Bihar Unveils Exit Policy-2025 to Reclaim Closed Industrial Lands for New Ventures

To encourage industries in the state, the state government has come up with a new exit policy. Under this, entrepreneurs can hand over the land of closed industrial units back to BIADA and withdraw their lease amount deposited earlier. A decision related to this was taken in the 93rd meeting of the Board of Directors of BIADA (Bihar Industrial Area Development Authority) held on February 11 and approval was given to implement the Exit Policy-2025.

Chief secretary said that this demand was raised in last UDHAMI panchayat. This is likely to unlock significant industrial land for new industries, particularly for new MOU holders of bihar business connect.

The main objective of this new policy is to use the land of closed units in industrial areas. Entrepreneurs can return the land allotted by BIADA. This land will be allotted for setting up new industrial units.

The last date for application under this policy is 31 December 2025.

Eligible units under this policy: –

– All such units whose allotment is currently valid

– Such units which have filed an appeal in the Appellate Authority, High Court and Supreme Court against the cancellation of allotment. These people can take advantage of this policy as per rules by withdrawing their suit petition.

– All such units whose allotment has been cancelled but BIADA has not yet taken possession.

– In all these cases, the period of allotment or lease must be valid on the date of application.

This policy will not apply to them:

– Those whose allotment or lease period has expired.

– If the land has been allotted to a third party.

This is how the policy will be implemented:

The entrepreneur on whose behalf the land is being returned will be refunded the remaining amount by proportionately deducting the lease or allotment period used by him on the basis of the current BIADA rate of that plot (on the date of application for land return) in the following manner –

1. In the case of land of non-working industries for a period of 1 to 3 years (except newly allotted unit), 10 percent amount will be returned.

2. 15% amount will be returned in case of non functional industries for a period of more than 3 years and less than 5 years.

3. 20% amount will be returned in case of non functional industries for a period of more than 5 years.

18% GST will be payable on all amounts. Apart from this, in case of dues of any electricity institution or bank or financial institution or any other department of the government or BIADA, the remaining amount will be paid to the entrepreneur only after deducting it.

The date of non functional will be determined only on the basis of inspection report or report of the concerned Deputy General Manager or Regional Manager or Assistant Regional Manager.

The units will have to provide these documents:

– Original copy of the registered lease deed and allotment letter of the unit

– No objection or dues free certificate of financial institution or bank. If no loan has been taken, then affidavit of this

– Certificate without dues from the electricity company or updated electricity bill

– This certificate will also have to be given that this unit does not have any dues to any financial institution or bank or electricity company or any government department

3 months time will be given:–

Under this policy, after the application is approved, the concerned industrial unit will be given three months time from the date of approval. During this time they should remove their structure or plant. After this, the ownership of the land will have to be handed over to BIADA. If the unit does not remove its plant within the stipulated period, then the government will auction it and the amount of expenditure incurred in this will also be deducted from the concerned unit.

Payment of amount will be done in three installments:–

Under this policy, the amount will be paid in three installments to the units with approved applications. 40 percent will be paid within four months of getting the land to BIADA and the remaining amount will be paid 30 percent after four months and then 30 percent after eight months.

This policy for newly formed units: –

The newly formed units, which are working under BIADA Land Allotment Policy, 2002 and are not able to establish the industry within the stipulated time limit or due to any other reason, can also take advantage of this policy. For them, a proportional deduction of the lease or allotted period used at their level will be made. Apart from this, the remaining amount will be paid after deducting 10 percent of the total amount paid in the land item and the applicable tax. If any installment of the concerned entrepreneur is pending, then in such a case an additional 2 percent of the outstanding installment amount will be deducted as a penalty. In case the application is approved, all the structures present on the land will have to be removed within 3 months.

The application can be submitted in the office of Executive Director North or South in BIADA Headquarters. All the necessary documents related to it will also have to be attached with the application.

A committee has been formed under the chairmanship of the Managing Director to consider any application, whose decision will be considered final and valid.