Particle.news

Download on the App Store

Bihar Approves Investment Package With Free Land and Up to ₹40 Crore Interest Support

The decision ties the plan to a one‑crore jobs target by coupling funded land banks and a selectable subsidy menu available until March 31, 2026.

Image
Image
Image

Overview

  • The cabinet cleared the Bihar Industrial Investment Promotion Package 2025 under the 2016 policy, with benefits open to applicants through March 31, 2026.
  • Land will be transferred at a token ₹1 for qualifying projects: up to 10 acres for investments of ₹100 crore with 1,000 direct jobs, up to 25 acres for ₹1,000 crore projects, and 10 acres for Fortune 500 firms; other investors can buy at 50% of BIADA’s rate.
  • Investors must choose one incentive track: interest subvention up to ₹40 crore with up to 100% SGST reimbursement, or net SGST reimbursement up to 300% of approved project cost for 14 years, or a 30% capital subsidy.
  • Employment support includes ₹5,000 per employee per month with up to 300% ESI/EPF support for eligible units (₹2,000 and 100% for others), plus ₹20,000 per worker for skills; export incentive is doubled to ₹40 lakh a year for 14 years alongside environment and renewable-energy incentives.
  • To operationalize the push, the state sanctioned major land buys—1,927.5 acres worth ₹797.1 crore across six districts—and ₹408.81 crore to acquire 242 acres for a FinTech City at Fatuha, with the Infrastructure Development Authority tasked with acquisition.