Highlights of Bihar Industrial Investment Promotion Policy
(Textile & Leather Policy), 2022

This Textile and Leather policy complements the existing Bihar Industrial Investment
Promotion Policy 2016(amended in 2020) (categorized as HIGH PRIORITY SECTOR)

This policy shall come into force from 03.06.2022 and shall be applicable for 5
years

General Provisions
 The appraisal report prepared by the bank/ financial institute shall form the basis
for ascertaining the project cost for calculation of incentives.

 For units, not availing the benefits of bank loan, and not having Bank Appraisal
Report, Department of Industries will facilitate the empanelled agencies, who will
assess the Detailed Project Report (DPR) of units.

 In case of special class entrepreneurs, the maximum limit of all kinds of
incentive/s (except for land) shall be increased by additional 5% over the given
limit across all categories

 Incentive/s under this Policy shall be offered after commencement of
commercial production by the Unit (except Stamp duty & Registration charges
and land conversion charges)

 Fixed Capital Investment includes investment in land (max. 20% of project cost
excluding land), plant & machinery, electrical installations, and all other assets
necessary to set up the unit but shall exclude the cost of working capital,
contingencies, interest during the construction period, and any other unexplained
cost component

 Plant and Machinery shall be considered as specified under ATUFS schemeof
Ministry of Textiles, GoI

 All the eligible units shall be encouraged to apply for incentives under the
different GoI schemes along with the incentive under the Bihar Industrial
Investment Promotion Policy (Textile & Leather Policy) to get the maximum

benefits.

 To avail of the benefits, there must be a capacity diversification/ expansion/
modernization of at least 25%of the capacity of the existing unit.

 Dovetailing with the Central and State Government policies and schemes is
allowed in the following categories of incentives:
o Skill Development subsidy
o Interest subvention
o Tax-related incentives
o Patent Registration

Read More:-Highlights of New Bihar Textile & Leather Policy 2022