State Profile of Bihar

• Bihar Industrial Investment Promotion Policy (2016)

• Bihar Agri Investment Promotion Policy 2020

• Bihar Horticulture Development Society (BHDS), Agriculture Department, Government of Bihar will be the nodal agency for implementation and monitoring of this policy in the state.

• Single Window Clearance System http://udyog.bihar.gov.in/Single-Window-Clearance.aspx

• All new units shall be eligible for 100% reimbursement of the electricity duty on power including captive power consumed by the same unit or exported to the BSPHCL from the date of commencement of commercial production for a period of 5 years subject to the overall limit defined above. Electricity duty exemption will not be available on captive power exported to entities other than BSPHCL.

Bihar Industrial Investment Promotion Policy (2016)

• Share of capital subsidy to the eligible investors will be @15% of the eligible project cost to individual investors/ partnership/companies/LLP and @25% to Farmer Producer Companies (FPCs).
• Scheduled Castes, Scheduled Tribes and Extremely Backward Classes (EBC) investors, will receive additional 5% capital subsidy and Women entrepreneurs, acid attack victims, war widows, differently abled and third gender investors can avail 2% additional capital subsidy.
• The Capital subsidy support shall be entirely credit linked and the term loan from the Bank/Financial Institution should not be less than 20% of the project cost.
• Any unit making an investment of INR 25 lakhs or more OR providing employment to 25 workers/persons will be eligible to apply under this policy. These conditions shall not be applicable for units sponsored under State Government schemes. Proposals which were already approved by SIPB prior to the date of this notification shall not be affected by these conditions.
• Capital subsidy under the said policy is allowed for expansion/modernization of existing projects in the identified sectors, only if the existing capacity of the said project is increased by at least 25% by way of such modernization or expansion or diversification.

Bihar Agri Investment Promotion Policy 2020

• For individual investors, Partnership firms LLP, companies - 15% of the project cost (project cost – min. Rs. 0.25 cr. and maximum of Rs. 5 cr.)
• For Farmer Producer Companies (FPCs) -25% of the project cost (project cost – min. Rs. 0.25 cr. And maximum of Rs. 5 cr.)
• Dovetailing of incentives with the State Government policy and schemes would be allowed under this policy. It would be done in congruence to the provisions laid out in BIIP 2016 which has been extended till 2025. Investors shall have to submit declaration on not having obtained or applied for capital subsidy for the same component / purpose / activity from any other Ministry or Department of the Government of India or State Government or their agencies.

Interest subvention

• State shall extend “Interest Subvention” to the eligible units on the term loan availed by the unit from a bank/ financial institution registered by RBI/SEBI.
• Rate of interest for interest subvention will be 10% or actual rate of interest on term loan, whichever is lower.
• The overall limit of this subvention for high priority sector will be 50% of the approved project cost. The upper limit of this subvention shall be Rs 20 crore.

Private Industrial Park

Under this policy, the Government of Bihar would provide incentives to the promoters of private industrial parks.

• A private industrial park would be eligible for an interest subvention at the rate of 10% or actual rate of interest on term loan, whichever is lower, to the extent of 35% of the approved project cost subject to a limit of Rs. 50 crore

• State shall extend Interest Subvention. to all the eligible units on the term loan availed by the unit from a scheduled nationalized bank or financial institution approved by RBI/SEBI.
• Rate of interest for interest subvention will be 10% or actual rate of interest on term loan, whichever is lower. For micro and small units, there shall an interest subvention of 12%.

Tax related incentive

• All new units will be entitled to avail 100% reimbursement against the admitted SGST deposited in the account of the state government (excluding strictly any tax paid by them arising out of a purely trading business), for a period of 5 years from the date of commencement of commercial production.
• The SGST reimbursement shall be applicable only to the net tax payable, after adjustment of input tax credit against the output tax liability.
• This shall have a maximum limit of 100% of the approved project cost.

Reimbursement Stamp Duty/ Registration

• No stamp duty to be paid in respect of land allotted by the government to IDA/ BIADA
• 100% exemption of stamp duty/registration fees levied on lease/ sale /transfer of industrial land/shed as also those outside the jurisdiction of Industrial Area Development Authority would be available to all the new units. This exemption of stamp duty and registration fees will be granted only for the first time and will not be applicable in subsequent stages of lease/sale/transfer.

Not Available

Land Conversion Fees

• 100% exemption of "land conversion fees"/ "change in land use" fees being levied for conversion of agricultural land.

Skill Development

• The State Government shall provide skill development subsidy of Rs 20,000 per employee/ Bihar Skill Development Mission (BSDM) rates whichever is lower
• This incentive will be applicable for training of employees/ staffs who are domicile of Bihar
• All the eligible unit will have to employ the trained core employee/ staff for a period of at least 1 year