BULLETIN

Amendements in Bihar Investment Policy June 2020

Amendements in Bihar Investment Policy June 2020

The Bihar Industrial Investment Promotion Policy 2016 which is effective from 1.09.2016 and will continue till completion of five years. Further, Bihar government in its cabinet meeting held on 26.06.2020 has come out with a few amendments in this policy which shall be effective from the date of notification. The existing benefits such as interest subvention, SGST reimbursement, Stamp duty & land registration charges, etc shall continue. The highlights of amendments are:

  • The validity period of the policy is extended and shall be continued till 31.03.2025
     
  • Units having investment less than Rs. 25 Lacs or proposed employment less than 25 person shall not be eligible for application under this policy
     
  • Dry warehousing with cleaning and drying facilities, cold chain system and bottling units (Juice, Ketchup and Squash) are shifted from Non-priority sector to Priority sector
     
  • Agriculture Input Manufacturing units (Tissue Culture Labs and Crop Care Chemical Units), Non-agricultural equipment manufacturing units and Electrical goods (Electrical Generator, Transformer, Electric Distribution & Control Equipment, Electric Lighting Equipment, Electrical Equipment And Wiring & Wiring Equipment) manufacturing units are included in Priority Sector
     
  • Wood based industries such as paper, match box, timber, ply wood, Ply board, Laminates, Veneer, Particle board, Fibre board, bamboo based industries, etc are proposed to be included under Priority Sector
     
  • Fly Ash Bricks, Rice Husk based products, Automobiles, Defence products, Ornaments, Ferrous & Non-Ferrous Metal industries & its Fabrication units, Sports products and Telecommunication equipments manufacturing units are proposed to be included under Priority Sector
     
  • Apart from existing benefits, a special package shall be available to the investors who are willing to shift their existing running units from other states to Bihar. The additional benefits shall be in form of:
  1.      Reimbursement of 80% of shifting cost (cost of transportation, installation & commissioning, etc.) after starting commercial production
  2.      To start commercial production, 80% reimbursement of transportation cost on purchase of raw materials and selling of finished goods subject to a maximum of Rs. 10 Lacs ,
  3.      Reimbursement of PF contribution (Employer & Employee) for one year and benefit of deemed approval shall be available as per policy.
  4.      Waiver from inspection/verification of such units from various Bihar government agencies for one year except Pollution control Board and Fire department
  • E-rickshaw (two & three wheelers) production is added in High Priority Sector industries
     
  • Ethanol production, Pulse & Wheat based industries, Spice & Herbal and Textile industries (Yarn production, Dying & Printing) have been added to High Priority Sector