Bihar's Housing Minister Announces Key Land Acquisition Policy for Satellite Townships

In a recent cabinet meeting, Bihar's Housing Minister Nitish Mishra announced a pivotal land acquisition policy aimed at supporting urban development and addressing the immediate needs of landowners in greenfield satellite townships. The new policy, aligned with the Bihar Tenant Land Purchase Policy of 2026, allows for fair compensation and streamlined processes for land transactions. This initiative is expected to enhance infrastructure and investment in the state, paving the way for significant growth. The cabinet also approved the establishment of 11 new satellite townships, marking a major step forward in Bihar's urban planning efforts.

By Narendra Chaudhary Jun 17, 2026, 20:11 IST

Significant Policy Changes for Land Acquisition

Nitish Mishra, the Minister for Urban Development and Housing in Bihar, announced that a crucial decision was made during today's cabinet meeting regarding the purchase and transfer of land in greenfield satellite township areas. This decision addresses the challenges posed by the imposed restrictions on land transactions and considers the immediate needs of landowners.

In line with the Bihar Tenant Land Purchase Policy of 2026, the Bihar State Housing Board has been authorized to acquire land, while government authorities can proceed with land acquisition as necessary. Additionally, investors approved by the State Investment Promotion Board (SIPB) will be permitted to acquire land or lease it for their respective projects.

Acknowledgment of Leadership and Vision

Minister Mishra expressed his gratitude to Chief Minister Samrat Choudhary and all cabinet members for their support in this significant decision. He emphasized that the visionary leadership of the Chief Minister and the collective resolve of the cabinet will accelerate planned urban development, modern infrastructure creation, and investment in the state.

This decision is expected to help landowners in greenfield satellite township areas meet their immediate financial needs.

Details of the Land Purchase Policy

According to the Bihar Tenant Land Purchase Policy of 2026, landowners will receive compensation equivalent to double the market value or circle rate (MVR) for urban land, whichever is higher. For rural land, the compensation will be four times the market value or circle rate, with an additional 10% incentive as a reward.

To address the urgent needs of landowners, provisions have been made for the Bihar State Housing Board to purchase land if a tenant needs to sell. Similarly, land acquisition can occur for projects initiated by the state or central government, and private investors approved by SIPB can directly purchase or lease land from tenants.

Market Value Determination and Future Plans

The market value of the land will be determined by the district-level tenant land purchase committee, ensuring that landowners receive a fair and just price for their property.

Furthermore, during the cabinet meeting held on April 22, 2026, approval was granted for the establishment of 11 greenfield satellite townships in the state. These include Patliputra, Harihar Nathpur, Magadh, Mithila, Koshi, Purnia, Ang, Sitapuram, Vikramshila, Tirhut, and Saran. Minister Mishra stated that this decision will not only address the urgent needs of landowners but also promote planned urban development, infrastructure expansion, and investment, thereby propelling Bihar's overall growth.