Bihar Industrial Push : 14,600 Acres Of Land Approved In Landmark Cabinet Decision

The Bihar Cabinet has given its in-principle approval to the Bihar Industrial Investment Promotion Package 2025. Under this package, industries investing Rs 100 crore and providing 1,000 direct jobs will be given ten acres of land for free. Similarly, those investing Rs 1,000 crore will receive 25 acres, and Fortune 500 companies will be given 10 acres of land for free for their investment. This proposal was approved in the state cabinet meeting held on Tuesday, chaired by Chief Minister Nitish Kumar. A total of 26 proposals were approved in the meeting. Chief Secretary Amir Subhani provided this information to journalists at the Information Building on Tuesday.

The Chief Secretary also stated that a Fintech City will be established between Neura and Daniyawan. For this, 242 acres of land will be acquired, and a sum of Rs 408 crore has been sanctioned. Modern infrastructure will be developed here for investors. Additionally, the state government has approved the acquisition of 14,600 acres of new land for 32 new industrial parks. The Additional Chief Secretary of the Cabinet Department, Dr S Siddharth, mentioned that the cabinet has also approved the establishment of new industrial areas in seven cities, including Bhojpur, Sheikhpura, Rohtas, Shivhar, Darbhanga, Purnia, and Patna City.

The State Cabinet has announced a special incentive package for international flights from Bihar. Under this, a round-trip package of Rs 5 lakh will be provided for flights from Patna to Kathmandu, and Rs 1 lakh each for flights from Gaya to Sharjah, Gaya to Bangkok, Gaya to Colombo, and Gaya to Singapore.

The monthly honorarium for agricultural advisors has been increased from Rs 13,000 to Rs 21,000. Currently, 7,047 agricultural advisors are employed in the state. Three under-construction hydropower projects in the state—Barbal, Rampur, and Natwar—will be discontinued. Meanwhile, Rs 167 crore will be spent on the construction of nine other power plants: Tejpura, Dehra, Sipha, Balidad, Paharma, Mathauli, Rajapur, Amethi, and Dehri. 

The Government of Bihar recognises the need for fiscal incentives to enhance the competitiveness of units operating in the state. Accordingly, the Bihar government has prepared a customised fiscal incentive package that considers the state's comparative advantages and promotes industrial development. The Industrial Package 2025 will be effective from the date of its notification by the government until March 31, 2026. 

General Conditions

Under this package, new industrial units must apply through the Single Window Clearance Portal of the Industries Department on or before March 31, 2026. The minimum project cost for any industrial unit must exceed Rs 50 lakh.

Existing industrial units that have received incentives or benefits under the 2016 policy and have completed their eligibility period will be eligible to claim incentives under the expansion category of the Bihar Industrial Investment Promotion Package, 2025, provided that their expansion occurs after the notification of this package.

Industrial units that applied under the 2016 policy but have not yet started commercial production and have not received approval for any stage like Stage-1 clearance, financial incentive, or date of commercial production, and wish to avail benefits under the Bihar Industrial Investment Promotion Package, 2025, will have to submit a new application to receive grants under the new package.

Units approved under the new Industrial Package 2025, upon receiving financial or other types of incentives payable under this package, will not be able to claim similar benefits under other policies. However, types of incentives mentioned in other policies that are not mentioned in the previous provisions can be availed under a dovetailed provision. For example, industries in the textile sector can avail financial incentives for the employment grant mentioned in the Bihar Textile and Leather Policy, 2022, issued specifically for the textile sector. In that circumstance, the employment grant mentioned in BIIPP 2025 will not be payable.

Industrial units registered and receiving benefits under the existing IIPP, 2016 policy will not be eligible for grants or incentives under the Bihar Industrial and Investment Promotion Package, 2025.

Some Key Points

32 New Industrial Parks: Approval has been given for the acquisition of 14,600 acres of new land, which will boost the development of industries in the state.

Special Incentive Package for International Flights: The state government has announced a special incentive package for international flights, which will help the state's industries access the global market.