Rajasthan Startup Policy 2015: 50 Incubators, 500 Startups And $83 Mn Capital Fund

Rajasthan Chief Minister, Smt. Vasundhara Raje, unveiled the ‘Rajasthan Startup Policy – 2015’  while inaugurating the first edition of the  ‘Rajasthan Startup Fest’, a national level startup event designed to boost entrepreneurship in the state.

Speaking at the Startup Fest, Smt. Raje said, “If Bangalore is where it all began in startups, I can assure you Rajasthan is where it will be. Rajasthan is a world-beater and will remain so in the times to come.”

Just a few days back, it was reported that under this startup policy, the Rajasthan government will  allocate $8.4 Mn (INR 55 crores) to bring investments over $76 Mn (INR 500) crores to set up 500 startups in the next 5 years.

Key targets of the policy remained the same as expected – 50 Incubators / Incubator-like Organizations to be established, 500 innovative startups to be supported and incubated, 100,000 sq ft of Incubation Space to be developed / facilitated, Angel and Venture Capital of Rs 500 Cr to be mobilized for startups, Development of an Innovation and Problem Solving Culture across the State.

In order to attain these targets, the government has proposed a stellar Startup Policy, as follows –

1. Sustenance allowance of INR 10,000/- per month for one year to the Startups at Idea/Prototype Stage, post approval by the Committee and Nodal Institution.
2. Incubator will provide mentoring services, access to their labs, facilities etc on a free-of-cost (FOC) basis.
3. Selected startups to get free access to state infrastructure like University/Libraries/ Govt. Laboratories etc.
4. Assistance for Startups at the Pilot Stage, under which marketing assistance of maximum INR10 lacs will be provided to the startup to launch its product.
5. Scope for financial assistance wherein the startup can source Venture Capital from Angel Investors/Venture Capital Funds.
6. Selected Students entrepreneurs to be given grace marks and attendance in educational institutions. Further, their project may also count towards their degree completion credits.
7. Special incentives and a state-wide business plan competition to invite new innovative business idea from across the state.
8. Incentives, including grants, have also been extended to angel investors
9. The policy also provides for Routine Startup Festivals to be held in the State.
10. Startup Council to be setup with representatives from the industry to play an advisory role and act as a think-tank for strengthening the startup eco-system in the state.
11. Plans are being drawn to setup a Rajasthan Startup Village and e-Platform. Until the setup is done, a cloud server for start-ups, MOOCs and co-ordinating with various related state and central govt. agencies has been proposed to further strengthen the start-up eco-system.

The focus will be on areas like Social and Cleantech – Rural Infrastructure & Services, Crafts, Water, Sanitation, Renewable Energy and Healthcare, including asset light models of healthcare delivery and medical device. Mobile and Information Technology, including but not limited to crowd sourcing, crowd funding, and online financial services will also be in focus

The policy also talks about Internet of Things (IoT), Electronics and Hardware. Adding to that, Rajasthan being a culturally rich state – ‘IT for X’ in the areas of Garment and Crafts, Mining and SME Manufacturing and Services will also be in focus.

The ‘Rajasthan Startup Fest’ has been organised by the Rajasthan State Industrial Development & Investment Corporation (RIICO); Startup Oasis, a Jaipur-based incubation centre set up by RIICO and CIIE; and the Centre for Innovation, Incubation & Entrepreneurship (CIIE) of the Indian Institute of Management (IIM), Ahmedabad.