These days a new policy of the government has become a topic of discussion in Bihar. The state government is providing land at highly concessional rates to investors and institutions for various industrial, religious, social and infrastructure projects. In many cases this land has been given on long term lease for a symbolic amount of just Re 1. The government argues that this will attract investment, generate employment and accelerate the economic development of the state. Recently, many big names associated with sugarcane industry, religious institutions and energy sector have got such concessional lease. Let us know for which projects the Bihar government has till now allotted land at the rate of Re 1.
Samrat Chaudhary's Bihar government is preparing to implement “Bihar Sugarcane Industry Promotion Policy-2026” to promote sugar industry and sugarcane based investment in the state. Under this policy, it has been proposed to give up to 40 acres of land to investors on a 30-year lease at a token amount of just Re 1. The government aims to attract new sugar mills, ethanol plants, bio-energy projects and sugarcane-based industries. Bihar was once counted among the major sugar producing states of the country, but in the last few decades many sugar mills were closed. The government believes that the new policy will open the way for new investment along with the revival of closed mills. If investment comes in on a large scale, then ethanol, biofuel and sugar industries can get a new impetus in the state. Sugarcane farmers are expected to get its direct benefits in the form of better market and employment to the youth.
Who got the land on lease of Re 1?
| who got it | how much did you get | How long did you get it for? |
| sugarcane industry investors | up to 40 acres of land | 30 year lease |
| Isha Foundation | about 17 acres of land | —- |
| TTD | 10.11 acres of land | 99 year lease |
| Adani Power | 1,000-1,020 acres of land | 25 year lease |
The state government has also adopted a similar concessional policy for social and spiritual projects. The government is preparing to give about 17 acres of land in Digha of Patna and Tarapur of Munger to Isha Foundation on a symbolic lease amount of Rs 1 each. Earlier, the responsibility of modernization and operation of Bans Ghat cremation ground of Patna has also been handed over to Isha Foundation. Developed at a cost of about Rs 90 crore, this modern crematorium has facilities for cremating 18 dead bodies simultaneously, air-conditioned waiting room and other modern arrangements. However, here people are charged Rs 3,500 to Rs 5,000 for funeral services. The government says that the quality of public services can be improved with the participation of religious and social institutions.
Taking another major decision in December 2025, the Bihar government had allotted 10.11 acres of land to Tirumala Tirupati Devasthanam (TTD) for the construction of Lord Sri Venkateswara Temple in Mokama Khas area of Patna district. This land was given on a long lease of 99 years at a symbolic rent of only Re 1 per year. The government believes that this project will promote religious tourism in Bihar and benefit the local economy. TTD is working on a plan to establish temples of Lord Venkateswara in different states of the country so that devotees can get facilities like the famous Tirupati temple of South India in their own states. This temple to be built in Bihar can be included in the major religious places of the state.
The biggest case of concessional land allotment came to light in September 2025, when the Bihar government decided to lease about 1,000 to 1,020 acres of land to Adani Power Limited for the proposed thermal power project at Peerpainti in Bhagalpur district. This land was made available at a symbolic rate of Re 1 per acre per annum for a period of 25 years. It is proposed to set up a 2,400 MW capacity ultra-supercritical thermal power plant here, in which three units of 800-800 MW will be installed. This project, with an estimated investment of around Rs 25,000 to 29,000 crore, is being considered as one of the biggest private investments in Bihar. A power supply agreement has also been signed between the state government and the company, under which Bihar is expected to get 2,400 MW electricity. The government claims that during the construction and operation of the project, thousands of direct and indirect jobs will be created and industrial activities in East Bihar will get a new impetus.
At present it is clear that the Bihar government is using land as a big incentive to promote investment, industry, religious tourism and social projects. From the sugarcane industry to the energy sector and religious institutions, the symbolic lease model of Re 1 seems to be a part of the state's new development strategy. The government hopes that this will increase investment, create employment opportunities and give a new impetus to the economy of Bihar. In the coming years, this model can play an important role in determining the direction of development of industry, tourism and infrastructure in the state.
