Bihar Laghu Udyami Yojana
Bihar state government scheme
Bihar Laghu Udyami Yojana gives a poor family a grant of Rs 2,00,000 in three instalments to set up a micro-enterprise in one of 62 approved trades. The Industries Department targets about 94 lakh families with monthly income below Rs 6,000, selects beneficiaries by computerised randomisation, and pays through laghuudyami.bihar.gov.in. Nothing is repaid.
What is Bihar Laghu Udyami Yojana?
Bihar Laghu Udyami Yojana (BLUY) is the Industries Department's answer to a finding of the state's own caste survey: that roughly 94 lakh families in Bihar live on a monthly income below Rs 6,000. The scheme gives such a family a grant of Rs 2,00,000 to set up a micro-enterprise: released in three instalments, spread across 62 approved trades, and with nothing to repay.
The Directorate of Micro, Small and Medium Enterprises runs the scheme from Vikas Bhawan, Patna, on a dedicated portal at laghuudyami.bihar.gov.in, reached from the department's main entrepreneurship site, udyami.bihar.gov.in. Because the eligible pool is enormous and the money released in any one round is finite, selection is made by computerised randomisation, a computer-run lottery among valid applications.
Key features
- Rs 2,00,000 grant per family, with no interest and no repayment.
- Three instalments, commonly Rs 50,000, Rs 1,00,000 and Rs 50,000, released against verified progress.
- 62 approved project types to choose from.
- Open to all castes; General, BC, EBC, SC, ST and minorities.
- Monthly family income below Rs 6,000 is the qualifying test.
- One beneficiary per family.
- Selection by computer lottery, not by order of application.
- Free to apply, entirely online, with Aadhaar OTP login.
The distinction from Bihar's other flagship, Mukhyamantri Udyami Yojana, which offers a much larger package with a loan component; matters. BLUY is smaller, is a pure grant, and is aimed specifically at the poorest households identified by the caste survey rather than at educated first-generation entrepreneurs.
Who is eligible for Bihar Laghu Udyami Yojana?
You can apply if:
- You are a permanent resident of Bihar with a residential certificate.
- Your family's monthly income is below Rs 6,000, and your household appears among the poor families identified in the state caste survey.
- You meet the minimum age condition notified for the round, evidenced by a Matric or age certificate.
- No other member of your family has already been selected under the scheme.
- You will run one of the 62 approved project types.
- You have an Aadhaar linked to a working mobile number, since login is by OTP.
The scheme is caste-neutral in coverage. General category families meeting the income test apply through the same portal and the same lottery as SC, ST, EBC, BC and minority families.
You cannot apply, or will be rejected, if:
- Your family's monthly income is Rs 6,000 or more.
- You are not a permanent resident of Bihar.
- Another member of your family has already been selected under BLUY. The grant is one per family, not one per person.
- You want to run a business outside the 62 approved trades.
- You are already drawing benefit for the same purpose under Mukhyamantri Udyami Yojana or an equivalent state assistance scheme.
- You apply outside the notified window for a round.
- Your Aadhaar is not linked to a live mobile number, which makes OTP login impossible.
What documents are required?
| Document | Mandatory | Notes |
|---|---|---|
| Aadhaar card | Yes | Login is by Aadhaar and OTP; mobile must be linked |
| Residential certificate | Yes | Via RTPS; establishes permanent residence in Bihar |
| Caste certificate | Yes | All castes covered; the category is recorded |
| Matric or age certificate | Yes | Date of birth proof |
| Bank account details | Yes | Instalments are credited here; a current account is needed at disbursement |
| Photograph and signature | Yes | Scanned to the sizes shown on the upload screen |
| Chosen project details | Yes | Must be one of the 62 approved trades |
Get the residential and caste certificates through RTPS before the window opens. Rounds are short, and applicants who start collecting certificates after the announcement routinely miss the close.
How to apply for Bihar Laghu Udyami Yojana
- Open udyami.bihar.gov.in and confirm that a Bihar Laghu Udyami Yojana round is open, then follow the link to laghuudyami.bihar.gov.in.
- Register and log in with your Aadhaar number, and verify with the OTP sent to your Aadhaar-linked mobile. Never share that OTP with anyone, including a cyber cafe operator.
- Fill in the application form; personal details, family income, category, district, block and panchayat — exactly as they appear on your documents.
- Select your project from the list of 62 approved trades. Choose something you can actually run in your own location, because the instalments are released against progress on this specific project.
- Upload the documents, Aadhaar, residential certificate, caste certificate, age proof, bank details, photograph and signature, in the formats and sizes the portal specifies.
- Submit the application and download the acknowledgement carrying your application number. Applications cannot be edited after final submission, so check every field before you commit.
- Wait for the computerised randomisation. The selected list is published on the portal, and selected applicants are also informed on their registered mobile number.
- If selected, complete verification and training, open the required bank account for the enterprise, and receive the first instalment.
There is no offline application. If you cannot fill the form yourself, use a Common Service Centre or the district's General Manager, District Industries Centre, for assistance, but the application itself is always filed online and is always free.
How are the three instalments released?
Bihar splits the Rs 2,00,000 across three releases tied to the progress of the enterprise: commonly described as Rs 50,000 first, Rs 1,00,000 second and Rs 50,000 third. The pattern is deliberate: a small first tranche to start, the largest tranche when the unit is visibly taking shape, and a final tranche on completion.
Each release follows verification. Officers check that the previous tranche was spent on the approved project, and selected beneficiaries also go through training before the money begins to flow. Keep every bill, cash memo, and a dated photograph of the shop, machine or stock you buy. Beneficiaries who cannot document what they did with the first Rs 50,000 are the ones whose second instalment stalls.
Money diverted to household expenses, or to a business other than the approved project, is treated as misuse and can be recovered.
How to check your application and selection status
- Log in at laghuudyami.bihar.gov.in with your Aadhaar number and OTP.
- Open the application status view for your application number.
- Read the stage, submitted, in randomisation, selected, verified, training done, or instalment released.
- Check the selected list published on the portal after each randomisation.
- Confirm each instalment in your bank passbook, which is the final proof of a credit.
Why applications fail, and how to avoid it
- Income declared at or above Rs 6,000 a month, which puts you outside the scheme's definition of a poor family.
- Missing or expired residential or caste certificate. Both have validity periods and both are checked.
- Aadhaar not linked to a live mobile number, blocking OTP login entirely.
- A second application from the same family, flagged as a duplicate.
- Document uploads outside the permitted format or size, which the portal rejects at the upload step.
- Not being drawn in the lottery. This is not a rejection on merit, an unselected applicant can apply again when the next round is notified.
- Failing verification or training after selection, which stops the first instalment.
- Second instalment stalled because spending on the first was not documented.
Key dates and rounds
Bihar Laghu Udyami Yojana runs in notified rounds, not continuously. The department announces a window on udyami.bihar.gov.in, keeps it open for a limited period, closes it, runs the randomisation, and publishes the selected list. The most recent round's window closed in March 2026. Anyone waiting for the next call should keep the residential and caste certificates current, because the gap between announcement and closing is usually weeks, not months.
Where to get help
- Toll-free helpline: 18003456214, weekdays 10 am to 5 pm
- Email: dir-msme.ind-bih@gov.in
- Postal address: Director, Micro, Small & Medium Enterprises, Industries Department, Government of Bihar, Vikas Bhawan, 2nd Floor, New Secretariat, Patna 800015
- General Manager, District Industries Centre in your district, for verification, training and instalment problems
- Nodal officer list published on the portal, for district-level escalation
Application is free and selection is by computer lottery. No official, agent or middleman can put your name on the selected list, and no genuine officer will ever ask for the OTP sent to your Aadhaar-linked mobile number.
Documents required
Frequently asked questions
How much money does Bihar Laghu Udyami Yojana give?
The scheme gives Rs 2,00,000 per selected family as a grant, released in three instalments as the micro-enterprise is set up. There is no interest, no EMI and nothing to repay, which is the main difference between this scheme and Bihar's loan-linked entrepreneurship programmes.
Do I have to repay the Rs 2 lakh?
No. Bihar Laghu Udyami Yojana is a grant, not a loan. The money carries no interest and no repayment schedule. What it does carry is a condition — later instalments are released only after the earlier money is shown to have been spent on the approved project, so unspent or diverted funds stop the next tranche.
Who is eligible for Bihar Laghu Udyami Yojana?
Families identified as poor in Bihar's caste survey, with monthly family income below Rs 6,000, are the target group, across all castes — General, Backward Classes, Extremely Backward Classes, Scheduled Castes, Scheduled Tribes and minorities. The applicant must be a permanent resident of Bihar and only one member per family can be selected.
How are beneficiaries selected?
Selection is by computerised randomisation — a computer-run lottery among valid applications, because applications far exceed the number of grants released in a round. Filing early in the window does not improve your chance, and no official or agent can influence the draw.
How is the Rs 2 lakh released?
The grant is released in three instalments tied to the progress of the enterprise, commonly described as Rs 50,000, then Rs 1,00,000, then Rs 50,000. Each release follows verification that the previous tranche was spent on the approved project, so keep every bill, receipt and photograph.
What businesses can I start under the scheme?
The scheme lists 62 approved project types across sectors such as food processing, textiles and readymade garments, wood and furniture, leather, manufacturing, repair and service trades. You must pick your project from that list on the portal; a business outside the list cannot be funded.
Who cannot apply?
Families with monthly income of Rs 6,000 or more, applicants who are not permanent residents of Bihar, and families in which another member has already been selected under the scheme are not eligible. A person already benefiting under Mukhyamantri Udyami Yojana for the same purpose also cannot draw this grant.
Is there any fee to apply?
No. Application on laghuudyami.bihar.gov.in is free, and selection is by computer lottery. Anyone promising selection for a payment is committing a fraud — report it on the toll-free number 18003456214.
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