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19

-"l
r
Government of Bihar
Department of Industries
Resolution
Subject:- Bihar Start-up Policy, 2022
1. Preamble
1.1 Bihar is progressing fast on the track of development, with unrelenting efforts being made
towards strengthening infrastructure and promoting industrial growth. Government of Bihar
is committed to improve competitiveness of the state's economy and achieving inclusive
growth. Start-ups and Innovation playa key role in economic growth. This can be realized
by promoting innovation and creating an ecosystem that nurtures start-ups from concept to
commissioning. Apart from creating jobs, start-ups focus on innovation to create next gen
solutionswhich bring economic dynamism.
1.2 Government of Bihar formulated and notified Bihar Start-up Policy, 2016 to create an
independent and transparent eco system, where the state shall provide funding, promotion
and policy support which was later amended as Bihar Start-up Policy 2017.The State has
setup a Trust, with an initial corpus of INR 500 crores, which acts as the nodal agency for
implementationof this policy.
1.3 In order to further boost the ecosystem and to make it more holistic and beneficial for the
youth and entrepreneurs of the state, the Government has approved the Bihar Start-up
Policy,2022. This policy also aims to broad basethe coverage, with an effective and faster
implementation process.
2. Vision
Thevision for the Bihar Start-up Policy,2022:
"To enable Bihar emerge as the most preferred destination for start-ups and entrepreneurs
by leveraging the potential of local youth through a conducive Start-up ecosystem for
inclusive growth in the State"
3. Policy Period
Bihar Start-up Policy, 2022 will be effective from the date of notification. The said date shall
be considered as effective date of this policyfrom which its provisions shall come intoforce
and shall be applicable for 5 years. .r' .
4. Objective
1
4.1 Introduce, promote and encourage entrepreneurship education and career amongst the
youth and entrepreneurs through various programs like "Udyami Bihar, Samridh Bihar
Campaign", Entrepreneurship Awards, Innovation Challenges and Business Plan
Competitions etc.
4.2 Support Start-ups by seed-funding as well as matchinq grants to increase their viability.
4.3 Facilitate development of Entrepreneurship Development Centers and Entrepreneurship
Facilitation Centers to increase awareness and promote entrepreneurship amongst the
youth.

.-
c ~.4.4 Encourage Entrepreneurship through education by introducing learning modules in the
University/Schools, MOOC (MassiveOpen OnlineCourses), internships amongstothers.
4.5 Facilitate development of new and support expansion of existing Incubators/common
infrastructure spaces/Co-working spaces
4.6 Provide a one stop comprehensive portal for start-ups to access financial support (SEBI
registered- Alternate Investment funds, Empanelled Angel Investor, etc.), regulatory
support, Networkof mentors and Empanelled ProjectManagement Consultants.
4.7 Enable hassle-freeandtime bound statutory clearancesfor start-ups.
4.8 Provide appropriate institutional support to enable the nurturing of Start-ups including
mentoring, hand holding andtrainings/orientationvisits.
4.9 Any other activitywhich will enable and create Start-upecosystem inthe state.
5. Eligibility of Start-Ups in Bihar
An entity shall be considered as a Start-uponfulfillingthefollowing conditions:
i. Upto a period often years from the date of incorporation/registration, if it is incorporatedas
a private limited company (as defined in the Companies Act, 2013) or registered as a
partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited
liability partnership (under the LimitedLiability PartnershipAct, 2008).
ii. Turnover of the entity for any of the financial years since incorporation/ registration has not
exceeded onehundred crore rupees.
iii. Entity is working towards innovation, development orimprovement of products or processes
or services, or if it is a scalable business model with a high potential of employment
generation orwealth creation.
iv. Providedthat an entity formed by splitting up or reconstruction of an existing businessshall
not be considered a 'Start-up'.
v. Provided Start-up must be incorporated or registeredin Bihar and having office in Bihar.
vi. Providedfurther applicable taxes from the operationsofthe company are payablein Bihar.
6. Institutional Framework
A strong Governance structure shall be established for effective implementation and
monitoring of Bihar Start-up Policy, 2022. The composition of the governance structure is
as follows:
a. 8ihar Start-up Fund Trust (8SFT) chaired by Development Commissioner, Government
of Bihar for deliberation on the policy matters, inter-departmental collaboration and bi­
annual progress review on the policy implementation outcomes.
2

'.,.
'.1
b. Start-up Monitoring & Implementation Committee (SMIC) to take decisions on the
matters of policy implementation, inter-departmental co-ordination or any other issues
referred by PSCfor decision making.
c. Preliminary Scrutiny Committee (PSC) to oversee the work of Start-up support unit as
we" as decision makingfor effective implementation of the Start-up policy.
d. Start-up Support Unit (SSU) to act as single point of contact for a" Start-up related
matters.
6.1 Bihar Start-up Fund Trust (BSFT)
The Bihar Start-up Fund Trust is an autonomous body constituted under the Chairmanship of
Development Commissioner, Government of Bihar. The composition of BSFT is as follows:
I5 No I Members
1 IDevelopmentCommissioner~=.:.;:_:..=..=:..:...=.-----
I
/2 IPrincipal Secretary,IndustrieS- _~_ ~ __
c__[~rin~~1 Secretary,Finance _
4 lPrincipal Secretary,Planning
15::'Pri~~pal se;etary, Scienc; &'TechnoI09Y
:6
I,7
Designation
Chairperson
Member-Secretary
Member
18
Two eminentexperts inthe Start-upfield nominatedbythe
Department of Industries
Director liT Patna,DirectorCIMP
I
Member
Member
IMember
2 RepresentativeofAssociations, Organisationsand Institutions
promoting entrepreneurshipto be nominatedbythe Department
of Industries It Representative of Financial M~HiagementCompanyl Society _ ..Memberf '
L~ --- ---'-
Member
IMember
9
6.1.1 Role of Bihar Start-up Fund Trust
a. Monitoring and review of Start-up policy and its implementation
b. Amendments and/or modifications, if any, required inthe policy
c. Approve major issues like rating system of start-ups, detailed guidelines for Start-up
approvals and handholdingetc.
3
d. Liaison with Central and other.State Departments for effective implementation of the policy,
if required
e. Any other issues referred by SMIC.

6.2 Start-up Monitoring and Implementation Committee (SMIC)
SMIC shall be constituted under the Chairmanship of Principal Secretary, Department of
Industries, Government of Bihar. The composition of SMIC shall be:
Members
Principal Secretary,Industries
. Director to be notifiedbythe Departmentof Industries.
Designation
Chairperson
Member-Secretary
Member
I Member
IMember
S No
1
2
3
'4I5
6
- .~ _,--
, Representative of FinanceDepartment
-Representative of Science& Technology Department
Representative of IT Department -Member
17
2 RepresentativeOtTncubatorsto be-nominatedbythe
Department of Industries __
2 Representatives ofAssociations, Organisations and
, Institutions promotingentrepreneurshipto be nominatedbythe
Department of Industries
Nodal Officer of SSU Member
Member
8
SMIC shall meet frequently andgap betweentwo consecutive meetingsshall not be more
than 45 days.
6.2.1 Role of Start-up Monitoring and Implementation Committee (SMIC)
a. Overall Implementation ofthe Policy
b. Approval for certification of start-ups
c. To onboard Start-up ecosystem stakeholders such as mentors, incubators, angel investors,
venture capitalist etc and develop infrastructures such as common space, Start-up portal,
EDCetc
d. To approve matching grantsto start-ups, success-grants ~tc.
e. Liaisonwith other state Departmentsfor effective implementationof the policy
f. Any other issues relatedto theeffective implementation of Start-uppolicy.
6.3 Preliminary Scrutiny Committee (PSC)
A Preliminary Scrutiny Committee shall be constituted under the Chairmanship of Director
to be notified by the Department of Industries, Government of Bihar. The composition of
Preliminary Scrutiny Committeeshall be:
ISN-o- Members Designation
1 Director to be notified bYtheDepartment ofTr1dustries.Chairperson-
I 2 2 Representatives of Incubatorsto be nominatedby Member
I the Department of Industries
; 3 2 Repre'sentativeofAssociatio~s, Org-anisations'and,I Mefnber
Institutions promoting Entrepreneurship to be ' I
nominated bythe Departmentof Industries
4 Nodal Officer of SSU Member-Secretary
4

6.3.1 Role of Preliminary Scrutiny Committee
a. Approve, tag and refer the applications shortlisted by PMN TPA to the subject related
incubators.
b. Assist SMIC in on boarding Start-up ecosystem stakeholders such as mentors, incubators,
angel investors, venture capitalist etc. and development of infrastructures such as common
space, EDC, Start-up portal etc
c. Assist SMIC on various issues related to implementation of the Policy.
d. Monitoring of Start-up Support Unit (SSU)
e. To provide timely redressal of grievance of start-ups and other stakeholders.
6.4 Start-up Support Unit (SSU):
A Start-up Support Unit (SSU) under Department of Industries shall be created for effective
implementation of this Policy. SSU shall be responsible for creating a conducive policy
environment for sustained growth of Start-up ecosystem in the state.
It will act as single point of contact for engagement with ecosystem stakeholders such as
mentors, incubators, angel investors, venture capitals etc.
To manage the operations of SSU, department of industries may depute adequate
manpower from the department or through a Project Management Agency (PMA). SSU
may also be placed in Corporation or Company of the Government for effective functioning.
6.4.1 Role of Start-up Support Unit (SSU):
a. Work as single point of contact for start-ups in the state for providing information as well as
hand-holding support
b. Process applications through an online portal, their screening and approval-by competent
authorities
c. All communications with start-ups
d. Providing hand-holding support to start-upsthrough various stages
e. Act as single window system for gettingall statutory clearances for start-ups
f. Act as Secretariat for implementation of Start-uppolicy
g. Organise events, sessions, trainings, visits and other activities for promotingthe Start-up
culture
6.5 Third Party Agencies
Third Party Agencies (TPA) may betaken on board for:
a. Designof the rating system for start-ups
b. Evaluationof applications as perthe approved ratingsystem
c. Recommending certification of start-ups
d. Recommending seed funding / matchinggrants etc as per the approved criterion based on
ratingachieved by the start-ups.
5

( '-
6.6 Financial Management Company
An existing or new Company of Governmentof Bihar may be made Financial Management
Company to carry out the financial operations under this policy. Financial Management
Companyshall disburse incentives, loansand other financial assistance to the Start-upsas
decidedby SMIC. Itshall carry out thefollowingactivities:
a. Asset Management ofthe Trust
b. Facilitation and assistance for funding to Start-ups such as seed grant, early stage and
scale-upfunding and other funding supportstated inthe policy
c. Financial assistance to develop and manage ecosystem such as Entrepreneurship
Development Cells, common infrastructures etc and raise funds from multilateral donor
agencies
d. Facilitate Investment related decisions underthepolicy in a time bound manner
7. Application Process and Certification of Start-ups
a. The Start-ups shall submit their applicationonline along with detailed descriptionof idea in
the prescribedform through the Online Start-upPortal.
b. Online applications received shall be scrutinizedand processed by SSU. The SSUwill short
list the eligible start-ups as per criterionapprovedby the Start Up FundTrust. The SSU will
also provide hand holding support tothe Start-upapplicants to improvetheir proposals.
c. The short-listed applications. will be approved by the "Preliminary Scrutiny committee"
headed by Director to be notified by the Department of Industries for referring them to the
incubators.
d. After preliminary examination the shortlistedapplications shall be tagged to the Incubators.
The Incubators will provide hand-holding support and after the incubation process shall
preparea proposal for Start-upon thefollowingissues:
i. Business Plan
ii. The amount offunding assistance requiredat various stages
iii. Any requirement of common infrastructureor other infrastructure created underthis
policy
iv. Any assistance as envisaged underthis policy
e. The list of such recommendations/proposalsreceived from incubators shall be evaluatedby
the Third Party Agency (TPA) and a rating will be provided as per the approved rating
criterion.
f. Start-up Monitoring and Implementation Committee (SMIC) shall examine these
recommendationsand certify Start-upsas perthe rating criterion.
g. Financial incentives and other support shall be provided to start-ups based on their
cateqonzation through rating mechanism. The detailed guidelines in this regard will be
finalizedwith approval of BSFT.
6

8. YUVA: The action plan to support start-ups and create an enabling eco­
system.
8.1 Bihar Start-upPolicyhas been designed onfollowingfour pillars (YUVA)
Yes to Start-ups(Awareness, Networkingand MentoringCampaign)
Unleash RegulatoryEnablersfor Supporting Start-ups
Vibrancy inEducationSystem to encourage andfacilitate Start-ups
Access tofinancing & incubation support
9. YUVA:Yesto Start-Up
\
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9.1 Promoting Awareness "Udyami Bihar, Samridh Bihar Campaign" and
Facilitating Networking Platform for Start-ups
Government is committed to encourage entrepreneurship as an education and career both,
for the youth across all economic and social segments of the population. In order to
inculcateentrepreneurial culture amongst youth,Government shall:
a. Launch Start-upoutreach and awareness campaign"Udyami Bihar, Samridh Bihar"at State
level in collaborationwith Start-up stakeholders
b. Recognize and promote achievements of successful local start-ups by organizing
'EntrepreneurshipAwards'
c. Organize state level challenges/ businessplancompetitions

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