Patna, May 30: The state government today decided to scrap the single-window system for rapid, one-stop clearance to industrial investment proposals and replace it with a new one to woo investors, entrepreneurs and industrialists.

The decision was taken at a closed-door Udyami Panchayat (entrepreneurs' meet) chaired by chief minister Nitish Kumar in Patna, in which several ministers, officials from various departments, and industry representatives took part.

The panchayat was organised to invite suggestions for the new industrial policy, being prepared by the state government for the next five years. It will be introduced before July 1.

"Entrepreneurs narrated the difficulties and delays that they face under the single-window system and the chief minister decided to discontinue it," state industries and science and technology minister Jai Kumar Singh said. "He directed officials to prepare a new one in its place."

Industries department principal secretary S. Siddharth added that the chief minister gave directions to ensure that the new single window system shortens the time taken in granting approval to investment proposals.

"The chief minister also gave directions to amend the Bihar Single Window Clearance Act, 2006, if needed, and to ensure that the new single window system is better than those available in other states," Siddharth added.

Nitish heard the suggestions and demands of over 24 industrialists at the three-hour-long meeting and stressed on the need to focus on establishing food-processing industries, rice mills, IT industries, and labour-intensive facilities to create employment opportunities.

Sources said Nitish expressed dissatisfaction over investment in the state at the meeting and told entrepreneurs that government subsidy on capital investment will not be given.

"With regard to investment in the health sector, the chief minister expressed he wanted good hospitals to be built in the state but at the same time they should have beds for poor people too. He said hotels will be permitted to go vertical after considering restrictions on the limit imposed by the airport authority and roads on which they would be located because of land scarcity," a source told The Telegraph. He also asserted that there would be no compromise on the environment and prohibition sector as far as industrial development is concerned, and entrepreneurs and investors will have to abide by the rules.

Neera, or unfermented palm sap was served at the meeting. The chief minister is spearheading a programme to manufacture and market neera and other palm products like sugar, jaggery and handicraft items with help from scientists from Tamil Nadu Agriculture University.

Entrepreneurs, however, said they were happy with the existing industrial policy that was formulated in 2011 and pointed out that the model was copied in Haryana. While they demanded it to be continued, Nitish asked why they did not raise such a demand earlier instead of raising it now, when framing of the new policy was in its final stages.

Though Bihar chapters of national-level trade and industry bodies like the Indian Chamber of Commerce (ICC), Confederation of Indian Industries (CII) and PHD Chamber of Commerce and Industry did not participate in the meeting after invitations to them were withdrawn a couple of days ago, representatives of Bihar Chamber of Commerce and Industries (BCCI), Bihar Industries Association, Women's Industries Association, Bihar Hotel and Restaurant Association, Bihar Rice Millers Association, Buddhist Travel and Tourism Association and other similar bodies attended it.

BCCI representatives praised Nitish for bringing industrial promotion policy and food procession policy in the state. They said the policies had helped attract investments worth Rs 12,500 crore over the past 10 years and provided direct employment to 1.75 lakh people.

BCCI president O.P. Sah, BIA president Ram Lal Khaitan and its former president KPS Keshri demanded for effective delivery system where officials at lower levels act according to the initiatives of the chief minister and senior officials. They also asked the state government to provide strict directions to banks to shun their negative attitude in providing loans to entrepreneurs.

Ram Lal said: "We also suggested the state government to bring an exit policy for industries located on land given to them on lease by Bihar Industrial Area Development Authority (Biada) by giving 15 per cent less money than the current circle rate of land. They could then give the land to other industries at circle rates and make a profit of 15 per cent, while avoiding litigation over the issue."

The suggestions by entrepreneurs, investors and industrialists would be evaluated and discussed at another meeting. The viable suggestions would then be incorporated in the draft of the new industrial policy.