Bihar Unleashes Industrial Growth Package with Free Land and Subsidies

Patna, Aug 26 (PTI) — On Tuesday, the Bihar government unveiled a significant policy intended to fuel industrial development, offering free land and interest subsidies reaching up to Rs 40 crore for investors in the state's industrial sector.

Chief Minister Nitish Kumar highlighted that the 'Bihar Industrial Investment Promotion Package 2025 (BIPPP-2025)' is designed to catalyze industrial expansion in Bihar, which remains largely agrarian, and create employment opportunities for about 1 crore youth over the next five years.

"To incentivize industrial growth in Bihar, the government has rolled out the BIPPP-2025, succeeding the BIADA Amnesty Policy 2025. Investors will benefit from interest subsidies of up to Rs 40 crore as part of this initiative," Kumar shared in a post on X.

The policy received the green light from the state cabinet in a session led by Kumar on Tuesday.

"The new industrial package facilitates free land allocation to spur investments. For industrial units investing over Rs 100 crore and generating over 1,000 direct jobs, up to 10 acres will be allocated at no cost. Those investing above Rs 1,000 crore will receive up to 25 acres without charge. Furthermore, Fortune 500 companies will be granted up to 10 acres for free," the Chief Minister elaborated.

Investors aiming to tap into this package's benefits must submit applications before March 31, 2026.

"This new package is pivotal for providing employment to 1 crore youth within five years. It aims to foster Bihar's industrial sector, enhance the skills of the state's youth, promote self-sufficiency, and support their employability within the state," Kumar emphasized.

Additionally, new units are eligible for reimbursement of the net State Goods and Services Tax (SGST) up to 300% of the approved project cost for 14 years. They will also receive a capital subsidy of up to 30%, with export promotion capped at Rs 40 lakh per annum over 14 years, he continued.

"The policy further extends support for skill development, environmental initiatives, renewable energy adoption, stamp duty reimbursement, land conversion fees, private industrial parks, and patent registration and quality certification," Kumar added.

Bihar is preparing for its upcoming assembly elections later this year.

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