SuMo flays govt for doing away with subsidies

 Patna: The opposition BJP on Tuesday alleged that Bihar was in an era of “deindustrialization” where “the government didn’t care for investment in the state, as was evident in its latest Bihar Industrial Investment Promotion Policy 2016 which withdrew a number of subsidies offered earlier”.

“About a dozen odd subsidies that were offered in the 2011 policy have been withdrawn. The only major incentive being offered now is interest subvention. If a person does not get the capital, what help s/he will get from the interest subsidy,” former deputy CM Sushil Kumar Modi said after his weekly janata darbar on Tuesday.

Modi said every sector had a different policy, but now all have come under one umbrella. “Textile, IT or hospital … every sector has different requirements and accordingly their policies had been designed. However, now that all have been merged under one head, these sectors may face operational problems,” he said.

The former aide of CM Nitish Kumar took on his Monday’s statement when he had said that multiple business organizations were opening their chapters in the state, but the Bihar government only recognized Bihar Chamber of Commerce and Industries (BCCI) and Bihar Industries Association (BIA). “Nitish doesn’t like national level organizations such as CII or ICC because they praise PM Narendra Modi. The CM gets angry because they openly fault his policies at the Udyami Panchayat,” he said.

Modi said the state government has withdrawn over 90% subsidies offered in the last policy because it faced revenue crisis after enforcement of total prohibition in Bihar. “The government has made up its mind that it does not want industrialization in Bihar. Otherwise, instead of cutting down on the subsidies, they would have increased it. Couple it with the deteriorating law and order and anyone can guess why no industries are willing to come here,” he said.

He cited the example of rice mills, saying most of them were on the verge of closure due to state government’s policies. “Of the Rs8,000 crore investment that came to Bihar in the last 10-12 years, Rs6,500 crore was from agri-based industries. Earlier, they used to get over 40% subsidy, but now its only interest subvention. Why will anyone come here?” he asked.