New prospects for industry and real estate: Bihar Agricultural Land Conversion for Non-agricultural use Rules, 2010
Patna: in a significant development with serious long term impact on the development of industries in the state, the state cabinet in Bihar approved the Bihar Agricultural Land Conversion for Non-agricultural use Rules, 2010.
According to the new rules, agricultural land can now be bought and put to industrial use through a process of conversion fee, which will earn some extra revenues for the government. The conversion fee may vary from place to place depending on the classification of land in question, and an additional fee of 1% of the market value of the land will be added.
Along with this, those found using agricultural land for non-agricultural purposes without paying the conversion fee, will have to pay up a fine that could be up to 50 percent of the market value of the land.
In a state with thick concentration of rural population, where land for non-agricultural purposes is not easy to find, the new rule may provide a much awaited relief to industrialists and investors planning to enter Bihar.
On the other hand, the rules securely leave the buyer and seller to settle deals with no need for the government to intervene and get into trouble with local populations like several other states such as west Bengal and Andhra Pradesh.