The government of Bihar has unveiled a Semiconductor Policy 2026 to accelerate industrialisation and provide a fresh push to the state’s economy. The policy includes offering land to investors at a token price of Re 1, along with waivers on stamp duty and registration charges. It also provides for a range of subsidies. The policy was recently approved by the state cabinet.
Under the policy, industrialists will be allotted one acre of land at a nominal cost of Re 1 for every Rs 1 billion invested in a project. This provision is aimed at easing entry barriers for companies looking to establish semiconductor facilities in the state. In addition, investors will receive concessions on land conversion charges required for unit registration.
The state government has set a target to raise the semiconductor sector’s contribution to Bihar’s economy to 5 per cent over the next five years. In a significant incentive, Bihar will offer an additional 20 per cent subsidy to companies investing in the state, over and above the incentives provided by the central government.
Further, to oversee implementation, a Bihar Semiconductor Mission has been constituted to manage and monitor projects under the policy. The mission will function under the supervision of a high-level committee chaired by the Chief Secretary.
As an initial step, the government of Bihar plans to facilitate the establishment of three large semiconductor units with investments exceeding Rs 50 billion. These will include fabrication plants as well as assembly, testing, marking and packaging (ATMP) units.
Overall, the policy is expected to attract investments of around Rs 250 billion into the state and generate more than 200,000 direct and indirect employment opportunities.