BiharLogistics Subsidy | State Logistics Policy

State Logistics Policy of Bihar aims to enhance the logistic, transportation and supply chain infrastructure of Bihar. The goal of the Bihar Logistics Subsidy is to help boost the economic condition of the state, avail moving of goods across regions seamlessly, increase export and reduce transportation costs. The Bihar Logistics Policy helps industries and promotes commerce by giving job opportunities through improvement of the road, railway, and port linkages. Bihar State Logistics Subsidy attracts investment, streamlines business activities and increases competitiveness in the state with compliance to the National Logistics Policy.

The State Logistics Subsidy in Bihar offers several benefits to enhance the logistics sector and overall economic growth of the state which are listed below:

• Reduced Logistics Costs: Companies benefit from lower transport costs through better supply systems that enhance transport, thus increasing competition in domestic and export markets.
• Attract Investment: The Bihar Logistics Subsidy improves physical facilities and gives incentives to businesses, which in turn brings investment in manufacturing and trade sectors.
• Job Creation: The State Logistics Policy in Bihar makes progress in the logistics transport system, enhancing employment in logistics, transport, warehouses, and related sectors.
• Improve Infrastructure: The Bihar Logistics Policy is primarily focused on enhancing logistics infrastructure, including roads, ports, and airports, to enable easy and effective movement of goods.
• Sustainability: The State Logistics Subsidy in Bihar encourages better practices that minimize negative environmental impacts in the state’s development efforts.

The Bihar Logistics Policy provides maximum subsidy rates and amount to businesses to ensure prevention of exploitation or unfairness of the intermediary. The State Logistics Subsidy in Bihar is categorized under 6 programs which of listed below:

• Capital Investment Subsidy - Logistics Parks

  Category	Subsidy Rate	Subsidy Amount	Limitations
  a) Proposals received during first two years from the date of notification of Bihar Logistics Policy 2023	20% of Fixed Capital Investment (FCI)	Up to Rs 20 Crore	Whichever is lower
  b) Proposals received from third year onwards from the date of notification of Bihar Logistics Policy 2023	15% of Fixed Capital Investment (FCI)	Up to Rs 10 Crore

• Interest Subvention - Logistics Parks

  Subsidy Rate	Subsidy Amount	Limitations
  a) Proposals received during first two years from the date of notification of Bihar Logistics Policy 2023	10% or actual rate of interest on term loan, whichever is lower, to the extent of 50% of Fixed Capital Investment	Up to Rs 60 Crore
  b) Proposals received from third year onwards from the date of notification of Bihar Logistics Policy 2023	10% or actual rate of interest on term loan, whichever is lower, to the extent of 40% of Fixed Capital Investment	Up to Rs 50 Crore

• Green Logistics - Promotion of Electric Bicycles for Last-Mile Deliveries

  Subsidy Rate	Subsidy Amount	Limitations
  ICD (Inland Container Depot) - Proposals received during first two years from notification	20% of FCI	Up to Rs 10 Crore
  ICD - Proposals received from third year onwards	15% of FCI	Up to Rs 8 Crore
  Warehouse - Proposals received during first two years	20% of FCI	Up to Rs 6 Crore
  Warehouse - Proposals received from third year onwards	15% of FCI	Up to Rs 4 Crore
  Cold Chain - Proposals received during first two years	20% of FCI	Up to Rs 4 Crore
  Cold Chain - Proposals received from third year onwards	15% of FCI	Up to Rs 3 Crore
  CFS (Container Freight Station) - Proposals received during first two years	20% of FCI	Up to Rs 3 Crore
  CFS - Proposals received from third year onwards	15% of FCI	Up to Rs 2 Crore

• Interest Subvention - Logistics Units

  Subsidy Rate	Subsidy Amount	Limitations
  a) Proposals received during first two years from the date of notification	10% or actual rate of interest on term loan, whichever is lower, to the extent of 50% of FCI	Up to Rs 30 Crore
  b) Proposals received from third year onwards from the date of notification		Up to Rs 20 Crore

• Capital Investment Subsidy - Multi Modal Logistics Park

  Category	Subsidy Rate	Subsidy Amount	Limitations
  a) Proposals received during first two years from notification	20% of FCI	Up to Rs 25 Crore	Whichever is lower
  b) Proposals received from third year onwards from notification	15% of FCI	Up to Rs 15 Crore

• Interest Subvention - Multi Modal Logistics Park

  Subsidy Rate	Subsidy Amount	Limitations
  a) Proposals received during first two years from notification	10% or actual rate of interest on term loan, whichever is lower, to the extent of 50% of FCI	Up to Rs 60 Crore
  b) Proposals received from third year onwards from notification	10% or actual rate of interest on term loan, whichever is lower, to the extent of 40% of FCI	Up to Rs 50 Crore