Bihar, India, Inaugurates ₹140.95 Crore Leather and Footwear Cluster

The ₹140.95 crore Mega Leather, Footwear and Accessories Cluster and Common Facility Centre in Muzaffarpur, Bihar, was inaugurated by Chief Minister Samrat Choudhary on Thursday, marking a new manufacturing hub for footwear, leather goods and accessories producers. The facility aims to attract industry investment by providing ready-built industrial sheds, shared production machinery and technical support for businesses across the leather and footwear value chain.

Spread across 62.17 acres, the cluster is designed to support footwear manufacturers, leather goods producers and accessories businesses through ready built industrial infrastructure, shared machinery and technical facilities.

During the inauguration, allocation letters for industrial sheds and land were distributed to industrial units. The Bihar Industries Department also signed a memorandum of understanding with the Footwear Design and Development Institute (FDDI) to support the sector.

Industrial Sheds Available at ₹4 per Sq. Ft.

The cluster comprises 48 industrial plots and approximately 100,000 sq. ft. of space across three plug-and-play buildings. Ready-built industrial sheds are available for rent at ₹4 per sq. ft. per month. The facility also offers industrial plots for businesses requiring dedicated manufacturing space, potentially reducing initial infrastructure costs for new investors.

Shared Machinery and Technical Facilities

Manufacturers can access shared production machinery, including flatbed and cylinder bed sewing machines, automatic stitching machines, injection moulding machines, forming machines and toe-puff attaching equipment.

These facilities can help small and medium sized enterprises reduce upfront machinery investment when establishing footwear and leather goods production units.

The cluster also includes product demonstration facilities, training infrastructure and research and development support intended to improve workforce skills, product quality and manufacturing capabilities.

Investment Incentives for Eligible Businesses

Investors may qualify for incentives under Bihar’s Industrial Investment Promotion Package (BIIPP) 2025, subject to applicable eligibility criteria and approvals.

The package includes provisions for interest subsidies, capital subsidies and State Goods and Services Tax (SGST) reimbursement. Depending on the applicable scheme, benefits may include interest subsidy of up to ₹40 crore and capital subsidy of up to 30% of the approved project cost.

Certain eligible investors may also qualify for concessional land allotment, including provisions for land at a token amount of ₹1 under specified conditions. Other investors may be eligible for land at 50% of the BIADA prescribed rate.

Connectivity and Industry Opportunities

Mahwal railway station is located within the cluster complex, while National Highway 28 is nearby. Muzaffarpur city is approximately 25 km away, and Darbhanga airport is around 68 km from the site. The connectivity could facilitate raw material supplies and the distribution of finished footwear and leather goods.

The cluster offers manufacturers and entrepreneurs an additional location to establish or expand production in Bihar. Interested businesses can consult the BIADA website for details on available sheds, plots, rentals and investment incentives. All benefits remain subject to current policy conditions and eligibility requirements.