Patna, April 20: Two separate funds would soon be created to revive sick industrial units and help start-ups set up base in the state.

In a mid-term review, which is planned to roll out in three months’ time, the state industries department is set to finalise the decision regarding the corpus.

Insiders in the department said both the funds are aimed at encouraging investors. Once decided, the twin funds would be added to the state industrial policy, 2006, which was amended in 2011.

“Both these ideas are in the planning stage at this moment. For creation of the corpus, planning has to be perfect and a system devoid of bottlenecks needs to be created.

“The mid-term review of the industrial policy will take place in another three months and the same will be discussed and tabled before the cabinet for approval.

“The creation of both these funds will be helpful when it comes to industrial growth and encouragement to prospective investors,” an official of the department said on condition of anonymity.

The official said that the department had sought help and assistance from industrial organisations like the Bihar Industries Association (BIA) and the Bihar Chamber of Commerce and Industries (BCCI), which will help the department towards planning and execution of both these planned schemes.

“The first scheme talks about creation of a fund for the sick industrial units.

“At present, the structural part of both the schemes has not been decided upon. The government, in association with industrial organisations, is still deciding how much fund will be reserved for the same, and the criterion and the classification on the basis of which the funds will be released among others. In a month or so, the more intricate guidelines will be decided upon,” he said.

The amount of money and under which plan head funds would be pumped in initially is still not known.

The industrial policy of 2011 had kept a provision for creation of a fund for revival of the sick units.

“There is a provision regarding the same. According to the policy points, the fund should be created by the state government in association with banks and industrial bodies.

“Despite the same being mentioned in the policy, the state government has still not been able to execute it. But in this financial year, the state government is quite serious about introducing the same,” another department official told The Telegraph.

The second scheme, being termed the “encouragement fund”, is meant for providing start-up finance to a budding entrepreneur.

“The basic idea of this fund is to help those entrepreneurs who have ambitious, impressive and realistic ideas, but find a roadblock when it comes to finds.

“Though the basic outline regarding this, too, is still to be created, in addition to the one mentioned above, this will be something new for entrepreneurs in the state. The ideas will be properly scanned, its feasibility will be checked thoroughly and the funds will be released according to a certain set of regulations. Both these schemes are expected to start in the latter half of this year,” the official said.

Industrialists in the state welcomed both the plans.

“The idea of setting up of a fund for sick industries had been a provision in the 2011 industrial policy and the same was a big boost for industrialists. The creation of the same will definitely help the sick units a lot and their rehabilitation will be fast.

The government is planning to execute the two schemes this year and it will definitely be a big boost,” P.K. Agarwal, the president of the Bihar Chamber of Commerce and Industries, said.