In another milestone towards the boost of the Indian startup ecosystem, the State Government of Chattisgarh has launched the ‘Start-up Chhattisgarh’ initiative. The idea behind the initiative is to develop entrepreneurship and promote innovation.
Under this initiative, the state government reportedly aims at nurturing startup companies which are closer to the local environment. The government will give preference to startups in priority sectors like healthcare, animal husbandry, and value-addition of core sector products.
The event took place at Shri Shankaracharya Institute of Professional Management and Technology in Sejbahar area, Chattisgarh.
Talking at the event, Raman Singh, Chief Minister, Chattisgarh said, “Youth has no dearth of ideas. Lots of creative ideas take shape in their mind. They should convert them into business ideas according to the needs of the market to provide facilities to people at lower rates in a convenient manner. They need to be fearless to bring their ideas into commercial products.”
The CM also announced a list of measures that would be supported by the state government and aimed at nurturing startups.
“Under the initiative, 14 camps will be set up in Chhattisgarh, which will be used as platforms to present ideas and the best out of them would be selected for incubation. At least 3,000 ideas will be collected through these camps and in the first phase and 36 startup units covering the selected ideas will be developed in the next four months,” he added.
The minister also stated that while the MSMEs (micro, small and medium enterprises) startups shall be eligible for 60% subsidy on land premium in government industrial parks, all startups will be given facilities to undergo self-certifications for various state laws as well.
“The first 36 startups established in the state would be reimbursed (with) all state government taxes paid by the startups, for the first three years. Apart from this, assistance will be given in preparing the project report, quality certifications, and technical patent costs,” he said.
A 75% subsidy would also be provided to budding entrepreneurs on term loans amounting up to $104K (INR 70 lakhs) for six years. He also announced the fixed capital subsidy of 35%-40% on a maximum amount of $523K (INR 3.5 Cr).
Under the mandates of the programme, electricity duty shall be exempted for 10 years, as well as stamp duty for the purchase or lease of land for the startups.
Chattisgarh joins a long line of states who are proactive and receptive to homegrown startups.
In June 2016, the Gujarat government announced its IT and electronics startup policy to promote 2,000 new ventures in the next five years in the state. Under this policy, 50 incubators were proposed to be developed to mentor and guide the startups.
Last month, Odisha’s State Government led by Naveen Patnaik cleared a startup policy for the state. The state has aimed to set up 1,000 startups in the next five years for which the state’s MSMEs will provide a seed fund of $3.7 Mn (INR 25 Cr). Following the announcement, Patnaik met over 60 companies and received investment commitments of $13.5 Bn (INR 90490 Cr) for state investments.
Earlier in September 2016, the Bihar Government had also cleared the launch of the state’s startup policy. The policy includes a startup venture capital fund that aims at boosting entrepreneurship in the state.
Telangana, Uttar Pradesh, Karnataka, and Rajasthan are the others states that have already announced policies pertaining to startups.
This development was first reported in Business Standard.