The state government of Bihar endeavours for rapid expansion of industries by promoting knowledge based economy as well as digitally connecting both urban and rural areas. The government also plans to make the state as a preferred IT destination by creating one of a kind IT infrastructure and online information delivery system for citizens. These are some of the factors to intrigue the government to launch its Information and Communication Technology Policy in 2011.
Duration of the policy: 2011-2016
- To create talented Human and Intellectual Capital Resource
- To generate employment for local youth
- To create a world class IT infrastructure in the state
- To promote e-Governance initiatives to digitalize Government departments.
- To promote investment in the IT/ITES/EHM Units by Private industry.
Fiscal incentives: Tax related exemption-
- Stamp Duty Exemption- The units established in the industrial park or outside the area of authority are getting 100% stamp duty and registration fee exemption on. However, this facility is granted only once.
- Entry Tax-All new units are granted 80% reimbursement of the Entry Tax they have paid.
- Central Sales Tax- Registered MSME of IT/ITES/ EHM units only need to pay 1% CST on the items they have produced.
- VAT/Luxury Tax reimbursement-
|Units||Reimbursement percentage||Period of time|
|New Units||80%||10 years|
|Existing Units||25%||5 years|
- Other exemptions-
|Luxury Tax||100%||7 years|
|Electricity Tax||100%||7 years|
|Land Conversion Fee||100%||–|
Incentive-for preparation of project report-
- The aforementioned units are getting 50% reimbursement of the project report cost, amounting to a maximum of Rs. 2 lacs.
- Units who have obtained carbon credit, project reports for those have been granted 50% reimbursement with maximum amount of Rs. 15 lacs.
Financial assistance on the fees paid for “Technical Know-how”- Entrepreneurs, who have obtained “Technical Know-How” from any recognized National research centre / laboratory/institution to establish its unit or business, are getting financial assistance of 30% (an amount of Rs. 15 lacs) of the fees they have paid.
Incentives on quality certification- The state reimburses 75% of the expenses a unit has obtained to get certifications like-
|IT||ISO/SEI CMM level 2 and above/STQC etc.|
|ITES||COPC (Customer Operation Performance Centre) and eSCM (e-Sourcing Capability Model) certification etc.|
|EHM||ISI/ISO/BS/STQC or Quality approvals granted by international agencies like BVQL, DNV, LRQA, TUV etc.|
Incentive on Land –All units are eligible for incentives or grants on the value of land/park that are allotted to them by Bihar Industrial Area Development Authority/Export Promotion Industrial Park/Food Park/Agri- Export Zone / IT Park/Industries or Govt. as follows-
|Small/Tiny Units (within prescribed financial limits)||50% or Rs. 15 Lacs (Max.)|
|All Large, medium and mega units (within prescribed financial limits)||25% or Rs. 30 Lacs (Max.)|
Incentives on Plant & Machinery for captive power generation-
- A unit is eligible for 50% incentive on the cost of plant and machinery for setting up a captive power generation/diesel generating set. Existing units can also get this benefit as well.
- An incentive of 60% is also provided on purchase of plant and machinery to set up unit for production of energy from Non conventional sources (with no maximum limit)
Capital investment incentive- All new units are getting a reimbursement of 20% on the capital investment made on Hardware & IT equipment, Software, Network equipments etc, amounting to a maximum of Rs.75 Lacs. However, this is provided after the commencement of business operation.
Special incentives for innovative unit-A special package of incentives are offered for innovative units/projects which are creating employment for 100 people in EHM units, 500 people in IT units and 1000 people in ITES units or attracting an investment of Rs. 50 crore and above. Limit of capital subsidy is 20% amounting between Rs. 50 lacs and Rs. 3 crores.