In a move to improve the ease of doing business, the Bihar government has mandated a 30-day deadline for all clearances related to industrial investment proposals. Any proposal not decided upon within this timeframe will automatically receive “deemed approval”, making it legally binding.
Chief minister Samrat Choudhary announced the policy change on Tuesday, describing it as a decisive step to accelerate industrial growth and attract fresh investment into the state. “Only 30 days for approval of industrial setup – giving new speed to investment in Bihar!” Choudhary posted on X.
The amendment to the Bihar Industrial Investment Promotion Act, 2016, was formally approved by the state cabinet at a meeting chaired by the CM on Tuesday. The industries department had proposed the changes to address long-standing investor complaints about delays and multiple visits to various government offices.
Under the reworked policy, the State Investment Promotion Board (SIPB) secretariat has been designated as a fully empowered “single nodal agency”. Senior officers from technical and regulatory departments will now be deputed to the SIPB secretariat, functioning under the industrial development commissioner. This centralised mechanism is intended to eliminate the need for investors to shuttle between multiple departments for approvals.
The government will also implement uniform and transparent standard operating procedures (SOPs) for granting industrial approvals and licences. Officials said that the 30-day timeline will carry legal enforceability, with the SIPB empowered to issue “deemed clearances” in cases of delay or inaction. Such clearances cannot be reversed or reviewed later by the defaulting department.
The decision builds on efforts to convert investment commitments into actual projects on the ground. During the previous three years under former CM Nitish Kumar, the state had signed memoranda of understanding (MoUs) worth nearly ₹2.40 lakh crore. The current administration, led by Choudhary, is focusing on removing bureaucratic bottlenecks and introducing greater accountability to ensure these projects materialise.
In a press communique issued on Tuesday, Choudhary called the reform a “historic step” towards removing hurdles for investors. “Bihar is now open for business. We are committed to providing investors with a simple, transparent, and time-bound system so they no longer have to run from pillar to post,” he said.
Industry observers have welcomed the move, viewing it as a strong signal to both domestic and international investors. President of Bihar Industries Association (BIA) Ram Lall Khetan said that the amendments to the norms for investment proposal clearance amply suggest that the government is leaving no stone unturned to boost investors’ confidence, speed up project execution and generate large-scale employment opportunities in the state.
The BIA functionary said that the reforms are part of a broader strategy to position Bihar as a competitive industrial hub in eastern India, aligning its processes with the expectations of modern investors.
