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Bihar Tourism Policy 2023

Up to 30%
Capital Subsidy on Approved Project Cost
₹25.00 Cr
Maximum Subsidy Limit (Projects > ₹50 Cr)
+5%
Additional Subsidy (FTD / Special Category)
80% SGST
Reimbursed for up to 7 Years from COD
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Vision & Objectives

Why the policy exists

The Bihar Tourism Policy 2023 is notified to develop tourism in the State through a joint and collaborative approach — building tourism infrastructure, enhancing connectivity to tourist sites, and giving a big push to skilled resources, income and employment generation. The vision is to develop Bihar as a centre of spiritual, cultural and eco-tourism through sustainable and inclusive means, with a focus on investment and livelihood creation.

Mission — positioning Brand Bihar as a world-class destination

  • Development of world-class tourism infrastructure with efficient participation of all stakeholders.
  • Development of tourism products offering the greatest value to tourists.
  • Developing a pool of talented workforce through various skilling initiatives.
  • Emphasising the highest standards of tourist safety and comfort.
  • Implementing tourist-centric, best-in-class, technology-driven initiatives.

Six Goals of the Policy

  • Economic growth — raise tourism's contribution to GSDP to the national level (6.8%).
  • Skilling & jobs — skill/train approx. 1 lakh people and create over 1 lakh jobs during the policy period.
  • Tourism infrastructure — develop Focus Tourism Destinations, add 2,000 hospitality rooms, develop/upgrade 50 wayside amenities, single-window clearance, transport and land banks.
  • Augmenting footfalls — make Bihar a top-10 state for domestic footfalls and top-5 for foreign footfalls; position it as a preferred MICE destination.
  • Organizational restructuring & data — restructure the tourism cadre, run annual tourism surveys, accredit service providers.
  • Safety & security — Tourism Police at Focus Tourist Destinations and a disaster & crisis management plan.

Focus Tourist Destinations (FTDs) are identified under seven themes — Religious & Spiritual, Heritage & Cultural, Eco, Adventure, MICE, Weekend and Rural Tourism — with priority development and additional incentives at major international destinations: Gaya, Bodhgaya, Nalanda, Rajgir, Vaishali and Valmiki Tiger Reserve.

Eligible Projects & Definitions

What qualifies, and under whose conditions

Key Definitions (Guidelines 2024)

  • Approved Project Cost (APC) — the project cost approved by the Department of Tourism, based only on eligible cost components (land cost excluded). Must be equal to or more than the Minimum Project Cost for the category.
  • New Tourism Project — an eligible project approved and established during the operative period of the policy.
  • Expansion — an existing project redeveloped/upgraded/renovated to meet an eligible category (APC of expansion generally ≥ 50% of the Minimum Project Cost for a new project).
  • Registered Office — the promoter must have a registered office in Bihar (GST or MSME Udyam certificate).

Eligible Tourism Projects — 18 Categories & Minimum Project Cost (excluding land)

#Project CategoryMin. Project Cost
1ANew Hotels / Resorts / Heritage Hotels — Major destinations (min. 4-star & above)₹10.00 Crore
1BNew Hotels / Resorts / Heritage Hotels — Other District HQ Towns (min. 3-star & above)₹7.50 Crore
1CNew Hotels / Resorts / Heritage Hotels — Other Towns & Places (min. 2-star & above)₹5.00 Crore
2Renovation / Modification / Extension of existing Hotels & Resorts to 4-star & above₹2.50 Crore
3Convention Center (MICE)₹10.00 Crore
4Wayside Amenities — New development₹1.50 Crore
5Wayside Amenities — Upgradation of existing facilities₹75.00 Lakh
6Fixed Tented Accommodation / Camping sites₹1.00 Crore
7Adventure Tourism Project₹5.00 Crore
8Eco Tourism Project₹5.00 Crore
9Wellness Tourism Resort / Centers₹10.00 Crore
10River / Reservoir / Lake based Tourism Project₹1.00 Crore
11Theme Park₹10.00 Crore
12Amusement Park₹10.00 Crore
13Entertainment Zones₹10.00 Crore
14Golf Course Units₹10.00 Crore
15Caravan Tourism₹1.00 Crore
16High-end Tourist Buses and Vans₹1.00 Crore
17Thematic / Concept-based Restaurants (Fly-dining, Flotels / Floating)₹5.00 Crore
18Rural Tourism Project / Tourist Village / Farm Stay₹1.00 Crore
Capital Subsidy / Interest Subvention

Subsidy quantum — exact figures

A. Capital Subsidy / Interest Subvention

Project category (by Approved Project Cost)Admissible subsidy (% of APC)Maximum limit
Approved Project Cost up to ₹10 crore30%₹3.00 Crore
Approved Project Cost up to ₹50 crore25%₹10.00 Crore
Approved Project Cost above ₹50 crore25%₹25.00 Crore

Land cost is excluded from the total project cost for subsidy calculation, and land development cost is capped at 2.5% of the final Approved Project Cost.

B. Two Subsidy Routes (choose one)

  • Route 1 — Capital Subsidy: Reimbursed in instalments: 50% on start of commercial operation (COD), 25% on completion of two years of operations, 25% on completion of five years of operations.
  • Route 2 — Interest Subvention: Rate of interest 10% or the actual rate of interest on the term loan, whichever is lower; reimbursed annually from COD, for a maximum of 5 years from COD.

C. Additional 5% Subsidy

An additional 5% Capital Subsidy OR Interest Subvention — over and above the maximum limit for all project categories — is available in only one of the following two cases (not both):

Other & Non-Fiscal Incentives

Beyond the capital subsidy

IncentiveQuantum
Land Conversion Charges100% reimbursement on land conversion charges.
Stamp Duty / RegistrationOne-time 100% reimbursement of Stamp Duty and registration fee on lease / sale / transfer of land.
Reimbursement of SGST80% of SGST, subject to a maximum of 100% of the approved project cost, for up to 7 years from COD.
Reimbursement of Electricity Duty100% reimbursement of electricity duty paid, for 5 years from COD (new tourism units).
Tourist Guide Employment5% of the monthly remuneration paid to a tourist guide, up to ₹5,000 per guide per month, for 2 years.
Green Certification50% of the certification fee, up to ₹10 lakh, for LEED/IGBC/GRIHA certificates.
MICE EventsGST reimbursement up to 50% of the event cost or ₹2 lakh per event, limited to 3 events per organizer per year.
Tour Operators50% of the total interest paid in the first year of the loan, capped at ₹10 lakh, on a loan for office setup.
Employer EPF / ESI100% of employer contribution to ESI and EPF or ₹3,000 per employee, for 5 years (Bihar-domicile).
Employment of Differently-Abled₹1,500 per month per employee, up to a maximum of 5 employees per project.