 "BIADA's exit policy fails to vacate industrial land")
Out of 450 sick units in the state, only 8 have approached the Authority in response to an exit policy it floated in May.
The policy was launched with an objective to reclaim unused land leased out to investors, if they find it difficult to run the industrial unit.
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However, out of total 450 sick units in the state only a handful choose to opt for the policy. "We were not as much successful as we thought we would be," said a senior government official, "Till date we have received only 8 proposals. Six of them are from Muzaffarpur district and the rest of them are from Buxar and Bhagalpur. Investors want to return the land, but at a much higher rate. This has been a contentious issue and it blocked our way." The policy was launched on May 1 and valid till October 31.
At present there are almost 450 sick units in the state, set up on 200 acres of BIADA land. They have either zero productivity or have completely shut down.
The authority launched, after much deliberation, its ambitious exit policy to free its blocked land. Under this policy, the state government offered them their money back, if they surrender the land.
However, the policy was only applicable for those who were allotted land after 2006.
It proved to be a major road block as majority of sick units were set before 2000.
On the other hand, the eligible ones refused to opt as they are asking for higher rate to cover their cost.
In the last seven years, Bihar has received investment proposals worth Rs 3 lakh crore. However, with a population density of 1,100 people per square km, the state government has been unable to vacate land for industries.
To counter the acute shortage of industrial land, the BIADA has launched this exit policy. However, given the damp response, the state government is now thinking to revise the policy, to make it more attractive.