‘Land crunch hits investments in Bihar’

PATNA: Bihar Industrial Area Development Authority (BIADA)’s MD R S Shrivastav has expressed disappointment over the BIADA’s “poor performance” as several investors withdrew their investment proposals during the six months from April due to non-availability of land in the state.

Addressing newsmen through video conferencing on Thursday, Shrivastav said 36 projects were given clearance from April to September last year, but their number plunged to 26 by the time April to September ended this year.

“We have also seen decline in investment from Rs 606 crore during the same period last year to Rs 288 crore this year, the main reason being non-availability of land,” he said, adding several major firms were waiting for land allotment by BIADA.

Shrivastav said those who went away due to non-availability of land included Priya Gold Company which was expected to invest Rs 250 crore. “We are on the verge of losing another proposed investor, ITC, which is expected to invest more than Rs 1,200 crore,” he said.

The ITC has been waiting for land allotment for the last one year. “The company requires 70 acre land in Muzaffarpur, which is currently with the Bihar State Sugar Corporation. We are unable to give the land to ITC because the sugar corporation is not transferring the land to us,” explained the BIADA MD.

According to him, a US-based company has proposed to invest Rs 350 crore to set-up a Maize Park in Purnia, but BIADA is unable to facilitate it for want of land.

“Apart from non-availability of land, another issue is non-allotment of land to non-priority manufacturing and service sectors. For example, three cement projects — each worth Rs 600 crore — are pending as we are not allowed to give land to this non-priority sector,” Shrivastav said.

He said he would submit a proposal to principal secretary (industries) K K Pathak at a scheduled meet on November 16, seeking land transfer from the state government to BIADA, amendment to the Bihar Industrial Policy 2016 and allotment of land to non-priority sectors. He said BIADA has 116 acre land in bits and pieces across the state.