A glimmer of hope for investors facing land troubles has begun to appear as the state Government today approved setting up of private industrial parks in Bihar.
"In last seven years, several entrepreneurs have shown their interest in investing in the state," said Brajesh Mehrotra, Principal Secretary of the Cabinet Coordination Department, "however, due to scarcity of industrial land not much of the investment proposals came through. Therefore, for the industrial development of the state, the government has approved setting up of private industrial areas in Bihar. These industrial areas will be set up through Special Purpose Vehicles (SPV) and they need to be registered with the state government." The state government has also decided to waive off stamp duty and other duties regarding the conversion of the land.
The official added, "The landowners, who want to give their land for this purpose, have to transfer their title deeds in favour of the SPV.
The Articles of Association for these SPVs will be decided by the state government separately. These SPVs will be entitled for a 100 per cent rebate in stamp duty, registration fee and conversion duties."
According to the policy, a minimum of 25 acres land and 10 industrial units will be needed for establishing a private industrial park.
The SPV may allot land to 20 units on a long term lease of at least 30 years. In case of higher number of units, the land will be provided to them through brunching. The state government has clarified that under no circumstances the total number of units will be less than 10 in an industrial area.
