Bihar Sugarcane Industry Investment Promotion Policy-2026

A five-year window to build Bihar's next sugar & bioenergy ecosystem

Explore incentives

Bihar Sugarcane Industry Investment Promotion Policy-2026

Bihar: Investing in Growth, Powered by Sugarcane.

One integrated policy for Sugar Complex (Sugar Mill, Ethanol, Co-generation and Compressed biogas) —with capital support, tax reimbursements and land concessions.

₹70 Crbase grant
for new mills
100%Net SGST
for 5 years
₹1token lease
on eligible land

Operational Sugar Mills10
Installed Capacity65,450 TCD
Distillery Capacity530 KLPD
New Mills Envisioned25

Bihar sugarcane industry at a glance

Deep agricultural roots.
A new industrial horizon.

Bihar is transforming from a traditional sugar-producing state into an integrated Sugar–Ethanol–Power–Biogas ecosystem. Backed by abundant sugarcane resources, progressive industrial policies, and growing biofuel demand, the state offers significant opportunities for investors across the value chain. The Government of Bihar is actively promoting investments in sugar mills, ethanol distilleries, cogeneration power plants, compressed biogas (CBG) facilities, and allied industries

Operational sugar mill Proposed district Proposed coverage

30,000 acres planned cane area per new mill

130 days target crushing season

One crop.
Many possibilities.

Build an integrated sugar complex where sugar, ethanol, clean power and CBG create shared prosperity across Bihar.

Policy at a glance

Support designed around your project.

Choose a project type to see the headline eligibility and financial assistance under Policy 2026.

FLAGSHIP SUPPORT

Build a new integrated sugar mill

A capacity-linked grant creates a clear runway for larger, efficient greenfield projects.

Minimum eligibility3,500 TCD
PLUS, WHERE APPLICABLE
100% Net SGST reimbursement for 5 years
100% stamp, registration & land-conversion fee reimbursement
Concessional government land for eligible new mills

Indicative incentive estimator

Run the first numbers.

Get a quick, policy-based estimate before preparing your detailed proposal.

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Important: Capital and interest assistance together cannot exceed 33% of the approved project cost.

Indicative headline support100 crore
Eligible capacity
₹70 Cr base grant + ₹30 Cr capacity-linked grant

Indicative estimate only. Excludes SGST, fee reimbursements and the value of land concessions.

Investor application readiness

Build your project dossier.

Your checklist0 / 8 ready
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Prepare these core document groups before approaching the department. Tick items as your team completes them.

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Before filing: This is an indicative investor-readiness checklist based on the supplied Policy 2026 package. The final application form, detailed departmental guidelines and project-specific approvals will determine the official document requirements.

Government action plan

Department of Sugarcane Industries, Govt. of Bihar is undertaking active programme

Sugarcane industries department sets out an active programme for mill revival, cane development, investor engagement and institutional partnerships.

  1. 01
    Policy activation

    Approval, notification and investor outreach for the integrated Policy 2026.

  2. 02
    Cane-area expansion

    Special campaigns, free seed for new areas and farmer support of ₹10 per quintal.

  3. 03
    Priority revival

    Work targeted to begin at Sakri, Raiyam,Sasamusa and others location.

  4. 04
    Research partnerships

    Collaboration proposed with Sugarcane Breeding Institute, Coimbatore and IIT Patna.

Contact Us

Phone 0612-2215788
Address

Sugarcane Industries Department, Government of Bihar
Vikas Bhawan, Nehru Path, Patna-800015