Govt says plan ready for startup action across 22 sectors
15 March 2016
The government has prepared an `Action Plan' to promote new entrepreneurs across 22 industry sectors under 'Make in India' initiative. Towards this, an Investor Facilitation Cell has been created within Invest India to assist and handhold investors,
Further, the government has released a `Startup Action Plan' to create a conducive environment for startups in India, minister of state (independent charge) in the ministry of commerce and industry Nirmala Sitharaman informed the Lok Sabha in a written reply.
The government will provide funding support and incentives to start-ups through a Fund of Funds with a corpus of Rs10,000 crore.
Besides, the government will extend a credit guarantee fund for startups, provide tax exemption on capital gains invested in Fund of Funds for up to 3 years
Industry-academia partnership will offer incubation facilities. The government will also organise startup fests to showcase innovations and providing collaboration platforms. She said the government will work towards:
- Simplification and handholding,
- Simple compliance regime for startups based on self-certification,
- Launch of mobile app and portal for compliance and information exchange,
- Startup India Hub to handhold startups during various phases of their development,
- Legal support and fast-tracking patent examination at reduced costs,
- Relaxed norms of public procurement for startups and
- Faster exit for startups.
Meanwhile, NITI Aayog has launched an Atal Innovation Mission (AIM) with self-employment and talent utilization (SETU) program for harnessing private sector expertise for setting up incubators.
Seven new research parks are being set up modelled on the Research Park at IIT Madras. Other measures include launching of innovation focused programmes for students and organising Annual Incubator Grand Challenge to promote good practices among incubators.
Besides, she said, the government is implementing the following schemes for bringing rural industries under the ambit of the 'Make in India' programme.
Prime Minister's Employment Generation Programme (PMEGP) is a credit linked subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country through Khadi & Village Industries Commission (KVIC), state Khadi and Village Industries Board (KVIB) and District Industries Centre (DIC).
Since inception and up to January 2016, she said, 3.50 lakh micro enterprises have been set up by utilising margin money amounting to Rs7,004.40 crore and 2.98 million jobs have been created from these units.
Besides, the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) launched in 2005-06 for making traditional industries more productive and competitive by organising the traditional industries and artisans into clusters. The government has granted final approval to 26 such clusters with a total project cost of Rs72 crore, benefiting around 25,000 artisans.
A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE), was launched on 18 March 2015 to promote innovation and rural entrepreneurship through rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start-up creation in the agro-based industry. During the year 2015-16, 22 LBIs and 2 TBIs have been approved and two LBI centres have been operationalised at Deoria (UP) and Rajkot (Gujarat), the minister pointed out.
Products of rural industries are already covered under extant laws and rules relating to trade and commerce, including consumer protection.
Stand Up India scheme is meant to provide composite loans between Rs10 lakh to Rs100 lakh for setting up greenfield enterprises in non-farm sector by SC/ST and women entrepreneurs.
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.