Bihar to provide free land, interest subvention of up to Rs 40 cr to investors under new policy: CM

The Bihar government on Tuesday announced a new policy under which free land and interest subvention of up to Rs 40 crore would be provided to those investing in the industrial sector.

Chief Minister Nitish Kumar asserted that the 'Bihar Industrial Investment Promotion Package 2025 (BIPPP-2025)' will boost industrial growth in the agrarian state and provide jobs to around one crore youth over the next five years.

''To encourage industries in Bihar, the government has implemented the new Bihar Industrial Investment Promotion Package 2025 (BIPPP-2025) after the BIADA Amnesty Policy 2025. Under this, interest subvention of up to Rs 40 crore will be provided to the investors,'' he said in an X post.

The new policy was approved by the state Cabinet in a meeting chaired by Kumar during the day.

Talking to reporters soon after the Cabinet meeting, Chief Secretary Amrit Lal Meena said that under the new industrial package, free land allocation will be done to promote investment.

"Industrial units investing more than Rs 100 crore and creating more than 1,000 direct jobs will be allocated up to 10 acres of land free of cost. Those investing over Rs 1,000 crore will be allocated up to 25 acres of land for free. Fortune 500 companies will be allocated up to 10 acres of land free of cost,'' he said.

Other investors, who do not opt for any of these schemes, will also get land at a 50 per cent discount of the Bihar Industrial Area Development Authority(BIADA)'s land rate for setting up industries in the state, Meena said.

To avail of the benefits under this industrial package, investors will be required to apply before March 31, 2026.

''This new industrial package will help provide jobs and employment to one crore youth in five years. The objective of this initiative is to further promote industries in Bihar, make the youth of the state skilled and self-reliant, enable them to get maximum employment within the state itself, and secure their future,'' the top bureaucrat said.

For new units, reimbursement of net State Goods and Services Tax (SGST) up to 300 per cent of the approved project cost will be given for 14 years, a capital subsidy of up to 30 per cent will be provided, and the limit for export promotion will be Rs 40 lakh per year for a period of 14 years, he said.

The state government has already taken an in-principle decision to set up an industrial area or park in every district of the state, he said, adding that the government has approved the acquisition of 14,600 acres of land for 32 industrial areas/parks in the past one year, whereas BIADA has acquired 8,000 acres of land since its inception.

All the industrial areas/parks have either been developed or are being developed near expressway highways or high-speed corridors, Meena said.

In another important decision, a "Fin Tech City" will be developed adjacent to a plot of Multi Modal Logistic Park (MMLP) at Fatuha circle in Patna district, the chief secretary said.

The Fin Tech City will be developed on the lines of the Gujarat International Finance Tec-City located between Ahmedabad and Gandhinagar.

The cabinet sanctioned Rs 408.81 crore for acquisition of 242 acres of land for Fin Tech City. The Infrastructure Development Authority in Patna will acquire the land.

Further, with a view to increasing the air connectivity on international routes, the cabinet gave its nod for giving "Viability Gap Funding" (VGF) to provide financial support to airlines to promote flight operations from Patna and Gaya airports.

"With this decision, international flights will be promoted between Patna and Nepal's capital Kathmandu from Jay Prakash Narayan International Airport in Patna, while flight operations will be increased from Gaya International Airport for Sharjah, Bangkok, Singapore and Colombo", Additional Chief Secretary (ACS) of the Cabinet Secretariat, S Siddharth, told reporters.

As per the decision, a maximum of Rs 5 lakh will be given as VGF for a round trip of Patna-Kathmandu international flight, whereas a maximum of Rs 10 lakh each will be given as VGF for a round trip between Gaya-Sharjah, Gaya-Bangkok, Gaya-Singapore and Gaya-Colombo, Siddharth said adding that flights with a minimum capacity of flying with 150 passengers will be allowed on these routes only.

The VGF is being given to airlines to make their operations viable, ACS said, adding that the government has requested all the airlines to start international flight operations on these international air routes from Bihar.

The Cabinet also approved the agriculture department's proposal to increase the honorarium for "Kisan Salahkar" (Farmer Advisor) from Rs 13,000 to Rs 21,000 per month, and Rs 67.87 crore was sanctioned for the purpose.

The cabinet also approved the construction of a five-star hotel/resort on five acres of land in Vaishali district, he said, adding that the cabinet has made a slight modification in its earlier decision taken on August 19, 2025, as per which a "five-star resort" was to be developed on "10 acres of land".

Besides, the Cabinet also decided to increase the dealer commission of PDS dealers in the state..

As the dealers' commission has been hiked by Rs 47 per quintal, they will now get Rs 258.40 per quintal as commission, Siddharth said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)