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Bihar Industrial Investment Promotion Package (BIIPP) 2025
₹50 Lakh+
Minimum Project Cost to Apply
Up to 300%
SGST Reimbursement Ceiling (Super Mega, Region A)
₹01
Token Land Rate for Qualifying Large Investments
31 Mar 2026
Last Date to Apply on SWC Portal
Preamble & General Rules of BIIPP 2025
The Government of Bihar has formulated the Bihar Industrial Investment Promotion Package, 2025 (BIIPP 2025) as a customized package of fiscal incentives to improve the competitiveness of units operating in the State and boost industrial growth. The Package is in operation from the date of notification till 31st March 2026.
- •Application Cut-off: New industrial units must apply on or before 31 March 2026 on the Single Window Clearance portal (swc2.bihar.gov.in).
- •Project Cost & Timeline: Minimum project cost must be more than ₹50 Lakhs, with the implementation milestone achieved before 31st March 2027.
- •Expansion Category: Existing units that have completed their eligibility period under BIIPP 2016 can claim incentives under the expansion category of BIIPP 2025, provided expansion takes place after notification.
- •BIIPP 2016 Transition: Units that applied under BIIPP 2016 but have not commenced commercial production, and have not received Stage-1 clearance, Financial Incentive approval, or Date of Commercial Production, must file a fresh application to avail benefits under BIIPP 2025.
- •Stacking/Dovetailing Constraint: If a unit approved under BIIPP 2025 avails a type of financial/other incentive under this package, the same type of benefit cannot be availed under other policies. Incentive types not mentioned in BIIPP 2025 can be availed via dovetailing.
Sector classifications and district regions
High-Priority Sectors Criteria
| Sector | Technical Eligibility Criteria |
|---|---|
| Food Processing | Investment in Fixed Assets & Plant and Machinery (excl. land) must be ≥ ₹5 Crore; otherwise covered under Priority Sector. |
| Textiles and Leather | Creating direct employment of at least 50 direct employees (excl. support staff such as Drivers, Guards). |
| Media and Entertainment | Investment ≥ ₹5 Crore and direct employment of at least 50 employees. |
| Logistics | Investment in Fixed Assets & Plant and Machinery (excl. land) ≥ ₹5 Crore. |
| IT, ITeS & ESDM, GCC | All units qualify under High Priority sector. |
| Electric Vehicle (EV) | All units qualify under High Priority sector. |
| Pharmaceuticals & Med Devices | All units qualify under High Priority sector. |
| Toys Manufacturing | All units qualify under High Priority sector. |
| Renewable & Green Energy | Includes CBG and Fuel Based Ethanol, Methanol; all units qualify. |
Priority, Non-Priority & Negative List Sectors
Priority Sectors: Automobiles; General Manufacturing; Beverages, Spirits and Vinegars; Small Machine Manufacturing; Paints and Chemicals; Ceramics; FMCG Products; Health and Wellness Centers; Arms and Ammunition; Plastic and Rubber; Waste Recycling; Glassware; Healthcare; Fertilizers; Gems & Jewellery; Wood Based; Clocks & Watches; Sports Goods; Furniture.
Non-Priority Sectors: Products not covered under the scope of High Priority and Priority sectors, and not included in the Negative List.
Negative List (Ineligible): Units manufacturing narcotic drugs, alcoholic beverages, asbestos, and any industry which impacts the environment negatively.
Regional Classification (Region A vs Region B)
| Region Category | Covered Districts in Bihar |
|---|---|
| Region A (Focus Region) | Aurangabad, Arwal, Araria, Banka, Bhagalpur, Bhojpur, Darbhanga, East Champaran, Gopalganj, Jamui, Jehanabad, Kaimur, Katihar, Khagaria, Kishanganj, Lakhisarai, Madhepura, Madhubani, Munger, Nawada, Nalanda, Purnea, Rohtas, Saharsa, Samastipur, Saran, Supaul, Sitamarhi, Sheikhpura, Sheohar, Siwan, West Champaran. |
| Region B (Standard Region) | Begusarai, Buxar, Gaya, Muzaffarpur, Patna, Vaishali. |
Three Mutually Exclusive Subsidy Options
The selection of the option is a one-time, irreversible choice exercised after project commencement at the time of incentive application. These incentives are in addition to stamp duty, land concessions, and other additional incentives.
Option 1: Interest Subvention & Tax Related Incentives (SGST)
| Sector Category | Interest Subvention (Term Loan) | Tax Related Incentive (SGST Reimbursement) |
|---|---|---|
| High Priority | 10% (12% for Micro & Small) for 5 years; Max. 50% of Approved Project Cost (cap ₹40 Cr) | 100% reimbursement for 5 years; Max. 100% of Approved Project Cost |
| Priority | 10% (12% for Micro & Small) for 5 years; Max. 30% of Approved Project Cost (cap ₹20 Cr) | 80% reimbursement for 5 years; Max. 100% of Approved Project Cost |
| Non-Priority | 10% (12% for Micro & Small) for 5 years; Max. 15% of Approved Project Cost (cap ₹20 Cr) | 80% reimbursement for 5 years; Max. 70% of Approved Project Cost |
Interest subvention rate is 10% or the actual rate of interest on the term loan (from scheduled commercial bank/approved financial institutions), whichever is lower (12% for Micro & Small units). Micro and Small units receive CGTMSE fee reimbursement in addition.
Option 2: Special SGST Package
| Particulars | Large (₹50 Cr – ₹200 Cr) | Mega (>₹200 Cr – ₹500 Cr) | Super Mega (>₹500 Cr) |
|---|---|---|---|
| Region A — Overall Ceiling | 150% of Approved Project Cost | 250% of Approved Project Cost | 300% of Approved Project Cost |
| Region A — Annual Ceiling | 25% per annum | 25% per annum | 25% per annum |
| Region B — Overall Ceiling | 125% of Approved Project Cost | 200% of Approved Project Cost | 250% of Approved Project Cost |
| Region B — Annual Ceiling | 20% per annum | 20% per annum | 20% per annum |
| Period of Reimbursement | 10 Years | 12 Years | 14 Years |
Option 3: Capital Subsidy
| Project Scale / Category | Capital Subsidy Rate | Region A Upper Cap | Region B Upper Cap | Disbursal Duration |
|---|---|---|---|---|
| Large — High Priority | 30% of APC | ₹40 Cr | ₹30 Cr | 10 equal annual instalments |
| Large — Priority | 25% of APC | ₹30 Cr | ₹25 Cr | 12 equal annual instalments |
| Large — Non-Priority | 20% of APC | ₹25 Cr | ₹20 Cr | 14 equal annual instalments |
| Mega (>₹200 Cr) | 22% of APC | ₹110 Cr | ₹100 Cr | 12 equal annual instalments |
| Super Mega (>₹500 Cr) | 25% (Region A) / 22% (Region B) | No Upper Cap | No Upper Cap | 14 equal annual instalments |
From the second year onward, capital subsidy equals 100% of the equated annual instalment due, provided production is at least 75% of the previous year's production or 80% of installed capacity, whichever is greater; otherwise, the subsidy is reduced proportionally.
Non-core promotional subsidies and rebates
- •Employment Generation: 100% reimbursement of ESI/EPF contributions for Bihar-domiciled employees up to ₹2,000 per month per employee for 5 years (Textile & Leather units use 2022 policy terms instead).
- •Export Booster: Double the standard Export Promotion Policy cap — up to ₹40 Lakh per financial year for 14 years.
- •Environmental Protection: 25% reimbursement of cost incurred on ETPs, ZLD & STPs up to ₹1 Crore for High Priority & Priority sector units.
- •Renewable Energy: 20% reimbursement of total installation cost up to ₹6 Lakh for installations above 10 KW capacity.
- •CFC Development: Case-to-case assistance for developing Common Facility Centres in BIADA Industrial Areas.
- •Patent Registration: 50% reimbursement of filing and attorney expenses up to ₹2 Lakh for domestic patents and ₹6 Lakh for foreign patents.
- •Quality Certification: 50% of cost up to ₹2 Lakh for MSMEs obtaining ISO, USFDA, GMP, BIS, FPO, etc.
Reduced rates and token land allotment
| Investor/Project Category | Industrial Land Rate Concession (30-year lease) |
|---|---|
| Investment > ₹100 Cr & ≥ 1,000 direct jobs | Land at token amount of ₹01, up to 10 acres |
| Fortune 500 Global/Indian Anchor Industry (> ₹200 Cr) | Land at token amount of ₹01, up to 10 acres |
| Investment > ₹1,000 Cr | Land at token amount of ₹01, up to 25 acres |
| Other qualifying companies | Land at 50% of the notified BIADA rate |
The concessional rates apply only if the investor completes at least 25% construction of the unit by March 31, 2027. Non-compliance requires payment of the full BIADA lease rate.
Mega-anchor customized terms and special category incentives
Customized Incentive Package: Projects involving investments > ₹2,000 Crore in plant & machinery and creating a minimum of 1,000 direct jobs are entitled to a customized package resolved by the SIPB.
Special Category Entrepreneurs: SC, ST, EBC, women, differently-abled, war-widows, and third-gender entrepreneurs receive a 15% increase in interest subvention rate and limit (up to 15% of the approved project cost).
Timelines for clearances and approvals
- 1Stage-1 Clearance: Apply on swc2.bihar.gov.in; granted within 15 working days of complete application submission (max 30 days for SIPB approval).
- 2BIADA Land Allotment: Apply on biada1.bihar.gov.in; PCC resolves allotments in a time-bound manner.
- 3Financial Clearance: Apply on swc2.bihar.gov.in; granted within 15 working days of complete application (max 30 days for SIPB approval).
| Milestone Event / Limit | Stipulated Date / Duration |
|---|---|
| Last Date to Apply under BIIPP 2025 | 31 March 2026 |
| Project Implementation Milestone Deadline | 31 March 2027 |
| Stage-1 & Financial Clearance Guarantee | 15 working days (max 30 days for SIPB) |
| Customized Package Threshold | Investment > ₹2,000 Cr + 1,000 direct jobs |
| Recovery Interest on Violations | 18% per annum compounded interest |
Source: Bihar Industrial Investment Promotion Package (BIIPP), 2025, Department of Industries, Government of Bihar. In operation till 31 March 2026. This summary is for informational purposes only.