Senior BJP leader Sushil Kumar Modi today assailed the Nitish Kumar government in Bihar for scrapping various subsidies for private investors and claimed that the state stared at deindustrialisation amid growing unemployment.
"The Nitish Kumar government has withdrawn 90 per cent subsidies and other incentives for the industries under the 'Bihar Industrial Policy 2016'. As a result, the doors for the private investors have been shut that may lead to deindustrialisation in Bihar," he told reporters on the sidelines of 'Janata Durbar' at his official residence.
Making a comparative analysis of subsidies/incentives under the 'Bihar Industrial Policy 2011' and the 'Bihar Industrial Policy 2016', Modi said that the earlier policy has provision for as much as 35 per cent capital subsidy on investment, but the same has been scrapped under new policy.
Similarly, the 'Bihar Industrial Policy, 2011' had up to 50 per cent subsidy at a maximum amount of Rs 15 lakh under carbon credit unit incentive, but it has been withdrawn altogether, the senior BJP leader said.
Modi, a former deputy chief minister, said the incentive on land/shed for small and micro units at 50 per cent of the cost of investment and 28 per cent for large, medium and mega projects have also been done away with under the new industrial policy.
The subsidies on technical know how, capital power generation/diesel generator set, project report incentive, electricity duty and taxes like luxury tax, VAT and Entry tax too have been withdrawn under the new policy, he said.
With regard to stamp/registration/conversion charge for land acquired for setting up industrial units, the earlier policy had provision for complete waiver, but under the new policy, the investors have been required to play these costs at the outset and then seek refund from the state government subsequently, Sushil said.
"This provision means that the investors' precious capital used on payment of stamp/registration/conversion charges will remain stuck till refund, otherwise they could have used it for other operational costs related to their projects," Modi explained.
Sushil Modi said that the state government has also
withdrawn an earlier provision under which it was required to pay EPF contributions in the case of an industrial unit employing 100 or more workers.
Now the only incentive that the state government has committed under new industrial policy was that it will pay interest subsidy on loans taken from the banks by the investors, but only partially, he said.
In the background of large-scale scrapping of various subsidies/incentives by the state government under new industrial policy, the private investors will not be keen to come to Bihar for investment as there will be no incentives for them.
"As it is, the investors have had reservations about investment in Bihar due to poor law and order situation...But now that the state government has rolled back incentives/subsidies, the industrialisation process will take a severe hit," the former deputy chief minister said.
Modi said "It appears that Bihar government has decided against going ahead with industrialisation in the manner that the incentives/subsidies have been withdrawn under new industrial policy."
The senior BJP leader urged Chief Minister Nitish Kumar to give a fresh look at the new industrial policy and restore various incentives/subsidies otherwise, he said, Bihar stared at deindustrialisation.
