Highlights of Bihar New Industrial Policy-2011-16

Bihar continues Recently the Bihar Government announced its industrial policy, a significantly updated version to face the challenge of attracting investors from outside as well as inspiring its own entrepreneurial talent. The new industrial policy is said to be based on a close analysis of the policies of some other states like Gujarat, Orissa, Chhattisgarh, Himachal Pradesh and Uttarakhand with a view to attract investment in all categories, especially  small and medium industries.

Main Highlights of the New Industrial Policy 2011-16:

1.     The policy identified nine “thrust areas” — food processing, agro-based industries, tourism, super specialty hospitals, IT, technical and high education, electronics, hardware and non-conventional sources of energy.

2.      Land acquisition – the government assures it would try its best to make land available to the entrepreneurs.

3.      Though not part of the policy statement, the state has made available Rs 1,500 crore to the authorities concerned for strengthening the land bank.

4.      The new policy provides for a subsidy grant of 50 per cent for setting up captive power plants. The amount of grant/subsidy would go up to 60 per cent if any unit decides to set up non-conventional sources of energy for captive use.

5.      Entrepreneurs would not have to pay any stamp duty for land registration when setting up a new industrial unit or carrying out expansion to existing units.

6.      The policy will provide a capital subsidy of about Rs 5 crore to those making less than Rs 500 crore of investments whereas Rs 30 crore would be given as capital subsidy to industrial units that invest Rs 500 crore or above.

7.      According to the scheme if any industrial unit follows government reservation policy, it would get 10 per cent additional funds. But this is not binding on them.

8.      The government would provide special incentive to entrepreneurs from Scheduled Castes or Scheduled Tribes. Women and the disabled would also get similar benefits. For these categories, 100 per cent VAT would be reimbursed if their turnover crosses Rs 30 lakh per annum.

9.      To promote quality products and expansion, the policy would allow incentives for the preparation of detailed project reports (DPR), ISO certification and carbon credits.

10.  The government would also try to promote quality and reimburse 75 per cent of the fees involved in getting quality certifications.

11.  The new policy would exempt new units from luxury tax and reimburse 80 per cent of the value-added tax (VAT) deposited by a fresh unit for a period of 10 years with a cap of 300 per cent of the capital invested in setting up the unit.

12.  According to the policy, if a unit appoints 100 persons in a given fiscal on the basis of the government’s reservation policy, the entire employee pension fund (EPF) contribution borne by the company for that year would be fully reimbursed

  • Dear sir,
    please tell me that what is the support and survices from Goverment to set up a medium industries of Mentha oil or Lemon grass oil.



    let me know the process of land acuisition in pirpainti power projects…
    there r some following qury regarding projets
    1.what is the rate of land being acquired by bihar govt.
    2.is there any employment opportunity
    3.what is the process of land acquiring by govt.
    4.how the govt. will take the land from farmers

    thnking u..

  • Dear Sir,

    We have setting up a SSI unit in Patna for manufacturing of housekeeping chemicals like, Glass cleaner, Toilet cleaner, floor cleaner, liquid soap,and some industrial cleaning chemicalmall peoduct made by bio-degreadeble based raw materials

    Kindly guide us what benefit(s) we can avail from govt side on purchase of raw material, VAT & any other concessions & subsidies for this nature of business

    Rahul Roshan

    • Biharprabha Admin

      Dear Roshan
      U can download Bihar Industrial policy from our site and see what incentives u can get

  • Dear Sir,

    We are pleased to introduce ourselves as a Distributor of ‘TATA’ Pipes for the past 28 years for the State of Bihar. TATA GI/ MS Black Pipes are not only in best in the quality but economically priced also. Hence this is the right choice for the Projects being Commissioned/ Supported by you.

    2. You would get following advantages for buying TATA Pipes from us :

    a) Genuine Tata Pipes.
    b)Lowest Price
    c) FOR Deliveries for 9 tons & above.
    d) Quick Supplies.
    e) Free consultancy by Engineers/ Architects of TATA
    Steel, if required.

    3.Enclosed please find Recommended Consumer Price List as on date as well as Special Prices being charged for you. Our payment terms are 100% advance & would be FOR destination anywhere in Bihar. Please note that VAT has increased from 4% to 5% recently but we have NOT increased your special rate by 1%.

    4Looking forward for your valued order.

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    Yours sincerely,


  • shyam saraogi

    please tell us the benefit, provided by bihar gov. if the multiplex including 2 screen cinema with children play park is being in built.
    location bagaha , in area of 0-5-0
    pls send us details through mail

    • Biharprabha Admin

      saraogi jee
      You can download Bihar Industrial Policy from our website & see the things for yourself. This is voluntary service and we do not entertain such request.You can otherwise contact BiharPrabha Consultancy Service


  • Shruti Agrawal


    We plan to set up a pp woven sacks plant in Bihar.Woven sacks are the best and most cost effective packaging solutions for various industries like cement,fertilizers,sugar,chemicals,food grains etc.These bags are 100% recyclable and reusbale having high tensile strength.

    Kindly guide us what benefits we can avail from government side while setting up plant,and also are we eligible to avail the incentives provided by the government.

    Shruti Agrawal

  • Dear Sir,

  • Dear Sir,
    I have tinny scale Packaging industry (as : Cartoon manufacturing and small card board, corrugated Box) I am new entrepreneur. But I have faced somthing problem in working due to small land then I want to know what is the benifit of govt scheme for land. sir i want to know about details my Mobile No. : 09334129904

  • Ankit

    Dear Sir,

    Please suggest whether setting up RO drinking water plants is eligible for the incentives?

    The policy excludes distilled water manufacturing units, kindly throw light.



  • chandan kuamr

    i am chandan kumar i want to open my travel agency in bihar may i give information how much subsidy i can get to bihar government.
    chandan kumar

  • Abhinav Agrawal

    i want to know the list of the indrustries which are getting exemtion from the mmc. like masala was non elegible from mmc in 2006 indrustrial policy but some one told me that it has become elegible to get mmc exemtion in 2011 policy.

  • Avinash jaiswal

    Dear sir
    sir i am pursuing final year engineering in Electronics and Tele comminication from Pune university.sir i am making a electronic device in my B.E.project which is more efficient and it is very useful now at a days.one of the company has also adopted my project.but sir i want to introduce this device in Bihar,if i introduce this device in Bihar i hope very soon it will be a need of every one .so i want to start the production of this device in Bihar.
    sir please tell me what is the procedure to establish a new Technical production company in Bihar,and can i get any financial support from Goverment of Bihar…!!!
    Thanking you

  • sanjeev kumar

    pls tell me how can start bio fertilizer unit set up in nalanda dist, in bihar,


    sanjeev kumar



    Dear sir,

    I want to start poly packaging industy near patna. plz tell how i got a land what will be the rate per sq mtr.