Key Benefits & Incentives for Business Owners

• Free Land Provision:

  • Industrial units investing ₹100 crore or more and creating 1,000 direct jobs will be allotted up to 10 acres free of cost.

  • Units investing ₹1,000 crore+ may get up to 25 acres free of cost.

  • For globally‑recognized (Fortune 500) companies, allocation up to 10 acres free on token cost.

• Fiscal Incentives & Subsidies:

  • Interest subvention up to ₹40 crore for eligible investors.

  • Reimbursement of Net SGST up to 300% of the approved project cost for 14 years.

  • Capital investment subsidy up to 30% of approved project cost.

  • Export incentive: Up to ₹40 lakh per year for 14 years for export‑oriented units.

• Other Supportive Measures:

  • Reimbursement for environmental protection costs (effluent treatment, ZLD, etc) up to 25% (ceiling) for eligible units.

  • Support for renewable energy usage: incentive up to 20% or max ₹6 lakh for eligible units.

  • Employment generation incentives: e.g., for each employee certain amount per month for a period, plus support for ESI/EPF contributions.

Eligibility Criteria – What Business Owners Should Know

• The policy package is applicable to new industrial units (and possibly expansions) setting up in Bihar.

• Units should meet minimum investment and job‑creation thresholds to access higher benefits (e.g., ₹100 crore investment + 1,000 jobs for free land).

• The unit must apply by 31 March 2026 to avail the new package benefits.

• The benefits differ by category of investment‐size, job creation, export orientation, etc. Choose the option (interest subvention vs SGST reimbursement vs capital subsidy) that aligns best with your business model.

• Prepare for compliance: documented proof of investment, job creation, production start, export turnover (if applicable), etc will be needed to claim incentives.

Important Considerations for Business Owners

• While the incentives are substantial, the business fundamentals still apply: location, infrastructure (land, power, connectivity), raw materials, logistics, workforce availability.

• Infrastructure in certain districts may still be catching up, so evaluate supply chain and operational readiness.

• Incentives such as SGST reimbursement or subsidy are often performance‑linked (subject to business achieving production / revenue thresholds) – plan realistic timelines.

• You must pick the right incentive option (interest subvention vs SGST vs capital subsidy) based on your cost structure and cash‑flow model.

• Ensure you’re aware of time‐limits (application deadline, production start deadline) and maintain all documentation rigorously.

Why This Policy Matters for Entrepreneurs & Business Owners

• If you are considering setting up a manufacturing unit (or even service/ancillary unit) in Bihar, this policy offers a strong incentive package to reduce investment and operating costs.

• With free or highly subsidised land for large investments, it presents an opportunity to scale or locate operations in a state that is proactively seeking industrial growth.

• With incentives tied to job creation and exports, it aligns well with growth‑oriented business models and can improve viability of large‑scale projects.

• The policy signals that Bihar is increasingly positioning itself as an investor‑friendly destination — early movers may gain competitive advantage.