Bihar cabinet greenlights ₹2 lakh financial aid for 9.4 million poor families

The Bihar cabinet has approved the "Bihar Laghu Udyami Yojana" (Bihar Small Entrepreneur Scheme), providing financial assistance of ₹2 lakh each to over 9.4 million families identified as economically poor in the recent caste and economic survey. The scheme, set to span five years, targets families with a monthly income below ₹6,000, aiming to create self-employment opportunities. The state industries department will oversee the implementation, selecting beneficiaries through a computerized randomization process.

The approved scheme covers a diverse range of small industrial or processing units, including handicrafts, textiles, saloons, eateries, and 63 other types of units. In addition, the cabinet expanded financial aid for students from economically backward classes, extending support to those preparing for various recruitment exams.

The socio-economic data released on November 7 last year revealed that 34.13% of families in Bihar, totaling 9,433,312 families, are economically poor. The breakdown indicated 3.31 million families from extremely backward classes (EBCs), 2.47 million from other backward classes (OBCs), 2.34 million from scheduled castes (SCs), 1.08 million from the general category, and 201,000 families from scheduled tribes (STs).

Under the newly approved financial aid scheme, all qualifying poor families can apply online and produce proof of family income for consideration. The selection process will employ a computerized randomization approach based on budgetary allocations, overseen by a state-level project monitoring and implementation committee. District magistrates will lead the implementation at the district level.