Bihar startup policy: 10 lakh interest free seed-fund for 10 years

PATNA, Bihar: Syed Shahnawaz Hussain, Minister for Industry, Government of Bihar, on Friday, July 29, launched Bihar Startup Policy 2022, to boost the entrepreneurship ecosystem in the state.

The policy includes interest free seed fund of up to Rs 10 lakh for a period of 10 years, and 5 per cent additional incentives for women. Apart from that, a grant of Rs 3 lakhs will be given to the units involved in training for product enhancement & funding.

Hussain, during the launch, said that the policy will increase financial and other support from the central government to increase the participation of start-ups in the state economy. He added, “Co-working space in the name of Startup Business Center is being constructed at the fifth floor of Maurya Lok Complex and BSFC Building on Fraser Road.”

Hussain also launched a portal for the young entrepreneurs in Bihar who can avail the benefit of schemes under the policy by registering themselves on the portal. Additionally, if the startup can attract investment from angel investors, then the state government will provide 2 per cent of the total invested amount as a success fee.

Along with that, the policy includes provisions to encourage the participation of women in the entrepreneurship sector. For this purpose, woman founded startups will be given an additional 5 per cent incentive while the schedule caste, schedule tribe and differently-abled founders will get added incentive of 15 per cent. There is also a provision under which Rs 2 lakh will be given to provide handholding support to nurture a startup.

Sanjeev Kumar, Technical Director of the Industrial Department, said that they will be inviting applications for seed funds from the next month onwards.