Patna: The state govt on Thursday approved the Bihar Sugar Cane Industries Investment Incentive Policy, 2026, becoming the first in the country to introduce a dedicated incentive framework for investors in the sugar industry.The policy offers a range of incentives to attract private investment, including leasing up to 40 acres of govt land at a token Re 1 for 30 years for setting up new sugar mills.Announcing the policy details, sugarcane industries minister Sanjay Kumar said investors will get 100% reimbursement of registration and stamp duty on land purchases and full reimbursement of SGST on sugar production for five years.The policy provides financial assistance of up to Rs 100 crore over five years for setting up a new sugar mill with a crushing capacity of 5,000 tonnes per day (TCD). Mills with a capacity of 3,500 TCD will be eligible for incentives of up to Rs 70 crore. Existing mills expanding capacity by at least 1,000 TCD will receive Rs 15 crore, with higher assistance for larger expansions.The govt has also announced support for distilleries, ethanol units, cogeneration power projects and compressed biogas (CBG) plants through subsidies, interest subvention and SGST reimbursements.Kumar said Bihar is also the first state to promote the concept of a modern sugar complex integrating a sugar mill with distillery, ethanol production, power generation and CBG facilities.Under Saat Nischay-3, the state aims to revive closed sugar mills and set up 25 new ones. The govt expects the policy to boost investment, generate jobs and strengthen the state’s sugar, ethanol and green energy sectors.
