Bihar Wood Based Industries Investment Promotion

Environment, Forest & Climate Change Department, Govt.of Bihar

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Introduction

The Bihar wood based industries promotion policy, 2020 was notified vide ResolutionNo-2/Van vividh-16/2018 2335 dated 26/08/2020. To implement the policy the guideline has been prepared to attract investment into the sector. Bihar has a total of 2272 Licensed Saw Mills, 279 Veneer Mills, 142 Plywood Industries and several furniture making units in the 38 districts. The technology penetration in the wood base industry is not up to the standards and use of inefficient plant and machinery results in low quality of value-added product and more wastage of raw material. This Guideline will help to bring in investment and a positive business ecosystem to improve the existing saw mills, veneer and plywood units as well as furniture units. The Guideline support Expansion / diversification / modernization/technology upgradation / adding furniture making unit, value addition in existing Industry/ Unit and, hence improving synergy. In addition, the guidelines support the existing small Furniture and other modern artifacts making units in the unorganized sector and artisans. This sector has immense scope for the Job creation for the skilled and semi-skilled labor.

New investors/Entrepreneurs/Existing Wood Based units/Artisans/Local Furniture making units/ Bamboo products making units shall be eligible for financial assistance under this guideline. The investors may apply as proprietorship, partnership, LLP, trust or societies registered under the relevant act, company etc.
  • Investors for Category A and B
    • The applicant should have a sound financial background. The net worth of the applicant(s) should not be less than the subsidy amount sought.
    • The land for the project, if any shall be arranged by the applicant either by purchase or on lease of at least 30 years and it should be registered in the name of the proposing unit.
    • Any investor / applicant who has availed financial assistance for a project under this policy of the Government of Bihar, shall not be eligible to apply for another project under the same policy until one month after operationalization of the earlier project.

    • The proposals will be considered eligible subject to fulfillment of conditions prescribed in the guidelines. The proposals will be selected:

      a. Firstly, by merit. This would be based on different factors, inter alia, innovation, employment generation, amount of investment, uniqueness of project in Bihar, use of local resources etc.,

      b. Second, date of complete application

      subject to the availability of budget till the time the number of projects as per the annual targets gets exhausted.

  • Artisans For Category C and D
    • The skilled, semi-skilled artisans Support to Small Furniture and other wood based artifact making units employing not less than 10 labour of local furniture making units and
    • Artisans who are domicile of Bihar involved in wood based works.

The applications shall be submitted online and it will be a continuous process.

Applications and information about subsidy under different categories can be obtained from the website i.e. https://forestonline.bihar.gov.in/BWBIIP/Home.aspx

  • The duly filledapplication and detailed project proposal shall be submitted online and queries if any shall also be raised online and will be intimated to the applicant through e-mail/ sms also (if given).
  • In case of Category A projects, where the applicant is eligible for and willing to avail incentives under Bihar Industrial Investment Promotion Policy, 2016, then such applicant will have to first avail Stage-1 clearance from the State Investment Promotion Board and then apply on online portal of Department of Environment, Forest and Climate Change (DEFCC) with Stage-1 clearance letter issued by the SIPB Secretariat. Those applicants who are not willing to avail incentives under Bihar Industrial Investment Promotion Policy, 2016 may directly apply on online portal of DEFCC.
  • Under Bihar Industrial Investment Promotion Policy, 2016, only those expansion/ modernization units are eligible for subsidy where the installed capacity is increasing at least by 25% of the existing installed capacity prior to such expansion/ modernization. Similarly, in case of diversification, only those units are eligible where the project cost of the diversified unit is at least 25% of the Project cost of existing Unit. Further, in terms of Clause 2(4)(g) of Bihar Industrial Investment Promotion Policy, 2016, only those Units are eligible for incentives under the Policy where the investment is Rs. 25 lacs or more OR provides employment to 25 workers/ persons.
  • In case of Category B projects, the applicant will have to first avail Stage-1 clearance from the State Investment Promotion Board and then apply on online portal of DEFCC with Stage-1 clearance letter issued by the SIPB Secretariat.
  • In terms of Clause 2(4)(g) of Bihar Industrial Investment Promotion Policy, 2016, only those Units are eligible for incentives under the Policy where the investment is Rs. 25 lacs or more OR provides employment to 25 workers/ persons.
  • For the purpose of project cost evaluation by SIPB, cost of plants and machinery, cost of civil construction, cost of land value and working capital offered under this guideline shall be taken into consideration.
  • Time Line for Processing at DEFCC
    • Stage I (Technical Scrutiny by TSG)
      • a. In case of any deficiency in the application, demand of documents/ additional information shall be raised within 7 working days.
      • b. After receipt of complete application, the scrutiny by TSG shall be done within 15 working days and shall be forwarded online to the DFO.
      • c. DFO shall submit comments/ feedback/ recommendation online within 10 working days.
      • d. The proposal shall be forwarded online for consideration of PMC within 7 working days of receipt of report.
    • Stage II (In principle approval by PMC)
      • Within 30 days after receipt of proposal on completion of Stage I.
    • Stage III (Verification by TSG/DFO)
      • a. Desk scrutiny by TSG within 7 working days after receipt of request for release of first or second tranche of subsidy.
      • b. Field verification and submission of report by DFO within 10 working days after receipt of forwarded request from TSG.
    • Stage IV (Disbursal of Financial Assistance)
      • a. Within 7 working days of completion of Stage III and forwarding of request to the Nodal Officer, subject to availability of Budget, in case there is no change in the approved project/ quantum of subsidy.
      • b. In case of requirement of revised consideration by PMC, after completion of Stage III, PMC shall consider and take appropriate decision within 30 days and release of fund as per the decision of PMC shall be done by the Nodal Officer within 7 working days of communication of decision of PMC subject to availability of fund.
  • Time Line For Investor
    • For Category A and B, the timeline for installation of machines / equipment/ Civil work etc and making the unit operational is 18 months from date of communication of in principle approval (Stage II), extendable up to maximum 6 months in case of reasons beyond investors' control. This extension of period upto 6 months shall be permitted by PMC after scrutiny of investor's request by TSG/ DFO. The machine and equipment/ other structures shall be available for inspection up to 5 years from the date of release of 2nd Installment of subsidy. Inspection can be done by the Nodal Officer or any forest officer not below the rank of ACF. However, detailed instructions regarding periodicity and scope of inspections shall be issued by the PMC
No application fees shall be collected from the applicant by the Department.

Name of Nodel officer: xxxxxxxxxxxxxxxx

Tel No - xxxxxxxx

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