Patna, May 3: An experimental “exit policy” for sick units has been put in place to enable the Bihar Industrial Area Development Authority (Biada) reclaim land leased out to industrialists.

Sources in Biada, a state industries department wing for creation of industrial areas, said the policy would be valid between May 1 and October 31 this year.

If successful, the scheme will be floated on a permanent basis, sources said. “Normally, Biada leases out land to an interested investor for 90 years, once the State Investment Promotion Board (SIPB) approves it. At present, over 450 units, set up on about 150 acres of Biada land, are sick either with zero productivity or have completely shut down. The government needs more land for new investors. It has talked about setting up seven more ‘mini’ industrial areas in seven districts in addition to the existing (approximately 50) ones. Unlike earlier, Biada will refund a part of the amount the industrialist invested to get the land,” a Biada official said.

According to the policy, industrialists interested in returning land will be paid at the present market rate. “Let’s say an industrialist was allotted Biada land in 2006 for 90 years. The industrial unit went on for two years, turned sick and was shut in 2008. In such a case, the industrialist needs to contact Biada and compensation will be provided. The amount the industrialist paid (to Biada for getting land on lease) will be returned after deducting the number of years his company was operational.

The rate of the land price, which will be repaid, will be on a par with the latest rate of the area. Also, there will be some deductions like unpaid electricity bills,” the official said.

Earlier, Biada had the authority to take away land from a sick unit. “In any industrial area, there are Biada development officers who monitor the units. The lease deed can even be suspended on the basis of their reports. However, there is no provision for any refund to industrialists. Under the new exit policy, Biada will pay back industrialists under all circumstances.

The aim is to end legal tangles so that availability of land is not hampered. The deductions will be in the form of pending bills and 10 per cent administrative charges,” said industrialist Satyajeet Kumar.

However, a “transfer policy”, through which Biada land can be transferred from one industrialist to another on mutual consent, already exists. “This policy is far more effective but not properly managed. Two parties can come together and the Biada land belonging to one can be transferred to the other on mutual consent. Biada is supposed to play facilitator,” Satyajeet said.