CM Samrat Choudhary Unveils Aggressive 'Make in Bihar' Procurement Policy and ₹50 Cr Tender Preference
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In an aggressive policy pivot aimed at transforming the state from a consumer market into an industrial powerhouse, Chief Minister Samrat Choudhary announced sweeping procurement mandates during the state-level orientation of the Mukhyamantri Udyami Yojana (Chief Minister's Entrepreneur Scheme) at Bapu Sabhagar in Patna on Thursday, October 8, 2026. Declaring that external suppliers will no longer dominate domestic government purchases, Choudhary asserted that companies producing bicycles or manufacturing steel in other states must establish factories inside Bihar if they wish to supply government programs. Backing the 'Make in Bihar' push with statutory force, the state government has officially amended public procurement and tender norms, granting local entrepreneurs first right of refusal on high-value public infrastructure contracts.
Overhaul of Public Tender Norms: Bihari Firms Win Big on Contracts Up to ₹50 Crore
The state cabinet has overhauled standard public procurement guidelines to ensure local industries receive direct government business:
Price Matching Advantage (L2 to L4): Under the newly amended procurement rules, for all state government tenders valued up to ₹50 crore, if a Bihari entrepreneur ranks as L-2, L-3, or L-4 in competitive bidding and agrees to match the lowest qualified rate (L-1), the government contract will be awarded directly to that local entrepreneur.
Strict Local Sourcing Mandates: Whether purchasing bicycles for student welfare distribution schemes, construction steel for public infrastructure, or raw fabrics for uniforms, the state will source strictly from manufacturers with active production lines within Bihar.
'Set Up Base or Lose Business': Pointing directly to legacy external manufacturing hubs, the Chief Minister remarked: "Now no bicycle manufacturer will come from Ludhiana and sell bicycles in Patna; they will have to produce them here. Similarly, steel plants in other states will not see their products purchased unless they have established their production facilities in Bihar."
₹96 Crore Disbursed Under Udyami Scheme: ₹2 Lakh First Installment to 4,800 Youth
The state's Department of Industries backed the policy declaration with immediate direct capital disbursements to emerging business owners:
Direct Capital for New Beneficiaries: Industry Minister Shreyasi Singh confirmed that under the current fiscal year (2025–26), the state has initiated the transfer of the first installment of ₹2 lakh each to 4,800 newly selected entrepreneurs, releasing approximately ₹96 crore directly into beneficiary bank accounts.
Support for Earlier Batches: An additional tranche exceeding ₹40 crore was disbursed as second and third installment payments to previous beneficiaries to scale operational units.
Central MSME Allocation: Choudhary highlighted that of the nationwide ₹10,000 crore MSME fund announced by Prime Minister Narendra Modi, Bihar has secured a one-tenth share (approximately ₹1,000 crore) to bolster local industrial clusters and enterprise infrastructure.
Bihar MSME Policy 2026: Targeting 1 Crore Jobs and Raising Credit-Deposit Ratio to 75%
The enterprise push aligns with long-term industrial restructuring frameworks designed to boost credit flow and localized processing:
Massive Employment Target: The overarching goal of the Bihar MSME Policy 2026 is to generate over one crore direct and indirect jobs, fundamentally transforming the state's youth from job seekers into job creators.
Boosting Banking Liquidity: The state has set an ambitious target to raise its historically low Credit-Deposit (CD) ratio from 7 percent up to 75 percent, directing bank credit into regional manufacturing and industrial startups.
Chief Minister's Cluster Development Plan 2026: Launching the "One District, One Cluster" and "One District, One Product" frameworks, the initiative connects traditional rural handicrafts, agri-processing, and handlooms with modern automated machinery and national e-commerce supply chains.
Administrative Presence: The high-level orientation saw the presence of Minority Welfare Minister Mohammad Zaman Khan, Backward and EBC Welfare Minister Rama Nishad, SC/ST Welfare Minister Lakhendra Kumar Roshan, Industries Department Secretary Kundan Kumar, Chief Secretary Pratyaya Amrit, BIADA MD Naveen Kumar, and MSME Director Aman Sameer.
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