Bihar mulls ‘private land bank’ to woo investors

The Bihar government Wednesday said it will help set up a “private land bank” to ensure hassle-free availability of plots to industrialists looking to set up units in the state.

“We are studying whether to develop the land bank as a private venture or in public-private partnership mode. The government will soon finalise it,” Principal Secretary (industry department) C.K. Mishra said here.

While the state government will not directly purchase land, it will develop infrastructure around plots sold by willing farmers to investors.

It will also provide incentives for industrial units to be set up there.

According to officials of the industry department, the government is facing problems in acquisition of land for setting up industries.

“The state has high population density and most of the land available is used for farming,” an official explained.

Chief Minister Nitish Kumar had earlier said Bihar will adopted a new model for acquisition of land for industry and other ventures of public good, where it would act merely as a link between investors and landowners.

“The government will not directly acquire land. Instead, the government would work as a link between investors and landowners,” Mishra said.

The government has also been creating its own land bank.