Kanpur: Armed with abundant resources and robust infrastructure, Bihar touted its investor-friendly policy that offers incentives ranging from capital subsidy to interest subvention on loans as it wooed investments in burgeoning leather industry in Uttar Pradesh.
Bihar Leather Investors’ Meet was hosted in Kanpur on November 18 together with industry leaders and policymakers to showcase Bihar’s emerging role as a global leather industry hub.
The event, under Bihar Business Connect 2024, showcased the state’s abundant resources, advanced infrastructure, and progressive policies aimed at fostering sustainable growth and innovation in the sector, officials and a press statement said.
At the meet, the state unveiled a comprehensive policy framework and modern infrastructure.
Key incentives of Bihar’s Textile and Leather Policy include capital subsidies, state-GST reimbursements, interest subventions, employment generation and power tariff subsidies. Export-oriented units receive additional support under the state’s Export Promotion Policy.
Presenting the state’s vision, Alok Ranjan Ghosh, director of industries, said textiles and leather are high-priority sectors for Bihar due to their immense potential for employment generation. “This initiative will create job opportunities for locals, including those currently working remotely or in other locations.”
The state conducted a study in Kanpur to replicate its success, while leveraging incentives, such as a 30% capital subsidy, he said. “Additionally, we will ensure the availability of a large pool of semi-skilled and skilled workers, access to a vast market, excellent connectivity and 24×7 water and power supply.”
A key highlight was discussion on recent exposure visit to prominent leather and footwear manufacturers in Kanpur.
“This investor meeting has already resulted in four investment intents, reflecting confidence in Bihar’s policies and our commitment to building a robust industrial ecosystem,” Ghosh said.
Arshad Iraqi, regional chairman (central) of the Council for Leather Exports, commended the initiative, saying, “Bihar offers land, connectivity and robust infrastructure needed for expansion in the northern region. With environmentally compliant tanneries, Bihar could emerge as a prime alternative to Kanpur and Unnao.”
“We aim to increase exports from USD 20 million to USD 50 million by 2027, and expanding operations in Bihar is key to achieving this,” he said.
Bihar’s policy is complemented by modern infrastructure, including plug-and-play sheds spanning 24 lakh square feet at affordable rates of Rs 4-6 per sq ft per month, a 1,600-acre land bank with allotments processed within seven days, a Leather Product Park in Muzaffarpur, strategically located near major transport nodes.
To streamline business operations, the state provides all necessary NOCs and clearances through an online single-window system, ensuring ease of doing business. The government also promotes convergence with schemes such as the start-up and purchase preference policy, creating an enabling ecosystem for established players and new entrants.
Gaurav Kumar from a shoe companay said they’ve successfully established a footwear manufacturing unit in Bihar. “The ease of accessing online incentives has been instrumental in our growth. Our facility in Hajipur caters to both domestic markets and exports to Russia, including manufacturing for the Russian army and fashion industry.” PTI