Industrial Promotion Policy -2011 of Bihar

Bihar New Industrial Promotion Policy-2011

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Bihar state cabinet on 7th june’11 has  okayed the new industrial policy. To be known as the New Industrial Promotion Policy-2011, it will come into effect from July’11.

Under this policy, new labour intensive industries which invest over Rs 500 crore in the state will be given special incentive. The  State Government   ill give incentive to the small and medium industries as well as to those industries setting up captive power plants of their own.

Such industries will be given subsidy equal to 50 to 60 per cent of the total amount involved in setting up of the plants.

Those industries which will pursue job-reservation policies will be provided additional 10 per cent subsidy. Those setting up units producing SPV or unconventional energy appliances will also be given 60 per cent subsidy.

Industries will be assisted in preparation of DPRs, obtaining ISO markings and carbon-free certification. Paper works related to setting up of industries has also been simplified and the new as well as old industries opting for expansion will now get concessions in registration and stamp duty fees while purchasing land for the purpose.

Here are the chief highlights of the new industrial policy:

  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. On the controversial matter of 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.

As per news report, Bihar government will however not help industry in acquiring fertile    land or any crop land.

  • Biharprabha Admin


    The policy is likely to come by end of this month. We will put it on our site as soon as available.


  • Manish Raj

    Is there an English version of the industrial policy of 2011? Can you post the English version? Thanks

    • Biharprabha Admin

      Manish jee
      We are trying to get a copy of English version of industrial policy -2011 and we will post it shortly.
      Thanks for visiting our site which is dedicated to development of Bihar.


  • P K Agarwala

    What will be the % of capital investment subsidy with or without captive power plant.That subsidy will be available on entire project cost or on any specific part of the project.

    • Biharprabha Admin

      The policy provides 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.All the contents of policy are available on our website


  • sushil

    Sir, the link for the policy copy is broken. I am not able to download it. Can you please send me copy of the industrial policy 2011-2016 as soon as possible. Hindi font will be preferable.

    Sushil Kandoi

    • Biharprabha Admin

      Before we upload, If u do not mind please give us introduction.
      We also have consultancy firm. We may advise u too.


  • abhishek

    can you suggest me….how i’ll got capital investment subsidy …..pls suggest some prominent consltant..

    • Biharprabha Admin

      Abhishek jee

      Please provide the details and purpose/ industries for which u are seeking Govt. subsidy.


  • Rahul

    There is no discussion about the electricity. On setting up food processing unit ( Besan, pickles, spices ) what are the benefits which govt is offering. Will the company be subjected to pay the electricity bills per meter reading or the amount for H.T line(11 kva) be fixed on monthly basis.

    • Biharprabha Admin

      Rahul jee.

      Now there is AMG and MMG for payment of electricity bill. For relief in AMG under Industrial Policy FY11 please our site.


    • Biharprabha Admin

      Rahul Jee

      HT consumers are charged AMG which was earlier MMG. You can claim exemption in AMG as
      per Govt Industrial Policy 2011. U can download it from our website also


  • Manoj Kumar

    Dear sir/ Madam
    Please give me the gide line to set up a medium industris of Mentha Oil with food processing unit in Dist. Nawada Bihar.
    Also send the Bihar Govt. policy to set up a medium scale industries in bihar.


    • Biharprabha Admin

      Helo Manoj

      The State Govt Industrial Policy 2011 is available on our web site
      If u need further help please do write


  • mithilesh kumar

    in tourism fild any subsidy by bihar govt.

    • Biharprabha Admin

      Dear Mithilesh
      Tourism comes under thrust area
      under Industrial incentive policy’11
      U can download the policy from our site


  • Dear sir,
    We r thankful for your reply we get on 21-09-11.
    Yes we r very much interested to set up a med. mentha oil industries in Bihar. now our request to u please guide me to set up a industries.

    If u need any help from our side please call me on 09816641010. or mail to me on my site


  • may i know what is the scope of rubber industries in bihar and what kind of help govt. provides

  • Manoj Kumar

    Dear sir, Madam
    please suggest me how we set up a unit of Bio fertilizers in Bihar. also i want to know that what is the support from Gov. to set up a Bio fertilezers unit.

    Manoj Kumar

    • Biharprabha Admin

      Manoj jee

      We have already discussed the issue

    • Biharprabha Admin

      helo manoj
      U can download Bihar Industrial Policy from our site
      sorry for the delay in replying to your letter

      BiharPrabha Team

  • R. N. Roy

    We perceive the content but it has logged on for dairy and opened for industrial policy- 2011… what is this… ?

  • nilu

    cattle feed bankable project needed

  • Amarjeet singh

    dear sir
    Please give me the gide line to set up a small scale industris of construction chemicals in Dist.Rohtas Bihar.
    Also send the Bihar Govt. policy to set up a small scale industries in bihar.

  • How to get subsidy on offgrid solar power palt

    Dear sir
    we wants to set a 100kw offgrid solar power plant for supply as per bihar industery policy 2011 , they are providing 60% susidy on SPV captive power plant . Please tell us the process or contact us on +918809475037.