With the initiative to boost the wood-based industry in Bihar the policy resolution has been broadcast eight months before but the final execution and its implementation is still under process to finalise. The Department of Environment, Forest & Climate Change, Govt. of Bihar resolution dated 26 August, 2020 for Bihar Wood Based Investment Promotion Policy, 2020 states to provide incentive to the farmers to grow more trees on their farmland, it is important that they get a better price of their tree croptimber. This can be achieved by creating the demand side pull, which is possible by promoting the efficient and integrated wood based industry. According to this policy framework Bihar has a total of 2272 Licensed Saw Mills, 279 Veneer Mills, 142 Plywood Industries and several furniture making units in the 38 districts, which is mostly in the unorganized sector.
“The new scheme is giving various supports to the industry, as in terms of subsidy the old wood based industrial unit would get subsidy of 35% of project cost or 70 lakh whichever is higher and for the new units it would be 35% or 175 lakh whichever is higher,” said Mr Ranjan Agarwal, President, Bihar Plywood Manufacturers Association. “We were hopeful that it would prove to be a synergy to the industry in Bihar and the proposed policy would be finalised soon. Following the vibes after proposal came into the picture in the month of August 2020 we moved forward in this direction and started to work for the expansion and up-gradation of the units with the hope to have support from the government, but the policy is not yet finalised even after nine months,” he added.
This policy will help to bring in investment and a positive business ecosystem to improve the existing saw mills, veneer and plywood units as well as furniture units. The support shall be in Expansion / diversification / modernization / technology-up-gradation / adding furniture making unit, value addition in existing Industry / Unit and hence improving synergy to the industry. The government has given priority to wood-based industries in the state by including it into new industrial policy framework.
One and half years before Chief Minister had directed the officials to prepare a road map for plywood, veneer and furniture industries. The officials had asked for the suggestion for the necessary changes in existing industrial investment promotion policy 2016 for better output that can increase interest of industrialist. A speedy move on such topics certainly need attention of policy makers.