Industries Department Proposes Hike in Startup Seed Fund to ₹25 Lakh
On January 17, 2026, during the National Startup Day event named Avinya Bihar 2.0, the Bihar Industries Minister, Dilip Kumar Jaiswal, announced a significant proposal to increase the seed fund for startups in the state from ₹10 lakh to ₹25 lakh. This initiative aims to bolster the entrepreneurial ecosystem in Bihar and support the growth of innovative ventures.
Current Funding Structure
Currently, startups in Bihar can access seed funds up to ₹10 lakh, which are provided interest-free. This funding is primarily aimed at helping businesses thrive in their initial phases. Additionally, successful startups have the opportunity to receive an extra ₹15 lakh at an interest rate of 5%. The proposed increase to ₹25 lakh would enhance the financial support available to budding entrepreneurs.
Event Highlights
The Avinya Bihar 2.0 event was organized by the Chandragupta Institute of Management Patna (CIMP) in collaboration with IIT Patna. It served as a platform for policymakers, academics, and young innovators to discuss the state’s aspirations within India’s growing startup landscape. Minister Jaiswal expressed optimism about Bihar’s potential in fostering innovation and entrepreneurship.
Government Support for Entrepreneurs
During his address, Minister Jaiswal assured attendees that the state government is committed to supporting entrepreneurs through various means, including:
- Improved infrastructure
- Access to mentorship programs
- Stronger financial backing
These efforts are part of a broader strategy to create a conducive environment for startups to flourish in Bihar.
Startup Bihar Initiatives
The Startup Bihar initiative, which oversees startup ventures in the state, also launched its official website during the event. Furthermore, the initiative signed two memorandums of understanding (MoUs) with:
- TiE Global (Patna unit)
- SU&I Magazine
These collaborations are aimed at enhancing cooperation and support within the startup ecosystem.
Recognition of Top Startup Institutions
As part of the event, the top five startup cells in state institutions were recognized for their contributions:
- Government Engineering College, Vaishali
- Bihar Agricultural University, Sabour (Bhagalpur)
- Government Engineering College, Aurangabad
- RPCAU, Pusa (Samastipur)
- Gaya College of Engineering and Government Engineering College, Arwal (tied for fifth)
Among incubation centers, IIT Patna emerged as the leader, followed by CIMP Patna, BAU Sabour, RPCAU Pusa, and Chanakya National Law University (CNLU) Patna.
Showcasing Innovation
Several promising startups showcased their innovative products during the event. Notable participants included:
- Awshar AI
- Finace India
- Jilo Health
- Green Stark
- Pravisht
- RCX Light
- Biharo
These startups exemplify the home-grown innovation that organizers hope will position Bihar prominently on India’s startup map.
Engagement with Entrepreneurs
Following the presentations, dignitaries engaged with startup founders at exhibition stalls, gaining firsthand insights into the innovative ideas emerging from the state. This interaction highlighted the enthusiasm and potential of Bihar’s entrepreneurial community.
Future Prospects
Many entrepreneurs expressed hope that the proposed increase in seed funding would attract more investors to Bihar’s startup scene. They believe that this financial boost could mark a turning point in the state’s journey toward becoming a significant player in India’s entrepreneurial ecosystem.
Key Attendees
The event was attended by several prominent figures, including:
- Vidya Nand Singh, Director of Handloom and Sericulture
- Anubha Prasad, General Manager of SIDBI
- Sudhir Kumar, In-charge of the Incubation Centre, IIT Patna
- Rana Singh, Director of CIMP
- Kumod Kumar, CEO of CIMP-BIIF
- Sushil Sharma, Founder of Marwari Catalyst
Conclusion
The proposal to increase the startup seed fund to ₹25 lakh is a promising step towards enhancing the entrepreneurial landscape in Bihar. With government support, improved infrastructure, and a collaborative ecosystem, the state is poised to make significant strides in fostering innovation and entrepreneurship.
Note: This article is based on information available as of January 2026 and aims to provide an overview of the developments in Bihar’s startup ecosystem.
