In a move to promote entrepreneurship in the state, Bihar Chief Minister Nitish Kumar gave approval to the Start Up Policy, 2016 at a cabinet meeting. The Start Up Policy will support industries and young entrepreneurs in the state mainly. It will also encourage startups to start new ventures. Before this, Chief Minister had promised a dedicated policy for the entrepreneurs at the Bihar Entrepreneurship Summit in March 2015.

Industries Department Principal Secretary S Siddhartha shared that the startup policy would cater to the needs of emerging entrepreneurs and makes Bihar a promising destination for startup in India. Industries which are having a turnover of less than Rs 25 crore and not more than 5 years old would be eligible to avail the benefits of this policy. The Start Up venture capital of Rs 5,000 crore formed part of the CM’s ‘seven resolves’, which the grand secular alliance government has adopted as policy of governance for the next five years. In addition, 22% of the Rs 5, 000 crore venture funds under the policy has been reserved for scheduled caste (SC) and scheduled tribe (ST) entrepreneurs.

To implement this policy successfully, an independent trust would be formed. The trust members will work to find out whether a particular company fits to avail the fund facility under this policy or not. The trust would also provide necessary guidance to the entrepreneurs. As of now, Development Commissioner would be the Chairman and Industries Department Principal Secretary the Member Secretary of the trust.

Moreover, the state government would also provide resources like working space, internet facility and many other things to startups for free for three years. The government would also provide grant-in-aid up to Rs 10 lakh in the beginning, depending on the concept and market value of the startup. Apart from this, 2% cost incurred by the startup on formulating and promoting the new concept, would also be borne by the government. The government would also provide 2% of the total cost incurred during fund-raising. If an entrepreneur manages to raise funds from other sources, the government would provide equal amount to the entrepreneur.

Earlier this month, Karnataka approved new startup policy with an aim to nurture 26,000 startups in the state. Jharkhand and its adjoining state of UP had already came up with their respective startup policy, in April this year.

In total, their are about 7 states with their own startup policies.

[Top Image - Shutterstock]

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