Under the liberalised industrial policy regime, the investors take the decision about locating new industries in a State, including Bihar. Further, under the National Manufacturing Policy (NMP), 2011, creation of National Investment and Manufacturing Zones (NIMZ) as planned integrated Industrial Townships is supported. However, it is the prerogative of the States to adopt the instrumentalities in the NMP.

The Union Government does not have any plans of setting up new industries in Bihar. However, the Department of Industrial Policy and Promotion has provided financial assistance for development and promotion of industrial sector during the last five years in various States through the various Plan schemes. For Bihar, under the Industrial Infrastructure Upgradation Scheme (IIUS), a Handloom Cluster at Bhagalpur in the State of Bihar was sanctioned on 01.10.2010 with a total project cost of Rs. 20.82 crore involving central grant of Rs. 15.69 crore. The project has been released Rs. 1.56 crore as first part of first instalment of central grant on 16.12.2011.

This information was given by the Minister of State for Commerce & Industry Dr. S. Jagathrakshakan in written reply to a question in Rajya Sabha today.

DS/RK

(Release ID :92629)

Financial assistance for industrial development: central grant under IIUS supports handloom cluster establishment, with instalment released. Under the NMP framework States control industrial location while NIMZs are supported; the Union has no plans to set up industries in Bihar but DIPP provided financial assistance under Plan schemes. Specifically, under IIUS a Handloom Cluster at Bhagalpur was sanctioned on 01.10.2010 with a project cost of Rs. 20.82 crore and central grant of Rs. 15.69 crore, and Rs. 1.56 crore was released as the first part of the first instalment on 16.12.2011.