Patna: The Bihar cabinet on Tuesday approved a proposal to provide financial assistance of ₹2 lakh each to over 9.4 million families who were assessed as poor in the recently held caste and economic survey in the state to create self-employment opportunities, a senior government official said.

The approval to the “Bihar Laghu Udyami Yojana” (Bihar small entrepreneur scheme) was among the 18 proposals of different departments approved during the cabinet meeting chaired by chief minister Nitish Kumar, additional chief secretary (cabinet) S Siddharth said.
The scheme, which will continue for five years, aims to provide job opportunities to over 9.4 million poor families, whose monthly income is less than ₹6,000 a month, Siddharth said. “At least one member of the poor families will be provided grant up to ₹2 lakh in three instalments to set up and run small industrial or processing units, such as handicraft, textile, saloon, eateries, among 63 types of units.”
On November 7 last year, the Bihar government released the socio-economic data in the state assembly, weeks after releasing the caste survey report on October 2. The data showed 9,433,312 families (or 34.13%) of the total 27,628,995 families in the state are economically poor. Of the poor families, 3.31 million families belong to the extremely backward classes (EBCs), 2.47 million from other backward classes (OBCs), 2.34 million from the schedules castes (SCs), 1.08 million from the general category and 201,000 families from scheduled tribes (STs).
All poor families can avail the benefit of the scheme, which will be implemented by the state industries department, the senior official said. Members of such families will have to apply online and produce the proof of family income to claim benefits of the scheme, Siddharth said.
{{/usCountry}}All poor families can avail the benefit of the scheme, which will be implemented by the state industries department, the senior official said. Members of such families will have to apply online and produce the proof of family income to claim benefits of the scheme, Siddharth said.
{{/usCountry}}“Selection of beneficiaries will be done through computerised randomisation process and on the basis of budgetary allocations,” he said, adding a state-level “project monitoring and implementation committee, led by the executive head of the industries department, will be set up to execute the scheme.”
The district magistrates (DMs) will lead the implementation panel at the district level, the official added.
Financial grant for EBC aspirants of recruitment exams
The cabinet also approved a proposal to expand the ambit of financial aid being provided to students from EBC families preparing for civil services (mains) exams. Now, EBC students preparing for other tests such as recruitment exams for Indian Engineering Service, Indian Economic Service, Combined Geo-Scientists, Combined Defence Service, National Defence Academy, Bihar Judicial Service, Grade-B officers of Reserve Bank of India and State Bank of India, among others, will also get one-time financial grant ranging from ₹75,000 to ₹30,000. The cabinet approved estimated annual expenditure of ₹9.79 crore for this.