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Strategy |
(i) To create favorable circumstances in order to establish industries in the State so that there may be positive communication among the investors.
(ii) Bihar Single Window Clearance Act 2006
To promote all round development of the state and industrial growth rapid clearance procedures for establishing industries, to issue license and certificates, to provide a congenial atmosphere to the investors of Bihar and in this regard and for other concerned subjects Bihar Single Window Clearance Act - 2006 has been enacted.
(iii) Bihar Infrastructure Development Enabling Act 2006 –
To provide for rapid development of physical and social infrastructure in the State and to attract private sector participation and to provide for a comprehensive legislation for designing, financing, construction, operation, maintenance of infrastructure projects, so that administrative and procedural delays are reduced, for identifying generic project risks, Bihar Infrastructure Development Enabling Act, 2006 has been enacted.
(iv) To simplify the procedure of inspection of factories, provision of self-certification will be made.
(v) Industrial growth is adversely affected due to the complicated labour laws.
Such labour laws will be made simple and development oriented.
(vi) Human resources will be developed in such a way, which can promote industrialization of high degree. Besides, existing different institutions will be strengthened to improve skill.
(vii) Land Bank- To meet the requirement of land for industries and development schemes, Land Bank will be established in the state. By this Bank, Land will be made available according to the requirements of different industries and for development schemes.
(viii) Marketing arrangements will be made for small, tiny, cottage industries, handloom and handicraft.
(ix) For the creation of the basic facilities of international level, to enhance capital investment in the industrial areas and invite the private sector for investment and to encourage public private partnership for this purpose.
(x) Development of Infrastructure.
(xi) In order to revive sick units, to identify such units and to suggest necessary remedial measures and to prevent sickness by developing a district level monitoring system.
(xii) To develop handicraft, handloom, khadi, silk and village industries.
Investment And Exemption Policies
1. Pre - Production Incentives
Stamp duty and Registration fee: Tiny, small, medium and large scale industries which are to be established in the industrial area/shed and outside the area of the Authority will enjoy the full (100%) exemption in stamp duty and registration fee in lease/sale/transfer. This facility will be granted only for the first time.
2. Post-Production Incentives
(i) Project- Report Incentive:
Reimbursement of the cost incurred in the project report preparation by the industrial units at the rate of 50% subject to a maximum of Rs.75,000/- will be made available provided, the project report is prepared by any of the firms recognised by the Industry Department. The reimbursement will be made to the unit after commencement of the production.
(ii) Incentive granted on land/Shed:
The Industrial Units located in Bihar Industrial Area Development Authority/Export Promotion Industrial Park / Food Park / Agricultural Export Zone would be eligible for the following incentive / subsidy. These facilities / concession tothe industrial units will be made available only after the commencement of production.
Industry Grant
1. Small/Tiny units/Financial Limit. 50% or 7.50 lacs (Maximum)
2. All large/medium/mega units/Financial Units 25% or 15 lacs (Maximum)
(iii) Financial assistance for Technical-know-how:
If an entrepreneur obtains Technical Know-how from any recognised National research center / laboratory or institution to establish or to expand his industry, he will be reimbursed 30% (maximum Rs.15.00 lacs) of the fee paid to the institution/organization for the technical know-how. This facility will be provided to the unit after commencement of production.
(iv) Incentive Grant for capital investment on Captive Power
Generation/Diesel Generating Set:
50% (Fifty percent) of the amount Spent on plant and machinery in the establishment of Captive Power Generation/Diesel Generating set will be granted to the industry. No upper limit for this amount has been fixed. This facility will be made available after the unit comes into production.
(v) New industrial units will be granted relief from payment of electricity duty under the Bihar Electricity Duty Act, 1948 for the generation and for own consumption of electricity from D.G. Set and Captive Power Units.
(vi) Subsidy / Incentive on VAT:
This facility will be available to Small / large / medium industries. The industrial unit will get a passbook from the State Government in which the details of the tax paid under Bihar VAT would be entered and verified by the commercial Taxes Department in the form prescribed in Appendix - III. The Director, Industries will be authorised to pay the incentive amount on the basis of the verification.
The new Units will avail 80% reimbursement against the admitted VAT amount deposited in the account of the Government, for a period of ten years. The maximum Subsidy amount is payable 300% of the capital Invested.
Clarification: The incentive would not be payable on the amounts imposed as penalty and the difference of amount between tax assessed and accepted under the Central Sales Tax/Bihar Value Added Tax Act, 2005 and Bihar Entry Tax Act.
(vii) Zero VAT means the production of items, which do not attract VAT. Such units which produce items attracting zero Vat and Pay income tax would be eligible for incentive up to a maximum utilization of 70% of the installed capacity (maximum limit) as per Para (vi) above. Incentive will be payable after the inspection/recommendation by a committee constituted under the chairmanship of the Director Industries on the basis of inspection and recommendation by technical officer of the Department.
(viii) Besides aforesaid subsidy / concessions, the following exemptions will be provided:
a.100 % exemption for seven years in luxury tax for seven years
b.100 % exemption in electricity duty for seven years
c.100 % exemption in conversion charge
d.100 % exemption in market Fee for seven years
ix) Facilities granted for the units working under adverse situation:
Such working units which have been working under adverse situation for years will be reimbursed 25 percent of the deposited VAT amount in the account of state government against admitted VAT amount. This reimbursement will be admissible for five years continuously.
(x) Industrial Rehabilitation Fund:
In order to revive the sick and closed industry, with the co-operation of the Commercial Banks, the State Government and Bihar Industry Association, a corpus fund will be created.
(xi) S.C / S.T / Women / Handicapped:
a. Under this category, entrepreneurs will avail 5% additional grant/exemption/subsidy than the limit fixed under this policy.
b. Up to a turnover limit of Rs.30 lakhs per annum S.C / S.T. / Women / Handicapped category entrepreneurs who run small and tiny
industries will avail 100% subsidy of the deposited amount in the account of Government in the form of VAT for a period of ten years.
(xii) Exemption from AMG / MMG:
Working units at present and new units will avail exemption from AMG / MMG from the date of declaration of the New Industrial Policy. This facility will be granted for five years.
(xiii) Central Sales Tax (CST):
Only 1% CST will be payable on the items produced by the registered small and medium units in Bihar.
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