Bihar Cabinet Approves MSME Policy 2026, Targets 1 Crore Entrepreneurial Families and Jobs

Patna, Oct 29 (KNN) The Bihar Cabinet on Wednesday approved the Bihar MSME Policy 2026, which aims to create one crore entrepreneurial families and one crore direct and indirect jobs over the next five years to strengthen the state's economy.

Chief Minister Samrat Choudhary had announced the policy earlier. The cabinet approved its detailed framework, which seeks to improve access to finance and raise Bihar's credit-deposit (CD) ratio to 75 per cent from slightly over 60 per cent currently.

The policy's motto is 'Ek crore udyami parivar, sashakt Bihar ka aadhar' (one crore entrepreneurial families, the foundation of a strong Bihar), Cabinet Secretariat Department Additional Chief Secretary Arwind Kumar Choudhary said, the Times of India reported.

Ten Pillars to Drive MSME Growth

The policy identifies 10 pillars, including promotion of the informal economy, skill development, cluster-based growth, access to the MSME corpus fund and markets, emerging sectors, cooperatives, technology and environmental sustainability.

It also provides for setting up an MSME centre in each of Bihar's 38 districts, along with an MSME corpus and growth fund to improve access to finance.

Floodplain Mapping and Embankment Safety Measures

The cabinet approved an MoU with the National Institute of Hydrology (NIH), Roorkee, to map floodplain zones along the Ganga's major tributaries in Bihar, including the Kosi, Gandak and Sone. It sanctioned Rs 1.99 crore for the study.

It also cleared an Rs 8.32-crore emergency plan to assess the safety of identified embankments across the state, to be completed within eight months of commencement. 

The plan includes inundation maps based on dam-break analysis, emergency action plans for individual embankments and coordination arrangements with district administrations and disaster management agencies. An operation and maintenance manual will also be prepared.

Sonepur Project Area and Satellite Townships

The cabinet approved expanding the Sonepur project area to accommodate proposed national and state-level projects, including a greenfield satellite township, international airport, film city and educational institutions.

It also lifted the ban on sale, purchase and transfer of land within the project areas of 11 proposed satellite townships. Once their development plans are notified, construction, land development and land use will be regulated under the respective plans.

Flight Training and UDAN Funding

The cabinet approved a 30-year lease of 1,000 square metres of land at Saharsa airport to G R D Air Academy Private Limited for a flight training organisation and related activities.

It also sanctioned Rs 43.50 crore under the viability gap funding (VGF) scheme to support the Centre's UDAN regional connectivity programme, as provided for in an MoU between the Centre and state government. The funds, comprising central and state contributions, will be paid to airlines operating flights under the scheme.

(KNN Bureau)