The Bihar government launched the Bihar Startup Policy 2017 on Tuesday with the aim of making Bihar the most preferred destination for entrepreneurs and startups.

According to a report in YourStory, this startup policy – launched by CM Nitish Kumar - is the revamped and improved version of the startups policy that was introduced in 2016 and then repealed to include the suggestions and feedback received.

As a part of the policy, a fund of Rs 500 crore has been set up to facilitate entrepreneurship. Nitish Kumar called for transparency and open communication in the application process for eligibility to the funding.

The startup policy has four primary pillar called YUVA, as per the YourStory report. Y stands for ‘Yes to startups which will focus on spreading awareness, networking and mentoring for the startups. U stands for 'Unleashing regulatory enablers for supporting startups', V for 'Vibrancy in the education system to encourage and facilitate startups', and, A, which stands for 'Access to financing and incubation support'

Under the policy, the government has also set up a nodal agency. Financial aid of up to Rs 10 lakhs will be provided to eligible startups as an interest-free loan for 10 years. Free access to angel investors will also be provided along with a free valuation for startups. All costs related to filing domestic patents will be borne by the government.

Incubators will also be given financial assistance. In addition, incubation costs up to Rs 2 lakhs will be reimbursed by the government.

The government will also be setting up an innovation hub called the Bihar innovation hub which will incubate startups, give them access to mentors and funding. Facilitation centres at educational institutes, development cells will also be set up.

Finally, for three years, startups can avail common infrastructure support like testing labs, R&D labs and software for free.