Bihar Clears New Industrial Package With Free Land And Incentives For Big Investors

The Bihar Cabinet has approved the “Bihar Industrial Investment Promotion Package 2025” in a bid to attract large-scale private investment and create jobs, the Indian Express reported.

The scheme, part of the existing Bihar Industrial Investment Promotion Policy 2016, will remain effective until 31 March 2026.

Industries Minister Nitish Mishra said the package is designed to accelerate industrialisation and create one crore jobs over the next five years.

He added that land will be transferred free of cost to investors at a token amount of Rs 1, provided they meet the eligibility criteria.

Chief Secretary Amrit Lal Meena outlined the land-linked benefits, noting that allotment will be governed by three schemes.

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“An investor committing a minimum of Rs 100 crore and creating 1,000 direct jobs will be eligible for 10 acres of land," He said.

Investments of Rs 1,000 crore or more will qualify for a land grant of up to 25 acres, while Fortune 500 firms setting up operations in Bihar will be allocated 10 acres.

For other categories of investors, land will be made available at half the standard BIADA rate.

The incentive package lays out three distinct options.

One provides interest subvention of up to Rs 40 crore along with full reimbursement of State GST.

Another allows SGST reimbursement of up to 300 per cent of the sanctioned project cost, spread across 14 years.

The third option offers a 30 per cent capital subsidy.

In addition, export-linked support has been expanded, with the maximum incentive raised to Rs 40 lakh annually and extended for a 14-year duration.

On the jobs front, the scheme promises Rs 5,000 per worker each month for qualifying industries, in addition to covering up to 300 per cent of the employer’s contribution towards ESI and EPF.

Other units will get Rs 2,000 per worker plus full social security support. A skill development grant of Rs 20,000 per employee has also been introduced.

Mishra said the policy balances industrialisation with sustainability, offering incentives for renewable energy and environmental protection measures.

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