Government of Bihar Launches Comprehensive Fiscal Incentives to Transform IT / ITES and ESDM Sectors
The Government of Bihar, through its Department of Information Technology, has introduced the Bihar IT Policy 2024 to catalyze growth and development in the state’s Information Technology (IT), IT Enabled Services (ITES), and Electronics System Design and Manufacturing (ESDM) sectors. The new policy, aimed at “Boosting Investment, Employment & Development,” offers a robust suite of best-in-class fiscal incentives designed to attract both domestic and international companies.
Key Pillars of the Incentive Program
The policy is structured around several core subsidies that address the primary financial hurdles for companies looking to establish or expand their operations in Bihar. The incentives are applicable for a period of five years from the date of investment.
Capital and Interest Subsidies
The policy provides significant support for initial capital expenditure. Companies are eligible for a Fixed Capital Subsidy of 30% of their investment, capped at ₹30 Crore. As an alternative, investors can opt for an Interest Subvention Subsidy, which offers a 10% subsidy on the interest amount, applicable to up to 50% of the project cost or ₹40 Crore, whichever is less.
Operating and Employment Support
To ensure long-term viability and growth, the Bihar IT Policy 2024 includes subsidies on key operational costs and provides strong support for employment generation.
- Lease Rental Subsidy: A substantial 50% subsidy on the lease rental amount is available for companies, providing relief on a major operational expense for five years.
- Power Tariff Subsidy: The government will provide an annual reimbursement of 25% of the energy bill, reducing the cost of utilities for a period of five years.
- Employment Generation Subsidy: This incentive is a cornerstone of the policy’s focus on job creation. The government will reimburse 100% of the employer’s contribution towards the Employees’ State Insurance (ESI) and Employees’ Provident Fund (EPF), up to ₹5,000 per employee per month for five years.
- Net SGST Reimbursement: To further ease the tax burden, the policy offers 100% reimbursement of the Net State Goods and Services Tax (SGST) for a five-year period.
Special Provisions for Large-Scale Investments
Recognizing the potential for large-scale projects to have a transformative impact, the policy includes a provision for a “tailor-made package.” This customized incentive scheme is available for investments exceeding ₹100 Crore or for projects that generate a minimum of 1,000 direct employment opportunities. This provision allows the government to negotiate specific, attractive terms with major players, encouraging significant capital infusion and job creation.
For more information, interested investors are encouraged to contact Shri Sumit Kumar (+91-8527054600) or Shri Jayant Yagnik (+91-9601012691), or visit the official website.1
Reference and Notification Links
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