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Indian State Of Gujarat announces exclusive startup policy for IT and electronics focused startups

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In continued attempts by states to boost local startup culture, Gujarat government has announced a startup policy exclusively focussed on IT and electronics related startups. Under the policy, the government aims to assist 2000 such startups by developing 50 incubators in the state over next five years.

The government will allot about 10 lakh sq ft of land for development of these incubators along with 50% capital investment assistance till 50 lacs. It will also grant 50% assistance up to Rs 1 crore to these incubators for procurement of software and INR 5 lacs per year for mentoring new startups.

The policy was unveiled by the CM Anandiben Patel yesterday Through this policy, it plans to attract an investment of over 7000 crores.

The new startups will also be benefitted by the new policy in several crucial areas. For example, the policy provides 100% discount on stamp duty and registration, marketing assistance, and 100% rebate on electricity duty for five years.

Other incentives include equity financial assistance of 25% on funds raised from VC fund, rental assistance of INR 15 per square feet per employee , power tariff subsidy of INR 1 per unit, and financial assistance of up to INR 2 lacs and INR 5 lacs for obtaining national and international patents respectively.

In addition to above, to promote this policy and attract investors and incubators in the state, the government is planning to hold two major summits and a conference later this year.

One such summit will take place in the second week of August this year which will witness participation from over 3000 startups of the state and VCs, incubators, and accelerators from across the country.

This national summit on technologies will provide a platform to these startups to interact with prominent investors and mentors from the country.

Earlier this year, Gujarat government has introduced a similar startup policy which was focussed on manufacturing and services startups. Under that policy, the government has already supported 18 incubators who are assisting 100 startups and is further looking to find another 18 incubators.

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