The wood based industry has been given priority in the policy frame work for the Industrial promotion in the state of Bihar. Talking to media the Deputy CM of the state, Mr Sushil Kumar Modi said that agro-forestry is being promoted since 2012-13 in Bihar and by the end of FY 2018- 19 nearly 9 crore trees have been planted wherein there are over 5 crore Poplar trees.
He added that these trees are now ready to be cut after reaching their maturity age of 7 to 8 years. The crop will help numerous wood based industries in the state such as plywood, veneer, saw mill, pulp, paper, match box, etc. The state has tremendous potential for the growth of furniture, building material, plywood, veneer, and sports goods etc as these industries majorly use raw material from agro forestry and plantation timber.\
The Wood based industries, with inclusion into the new industrial policy framework in the state, will receive numerous benefits inculding interest rates on the loans taken from banks, reimbursement of registration fee for the land purchased for industry establishments, electricity and others. The establishments with a minimum investment of Rs 25 lakh and employing over 25 workers will be able to get the benefits.
In Feb 2020, while putting the State’s Economic Survey 2019-20 report during the Budget session in Bihar, Mr Sushil Modi had said that the annual growth rate of the operational agro-based factories in Bihar was 16.4 % over the last 10 years, compared to only 3.3 % at the all India level.
Notably, nearly six months ago, during a meeting of Udyami Panchayat on plywood, veneer and furniture industry organised in Patna, Mr Nitish Kumar, Hon.Chief Minister, Bihar had also asked the officials to take necessary action and prepare specific policy to promote wood based industry in the state in accordance with the stakeholders (over 50 industrialists were present during the meet) in this industry. Mr Sanjay Goenka, President Bihar Industries Association who was present during the meeting, had suggested to promote agro-forestry and large-scale production of soft woods like ‘Popular’ and ‘Semal’ trees, to which the CM was agreed and had assured to bring it in purview of agriculture department instead of forest department.
The CM had also directed the officials to prepare a road map for plywood, veneer and furniture industries. The officials have also asked to suggest necessary changes in existing industrial investment promotion policy 2016 for the better output that can increase interest of industrialist in this regard.