The Bihar Cabinet on Wednesday, 28 October 2026, approved 43 agenda items in a sweeping policy session held at the main secretariat in Patna, clearing the Bihar MSME Policy 2026 and a string of industrial, infrastructure and law-enforcement measures aimed at reshaping the state's economic trajectory.

Bihar MSME Policy 2026: The Vision

The flagship decision of the session was the approval of the Bihar MSME Policy 2026, built around the goal of nurturing one crore entrepreneurial families for an empowered Bihar. The policy charts a five-year roadmap targeting one crore direct and indirect jobs, a rise in the state's credit-deposit ratio to 75%, an industrial cluster in every district, and dedicated MSME centres across all 38 districts. The cabinet also cleared the Micro and Small Enterprise Facilitation Council Rules, 2026, providing a regulatory backbone for dispute resolution and ease of doing business.

The session was chaired by Chief Minister Samrat Choudhary, with Deputy Chief Ministers Vijay Kumar Choudhary and Bijendra Prasad Yadav present alongside ministers from multiple departments.

Industrial Investments Cleared

Two significant industrial projects received cabinet sanction. An Image Starch production unit in Thakurganj, Kishanganj, has been approved at an investment of ₹88.62 crore, expected to generate 217 direct jobs. A grain-based ethanol plant in Baikunthpur, Gopalganj, received clearance at ₹97.80 crore, projected to create 210 jobs. Both investments signal an intent to push agro-processing as a pillar of Bihar's industrial strategy.

The power sector received the session's largest single allocation — ₹11,096.55 crore sanctioned across various power infrastructure schemes, underscoring the state's efforts to address chronic energy deficits that have long hobbled industrial expansion.

Sonepur Expansion and Urban Infrastructure

In a significant urban planning move, the cabinet approved the expansion of the Sonepur planning area, paving the way for a cluster of mega-projects: a greenfield satellite township, an international airport, a film city, and educational hubs. Restrictions on land purchase, sale, and transfer within the satellite township zone have been lifted to facilitate these developments. This builds on Bihar's broader ambition to diversify its economic base beyond agriculture.

Law Enforcement Strengthened

To address rising operational demands, the cabinet sanctioned 143 new posts within the Economic Offences Unit (EOU). Additionally, three posts of City Superintendent of Police (Staff Officer cadre) were created in Motihari, Purnea, and Saran, along with 12 additional support posts for these offices — a targeted response to growing crime-related caseloads in these districts.

Context: A Busy October for Bihar's Cabinet

Wednesday's session follows a cabinet meeting on 12 October that cleared 23 proposals, including a tech park in Gardanibagh, Patna, airport expansion drives, and the designation of the birth anniversaries of Ram Vilas Paswan and Kailashpati Mishra as official state-level commemorative events. The back-to-back sessions — separated by a two-week gap — signal an accelerated legislative and policy calendar as the Bihar government pushes its industrial and infrastructure agenda ahead of the next budget cycle. Whether the ambitious MSME employment targets translate into ground-level outcomes will depend heavily on credit flow, district-level implementation, and the speed at which MSME centres become operational.