Bihar set to become food processing hub.

After getting an in-principle nod from the Union Agriculture Ministry to produce ethanol from sugarcane, the Bihar Government is now keen to present the State as a food processing hub. Officials believe it would create for the State an industry-friendly image and attract investments. The NDA Government led by Nitish Kumar has been trying through a series of measures such as one-on-one meetings with industry leaders and conferences, to attract investors. In a bid to dispel the ‘industry-hostile’ notion, the Chief Minister dispatched his officials across the country to persuade national and international investors to set up food processing units in the State rich in fruits and cereals. Recently a group of officials led by Principal Secretary (Industry) AK Sinha came to the national capital to partner an international summit cum exhibition on food processing and agribusiness to showcase Bihari food products on dining tables of private houses and restaurants. While the details of the achievement garnered through the effort is not quantified by the State officials, the interest to tap the potential and opportunities for investors in food processing is stressed in the State that is going to Assembly election next year on the slogan of its development activities in post-Lalu Bihar. While talking to mediapersons Sinha claimed that the industry department had so far undertaken five road-shows in Patna, Muzaffarpur, Bhagalpur, Begusarai and Calcutta, for highlighting the Government’s strength in the food processing, to different investors. As the National Commission of Farmers had in its reports mentioned the then State as the “sleeping giant” of Indian agriculture, the Government hoped that it could make a mark if the Union Government helped the State through its public investment in power sector to begin with. To improve industrialisation, the State Government has decided to provide capital grant up to 40 per cent of the project cost, subject to a maximum Rs 10 crore in case of common cluster infrastructure and up to 35 per cent of the project cost subject to a maximum Rs five crore in case of an individual investor. Eligible components to be funded under the scheme are land & factory building, plant and machinery, R & D quality control centre, warehousing facilities, training centre, trade and display centre, water supply, electric supply including captive power plant, effluent treatment, telecommunication lines etc. Under the second scheme for food parks, it provides for a capital grant up to 20 per cent of the project cost subject to a maximum Rs 15 crore.