The government has now become strict against the entrepreneurs who took loan to set up industry under the ambitious Mukhyamantri Udyam Yojana of Bihar Government. The Industry Department has tightened the noose on the entrepreneurs who did not repay the loan on time and has sent notices to more than 300 entrepreneurs, while the process of registering a certificate case against more than 50 has been started.

According to the Industry Department, 400 entrepreneurs have not deposited the installment even once after taking the loan. The department has to recover Rs 17.94 crore from all of them. These loans were distributed in the year 2018-19 and subsequent financial years. These entrepreneurs were given a chance to repay the loan in 84 installments in 7 years, but a large number of beneficiaries ignored it.

Under the Chief Minister Udyam Yojana, interest-free loans are provided to youth and rural entrepreneurs, which also has a provision of 50% grant (subsidy). Despite this, many entrepreneurs did not show any interest in returning the loan amount. According to the department, the loan will now be recovered with 12% interest rate and action will also be taken under the PDR (Public Demand Recovery) Act.

The Industry Department had instructed these entrepreneurs to deposit installments from time to time and submit the receipt in the office. Now the department is preparing to run a door-to-door recovery campaign. First of all, action will be taken against those beneficiaries who have been keeping the dues for the longest time.

This scheme is being run to set up diverse small industries like IT Business Center, Web Software Development, Readymade Garments, Leather Industry, Furniture Manufacturing. In the first installment of the loan, the beneficiary is given the amount for shed construction or resource gathering.

Sneha, General Manager, Industries Department, Vaishali, said, "The state government plans to ensure that the benefits of the schemes reach the right entrepreneurs and the recovery of government money is ensured. Strict action is being taken against entrepreneurs who have violated the rules as per departmental instructions." The department is now preparing a list of defaulters and a monitoring committee has been formed in each district to intensify monitoring at the local level.