Modi government who keeps the vision to have a startup in every village and every lane of India announced its action plan.Modi Government announced in last month that there would be mission for Startup India Stand up India. at the #Startup India Standup India event in Delhi, Prime Minister Narendra Modi stated the government’s plan of action for startups.
Here are 12 Major action plans from the Start up India Stand up India mission. Let us view the important announcements
1)Annual Incubator Grand Challenge
To support creation of successful world class incubators in India, GoI shall identify and select 10 incubators who have the potential to become world class.
These incubators would be given INR 10 crore each as financial assistance which may be used for ramping up the quality of service offerings.
2)Setting up of 7 new research parks modelled on the research park at IIT Madras
Government shall set up 7 new Research Parks in 6 IITs and 1 IISc with an initial investment of INR 100 crore each
The parks shall enable companies with a research focus to set up base and leverage the expertise of academic/research institutions.
3)Innovation Focused Programs for Students
Innovation core program shall be initiated to target school kids with an outreach to 10 lack innovations from 5 lack schools.
A grand challenge program (“National Initiative for Developing and Harnessing Innovations”) to support and award INR 10 lakhs to 20 student innovations from innovation and Entrepreneurship Development Centres.
Uchhattar Vishkar Yojana has earmarked INR 250 crore per annum towards fostering “very high quality” research amonnst IIT students
4)Launch of Atal Innovation Mission (AIM)
- Institution of Innovation Awards (3 per state/UT ) and 3 National level awards
- providing support to State Innovation Council for awareness creation and organising state level workshops/ conferences
- Laugh of Grand Innovation Challenge Awards for finding low cost solutions to India’s pressing and intractable problems.
5)Setting up of 35 new incubators in institutions
Funding support of 40% ( subject to a maximum of INR 10 crore) shall be provided by Central government for establishment of new incubators in existing institutions for which 40% funding by the respective State Government and 20% funding by the private sector has been committed
6)Credit Guarantee Fund for Startups
To catalyse entrepreneurship through credit to innovators across all sections of society, Credit guarantee mechanism through National Credit Guarantee Trust Company ( NCGTC)/ SIDBI shall be rolled out with a budgetary Corpus of INR 500 crore per year for the next four years.
7)Tax Exemption to Startups for 3 Years
To promote the growth of Startups, profits of Startups , setup after April 1 2016 shall be exempted from income tax for a period of 3 years
8)Tax Exemption on Capital Gains
Exemption shall be given in case Capital Gains are invested in the Fund of Funds recognised by Government.
In addition existing capital gain tax exemption for investment in newly formed manufacturing MSMEs by individuals shall be extended to all Startups
9)Tax Exemption on Investments above Fair Market Value
In line with the exemption available to venture capital funds to invest in Startups above Fair Market Value (FMV) investments made by incubators above FMV shall also be exempted.
10)Launch of Atal Innovation Mission (AIM)
- Establishment of sector specific Incubators
- Establishment of 500 Tinkering labs with 3D printers in Universities across the county, including smaller cities
- Pre-incubation training to potential entrepreneurs
- Strengthening of existing incubation facilities
- Seed funding to high growth Startups
11)Funding Support through Fund of Funds with a corpus of INR 10,000 crore
to provide funding support for development and growth of innovation driven enterprises. Government will set up a fund with an initial corpus of INR 2500 CRORE AND A TOTAL CORPUS OF INR 10,000 crore over a period of 4 years.
12)Relaxed Norms of Public Procurement of Startups
To provide an equal platform to Startups vis-a-vis the experienced entrepreneurs / companies in public procurement. Startups shall be exempted from the criteria of “prior experience / turnover” without any relaxation in quality standards or technical parameters.
13)Faster Exits for Startups
To make it easier for Startups to exit, provision for fast -tracking closure of businesses have been included in The Insolvency and Bankruptcy Bill 2015.
Startups with simple debt structures may be would be within a period of 90 days from making of an application for winding up on a fast – track basis.