Nitish woos info technology investors, promises top priority status to sector

Chief minister Nitish Kumar on Thursday said that the government was ready to offer ‘top priority status’ to the information technology (IT) sector projects, involving a minimum investment of Rs 5 crore and employing more than 50 people in their core activity.

Such a status would give these projects access to a set of ‘special incentives’.

Announcing this at the ‘Bihar IT and ITeS Investors Conclave 2017’, Kumar urged investors to consider setting shop in Bihar, at least as a test case, to tap the huge potential. “If you feel it is a good investment then you can expand. The state is willing to back you with the requisite support,” he said.

While several steps have already been initiated for the promotion of thrust areas, including IT, the government was willing to walk the extra mile for fast tracking investments in IT and ITeS (Information Technology enabled services) sector.

“The only rider is that the project should be up and running in three years to avail the special incentives,” he said.

Not only would proposals have access to online application facility and time bound clearance, they would be entitled for pre-production incentive of 100% waiver of stamp duty and registration charges, Kumar said, after releasing separate vision documents for promotion of investments in IT and ITeS and ESDM (electronic system design and manufacturing) sectors.

At present, industrial policy 2016, which is in force, has linked all its incentives and re-imbursements to the post production stage to ensure that sops don’t go waste in event of a project getting aborted midway.

The chief minister said 10% subsidy on interest component, with limit of 30% of the project cost for other sectors, would be ‘tweaked’ for IT sector investors to raise it to 50% for approved projects. Even the maximum ceiling for receiving such entitlement in the case of IT projects wouldl be raised from Rs 10 crore to Rs 20 crore, he promised.

Kumar said all new proposals would not have to pay land conversion charges and get 100% exemption from paying SGST for five years, in addition to relief in ESI and EPF for Bihari employees and Rs 20,000 subsidy for employees undergoing skill development training on completion of one year in service.

Maintaining that IT was the source of new knowledge, tackling corruption and cyber crime and bringing in transparency, Kumar said that the state has laid the ground work for the development of IT sector with adequate infrastructure and land pools at Rajgir, Bihta and Patna for the setting up of IT city, IT park and IT towers.

Bihar has been a land of knowledge and learning. Our youths are intelligent, hardworking and dependable. And, above all, we are keen to reclaim our glory as the knowledge-hub. Promoting IT sector is the logical way forward, he said.