Interest subsidy, SGST reimbursement or capital subsidy, cheaper land and extra incentives for new industrial units in Bihar
Bihar Industrial Investment Promotion Package 2025
The Industries Department's resolution of 26 August 2025 (memo 3223, accepted by the cabinet that day), read on the state single window portal. As issued it took applications on that portal up to 31 March 2026, with each project's milestone due by 31 March 2027. The Department of Industries has announced on its own X account that the deadline is now 31 December 2026, and press reports of the July 2026 cabinet decision add: or until a new Industrial Investment Promotion Policy 2026 starts, whichever is earlier. We have not seen the written extension order, so confirm the date with the Department before relying on it. The figures below are from the resolution.
New industrial units in Bihar with an approved project cost above ₹50 lakh. Larger projects get more options
- A choice of one of three, made once when you apply for incentives after the project starts and not changeable later: interest subsidy with SGST reimbursement, a special SGST package, or capital subsidy
- Option 1, open to all eligible units: interest subsidy for 5 years at 10 per cent or the actual loan rate, whichever is lower (12 per cent for micro and small units), on a bank term loan, capped at 50, 30 or 15 per cent of approved project cost (₹40 crore, ₹20 crore and ₹20 crore at most) for high priority, priority and other sectors. SGST reimbursement for 5 years comes with it, at 100 per cent for high priority and 80 per cent for the rest
- Options 2 and 3 are for projects above ₹50 crore. The SGST package returns 100 per cent of net SGST for 10, 12 or 14 years for large, mega and super mega units, up to 150, 250 or 300 per cent of approved project cost in Area A (125, 200 or 250 per cent in Area B). The capital subsidy is 30, 25 or 20 per cent for large units, 22 per cent for mega and 25 per cent (22 per cent in Area B) for super mega, paid in equal yearly instalments
- BIADA land on a 30 year lease at a lower rate: up to 10 acres for ₹1 for projects above ₹100 crore with 1,000 direct jobs, up to 25 acres above ₹1,000 crore, and 50 per cent of BIADA's rate for other investors. The land concession needs at least 25 per cent of construction done by 31 March 2027
- Extras for high priority and priority sectors: ESI and EPF employer share for Bihar-domiciled staff, up to ₹2,000 a worker a month for 5 years; 25 per cent of effluent treatment cost up to ₹1 crore; 20 per cent of the cost of renewable systems above 10 kW, up to ₹6 lakh. For all units: 50 per cent of patent costs (up to ₹2 lakh in India, ₹6 lakh abroad) and 50 per cent of quality certification cost for MSMEs, up to ₹2 lakh
- The same benefit cannot be taken twice under other policies, but items this package does not cover can be added from other state and central schemes
- A new industrial unit in a priority, high priority or other listed sector, not on the negative list (narcotic drugs, alcoholic drinks, asbestos or anything harmful to the environment)
- An approved project cost above ₹50 lakh
- Applying on the single window portal by the package's last date, with the project milestone set in the resolution as 31 March 2027; check whether the extension moves it
- Units already getting benefits under the 2016 policy cannot claim under this package, except through its expansion category
Apply for Stage-1 clearance and then financial clearance on the state Single Window Clearance portal (swc2.bihar.gov.in). Each is due within 15 working days of a complete application, and 30 days at most with the State Investment Promotion Board. Land comes from BIADA through its own portal.