Bihar Industry Department Collaborates with SIDBI to Support Startups
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Synopsis
The Bihar Industry Department has partnered with SIDBI to establish a Rs 150 crore fund for startups by June 2025. This initiative aims to enhance financial accessibility for entrepreneurs and reduce reliance on metro-based investors, ultimately boosting the state’s entrepreneurial ecosystem.
Key Takeaways
- Partnership between Bihar Industry Department and SIDBI.
- Establishment of a Rs 150 crore fund for startups.
- Loans available for entrepreneurs completing 80% of their work.
- Direct financial support to reduce reliance on external investors.
- Strengthening of Bihar's startup ecosystem.
Patna, Feb 8 (NationPress) The Bihar Industry Department has formed a partnership with the Small Industries Development Bank of India (SIDBI) to enhance financial backing for startups within the state.
Under this collaboration, a corpus fund of Rs 150 crore is set to be established by June 2025 aimed at providing financial aid to emerging entrepreneurs.
This program seeks to stimulate innovation and entrepreneurship by ensuring that loans are more readily available for startups and small enterprises in Bihar. Out of the Rs 150 crore fund, the Bihar government will contribute Rs 50 crore, while SIDBI will independently secure Rs 100 crore.
According to a representative from the Bihar Industry Department, financial support will come in the form of loans to entrepreneurs who have completed up to 80 percent of their work. They will qualify for up to Rs 6 lakh in financial assistance.
Addressing the funding hurdles, the official noted that many young entrepreneurs in Bihar face challenges in obtaining funds and often rely on investors from metropolitan areas.
This initiative is designed to lessen dependence on external investors and offer direct assistance.
Currently, there are approximately 900 startups operating in the state. Of these, 70 percent have begun operations, while 30 percent are still in the ideation phase.
In terms of sector distribution, 11 percent of startups are involved in agri-services and 11 percent each in e-commerce and healthcare, with 9 percent in handicrafts. Additionally, there is participation from sectors such as Electric Vehicles (EVs) and others.
This initiative is anticipated to strengthen Bihar’s startup ecosystem, enabling young entrepreneurs to grow their businesses and compete on a national scale.
The decision by the industry department to offer loans in the startup sector is a noteworthy move, particularly with the upcoming Bihar Assembly elections this year.
The state government is also undertaking numerous initiatives, with the Pragati Yatra led by Bihar Chief Minister Nitish Kumar marking a significant effort to support the general populace.
