Bihar rolls out Re 1 land offer, incentives to attract investment in sugar sector
Bihar’s Sugarcane Industries Investment Incentive Policy 2026 offers up to 40 acres of government land on a Re 1 lease, SGST reimbursement, and incentives up to Rs 100 crore. The policy supports sugar, ethanol, power, and CBG projects while targeting 25 new mills.
Patna: Bihar has announced an extensive incentive package for the sugar industry, introducing a new policy that offers government land at a token lease amount of Re 1 to attract investors and accelerate growth in the sector.
Under the newly launched Sugarcane Industries Investment Incentive Policy 2026, investors setting up new sugar mills in the state will be eligible to receive up to 40 acres of government land on a 30-year lease at a nominal charge of Re 1, India Today reported.
Announcing the initiative, Sugarcane Industries Minister Sanjay Kumar said Bihar is the first state in the country to introduce such a broad incentive framework dedicated to the sugar industry.
The policy also includes full reimbursement of registration and stamp duty expenses for land purchased for sugar mill projects.
In addition, sugar manufacturers will receive 100 per cent reimbursement of State Goods and Services Tax (SGST) on sugar production for a period of five years.
To encourage fresh investment, the government has introduced financial support of up to Rs 100 crore for sugar mills with a crushing capacity of 5,000 tonnes of cane per day (TCD). Projects with a capacity of 3,500 TCD will qualify for assistance of up to Rs 70 crore.
Existing sugar mills undertaking expansion will also be covered under the incentive scheme.
Beyond sugar production, the policy extends support to allied industries such as distilleries, ethanol production facilities, power generation units and compressed biogas (CBG) plants.
One of the central features of the policy is the development of a Modern Sugar Complex, designed as an integrated ecosystem combining sugar manufacturing, ethanol production, electricity generation and CBG production.
The initiative forms part of Bihar’s broader Saat Nischay-3 programme, through which the state plans to revive closed sugar mills and establish 25 new sugar mills.
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Source : ChiniMandi
