Bihar Land Conversion Fees Reimbursement
By Department of Industries, Government of Bihar
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Quick Answer
Claim 100% reimbursement of land conversion fees for industrial units commencing commercial production under the Bihar Industrial Investment Promotion Policy-2016.
About this subsidy
The Land Conversion Fees Reimbursement program, a key incentive under the Bihar Industrial Investment Promotion Policy-2016, aims to significantly reduce the operational costs for industrial units establishing or expanding their presence in Bihar. This initiative specifically targets businesses that need to convert agricultural land for industrial purposes. By offering a full 100% reimbursement of all 'land conversion fees' or 'change in land use' fees, the policy seeks to alleviate a substantial financial burden on new and existing enterprises. This support is crucial for fostering industrial growth, attracting investments, and generating employment opportunities within the state.
The program is designed to encourage industrialization by streamlining one of the initial and often costly steps in setting up an industrial unit: land acquisition and conversion. It ensures that once an industrial unit commences commercial production, it can claim back the full amount spent on these essential fees. This commitment reflects the Bihar government's strategic approach to creating a business-friendly environment and promoting a robust manufacturing and industrial ecosystem. The policy is instrumental in supporting local entrepreneurs and attracting external investors, ultimately contributing to the economic development of Bihar.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Department of Industries, Government of Bihar is the state department that owns the Bihar Start-up Policy 2022 and the Mukhyamantri Udyami Yojanas. It sits in Vikas Bhawan, part of the New Secretariat in Patna. Start-ups apply for the policy's schemes through the Startup…
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What You Get
The program provides 100% reimbursement of all "land conversion fees" or "change in land use" fees levied for the conversion of agricultural land into industrial land. This significant financial incentive directly reduces the capital expenditure for industrial units. The reimbursement is disbursed once the unit has successfully commenced commercial production, ensuring that the support is tied to actual operational activity. This benefit acts as a crucial subsidy, making the process of land acquisition and industrial setup more financially viable and encouraging investment in the state's industrial sector. The focus is purely on financial relief, with no additional mentorship, office space, or other non-cash offerings explicitly stated.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Land Conversion Fees Reimbursement involves a verification of claims rather than a competitive selection. Once an industrial unit submits its application with the required documentation, a designated committee or authority under the Bihar Industrial Investment Promotion Policy-2016 will review the submission. This review will confirm that the unit has indeed converted agricultural land for industrial use, paid the relevant fees, and has successfully commenced commercial production. The process is administrative, focusing on adherence to the policy's stated criteria, rather than evaluating business potential or innovation.
Application Process
- 1
Commence Commercial Production
The industrial unit must first successfully convert agricultural land and begin commercial production.
You - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the Land Conversion Fees Reimbursement program?
This program, part of the Bihar Industrial Investment Promotion Policy-2016, offers 100% reimbursement of all fees incurred for converting agricultural land to industrial use. It aims to support industrial units establishing or expanding in Bihar.
Who is eligible to claim this reimbursement?
Industrial units that have successfully converted agricultural land for industrial purposes and have commenced commercial production are eligible to claim 100% reimbursement of their land conversion fees.
What types of entities can apply for this reimbursement?
The program is open to various business entities, including Private Limited Companies, LLPs, One Person Companies, Partnerships, and Proprietorships, that are setting up industrial units and undertaking land conversion in Bihar.
What stage of business is eligible for this program?
This reimbursement is specifically for industrial units that have already commenced commercial production. Therefore, businesses must be in the revenue or profitable stage to be eligible.
Is there a maximum limit on the reimbursement amount?
The policy states a 100% reimbursement of the actual land conversion fees, implying no fixed maximum monetary cap, but rather a full coverage of the incurred and levied fees.
How do I apply for this reimbursement?
Applications for this reimbursement are typically made through the designated department or agency as outlined in the overarching Bihar Industrial Investment Promotion Policy-2016. The process usually involves submitting proof of land conversion fee payment and evidence of commercial production commencement.
Sources
Data on this page is compiled from official program and provider references.








