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Bihar Industrial Policy 2016

The Bihar Industrial Investment Promotion Policy, 2016, was launched by the Government of Bihar to transform the state into a more attractive investment destination.

Here’s a breakdown of its key points –

Vision & Mission

  • Establish Bihar as a leading destination for investment.
  • Maximize employment generation and achieve balanced regional development


  • Develop strong support infrastructure.
  • Prioritize key sectors with a focus on advanced technology and skill development.
  • Offer a structured package of financial assistance to industries.
  • Promote balanced development by extending benefits across all areas of the state.
  • Uplift socially disadvantaged groups and women entrepreneurs with special incentives.

Target Sectors

The policy focuses on industries that can:

  • Add significant value to Bihar’s natural resources.
  • Generate revenue and create employment opportunities.

Here are some of the priority sectors:

  • Food Processing
  • Tourism
  • Small Machine Manufacturing
  • IT & ITeS (Information Technology & Information Technology Enabled Services)
  • Electrical & Electronic Hardware Manufacturing
  • Textiles
  • Plastics & Rubber
  • Renewable Energy
  • Leather Sector
  • Technical Education

Incentives Offered

The policy offers a range of incentives to attract investors, including:

  • Land Allotment & Fee Waivers: Concessions on land conversion fees, stamp duty, and registration fees for setting up units in designated industrial areas.
  • Capital Investment Subsidy: Partial reimbursement of capital investment for certain sectors and project sizes.
  • Interest Subsidy: Subsidy on term loan interest for new units.
  • Power Tariff Subsidy: Concession on electricity tariffs for some industries.
  • Skill Development Subsidy: Reimbursement of employer contributions to social security schemes for employees from Bihar.
  • Other Incentives: Tax breaks, market access support, and help with regulatory clearances.

High Priority Sectors

The policy identifies a sub-category of “High Priority Sectors” that receive additional benefits, such as even higher capital investment subsidies and longer durations for availing certain incentives.

These sectors include:

  • Information Technology (IT) & ITeS
  • Electronic System Design & Manufacturing (ESDM)
  • Food Processing
  • Textiles & Leather

For a complete picture of the policy and the latest updates, you can refer to the official documents:

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