In a strategic move to revamp and energize the tourism sector, the Bihar government has amended its Tourism Policy 2023 to attract greater investment in the hotel and hospitality industry. The revised policy, notified on March 21, 2025, aims to make hotel development more accessible while creating robust employment opportunities, particularly for locals and persons with disabilities.
Tourism Minister Raju Kumar Singh, in a press briefing, announced the key amendments, highlighting the government's intent to make Bihar a more tourist-friendly destination through infrastructural enhancement and investor-friendly initiatives.
Reduced Investment Threshold, Expanded Eligibility
Under the previous policy, investors had to invest a minimum of Rs 10 crore to establish four-star rated hotels to avail government incentives. The amended policy now allows:
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Four-star hotels in prominent tourist destinations like Patna, Gaya, Bodhgaya, Nalanda, Rajgir, Muzaffarpur, Bhagalpur, and Valmiki Nagar Tiger Reserve (VTR) with a minimum investment of Rs 10 crore.
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Three-star hotels in district headquarters with a reduced investment requirement of Rs 7.5 crore.
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Two-star hotels in sub-divisions and blocks with a minimum investment of Rs 5 crore.
The government has also announced a 25% capital subsidy for eligible projects. Additionally, for hotels established in major tourist destinations including VTR, an extra 5% capital subsidy will be granted, bringing the total to 30%.
Tax Reimbursements and Extended Support
To further support investors, the government has extended the State GST (SGST) reimbursement period from five years to seven years, acknowledging that hotel construction and operations typically take two to three years to become operational.
Employment Incentives for Locals and the Disabled
Emphasizing inclusive growth, the government has rolled out significant employment-based incentives:
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100% contribution or Rs 3,000/month (whichever is less) towards ESI and EPF for employees hired from Bihar.
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An additional Rs 1,500/month will be provided for each differently-abled employee hired from the state.
"This is not just a step towards tourism development but a move to ensure 'growth with justice', reflecting the government’s inclusive policy approach," said Secretary Lokesh Kumar Singh.
Focus on Religious and Cultural Circuits
The tourism department is actively working on developing major circuits such as the Ramayan Circuit, Buddhist Circuit, Sufi Circuit, Gandhi Circuit, Sikh Circuit, and Jain Circuit. A notable development is the acquisition of 50.50 acres of land at Punauradham in Sitamarhi, believed to be the birthplace of Sita, where Rs 120.58 crore is being invested to improve tourist amenities.
New Hotels Under PPP Mode
To further modernize tourist infrastructure, the department has floated Request for Proposals (RFP) for constructing three new hotels on prime government land at:
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Hotel Patliputra Ashok (site)
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Bankipur Bus Stand
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Sultan Palace
These projects will be developed through the Public-Private Partnership (PPP) model, with tenders open until April 21, 2025.
Bihar State Tourism Development Corporation (BSTDC) Managing Director Nand Kishor was also present during the announcement.