Patna: In what is arguably the first such move in India, Bihar govt has decided to provide a grant of Rs 14 crore per annum for five consecutive years to investors willing to set up a new sugar mill in the state. The sugar mill should have a minimum capacity of 3,500 tonne crushing per day (TCD).“The total grant of Rs 70 crore will be paid in a period of five years in equal annual instalment of Rs 14 crore, as part of the state govt’s recently-launched Bihar Sugarcane Industry Investment Promotion Policy-2026. The first instalment of Rs 14 crore will be paid just one month after the new mill becomes operational,” state sugar cane commissioner Anil Kumar Jha told TOI on Saturday.Under the policy, investors will also receive Rs 2 crore for every additional 100 TCD of capacity beyond the base capacity of 3,500 TCD, Jha said.The govt has linked land support to plant size. An investor setting up a 5,000 TCD sugar mill will be eligible for up to 40 acres of land on lease for a token payment of Re 1. For a new mill with 3,500 TCD capacity, up to 25 acres will be allotted on the same terms.The policy also provides 100% reimbursement of registration fees and stamp duty payable on the purchase of land required for setting up new sugar mills.Operational sugar mills will get incentives for expansion. The govt will provide Rs 15 crore for capacity expansion of 1,000 TCD. After that, an additional Rs 1.5 crore will be given for every further 100 TCD capacity expansion.These provisions form key parts of the Bihar Sugarcane Industry Investment Promotion Policy-2026, which came into force a few days ago.Bihar is the only state to launch a standalone investment promotion policy exclusively for the sugar cane industry. Jha said other states include sugar cane-related incentives within their broader industrial policies, while Bihar has created a separate policy for the sector. He added the incentives and land support offered by Bihar are far better than those available in any other state.The policy is designed to help the state govt achieve its goal of establishing 25 new sugar mills and restarting nine closed mills across Bihar within five years. It also aims to provide employment to 1 crore youths in five years.
