The local textile and apparel sector is being forced to relocate to Bihar, where it has committed to investing more than Rs 150 crore, by high electricity costs, strict regulations, and escalating product costs. This can cause the migration tide to turn around.
The decision was made by the entrepreneurs during a dinner on Friday with Pankaj Dixit, the director of industries for Bihar, at a city hotel. They will now send their teams to that state.
It was confirmed by a senior IAS officer from Bihar, who said: “At Friday’s ‘Invest Bihar’ event in Ludhiana, we received investment bids worth Rs 150 crore, primarily from the textile and apparel sector. This is only the beginning. When business delegations return to Bihar, we expect to quadruple this number.
When asked what made Bihar’s industrial policy so appealing, he responded, “The state has more than 60 large textile and apparel factories, in addition to a plug-and-play model where investors don’t need to buy land but can work out of readymade factory sheds by paying a nominal fee of Rs 4 to 8 per square foot. Our net power tariff is less than Rs 8 per unit, and it includes a Rs 2 subsidy for the textile industry.
Vinod Thapar, head of ATCF (Apparel Technology and Common Facilitation Centre), declared: “The Bihar government’s cornucopia of incentives to new industry is enticing. For half the price of power in Punjab, a fraction of the cost of land, and a capital investment subsidy, it provides us a 150% return on investment. The cost to set up a plant in Bihar will be reduced by 40%. It is become more difficult to meet Punjab’s daily compliance standards.
Through its member units, the ATCF, Knitwear Club, and Federation of Industrial and Commercial Organisations (Fico) have pledged this commitment. Its Friday presentation prompted us to propose more than 50 units, spanning the key verticals of dyeing, textiles, garments, and knitting, Thapar added. “We were in talks with the Bihar government already. Additional incentives included interest subsidies of up to 12%, state GST (goods and services tax) reimbursements of 80–100%, and 100% reimbursements of energy duty and stamp duty. The cost of manpower, however, will be the biggest advantage.
