Patna, Feb. 15: Bihar Industries Association (BIA) today iterated its demand for incorporation of its slew of proposals in this year’s state budget to speed up the industrialisation process in the state.

“If the state government is really serious about the state’s overall development, it will have to give incentives in its budget to promote industrialisation. We have submitted our major demands to the government to be incorporated in the budget during the pre-budget meeting with the state’s deputy chief minister,” BIA president KPS Keshri said.

Industrialisation would not only fetch more revenue to the state but would also create huge employment opportunities, a crucial issue that the state has been grappling with, Keshri said in the presence of former BIA presidents Shailendra P. Sinha, K.P. Jhunjhunwala and vice-president NCP Sinha.

BIA’s 10-point demand includes exemption of entry tax on raw material and machinery to be used in industries, creation of Rs 100 crore corpus for revival of sick units and Rs 100 crore equity fund in 2012-13 to help local industrial units, introduction of air cargo facility for handling perishable goods. The industrial body also wants the state government to make its purchases from the local small and medium enterprises and set up a mining company to take part in bidding of coal blocks. Besides the demand for quality electricity supply at a cheaper rate, BIA has sought introduction of compounding scheme for small industries with turnover up to Rs 1 crore.

Compounding scheme is the concessional rate of tax enjoyed by traders having annual turnover of up to Rs 40 lakh. They have to pay flat Rs 10,000 as tax. The industrialists want the same with a ceiling of Rs 1 crore. The BIA wants the tax against Rs 1 crore turnover should be Rs 25,000.

“We have got a positive response from the government and are hopeful of getting at least some of our demands incorporated in the budget (to be tabled on February 24). But we want to remind the government about them again,” Keshri said.

He said the government should come out with a scheme in the budget to set up private industrial area, as it has become quite difficult it to carry out land acquisition. Instead, the government should promote setting up of private industrial areas on 25 acres or more land. This area should be developed with the government assistance of up to 90 per cent.

Keshri, who emphasised on the value addition to agricultural produce, said the government should foot the bills on account of fuel surcharge being realised from all consumers, including the industrial users.