Bihar Semiconductor Policy 2026
Why the policy exists
The Bihar Semiconductor Policy 2026 is notified by the Department of Industries to develop a sustainable, innovation-driven semiconductor ecosystem in the State — promoting long-term economic growth, high-quality employment, and regional development, in line with 'Saat Nischay 3.0'.
Vision & Target Missions
Vision: 'To establish Bihar as the Eastern India Tech Hub by 2030, creating a globally competitive ecosystem for semiconductor design, fabrication, assembly, testing, and packaging.'
- •Investment Target: Secure committed investments of ₹25,000 Crores in the semiconductor sector.
- •Employment Target: Create 2,00,000+ direct and indirect jobs.
- •Capacity Target: Develop a skilled workforce of 50,000+ professionals.
- •Research Target: Establish a Semiconductor Research Center at IIT Patna.
What qualifies and under whose decision
- •Semiconductor Fab / Display Fab: Facilities fabricating wafers or display panels (LCD, OLED, AMOLED, etc.).
- •ATMP / OSAT: Assembly, Testing, Marking & Packaging of semiconductor die.
- •Compound Semiconductors: Facilities focusing on GaN, SiC, GaAs, etc.
- •Design Units: Units designing ICs and qualified under MeitY's DLI scheme.
- •Eligibility Condition: Open to any company/consortium/JV qualified under an ISM/MeitY scheme. Trading units are excluded. Promoters must not be default/blacklisted.
Incentive quantum for FAB, ATMP & OSAT units
A. Capital Subsidy
Semiconductor Fabs & Display Fabs: 60% of the GoI-approved assistance. Compound Semiconductors / Sensors / ATMP / OSAT: 60% of the capex support provided by GoI. Released pari passu with GoI support.
B. Land concessions
Token land of 1 acre at ₹1 per ₹100 crore of approved project cost via BIADA. Additional required land at 50% of the BIADA scheduled rate. 100% stamp duty exemption on lease/sale and 100% land conversion fee waiver.
C. Power & Water Subsidies
- •Power Tariff: Special power tariff of ₹5 per unit for 10 years from DOP; OR 100% CSS & wheeling charges reimbursement for Green Open Access.
- •Power Infrastructure: 50% capital subsidy on power infrastructure cost. Captive solar installations get 50% subsidy up to ₹50 crore.
- •Water: Subsidised raw water at ₹4 per cubic metre for 10 years. 50% capital subsidy on water treatment infrastructure up to ₹50 crore.
D. Interest, SGST & IP Incentives
- •Interest Subsidy: 5% per annum up to ₹25 Cr/year for 7 years on term loans.
- •Net SGST Reimbursement: 100% reimbursement of admitted SGST deposited to the State for 10 years, capped at 100% of approved project cost.
- •Patent Filing: 75% reimbursement of filing costs up to ₹10 Lakh per Indian patent and ₹20 Lakh per international patent.
- •Skill Development: 100% reimbursement of training costs up to ₹20,000 per employee for the first 1,000 Bihar-domiciled employees.
Incentives for design houses and electronic component units
Semiconductor Design Units: Minimum FCI of ₹5 Cr. Additional 20% of eligible MeitY DLI expenditure, capped at ₹15 Crore (+5% up to ₹5 Cr if >70% workforce is Bihar domiciled). Includes 50% lease rental subsidy for 5 years (cap ₹55/sqft/month) and 25% power tariff subsidy.
Electronic Component Manufacturing (ECMS): Additional 20% of GoI ECMS incentive (+5% if >70% workforce is Bihar domiciled). Includes token land allotment and stamp duty waivers.
Application and monitoring
- 1Stage-1 Clearance: Application on swc2.bihar.gov.in (15 working days; max 30 days for SIPB).
- 2Financial Clearance: Applications for financial clearance resolved on the same portal.
- 3Date of Production DOP Certificate: Inform BSM / DoI within 15 days of commencing production for verification and certification.
- 4Disbursement: Approved by the ACS/Secretary, Department of Industries, Bihar.