Pondy policy for startups allots Rs 10 cr corpus

The policy aims to create a corpus fund of Rs 10 crore to support setting up of startup incubators and to develop co-working spaces. The department also plans to provide a grant of Rs 3 lakh to the projects recommended by incubators established by the government/private sector/academic institutions as startup grant. The committee of experts constituted under the Innovation and Entrepreneurship Development Committee will approve the projects and monitor their progress.

A monthly allowance of Rs 10,000 would be given to individuals up to a maximum of five years as a means to reduce their financial burden. If the co-founder of the venture happened to be a woman, from the Scheduled Caste community, differently abled or third gender, the department proposes to give a monthly allowance of Rs 15,000 , the policy document said. The corpus fund will be utilised to provide infrastructure support such as workstation, cloud services, laboratory and marketing facility. All the incentives announced in the 2016 industrial policy will be applicable to start-ups. The industrial policy had envisaged 40 pc capital investment subsidy to micro and small enterprises subject to a maximum of Rs 40 lakh.

While medium and large enterprises would be eligible for 35 per cent subsidy for investment made on land, building, plant and machinery subject to a maximum of Rs 35 lakh, women/SC/ST entrepreneurs would be given capital investment subsidy of 45 pc subject to a maximum of Rs 75 lakh, the industrial policy document pointed out.

As per the startup policy, the government would direct educational institutions to provide 5% marks for student or a team who availed incubation support for their startup ideas or attempts. Students of such recognised institutions would be encouraged to develop their mini-projects or internship or summer projects during their vacations. In case of labour laws, the policy said, provisions would be made for no inspections for a period of three years and appropriate permission would be granted on self-certification basis. The Puducherry Start-up Cell, which will be the nodal agency for implementing the policy, would facilitate filing of patents, trademarks and designs.