Bihar Revises Tourism Policy 2023 to Attract Investment
INDIAN STATE BIHAR recently amended its Tourism Policy 2023 to increase investment and create jobs for people with disabilities, Indian Express reported. The changes focus on private investment in hotel infrastructure and broader policy incentives.
Bihar’s tourism minister Raju Kumar Singh said the state has lowered the minimum investment required to qualify for 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," he was quoted as saying. "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."
Under the revised policy, investors can build three-star hotels in district headquarters with a minimum investment of Rs 7.5 crore and two-star hotels in sub-divisional towns and blocks with Rs 5 crore, the report said. The Rs 10 crore requirement for four-star hotels remains for major tourist hubs like Patna, Gaya and Bodhgaya, which continue to receive a 25 percent capital subsidy, with an additional 5 percent for select locations.
The government has also extended state goods and services tax reimbursement from five to seven years, noting that hospitality projects take time to become operational.
The policy focuses on employment generation, offering 100 percent Employees' State Insurance and Employees' Provident Fund contributions or Rs 3,000 per employee per month, whichever is lower, for hotels that hire locals. Additionally, an incentive of Rs 1,500 per month will be provided for hiring disabled individuals from the state, reinforcing the government’s commitment to inclusive development and "growth with justice."
To modernize Bihar’s hospitality infrastructure, the government has issued Requests for Proposals for hotel construction at three strategic sites—Hotel Patliputra Ashok, Bankipur Bus Stand, and Sultan Palace—as public-private partnerships, the report said. Tenders will be accepted until April 21.
The government plans to develop tourism circuits such as Ramayan, Buddhist, Sufi, Gandhi, Sikh and Jain to highlight Bihar’s heritage and increase visitor numbers.
In February, Uttar Pradesh announced receiving hospitality investment proposals worth $12.2 billion over two years since introducing its 2022 tourism policy. The state aims to reach a $1 trillion economy by 2029, with tourism playing a key role.
