Bihar unveils semiconductor policy 2026 to enhance industrialisation

The Bihar government has come out with a Semiconductor Policy 2026 in a bid to promote industrialisation in the state. This policy envisages giving land to industrialists at a token amount of Rs 1 on certain conditions. A waiver on stamp duty and registration fees has also been incorporated in the policy that was recently approved by the state cabinet. There is also a provision for subsidies.

According to the government, one acre of land will be provided at a token amount of Rs 1 for every Rs 100 crore of the project cost. This is expected to facilitate entrepreneurs setting up semiconductor plants in the state. They will also receive concessions in land conversion fees for unit registration.

Semiconductors are a cutting-edge technology that support healthcare, transportation, communications, defence and space programmes. It is claimed that India’s chip market is growing rapidly. In this scenario, the Bihar government wants to develop the state as a technology hub.

Officials say that the policy aims to increase the semiconductor sector’s share in Bihar’s economy to 5% within the next five years. They say that the government’s commitment can be gauged by the fact that in addition to the Centre’s subsidy, the Bihar government will provide an additional 20% subsidy to companies investing in the state.

A Bihar Semiconductor Mission has been formed to manage and monitor the project. The Mission will be overseen by a high-level committee under the Chief Secretary.

To begin with, the Bihar government plans to establish three major semiconductor units with an investment of over Rs 5,000 crore. These will include fabs (chip manufacturing units) along with assembly, testing, marking, and packaging (ATMP) units. The government expects this policy to attract an investment of approximately Rs 25,000 crore to Bihar. Furthermore, it is expected to create over 200,000 direct and indirect employment opportunities.

This policy finds mention in Chief Minister Nitish Kumar’s ‘Saat Nischay’ Part 3. Bihar’s Industry Minister, Dilip Jaiswal, told ETV Bharat that with the world moving towards the latest technology, India will have to rely heavily on semiconductors and chips, and Bihar needs to join the others.

“The Bihar cabinet decided to establish a semiconductor chip industry. Our policy is coming out very well. The Chief Minister has provided detailed information on this, and Bihar will become a semiconductor industrial hub in the future,” he said.

Jaiswal explained that the policy for giving land to industrialists for a token amount of Rs 1 was formulated in 2025. “For any industry, not just semiconductors, we have stipulated that if they employ a certain number of people and invest a certain amount, they will be given land for Rs 1,” he said.

He further disclosed that safeguards are being put in place to ensure that entrepreneurs and businessmen do not face any harassment.

The minister said that the new industrial initiative by the Bihar government aims to promote investment and create employment opportunities in the state. The conditions mentioned by the government are that the unit setting up an industry must commence construction and production within a stipulated timeframe. There are also conditions pertaining to a minimum investment limit, the requirement to employ local people and adhering to the environmental requirements. If the industry fails to commence operations within the stipulated timeframe or if the conditions are violated, the government reserves the right to cancel the lease.

The land will be provided at various industrial areas, industrial parks and proposed industrial clusters across the state. The allocations will be in industrial areas that are already developed or are being developed around districts such as Patna, Gaya, Muzaffarpur, Bhagalpur, Begusarai and Darbhanga. The government’s focus will be on areas with logistical connectivity, ensuring easy market access for industries.

It was disclosed that new entrepreneurs, startups, the micro, small and medium enterprises (MSME) sector, along with the large investors, can avail the benefits being offered. Particular priority will be given to manufacturing units, food processing, textiles, information technology (IT), electronics and agro-based industries. Local entrepreneurs in Bihar, as well as investors from outside, will be eligible to apply provided they meet the government’s established criteria.

Sources disclosed that the land will be leased for Rs 1 along with the provision of electricity, water, roads, drainage and other infrastructure. Furthermore, the approval process will be simplified through a single-window system. In some cases, stamp duty exemptions, tax incentives, subsidies and training support may also be provided to reduce the initial cost of setting up an industry.

Those interested can apply through the Industry Department’s official website or single window portal. Applicants are required to upload a project report, investment proposal, employment generation details and required documents. ETV Bharat