Bihar is preparing a major push for entrepreneurship by proposing to raise its startup seed funding from ₹10 lakh to ₹25 lakh, a move announced by Industries Minister Dilip Jaiswal at the National Startup Day event “Avinya Bihar 2.0” in Patna.
Bihar raises the bar for startups
The Industries Department has proposed increasing the interest-free seed fund limit to ₹25 lakh per startup (from the current ₹10 lakh) to strengthen Bihar’s startup ecosystem. The announcement was made during “Avinya Bihar 2.0”, a National Startup Day programme organised jointly by CIMP Patna and IIT Patna, bringing together policymakers, academics and founders.
This proposal is expected to help early-stage founders build products, validate markets and hire talent—areas where cash flow is usually the biggest hurdle. Entrepreneurs at the event said higher seed funding could also improve investor confidence in Bihar-based ventures.
What the current funding looks like
Under the existing structure referenced at the event, startups receive seed funding up to ₹10 lakh (interest-free) in phases. The state also provides successful startups an additional ₹15 lakh per venture at 5% interest, and officials said the department is seeking approval to enhance the interest-free component up to ₹25 lakh.
In practical terms, this means Bihar is trying to offer founders a bigger first runway—so they can reach traction without immediately depending on outside capital. If approved, the change would place Bihar among states with more aggressive early-stage support mechanisms.
Avinya Bihar 2.0: ecosystem building moves
Alongside the funding proposal, “Startup Bihar” (the state’s startup wing) formally launched its website and signed two MoUs—one with the Patna unit of TiE Global and another with SU&I Magazine—to deepen ecosystem partnerships. The event also showcased multiple startups, including Awshar AI, Finace India, Jilo Health, Green Stark, Pravisht, RCX Light and Biharo.
These ecosystem tie-ups matter because seed funding alone doesn’t solve startup failures—mentorship, networks, and market access often decide whether a venture scales. Officials also highlighted broader support such as infrastructure and mentoring as part of Bihar’s startup growth strategy.
Institutions recognised at the event
The government honoured top startup cells in state institutions, with Government Engineering College, Vaishali ranked first, followed by Bihar Agricultural University, Sabour (Bhagalpur) second and GEC Aurangabad third. RPCAU Pusa (Samastipur) ranked fourth, while Gaya College of Engineering and GEC Arwal shared the fifth position.
Among incubation centres, IIT Patna ranked first, followed by CIMP Patna second and BAU Sabour third. The remaining top five included RPCAU Pusa (fourth) and CNLU Patna (fifth).
What founders should do next
If planning to apply for Bihar startup support, prepare documentation early so the venture can move quickly when updated guidelines roll out. Useful preparation steps include:
- Finalising a clear problem-solution pitch deck and basic financial model.
- Keeping incorporation, GST (if applicable), and bank details ready for compliance.
- Connecting with incubators like IIT Patna/CIMP for mentorship and ecosystem access.
If the ₹25 lakh interest-free proposal gets formal approval, it could become a strong growth lever for Bihar’s youth-led ventures—especially in health, AI, clean-tech and local commerce.