The Bihar government has introduced major changes to its Tourism Policy 2023 to boost the state’s tourism sector and create inclusive employment opportunities. Announced on March 21, 2025, the revised policy aims to attract private investment in hotel infrastructure while expanding incentives to encourage greater participation from investors and support employment for people with disabilities.
Tourism Minister Raju Kumar Singh highlighted the government’s commitment to modernizing Bihar’s hospitality sector and making the policy more flexible. He stated that these amendments would promote investments in untapped tourist destinations across the state. The revised policy reduces the minimum investment threshold, enabling investors to set up three-star hotels with a minimum investment of ₹7.5 crore in district headquarters and two-star hotels with ₹5 crore in sub-divisional towns and blocks. The previous requirement of ₹10 crore investment for four-star hotels will still apply to prominent tourist hubs like Patna, Gaya, Bodhgaya, Nalanda, Rajgir, Muzaffarpur, Bhagalpur, and the Valmiki Tiger Reserve. These key destinations will continue to receive a 25% capital subsidy, with an additional 5% for major locations.
In addition, the government has extended the SGST reimbursement period from five years to seven years, recognizing the time it takes for hospitality projects to become fully operational. This change is expected to build long-term investor confidence and encourage private sector participation in the state’s tourism development initiatives.
The policy emphasizes employment generation, especially for local residents. Hotels that employ locals will receive 100% reimbursement of ESI and EPF contributions or ₹3,000 per employee per month, whichever is lower. An additional incentive of ₹1,500 per month will be provided to establishments hiring individuals with disabilities from the state. This measure underscores the government’s focus on inclusive growth and its commitment to creating equitable opportunities for all citizens.
To further improve Bihar’s hospitality infrastructure, the government has issued Requests for Proposals (RFPs) for developing hotels on three strategic sites: Hotel Patliputra Ashok, Bankipur Bus Stand, and Sultan Palace. These projects, which will be undertaken under the Public-Private Partnership (PPP) model, are expected to attract significant investment, with tenders open until April 21, 2025.
As part of its focus on cultural and religious tourism, the government has acquired 50.50 acres of land in Punauradham, Sitamarhi—believed to be the birthplace of Sita—for ₹120.58 crore. This site will be developed with modern tourism amenities to enhance visitor experiences. The state is also working on upgrading various tourism circuits, including the Ramayan, Buddhist, Sufi, Gandhi, Sikh, and Jain circuits, to showcase its rich heritage and draw more domestic and international tourists.
Bihar State Tourism Development Corporation (BSTDC) Managing Director Nand Kishor and Tourism Department Secretary Lokesh Kumar Singh, who were present at the announcement, reiterated the government’s vision of transforming Bihar into a leading tourism destination. They stressed that these measures would unlock the state’s potential, promote sustainable economic growth, and ensure that the benefits of tourism reach all sections of society.
Source: The Indian Express
