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The State of Bihar lies in the eastern part of India. It has rich source of mineral resources and agricultural products, and is a strong center for production of engineering goods. Despite this, it remains one of India poorest states, with poor infrastructure, law and order, quality of local administration, and government support for industry. However, the State Government has recently taken cognizance of these problems and is now trying to improve the situation to encourage investment.

Land area: 173,877 sq. km.
Population: 86.4 million
Capital: Patna
Per Capita Income: Rs 3,816
Inflation Rate: 8%

Industrial Policy

Bihar is concentrating on strengthening its industrial sector in a bid to catch up with the rest of India in attracting investments. The aims and objective of its policy are to create an environment for optimal utilization of state's agro, climatic, mineral and human resources: provide quality infrastructure for accelerated industrialization of the state, attract investment to generate economic activities employment, income and growth etc.

Incentives

1. Subsidy of up to 15% of capital investment for new small and ancillary industries.
2. Additional subsidy of 10%, up to Rs. 1 million, for purchasing energy conservation equipment.
3. Sales-Tax deferment and exemption for finished goods.
4. Power subsidy of 18 paise per unit for units with capital investment of up to Rs. 7.5 million.
5. Power subsidy of 15 paise per unit for units with investment of between Rs. 7.5 million and Rs. 150 million.
6. Subsidy of up to Rs. 0.01 million for modernization and productivity improvement by SSI units
7. Special facilities or SC/S and technically qualified entrepreneurs on priority basis.
8. Feasibility study subsidy of up to 1% of fixed capital, or up to Rs. 0.02 million of SSI units.

State identified priority sectors:

Agro-processing, Engineering, Forestry Minerals, Plastics, Power, Telecom, Textiles and Tourism.