Bihar Introduces Exit Policy for Industries to Reclaim Unused Land

Patna: The Bihar government has introduced a new exit policy aimed at facilitating the return of land from closed industrial units to the Bihar Industrial Area Development Authority (BIADA) for reallocation to new enterprises. The policy, approved during the 93rd meeting of BIADA’s Board of Directors on February 11, is set to remain in effect until December 31, 2025.

Chief Secretary Amrit Lal Meena said that this demand was raised in the last Udyami Panchayat. “This is likely to unlock significant industrial land for new industries, particularly for new MoU holders of Bihar Business Connect,” he said.

Objective and Eligibility

The Exit Policy-2025 aims to optimize land use in industrial zones by allowing entrepreneurs to return their allocated plots in exchange for a refund of their lease amount. The policy applies to:

• Units with a valid allotment.
• Units that have challenged allotment cancellations in court and are willing to withdraw their cases.
• Units with canceled allotments where BIADA has not yet taken possession.

However, the policy does not extend to expired leases or land transferred to third parties.

Implementation and Refund Process

Entrepreneurs opting to return their land will receive a refund based on the duration of non-functionality, with deductions calculated at current BIADA rates:

• 10% refund for non-operational units for one to three years.
• 15% refund for units inactive for three to five years.
• 20% refund for units inactive for over five years.

Additionally, an 18% GST will be applied, and any outstanding dues to banks, electricity providers, or government departments will be deducted before disbursement.

Required Documentation and Timeline

Applicants must provide:

• Original lease deed and allotment letter.
• No-objection or clearance certificates from financial institutions and electricity providers.
• An affidavit if no loan has been taken.

Once an application is approved, units will have three months to remove existing structures before BIADA reclaims the land. If they fail to do so, the government will auction the property, deducting related costs from the refund.

Payment Structure

Refunds will be issued in three installments:

• 40% within four months of land surrender.
• 30% after an additional four months.
• The remaining 30% after eight months.

Considerations for New Units

Newly allotted units under BIADA’s 2002 Land Allotment Policy, which have failed to establish operations within the stipulated timeframe, can also apply. In such cases, a proportional deduction will be made, along with a 10% reduction from the total amount paid for the land. If any installments are due, an extra 2% penalty will be imposed.

Applications can be submitted to BIADA’s Executive Director (North or South) at its headquarters. A committee led by the Managing Director will evaluate each application, with its decisions being final.