The Bihar government is intensifying efforts to bolster small and medium enterprises (SMEs) in the state, which are crucial for economic development, a senior official from the Industries Department has said.
Over Rs 2,900 crore have been disbursed to approximately 74,540 beneficiaries under two schemes aimed at promoting Micro, Small, and Medium Enterprises (MSMEs) in Bihar. One of these schemes, the Bihar Laghu Udyami Yojana (BLUY), was launched just last year.
Bandana Preyashi, Secretary of the Department of Industries, said, "A total of Rs 2,697 crore was disbursed to 34,441 beneficiaries from 2018 till now under Mukhya Mantri Udyami Yojana (MMUY). Similarly, till date, Rs 200 crore of the first instalment has been disbursed to 40,099 beneficiaries under BLUY."
Boosting rural economy through MSMEs
Bihar, known for its strong MSME base, is now focusing on promoting an innovation ecosystem to unlock the state's entrepreneurial potential. The MMUY and BLUY, launched in 2018 and 2023 respectively, are aimed at fostering the growth of MSMEs in the state.
The government has laid out a clear objective of promoting MSMEs through awareness, training, and handholding support.
Preyashi emphasised that alongside attracting major investments for manufacturing units, the state is also creating an ecosystem where MSMEs can flourish, especially in the rural economy.
"The Bihar Laghu Udyami Yojana aims to provide job opportunities to at least one member of poor families whose monthly income is less than Rs 6,000 a month," Preyashi said.
She explained that the government is providing Rs 2 lakh to each beneficiary in three instalments to set up and run micro and small industrial and processing units.
Investments and infrastructure development
Bihar is emerging as a business and industrial hub with significant investments being drawn to the state. During the Bihar Business Connect 2023, 278 companies signed Memorandums of Understanding (MoUs) committing to investments totalling Rs 50,530 crore, according to Preyashi.
"With new policies of the state government, Bihar is witnessing significant investment promotion activities, reinforcing its position as an emerging business and industrial hub in the country," Preyashi said.
The Bihar government has also implemented several policies to encourage industrial growth, including the Bihar Industrial Investment Promotion Policy (BIPP), Bihar Logistics Policy 2023, Ethanol Production Incentive Policy 2021, and the Textile and Leather Policy 2022.
"Under these policies, stage-1 clearance was given to 481 applications, with a proposed investment amount of Rs 4,512.85 crore.
A total of 175 units were given clearance for financial incentives with an investment of Rs 2,195.10 crore, an all-time high, since the inception of the state investment promotion policies," Preyashi added.
Focus on start-ups and SEZs
Bihar is not only focusing on established MSMEs but also on nurturing start-ups. In 2023-24, 255 start-ups were recognised in the state, and a total of Rs 11.92 crore has been disbursed as seed funding to these start-ups.
From April 2023 to January 2024, the Bihar Industrial Area Development Authority (BIADA) allotted plots or sheds to 427 units with a total investment size of Rs 6,145 crore covering 492 acres of land. This development created 35,224 jobs in the state.
"Infrastructure development in industrial areas was given top priority. Funds of Rs 409.33 crore were approved under Part I and Rs 212.68 crore for the construction of Unity Mall under special assistance to states in 2023-24," Preyashi noted.
For the financial year 2024-25, 149 units have been granted stage I clearance for a proposed investment amount of Rs 3,950.48 crore in the Bihar State Investment Promotion Board.
Additionally, the Centre has approved Bihar’s proposal to establish a multi-sector Special Economic Zone (SEZ) in Nawanagar and Kumarbagh. Authorities are also working on the establishment of Export Promotion Councils (EPCs) in Bihar to help local exporters expand to international markets.
Adani Group's major investments in Bihar
Chief Minister Nitish Kumar recently laid the foundation stone for a Rs 1,600 crore cement grinding unit of Ambuja Concrete North Private Limited, a subsidiary of the Adani Group, in Warisaliganj block in Nawada district.
This marks the largest investment by a cement industry player in the state.
"The project is expected to create 250 direct jobs and 1,000 indirect jobs on the site. The project will meet the growing infrastructure needs of Bihar," stated a release from the Chief Minister's Office.
The Adani Group has also decided to invest an additional Rs 5,500 crore in various sectors, including cement manufacturing in Muzaffarpur, logistics near Patna, and agro-industry projects in Araria, Kishanganj, and Begusarai.
"A total of 40,000 employment will be generated by these investments," the statement added.
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