Patna-based LPG bottling firm Bihar Cylinders will set up a Rs 4-crore LPG refilling plant on an acre of land in Mokama, marking the first investment in the industrial area earmarked there, around 100km east of Patna.

Rakesh Kumar, a co-owner of Sri Ram Chatradhari Industrial Area Private Limited, and his team succeeded in wooing the investor.

"The industries department had notified the private industrial area policy in September 2013 and had requested landowners to come forward and provide their plots for the same," Rakesh said. "We were the first to come forward and our proposal was approved by the state investment promotion board (SIPB) on October 31, 2013. It has been an endless wait since then - from awaiting government grants to waiting for investors. With much effort and time wasted on meeting the former minister and the department officials, we thought of trying on our own and have tasted success for the first time."

Paramjeet Singh, chief executive officer, Bihar Cylinders, said he knew Rakesh well and trusted him, and echoed Rakesh's perception of the government's attitude.

"Rakesh and his partners requested us and we decided to set up a plant on their plot around four months back," Singh said. "We too have been facing issues with our file stuck at the district magistrate's office since a couple of months for some no objection certificates (NOCs). No one listens to industrialists and they (government officials) aren't interested at all. Once we get the required NOCs, it will take us a maximum of six months to start the new plant."

According to state policy, a group of landowners can come together and form an SPV (special purpose vehicle); the ownership of the land will be in the name of the SPV, which in this case is the Sri Ram Chatradhari Industrial Area Private Limited. The policy had first said that investors would be given land on lease for 30 years, which has been hiked to 90 years. The policy also talked about the state government providing a grant of 30 per cent of the land cost for developing infrastructure.

Rakesh said: "The government has not shown a proactive approach towards helping us with investors. We go through different websites to know about investors willing to investand have started contacting them. We tasted success and this has given us much-needed confidence."

Sanjay Goenka, vice president, Bihar Industries Association (BIA), said: "The new government has been formed and work has started. The department is working on some amendments in different policies. Though private industrial areas have not seen investors, work is on for the same," he said.

Pankaj Kumar Singh, director (industries), said the department was in the process of changing the land-holding policy. "Things will move smoothly soon," he told The Telegraph.

"The first thing one needs to ensure is that the lease-hold clause is removed and converted into freehold. Only then will investors will start coming. We are moving to the cabinet with the same and once it is approved, the grants will be released and things will fall in place. It is expected to be approved very soon."