Cabinet likely to clear Bihar Startup Policy in February

Patna: Industries department principal secretary Tripurari Sharan said on Thursday the Bihar Startup Policy to assist entrepreneurs would come into force sometime in February after cabinet approval.
Sharan said chief minister Nitish Kumar has already announced setting up a venture capital fund of Rs500 crore to assist the entrepreneurs who opt to launch their startup ventures.
The fact that it is on the priority list of the government, the department moved in right earnest to make a draft of the policy statement suitable for Bihar by taking into account the startup policies already in operation in other states, Sharan added. He said a consultancy firm of YesBank was commissioned to make a policy statement of the Bihar Startup Policy.
The consultancy firm concerned has studied the startup policy in Tamil Nadu and some other states and, accordingly, is ready with a draft policy statement on the subject for Bihar, Sharan said, adding that inputs from experienced entrepreneurs and experts have also been incorporated in the draft policy statement. "By February, we should be ready with the final draft of the Bihar Startup Policy for cabinet approval," Sharan said.
He also said the investment scenario of the state has not been as bleak as is portrayed. "Agriculture sector and food processing units constitute the mainstay of the state," Sharan said, adding that the units have been established in this sector.
Beginning with 2011-12, the state has received 1,876 project proposals with investment worth Rs71,423 crore. What, however, has been overlooked is the fact that two of the total 1,876 project proposals were related to power sector valued at around Rs60,000 crore, Sharan said, adding that for some reasons, the two power project proposals could not be put on the ground.
Amid this situation, the project proposals related to food processing sector bore fruits. As many as 253 projects worth Rs6,012 crore are in various stages of implementation in the state, Sharan said, adding that they have availed of subsidy benefits of Rs1,450 crore under the Bihar Industrial Incentive Policy (BIIP), 2011.
He said the period of BIIP (2011) expires this year. Work has already begun on the preparation of BIIP (2016), Sharan said, adding that the department is in the process of consultation with the stakeholders, like Bihar Industries Association (BIA), Bihar Chamber of Commerce and Industries (Band Confederation of Indian Industry (CII).
"We have put our draft proposal policy before them for their suggestion and inputs. Our aim is to give more incentives to entrepreneurs than what had been provided through BIIP (2011). We have learnt from past experiences," Sharan said, adding that the department has also been putting stress on promotion and establishment of private industrial area. Private persons can come together and establish private industrial area for which there would be requisite incentives and subsidies, he said.