Investment Proposal from Rice to Sugar in Bihar, Plan to set up 20 New Units | 21 Sep 2022

Why In News?

• According to information received from media sources on September 20, 2022, new proposals worth Rs 529 crore have come for investment in the field of food processing in Bihar. There is a plan to install 20 new units in these proposals. The State Investment Promotion Council has given its preliminary approval.

Key Points

• These proposals have come at the 41st meeting of the State Investment Promotion Council. An investment of Rs 419 crore is proposed to set up seven major food processing units. The proposed food processing unit in Vaishali is likely to attract an investment of Rs 213 crore. The unit will manufacture ketch-up, tomato paste and nutritional powder.
• Gopalganj-based Vishnu Sugar Mills Limited will spend Rs 90 crore on molasses-based ethanol distillery, Machhaulia Sugar Industries in West Champaran will also spend Rs 27 crore on molasses best distillery plant.
• Apart from this, a sugar mill plant will be set up at Harinagar Sugar Mills Limited, West Champaran at a cost of Rs 80 crore. Similarly, factories for various types of sattu and fruit products are proposed in Aurangabad Industrial Area.
• Among other proposals related to food processing, there are proposals to set up 13 rice mills with an investment of Rs 110 crore. These units are associated with Arva and Usna rice. All these rice mills are to be set up at Sitamarhi, Vidyanagar in Madhubani, Kasipur Belwa in Kishanganj, Karghar in Rohtas, Kherhari in Aurangabad, Banka, West Champaran, Jagdishpur in Bhojpur and Purnia.
• There are also proposals of more than Rs 46 crore to set up textile and leather units in the Investment Promotion Council. Jute yarn, fiber products, sewing, weaving and embroidery units are proposed to be set up at Sultanganj in Kishanganj. Similarly, first clearance has been given for textile and leather units in Bhagalpur, Purnia, Banka and East Champaran.

Other important facts:

• There are proposals to set up units in Muzaffarpur, Mohanpur, Bhagalpur, Patna, Begusarai for manufacturing fly ash bricks. However, an investment of only Rs 7 crore is proposed on this.
• Apart from this, small scale industries of PVC pipes etc. are to be set up in Purnia, Patna and Muzaffarpur districts.
• There are proposals to set up 21 more units worth about Rs 177 crore. General manufacturing, renewable energy, floor mill, paper cups and plates, cold storage, warehouse, machine manufacturing, hospital, oxygen plant and wooden furniture units are to be set up.
• In the 41st meeting of the Investment Promotion Council, 53 proposals worth Rs 765 crore were approved for first clearance, 11 proposals worth Rs 164 crore were given financial clearance and applications for first clearance of 10 units were rejected.