Bihar Tourism Policy, 2023
30%
Max Capital Subsidy, Projects up to ₹10 Cr
₹25 Crore
Max Subsidy, Projects above ₹50 Cr
80% SGST
Reimbursed up to 7 Years from COD
5 Years
Policy Operative Period
Why the policy exists
Bihar carries a rich religious, historical and cultural heritage — from the Mauryas, Guptas and Nandas to holy rivers, forests, waterfalls and wildlife. The policy aims to develop Bihar as a centre of spiritual, cultural and eco-tourism through sustainable and inclusive means, with focus on investment and livelihood creation. It runs for an initial 5 years until replaced by Government notification, applies across the State, and is processed under the Bihar Industrial Investment Promotion Act 2016.
Six goals drive the policy period: raising tourism's GSDP contribution to the national level of 6.8%; skilling roughly 1 lakh people and creating over 1 lakh jobs; infrastructure at Focus Tourism Destinations with 2,000 additional hospitality rooms and 50 wayside amenities; reaching the top 10 states for domestic and top 5 for foreign footfalls; organisational restructuring with annual tourism surveys; and Tourism Police at identified destinations with a Disaster and Crisis Management Plan.
Capital subsidy and interest subvention
| Project Category (Approved Project Cost) | Admissible Subsidy | Maximum Limit |
|---|---|---|
| Up to ₹10 crore | 30% | ₹3.00 Crore |
| Up to ₹50 crore | 25% | ₹10.00 Crore |
| Above ₹50 crore | 25% | ₹25.00 Crore |
The investor chooses one route. Capital Subsidy is reimbursed 50% on start of commercial operation, 25% on completion of 2 years and 25% on completion of 5 years of commercial operations. Interest Subvention is 10% or the actual term-loan rate, whichever is lower, reimbursed annually from COD for a maximum of 5 years.
Additional 5% subsidy — one of the two cases only
- •Major international tourist destinations: Gaya, Bodhgaya, Nalanda and Rajgir (municipal area plus a 5 km radius outside the boundary), and Valmiki Tiger Reserve (maximum 5 km radius outside the buffer zone).
- •Special Incentive Package: new tourism projects owned and managed with minimum 51% equity by SC, ST, EBC or BC candidates, differently abled persons, war widows, acid-attack victims, third-gender entrepreneurs or women entrepreneurs.
A change in shareholding of an SC/ST/EBC/BC, women, differently abled, war widow, acid-attack victim or third-gender promoted unit within 5 years of COD — where the new shareholders do not belong to the same category — makes the incentive availed liable to recovery with interest compounded annually at 18%. Separately, land cost is excluded from approved project cost for subsidy calculation, and land development cost is capped at 2.5% of approved project cost. Projects under this policy cannot also avail benefits under BIIPP 2016 or any other State scheme, though dovetailing with Central schemes is permitted with a corresponding deduction from approved project cost.
SGST, duties and employment reimbursements
| Incentive | Quantum |
|---|---|
| Land Conversion Charges | 100% reimbursement |
| Stamp Duty / Registration | One-time 100% reimbursement on lease, sale or transfer of land for the project |
| SGST Reimbursement | 80% of SGST, capped at 100% of approved project cost, for up to 7 years from COD |
| Electricity Duty | 100% reimbursement for 5 years from COD |
| Tourist Guide Employment | 5% of monthly remuneration reimbursed to the empanelled hotel, resort or tour operator, capped at ₹5,000 per guide per month for 2 years — Government-certified guides only |
| Green Certification | 50% of certification fee for IGBC, GRIHA, LEED or notified equivalent, up to ₹10 lakh |
| MICE Events | GST reimbursement up to 50% of event cost or ₹2 lakh per event, maximum 3 events per organiser per year, at DoT-recognised properties |
| Tour Operator Office Interest Subsidy | 50% of first-year interest on a scheduled commercial bank loan, capped at ₹10 lakh, for empanelled tour operators |
| Employer EPF/ESI Contribution | 100% reimbursement or ₹3,000 per employee per month, whichever is less, for 5 years — Bihar-domicile employees only |
| Differently Abled Employment | ₹1,500 per month per employee, capped at 5 employees per project — Bihar-domicile employees only |
Non-fiscal support includes investor facilitation via Single Window Clearance with a dedicated Project Management Unit, standardisation and ratings for service providers, Annual Excellence Awards, and marketing support at national and international events.
Minimum project cost by category
| Project Type | Minimum Cost (excluding land) |
|---|---|
| New hotels, resorts, heritage hotels — Patna, Gaya, Bodhgaya, Nalanda, Rajgir, Muzaffarpur, Bhagalpur (4-star+) | ₹10.00 Crore |
| New hotels and resorts — other district HQ towns (3-star+) | ₹7.50 Crore |
| New hotels and resorts — other towns (2-star+) | ₹5.00 Crore |
| Renovation or extension of existing hotels to 4-star+ | ₹2.50 Crore |
| Convention centre (MICE), theme park, amusement park, entertainment zone, golf course, wellness resort | ₹10.00 Crore |
| Adventure tourism, eco tourism, thematic restaurants | ₹5.00 Crore |
| Wayside amenities — new development | ₹1.50 Crore |
| Wayside amenities — upgradation | ₹75.00 Lakh |
| Fixed tented accommodation, camping, river or lake project, caravan tourism, high-end buses and vans, rural tourism, tourist village, farm stay | ₹1.00 Crore |
- •Eligible for subsidy: land development and registration charges, building construction, plant and machinery, project equipment, interior furnishing, electrical installation, furniture and fixtures, kitchen equipment, STP/ETP/ATP, generator and AC plant, sanitary fittings.
- •Not eligible: cost of land, working capital, goodwill, manpower cost, commissioning fees, royalty, pre-operative expenses, and secondhand plant, machinery, furniture or fixtures.
Clearance stages and competent authority
Applications route through the State SIPB portal for Stage 1 feasibility clearance — proposals up to ₹5 crore before the SIPB Secretariat chaired by the Department's administrative secretary, and above ₹5 crore before the State Investment Promotion Board. Stage 1 is required before commercial operation.
| Eligible Investment Size | Competent Authority for Financial Incentive Clearance |
|---|---|
| Up to ₹5 Crore | ACS / Principal Secretary / Secretary, Department of Tourism |
| ₹5 Cr – ₹15 Crore | Minister, Department of Tourism |
| ₹15 Cr – ₹30 Crore | Jointly, Minister (Tourism) and Minister (Finance) |
| Above ₹30 Crore | State Government |
Disbursement authority: up to ₹5 lakh, the Special Secretary, Department of Tourism; above ₹5 lakh, the ACS, Principal Secretary or Secretary. Source: Bihar Tourism Policy 2023 (as amended), Department of Tourism, Government of Bihar. The source document leaves the effective date as xx/xx/2023 — confirm the notified date with the Department before relying on the operative period. Policy interpretation is final and binding with the Department of Tourism, and the English version prevails over any translated version.