Bihar Set to Lift Ethanol Procurement Cap, Boosting Industry Growth
The Centre plans to remove the ethanol procurement cap in Bihar, enhancing production capacities and farmer incomes. This decision aligns with a broader industrial strategy aimed at attracting significant investments and creating jobs in the state.
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The Centre will soon eliminate the ethanol procurement cap in Bihar, allowing oil marketing companies to increase purchases from local units. Currently, Bihar hosts 12 grain-based ethanol plants with a combined capacity of 70 crore litres annually, but output has been halved due to low demand.
The government is also pushing for stricter loan disbursement ratios from banks and has directed NABARD to increase loan disbursement to ₹4,600 crore this year. As part of the 'Samriddh Udyog - Sashakt Bihar' vision, Bihar aims to attract ₹50 lakh crore in investments and create one crore jobs by 2030.
Initiatives include the Bihar Semiconductor Policy 2026 and the development of new industrial parks. Ongoing investor outreach efforts are expected to further position Bihar as a key industrial hub in eastern India.
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