet would be due in October, which has five Mondays this year.

Nitish laid down why Bihar required big-ticket investments. “We have put up an ambitious demand of Rs 2.72 lakh crore in the 12th five year plan. This cannot be achieved with public investment. We need huge private investments too. People from both inside and outside the state should come forward to make investments as the law and order situation is conducive today with government making no discrimination against anyone,” he said.

The chief minister didn’t spare the opportunity to harp on his pet subject: special category status for Bihar. This, he argued, would help Bihar to not only promote private investment, but also ensure more funds with which to carry out its own social welfare schemes like bicycles for school students and grant of capital subsidy to food processing units.

Nitish also agreed to set up a “clarification committee” as demanded by entrepreneurs to resolve, explain and clarify industrial rules, laws and orders relating to industries.

He emphasised that the concept of Udyog Mitra, introduced to help entrepreneurs in setting up his/her units, would be strengthened further. The government is taking steps to allow entrepreneurs to file their proposals online besides strengthening the web monitoring system.

Nitish had a word of praise for the proposal of Bihar Industries Association president KPS Keshri to set up a “private industrial park”. Keshri, who initiated the presentation, said many entrepreneurs wishing to set up power plants are stuck as the land acquisition process is still incomplete.

Keshri’s presentation was followed by those of O.P. Sah and P.K. Agrawal of Bihar Chamber of Commerce. Confederation of Indian Industry was represented by its state council chairman, S.P. Sinha. Bihar Sugarmills Association, Mahila Udyog Sangha, Laghu Udyog Bharati and other entrepreneurs from several parts of the country participated in the panchayat.