PATNA, Sept 15, 2017/Team Estrade//– In a focused attempt to showcase Bihar’s developmental efforts and highlight the initiatives being taken to create a strong eco-system as well as attract big-ticket investments in the IT and ITeS, ESDM sectors, the Bihar Government has come out vision documents titled ‘Bihar IT/ ITeS Investment Promotion Vision 2017’ & ‘Bihar ESDM Vision 2017’.
The vision document was unveiled by Nitish Kumar, Chief Minister of Bihar at the Bihar IT and ITeS Investors Conclave 2017 here today. The main objective is to promote IT, ITeS & ESDM investment in Bihar.
“To develop the IT/ ITeS industry of the State for inclusive socio-economic growth and gainful employment generation, and to emerge as the next investment destination for IT/ ITeS companies in the country, while offering and enabling environment for industrial investments, stable policies and transparent governance, strategic infrastructure development, and enhanced service delivery by effective use of information technology,” Nitish Kumar, Chief Minister of Bihar told a large assembly of industry leaders coming from across the country.
The State Government has taken decision to build an IT City in Rajgir in Nalanda district on 100 acres of land. The Bihar Government has also earmarked 25 acres at Bihta in Patna for a proposed IT Park with state-of-the-art facilities, seamless internet connectivity and uninterrupted quality power availability. An IT Tower is also being developed in the State capital to house IT/ITeS and Electronic companies. Premium properties with plug-and-play infrastructure are proposed to be offered to start-ups in the State and as per the incentives offered by the Bihar Start-up policy 2017 to promote entrepreneurship in the State.
Beside these, to promote industry-led growth in the State, Bihar is also in the process of implementing key reforms and strategic initiatives that will help the State accelerate its envisaged development plan in the sector. The state has drafted Bihar Industrial Investment Promotion Policy 2016, and Bihar Startup Policy 2017, offering sector specific incentives, and subsidies to IT/ITeS and ESDM units and startups among many other sectors in the State.
Focus areas: As the State recognizes the significance of the IT/ ITeS sector as major contribution towards the State economy, the State Government wishes to channelize its efforts towards certain key areas that have been identified as major avenues towards high growth, gainful employment generation, and income augmentation while leveraging the traditional strengths and strategic advantages of the state. The focus areas include IT products, software and services, Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), Call-centres, Digital content development, Smart technologies, Internet of Things (IoT), Data centres and Big Data.
Bihar ESDM Vision 2017: The state has already embarked on the development of the ESDM industry with the implementation of several governance initiatives, and setting up state-of-the-art infrastructure earmarked for IT/ ITeS and ESDM. Besides these, to promote industry-led growth in the State, Bihar is also in the process of implementing key reforms and strategic initiatives that will help the State accelerate its envisaged development plan in the sector.
Nitish Kumar, Chief Minister of Bihar said, “To facilitate, promote, and develop the ESDM sector of the State and make Bihar one of the most preferred investment destinations for ESDM companies in the country, while offering an enabling environment for industrial investment, transparent and dynamic governance, large scale adoption of R&D and innovation, and supply of a large pool of technically trained manpower.
Features of the Vision Document are as follows,
In order to establish Bihar as the most preferred investment destination, Government of Bihar had announced the Bihar Industrial Investment Promotion Policy, 2016 that is operational since last one year. Based on the assessments of their economic and employment generation potential, an increased focus is required on the IT,ITES and ESDM sector.
So any unit that invests more than 5 crores in fixed assets and plant and machinery, excluding the cost of the land and generating direct employment of 50 crores workers in IT/ITES and ESDM sector shall be treated as the high priority sector and shall be given following incentives in addition to that existing in the Industrial investment promotion policy 2016 of the state: –
- Exemption from stamp duty/registration fees – In the present industrial policy-2016, 100% reimbursement is provided on the sale/transfer/lease of the land only after the production starts, but now these units 100will be % exempted from paying stamp duty/ registration fees on the sale or lease of land. In case of land allotted by the government, no stamp duty is to be paid.
- Exemption from the land conversion fees:- In the existing industrial policy, 2016 the land conversion fee is 100% reimbursed only after the production begins, but now 100% exemption from payment of “land conversion fees” shall be given for the conversion of agriculture land.
- Interest subvention: – In the existing industrial policy , 2016 the interest subvention on the term loan availed by the unit from the scheduled nationalised bank /financial institution approved by the SEBI was 10% or actual rate of interest whichever is lower , subject to upper limit of 30% of the project cost and upper limit of 10 crores. Now interest subvention of 10% to the eligible units on the term loan subject to upper limit of 50% of the project cost and upper limit of 20 crores will be give
- Tax incentive: – All new units will be entitled to avail 100% reimbursement of SGST on the net tax payable for initial five years of production.
- Employment cost subsidy:– 50% reimbursement (in case of male workers) and 100% reimbursement (in case of female workers) of expenditure on account of contribution toward ESI and EPF scheme (SC/ ST) for a period of 5 years for new units for those employees who are domicile of Bihar up to a maximum of Rs 1000 per month in case of female and 500 per month in case of male.
- Skill development subsidy (SC/ ST): –The State Government shall provide skill development subsidy of Rs 20,000 per employee/ Bihar Skill Development Mission (BSDM) rates whichever is lower. This incentive will be applicable for training of employees/ staffs who are domicile of Bihar and shall have to be employed for at least one year.
Bihar promotes IT/ITeS & ESDM Investments
Bihar Government promotes IT/ITeS & ESDM Investments
