Bihar govt woos agri implement manufacturers from Punjab

“They also offered 10% interest subvention on loans taken by a company for setting up business. So if we get loan @16% rate of interest, we need to pay only 6% while the rest will be paid by state. Not only this, there is a tax holiday for state’s share of GST for the first five years. Also, if we set up a unit, 50% of reimbursement on ESI and PPF for male employees will be done by Bihar government while it will be 100% for female employees. This offer will also exist for the first five years. We don’t get any such offer in Punjab. Moreover, the single-window system in Punjab is still not paperless and transparent. Also, 45% of our machinery is sold in Bihar and adjoining states. So our freight charges will also be reduced.”

Baldev Singh, owner of Amar Agriculture and a former president of PSAIMA, said, “To start with, a group of about 25 persons will be visiting Bihar next month. We have also been given offer of land on lease ranging from 49 years to 99 years, depending upon our investment.”

However, industrialists also raised some doubts in the meeting. Gaurav Sehgal, chairman of Ludhiana Zonal Council, said, “We normally get labour from Bihar for working in Punjab’s industry. Will we also be able to get technical staff in our Bihar units.”

To which, Dr S Siddharth, principal secretary, department of industries, Bihar, replied saying many large units, including Railways were already working in the state and that Hero Cycles too had set up a unit in Bihar. He also cited examples of many ancillary units moving to Bihar from Ludhiana and getting qualified technical staff of all types from within the state only.

Punjab has over 200 agriculture machinery manufacturing units, of nearly 50 were represented at the meeting. Farm machinery manufacturers also have plans to meet Punjab’s Finance Minister Manpreet Singh Badal to discuss the offers given by the Bihar government before making a plan. Sachit Jain, CII’s northern region head, said, “I have learnt that the Bihar government has earmarked a Rs 500-crore venture capital fund for start-ups. This will be a big boost for emerging bright business ideas.” The Bihar delegation will also be meeting sports industry representatives in Jalandhar on Friday.

Textile cluster to start investment

After having a meeting with farm machinery industry leaders, the delegation also met textile industry representatives to follow up on their first meeting in October last year. Rohil Lal, head of CII Bihar, said, “A group of 25 textile industry leaders have agreed to move in a cluster to Bihar to set up their units after today’s meeting and they will file online application soon.”