‘Banks lukewarm about growth in state’

Bihar Chamber of Commerce and Industries president P K Agrawal feels the state government should formulate a comprehensive policy for hassle-free investments in the state. A chartered accountant by profession, Agrawal shares with Aditya Vaibhav his experiences and challenges as head of the body that represents businessmen and entrepreneurs. Excerpts:
What are your expectations from the state government?
Industry-friendly policies are a prerequisite for industrial growth.Which place would you as an entrepreneur prefer — a place where you have to run from pillar to post for getting things done or a place where you are welcomed by local authorities?
What do you suggest…?
Participation of technocrats and other professionals in policymaking can work wonders. You can assess the import of this suggestion by studying the example of Amul in Gujarat. Bureaucrats’ role should be kept confined to administration.
Any major changes you observed in the state during the last ten years?
Law and order has improved, no doubt. Power supply scenario has also improved to a great extent in urban areas. The industrial policies effected in 2006 and 2011 did pave way for better atmosphere for industrial growth.
Does political instability impact trade and industries?
Any industrialist looks for three fundamentals before establishing an industrial unit: political stability, friendly government policies and their proper implementation. Thus political stability is a must for the sector’s development. Political instability ups the number of administrative stumbling blocks in the way of industrial growth.
How does the Chamber view the state industries’ cabinet which held its first meeting recently?
First, the industries’ cabinet did not take any decision. Second, it did not incorporate any of the BCCI’s suggestions, which included midterm review of Industrial Policy, 2011, and resolution of land crunch issue.
Is the attitude of banks friendly for growth of entrepreneurship in the state?
Every time the Chamber approaches banks for financial assistance to budding entrepreneurs of the state, top officials tell us ‘We would definitely help if you come up with good projects’. Now, what is the definition of good projects? The fact is, these banks are not interested in taking risk. They would readily give car and housing loans, but would become apprehensive when one talks about opening new industrial units.
What would be your professional advice to budding entrepreneurs?
Pursue your interest passionately and give it your best. Success will follow. First-timers must be in regular touch with veterans of the segment. Anyone can contact me as and when needed.