Bihar Industrial Investment Promotion Package (BIIPP), 2025
300%
Max SGST Reimbursement — Super Mega, Zone A
₹1
Token Land Rate for Qualifying Investments
14 Years
Longest Disbursal Period
31.03.2026
Application Cut-Off
Why the package exists
Notified vide Memo No. 3223 dated 26.08.2025 following Cabinet approval the same day, BIIPP 2025 is a calibrated fiscal package to sharpen Bihar's competitiveness. It takes effect from notification and remains in force until 31 March 2026. New units must apply on the Single Window Clearance portal (swc2.bihar.gov.in) by that date, with a minimum project cost of ₹50 lakh and the implementation milestone due by 31 March 2027.
Which policy a unit sits under matters before anything else. Units already registered and availing benefits under BIIPP 2016 are not eligible here. Units that applied under BIIPP 2016 but have not commenced commercial production and hold no Stage-1, Financial or production-date approval must re-apply afresh. Existing units that completed their BIIPP 2016 eligibility period can claim under the Expansion category, provided the expansion follows this Package's notification.
Zonal classification
| Zone | Districts |
|---|---|
| Zone A | Aurangabad, Arwal, Ariria, Banka, Bhagalpur, Bhojpur, Darbhanga, East Champaran, Gopalganj, Jamui, Jehanabad, Kaimur, Katihar, Khagaria, Kishanganj, Lakhisarai, Madhepura, Madhubani, Munger, Nawada, Nalanda, Purnia, Rohtas, Saharsa, Samastipur, Saran, Supaul, Sitamarhi, Sheikhpura, Shivhar, Siwan, West Champaran |
| Zone B | Begusarai, Buxar, Gaya, Muzaffarpur, Patna, Vaishali |
High-Priority sectors: Food Processing (₹5 crore or more in fixed assets and plant & machinery excluding land); Textile & Leather (minimum 50 direct employees); Media & Entertainment (₹5 crore plus 50 direct employees); Logistics (₹5 crore); IT, ITeS, ESDM and Global Capability Centres; Electric Vehicles; Pharmaceuticals and Medical Devices; Toy Manufacturing; Renewable and Green Energy including CBG and fuel-based Ethanol/Methanol. Negative list: narcotic drugs, alcoholic beverages, asbestos, and any industry with a negative environmental impact.
Three mutually exclusive options
The choice is one-time and irreversible. An eligible unit picks Option 1, 2 or 3 when submitting its incentive application after project commencement, and cannot change afterwards. Model all three against the project's cost, zone and expected SGST profile before filing.
Option 1 — Interest Subsidy plus Tax Incentives
| Category | Interest Subsidy | SGST Reimbursement |
|---|---|---|
| High-Priority | 10% for 5 years (12% for Micro & Small), max 50% of project cost, capped ₹40 crore | 100% for 5 years, max 100% of project cost |
| Priority | 10% for 5 years (12% for Micro & Small), max 30% of project cost, capped ₹20 crore | 80% for 5 years, max 100% of project cost |
| Non-Priority | 10% for 5 years (12% for Micro & Small), max 15% of project cost, capped ₹20 crore | 80% for 5 years, max 70% of project cost |
Interest subsidy applies to term loans from a scheduled commercial bank or RBI/SEBI-recognised financial institution, at 10% or the actual rate, whichever is lower. Micro and Small units additionally receive reimbursement of the CGTMSE fee.
Option 2 — Special SGST Package
| Category (Approved Project Cost) | Zone | Overall Cap | Annual Cap | Period |
|---|---|---|---|---|
| Large (₹50–200 crore) | Zone A | 150% | 25% | 10 years |
| Large (₹50–200 crore) | Zone B | 125% | 20% | 10 years |
| Mega (₹200–500 crore) | Zone A | 250% | 25% | 12 years |
| Mega (₹200–500 crore) | Zone B | 200% | 20% | 12 years |
| Super Mega (₹500 crore+) | Zone A | 300% | 25% | 14 years |
| Super Mega (₹500 crore+) | Zone B | 250% | 20% | 14 years |
Caps are expressed as a percentage of approved project cost and apply uniformly across High-Priority, Priority and Non-Priority units within each size and zone bracket. Reimbursement covers net tax payable after adjusting eligible SGST credit, and extends to IGST from the date the Package takes effect. Tax paid purely on trading turnover is excluded.
Option 3 — Capital Subsidy
| Category | Tier | Zone A | Zone B | Disbursal |
|---|---|---|---|---|
| Large (₹50–200 crore) | High-Priority | 30%, capped ₹40 crore | 25%, capped ₹30 crore | 10 years, 10 instalments |
| Large (₹50–200 crore) | Priority | 25%, capped ₹30 crore | 20%, capped ₹25 crore | 10 years, 10 instalments |
| Large (₹50–200 crore) | Non-Priority | 20%, capped ₹25 crore | 15%, capped ₹20 crore | 10 years, 10 instalments |
| Mega (₹200 crore+) | All tiers | 22%, capped ₹110 crore | 22%, capped ₹100 crore | 12 years, 12 instalments |
| Super Mega (₹500 crore+) | All tiers | 25%, no upper cap | 22%, no upper cap | 14 years, 14 instalments |
Only the first year's capital subsidy instalment is unconditional. From year two, the full instalment is payable only if the preceding year's production reached at least 75% of the previous year's production or 80% of installed capacity, whichever is higher — otherwise the instalment is reduced proportionately. Installed capacity is taken from the approved DPR; production volume from the average sale value declared in GST filings.
Employment, export, environment and other support
| Incentive | Quantum |
|---|---|
| Employment Generation | 100% reimbursement for 5 years of ESI and EPF contribution for Bihar-domiciled employees, up to ₹2,000 per employee per month — High-Priority and Priority units |
| Export Promotion | Under the Export Promotion Policy 2024 exporters get 1% of FOB value up to ₹20 lakh a year for 7 years; BIIPP 2025 doubles the annual cap to ₹40 lakh and extends eligibility to 14 years |
| Environmental Protection | 25% reimbursement on an Effluent Treatment Plant, Zero Liquid Discharge system or Sewage Treatment Plant, up to ₹1 crore |
| Renewable Energy Usage | 20% reimbursement of total cost up to ₹6 lakh for solar, wind, hydro, biomass or hybrid systems above 10 kW |
| Common Facility Centre | Case-by-case support in BIADA industrial areas for High-Priority sectors such as Textile & Leather and Food Processing |
| Patent Registration | 50% of filing, attorney and tracking cost — up to ₹2 lakh per domestic patent and ₹6 lakh per foreign patent |
| Quality Certification | 50% of cost up to ₹2 lakh per MSME unit for GMP, USFDA, ISO, ISI, BIS, FPO, Agmark, Ecomark or equivalent |
Skill Development Incentive, Stamp Duty and Registration Fee exemption, and Land Conversion Fee exemption continue as per BIIPP 2016. Textile & Leather units take the employment incentive under the Bihar Textile & Leather Policy 2022 instead, through the Dovetailing route — the BIIPP 2025 employment subsidy is then not payable in parallel.
BIADA allotment and special land concession
- •Land in all notified industrial areas is allotted on a 30-year lease, proportionately discounted, instead of the prevailing 90-year lease.
- •Units investing ₹100 crore or more and creating at least 1,000 direct jobs get up to 10 acres at a token rate of ₹1.
- •Anchor Industries — leading Fortune 500 or global and Indian listed companies — investing ₹200 crore or more get up to 10 acres at the same token rate.
- •Units investing over ₹1,000 crore get up to 25 acres at the token rate.
- •All other companies are eligible for land at 50% of BIADA's notified rate.
- •Service units eligible for BIADA land include IT/ITeS, multi- and super-specialty hospitals with 100+ beds, 4-star and 5-star hotels, NIRF top-100 medical or engineering colleges, and start-up co-working spaces. Applications go through the BIADA portal (biada1.bihar.gov.in).
The concessional land rates carry a construction condition that is easy to miss. They apply only where the investor meets all eligibility criteria and completes at least 25% of construction by 31 March 2027. Non-compliance means paying the full notified rate with no concession.
Designated sectoral parks: GCC, IT/ITeS and ESDM Park (Sikandarpur–Bihta, MMLP Fatuha, Bakhtiyarpur, Rajapakar); Pharma and Medical Devices Park (Amnaur, Rajapakar); Toy and Textile Park (Kumarbagh, Bela); Automobile/OEMC and Electronic City (IMC Gaya); Education and Medi City (Bakhtiyarpur, Simaria); Textile & Leather Park (Mahual, Muzaffarpur); Leather Tannery Cluster (Kishanganj); Mega Food Park (Muzaffarpur, Khagaria); Fin-Tech City (Patna).
Clearances, special categories and monitoring
- 1Stage-1 Clearance — apply via swc2.bihar.gov.in. Approval within 15 working days of a complete application, with the SIPB's overall decision timeline capped at 30 days.
- 2Financial Clearance — a separate application on the same portal, approved within 15 working days of a complete submission, again with a 30-day SIPB cap.
- 3Implementation is monitored by the State Investment Promotion Board, with quarterly reports placed before it.
- •Customised Incentive Package: projects investing over ₹2,000 crore in plant and machinery and creating over 1,000 direct jobs are entitled to a tailor-made package.
- •Special Category Package: for SC, ST, EBC, women, differently abled, war widows and third-gender entrepreneurs, the Interest Subsidy rate is enhanced by 15 percentage points over the actual term-loan rate, whichever is lower (Micro and Small units excluded from this enhancement), and the subsidy cap rises to 15% of approved project cost across all tiers.
- •Dovetailing with Central and State policies is permitted, but investors must declare the type and quantum of Central incentives received or receivable at the time of application. A unit approved under BIIPP 2025 cannot claim the same type of incentive under another policy simultaneously.
- •All matters of interpretation or dispute are decided by the Secretary, Principal Secretary or Additional Chief Secretary, Department of Industries — final and binding.
Source: Bihar Industrial Investment Promotion Package (BIIPP) 2025, Memo No. 3223 dated 26.08.2025 (No.-4Tech0/Niti-Vividh/03/2024), Department of Industries, Government of Bihar. Capital subsidy is computed on plant and machinery value stated in the approved DPR. Where the translated and English versions differ, the English version binds.