Bihar offers sops to entrepreneurs for sugar mills

Aiming at reviving all 15 state-owned sugar mills which have been closed, and catering for the requirements of over five lakh sugarcane farmers, the Bihar government today offered a slew of investment opportunities for private entrepreneurs, besides unveiling incentive packages for setting up new sugar mills and allied industries in Bihar.

"We have already constituted a five-member committee led by the state sugar development commissioner VN Mishra to suggest measures for revival of the 15 sugar mills closed down during the RJD government rule, which had initiated action for their liquidation," Nitish Mishra, state minister for sugarcane development, told a press conference.

Mishra said the committee would come forward with its report suggesting alternative measures for re-opening the state-owned sugar mills for which 11 entrepreneurs had evinced interest.

Stating that the RJD government had also approached the Patna High Court seeking liquidation of the state-owned sugar-mills, he said once the committee's report came in, the new government would file a review petition enclosing with it the strategy for revival of the closed mills to the court for its approval.

Referring to the steps taken by the state government, Mishra said while investors were given the opportunity to choose their own locations for setting up the sugar mills, the incentive package would comprise reimbursement of central excise duty on sugar for five commercial years, exemptions from purchase tax on sugarcane for five crushing years and stamp duty and registration fees.

Besides, the state government would grant 10 per cent subsidy on capital investment or a maximum of Rs 10 crore, which ever was less on machinery, after completion of the first year of commercial production, the minister said.

Mishra said under the incentive package for distillery and ethanol, the state government had decided to exempt administrative charge on molasses for five years, reimburse sales tax (VAT) on molasses for five years and exempt land stamp duty and registration fees.

The minister said the state government had also received proposals from 15 entrepreneurs, including a foreign-based company for opening new sugar mills.

Stating that the sugar industry was the largest agro-based industry in Bihar and that it also generated sizeable employment in the farm sector directly as well as through ancillary industries and related activities, he said it was estimated that about five lakh farmers and their dependents were engaged in the cultivation of sugarcane.

"We are irrevocably committed to fulfil our promise for revival of the sugar mills, besides setting up new sugar mills", he said, adding that Union Agriculture Minister Sharad Pawar would visit Bihar next week with five potential investors who had shown interest in setting up new sugar complexes in Bihar.