Bihar Unveils IT Policy 2024: Incentivizing Investments and Job Creation

By Consultants Review Team Thursday, 11 January 2024

The Bihar government, led by Chief Minister Nitish Kumar, has unveiled the Bihar IT Policy 2024, an initiative aimed at fostering job creation and encouraging professionals in the IT sector to return to the state. The policy offers significant subsidies and incentives to companies, investors, and employment generators making investments ranging from Rs 5 crore to Rs 30 crore.

According to the policy, entities falling within this investment range will receive a substantial 30% subsidy from the Bihar government. Additionally, there is a provision for a 10% Interest Subvention Subsidy, amounting to up to 50% of the project cost or Rs 40 crore for a period of 5 years, along with an annual reimbursement of 25% of energy bills for the same duration.

As part of the support measures, the Bihar government is offering a Rs 5,000 subsidy for ESI/EPF deposits made by investing companies on behalf of their employees. Bihar's Deputy Chief Minister, Tejaswi Yadav, emphasized the government's commitment to providing further assistance, including an employment generation subsidy of up to Rs 5,000 per worker per month for 5 years in the ESI/EPF accounts of the employees of the employer companies.

Furthermore, the state government is set to reimburse 100% of the employer contribution to ESI and EPF, up to Rs 5,000 per employee per month for a period of 5 years, under the Employment Generation Subsidy. Deputy CM Tejaswi Yadav highlighted that the government would also offer a 50% lease rental subsidy and cover 25% of the company's electricity expenses for businesses establishing themselves in Bihar.

For larger investments ranging from Rs 100 crore to Rs 1,000 crore, the Bihar government has proposed a "Tailor Made Package" in collaboration with investors and IT companies, providing flexibility and customized support to further incentivize significant investments in the state.

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