Bihar

• 18 Jan 2024

Bihar Laghu Udyami Yojana

Why in News?

Recently, the Bihar government has approved a scheme to provide financial assistance of ₹2 lakh each to over 9.4 million poor families to create self-employment opportunities.

Key Points

• The approval to the “Bihar Laghu Udyami Yojana” (Bihar small entrepreneur scheme) was among the 18 proposals of different departments approved during the cabinet meeting chaired by Chief Minister Nitish Kumar.
  • The scheme, which will continue for five years, aims to provide job opportunities to over 9.4 million poor families, whose monthly income is less than ₹6,000 a month.
  • The state industries department will implement the scheme, and beneficiaries will be selected through a computerised randomisation process.
• At least one member of the poor families will be provided grant up to ₹2 lakh in three installments to set up and run small industrial or processing units, such as handicraft, textile, saloon, eateries, among 63 types of units.
• The cabinet approved an estimated annual expenditure of ₹9.79 crore:
  • To expand the ambit of financial aid being provided to students from Extremely Backward Classes (EBCs) families preparing for civil services (mains) exams.
  • EBC students preparing for other tests such as recruitment and competitive exams among others, will also get a one-time financial grant ranging from ₹75,000 to ₹30,000.

Note:

• Recently, the Bihar government released the socio-economic data in the state assembly, after releasing the caste survey report.
  • The data showed 9,433,312 families (or 34.13%) of the total 27,628,995 families in the state are economically poor.
  • Of the poor families, 3.31 million families belong to the EBCs, 2.47 million from Other Backward Classes (OBCs), 2.34 million from the Scheduled Castes (SCs), 1.08 million from the general category and 201,000 families from Scheduled Tribes (STs).

Government to Make Bihar Leader in Startup Sector

Why in News?

According to the State industry minister Samir Kumar Mahaseth, the government was working on a mission to make Bihar a leader in the field of startups.

Key Points

• According to the minister at the Bihar Startup Awards 2024 event at Adhiveshan Bhawan on the occasion of National Startup Day (16^th January), Bihar will grow as its startup sector grows.
• At the event awards were presented to several startups active in the state including:
  • Medivisor Pvt Ltd received the Best Startup of the Year award, Ved Prabha Aerospace Pvt Ltd. emerged first runner-up, and Biro Power Pvt Ltd second runner-up in this category.
• Awards were also given in various categories, including women’s leadership, agriculture, information technology, e-commerce, electric vehicles and Educational technology.
• Under the Bihar Startup Policy to the entrepreneurs:
  • Interest-free seed funding of up to Rs 10 lakh is provided to budding entrepreneurs for a period of ten years.
  • A 5% higher amount is allocated as seed funding to startups initiated by women, and 15% more for startups led by scheduled castes/scheduled tribes and differently-abled individuals.
  • A grant of up to Rs 3 lakh is given to individuals participating in acceleration programs.
  • If investments are received from registered entities and angel investors, matching loans of up to Rs 50 lakh are also provided.

National Startup Day

• It is observed annually on 16^th January to appreciate and promote the Indian Startup Ecosystem.
• Startup India initiative was launched on 16^th January, 2016, with a vision to cultivate innovation, support startups, and stimulate investments.
• It encompasses initiatives like the Seed Fund scheme and Credit Guarantee Scheme, further aiding startups.
• India has emerged as the 3^rd largest ecosystem for startups globally as of 31^st May 2023.
  • India ranks 2^nd in innovation quality with top positions in the quality of scientific publications and the quality of its universities among middle-income economies.