Bihar’s Chief Minister , Nitish Kumar, has rolled out a big initiative under which eligible participants will get free land in the state. This scheme is part of the new Bihar Industrial Investment Promotion Package 2025 (BIPPP-2025).\
Nitish Kumar said on X (formerly Twitter) on August 26, 2025,: “To encourage industries in Bihar, the government has now implemented the new Bihar Industrial Investment Promotion Package 2025 (BIPPP-2025) after the BIADA Amnesty Policy 2025."
Under policy eligible participants can get:-
Interest subvention of up to 40 crore rupees will be provided.
For new units, reimbursement of net SGST (State Good and Services Tax) up to 300 percent of the approved project cost will be provided for 14 years.
Capital subsidy of up to 30 percent will be provided.
The limit for export promotion will be 40 lakh rupees per year for a period of 14 years. In addition, assistance will be provided for skill development, environmental protection, use of renewable energy, reimbursement of stamp duty and land conversion fees, support to private industrial parks, and patent registration and quality certification.
Free land in Bihar
CM Kumar said on X:
“Under this new Industrial Package 2025, free land allocation will be done to promote investment.” Details:
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. Industrial units investing more than (Rs) 1,000 crore will be allocated up to 25 acres of land free of cost. Fortune 500 companies will be allocated up to 10 acres of land free of cost.
To avail the benefits under this Industrial Package 2025, investors will be required to apply before 31 March 2026.
This new Industrial Package 2025 will help in providing jobs and employment to 1 crore youth in 5 years. The objective of this initiative is to further promote industries in Bihar, make the youth of Bihar skilled and self-reliant, enable them to get maximum employment within the state itself, and secure their future.
According to a public advertisement by the Bihar government , others who do not meet the above mentioned eligibility criteria, will be given land at 50% off on BIADA land rate.
Amrit Lal Meena, Chief Secretary, Government of Bihar, said on Linkedin: Key Highlights of Bihar’s Industrial Investment Promotion Package (2025):
1. Land Incentives
Mega Projects: Up to 25 acres of land free.
Projects ≥ ₹100 Cr & 1,000 jobs: Up to 10 acres free.
Fortune 500 Companies: Up to 10 acres concessional/free.
2. Financial Incentives
Interest Subvention: Up to ₹40 Cr.
SGST Reimbursement: Up to 300% for 14 years.
Capital Subsidy: 30% subsidy on eligible capital investment.
Export Incentives: Up to ₹40 lakh/year for 14 years.
3. Additional Supports
Skill Development: Training support for local workforce.
Sustainability Focus: Incentives for renewable energy & environmental protection.
Tax & Fee Reimbursements: Stamp duty + land conversion/revenue fee reimbursed.
Industrial Parks & Infra: Plug-and-play infra, cluster-based parks.
IP & Quality: Patent registration and quality certification support.
4. Infrastructure Development
32 Industrial Parks: 8,000 acres already acquired; 14,600 acres planned.
FinTech City (Fatuha): 242 acres allocated for FinTech & digital services hub.
5. Timeline & Goals
Validity: Scheme open till March 31, 2026.
Target: Creation of 1 crore jobs in 5 years.
What are the key incentives of this scheme?
According to a public advertisement by the Bihar government, here are the key benefits of the scheme:
Employment generation incentives: For textile units up to Rs 5,000 per month per employee, 300% of ESI and EPF. For others up to Rs 2,000 per month per employee, 100% of ESI and EPF.
Export incentive: For 14 years (maximum 40 lakh per year)
Skill development incentive: Up to Rs 20,000 per worker.
Environmental protection incentive: 25% reimbursement up to Rs 1 crore.
Renewable Energy usage incentive: 20%, maximum amount of Rs 6 lakh
CFC Development Incentives: Case to case basis.
Other incentives: Patent registration, quality certification support
Source Name : Economic Times