Industrialists, trade and commerce bodies in Bihar have largely hailed the state government's approval to the Bihar Industrial Investment Promotion Policy (BIIPP) 2016, saying it will boost the pace of industrialisation in the state.
However, some industrial bodies have expressed apprehension over how much investment the new policy will be able to generate.
The old industrial incentive policy 2011 expired on June 30 and the new one was much awaited, Bihar Chamber of Commerce and Industries (BCCI) president O P Shah, said, adding, "The tax incentives for priority sectors for five years as well as 10% interest subvention on bank loans will attract investors."
Shah said, "Bihar government's 2011 policy as well as food processing policy 2008 were among the best in the country and many other states also followed it. About 12,000 crore investment came to the state with the implementation of that policy."
He added, "We hope more and more investors will be attracted to Bihar with the implementation of the new policy which has a slogan for industrialists - Paanch saal tak na byaaz na tax, udyog lagae, khud badhein Bihar badhayein (No interest or tax for five years, establish industries, progress yourself and develop Bihar)."
However, Bihar Industries Association president Ram Lall Khetan said the new policy is weaker than the old one. "It is difficult to say how much investment this policy will attract and is beyond my comprehension why the state government has made such a move. A better policy was required," he said.
Members of the Bihar Entrepreneurship Association (BEA) said tax and ineptest incentives were a welcome move to fight competition from other states attracting investment. "It's an inclusive investment pulling policy. However, the real test of the policy will be in its efficient implementation and providing hassle free service to every single investor in terms of giving licences and approvals," BEA secretary-general Abhishek Kumar said.
He said the bunch of inclusive schemes for different sections of people is a good move to attract every section of the society towards entrepreneurship.