PATNA: On Tuesday, the Bihar government unveiled a new policy that offers free land and interest subsidies of up to Rs 40 crore to investors in the industrial sector.
Chief Minister Nitish Kumar stated that the ‘Bihar Industrial Investment Promotion Package 2025 (BIPPP-2025)’ aims to enhance industrial development in the agrarian state, generating approximately 1 crore jobs over the next five years.
“To encourage industry in Bihar, the government has introduced the Bihar Industrial Investment Promotion Package 2025 (BIPPP-2025) following the BIADA Amnesty Policy 2025. This includes interest subsidies of up to Rs 40 crore for investors,” he shared in a post on X.
The new policy received approval from the state cabinet during a meeting chaired by Kumar.
“As part of this package, free land will be made available to incentivize investment. Industries investing over Rs 100 crore and creating more than 1,000 direct jobs can receive up to 10 acres of land at no cost. Those investing above Rs 1,000 crore will be eligible for up to 25 acres of free land. Additionally, Fortune 500 companies can acquire up to 10 acres free of charge,” the CM noted.
To be eligible for benefits under this package, investors must submit their applications by March 31, 2026.
“This new industrial initiative aims to create opportunities for 1 crore youths in five years. The goal is to further stimulate industrial growth in Bihar, enhance the skills and self-reliance of the youth, and enable them to secure employment within the state,” Kumar explained.
For new units, a reimbursement of up to 300% of the net State Goods and Services Tax (SGST) for the approved project cost will be provided for 14 years, along with capital subsidies of up to 30% and export promotion limits of Rs 40 lakh annually for 14 years, he mentioned.
“Moreover, support will be extended for skill development, environmental protection, renewable energy usage, reimbursement of stamp duty and land conversion fees, assistance to private industrial parks, patent registration, and quality certification,” the CM added.
Assembly elections are expected in Bihar later this year.
