Patna: In a significant move to revitalize industrial growth in the state, the Government of Bihar has introduced the Exit Policy-2025 under its Industry Promotion Initiative. This policy enables entrepreneurs to return land allotted for closed industrial units to Bihar Industrial Area Development Authority (BIADA) and reclaim their previously deposited lease amount.
The 93rd meeting of BIADA’s Board of Directors, held on 11 February, 2025, formally approved the policy, marking a crucial step towards the optimum utilization of industrial land by facilitating the establishment of new industries on the sites of defunct units. The last date for application under this policy is 31 December, 2025.
Eligibility Criteria:
This policy applies to:
Industrial units whose allotment is currently valid.
Units that have challenged their allotment cancellation in the Appellate Authority, High Court, or Supreme Court. Such units can avail of this policy by withdrawing their legal petitions.
Units whose allotment has been canceled but BIADA has not yet taken possession of the land.
The allotment or lease must be valid on the date of application.
Exclusions:
This policy will not apply to:
Units whose allotment or lease period has expired
Units where the land has already been transferred or allotted to a third party.
Implementation Framework of the Exit Policy:
Entrepreneurs returning land under this policy will receive a refund after deducting a proportionate amount based on the duration for which they held the lease. The refund will be calculated according to BIADA’s prevailing land rate on the date of application. The refund structure is as follows:
Industries that have remained non-operational for 1 to 3 years: 10% of the deposited amount will be refunded.
Industries non-operational for more than 3 years but less than 5 years: 15% of the deposited amount will be refunded.
Industries non-operational for over 5 years: 20% of the deposited amount will be refunded.
An 18% GST will be applicable on the refunded amount. Additionally, if the unit has any outstanding dues—whether from electricity providers, banks, financial institutions, or any government department, including BIADA—these liabilities will be deducted before the final settlement.
The date of non-functioning of a unit will be determined based on inspection reports or the assessment of the Deputy General Manager, Regional Manager, or Assistant Regional Manager of BIADA.
Required Documents for Application:
Original registered lease deed and allotment letter
No Objection Certificate (NOC) or dues clearance certificate from banks or financial institutions. If no loan has been availed, an affidavit stating the same must be submitted.
Dues clearance certificate or updated electricity bill from the electricity provider.
Affidavit confirming that the unit has no outstanding dues with any bank, financial institution, electricity company, or government department.
Three-Month Grace Period for Asset Removal
Once the application is approved, the industrial unit will be granted a three-month grace period to remove any plant, machinery, or structures from the land. After this period, the ownership of the land will be formally transferred to BIADA.
If the unit fails to clear the land within the stipulated timeframe, the government will auction the remaining structures, and the cost incurred in this process will be deducted from the refund amount.
Refund Payment in Three Installments
The refund amount will be disbursed in three installments as follows:
40% of the refund amount will be paid within four months of BIADA receiving possession of the land.
30% of the refund amount will be paid after an additional four months.
The remaining 30% will be paid eight months after possession is taken.
Special Provisions for Newly Formed Units
Industrial units that were allotted land under BIADA Land Allotment Policy, 2002 and were unable to establish their industry within the stipulated timeframe will also be eligible for this policy. For such units:
A proportional deduction based on the duration of land allotment will be applied.
10% of the total paid amount for land will be deducted, along with applicable taxes.
If any installment is pending, an additional 2% penalty on the outstanding amount will be charged.
If the application is approved, the unit must remove all structures within three months.
Application Process and Decision Authority
Applications under this policy must be submitted to the Executive Director (North/South) at BIADA Headquarters, along with all required documents. A special committee, chaired by the Managing Director of BIADA, has been constituted to review and approve applications. The decision of this committee will be final and binding.
Chief secretary shri Amrit Lal Meena 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 Exit Policy-2025 is a significant initiative by the Government of Bihar aimed at revitalizing industrial areas and attracting new investments. By ensuring the optimal use of industrial land, this policy will contribute to the economic growth and industrial development of the state.
