In a major push to accelerate industrial growth, the Bihar government has approved the Bihar Industrial Investment Promotion Package (BIIPP) 2025. The decision was taken in a cabinet meeting chaired by Chief Minister Nitish Kumar on Tuesday, where a total of 26 agendas were cleared. The package includes attractive incentives such as free industrial land, tax exemptions, capital subsidies, and special benefits for large investors.
Chief Secretary Amrit Lal Meena, while briefing the media after the cabinet meeting, said that the policy has been designed to give a fresh momentum to Bihar’s industrial landscape. The announcement comes after the Chief Minister, in his Independence Day address, had promised new incentives for industries, which have now been formally approved.
Free Land for Major Investors
The package makes provisions for free land allotment to companies investing large sums in Bihar.
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Companies investing ₹100 crore or more and generating at least 1,000 jobs will be allotted up to 10 acres of free land.
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Companies with an investment of ₹1,000 crore or more will get 25 acres of free land.
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Fortune 500 companies will be eligible for 10 acres of free land.
The land will be provided through the Bihar Industrial Area Development Authority (BIADA) at a token money of ₹1, within designated industrial parks. For other companies that do not fall into this bracket, BIADA will provide land at a 50% concessional rate.
According to Meena, the policy will remain valid until March 31, 2026, and industries investing during this period will be entitled to these benefits.
Three Modes of Financial Assistance
The government has also outlined three financial assistance models, allowing industries to choose one option as per their needs:
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Loan Interest & Tax Exemption:
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Interest subsidy of up to ₹40 crore on bank loans.
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100% exemption from State GST (SGST).
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SGST Reimbursement:
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14 years of SGST reimbursement, amounting to up to 300% of the approved project cost.
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Capital subsidy ranging between 20–30% of project cost.
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Capital Subsidy:
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Up to 30% subsidy on the approved project’s total cost.
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This flexible approach is expected to attract investors by addressing their specific financial concerns.
Additional Incentives for Exporters and Textile Units
The package also includes targeted support for exporters and the textile sector:
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Export-oriented units will receive an annual incentive of ₹40 lakh for 14 years.
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Textile units offering a monthly wage of ₹5,000 per worker will get 300% benefits in ESI and EPF contributions.
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Textile units paying ₹2,000 monthly wages per worker will receive 100% support in ESI and EPF.
Additionally, industries will be provided with grants for environmental protection, renewable energy usage, and incentives for Common Facility Centre (CFC) development.
Development of 32 New Industrial Parks
To ensure adequate infrastructure for industrial growth, the state is planning to establish 32 new industrial parks across districts. For this purpose, 14,600 acres of land have already been acquired in the past year and a half. This includes 2,700 acres of government land, with 700 acres already transferred, and BIADA acquiring 8,000 acres.
Some of the key projects include:
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Purnia (K-Nagar): 279.65 acres at a cost of ₹66.91 crore.
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Darbhanga (Bahadurpur): 385.45 acres at ₹376 crore.
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Sheohar (Tariani): 270 acres at ₹105 crore.
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Rohtas (Shivsagar): 492.85 acres at ₹154 crore.
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Sheikhpura (Chevra): 250 acres at ₹42.16 crore.
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Bhojpur (Tarari): 249.48 acres at ₹52.62 crore.
The parks are being developed with a strong focus on rail and road connectivity to ensure seamless logistics for industries.
Fintech City in Patna
In a move to bring Bihar on the global investment map, the government has announced the creation of a Fintech City on the lines of GIFT City in Gujarat.
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To be built in Fatuha (Patna district), near the Multi-Modal Hub.
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Spread over 242 acres with an estimated cost of ₹408 crore.
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The Fintech City will house innovation-based enterprises, advanced technology industries, and export-oriented units.
The aim is to create a competitive ecosystem where high-tech industries can flourish, boosting both investment and employment opportunities in Bihar.
Bihar’s Industrial Future
Historically known as an agrarian state, Bihar has long struggled with limited industrialization. However, with the launch of BIIPP 2025, the government hopes to change this narrative.
The package is expected to:
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Attract large-scale private investment.
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Generate thousands of jobs.
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Strengthen Bihar’s presence on India’s industrial map.
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Open new avenues in exports, textiles, renewable energy, and fintech sectors.
The Chief Secretary underlined that industrial development under this package will not only create jobs but also lead to inclusive growth by encouraging investment across multiple districts, including less-developed regions.
The Bihar Industrial Investment Promotion Package 2025 represents a landmark policy shift aimed at reshaping the state’s economic future. With free land, tax exemptions, subsidies, and world-class industrial parks, Bihar is positioning itself as an attractive destination for investors.
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