Bihar minister Syed Shahnawaz Hussain on Wednesday said the state government's decision to reduce land lease rates of industrial areas from 80 percent to 20 percent was "historic" as it would further accelerate the pace of industrialization in the state.
Of the 54 industrial areas, lease rates have been slashed to 20 percent in 15, he said.
There are 12 such zones where land lease prices have been brought down by 60 percent, the state industries minister said.
"The decision to reduce the land lease rates of industrial areas from 80 percent to 20 percent was taken by the state cabinet, chaired by Bihar Chief Minister Nitish Kumar, on Tuesday," Hussain said in a statement.
He claimed that setting up facilities in the 54 industrial zones of the Bihar Industrial Area Development Authority has now become easier.
"It is a historic decision. There is a proper environment for setting up industries in Bihar and investors from all over the country are coming forward to set up their businesses in the state," he said.
The minister pointed out that the land lease rates in many industrial areas of BIADA have been rationalized.
He also asserted that Bihar does not have any shortage of industrial land.
"After the transfer of 2,900 acres of land of closed sugar mills by the government to BIADA, the state has a huge land bank for setting up industries. After yesterday's decision, the price of industrial land now has become very low," the minister added.
(Inputs from PTI)