Industrial Area

Bihar Industrial Area Development Authority (BIADA)

• Under the aegis of the Bihar Area Development Act, BIADA was established to develop infastructure for industries.
• BIADA has four regional offices (Patna, Darbhanga, Bhagalpur, and Muzaffarpur) which together cover 50 industrial areas or development centres and mega industrial park.
• To facilitate industrialisation in the state, several important reforms have been carried out by the State Government. The reforms are given following:

1. Bihar Industrial Area Development Authority (BIADA) (Amendment) Act, 2017 was passed, replacing the earlier BIADA, 1974 Act.
2. Various policies were formulated which included Exit Policy, Allotment Policy, Allotment Facilitation and Surrender Policy, Lease and License Policy, and a Land Pooling Policy, as per the new BIADA (Amendment) Act, 2017.
3. Industrial Area Management Committee (IAMC) has been constituted for better industrial area management.
4. Provision for direct purchase of land from land-owners for the establishment of new Industrial Areas.

Industrial Incentive Policy, 2006

Under the Industrial Incentive Policy-2006, provisions have been made for granting pre-production incentive of subsidy /exemption from stamp duty and registration free and post production incentive of grant/exemption for preparation of project reports, purchase of land/shed, technical know-how, captive power generation/diesel generating set, quality certificate. VAT, luxury tax, electricity duty, conversion fee, market fee, etc.

• With the implementation of this Industrial Incentive Policy-2006, it is expected that there will be growth in the per capita income of the state as well as the industrial growth.

Strategy of the Policy

• Create favorable circumstances for the establishment of industries in the state. So that among the investors, there may be positive communication.
• Bihar Single Window Clearance Act-2006; to promote all round development to 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 state and in this regard and for other concerned subjects Bihar Single Window Clearance Act- 2006 has been enacted.
• Bihar Infrastructure Development Enabling Act-2006: to provide for rapid development of physical and social infrastructure in the state 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 in identifying generic project risks, Bihar infrastructure.
• Development Enabling Act, 2006 has been enacted. In order to simplify the inspection off factories, provision of self- certification will be made.
• Industrial growth is adversely affected due to the complicated labour laws. Such labour laws will be made simpler and development oriented.
• Human resources will be developed in such a way which can promote and create industrialization of high degree. Besides different institution existing will be strengthened to improve skill.
• 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.
• Marketing arrangement will be made for small, tiny, cottage industries, handlooms and handicraft. For the creation of the basic facilities at per with 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.
• Development of Infrastructure: In order to review sick unit, to identify such units and to suggest necessary remedial measures and to prevent further sickness by development a district level monitoring system. To develop handicraft, handloom, khadi, silk and village industries.

Bihar Industrial Investment Promotion Act, 2016

• It has been notified, which include following important provisions- Registration of all the Industrial units will be voluntary except those fc which license is necessary under the Industries (Development and Regulation) act 1951 for Industrial Manufacturing.
• By inviting online application in a common application form by industrial unit, approval of State Investment Promotion Council may be obtained within 30 days of the receipt of the application.
• Provision of self-certification of the document related to the clearance by applicant.
• Provision of providing clearance for the establishment of industry and production of all kinds, within 30 days or time stipulated in the related Acts/Rules.
• Provision of deemed clearance in case if clearance is not provided within a stipulated time by the concerned department.