The scheme was launched by Prime Minister Narendra Modi with much fanfare on January 16 this year. The start ups were asked to apply online from April 1 onwards on Start Ups India portal of Department of Industrial Policy and Promotion (DIPP) of Ministry of Commerce. The scheme entailed a budget if Rs 609 crore for year 2016-17.
A manner impediment in smooth progress of the being cited by budding entrepreneurs is the condition of attachment with incubation centres set up by big companies. The Government had recently asked 50 top industries in the country to set up start up incubators as part of their Corporate Social Responsibility (CSR) activities. Only a few have complied and that is the Genesis of the problem. Ninad Sethye, owner of a start up firm says, “if we have to find incubation centres ourselves, what role does Government have in it. Why would we register our company on Government portal?”
This apathy is the cause of the tardy progress of the scheme. So far 728 companies have applied for registration on the portal, but only 180 have been registered and of the registered entities only 16 have been grated tax benefits available under Start Up India scheme
Any start up can apply for benefits under the scheme given it was set up less than five years ago and applicant’ turn over did not exceed Rs 25 crore in a financial year during its existence.
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