The Jammu and Kashmir administration will establish a VC fund with an initial infusion of INR 25 Cr and a total outlay of INR 250 Cr
Under this, the union territory’s government will offer one-time seed funding of up to INR 20 Lakh for 25 startups per year
Jammu and Kashmire is currently home to 721 DPIIT-registered startups and local authorities want to increase the number to 2,000 by 2027
The Jammu and Kashmir (J&K) administration on Thursday (February 22) reportedly approved a startup policy to foster entrepreneurship in the union territory (UT).
An official spokesperson told PTI that the Jammu and Kashmir government plans to nurture 2,000 startups in the UT by 2027. As per the report, the J&K administration will establish a venture capital (VC) fund with an initial infusion of INR 25 Cr and a total outlay of INR 250 Cr.
This VC fund will reportedly be set up post consultations with the UT’s department of finance and nodal body J&K Entrepreneurship Development Institute (JKEDI) will also be roped in to ensure seamless facilitation of land to startups.
“There is also a provision of one-time assistance as seed funding of up to INR 20 Lakh (four equal instalments) will be provided to startups recognised by JKEDI which is nodal agency for startups. For seed funding, there is a cap of 25 startups per year which is a decision based upon available budget and desire to support a manageable number of startups effectively,” the spokesperson added.
The decision to approve J&K startup policy, spanning three years between 2024 and 2027, was taken during an administrative council meeting chaired by Lieutenant General Manoj Sinha.
Under the policy, the government will primarily infuse seed capital in select startups. The budgetary support for the implementation of the startup policy, over the next three years, has been capped at nearly INR 40 Cr.
Both government and private entities, along with high-net-worth individuals (HNIs), will reportedly support budding entrepreneurs in setting up their respective ventures. Alongside, a panel of key government officials will oversee proper implementation of the policy.
The policy comes more than three months after Sinha, last October, said that a new startup policy will be drafted and notified soon. At the time, he said that the UT government would provide a one-time seed funding assistance of up to INR 20 Lakh across four instalments.
The new policy will supersede the UT’s previous startup policy that was unveiled in 2018. The move is part of the administration’s bid to spur entrepreneurship in the region and create more jobs.
Jammu and Kashmir currently has 721 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), according to Startup India’s website. DPIIT ranked J&K’s startup ecosystem in the ’emerging ecosystems’ category in the recently released ‘States’ Startup Ranking 2022’.
Over the years, J&K’s authorities have touted the region’s entrepreneurship potential, particularly in the agritech sector. In January 2024, union minister Jitendra Singh said that the UT is emerging as one of the foremost agritech startup hubs in the country.
