The Nitish Kumar government in Bihar has reached out to the Centre to seek removal of the state-specific quota on production of ethanol as it has the capacity to produce more than its allocated share due to high availability of maize and rice husk. The state has also come out with a comprehensive industrial promotion policy for textile and leather based on relevant data and studies in the last nine months.
Nitish Kumar demanded twice in his speech on Wednesday in Patna at the release of the textile and leather investment promotion policy that the Centre should not bind Bihar within a quota for production of ethanol. This quota for states is based on its consumption of ethanol. Kumar had reportedly also expressed his concern to Highways Minister Nitin Gadkari, a keen enthusiast of the use of ethanol, and suggested Bihar’s quota be increased.
Prime Minister Narendra Modi had mentioned on June 5 during a programme to celebrate World Environment Day that India has reached its goal of blending 10% ethanol in petrol and this was done five months before schedule.
Bihar Industries Minister Shahnawaz Hussain said here on Thursday that the state has a proposal for Rs 30,000 Crore for this sector. Bihar has set plans for 17 ethanol plants of which one is already functional. One of the plants has run into some problems while 15 are under construction.
In a major boost to industry-starved Bihar, CM Nitish Kumar inaugurated a greenfield grain-based ethanol plant in Purnea. The state government is making an all-out push to generate employment and woe industries in the state before next elections. Rakesh Mohan Chaturvedi decodes Bihar’s efforts to attract industries into the state. Watch!
The state is trying to woo investors with proposals that promise ease of doing business through ready availability of labour, skilled workers, land, raw materials for sectors like food processing, textile and leather industry.
Hussain told reporters that the 2016 industrial policy had some shortcomings as other states scored over Bihar. The 2022 investment promotion policy for leather and textile has been formulated after perusing data collected post Covid and includes the feedback from migrants who had returned to the state.
Among the incentives offered to investors is Rs 10 Crore capital subsidy, employment generation subsidy of Rs 5000 per month for highly skilled, power tariff subsidy of Rs 2 per unit, and the state bearing 50% of the cost of patent registration.
“Don’t look at Bihar from the old perspective. Come to Bihar to invest,” Hussain said, adding that law and order, infrastructure and power situation has improved under Nitish Kumar.
Improved air connectivity from small cities of Bihar and the presence of two highway corridors will also help the state in exporting its products.
The state also has the wherewithal for promoting the food processing industry and is promoting it in a big way.