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BIADA introduces exit policy for closed and sick units

Source : BUSINESS_STANDARD
Last Updated: Wed, May 08, 2013 03:20 hrs

The state government has introduced an exit policy for closed or sick units in various industrial parks in the state. Under this new scheme, these units can return their land and get their money back.

Under this new scheme, the interested allottees have to apply till October 31 for this. After receiving the applications, the Bihar Industrial Area Development Authority (BIADA) will verify the papers regarding the land. If everything found in order, the Authority will refund the money to allottees after deducting proportional amount for the time the land was occupied and 10 percent administrative fee. A senior official at BIADA told, "The policy is still in trial phase, therefore we have introduced it only for those who have been allotted land after 2005. However, if the response is good, then we can extend the time line and last date."



The state government officials states that all kinds of entrepreneurs will be benefited by this scheme. "This scheme covers closed units. It also covers those units, where construction begun, but the project was later shelved. Then there are units, which were allotted land but they did nothing after that. All these units can avail our new scheme and get their money back," said a senior official. The state government also hopes that this policy would reduce the problems of investors face land trouble in the state.

The state government has received investment proposals worth more than Rs. 3 lakh crores. However, the scarcity of industrial land proves to be bottleneck for the administration. "This is why, we introduced this exit policy," said BIADA MD Deepak Kumar, "Earlier, there were no provision in BIADA's regulation under which an entrepreneur could surrender his land and get back the money. However with the new scheme, we want to give them an option."

He stated, "It was ironic that on one hand the new investors are facing land problems. At the same time we have several acres of vacant land, which are being blocked for any productive use. We want to change this situation and ensure the optimal use of our resources.

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