Gujarat Government is all set to announce a new startup policy in the next 15 days especially for technology start-ups where private incubators and accelerators are expected to play a role in creating a start-up ecosystem in the state.
“Under the policy the government aims to establish 100 incubators in Gujarat and develop one million sq ft of incubation space besides facilitate investment of $1 billion to start-ups through VC funding over next five years,”
said Gujarat’s IT, science and technology secretary Dhanajay Dwivedi on the sidelines of a day long ‘Start-up Summit’ organized by the Internet and Mobile Association of India (IAMAI) and supported by Google here on Friday.
Gujarat government also plans to hold two major summits and a conference later this year to promote the technology-driven start-up policy and other policies. Both these summits and conference will be part of pre-Vibrant Gujarat 2017 events.
“A national summit on technologies will be held in second week of August, where over 3,000 start-ups from the state will participate. We will also be calling VCs, incubators and accelerators from across the country and give them a platform to interact,” he added.
In terms of equity support, start-ups may also be able to avail additional 25% of raised capital from Gujarat Venture Finance Limited (GVFL) on the same terms within 6 months. Under the aegis of Vibrant Gujarat 2017, the state government is also planning 2 national level technology summits including one in August that will see 4000 start ups, accelerators, incubators, VC’s and mentors converge at Mahatma Mandir in Gandhinagar. A national conference on technology where IT, electronics and BT will be focus areas will be held on 30th September-1st October.
The BJP government also announced a slew of incentives for incubators and startups, including financial assistance of up to Rs. 50 lakh for fixed capital investment and up to Rs. 5 lakh per annum for guidance of startups. They would be given 100 per cent waiver on stamp duty and registration. Also, they would get a rebate of 100 per cent amount of electricity duty for five years and 50 per cent assistance for software purchase up to Rs. 1 crore to incubators.
For startups, the government’s incentives include partnership of startup units for government’s e-governance project, up to 25 per cent equity-linked financial assistance in fund taken for venture capital fund, 100 per cent discount on stamp duty and registration fee and product development and marketing assistance, Rs. 15 per square feet per employee lease rental assistance, Rs. 2 lakh for local patent and Rs. 5 lakh for international patent and some other incentives up to 7 years period.