40 acre land for Re 1: Bihar's new policy to woo investors for sugar mills
Bihar has unveiled a major incentive package for the sugar industry, offering investors government land at a token lease amount of just Re 1 as
Bihar has unveiled a major incentive package for the sugar industry, offering investors government land at a token lease amount of just Re 1 as part of a new policy aimed at reviving the sector and attracting large-scale investments. The state government has launched the Sugarcane Industries Investment Incentive Policy 2026, under which investors setting up new sugar mills can get up to 40 acres of government land on a 30-year lease for only Re 1.
Read Full Story Announcing the policy, Sugarcane Industries Minister Sanjay Kumar said Bihar has become the first state in the country to introduce such a comprehensive incentive framework for the sugar sector. Apart from the concessional land offer, the policy provides 100 per cent reimbursement of registration and stamp duty charges for land purchased by investors for sugar mill projects. Sugar producers will also receive full reimbursement of SGST on sugar production for five years.
To encourage new investments, the government has announced financial assistance of up to Rs 100 crore for sugar mills with a crushing capacity of 5,000 tonnes of cane per day (TCD). New mills with a capacity of 3,500 TCD will be eligible for support of up to Rs 70 crore. Existing sugar mills expanding their capacity will also receive incentives under the policy. The package also extends benefits to allied industries, including distilleries, ethanol production units, power generation projects and compressed biogas (CBG) plants.
A key feature of the policy is the concept of a Modern Sugar Complex, where sugar production, ethanol manufacturing, electricity generation and CBG production will function as an integrated ecosystem. The move is part of the government’s broader Saat Nischay-3 programme, under which Bihar aims to revive closed sugar mills and establish 25 new sugar mills across the state. Ends
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