AKHB Summary · Bihar investment

Invest in Bihar.
Understand the policy route.

Compare the principal policy routes for manufacturing, premises, textiles, technology, hospitality and new enterprises. Match your activity, location, investment and employment plan before estimating support.

9 pages · Edition 4 October 2026 · Official sources & disclosures included

New analysis · 11 October 2026

Unlocking Bihar’s Ease of Doing Business Potential

What the 2026 Act and the 9 October notifications mean for investors, MSMEs and professional advisers. Understand duplicate-licence relief, in-principle approvals and the safeguards that remain.

The investment perspective

Choose the route that fits your project.

Selected principal policies. Headline ceilings apply only to eligible expenditure and approved claims; they are not automatic entitlements. Application windows and later amendments must be checked before reliance.

The policies, explained.

01 · Eligible industrial investment projects

Bihar Industrial Investment Promotion Package, 2025

Up to 30%Capital subsidy route
Up to 300%Net SGST route / 14 years
Up to ₹40 croreInterest route + SGST

The government brochure presents three alternative routes: capital subsidy up to 30% of approved project cost; net SGST reimbursement up to 300% of approved project cost over 14 years; or interest support capped at ₹40 crore with SGST reimbursement up to 100% of approved project cost.

Other headline benefits include export support up to ₹40 lakh a year for 14 years, skills support up to ₹20,000 per worker, environmental support at 25% capped at ₹1 crore, and renewable-energy support at 20% capped at ₹1 crore.

AKHB review point

Compare eligible cost, sector and size before choosing a route; do not add the alternatives together. These are headline maxima, not uniform entitlements. The department lists a May 2026 amendment and an extension to 31 December 2026 or commencement of the new 2026 policy, whichever is earlier.

Official sources: Official package brochure · Amendment & extension notices

Comment on this policy

02 · Industrial premises

BIADA Land Allotment & Management Policy (Revised), 2026

2% / 5%EMD by enterprise size
9%Simple annual interest on balance
18–36 monthsOperation deadlines by size

Apply online for industrial plots, factory sheds and plug-and-play premises. The policy prescribes an earnest money deposit of 2% of land lease premium for micro/small units and 5% for medium/large units; Bihar-registered startups may receive an exemption.

Allotment can be at prevailing rates for a single eligible applicant, with bidding for competing applicants and compulsory auction for prime plots. Leases may be 30, 60 or 90 years. Balance premium paid in instalments attracts 9% simple annual interest; project operation deadlines from possession are 18, 24, 30 and 36 months for micro, small, medium and large units respectively.

AKHB review point

Check site availability, rates, zoning, payment and implementation terms. Identified post-allotment matters can qualify for deemed approval after 30 working days on complete applications; this does not cover fresh land allotment or override statutory approvals.

Official sources: Revised policy · §§12, 15, 17, 19, 24 & 26 · BIADA land, shed & application portal

Comment on this policy

03 · Apparel, textiles, footwear & leather

Bihar Textile & Leather Policy, 2022

15%Plant & machinery / ₹10 crore cap
₹2 per unitCategory A power support
30%Export freight / ₹10 lakh annual cap

Eligible Category A and B units can receive 15% of plant and machinery cost, capped at ₹10 crore, in five equal annual instalments. Export freight reimbursement is 30% for the first five years, capped at ₹10 lakh a year.

For Category A, power support is ₹2 per unit for five years, with annual caps from ₹2.5 lakh to ₹80 lakh by size. For Category A only, employment support is 300% of eligible ESI and EPF payments, capped at ₹3,000, ₹4,000 or ₹5,000 per employee per month by skill category, for five years.

AKHB review point

Category A includes apparel and footwear; Category B includes spinning and textile/leather processing. Employment support requires at least 75% Bihar-domiciled direct employees, numbering at least 100, with prescribed retention. Check amendments and overlap before combining incentives.

Official sources: Official policy · §§12.2–12.3 · Policy & amendment catalogue

Comment on this policy

04 · IT, IT-enabled services & electronics

Bihar IT Policy, 2024

25%Annual energy bill / five years
₹5,000Monthly payroll-support cap
100%Eligible employer EPF / ESI

Eligible IT/ITeS/ESDM units can receive 25% reimbursement of the annual energy bill for five years. The defined bill includes fixed charges, energy charges and electricity duty, excluding discounts and late-payment charges.

The policy provides 100% reimbursement of employer EPF and ESI contributions, where applicable, capped at ₹5,000 per employee per month for five years. Projects investing above ₹100 crore or employing at least 1,000 people directly on payroll in Bihar may be considered for a customised package.

AKHB review point

Match your activity to the eligible categories and follow SIPB project clearance and claim procedures. A mega-project package requires case-by-case government consideration.

Official sources: Official IT policy · §§7.3–7.5 & 8.2

Comment on this policy

05 · Hospitality & eligible tourism projects

Bihar Tourism Policy, 2023

30% / ₹3 croreApproved cost up to ₹10 crore
25% / ₹10 croreAbove ₹10 crore to ₹50 crore
25% / ₹25 croreApproved cost above ₹50 crore

The amended guidelines set subsidy ceilings by approved project cost:

  • Up to ₹10 crore: 30%, capped at ₹3 crore.
  • Above ₹10 crore and up to ₹50 crore: 25%, capped at ₹10 crore.
  • Above ₹50 crore: 25%, capped at ₹25 crore.

Choose capital subsidy or interest support. Capital subsidy is released 50% at commercial operation, 25% after two years and 25% after five years. Interest support is the lower of 10% or actual term-loan interest for up to five years, within the same project-based ceilings.

AKHB review point

Eligible tourism categories have minimum investment and facility requirements. New hotel minimum cost and star rating depend on location. Confirm your category before developing or acquiring property.

Official sources: Amended official guidelines · §§2 & 7.3(A)

Comment on this policy

06 · Innovative early-stage ventures

Bihar Startup Policy, 2022

Up to ₹10 lakhAssessed seed funding
0% interestRepayable loan
10 yearsLoan repayment horizon

Eligible startups can receive seed funding up to ₹10 lakh as an interest-free loan for ten years. Although called a “Seed Grant” in the policy, it is repayable funding. The amount depends on assessment; releases are linked to milestones and performance.

Funding can support idea validation, prototypes, market research and initial business activities. The policy also provides incubation, shared infrastructure, advisory services and access to investors.

AKHB review point

Obtain the required startup certification and prepare your business case, milestones and utilisation records. Ordinary business incorporation alone does not establish eligibility for assessed startup funding.

Official sources: Official policy · §§12.3–12.5 · Startup Bihar

Comment on this policy

07 · Small enterprise creation

Mukhyamantri Udyami Yojana

Up to ₹10 lakhSupported project cost
50% subsidyMaximum ₹5 lakh
50% loanMaximum ₹5 lakh

Selected eligible beneficiaries can receive support for project cost up to ₹10 lakh: 50% as subsidy, capped at ₹5 lakh, and 50% as a loan, capped at ₹5 lakh. The official overview describes the loan as interest-free, with a 1% annual interest exception under the Yuva Udyami variant.

The route supports small enterprise creation in approved activities, including food processing and manufacturing.

AKHB review point

Applicant category, eligibility, activity, selection and the notified application window matter. Check the relevant variant and current notices; applications are not necessarily open throughout the year.

Official sources: Official scheme overview · Application windows & notices

Comment on this policy

From policy to project

Your investment roadmap

  1. Define the project

    Record the activity, location, investment, funding and employment plan.

  2. Confirm the route

    Check eligible activity, current window, category, alternatives and overlap restrictions.

  3. Model the cash flow

    Separate eligible cost from total spending. Budget for the time between expenditure and reimbursement.

  4. Build the evidence

    Organise approvals, invoices, loan, payroll and tax records before preparing the claim.

Disclosures

AI disclosure

This is an AI-assisted AKHB editorial summary prepared from the official sources identified here. It may contain errors or omissions and does not constitute project-specific professional advice.

Policy and reliance disclaimer

The notified policy, amendments, implementation guidelines and sanction terms prevail over this summary. Incentives depend on eligibility, approved costs, ceilings, compliance and departmental assessment. No approval, subsidy or return is guaranteed. Obtain current project-specific verification before committing capital or submitting a claim.

Independence and scope

AKHB & Associates is not a government authority and this brochure is not government endorsement. The selection is not an exhaustive catalogue of Bihar schemes. Contact care@akhb.ai for a review or correction.

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