On Tuesday, the Bihar cabinet approved the government's proposal to release Rs 29.95 crore to the agriculture department for the payment of diesel subsidies to farmers for the cost of irrigating their land with diesel pumps during the Kharif cropping season.
S Siddharth, additional chief secretary of the cabinet secretariat department said that the decision to make diesel subsidy payments to farmers was made in light of the state's irregular monsoon, rain scarcity, and subsequent drought-like situation.
Another significant decision was the reduction of the existing lease rate of the Bihar Industrial Area Development Authority (BIADA) land to entice investors and assist them in establishing industrial units.
Exemptions from existing rates have been granted in four slabs: 80%, 60%, 40%, and 20%, in accordance with the facilities already available on 54 parcels of BIADA land in the state.
BIADA land with fewer facilities has higher exemption rates, while land with more facilities has lower exemption rates. The revised lease rate for BIADA land in Patna district is Rs 144 lakh per acre in New Bihta, Rs 201 lakh per acre in Fatuha, and Rs 1,060 lakh per acre in Patliputra industrial area.
The current lease rate is based on the land's minimum value rate (MVR), which is deemed to be very high and thus is unable to entice investors interested in establishing industrial units in the state.
According to the cabinet decision, the new rates would be effective from the date of notification, and the lease rates for the remaining land would be reviewed after five years. Furthermore, the changes will not apply to the land that has already been leased to the investors.
In addition, the cabinet approved Rs 469.73 crores for the Centre-sponsored PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme. The state government contributes 40% of the funds under the scheme, with the rest shared by the Centre.
