SAI IRON (INDIA) LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) How Industrial Units are allured in the State on incentive promises and once they come and risk their capital in the State how effectively the bureaucracy sabotage the very incentives available to them, is illustrated by this case. What is more regrettable is that an officer of the State as senior as Commissioner-cum-Secretary, Department of Industries issues general orders effectively nullifying industrial policy and how another Senior Officer, the Director of Industries ignoring the object of incentives in the Industrial Policy does everything to deprive industries of their legitimate claims under the incentive policy, is illustrated herein. The facts only lead this Court to observe that if either because of any executive necessity or the grant of incentives being found inpalatable by the bureaucracy, the incentive entitlements are not though proper to be granted to Industrial Units claiming then the Government should have the courage and conviction to take a stand in the matter and amend or rescind the industrial policy incentives but so long as the industrial incentive policy continues to be valid, the bureaucracy cannot take upon itself to deny the benefits thereof to the units who are otherwise entitled to it.

(2.) This is the third round before this Court of the petitioner claiming Power Subsidy Entitlement as an incentive under the 1993 Industrial Policy of the State and this is what makes it all the more regrettable.

(3.) The State Government, with the intention of alluring industries to set up units in the State for the development of the State, came out with Industrial Policy 1993. The said policy provided, inter alia that all units, which are set up within the five years period of the Industrial Policy, would be entitled for certain industrial incentives in the shape of exemptions from sales tax and other benefits including a Power Subsidy whereby irrespective of the rate at which industries pay at the power, for the units consumed in any particular period, the unit would be entitled to a subsidy of 18 paise per unit consumed. This claim has to be lodged by the industrial unit before the District Industries Centre who has to verify the same and sanction the same. After the sanction by the General Manager, District Industries Centre, funds are sought and on the funds being allocated by the Department of Industries, the same is to be paid to the industrial unit.