Bihar Agri Investment Promotion Policy (BAIPP)

"To encourage and promote agribusiness sector in Bihar through creating an enabling environment for the same and enhancing the level of processing, storage, waste reduction, value addition and export promotion thereby generating higher income returns to farmers and creating more employment opportunities"

Bihar Agri Investment Promotion Policy (BAIPP)

About BAIPP

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Bihar Agri Investment Promotion Policy provisions capital subsidy to the eligible individual investors / entrepreneurs or registered farmer-based companies for setting up / modernization / diversification/ expansion of agro processing units in the identified seven in the state of Bihar.The investors/ entrepreneurs may set-up their units as Proprietorship, Partnership firm,Limited Liability Partnership (LLP), Company including Farmer Producer Company (FPC).

The seven focus sectors covered under BAIPP are – makhana, honey, fruits & vegetables, maize, seeds, medicinal & aromatics plants and tea.

Share of capital subsidy to the eligible investors will be @15% of the eligible project cost to individual investors/ partnership/companies/LLP and @25% to Farmer Producer Companies (FPCs).Scheduled Castes, Scheduled Tribes and Extremely Backward Classes (EBC) investors, will receive additional 5% capital subsidy and Women entrepreneurs, acid attack victims, war widows, differently abled and third gender investors can avail 2% additional capital subsidy.

The projects with minimumapproved eligible project cost of Rs. 0.25 cr. and maximum of Rs. 5 cr. shall be eligible for availing the benefits under this policy.

The Capital subsidy support shall be entirely credit linked and the term loan from the Bank/Financial Institution should not be less than 20% of the project cost.

Capital subsidy under the said policy is allowed for expansion/modernization of existing projects in the identified sectors, only if the existing capacity of the said project is increased by at least 25% by way of such modernization or expansion or diversification (definition of expansion and modernization same as BIIPP 2016).

Bihar Horticulture Development Society (BHDS), Agriculture Department, Government of Bihar will be the nodal agency for implementation and monitoring of this policy in the state.

The policy provisions under the current policy shall be available to investors in addition to the Bihar Industrial Investment Promotion Policy, 2016, but there shall be no overlapping supports, i.e. investors shall not be eligible to avail same type of incentives under both policies.

Other subsidies/grants/soft loans and other benefits as applicable in other schemes shall be valid for Agri industries and infrastructure established in the State of Bihar, however, the upper limit to receive benefit from all the permissible sources shall be capped as per the following specifications:

S.No.	Type / Category of Investor	Capping of incentives
1	Individual – General	50%
2	Individual – SC / ST / EBC	55%
3	Individual - Women, differently abled persons, war widows, acid attack victims and third gender investors	52%
4	FPC (Farmer Producer Companies)	60%

Objectives

	To promote and facilitate investment in agribusiness sector in Bihar through financial assistance and an enabling environment.
	To increase the level of processing, reduction of wastage, value addition and promote exports thereby resulting in overall development of agro processing sector.
	To extend financial assistance for establishment of new agro-processing units as well as technology upgradation and expansion of existing units in the State in the identified sectors of Agriculture.
	To enhance income of farmers through better returns gained through better processing of produce.
	To create employment opportunities through promotion of agro based industries.

Policy Documents, Guidelines and Brochures

Coverage

This policy shall be applicable in the entire state and considering the Bihar’s leading position across the country in terms of agri produce, the Policy identifies the following seven agribusiness sectors for extending the financial assistance.