The Bihar Industrial Area Development Authority (BIADA) is a statutory body established by the Government of Bihar under the Bihar Industrial Area Development Authority Act, 1974. It is responsible for the development, management, and promotion of industrial zones across the state. BIADA functions as the nodal agency for allotting industrial land, developing infrastructure, and facilitating investment in Bihar's industrial clusters.[1]
BIADA was created in 1974 through a state legislative act with the objective of promoting industrialization in Bihar. The authority was vested with corporate powers, including land acquisition, infrastructure development, and the ability to enter into contracts, to enable the state to attract investment and accelerate economic growth.[2]
Objectives and functions
The core mandate of BIADA includes:
Identification and development of industrial sites.
Creation of basic infrastructure such as roads, power, and water supply.
Allotment of land and sheds to entrepreneurs and companies.
Preparation of perspective plans for industrial expansion.
Organizing workshops, roadshows, and providing facilitation services for investors.[3]
Amendment in Bihar Industrial Investment Promotion Policy, 2016
2020
15
Allotment Surrender Facilitation Policy
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Key projects and initiatives
Mega Food Park, Motipur - Muzaffarpur
BIADA is facilitating the development of the Mega Food Park at Motipur, Muzaffarpur, spread over 78 acres (with a possible expansion to 134 acres). The project involves an investment of approximately ₹400crore and is expected to host around 30 food processing units, generating nearly 5,000 jobs. It will focus on the processing of regional produce such as Shahi litchi, mango, and banana.[5][6]
Integrated Manufacturing Cluster, Gaya
Through its special purpose vehicle Bihar Integrated Manufacturing City Gaya Limited (BIMCGL), BIADA is developing an Integrated Manufacturing Cluster (IMC) at Gaya under the Amritsar–Kolkata Industrial Corridor (AKIC).
Spread over 1,670 acres, the project has received environmental clearance.
A master plan has been approved and infrastructure tenders are being issued.[7][8]
FULL SCALE LAYOUT OF MEGA FOOD PARK & IMC GAYA
Investment incentives
Under the Bihar Industrial Investment Promotion Package 2025, BIADA offers:
Free land allotment (subject to conditions).
Subsidies on EPF, ESI, and GST.
Regulatory and administrative facilitation for investors.[9]
Expansion of Industrial Areas
In September 2025, the Bihar Cabinet approved an investment plan of ₹4,673.45crore to expand industrial areas across 26 districts, covering 10,582.35 acres. [10]
In August 2025, the Bihar state cabinet under Chief Minister Nitish Kumar approved the Bihar Industrial Investment Promotion Package 2025 (BIPPP-2025) to spur industrial investment and create substantial employment in the state. [11][12]
Provisions
Category
Provision
Details
Industrial land incentives
Investment of ₹100crore + 1,000 jobs
Up to 10 acres of free land
Investment of ₹1,000crore or more
Up to 25 acres of free land
Fortune 500 companies
Up to 10 acres free (token fee of ₹1)
Financial incentives (choose one)
Interest subvention
Up to ₹40crore + 100% SGST exemption
SGST reimbursement
14-year reimbursement up to 300% of project cost + 20–30% capital subsidy
Capital subsidy
Up to 30% of the approved project cost
Additional incentives
Export promotion
₹40lakh per year for 14 years
Employment/skill support
₹5,000 per worker/month with 300% EPF/ESI support, or ₹2,000 per worker/month with 100% EPF/ESI; skill development aid ₹20,000 per worker
Environmental protection
25% reimbursement (up to ₹1crore) for pollution control infrastructure
Renewable energy usage
20% subsidy up to ₹6lakh
Other assistance
Stamp duty and land conversion fee waivers; support for patents, certifications, and private industrial parks
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