Wednesday, January 10, 2007
MAHINDRA, SONALIKA & MAX HEALTHCARE LINE UP SIZEABLE INVESTMENTS IN STATE
INVESTMENTs are making their way into Bihar after a long hiatus. While the Mahindra & Mahindra group is planning to set up a food processing plant in the state, Sonalika Tractors is all set to invest Rs 130 crore in a tractor plant.
That’s not all. According to state officials, Max Healthcare chairman Analjit Singh is in talks with them to set up a multispecialty hospital.
“We have approved allotment of land to Sonalika Tractors. Other two proposals being processed,” a senior Bihar government official told ET. M&M is planning to set up an agroprocessing plant for litchi in Bihar. The state boasts of 71% of India’s total litchi produce.
For enabling private sector investment in the state, the Bihar government has already created a land bank.
“The companies interested in investing in the state, may approach the land bank and according to their need, they may select any plot,” said the official. The state has also set up a revolving fund of Rs 200 crore for encouraging investments in the state. The government has already lined up 1,000 acres at Bihtaand and Hazipur and 200 acres in Begusarai.
The state government has also introduced new Industrial Incentive Policy to woo companies. “The policy provides for 80% VAT exemption for 10 years. It also provides for exempting start ups from luxury tax for at least seven years,” the official said.
It is understood that the state government is keen on Max’s proposal. “Good health care facilities are the need of hour for the state,” he said. According to recent All Indian Institute of Medical Sciences (AIIMS) estimates, about 70% of the population in Bihar often visit the hospital for treatment.