Bihar govt amends its “tourism policy 2023” to promote hotel & hospitality sector, employment

Patna, Apr 11

 With a view to boost tourism sector in Bihar, the state government has brought certain changes in Bihar Tourism Policy 2023 to attract investment in hotel & hospitality sector.

The policy aims to incentivise hotel sector to boost investment and promote employment opportunities in the sector.

As per the amendment introduced in the tourism policy on March 21, 2025, the government has reduced the investment limit from Rs 10 crore to Rs 5 crore in “star rated” hotels in the state besides allowing the investors to set up three star and two rated star hotels to avail the benefit of tourism policy, tourism minister Raju Kumar Singh said while talking to reporters here.

As per tourism policy 2023, earlier investors willing to avail the benefit of policy, they will have to set up a four star rated hotels in the state with a minimum cap of investment being Rs 10 crore, Singh said adding that after talking to stakeholders the government brough changes in the policy to attract more investment in other tourist destinations of the state.

The mandatory criteria of making a minimum investment of Rs 10 crore in “four star” rated hotels/resort/heritage hotels in major tourist destinations like Patna, Gaya, Bodhgaya, Nalanda, Rajgir, Muzaffarpur and Bhagalpur- will be in place to avail 25 per cent capital subsidy, said Singh who was accompanied by department’s secretary Lokesh Kumar Singh at the press conference.

He also made it clear that these above major tourist destinations including Valmikinnagar Tiger Reserve (VTR) will get another five per cent capital subsidy.

As per amendment, now the investors can set up “three star” hotels with a minimum investment of Rs 7.5 crore in district headquarters town while “two star” hotels with a minimum investment Rs 5 crore in other towns of sub-divisions and blocks of the state in order to reap the benefits of the policy.

The policy earlier envisaged the setting up of only “four star” rated hotels across the state to avail the benefit but now it has introduced “three and two star” rated hotels with minimum investment being Rs 7.5 crore and Rs 5 crore respectively to be set up in the state.

“The government is committed to developing tourism in the state for which it is working on Ramayan circuit, Budh circuit, Sufi circuit and other circuits (Gandhi circuit, Sikh circuit, Jain circuit), the minister asserted and further stated that 50.50 acres of land at Punauradham in Sitamarhi district, the birth place of Sita, has been acquired at an expenditure of Rs 120.58 crore to provide various tourist amenities in the temple premises.

Speaking on the occasion, Secretary Lokesh Kumar Singh said that earlier there was a provision of giving SGST reimbursement upto 80 per cent for five years for setting up hotels, resorts, heritage hotels but the government has extended the period of SGST reimbursement for upto seven years keeping in mind their grievance that it takes time, at least two three years, to start hotels.

In order to promote job opportunities for the people of the state, the government will give 100 per cent or Rs 3000 per month, whichever is less, as its contributions towards ESI, EPF if the hotels, resorts/ heritage hotels employ people from the state.

The government will give Rs 1500 per month to the firm employing disabled persons from the state in order to incentivise the sector, the Secretary said adding that this will be in addition to Rs 3000.

“The move to incentivise the sector for employing people from the state establishes government’s policy of inclusiveness and ‘growth with justice’,” Singh said.

The department has floated “Request For Proposal” for inviting tenders for constructing three hotels on the plots of hotel Patliputra Ashok, Bankipur Bus Stand and Sultan Palace on PPP mode in order to provide better and modern facilities to the tourists coming to Bihar, the Secretary said adding that tenders for these hotels will be invited upto April 21, 2025.

Bihar State Tourism Development Corporation (BSTDC) MD Nand Kishor was also present on the occasion.