On July 19, 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 using diesel pumps to irrigate their land during the Kharif cropping season.
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, according to S Siddharth, additional chief secretary of the cabinet secretariat department.
Reduction in lease rate of land
Another significant decision was to reduce the existing lease rate of Bihar Industrial Area Development Authority (BIADA) land in order to attract 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 throughout the state.
Higher exemption rates apply to BIADA land with fewer facilities, while lower exemption rates apply to land with more facilities.
In Patna district, the revised lease rate for BIADA land 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.
Leased rate of land based on its MVR
The current lease rate is based on the minimum value rate (MVR) of the land, which is deemed to be very high and thus unable to entice investors interested in establishing industrial units in the state.
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, according to the cabinet decision. Furthermore, the modifications will not apply to land that has already been leased to investors.
In addition, the cabinet approved Rs 469.73 crores for the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, which is sponsored by the Centre. The state government contributes 40%
of the scheme’s funds, with the rest shared by the Centre.
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