India's Bihar state clears policy to promote textiles, leather sectors

After agriculture, these two sectors and their allied and subsidiary manufacturing units offer the maximum employment opportunities.

Around 80-90 per cent of workers in the state are in the textile sector, an internal assessment by the state government found.

“The government will provide capital subsidy of up to ₹10 crore, freight subsidy of up to ₹10 lakh per year if the manufactured goods are exported, and up to ₹5,000 per month subsidy on the wages of every worker employed with a unit,” cabinet department additional chief secretary S Siddharth said.

The state will provide power at a tariff of ₹2 per unit and a subsidy of ₹10 lakh on every patent.

All the incentives will be over and above the interest subvention, goods and services tax reimbursement, stamp and land conversion fee waivers provided by the Bihar Industrial Promotion Policy, 2016.

“We can vouch that our textile and leather policy is not only competitive to the policies of all the other states, but is also better than theirs. We will locate the new manufacturing units that come in textile and leather parks,” Siddharth was quoted as saying by media reports from the state.

The Bihar government has sent a proposal to the centre to create a 1700-acre textile park in the West Champaran district. Other such parks are planned to be created in Bhagalpur, Nalanda, Supaul and Darbhanga.

“Special teams of the government will monitor that the clearances, no objection certificates and establishment of industrial units that come to Bihar are done timely and smoothly,” Siddharth added.

ALCHEMPro News Desk (DS)