Bihar home secretary Amir Subhani (centre) in Forbesganj on Saturday, a day after the police firing. Picture by Mohan Mahto

Patna, June 8: Industrialists believe that the Forbesganj violence which left four persons dead on Friday could shake up investor confidence in the state, which is already grappling with the contentious issue of land acquisition.

Confederation of Indian Industry (CII) regional vice-chairman Satyajit Singh said the incident would have an impact on the state which is trying to fast-track industrial growth. The government came out with a new industrial policy yesterday that offers a slew of incentives to lure investors.

“Yes, there will be 100 per cent adverse impact of the Forbesganj police firing episode. It vitiates the investment atmosphere. Such incidents delay project completion,” said Singh, who is also the CEO of Shakti Sudha, the firm which processes and markets makhana.

Asked what the way out was to regain investor confidence, Singh said land was a sensitive issue and the district administration should resolve such contentious matters through negotiations.

Police had opened fire in Forbesganj, in Araria district, on Friday when villagers protested against the blockage of a path by Auru Sundaram International Private Limited, which is setting up a factory that would manufacture starch and glucose. The Bihar Industrial Area Development Authority (Biada) had given land to the company.

Four persons died and 12 others were injured in the firing at Bhajanpura village of Forbesganj sub-division.

CII’s Singh said Biada should try to take physical possession of the land the moment it announces the acquisition. “Had it done so, the Forbesganj incident would not have occurred,” the industrialist said.

KPS Kesri, director of Amrapali Foods and former president of Bihar Industries Association (BIA), said such incidents create a “sense of doubt” among investors. Kesri, however, added that it would not have much impact on the overall investment scenario since the government has already ordered a judicial probe.

“Had the local administration dealt with the issue tactfully, it could have been easily averted. But the incident might instil a sense of doubt among investors from outside who might compare it with the violent uprisings in West Bengal,” Kesri added.

BIA president and industrialist Shailendra P. Sinha was more circumspect. “The problems related to land and its acquisition is similar to what happens anywhere else in the country. If such incidents have adversely impacted investment elsewhere, it could have a similar effect on the state as Bihar is no exception,” he said.

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