Patna, June 8: State’s prominent industry bodies — Bihar Chamber of Commerce (BCC) and Bihar Industries Association (BIA) — have welcomed the new industrial policy of 2011. The bodies said the initiatives would accelerate the industrial growth in Bihar.

Addressing a news conference, BIA president Shailendra P. Sinha said: “This is a landmark industrial policy and is among the best (policies) we have had. It is certainly an improvement from the previous industrial policy of 2006, which came to an end in March 2011. A new policy was required to propel industrial growth in the state.”

Citing the salient features of the new policy, Sinha said the capital subsidy of Rs 2 crore has been enhanced to Rs 5 crore for investments up to Rs 500 crore. Besides a capital subsidy of Rs 30 crore has been given beyond and above the investment of Rs 500 crore.

Grant of 50 per cent on the purchase of plants and machinery for setting up captive power plant was available to only new industrial units but the same facility has been extended to the existing firms as well, Sinha said, adding that the quantum of subsidy would go up by 60 per cent if any firm wishes to set up a non-conventional captive power plant. Similarly, 10 per cent of extra funds would be given to any unit that follows the government’s quota policy, he said.

BCC president O.P. Sah said: “It is the best amongst all industrial policies in the country. It is quite evident that the focus of the government is to ensure the transformation of Bihar as a hub of small, medium and large scale industries for whom the policy contains a number of very useful incentives.”

On chief minister Nitish Kumar’s proposed weeklong visit to China, along with an eight-member delegation of trade and industry, Sah said: “This will be the second such visit after Independence, when trade and industry delegation is accompanying a chief minister from Bihar to a foreign visit. In 2007 a delegation of the industry body had gone to Mauritius along with Nitish. We are happy that trade and industries are being given due respect and representation. We will study China’s innovative ideas.”

Terming the visit as “historic”, Sinha said: “The delegation will visit Shanghai, Shandong and Beijing. We will study agriculture, irrigation practices, power generation, foodpark in Shanghai and will see whether the good things could be replicated in our proposed foodpark at Hajipur.”

Nitish will lead a delegation to China on June 12.