In a bid to accelerate industrial growth and attract large-scale private sector investment to the state, the Bihar Cabinet on Tuesday approved the “Bihar Industrial Investment Promotion Package 2025”.
The initiative, part of the existing Bihar Industrial Investment Promotion Policy 2016, will remain in effect until March 31, 2026, and aims to offer a suite of financial and infrastructural incentives to prospective investors.
Minister of Industries Nitish Mishra said the package aligns with the state government’s goal to boost industrialisation and generate one crore employment opportunities in the state over the next five years. “The state government has decided to transfer land free of cost to investors willing to set up industries in Bihar,” said Mishra, adding that under this initiative, land will be provided at a token amount of Rs 1, subject to eligibility criteria.
Bihar Chief Secretary Amrit Lal Meena said the land allotment would be governed by three investment-linked schemes, out of which an investor can opt for any one.
“An investor committing a minimum of Rs 100 crore and creating 1,000 direct jobs will be eligible for 10 acres of land. Those investing Rs 1,000 crore will receive up to 25 acres. The scheme will offer 10 acres to Fortune 500 companies establishing industrial units in the state,” Meena said.
The Chief Secretary said that for investors not covered under these specific categories, land would still be available at 50% of the Bihar Industrial Area Development Authority (BIADA) prevailing rate.
Alongside the land benefits, the package offers three financial incentive models, from which investors may choose one based on their business needs. “Option one provides interest subvention of up to Rs 40 crore along with reimbursement of State GST up to 100%. Option two offers net SGST reimbursement of up to 300% of the approved project cost over a 14-year period. Option three allows a 30% capital subsidy based on the approved project cost.”
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“It is completely up to the investors which option they want to choose,” Meena said.
The government has also increased the export incentive, doubling it from Rs 20 lakh to Rs 40 lakh annually and extending the period of benefit to 14 years, in a move intended to support Bihar-based exporters.
For employment generation, the Industries Minister said the package includes a monthly incentive of Rs 5,000 per employee, along with support of up to 300% of the employer’s contribution towards Employees’ State Insurance (ESI) and Employees’ Provident Fund (EPF).
“For other units, the government will give Rs 2,000 per employee per month, with 100% support on ESI and EPF contributions,” Mishra said, adding that the government will also provide Rs 20,000 per worker as a skill development incentive.
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Mishra further told The Indian Express that while pushing from an agriculture-based state towards industrialisation, it was important to balance it with sustainability and being environmentally friendly. “The package offers a 25% reimbursement, up to Rs 1 crore for environment protection initiatives. Additionally, industries using renewable energy will be eligible for 20% incentive up to a maximum of Rs 6 lakh.”
The state government has already taken an in-principle decision to set up an industrial area or park in every district of the state, and the minister said 14,600 acres have been approved for acquisition in the past year for 32 industrial areas and parks. BIADA has cumulatively acquired 8,000 acres since its inception.
“All industrial areas and parks are being developed close to high-speed corridors and expressways, ensuring efficient road and rail connectivity,” Mishra said.
