Patna,(BiharTimes): In a move to root out non-serious or overly delayed investment proposals the state government’s cabinet sub-committee on industrial growth on Friday cancelled investment proposals worth more than Rs 2.25 lakh crore. Thus the total proposed investment in the state now would be reduced to less that Rs 60,000 crores.

Incidentally, all of these proposals––33 in total––were to set up coal based thermal power plant in the state.

According to Industrial Development Commissioner Naveen Verma, the state government has been trying its best for the industrialisation of Bihar.

He said the state government had set up a State Investment Promotion Board (SIPB), to ensure quick approvals of the investment proposals.

However, between 2007 and 2012, many non-serious investment proposals had also been approved, which exaggerated the amount of total investment. Therefore, the state government has decided to delist these 33 coal based power-projects.

These non-serious proposals have been riddled with problems ranging from land crunch to non-allocation of coal-linkage. This would de-congest the investment landscape as it would bring down the proposed investment in the state by Rs 2.25 lakh crore.

Till date the SIPB has approved investment proposals worth Rs 2.84 lakh crores. Thus the total proposed investment in the state now would be reduced to less that Rs 60,000 crores.

Verma said it is a major step, which will present a truer picture about the investment climate of the state.
However, projects worth only Rs 7,500 crores actually came on the ground in last eight years. So in all 272 units have come in production, while work is in progress on other 176 units. These projects created employment opportunity for thousands of people.

Besides, the state government is also planning to delist investment proposals received to set-up solar based power projects in Bihar. A total of 50 proposals for solar power plants have been received by the SIPB in recent years. However, not a single unit has come in production.

Thus the state government has decided to review the viability of these projects on a case-by-case basis.

According to Business Standard report a total of almost Rs. 18,000 crore is proposed in this area, but due to land problem and lack of clear policy, no proposal have moved out of the files in last seven years.

It also said that the state government has also decided to set-up an industrial city on the sidelines of the Amritsar-Kolkata Freight Corridor. The state government has ordered its officials to identify and acquire more than 2,500 acres of land for this proposed city, which will most likely to be set-up between Gaya and Aurangabad districts.