By Neeraj Kumar
Patna: The Bihar government is making significant strides in promoting self-employment through its flagship initiatives, the Chief Minister Udyami Yojana and Laghu Udyami Yojana. These programs are designed to provide financial assistance to youth, women, and marginalized communities to help them start their own businesses and contribute to the state’s economic growth.
To date, 40,000 youth have reaped the benefits of these schemes, with the government setting an ambitious target to increase this number to 50,000. Industry Minister Nitish Mishra revealed that this year alone, five lakh people have registered for the Udyami Yojana, underscoring the high demand for entrepreneurship support in the state.
The Udyami Yojana operates annually, with a particular focus on inclusive growth. This year, the program will extend loans to 9,240 individuals, divided into specific categories: 2,000 youth, 2,000 women, 2,000 individuals from Other Backward Classes (OBC), 2,000 from Scheduled Castes and Tribes, and 1,240 from minority communities. These loans are aimed at empowering diverse groups to become self-reliant and establish small-scale industries.
In light of the recent caste census, Chief Minister Nitish Kumar announced an additional initiative under the Laghu Udyami Yojana, offering Rs 2 lakh loans to economically backward families in Bihar. According to Minister Mishra, applications for this scheme were invited through a portal in February, and 40,000 people have already received their first installment. The government plans to open the application process for the current financial year soon, providing more opportunities for aspiring entrepreneurs.
The Chief Minister Udyami Yojana, launched in 2016, has been a cornerstone of Bihar’s economic strategy. Under this scheme, eligible youth receive a Rs 10 lakh loan to set up industries, with half of the amount provided as a subsidy. The remaining Rs 5 lakh is to be repaid over seven years in 84 installments, with a nominal one percent interest rate for youth. Other categories, including women and marginalized communities, benefit from interest-free loans.
This year, the Industry Department has continued its commitment to fostering entrepreneurship, with applications for the entrepreneur loans opening on July 1. The deadline for submissions is set for August 16. So far, the department has received over 4.6 lakh applications, reflecting widespread interest in the scheme. Beneficiaries are selected through a random lottery system to ensure fairness and transparency.
Once selected, beneficiaries receive 25 percent of the loan amount in the first installment, enabling them to kickstart their business ventures. The second installment covers the cost of essential equipment needed to set up the industry. Before receiving the funds, beneficiaries undergo a mandatory week-long training program at the District Industry Centre, equipping them with the skills and knowledge necessary to manage their enterprises successfully. The District Industry Department then monitors the progress of these new businesses, ensuring they contribute to the local economy.
The Bihar government’s ongoing efforts through the Chief Minister Udyami Yojana and Laghu Udyami Yojana are not only empowering thousands of youth and marginalized individuals but are also fostering a culture of entrepreneurship across the state. As more people take advantage of these opportunities, Bihar is poised to see significant growth in small and medium enterprises, driving economic development and job creation at the grassroots level.
