Bihar Industrial Investment Promotion Package 2025

• 28 Aug 2025

Why in News?

The Bihar Cabinet, on 26th August 2025, approved the Bihar Industrial Investment Promotion Package 2025 aimed at boosting industrial growth and attracting large-scale private investment in the state. 

• The initiative, a continuation of the Bihar Industrial Investment Promotion Policy 2016, will remain in effect until 31st March 2026 and is part of Bihar's efforts to create 1 crore employment opportunities over the next five years, positioning the state as a significant industrial hub.

Key Highlights of Bihar Industrial Investment Promotion Package 2025

• Free Land for Investors: Investors can avail of land at a nominal fee of Rs 1 for setting up industries, with schemes offering up to 10 acres of land for investments of Rs 100 crore and 1,000 jobs. 
  • Larger projects investing over Rs 1,000 crore will be allotted up to 25 acres. 
  • Fortune 500 companies will receive 10 acres of land.
• Discounts on Land: Investors not opting for the aforementioned schemes will get land at a 50% discount of the (Bihar Industrial Area Development Authority) BIADA’s land rate.
• Fin Tech City Development: The Cabinet also sanctioned Rs 408.81 crore for acquiring 242 acres of land for the Fin Tech City project near Fatuha in Patna. 
  • Modeled after (Gujarat International Finance Tec-City) GIFT City in Gujarat, the project will enhance financial services and enable direct cargo movement to Patna, boosting exports.
• Viability Gap Funding for International Flights: The Cabinet also approved Viability Gap Funding (VGF) for airlines promoting international routes from Patna and Gaya airports. 
  • Airlines operating Patna-Kathmandu, Gaya-Sharjah, Gaya-Bangkok, and other international routes will receive funding for round trips with a minimum capacity of 150 passengers.
• Financial Incentives: Investors can opt for one of the three financial incentive models:
  • Interest subvention of up to ₹40 crore and SGST reimbursement up to 100%.
  • 300% SGST reimbursement of the approved project cost over 14 years.
  • 30% capital subsidy based on the approved project cost.
• Export Incentive: Export incentives have been increased to ₹40 lakh annually, doubled from the previous amount, with benefits extended for 14 years.
• Employment Support: ₹5,000/month per worker for eligible industries and up to 300% ESI/EPF support. 
  • Other units will receive ₹2,000 per month per worker, along with social security benefits.
  • A ₹20,000 skill development grant per employee is also included.
• Green Incentives: 25% reimbursement (up to ₹1 crore) for environmental protection and up to ₹6 lakh for renewable energy usage.

Note: In another development, the Cabinet approved an increase in the honorarium for Kisan Salahkar (Farmer Advisors) from Rs 13,000 to Rs 21,000 per month to further support and empower agricultural advisors in the state.