In a move to boost the state’s tourism and hospitality sector, the Bihar government has amended its Tourism Policy 2023, making it more investment-friendly and to promote employment opportunities for people with disabilities. The changes announced on March 21 this year aim to attract greater private investment in hotel infrastructure and broaden the scope of incentives available under the policy.
Tourism Minister Raju Kumar Singh, while addressing a press conference, said the state has reduced the minimum investment requirement for availing benefits under the tourism policy. Investors can now set up three-star and two-star hotels to qualify for incentives, a shift from the earlier provision that mandated a minimum Rs 10 crore investment in four-star hotels.
“After discussions with stakeholders, we decided to make the policy more flexible. The new provisions will encourage investment in untapped tourist destinations across the state,” Singh added.
Under the revised policy:
- Investors can set up three-star hotels with a minimum investment of Rs 7.5 crore in district headquarters.
- Two-star hotels can be established in sub-divisional towns and blocks with an investment of Rs 5 crore.
- The earlier mandate of Rs 10 crore investment for four-star hotels still applies to major tourist hubs like Patna, Gaya, Bodhgaya, Nalanda, Rajgir, Muzaffarpur, Bhagalpur, and the Valmiki Tiger Reserve (VTR). These destinations will continue to enjoy a 25% capital subsidy, with an additional 5% for the key locations mentioned.
In a boost to long-term investor confidence, the government has also extended SGST reimbursement from five years to seven years, acknowledging that hospitality projects take time to become operational.
The policy also has a strong focus on employment generation. Hotels that employ locals will receive 100% ESI and EPF contributions or Rs 3,000 per employee per month, whichever is lower. Additionally, an incentive of Rs 1,500 per month will be provided for hiring disabled individuals from the state — a step that the government says reinforces its commitment to inclusive development and “growth with justice.”
To further modernise Bihar’s hospitality infrastructure, the government has floated Requests for Proposals (RFPs) for constructing hotels on three strategic sites — Hotel Patliputra Ashok, Bankipur Bus Stand, and Sultan Palace — under the Public-Private Partnership (PPP) mode. Tenders for these projects will be accepted until April 21, 2025.
Pointing to the state’s focus on religious and cultural tourism, Singh added that 50.50 acres of land at Punauradham in Sitamarhi, believed to be the birthplace of Sita, has been acquired for Rs 120.58 crore to develop tourism amenities.
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The government is also expected to further develop various tourism circuits, including the Ramayan, Buddhist, Sufi, Gandhi, Sikh, and Jain circuits, in an effort to showcase Bihar’s rich heritage and boost visitor numbers.
Bihar State Tourism Development Corporation (BSTDC) Managing Director Nand Kishor and Tourism Department Secretary Lokesh Kumar Singh were also present during the announcement.
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