Bihar announces new sugar policy

PATNA : In a step forward to woo prospective entrepreneurs, the Bihar government has approved a new sugar industry promotion policy offering huge tax concessions and benefits to the investors.

The benefits would be given to entrepreneurs showing interest in setting up new sugar mills, co-generation power plants and distillery units, besides helping revival of the defunct sugar units.

Under the new policy, investors showing interest in establishing new sugar factories would get tax exemption on purchase of sugarcane for five years from the date of the new venture starting commercial production.

The state government would also give subsidy of ten per cent or Rs two crore, whichever is less, on the total investment for purchase of equipment, total reimbursement of excise duty on production of sugar for five years, besides tax exemption on stamp duty and registration on purchase of land for setting up the plant, official sources said.

For setting up distilleries, investors would get exemption on administrative charge on molasses as well as reimbursement of value-added tax on molasses for five years from the date of their new units commencing commercial production of liquor.

Registration and stamp duty on land purchased for the new distilleries would also be exempted, they said.