Patna, June 17: In a significant policy shift, the Bihar government has approved a framework that will allow land transactions in areas earmarked for Greenfield Satellite Townships, addressing concerns raised by landowners affected by restrictions on the sale, purchase and transfer of land.
The decision was approved by the state cabinet and announced by Urban Development and Housing Minister Nitish Mishra, who said the move balances the immediate needs of landowners with the government’s broader objectives of planned urbanisation, infrastructure expansion and investment promotion.
Why Was The Decision Needed?
The Bihar government had earlier notified 11 Greenfield Satellite Township projects across the state. Following the notification, restrictions were imposed on the sale, purchase and transfer of land within these proposed township areas.
While the restrictions were intended to facilitate planned development and prevent speculative transactions, they also created difficulties for landowners who needed to sell land to meet urgent financial requirements.
The cabinet’s latest decision seeks to resolve this issue by creating a regulated mechanism through which landowners can legally transfer land while ensuring the state’s development plans remain on track.
What Has The Cabinet Approved?
Under the new arrangement:
- The Bihar State Housing Board has been authorised to purchase land under the Bihar Raiyati Land Purchase Policy, 2026.
- Government authorities can acquire land required for state or central government projects.
- Investors associated with projects approved by the State Investment Promotion Board (SIPB) can purchase or lease land directly from landowners.
According to the government, this creates a structured framework for land transactions while maintaining oversight over township development.
How Will Landowners Benefit?
The government says the policy will provide a solution for landowners facing urgent financial needs.
If a raiyat (landholder) wishes to sell land located within a Greenfield Satellite Township area, the Bihar State Housing Board will be able to purchase it.
For government projects, the concerned authority will undertake land acquisition. For private investment projects approved by the SIPB, investors will be permitted to purchase or lease land directly from landowners.
Officials argue that the arrangement ensures landowners are not left without options while development activities continue.
How Much Compensation Will Landowners Receive?
One of the key features of the policy is its compensation formula.
According to Minister Nitish Mishra:
- For urban land, owners will receive twice the higher of the market value or the circle rate (Minimum Value Register).
- For rural land, owners will receive four times the higher of the market value or the circle rate.
- An additional incentive of 10% of the determined value will also be paid.
The government says this formula is designed to ensure fair compensation and encourage voluntary participation.
Who Will Determine The Market Value?
The market value of land will be assessed by a district-level Raiyati Land Purchase Committee.
Officials say the committee-based mechanism is intended to ensure transparency and prevent arbitrary valuation, while guaranteeing landowners a fair and equitable price.
Which Townships Are Covered?
The Bihar cabinet had approved 11 Greenfield Satellite Townships on 22 April 2026.
The proposed townships are:
- Pataliputra
- Hariharnathpur
- Magadh
- Mithila
- Kosi
- Purnia
- Anga
- Sitapuram
- Vikramshila
- Tirhut
- Saran
These projects are expected to serve as planned urban centres aimed at supporting future population growth, industrial expansion and infrastructure development.
What Does It Mean For Bihar’s Development Plans?
The government views the decision as a critical step towards accelerating planned urban growth while simultaneously addressing concerns raised by affected landowners.
Officials believe the new framework will:
- Facilitate land availability for township development.
- Support infrastructure projects.
- Encourage private investment.
- Improve regional connectivity.
- Create new urban growth centres across Bihar.
Nitish Mishra said the decision reflects the government’s commitment to balancing development needs with the interests of landowners, while creating conditions for long-term investment and modern urban infrastructure.
For thousands of landowners in the notified township areas, the policy provides a legal route to monetise their land. For the government, it removes a potential bottleneck in the implementation of one of Bihar’s most ambitious urban development programmes.
