Bihar

• 09 Jun 2022

Bihar Textile and Leather Policy, 2022 Launched

Why in News?

• On June 8, 2022, Bihar Chief Minister Nitish Kumar launched the Investors Meet-cum-Bihar Textile and Leather Policy, 2022 at The Convention Building in Patna.

Key Points

• Addressing the conference, he said that the new policy will greatly benefit investors setting up industries in Bihar. The state will soon become a major textile hub of the country.
• The textile and leather policy provides for a wide range of incentives including capital grant, employment grant, power grant, freight grant, patent grant, skill development grant. There are provisions like interest subvention on loan, reimbursement of SGST, waiver of stamp duty, registration, exemption on land conversion.
• The Chief Minister said that the main objective of the policy is to develop Bihar as a major potential investment hub for domestic and global investors in the region and to provide a variety of incentives to entrepreneurs starting textile and leather businesses.
• Under the new policy, 15 percent of the cost of capital investment for plant and machinery will be given, subject to a maximum of Rs.10 crore. Apart from this, the grant of electricity charges will be two rupees per unit.
• The employees working in the industry will be given a grant for a period of five years at the rate of Rs 5,000 per month. 30% transport subsidy will be given to the respective units for export.
• Under the new policy, a grant of Rs.10 lakh per annum will be given on freight movement for five years. A grant of 50 per cent of the registration expenses will be given on patenting your product, subject to a maximum of Rs 10 lakh.