The Bihar cabinet has approved the Bihar MSME Policy 2026, targeting the creation of one crore entrepreneurial families and one crore direct and indirect jobs over the next five years. The policy is intended to strengthen the state’s economic base by improving access to finance, markets, skills and technology.
The cabinet approved the detailed framework on Wednesday under the chairmanship of Chief Minister Samrat Choudhary. Cabinet Secretariat Department Additional Chief Secretary Arwind Kumar Choudhary said the policy’s motto is ‘Ek crore udyami parivar, sashakt Bihar ka aadhar’, or one crore entrepreneurial families as the foundation of a strong Bihar.
The policy seeks to raise Bihar’s credit-deposit ratio to 75% from its current level of slightly over 60%. It provides for an MSME corpus and growth fund to improve access to finance for entrepreneurs. An MSME centre will also be established in each of the state’s 38 districts.
The framework identifies 10 pillars of economic activity. These include promotion of the informal economy, skill upgradation, cluster-based development, access to the MSME corpus fund and markets, emerging sectors, cooperatives, technology and environmental sustainability.
The cabinet also approved a proposal from the water resources department to sign a memorandum of understanding with the National Institute of Hydrology, Roorkee, for delineating floodplain zones along the Ganga’s major tributaries in Bihar. The study will cover the Kosi, Gandak and Sone rivers, with Rs 1.99 crore sanctioned for the work.
A separate emergency plan to assess the condition and safety of identified embankments across the state was also approved. The Rs 8.32-crore exercise is to be completed within eight months of commencement. It will include possible inundation maps based on dam-break analysis, emergency action plans for individual embankments and coordination arrangements between district administrations and disaster management agencies. An operation and maintenance manual will also be prepared.
The cabinet approved the expansion of the Sonepur project area to accommodate proposed national and state-level projects. The existing mega Sonepur plan includes a greenfield satellite township, an international greenfield airport, a film city, educational institutions and other development projects.
It also approved lifting the ban on the sale, purchase and transfer of land within the project areas of 11 proposed satellite townships. Once the township development plans are notified, construction, land development and land use in these areas will be governed by the respective plans.
In aviation-related decisions, 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 scheme to promote the UDAN regional connectivity programme. The funds, comprising central and state contributions, will be paid to aviation companies operating flights under the scheme in accordance with the memorandum of understanding between the Centre and the state government.
