We have seen first part of Action plan for Start ups, now let’s see another part in brief!
Let’s see Funding Support and Incentives?
#Providing Funding Support through a Fund of Funds
- In order to provide funding support to Startups, Government will set up a fund with an initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore over a period 4 years (i.e. INR 2,500 crore per year) .
- The Fund will be in the nature of Fund of Funds, which means that it will not invest directly into Startups, but shall participate in the capital of SEBI registered Venture Funds.
- The funds of fund shall ensure support to a broad mix of sectors such as manufacturing, agriculture, health, education, etc.
#Credit Guarantee Fund for Startups
- To catalyse entrepreneurship by providing credit to innovators.
- In order to overcome traditional Indian stigma associated with failure of Startup enterprises in general.
- To encourage experimentation among Startup entrepreneurs through disruptive business models, credit guarantee comfort would help flow of Venture Debt from the formal Banking System.
#Tax Exemption to Startups for 3 years
- With a view to stimulate the development of Startups in India and provide them a competitive platform, it is imperative that the profits of Startup initiatives are exempted from income-tax for a period of 3 years.
- This fiscal exemption shall facilitate growth of business and meet the working capital requirements during the initial years of operations.
#Launch of Atal Innovation Mission (AIM) with SETU Program
To serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses and other self-employment activities, particularly in technology driven areas.
The Atal Innovation Mission (AIM) shall have 2 core functions:
- Entrepreneurship promotion –
Through Self-Employment and Talent Utilization (SETU), wherein innovators would be supported and mentored to become successful entrepreneurs and establishment of 500 Tinkering Labs.
- Innovation promotion –
To provide a platform where innovative ideas are generated.
Launch of Grand Innovation Challenge Awards for finding ultra-low cost solutions to India’s pressing and intractable problems
The main components proposed to be undertaken as part of the mission include:
#1. Setting up of 7 New Research Parks Modeled on the Research Park Setup at IIT Madras
- To propel successful innovation through incubation and joint R&D efforts between academia and industry
- The IIT Madras Research Park endeavors to enable companies with a research focus to set up a base in the Park and leverage the expertise of IIT Madras.
- Creating a collaborative environment between industry and academia through joint research projects and consulting assignments.
#2. Promoting Startups in the Biotechnology Sector
Department of Biotechnology endeavors to scale up the number of Startups in the sector by nurturing approximately 300-500 new Startups each year to have around 2,000 Startups by 2020.
The Department of Biotechnology shall be implementing the following measures along with its PSU Biotechnology Research Assistance Council (BIRAC) :
- Biotech Equity Fund – BIRAC AcE Fund in partnership with National and Global Equity Funds (Bharat Fund, India Aspiration Fund amongst others) will provide financial assistance to young Biotech Startups.
- Bengaluru-Boston Biotech Gateway to India has been formed.
- Letter of Intent has been signed between DBT, GoI and Department of IT, Government of Karnataka for the same.
Finally, can we expect Startup India will be the real boost for Make in India and Digital India Mission ? Let us know!
Would you like to give answer of this question!
#Q.Will the Start-up India campaign end up making India the start-up hub of the world? Critically comment.
Published with inputs from Arun
