Good news for entrepreneurs in Bihar: State gets 1st 'Startup hub' in Patna

It's better to be late than never. Bihar government has finally launched a platform for budding entrepreneurs and startups in the state who have been waiting for a long. Deputy chief minister and the information technology minister Sushil Kumar Modi has inaugurated a startup hub -- a dedicated common office infrastructure for IT sector startups in Patna.

The state government is committed to providing necessary assistance to youths who would come forward to set up startups in the state.

In addition, the government is planning to build an IT tower in Patna. Professionals can apply for office space at concessional rates. The plans for Bihta IT city and a 100-acre campus in Rajgir are under process.

According to Rahul Singh, secretary, information, and technology department, a total of 24 startups have been given office space along with infrastructure support such as free electricity, Internet and rental free space in 14,000 square feet area by the state government in Biscomaun Towers to grow and become established companies, reports The Telegraph.

As far as financial support is concerned, the government has created a Rs 500 crore venture capital fund, out of which Rs 50 crore have been reimbursed. They will provide space in the industrial parks at 10 percent rates, reimbursement for patent filing along with the common infrastructure to startups.

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Under the Bihar Startup Policy 2017, startups which completed five years of registration and have a turnover of less than Rs 25 crore can avail funding and incubation support under the Bihar Industrial Investment Promotion Policy 2016.

Entrepreneurs, however, say the five-year criteria has been stringent and the access to funding support is limited to a few privileged ones.

The Bihar government launched the Bihar Startup Policy in March 2017 by CM Nitish Kumar with an aim of making the state a preferred destination for entrepreneurs and startups.

Despite government's efforts, there is no any sign of prominent startup emerging from the state. The lack of infrastructure, migration of youths, and lack of political will are major reasons for having very slow growth in terms of startup and IT ecosystems.