The government of Bihar unveiled its Textile and Leather Policy 2022 on June 8, with a slew of incentives designed to attract investment in these sectors.
These incentives cover various aspects such as capital infusion, patent registration, skill enhancement, job creation, and assistance with power and freight expenses.
Among the perks are a subsidy of up to 10% on loan interest, full reimbursement of State Goods and Services Tax (SGST), exemption from stamp duty and registration fees, and waivers for land conversion. Interested parties must submit their incentive applications by July 30, 2023.
Under this policy, there’s a 15% subsidy on plant and machinery costs, capped at INR 10 crore, along with an electricity subsidy of INR 2 per unit consumed.
Export-oriented businesses can avail themselves of a 30% transportation subsidy in addition to an annual freight subsidy of INR 10 lakhs for five years.
Moreover, companies can benefit from a 50% subsidy on patent registration, up to INR 10 lakhs. Individuals employed in these sectors stand to receive a monthly stipend of INR 5,000 for five years, while businesses can access a skills development grant of INR 20,000 per employee annually.
It’s worth noting that these incentives complement the existing Bihar Industrial Investment Promotion Policy, 2016, further enhancing the investment landscape in the state.
For a complete picture of the policy and the latest updates, you can refer to the official documents: