 "Bihar govt sanctions Rs 200 cr for industrial subsidies")
Earlier in May, the state government had sanctioned Rs 300 crore for industrial subsidies.
The amount would be used for giving capital subsidies, reimbursement of cost incurred on detailed project reports, VAT reimbursement, grants on power generation and energy production from non-traditional sources.
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"There state government has offered several pre - as well as - post production benefits under its industrial policy," said Brajesh Mehrotra, Principal Secretary of the Cabinet Coordination department, "These have been offered for attracting investment to Bihar. For this the state government every year sanctions a hefty amount as subsidies for industrialists. This year state government has decided to sanction Rs 200 crore for this purpose. The industries department will now disperse the amount according to the requirements."
These subsidies and exemptions were announced under the new industrial policy of the state government, which came into effect in 2006 and later revised in 2011.
This amount will be additional of the amount of Rs 300 crore, which was sanctioned in May.
According to the industries department sources, majority of the amount will be spent on the capital subsidies.
Apart from this, tax reimbursement and electricity duties exemption will also have large shares in this money.
The state government has waived off stamp duties and registration charges on land purchased for setting up industrial units.
It provides 35 percent of the total project cost as capital subsidies for food processing units. The policy also promises to provide 80 per cent reimbursement of VAT for 10 years under the enterprise promotion programme.
The industrial policy also provides grants to the investors for setting up captive power plants or purchase of new generator sets.