As part of Prime Minister Narendra Modi’s “Make in India” and “Start-up India” moves, Gujarat Chief Minister Anandiben Patel, on June 5, announced her government’s new policy for promotion of information technology (IT) and electronic start-ups, envisaging setting up of 50 incubators to provide leadership and facilities to 2,000 start-ups over the next five years.

About 10 lakh square feet of space will be developed for incubators, targeting investment to the tune of Rs. 7,000 crore and creation of new employment opportunities.

The BJP government also announced a slew of incentives for incubators and start-ups, including financial assistance of up to Rs. 50 lakh for fixed capital investment and up to Rs. 5 lakh per annum for guidance of start-ups. 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 start-ups, the government’s incentives include partnership of start-up 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.

Source: Business Line