Bihar Cabinet Greenlights Comprehensive Policy Package to Boost Investment and Governance
In a significant move aimed at transforming Bihar's economic landscape, the state cabinet convened in Patna on Thursday and cleared a comprehensive series of proposals spanning industrial incentives, governance reforms, and social welfare enhancements. The meeting resulted in the approval of 32 distinct proposals, signaling a multi-pronged approach to development and administration.
Major Industrial Incentives for Global Capability Centers and Semiconductor Manufacturing
The cabinet gave its nod to substantial subsidy packages designed to attract multinational corporations and Indian companies to establish Global Capability Centers (GCCs) within Bihar. According to Industries Department Secretary Kundan Kumar, these incentives are structured to be among the most competitive in the country.
The subsidy framework for GCCs includes:
- Capital expenditure support amounting to 30% of the total investment, with an upper limit of Rs 50 crore
- Salary-linked incentives that provide higher benefits for employees holding Bihari domicile
- Comprehensive rental subsidies to reduce operational costs
- Special incentives for research and development activities to foster innovation
Kumar emphasized that these measures are specifically designed to create new employment avenues for the state's talented youth while positioning Bihar as an attractive destination for knowledge-based industries.
Semiconductor Manufacturing: Dovetailing State and Central Subsidies
In a parallel initiative to boost high-tech manufacturing, the cabinet approved incentives for semiconductor fabrication units. Kumar explained the unique subsidy structure: "The central government provides 50% subsidy on capital expenditure for such units. The Bihar government will supplement this by offering 60% of the subsidy amount that the Centre provides to the concerned company."
Given that semiconductor manufacturing typically requires investments exceeding Rs 10,000 crore, this coordinated subsidy approach aims to make Bihar competitive for these capital-intensive projects. Similar to GCCs, semiconductor units will benefit from rental subsidies and salary-linked incentives, with preferential treatment for local recruitment in accordance with the state's domicile policy.
The cabinet also extended comparable incentive packages to electronic component manufacturing units, creating a comprehensive ecosystem for electronics manufacturing in the state.
Governance Reforms: Social Media Guidelines for Government Employees
In a move to maintain workplace decorum and prevent potential controversies, the cabinet approved detailed guidelines proposed by the General Administration Department. These regulations prohibit government employees from posting provocative content on social media platforms regarding workplace matters, government policies, and other sensitive issues.
General Administration Department Additional Chief Secretary B Rajender clarified that violations of these guidelines would invite punitive action, though specific disciplinary measures were not detailed in the announcement.
Enhanced Support Under Mahila Rojgar Yojana
The cabinet demonstrated its commitment to women's economic empowerment by approving a significant enhancement to the Mahila Rojgar Yojana. Cabinet Secretariat Department Additional Chief Secretary Arvind Chaudhary revealed that women beneficiaries who previously received Rs 10,000 to initiate small businesses or trade activities would now be eligible for an additional Rs 2 lakh.
"So far, 1.56 crore women have received the initial Rs 10,000 payment," Chaudhary noted. "The supplementary Rs 2 lakh will be disbursed following a thorough assessment of the economic activities undertaken by these beneficiaries."
This enhanced financial support aims to scale up women-led enterprises and strengthen their sustainability in the competitive market environment.
Legislative and Administrative Approvals
The cabinet also addressed matters pertaining to the state legislature, whose budget session is scheduled to commence on February 2 and conclude on February 28. While specific details of these legislative proposals were not immediately disclosed, their inclusion among the 32 approved items indicates comprehensive preparation for the upcoming parliamentary proceedings.
Industries Secretary Kumar concluded with an optimistic appeal to potential investors: "I would assert that our subsidy provisions surpass those offered by any other state in India. There exists tremendous potential for such investments, and we urge investors to capitalize on the opportunities available in Bihar."
This comprehensive policy package represents Bihar's strategic push to attract high-value investments while strengthening governance frameworks and supporting grassroots economic initiatives.
