In a major decision, the cabinet sanctioned reduction of the existing lease rate of the Bihar Industrial Area Development Authority (BIADA) land to lure investors and help them establish industrial units. The exemptions on the existing rates have been given in four slabs – 80%, 60%, 40% and 20% — in accordance with the facilities already available on 54 chunks of the BIADA land in the state.
Chunks of the BIADA land having less facilities have high exemption rates, and land with more facilities have low exemption rates. As for the BIADA land in Patna district, the revised lease rate for the land in New Bihta is Rs 144 lakh per acre, in Fatuha it’s Rs 201 lakh per acre, and Rs 1,060 lakh per acre in Patliputra industrial area.
The existing lease rate is as per the minimum value rate (MVR) of the land, which is deemed to be very high, and, therefore, is unable to entice investors who are desirous of establishing their industrial units in the state.
As per the cabinet decision, the new rates – after the exemptions made – would be effective from the date of notification, and the lease rates of the remaining land would be reviewed after five years. Further, the changes made will not be applicable on the land already leased out to the investors.