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Startup Policy Rundown: J&K Launches Startup Policy, MP Announces $13.6 Mn Fund, And More

Startup Policy Rundown: J&K Launches Startup Policy, MP Announces $13.6 Mn Fund, And More

J&K Admin Council gives nod to state startup policy

Kerala government increases cap on store purchases from startups to $27,463

Madhya Pradesh announces $13.6 Mn fund for startups

Assam government signs MoU with IIM Calcutta to boost startup ecosystem in the state

India is caught in the midst of a big wave of entrepreneurship and the startup ecosystem is receiving the unequivocal support of both the central and state governments. Of India’s 29 states, 19 have already joined the Centre’s Startup India initiative by launching their own startup policies.

Now, even the ones lagging behind — mostly northern and northeastern states — are looking to strengthen their startup ecosystems by introducing startup policies / frameworks and extending funding and incubation facilities to startups. The latest among them is Jammu and Kashmir (J&K), which recently launched the J&K Start-up Policy-2018.

However, finding skilled resources remains a problem for startups. Anil Sahasrabudhe, the Chairman Professor of the All India Council for Technical Education (AICTE), said there’s a need to bring students into the fold of the startup culture and to provide them with a platform to convert their bright ideas into innovations. He said this while addressing a gathering on the 51st Annual Day of the National Institute of Technical Teachers Training and Research (NITTTR) recently.

“The lack of resources and unemployment are the major challenges. We should focus on startups. The AICTE has made its own startup policy through which universities and colleges along with their normal courses will start entrepreneurship courses,” said Sahasrabudhe

While state startup policies do focus on aspects like job generation and skilling of the youth in entrepreneurship to solve the two-edged problem of unemployment and lack of resources, the implementation at every level and infrastructural issues have remained a roadblock for the startup ecosystem     

Meanwhile, Inc42, which has been following all the developments related to the Indian startup ecosystem, including policy-related matters, is all set to bring to you a report on the State Of The Indian Startup Ecosystem 2018 at The Ecosystem Summit on November 16.

Until then, let’s take a look at the startup policy developments over the last month!

J&K Admin Council Gives Nod To State Startup Policy

India’s northernmost state, Jammu and Kashmir, has formally rolled out the J&K Start-up Policy-2018. The policy has been approved by the State Administrative Council (SAC), headed by Governor Satya Pal Malik. The new policy is aimed at inspiring young entrepreneurs in the state to pursue innovation and create a conducive and vibrant startup ecosystem in J&K.

With this, the state government also wishes to support existing startups in the state and help them grow through innovation and design. The policy will help in accelerating economic growth while generating employment opportunities in J&K.

According to the policy, which will be valid for the next 10 years, startups will be provided a monthly allowance of up to $166.9 (INR 12,000) for a period of one year during incubation.

Further, recognised startups will receive an one-time assistance of $16.7K (INR 12 Lakh) for product research and development. This assistance will also be available for startups that are working on introducing an innovative product or service in the market.

Kerala Govt Increases Cap On Store Purchases From Startups To $27,463

The Kerala government (Stores Purchase Department) has increased the cap on direct purchase of software products, services, and mobile app from startups approved by the Kerala Startup Mission (KSUM) from $6,865 (INR 5 Lakh) to $27,463 (INR 20 Lakh).

However, the government order is subject to the condition that a purchasing officer cannot purchase more than two mobile apps in a year from the same entrepreneur.

Further, the government emphasised that the benefit would be available only to startups that are registered with the Centre’s Department of Industrial Policy and Promotion (DIPP). It will extend the benefits and exemptions of the earnest money deposit (EMD), bid security, cost of tender forms, and security deposit etc to all startups.

Further, as per the notification, the startups have to be registered with the Kerala government’s Stores Purchase Department, as in the case of micro, small and medium enterprises (MSMEs). The decision is also aimed at extending to startups exemption from previous experience and turnover requirements (Otherwise essential for bidding).

Madhya Pradesh Announces $13.6 Mn Fund For Startups

At the recently concluded Startup Conclave in Bhopal, Madhya Pradesh (MP) chief minister Shivraj Singh Chouhan announced a host of initiatives aimed strengthening the startup ecosystem in the state. Chouhan announced a $13.6 Mn (INR 100 Cr) startup fund that will help promote the entrepreneurial activity in the state.

The CM also announced that the youth of the state will be given loans up to $13.6K (INR 10 Lakh) without interest as seed capital to start out on their entrepreneurial journey. Besides, policy changes will be made to enable the government to make purchases through startups of up to $41.06K (INR 30 Lakh) without tender.

Assam Govt Signs MoU With IIM Calcutta To Boost Startup Ecosystem

The Assam state government has already joined the startup bandwagon by launching its state startup policy. Now, to provide a boost to the startup environment in the state, the Assam government’s industries and commerce department has joined hands with the Indian Institute of Management (IIM), Calcutta.

“This is just the beginning. The state government intends to tie up with more educational institutions to form a pool, a reference point for startups in the state,” said Ravi Capoor, additional chief secretary to the industries and commerce department. Capoor added that the Assam government would soon inaugurate a startup incubation centre called ‘Assam Hub’, which will provide office space, support services, and other amenities for startups.

According to the Assam startup policy, the government will provide grants up to INR 50 Lakh per startup, which will include INR 5 Lakh for developing the idea to a proof of concept. The rest of the grant will be utilised towards the purchase of raw materials, marketing, and cost of commercialisation of products and services of startups.