Patna: The Bihar Cabinet has approved a proposal to facilitate Rs 25,000 crore in funding for the development of industrial areas across the state, in a move aimed at expanding industrial infrastructure and attracting new investment.
The decision was taken at the Cabinet meeting on Wednesday, where a total of 29 agenda items were approved. According to the state government, the Industrial Area Development Authority (IDA) has been authorised to secure loans from financial institutions with a state government guarantee.
Rs 25,000 Crore For Industrial Infrastructure
The approved funding will be used for land acquisition and the development of infrastructure in industrial areas across Bihar.
Deputy Chief Minister Samrat Chaudhary approved the proposal, allowing the IDA to raise up to Rs 25,000 crore through institutional borrowing backed by the state government.
Officials said the investment is intended to strengthen industrial infrastructure and support the establishment of new manufacturing and business units.
Focus On Employment And Economic Growth
According to the state government, the expansion of industrial areas is expected to encourage domestic and foreign investment, generate employment opportunities and support broader economic development.
The government has also said the initiative is expected to contribute to its target of creating employment and livelihood opportunities for 10 million young people by 2030, while supporting the growth of agriculture-linked industries and women’s economic participation.
Investment Promotion Package Extended
The Cabinet also approved an extension of the Bihar Industrial Investment Promotion Package-2025 to maintain investment momentum in the state.
The Department of Industries said the package, which was introduced on August 26, 2025, and was scheduled to remain in force until June 30, 2026, will now continue until December 31, 2026, or until the new Industrial Investment Promotion Policy-2026 comes into effect, whichever is earlier.
Extension Cites Continued Investor Interest
According to the Industries Department, the decision to extend the incentive package was taken in response to a steady increase in industrial investment proposals and continued interest from investors.
Officials said the extension is intended to ensure policy continuity while the state prepares to introduce its next industrial investment promotion policy.
