Bihar Government Schemes, Grants & Subsidies for Business
Beyond the national schemes every Indian business can access, Bihar runs its own entrepreneurship, industrial and IT investment schemes — from a ₹2 lakh grant for a first-time small trader to a 30% capital subsidy for a large IT/ITES investment. Here's every major one, with real figures and where to apply.
Check What You Qualify ForEntrepreneurship & Self-Employment
Grants & Subsidised Loans for New Entrepreneurs
Mukhyamantri Udyami Yojana
Bihar's main entrepreneurship scheme — a mix of grant and low-cost loan for a new enterprise.
- Offers
- Up to ₹10 lakh: ₹5 lakh as a non-refundable subsidy + ₹5 lakh as a loan, interest-free for women/SC-ST/EBC applicants (1% simple interest for general category), repayable over 84 monthly instalments.
- Eligibility
- Bihar resident, age 18–45, minimum 12th pass/ITI/diploma/graduate depending on category, not availed a similar subsidy before.
- Selection
- Computerised lottery, applied online at udyami.bihar.gov.in.
Bihar Laghu Udyami Yojana
A direct cash grant for very small trade/processing units, targeted at the state's poorest families.
- Offers
- ₹2 lakh grant (no repayment), paid in 3 instalments — ₹50,000, ₹50,000, then ₹1 lakh — for one of 63 approved small-business categories.
- Eligibility
- Families identified as poor through Bihar's caste-based economic survey (household income under roughly ₹6,000/month); selection by computerised randomisation.
Mukhyamantri Mahila Rozgar Yojana
A direct self-employment cash transfer for women, distinct from the Udyami Yojana loan-plus-subsidy structure.
- Offers
- A one-time cash transfer (₹10,000 in the most recent disbursal round) intended to help women start small self-employment activity.
- Eligibility
- Women residents of Bihar identified through the scheme's enrolment process — confirm the current round's criteria before applying.
Start-ups & Innovation
Bihar Start-up Policy, 2022
On top of whatever a company already qualifies for under the national Startup India scheme — full breakdown, eligibility and sourcing on our dedicated Bihar Tax & Compliance page.
Bihar Start-up Fund Trust — Seed Grant
An interest-free, long-term loan for early-stage validation and setup costs.
- Offers
- Up to ₹10 lakh per start-up as an interest-free loan, repayable after 10 years, released against milestones.
- Eligibility
- Pvt Ltd/partnership/LLP under 10 years old, turnover under ₹100 crore, incorporated and operating in Bihar with taxes payable in Bihar.
Incubation Cost Reimbursement
Covers the cost of being hosted at a recognised incubator.
- Offers
- Up to ₹2 lakh per incubatee, reimbursed to Government-recognised private or state-supported incubators.
- Also includes
- Free domestic patent filing, and additional 5–15% funding incentives for women-, SC/ST-, or differently-abled-owned start-ups.
Industry & Manufacturing
Bihar Industrial Investment Promotion Policy
Renewed as a fresh investment package in August 2025 — core incentive structure unchanged from the 2016 policy, with added land-allocation terms for large projects.
Capital Investment Subsidy
Direct subsidy on setting up plant, machinery, land and building for a new industrial unit.
- Offers
- Up to 30% of approved project cost as capital subsidy.
- Also
- Interest subvention up to ₹40 crore, net SGST reimbursement, and stamp duty concessions.
Large-Investment Incentive Package
Custom incentives, including free land, for very large industrial investments.
- Offers
- Up to 10 acres free land for ₹100 crore+ investments creating 1,000+ direct jobs; up to 25 acres for ₹1,000 crore+ investments.
- Eligibility
- Large-scale manufacturers and Fortune 500 companies investing in Bihar; apply through the Department of Industries.
IT, ITES & Electronics
Bihar IT/ITES & ESDM Policy, 2024
Specifically for IT services, ITES/BPO and electronics system design & manufacturing companies setting up in Bihar.
Capital Subsidy + Interest Subvention
Upfront and ongoing financial support for setting up an IT/ITES/ESDM unit.
- Offers
- 30% capital subsidy (up to ₹30 crore) on land, building, plant and machinery; 10% interest subvention on loans, capped at 50% of project cost or ₹40 crore, for 5 years.
- Eligibility
- IT, ITES/BPO and ESDM companies setting up operations in Bihar — apply through the Department of Industries / DIT Bihar.
Employment & Overhead Subsidies
Ongoing per-employee and operating-cost support for 5 years.
- Offers
- 100% reimbursement of employer ESI/EPF contribution, up to ₹5,000 per employee per month; 50% lease rental subsidy; 25% reimbursement of electricity expenses.
- Mega projects
- Custom packages for investments over ₹100 crore or 1,000+ direct jobs.
Common Questions
Bihar Government Schemes — FAQ
What is Mukhyamantri Udyami Yojana and who can apply?
Bihar's flagship entrepreneurship scheme — up to ₹10 lakh per selected applicant, split as a ₹5 lakh non-refundable subsidy plus a ₹5 lakh loan. The loan is interest-free for women, SC/ST and EBC applicants, and carries 1% simple interest for general-category youth. Applicants must be Bihar residents aged 18–45, and selection is by computerised lottery through udyami.bihar.gov.in.
Is there a scheme for very small or informal businesses, not just registered companies?
Yes — the Bihar Laghu Udyami Yojana gives a ₹2 lakh grant (no repayment), paid in three instalments of ₹50,000, ₹50,000 and ₹1 lakh, to poor families identified through Bihar's caste-based economic survey, for setting up one of 63 kinds of small trade or processing units.
Does Bihar have its own startup scheme separate from Startup India?
Yes — the Bihar Start-up Policy, 2022, offers up to ₹10 lakh as an interest-free 10-year seed loan, incubation cost reimbursement up to ₹2 lakh, and free domestic patent filing, on top of whatever a company already qualifies for under the national Startup India scheme. See our full breakdown on the Bihar Tax & Compliance page.
What does Bihar offer specifically for IT or ITES companies?
The Bihar IT/ITES & ESDM Policy, 2024 offers a 30% capital subsidy (up to ₹30 crore), a 10% interest subvention on loans (up to 50% of project cost or ₹40 crore, for 5 years), 100% reimbursement of employer ESI/EPF contribution up to ₹5,000 per employee per month for 5 years, a 50% lease rental subsidy, and 25% reimbursement of electricity costs.
What incentives exist for setting up a factory or industrial unit in Bihar?
The Bihar Industrial Investment Promotion Policy (renewed as a package in August 2025) offers a capital subsidy of up to 30% of project cost, interest subvention up to ₹40 crore, SGST reimbursement, stamp duty concessions, and — for very large investments (₹100 crore+ or 1,000+ direct jobs) — free land allocation and custom incentive packages.
Sources & How to Verify These
Every scheme above links to the relevant Bihar Government department. State schemes are revised, renewed or replaced more often than national ones — the Industrial Investment Promotion Policy, for instance, was refreshed as a new package in August 2025 with an application window that may since have been extended. Confirm the current application status directly with the department, or with us, before budgeting around any of these.
This page is for general guidance, not legal or investment advice. Khata World helps clients identify which of these schemes they qualify for and prepare the application — we are not the administering agency for any scheme listed here. See also our Bihar Tax & GST Compliance Guide for state-specific tax rules rather than schemes.
Not Sure Which Bihar Scheme Applies to You?
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