Startups Incentives and Benefits by the Uttar Pradesh Government!
UPStartup Conclave is an exclusive startup event going to be held in Lucknow on 14th September 2019 at Jaipuria Institute of Management, Lucknow. Department of IT & Electronics, UP Government in association with Lucknow Management Association and SIDBI are organizing the UPStartup Conclave.
The U.P. Chief Minister Mr. Yogi Adityanath and Government of Uttar Pradesh are committed to developing U.P/Lucknow as a new Startup Hub on the India map. In its relentless pursuit to promote entrepreneurs with ease of doing business, Uttar Pradesh Government is all set with its new Startup Policy and is making major interventions in this direction.
After netting Rs 4.68 trillion worth of investment commitments from private and public sector companies at the UP Investors Summit 2018, the Yogi Adityanath government is now looking to set up India’s largest Startup Incubator in Lucknow.
“The state government has signed a Memorandum of understanding (MoU) with Small Industries Development Bank of India (SIDBI) to disburse loans for start-ups,” said chief minister Yogi Adityanath while addressing a programme on Startup India. He further stated that “Uttar Pradesh is the youngest state of India. The state has maximum number of youths. I want 60,000 youths from 60,000 villages in UP to come up with startups. This will pave way for the development of the state.” “India will start up only when UP starts up,” he said.
UP CM detailed that “We need youths to change the destiny of our villages. We have adopted the policy of ‘One District, One Product (ODOP)’ in which we have asked the district authorities to identify one product from their district which we can export. As per the plan, 75 youths will be selected from 75 districts who will come up with outstanding projects,” he said.
Uttar Pradesh Minister of State for IT and electronics Mr. Mohsin Raza said the proposed facility would provide an ecosystem to help entrepreneurs realize their innovative business ideas through funding, mentoring and marketing support. While addressing the UPStartup Conclave 2018 he said the government had accorded priority to startups for spurring economic activity and job creation. He claimed of the 4,750 start-ups currently operating in India, almost 1,000 enterprises are based out of UP’s Noida-Greater Noida region. Apart from the mega incubator in Lucknow, the state plans to develop IT Parks in Agra, Meerut, Kanpur, Gorakhpur, Varanasi, Bareilly etc.
Mr. Alok Sinha Additional Chief Secretary, IT and Electronic stated that budget was not a constraint and the government was already scouting for the right partner. Earlier, the state had announced a corpus of Rs 10 billion to promote start-ups and create an ecosystem comprising incubators, mentors and investors. Mr. Sinha announced the state was willing to tweak its start-up policy to promote new business enterprises based on the stakeholders’ feedback and latest developments. “While the NCR region has witnessed a significant growth in the startup space, the government wants to replicate the success in the hinterland as well,”.
Incentives and Benefits to the Startups
At Idea/Prototype stage: Startups shall be provided sustenance allowance of INR 15,000 per month for a period of 1 year whose project is recommended by Nodal agency & approved by the committee.
At Pilot stage: Upon securing of min funding of 25% from a known and registered angel/venture funds/ reputed incubators by startup, a marketing/ commercialization assistance of 25% of actual cost or INR 10 Lakhs whichever is lower, shall be provided to startups in 3 phases to launch its product /services in the market subject to the bi-annual review of the progress
The state government shall match 25% of the money invested by the VC subject to the condition that the funding shall be done only to the startups based in Uttar Pradesh. The fund would be professionally managed like a PE/Venture fund with industry leaders in the committee along with support from private players and GoUP.
Financial assistance at Prototype & Pilot stage
Marketing/ commercialization assistance of 25% of actual cost or INR 10 Lakhs.