Adani may invest over Rs 5,000 cr in logistics and agro in Bihar

According to Sandeep Poundrik, “Bihar has over 13 crore people and if we add the population of neighboring Nepal, Jharkhand, eastern UP and West Bengal, it comes to around 40 crore, which is almost one third of the total market area of India. No other state has the kind of young workers profile, availability of surplus water and raw materials that we have.”

The Adani Group is contemplating to invest over Rs. 5,000 crore in the logistics sector and agro-industry business in Bihar. This came up for a wide discussion when a high-level delegation from the Adani group, led by Pranav Adani, director of Adani Enterprises, met Chief Minister Nitish Kumar and others.

Britannia has already set up a Rs. 250 crore factory in Bihta.

Talking to Bizz Buzz, Sandeep Poundrik, the additional chief secretary of the Department of Industries said, “Britannia has set up a Rs. 250 crore factory in Bihta whereas the Adani Group has started the process and is awaiting an improved infrastructure and huge market scope.”

That explains its interest in investing in the logistics sector and agro-industry business.

Once big business houses start setting up industries in the state others will follow, he said, adding

“Bihar has very good network of road, railways, water supply and other infrastructure, yet the state has the problem of perception in convincing big business houses and global firms to come and invest here.”

The government has been trying to change the perception of industrialists and succeeding gradually.

Talking about ‘Bihar Business Connect-2023, a Global Investors’ Summit’ to be held in Patna on December 13-14, Poundrik said the department will showcase Bihar as an attractive and next investment destination with industrial infrastructure, manpower and government support second to none in the country.

According to Poundrik, “Bihar has over 13 crore people and if we add the population of neighboring Nepal, Jharkhand, eastern UP and West Bengal, it comes to around 40 crore, which is almost one third of the total market area of India.”

He added, “No other state has the kind of young workers profile, availability of surplus water and raw materials that we have. Bihar, Uttar Pradesh and Odisha have a huge potential and they are going to be the next hub of the manufacturing sector, as the southern states are already facing a 15 of 20 per cent next generation labour shortage.”

The department of industries has invited more than 400 companies from outside and 200 from the state. Poundrik candidly said IT is the challenge area for Bihar.

“We are developing a Mega Food Park at Motipur in Muzaffarpur and the Centre has also approved a leather park there. We are developing common facilities for the industries by providing interest subvention and state GST reimbursement as part of the industrial policy 2016 incentives besides 15 per cent additional capital subsidy, employment subsidy up to Rs. 5,000 per employee and power subsidy of Rs. two per unit for textile and leather sector, which is our priority area,” he said.

Admitting that the logistics network is lacking in Bihar, Poundrik said the government will develop a multi-model logistic park at Fatuha in Patna district.

Explaining the ground reality of investments and industriesr, Poundrik said the government has invested over Rs. 1,300 crore in the last one year on developing 75 industrial areas in the state.

“We have a unique offer of ‘Plug and Play’ in industrial sheds developed in 24 lakh square feet area for high priority textile, food processing and leather industries. Plug and Play facilities are available at 13 locations in nine districts, including Patna, Vaishali and Muzaffarpur. The government has provided 1,200 machines, including 400 to women entrepreneurs, in textile clusters developed in Muzaffarpur in the last one year. We have seven ethanol plants and seven other are being constructed. No other state has so many ethanol plants. An international firm in the food processing business will set up its unit in Hajipur,” he added.

The state’s Industry Minister Samir Kumar Mahaseth that Bihar has a rich cultural heritage and agricultural prowess.

“We are working to foster a robust industrial ecosystem that aligns with its economic and developmental aspirations. The State has adopted best practices to provide a convenient environment to facilitate investments. We have lucrative incentive scheme like Bihar Industrial Investment Promotion Policy-2016 which has been amended time to time as per the industry's need,” he said.

The Minister added, “We also provide additional incentives through sectoral policies such as Bihar Logistics Policy, 2023, Biofuels Production Promotion Policy, 2023, Textile and Leather Policy, 2022, and Agri Investment Promotion Policy, 2020.” Meanwhile, to promote innovation and unlock the enormous entrepreneurial potential of the state, the government has approved Bihar Start-up Policy which has fast-tracked development, infrastructure and industrial growth.