Why Bihar is betting big on ethanol. Industries Minister Shreyasi Singh explains

It is more a matter of being equal to the task than viewing it strictly as a challenge. While industry is the nodal sector, other key departments — such as renewable energy, food processing, health, education, social welfare and tourism — are also driving substantial investment. Although compiling divergent data across departments is complex, the overwhelming response from investors suggests we may even exceed the target, with capital flowing swiftly into both the private and public sectors. The CM will reveal the final figures during Bihar Business Connect, tentatively scheduled for November.

Broadly speaking, we are working across three themes: moving from control to facilitation (a governance shift); one family, one entrepreneur (a grassroots commitment); and an industrial area in every district (the infrastructure promise).

* Has it been difficult to convince investors and get them to give up their inhibitions about Bihar?

It is true that Bihar has been treated as “badlands”, more so during the 1990s. The state crossed that phase and made rapid progress during former CM Nitish Kumar’s tenure. During my interactions with prospective investors in Delhi, Mumbai, Bengaluru or anywhere in the country, I tell them about Bihar’s vast untapped potential, mainly in food processing, tourism and hospitality. Second, I assure them that there would be no bureaucratic hurdles.

* Given the state’s current financial status, how are you preparing the land bank that requires a lot of money?

It is true that we have to purchase land from individual farmers, who are paid four times the circle rates in most instances. We have funds flowing in from the Centre by way of our share in Central taxes. The CM has reiterated that there is no fund shortage. We are also taking a Rs 25,000-crore loan to build infrastructure on acquired land to attract investment.

* The general critique of Bihar has been that the state does not have the required sources of raw materials to attract industry.

The industry and investment profile has changed over the years. We have received good investments in the steel, cement and food processing sectors. Then, there is immense potential in the electronics and IT sectors. But the real revelation has been garments and leather for Bihar.

* Which sectors are attracting the most interest? How has investment grown over the last decade?

We have received significant investment in the renewable energy, steel, garment, food processing and leather sectors. It is deeply encouraging that we have begun exporting leather goods, makhana, and garments to international markets.

According to the state Department of Industries records, the State Investment Promotion Board (SIPB) report indicates that by September 2025, we had received proposed investments totaling Rs 1.11 lakh crore, including Rs 38,644 crore in renewable energy, Rs 30,748 crore in ethanol, and Rs 20,153 crore in food processing. However, the latest figures currently being compiled, are substantially higher. Between 2016 and 2022, the state realised barely Rs 2,500 crore in investments.

* There has been significant buzz around Jamui, once affected by Maoist activity, hosting Asia’s largest ethanol plant.

It is poetic justice — for Jamui and Bihar. Ankur Biochem is establishing Asia’s largest ethanol plant across 3,000 acres at Chakai, Jamui. It will produce 7.5 lakh litres of ethanol daily, requiring approximately 3,000 tons of broken rice and maize per day. Ethanol production is set to be one of Bihar’s primary investment drivers, with the state already hosting around a dozen plants that are either operational or under construction.

* What is the state’s plug-and-play policy?

Under the plug-and-play model, we lease ready-to-work sheds directly to investors. So far, we have leased out approximately 31 lakh square feet of space to garment, leather, electronics, food processing, and IT startups in Muzaffarpur, West Champaran, Patna, Madhubani, and Bhagalpur. Additionally, we are expanding our land bank in every district to make land readily available. Through our ease of doing business framework, we established a single-window clearance system that processes all required approvals within 30 days. CM Choudhary has reiterated that any proposal not explicitly addressed within 30 days stands automatically cleared. This policy has helped us cut through bureaucratic red tape, making it far easier to convince prospective investors.

* What are some of the major business houses entering Bihar?

Alongside the Ambani and Adani groups, major names working with us include Shyam Steel, Ankoor Steel, Pearl Global, Global Renewable Advanced Clean Energy, Creative Group, Anubhav Apparels, Bharat Science and Innovation, Nirani Sugars, EPIC Agro, UltraTech Cement, Volts Solar, SLMG Beverages, Haldiram’s and Mother Dairy. Notably, India’s largest bag manufacturing unit is now operational at Bela, Muzaffarpur.

* How challenging is land acquisition, given that it is often cited as a major bottleneck for investment?

We dispelled that misconception long ago. Land acquisition for 14,600 acres is actively underway, with each district task force assigned specific targets. Furthermore, we will utilise 2,247 acres of Bettiah Raj forest land currently under state government control. Our ambitious plan to develop 12 satellite towns will drive a fresh wave of investment across sectors, laying the foundation for a new Bihar.

* How are start-ups performing in the state?

We currently have 1,653 registered startups, 241 of which are women-led. Bihar stands as the only state that directly funds startups from the ideation stage to actively foster student entrepreneurship.