The Bihar Industries Association building in Patna. Picture by Deepak Kumar

‘Economic growth has started again’

Do you think that the environment of Bihar is conducive for traders and industrialists to come to the state?

There have been some positive changes ever since the NDA came to power in the state six years ago under the leader- ship of chief minister Nitish Kumar. We have seen efforts to establish the rule of law. People have started believing that they would not be unnecessarily harassed and this had an effect in the trade and industry sector as well. Traders and industrialists have become confident and entrepreneurs are evincing interests to invest in the state to cash in on the positive scenario. It’s a welcome sign that the process of economic development has once again started in the state.

‘Law and order improving’

The government has not succeeded in attracting much investment despite the improved law and order situation. Why?

It will be wrong to say that investors have not come to the state. We have seen investment but the quantum has not been to the expected level. Some food processing units have either started production or would soon start their units. Besides, some big names in the breweries sector are likely to set up their units in the state soon. This is happening because of the improved law and order.

‘Power, land two problem areas’

What are the reasons that are preventing big business houses from entering the state?

There are several factors. First, we have to define what we mean by big investment. Any venture beyond over Rs 200-300 crore should be considered a big project. To get such projects, we need to have proper infrastructure. Then there is acute scarcity of power. For any big industry, power is the primary requirement. There has to be adequate, quality and cheap electricity. The grim power situation would continue even in near future, given the pace at which various thermal power plants are coming up. Another bottleneck is land. The government has already said it would not go in for land acquisition for industries. It wants willing entrepreneurs to talk directly to landowners. But nobody wants to part ways with his or her land in the state, where the land-man ratio is possibly the lowest in the country. Another handicap is non-availability of industrial raw materials such as mines. One should also remember that it is difficult for Bihar to import such materials at cheap rates because the state is land-locked. Then there is the bureaucratic control that hinders industrial growth to some extent.

‘Woo private developers’

Then what is the solution?

The government should take a liberal stand and encourage development of private industrial areas. This can, in turn, give confidence to entrepreneurs to invest in Bihar. Since the idea to have private industrial areas could lead to augment the land bank, the government should give incentives to the private developers (of the industrial area) beyond what is stated in the industrial policy. The size of an industrial area could be anything around 100 acres and above.

What kind of incentives and policy support do you expect from the government?

I would not like to speak on it at this juncture. Talking to the media, when the blueprint for such an area is yet to be formulated, might jeopardise the entire process.

‘Special category status will help’

On the special category status for Bihar…

It will certainly have a positive impact on industrialisation. If Bihar falls in the category, entrepreneurs can enjoy tax relief both in terms of excise duty and income tax. This will be a major boost to the industry and will surely bring in investment.

But facilities such as power and land would continue to be a problem.

Not exactly, as big corporate houses no longer talk about power as a problem. They set up their own captive plants. But as far as land is concerned, it would be a problem area even if the state gets the special category status. Industries would have to involve local players to get rid of the acquisition problem.

‘Electricity board has a role to play’

Since it would take time for power plants to come up in the state, what is the way out?

Open access, under which a party can enter into an agreement with a power firm for supply through the existing transmission and distribution lines of the power board. This could be a solution, provided the power board reduces its charge (imposed for using its transmission and distribution lines) to a rational level.

Apart from power and land, what is one thing that you would like the government to rectify?

There is an urgent need to bring in an attitudinal change in the state's top bureaucracy. If this happens, there will be rapid industrialisation in the state.

About Krishna Prakash Singh Keshri, better known as KPS Keshri

Born on October 26, 1947, at Mangal Gadh to late Jagta Nand Singh, a farmer, in Samastipur, Keshri did his matriculation in 1962 from the district. He graduated in engineering from BIT-Ranchi in 1969, but he did not go for a job. Keshri was actively associated with NCC in his school and college days and later he was chosen for the post of 2nd lieutenant in the Army. But he did not join the forces as well. Instead, the industrialist, who has two brothers and four sisters, first ventured into entrepreneurship in 1970 by setting up Prakash Udyog, which is at present engaged in packaged drinking water. He also heads Amrapali Foods Ltd and Jagat Developers Ltd, a realty firm. Keshri is still engaged in farming, which he inherited from his father.

What would you have been had you not been an industrialist?

I would have either joined the Army or taken up law as profession.

Son of late Kamta Singh and late Lakhmuni Devi, Basistha Narayan Singh was born on October 24, 1947, at Kopwan village in Buxar district. He went to village school and graduated in history in 1967 from Patna University. He did his postgraduation in history from the same university. He was married to Hewanti Singh in 1968 and has a son and two daughters.

What would you have been had you not been a politician?

I would have been a teacher. I was designated as the student chancellor of Patna University during the JP Movement. I used to contribute to newspapers and also edited a special magazine on Bangladesh. I was also a senior member of the steering committee of JP Movement. Besides being in jail during the JP Movement, I was also imprisoned for 19 months during the Emergency. I had given lectures on various social and political subjects in Jawaharlal Nehru University, Delhi University and Banaras Hindu University.

Fuel surcharge imbroglio

People from various trading and industrial organisations are not happy with the issue of fuel surcharge.

It is certainly a problem area because industries are not getting uninterrupted supply of quality power or power at a cheaper rate. The situation worsened with the power board imposing fuel surcharge. This has taken a toll on traders and industrialists. The government should stop realising fuel surcharge from industries in the interest of the state's development. A delegation of Bihar Industries Association had met the chairman and members of the Central Electricity Regulatory Commission to make them aware of various problems, including that of fuel surcharge. They appreciated our problems. The state gets its maximum share of electricity from NTPC's units in Kahalgaon, Talcher (Odisha) and Farakka (Bengal). NTPC is charging more from its Kahalgaon and Farakka units whereas it charges less from other states. The power board should take up the issue with the Centre.