Bihar govt approves Rs 2 lakh each to 94 lakh families for entrepreneurship, self-employment

The Bihar government has taken a significant step by approving financial assistance of Rs 2 lakh each to approximately 94 lakh families in the state.

The initiative, under the Bihar Small Entrepreneur Scheme, is aimed at fostering entrepreneurship and self-employment, targeting families with a monthly income of Rs 6,000 or less. 

Criteria and implementation

According to a PTI report, the eligibility for this scheme is based on income criteria, where families earning not more than Rs 6,000 per month can apply. The process for application and selection involves online submissions.

A committee led by the additional chief secretary of the industries department will approve the financial aid based on the criteria. The scheme is set to benefit a diverse group, including Scheduled Castes, Scheduled Tribes, Other Backward Classes (OBCs), and Extremely Backward Classes (EBCs).

How will the funds be distributed?

The Bihar government plans to distribute the financial aid in three instalments: 25% for the first, 50% for the second, and the remaining 25% for the third instalment. The structured approach aims to ensure the effective utilization of funds in establishing small-scale and cottage industries, the report said.

The scheme covers a wide range of industries, including handicrafts, textiles, service sectors, and electrical items. 

Compensation for labourers

Alongside this scheme, the Bihar Cabinet has also increased compensation for labourers in unorganised sectors. In cases of unnatural or accidental death, the compensation has been raised to Rs 2 lakh, and for permanent disability, it is now Rs 1 lakh.

Additionally, the cabinet has expanded incentives for EBCs preparing for BPSC and UPSC examinations.

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