Bihar IT (Information Technology) Policy 2024
Why the policy exists
The IT sector is recognised as a robust medium for growth and development worldwide. To promote maximum use of IT for development and its multiplier effect on the economy, the Government of Bihar formulated the Bihar IT Policy 2024 as a blueprint for the future development of the IT & Electronics sector in the State by offering multiple incentives.
Vision & Objectives
Vision: To develop the IT / ITeS and ESDM industry of the State for inclusive socio-economic growth and gainful employment generation, and to emerge as the next investment destination for IT / ITeS companies in the country.
- •Promote Bihar as one of the leading investment destinations for IT / ITeS and ESDM companies.
- •Develop a sector-focused, state-of-the-art infrastructure ecosystem.
- •Create opportunities for gainful employment of the youth and develop a sustainable skill ecosystem.
- •Build a strong eco-system for nurturing innovation in the State and empower Startups.
What the policy will and will not incentivise
| IT / ITeS Focus Areas | ESDM Focus Areas |
|---|---|
| IT Products, Software & Services | Chip Manufacturing & Design |
| Knowledge Process Outsourcing (KPO) | PC / Peripherals / Office Equipment |
| Call Centres (BPOs) | Semiconductors |
| Software Development Centres | Server & Storage Devices |
| Digital Content Development | Communication & Networking Devices |
| Data Centres, Big Data & Analytics | Automotive & Medical Electronics |
| PC, Console & Mobile Gaming | Electronic Manufacturing Services (EMS) |
| Animation & Visual Effects (VFX) | Drone Manufacturing & E-waste Recycling |
Negative List (Ineligible): Business Development, Sales Office, Common Service Centers, Training / Exam centers, and Cyber cafes.
Who qualifies and on what conditions
| Unit Category | Technical Eligibility & Conditions |
|---|---|
| New Units | IT / ITeS / ESDM units having GST registration of Bihar post notification of this policy. |
| Existing Units (Expansion) | Minimum expansion over and above 50% of existing manpower, subject to minimum 25 fresh direct employment, fulfilling other criteria. |
Employment & CTC Definitions
Employment must be for a minimum continuous period of 6 months, determined based on the Average Annual direct employment in the EPF register.
- •IT / ITeS: Minimum qualification BE / BTech / MCA / MBA / CA or equivalent; Minimum CTC ₹2.40 lakh p.a.
- •ESDM: Minimum qualification ITI / Diploma / BE / BTech / MCA / MBA / CA or equivalent; Minimum CTC ₹1.80 lakh p.a.
- •Turnover Threshold: Min. INR 20 lakh per employee p.a. for IT & ITeS, and INR 50 lakh for ESDM.
- •Domicile Condition: Min. 25 direct jobs must be generated, with at least 50% having permanent domicile of Bihar. At least 60% of employees must be stationed in Bihar (self-declaration & biometric records required).
Additional Incentive Loading
Entrepreneurs from SC/ST/BC/EBC/Women/Divyangjan/War Widows/Third Gender receive an additional +5% loading (min. 51% shareholding and Director position required). Units established outside Patna and Danapur Municipal area receive +10% loading.
Subsidy quantum and ceilings
A. Capital Investment Subsidy (Option A)
- •Eligibility: Minimum Fixed Capital Investment (FCI) of INR 5 Crore, bank-appraised.
- •Rate: One-time 30% of FCI incurred (includes land, building construction, plant & machinery, stamp duty).
- •Ceiling: Maximum INR 30 Crore.
- •Land Cost Cap: Land cost shall not exceed 20% of the total proposed investment excluding land.
- •Disbursement: Reimbursed in 5 equal annual instalments post commercial production/operation.
B. Interest Subvention Subsidy (Option B)
Interest subsidy of 10% or the actual rate of interest on the term loan, whichever is lower, capped at 50% of the approved project cost or INR 40 Crore, whichever is lower, for 5 years. (Note: Capital Investment Subsidy and Interest Subvention are mutually exclusive).
C. Lease Rental Subsidy
50% of lease rental paid for 5 years for office space in Bihar, capped at 100 sqft per employee. The lease rate limit starts at ₹50/sqft/month in FY 2023-24, increasing by ₹2.5 every year (up to ₹62.5 in FY 2028-29).
D. Power & Employment Subsidies
Power Tariff: Annual reimbursement of 25% of the energy bill (fixed + energy charges + electricity duty) for 5 years.
Employment Subsidy: 100% reimbursement of employer's EPF and ESI contributions, capped at INR 5,000 per employee per month, for 5 years.
E. Mega IT/ITeS/ESDM Units
Investments above INR 100 Crore or generating min. 1,000 direct jobs on payroll qualify for tailor-made incentive packages considered by the Government on a case-to-case basis.
Restrictions and statutory compliance requirements
- •No State-level double-dipping: Units availing benefits under this policy cannot claim incentives for the same investment under any other State policy/scheme.
- •Disbursement is on a yearly basis, applicable after commercial operation and up to 5 years.
- •Dovetailing with Central Government schemes is fully permitted.
- •Exclusions: GST paid by the unit and any penalties/late fees are excluded when calculating incentives.
Stage-1 & Financial clearances
- 1Stage-1 Clearance: Apply on swc2.bihar.gov.in. Proposals up to ₹5 Cr decided by DIT Secretary; proposals above ₹5 Cr by the SIPB (15 working days timeline).
- 2Financial Incentive Clearance: Submit a fresh application on the portal before commercial operation to determine and recommend the incentive quantum.
- 3DIT Verification: Notify DIT within 15 days of commencing commercial operations; DIT verifies and issues the DOP certificate.
- 4Disbursement: Approved annually by the ACS / Principal Secretary / Secretary, DIT, Govt. of Bihar.