Delhi Chief Minister Arvind Kejriwal announced on Thursday (May 6) that the Cabinet had passed an ambitious Delhi Startup Policy which, it was hoped, would turn the capital into an international startup hub. What is the vision and mission of the startup policy? The vision is to enable Delhi to emerge as a “Global Innovation Hub and the most preferred destination for Startups by 2030” by creating an “enabling ecosystem for innovation-based economy and fostering entrepreneurial spirit through a robust support mechanism”, the government has said. For this, the government intends to “encourage, facilitate and support” 15,000 startups by 2030. What does the policy entail in a nutshell? In his press conference, Kejriwal said entrepreneurship classes and a "Business Blasters Program" would be introduced at the college level, and the Delhi Government would support college students working on business ideas in every possible way. "Delhi government will help startups get collateral-free loans which will be interest-free for a year. Delhi government will empanel CAs, lawyers and experts to aid startups for free; their service charges will be borne by the government. We will ease our procurement norms to help startups, but we will not bargain with the quality of our products. "Students building startups while studying in Delhi government colleges will be able to seek 1-2 years of leave. A robust task force will oversee registration of startups under the policy. I hope that Delhi will be the home of unicorns and behemoth businesses that the world will look up to,” the Chief Minister said. What are the key focus areas under the startup policy? According to the government, they include education and education technology; healthcare and health technology; tourism and hospitality; transportation & logistics; automotive; e-governance for business and citizen connect; artificial intelligence (AI); machine learning (ML); Internet of Things (IoT); Software-as-a-Service (SaaS); fintech; e-waste management; robotics & automation; green technology; bio-pharma & medical Devices; and IT & ITES. What will be the process of registering under the policy and what will be the governance structure? Three committees will be set up for the implementation and governance of the policy: the Startup Policy Monitoring Committee, a Startup Task Force, and a Nodal Agency. “A Startup Policy Monitoring Committee will be formed to oversee the Delhi Startup Policy. It will be headed by the Finance Minister of the Delhi Government. It will consist of the Industries Minister of Delhi Government and senior representatives of other state departments as members. "In addition, an officer will be appointed by the Minister of Industries, Government of Delhi to chair the Startup Task Force. The committee will consist of 5 per cent government representatives, 10 per cent educational institutions and 85 per cent people from the private sector,” the Delhi government said. “The main function of the committee would be to evaluate and approve the applications of recognized entrepreneurs, startups and incubators. The nodal agency will have a cell under the supervision of the Industries Department to implement the Startup Policy. It will have direct contact with startups and stakeholders,” it added. What fiscal incentives will the Delhi government provide to startups? There are various ways in which the government can provide financial assistance to young entrepreneurs. These include “reimbursement on lease rentals - 50% up to INR 5 lakh p.a.; Reimbursement grants for filing Patent/ Trademark/ Copyright/ Industrial Design - up to INR 1 lakh (Indian) & up to 3 lakh (international); Reimbursement for exhibition stall/rental cost - 100% for women/ underprivileged/ differently-abled persons & 50% for others up to INR 5 lakh once a year; Monthly allowance towards operational/ employee cost - INR 30 thousand p.m. for one year". Apart from this, there will also be “token prizes for the winner of competitive programmes & selected Startups; Scholarship towards educational fee for student winners; Financial grants towards capital and operational expenditures in the establishment, expansion and operation of incubation centres, fabrication labs and co-working spaces; Financial support for procurement of key software upto 50%; Reimbursement on Internet charges - 50% up to a maximum of INR 2.5 lakh p.a for 3 years; Fund-of-funds with an initial corpus of INR 20 crore", the government said. What about non-fiscal incentives? Kejriwal said the government would handhold young entrepreneurs and help them seek the best advice free of cost from a panel of experts. Other non-fiscal incentives include “developing a conducive curriculum for students; facilitating strong linkages between the startup and industry association; facilitating participation of companies for subsidised subscriptions of technology offerings; organising fundraising events; relaxing government procurements process for startups; and access to government data to drive e-governance pilot projects”. Newsletter | Click to get the day's best explainers in your inbox
