Patnam, Feb 8 (IANS): The Bihar Industry Department has entered into an agreement with the Small Industries Development Bank of India (SIDBI) to boost financial support for startups in the state.
As part of this agreement, a corpus fund of Rs 150 crore will be established by June 2025 to provide financial assistance to young entrepreneurs.
This initiative aims to foster innovation and entrepreneurship by making loans more accessible to startups and small businesses in Bihar. Out of this Rs 150 crore fund, Rs 50 crore will be contributed by the Bihar government, while SIDBI will arrange Rs 100 crore independently.
According to an official of the Industry Department of Bihar, financial assistance will be provided in the form of loans to entrepreneurs who have completed up to 80 per cent of their work. They will be eligible for Rs 6 lakh in financial assistance.
Addressing the funding challenges, the official said that many young entrepreneurs in Bihar struggle to secure funds and remain dependent on metro-based investors.
This initiative aims to reduce reliance on external investors and provide direct support.
At present, around 900 startups are currently operating in the state. Among them, 70 per cent of startups have commenced operations, while 30 per cent remain at the ideation stage.
As per the sector-wise distribution, 11 per cent of startups are operational in agri-services and 11 per cent each in e-commerce and healthcare, 9 per cent in handicrafts. Apart from that Electric Vehicles (EVs) and others also have participation in it.
This initiative is expected to boost Bihar’s startup ecosystem, allowing young entrepreneurs to expand their ventures and compete at a national level.
The decision of the industry department to provide loans in the startup sector is a significant step considering the upcoming election of the Bihar Assembly this year.
The state government is also taking many steps while the Pragati Yatra of Bihar Chief Minister Nitish Kumar is also a significant step to provide assistance to the common people.