IMPORTANT POINT
The court affirmed that companies meeting criteria under the Bihar Industrial Incentive policies are entitled to interest subsidies from the commencement of commercial production, irrespective of prior approval dates.

JUDGMENT :

The petitioners are the companies engaged in the generation of solar power and have filed the present writ applications for quashing of the orders, dated 12.09.2022 and 26.09.2022, issued vide Memo Nos. SIPB/906 and SIPB/114, respectively, by the respondent-Director of Industries, Bihar and for a direction to the respondents to reimburse the interest subsidy of 2 per cent on the term loan of rupees 49.92 crores and 16.50 crores, respectively. The petitioners have further prayed for a declaration that the companies are entitled for the interest subsidy from the date of commercial production, i.e. 30.03.2017 and 28.02.2017 respectively till seven years, as provided under the Industrial Incentive (Amendment) Policy, 2014.

2. I. A. No. 1 of 2025 has been filed in both the writ applications for amendment in the prayer for a direction to the respondent-State to disburse the amount of Rs. 5,57,84,700/- and Rs. 1,90,66,231/- respectively towards the interest subsidy for a period of 7 years from 01.04.2017 to 31.03.2024 and 01.03.2017 to 01.03.2024 respectively, and also to pay interest at the rate of 2 per cent upon the entire calculated amount.

3. Considering the nature of prayer made in the I. A. Nos. 01 of 2025, in both the writ applications, the same are allowed and will take the forming part of the main writ applications.

BRIEF FACTS OF CWJC No. 16164 OF 2022

4. The petitioner is a Public Limited Company, duly incorporated under the provisions of the Companies Act, 1956, on 13.12.2011, bearing Corporate Identity Number U31908WB2007PLC118886, and having its registered office at 76, Pandit Purushottam Roy Street, Kolkata.

5. With a view to promote industrial development within the State of Bihar, the Government of Bihar formulated and notified the Bihar Industrial Incentive Policy , 2011 (herein after referred to as ‘2011 Policy’), promising various fiscal and non- fiscal incentives to attract industrial investment.

6. The 2011 Policy was approved by the State Cabinet and notified in the Official Gazette vide Resolution No. 691, dated 09.06.2011, issued by the Department of Industries and published on 10.06.2011. A copy of the 2011 Policy has been annexed as Annexure 2 to the writ application.

7. Upon mid-term review of the 2011 Policy, the State Government decided to introduce certain amendments in the 2011 Policy. Accordingly, the Department of Industries issued the Industrial Incentive (Amendment) Policy, 2014 (herein after referred to as the ‘2014 Amendment Policy’), vide Letter No. 11, dated 05.01.2015, which was made effective from the date of its notification (Annexure 4).

8. The 2014 Amendment Policy was framed by introducing specific amendments to the 2011 Policy, and Clause 8 thereof inserted sub-paragraph (vi) in Paragraph 4 of the 2011 Policy, thereby providing for grant of interest subsidy at the rate of 2 per cent on the interest charged on term loans availed from the banks or financial institutions, payable for a maximum period of seven years from the date of commencement of commercial production.

9. In furtherance of the promises made under the 2014 Amendment Policy, the Department of Industries, Government of Bihar, issued a notification bearing Memo No. 982, dated 11.06.2015, laying down the procedure for grant of interest subsidy and specifying the date from which the amendment would take effect (Annexure–5).

10. The petitioner company applied for approval of the proposal for establishment of 25 MW power generation solar unit, initially proposed to be set up