Start-ups are one of the most important sectors where different innovative ideas boost entrepreneurship. India is also focusing extensively on startups with various profitable central and state government schemes and initiatives to enhance entrepreneurial ideas to further economic growth. The state of Gujarat has been a pioneer in economic development and providing employment. In their New Industrial Policy of 2015, they have launched one new Scheme for Assistance to Start-ups/innovation. The scheme will be operational till December 2019.
What is the Scheme?
The scheme is to provide assistance to entrepreneurs starting businesses. An estimated 2,500 people will be supported under this scheme for next five years.
Nodal Agencies as identified for this scheme are Universities/educational institutions, Incubation centers/PSUs/R&D institutions, private and other organizations.
- Assistance for Innovation-
- Agencies will provide mentor services to the startup
- Once the entrepreneur’s project is recommended by the Nodal agencies and approved by Committee, Rs. 10,000 will be provided to the entrepreneur as sustenance allowance
- Maximum assistance of Rs 10 Lakh will be provided for Cost of Raw Material/Components and other equipment those are required for the innovation process
- The agencies will allow entrepreneurs to use facilities available in the agencies for startups
- Maximum 5 Lakh will be provided to the agencies for mentoring services
- Assistance once the Idea gets commercialized-
- Up to Rs 10 lakh will be provided to publicize and introduce the new business in the market
- Entrepreneurs will be helped in acquiring Venture Capital for their new marketed business
- The eligible entrepreneur and his/her new business will get 80% reimbursement of the net VAT paid except (a) Additional Tax, and (b) Reduction of ITC as per the provisions of the G VAT Act, 2003.
The eligible startups can avail other benefits under MSME scheme of Gujarat government. More more details on quantum of assistance click here
Any individual entrepreneur or group of entrepreneurs those having innovative ideas.
Detailed procedure to avail benefits:
- The agency intends to promote the start ups have to submit its proposal to IC (Industries Commissioner) office for approval of Committee as Nodal Institute.
- The entrepreneur can approach agency with his proposal of innovative idea/concept for recommendation.
- The Committee will approve the idea/concept of an individual or group of individuals duly recommended by the respective agency
- The institution will submit proposal to IC office to avail assistance for providing mentoring services and the committee will sanction the assistance based on number of innovators.
- The agency will submit proposal to IC to avail assistance for Cost of Raw material/ components & other related equipment required for innovation.
- The selected candidate whose project is approved by the committee will be eligible for sustenance allowance for one year and it will be paid by Director, CED.
- Assistance to the Nodal Institution will be released by IC.
- Once the idea gets commercialized, the Innovator can apply to IC to avail benefits such as venture capital assistance, marketing/publicity support, and apply to DIC for assistance under MSME scheme and Net VAT.
|Name||Shri H.D.Shrimali/Shri D.M. Parik|
|Designation||Addl. Commissioner of Industries/Joint Commissioner of Industries (Extn.) (Salt&Text.)|
|Address||Block No. 1, 3rd Floor, Udyog Bhavan, Sector 11, Gandhinagar-382 017|
|Phone||+91 79 23252532/23252580/23252684|
For more information CLICK HERE