This State Unveils Startup Policy and Announced Funds worth INR500 crore

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The statement was made by Bihar CM Nitish Kumar at the release of the Bihar Startup Policy 2017 during the 4th Bihar Entrepreneurship Summit (BES).

To pat the entrepreneurial talent in the state, Bihar revealed its start-up initiative, during the 4th Bihar Entrepreneurship Summit (BES), namely the Bihar Startup Policy 2017. Also mentioned were some initial corpuses of the fund allotted to identify and grow new markets.

“We have given the youth and entrepreneurs a revised start-up policy, and set up a Rs 500-crore fund to encourage and facilitate entrepreneurship,” Chief Minister Nitish Kumar said at the Summit.

Few states across the country that already have their start-ups policies in run include Tamil Nadu, West Bengal, Uttar Pradesh, Gujarat, Andhra Pradesh, Karnataka and Kerala.

Bihar will drive its start-up initiatives with the formula YUVA — Yes to start-ups (networking, awareness and mentoring campaign), Unleash (supervisory enablers for supporting start-ups), Vibrancy (in educational system to embolden and facilitate start-ups) and Access (to incubate and finance).

The policy document enlists many features of the initiative aimed at encouragement of entrepreneurship among youth in the state.

Acmes of the policy:

The policy will be effective for a period of five years.

Start-ups shall be excused from licensing/registration for operations under various State Acts for a period of five years. However, statutory licenses (such as FSSAI,  Drug License, Fire Fighting, Building Plan) shall be required to be acquired by the start-up if its nature of business/activity may lead to possible threat to life and safety, in such cases the government shall bear the expense of license(s).

It will ease development of Entrepreneurship Development Centers in regional towns and Nagar Nigam(s) Centers to increase awareness and promote entrepreneurship.

Start-ups shall be excused from inspections by government regulatory agencies for a period of five years except in the case of any threat to life and safety. In such cases if a unit has to be inspected for certain reasons, an authorization from the District Magistrate shall be obtained.

10 percent of spaces in upcoming industrial parks, SME Clusters and Hub for Start-ups/lncubators/ Common Shared Infrastructure will be allotted by the govt. on basis of the preferences.