What is the News?
Delhi Cabinet has passed an ambitious Delhi Startup Policy which it hopes would turn the capital into an international startup hub.
What is Delhi Startup Policy?
Aim: 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 an innovation-based economy and fostering entrepreneurial spirit through a robust support mechanism.
For this, the government intends to encourage, facilitate and support 15,000 startups by 2030.
Focus Areas of the Policy: It includes education and education technology; healthcare; tourism and hospitality; transportation & logistics; automotive; e-governance; artificial intelligence (AI); machine learning (ML); Internet of Things (IoT); e-waste management; robotics & automation; green technology among others.
Key Features of the Policy
Business Blasters Program: Delhi Government would introduce entrepreneurship classes and a Business Blasters Program at the college level. This would support college students working on business ideas in every possible way.
Leave for Business: Students working on startups while studying in Delhi government colleges will be able to seek up to two years’ leave to work on their businesses.
Startup Policy Monitoring Committee: It will be formed to oversee the Delhi Startup Policy. It will be headed by the Finance Minister of the Delhi Government.
Startup Task Force: The committee will consist of 5% government representatives, 10% from educational institutions and 85% people from the private sector. The main function of the committee would be to evaluate and approve the applications of recognized entrepreneurs, startups and incubators.
Fiscal Incentives: 1) Reimbursement on lease rentals, 2) Reimbursement grants for filing patents, Reimbursement for exhibition stall/rental cost, 3) Monthly allowance towards operational/ employee cost of up to ₹30,000 per month for one year, 4) Financial grants towards capital and operational expenditures in the establishment and 5) Financial support for procurement of key software up to 50% of the total cost.
Non-Fiscal Incentives: a) Best advice free of cost from a panel of experts, b) facilitating participation of companies for subsidized subscriptions of technology offerings, c) organizing fundraising events, d) relaxing government procurements process for startups and e) access to government data to drive e-governance pilot projects.
Source: The post is based on the article “Explained: What we know about the new startup policy announced by the Delhi government” published in Indian Express on 6th May 2022