From Adani to Coca-Cola, many companies are investing in Bihar, know how the perception of investors has changed

Bihar was once considered less friendly to industry. However, things have changed now. Today, with its vast resources and progressive policies, the state is attracting big investments from companies ranging from the Adani Group to Coca-Cola. With a CEO-style approach, Bihar’s industry and tourism minister Nitish Mishra is transforming Bihar into a state that can become a gateway for investors to eastern India. Mishra says the prejudice about Bihar’s industrial potential is slowly fading away. Recently, the Adani Group has announced an investment of Rs 8,700 crore in the state. Ambuja Cements is setting up a Rs 1,200 crore unit and Coca-Cola is expanding its bottling capacity.

MoUs worth Rs 50,000 crore were signed last year

Last year, at the state’s investor meet ‘Bihar Business Connect-2023’, memorandums of understanding (MoUs) worth more than Rs 50,000 crore were signed with 300 companies. More investments are expected to come in the second edition to be held this week. Mishra says the industrial potential in Bihar is limitless. Bihar has been a victim of perception. But now it is changing. The state offers financial incentives to investors ranging from interest waivers to Goods and Services Tax (GST) refunds, stamp duty waivers, export subsidies and concessions for transport, power and land charges. Also, it provides single window clearance not only at the time of approval but also in the distribution of incentives. Along with this, the availability of resources, cheap labor and huge market make Bihar a powerful mix for industrial development.

Bihar is making up for lost opportunities

Mishra says the freight equalization policy of 1948 discouraged industrialization in mineral-rich Bihar. The policy mandates uniform pricing for finished products such as steel across India. “Bihar is making up for lost opportunities. With new policies and massive spending on infrastructure – be it roads and highways or power plants and abundance of human resources, I think it is time for us to move ahead,” he said. Bihar has the advantage of a strategic location, as it is easily accessible to the vast markets of eastern and northern India and Nepal, as well as Bangladesh and Bhutan, he said.

Large agricultural and livestock production base

Basically an agrarian economy, the state has a large agricultural and livestock production base that provides an abundant supply of raw material for a range of industries, from agro-based food processing, sectors such as silk and tea to leather and non-metallic minerals. Also, there is no water problem and cheap labour is available. The state has also built warehouses and huge food parks, leather processing centres, integrated manufacturing clusters and multi-modal logistics parks. It is now developing two special economic zones (SEZs). Mishra says Bihar has created a land bank of 3,000 acres for setting up industries. Besides, about 24 lakh sq ft of ready industrial sheds are also being made available in industrial areas across the state, equipped with all infrastructure requirements. These are available for any industry at a fixed rate.