Industries dept proposes hike in startup seed fund to ₹25 lakh

Currently startups used to get seed funds up to ₹10 lakh interest free to thrive their businesses mostly in phases

Industries minister Dilip Jaiswal on Friday said that the department has proposed raising seed fund for startups to ₹25 lakh in place of the existing amount of ₹10 lakh to augment the industries eco system in the state.

Bihar industries minister Dilip Kumar Jaiswal distributes certificates and appreciation achievement at the National Startup Day event -- Avinya Bihar 2.0 -- in Patna on Friday. (HT Photo)

Jaiswal said this at the national startup day event -- Avinya Bihar 2.0 – organised jointly by the Chandragupta Institute of Management Patna (CIMP) and IIT, Patna. The event brought together policymakers, academics and young innovators to underline the state’s growing ambitions in India’s startup landscape.

Inaugurating the event, the industries minister struck an optimistic note saying that Bihar is stepping into a new phase of innovation and enterprise, and assured the audience that the state government is leaving no stone unturned to support entrepreneurs – from better infrastructure and mentorship to stronger financial backing. In a move that drew cheers.

Currently, startups used to get seed funds up to ₹10 lakh interest free to thrive their businesses mostly in phases. The government provides successful startups an additional ₹15 lakh per venture at the interest of 5%. The department, officials said, is trying to get the government’s nod to enhance the interest-free funding up to ₹25 lakh to each venture.

The Startup Bihar, a wing that deals with the startup ventures, formally launched its website and inked two memorandum of understanding with Patna unit of TiE Global and another with SU&I Magazine – aimed at deepening collaboration across the ecosystem.

The top five startup cells in state institutions were honoured: Government Engineering College, Vaishali took the top spot, followed by Bihar Agricultural University (Sabour, Bhagalpur) in second, Government Engineering College (Aurangabad) third, RPCAU (Pusa, Samastipur) fourth and a shared fifth place for Gaya College of Engineering and Government Engineering College, Arwal.

Among incubation centres, IIT Patna led the rankings, with CIMP Patna in second, BAU Sabour third, RPCAU Pusa fourth and Chanakya National Law University (CNLU) Patna rounding off the top five.

Several promising startups unveiled their products on stage. Among them were Awshar AI, Finace India, Jilo Health, Green Stark, Pravisht, RCX Light, and Biharo – each showcasing the kind of home-grown innovation that organisers hope will put Bihar firmly on India’s startup map. Later, the dignitaries visited the exhibition stalls, engaged with founders and got a firsthand look at the ideas bubbling up across the state.

A section of entrepreneurs hoped that increased seed funding would encourage investors in the startups and it would mark a turning point in the state’s journey toward becoming a serious contender in India’s entrepreneurial ecosystem.

Director, handloom and sericulture, Vidya Nand Singh, General Manager, SIDBI, Anubha Prasad, In-charge, Incubation Centre, IIT Patna, Sudhir Kumar, Director, CIMP, Rana Singh, CEO CIMP-BIIF Kumod Kumar and founder Marwari Catalyst Sushil Sharma were prominent among those present on the occasion.