The state government earlier this month slashed value-added tax (VAT) on air turbine fuel (ATF) to 4 per cent from 29% to boost air connectivity. Earlier, 4% VAT on ATF in the state was applicable only to the Gaya airport. “The decision has been taken by the state cabinet under the Regional Connectivity Scheme (RCS). With this the air ticket prices will further reduce and it will also attract more commercial flights in the state… it will further enhance the state’s revenue and will also generate employment,” Choudhary, who holds the finance portfolio, told ET. The state government is likely to bear a loss of less than ₹50 crore with the reduction of the VAT, he said.
Choudhary said that Prime Minister Narendra Modi recently laid the foundation stone of Bihta International Airport near Patna and that five more airports are going to come up under RCS. The new airports will be built in Sultanganj, Rajgir, Purnia, Birpur and Raxaul. The deputy CM further said the state government has decided on development of about 350 ponds measuring more than five acres each for development under the public-private partnership model.
“We have made these ponds available for private players to open cafes, water sports and entertainment zones around these ponds with a view to attract footfall. This will develop the entire economy around these ponds and generate revenue for the state,” he said.
Choudhary said that Bihar is ready to welcome industrial houses for investment in the state and has created a landbank of around 6,000 acres and that another land parcel of 4,000 acres would be added in the coming months before the assembly election. “We have industrial plots ranging from minimum 25 acres to 500 acres as per the requirement of business houses and the availability will be increased as we make more lands available for industrial units,” he said. He said several industrial units have come up in Bihar over the past one year, including 17-18 large ethanol plants. Besides, the state has signed memorandums of understanding (MoUs) worth ₹1.8 lakh crore, with MoUs of ₹80,000 crore in electricity generation.
