In a strategic move to bolster its manufacturing sector, Bihar has rolled out a comprehensive package of incentives to attract investors from the leather industry, particularly those operating in Uttar Pradesh. This initiative, part of the Bihar Business Connect 2024, aims to position the state as a global hub for leather production and exports.
The Bihar Leather Investors’ Meet, held in Kanpur on November 18, brought together industry leaders, policymakers, and government officials to showcase the state’s competitive advantages. Key incentives offered by Bihar’s Textile and Leather Policy include:
- Capital subsidies: To offset initial investment costs.
- State GST reimbursements: To reduce operational expenses.
- Interest subventions: To lower borrowing costs.
- Employment generation subsidies: To encourage job creation.
- Power tariff subsidies: To reduce energy costs.
- Additional support for export-oriented units: Under the state’s Export Promotion Policy.
Alok Ranjan Ghosh, Director of Industries in Bihar, emphasised the high priority accorded to the textiles and leather sectors due to their immense potential for employment generation. He highlighted the state’s focus on creating job opportunities for local residents, including those currently working remotely or in other states.
To replicate the success of Kanpur’s leather industry, Bihar has conducted a detailed study and is offering a 30% capital subsidy to investors. Additionally, the state is committed to providing a skilled workforce, excellent connectivity, 24×7 water and power supply, and access to a vast domestic and international market.
The investor meet yielded positive results, with four investment intents already secured. Arshad Iraqi, Regional Chairman (Central) of the Council for Leather Exports, commended Bihar’s favourable business environment, including land availability, connectivity, and robust infrastructure. He expressed optimism about Bihar’s potential to emerge as a prime alternative to Kanpur and Unnao, particularly with its focus on environmentally compliant tanneries.
Bihar’s strategic approach to attracting investment includes modern infrastructure, such as plug-and-play sheds, a large land bank, and a dedicated Leather Product Park in Muzaffarpur. To further streamline business operations, the state has implemented an online single-window system to obtain necessary approvals and clearances.
The government’s commitment to fostering a conducive business environment is evident through its convergence with other schemes like the startup and purchase preference policy. This holistic approach aims to create an ecosystem that supports both established players and new entrants in the leather industry.
Gaurav Kumar, representing a footwear company, shared his positive experience of setting up a manufacturing unit in Bihar. He highlighted the ease of accessing online incentives and the strategic location of the Hajipur facility, which caters to both domestic and international markets, including Russia.
By leveraging its abundant resources, progressive policies, and modern infrastructure, Bihar is well-positioned to attract significant investments and become a major player in the global leather industry.
