Patna: The Bihar government has amended its flagship biofuels policy to further encourage private investment and accelerate the state’s renewable energy ambitions.
The revised Bihar Biofuels Production Promotion (Amendment) Policy, 2025, notified this week, updates the original 2023 framework that had already catalysed considerable investor interest in the sector.
Under the amended policy, the deadline for Stage-1 clearance for compressed biogas (CBG) units through the Single Window Clearance Portal has been extended to March 31, 2027, while the deadline for obtaining financial approval has been pushed to March 31, 2028. The policy applies to private companies as well as oil marketing companies (OMCs).
In a further push to promote biofuel projects, the government has allowed up to 25% of land in industrial areas managed by Bihar Industrial Area Development Authority (BIADA) to be leased for CBG units. The lease will be for 30 years at a fixed annual rate of Rs 75,000 per acre.
Additionally, the state government has moved to clear pending incentive claims. About Rs 453 crore has been earmarked for 74 applications submitted by August 31, 2023, for projects that have received initial approvals but were awaiting statutory clearances. These units, once compliant, will be eligible for payments under the Industrial Promotion Policy, 2011, and will also benefit from SGST/VAT and electricity reimbursements for the remaining permissible period as per the rules.
The amended policy reaffirms that incentives will be granted on a first-come, first-served basis. However, all CBG units applying for Stage-1 clearance by March 31, 2027, and submitting financial incentive applications by 31 March 2028, will qualify for benefits.
The move is expected to significantly strengthen Bihar’s bioenergy ecosystem, attract fresh investments, and support the state’s broader goals of renewable energy self-reliance.
