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Bihar Clears BIPPP-2025 to Attract Industry With Free Land and Rs 40 Crore Interest Support

The cabinet-approved package aims to accelerate job creation over five years through expansive tax and capital incentives.

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Overview

  • Chief Minister Nitish Kumar announced the Bihar Industrial Investment Promotion Package 2025 after state cabinet approval.
  • Free land will be allotted on tiers, including up to 10 acres for projects above Rs 100 crore with 1,000 direct jobs, up to 25 acres for investments above Rs 1,000 crore, and up to 10 acres for Fortune 500 companies.
  • New units are eligible for net SGST reimbursement up to 300% of approved project cost for 14 years, a capital subsidy up to 30%, and export-promotion support capped at Rs 40 lakh annually for 14 years.
  • Investors must apply by March 31, 2026 to access benefits, which also include interest subvention up to Rs 40 crore and assistance for skills, renewable energy, stamp duty and land conversion fees, private industrial parks, patents, and quality certification.
  • Kumar said the initiative targets jobs for around 1 crore youth in five years, and reports note the rollout follows the BIADA Amnesty Policy 2025 as assembly elections approach later this year.