New Delhi: In a bid to boost industrial development in the state, the Bihar government has introduced Exit Policy 2025 under its Industry Promotion Initiative, allowing entrepreneurs to return land allotted for closed industrial units to Bihar Industrial Area Development Authority (BIADA) and reclaim a portion of their deposited lease amount.
The policy was formally approved in the 93rd BIADA Board of Directors meeting on 11 February, 2025. With an application deadline of 31 December, 2025, the initiative is expected to unlock industrial land for new businesses, particularly for investors associated with Bihar Business Connect.
The Exit Policy-2025 applies to industrial units with valid allotment, and those whose allotment was cancelled but BIADA has not yet taken possession of the land. Besides, units that have challenged their cancellation in court can also apply, if they withdraw their legal petitions.
However, it does not apply to units where the lease has expired or land has already been transferred to a third party.
Entrepreneurs returning land under the policy will receive a 10 percent refund, if the unit was non-operational for one-three years, 15 percent when non-operational for three-five years, and 20 percent if the time exceeds five years.
Once an application is approved, entrepreneurs will have three months to remove any machinery, structures or assets from the land. If they fail to do so, BIADA will auction the remaining assets, deducting the expenses from the refund amount.
A special BIADA committee, headed by its managing director, will evaluate each application.
The Exit Policy-2025 was a key demand raised in the last Udhami Panchayat, as highlighted by Chief Secretary Amrit Lal Meena. By freeing up unused land, the policy aims to attract new investors, create employment opportunities and accelerate Bihar’s industrial growth.
Also Read: ‘Sentiments of 140 cr Indians converged at same place, same time’—Modi writes on Mahakumbh