Ahmedabad: For a progressive entrepreneur wanting to start a manufacturing unit, land remains a major roadblock. High prices, complex procedures, and prolonged government clearances often delay projects. In a first-of-its-kind move, the Bihar government has introduced a bold, business-friendly initiative—offering industrial land for just Re 1 per acre.
Gujarat, one of India’s biggest industrial hubs with thriving textile, diamond, chemical, and manufacturing sectors, employs a significant number of Bihari workers who form the backbone of Surat’s textile industry. With Bihar’s latest policy push, Gujarat-based industrialists fear a potential mass shift of workers back to their home state.
Ashok Jirawala, president of the Federation of Gujarat Weavers Welfare Association (FOGWA), said, “Bihar is offering land for Rs 1 per acre, which means it will attract the business houses to shift base to Bihar. This is going to be a big loss for the industrial state of Gujarat. We worry that the Bihari workers may shift base to their home state.”
Announced under the Bihar Industrial Investment Incentive Package 2025, the initiative is one of the most aggressive industrial development policies seen in India recently. Its mission is clear: attract large investments, generate employment, and transform Bihar from a labour-supplying state into a major manufacturing destination.
“This isn’t just about land; it’s also about rebuilding investors’ trust and giving young people in Bihar real job opportunities,” said a senior state official involved in drafting the policy.
Who Gets Land for Re 1?
The scheme has a defined eligibility framework to ensure only serious and job-creating investors benefit. Companies investing over ₹100 crore and committing to 1,000 jobs can acquire 10 acres at Re 1 per acre. Those investing ₹1,000 crore or more can get 25 acres under the same terms. Fortune 500 companies can secure 10 acres for an investment of ₹200 crore. Officials say priority is being given to large-scale manufacturing and infrastructure projects with district-level employment potential.
Benefits for Other Investors
Beyond big-ticket offers, the Bihar Industrial Area Development Authority (BIADA) is providing land at up to 50% discount to medium and small businesses. Plug-and-play industrial sheds are also available, enabling companies to start operations swiftly without construction delays.
“A lot of entrepreneurs want speed and certainty, not paperwork. Plug-and-play facilities solve that problem,” a BIADA official said.
Heavy Financial Incentives
The policy also includes substantial fiscal benefits. Investors are eligible for interest subsidies up to ₹40 crore, full SGST reimbursement or up to 300% of net SGST on project cost for 14 years, and an optional 30% capital subsidy. Economists believe this package could significantly improve Bihar’s cost competitiveness.
Simple Online Application
To eliminate bureaucratic hurdles, the entire process is online. Entrepreneurs can apply through BIADA’s official portal (https://biada1.bihar.gov.in/) under the “Apply Online” section and explore land banks, industrial zones, and ready sheds digitally. A dedicated helpline—18003456214—has also been launched to assist applicants.
