Bihar Extends Biofuel Policy to 2027, Offers Land in Industrial Areas for Biogas Plants

Bihar Biofuels Production Promotion Policy, 2023 was implemented to promote self-reliance in the field of renewable energy at the level of Bihar Government. Through this policy, investors in the biofuels sector got adequate encouragement, which has accelerated the pace of investment in this sector. Now making some important changes in this policy, its revised format has been implemented.

Keeping in view the investment possibilities in the biofuels sector and the increasing interest of investors, the state government has notified the Bihar Biofuels Production Promotion (Amendment) Policy, 2025. Under this, the last date for Stage-1 clearance on the Single Window Clearance Portal for Compressed Biogas (CBG) units to be set up by private companies and oil marketing companies (OMCs) has been extended to 31 March 2027 and the last date for financial approval to 31 March 2028.

The state government has also made a provision that for setting up CBG units, a maximum of 25 per cent of land in the designated industrial areas of BIADA will be made available on lease for 30 years at the rate of Rs 75,000 per acre per year to private companies and OMCs.

Under the Industrial Promotion Policy-2011, the proposed incentive amount of about Rs 453 crore for grant claims of 74 applications submitted on the departmental portal till August 31, 2023 for such units which have received approval from the State Investment Promotion Council or District Level Single Window Clearance Committee and which are operational but have not been able to get approval from the competent authority, will be paid after obtaining the relevant statutory approvals. Also, reimbursement of SGST / VAT and electricity charges to these units for the remaining permissible period will also be made as per rules.

Under this scheme, incentives will be provided on first come first serve basis. But all compressed biogas units applying for Stage-1 clearance by 31st March 2027 will be eligible to receive incentives, if they also apply for financial incentive clearance on or before 31st March 2028.