Gujarat Govt Announces New Policy For IT Start Up Firms

In an effort to promote new age technology-based business ventures in the State, the Gujarat government, on Sunday, unveiled a new policy announcing a slew of measures for new start-ups.  Chief Minister Anandiben Patel announced her government’s new policy for promotion of information technology and electronic start-ups, envisaging setting up of 50 incubators to provide leadership and facilities to 2,000 start-ups over the next five years.

About 10 lakh square feet of space will be developed for incubators, targeting investment to the tune of Rs. 7,000 crore and creation of new employment opportunities.

The BJP government also announced a slew of incentives for incubators and start-ups, including financial assistance of up to Rs. 50 lakh for fixed capital investment and up to Rs. 5 lakh per annum for guidance of start-ups. They would be given 100 per cent waiver on stamp duty and registration. Also, they would get a rebate of 100 per cent amount of electricity duty for five years and 50 per cent assistance for software purchase up to Rs. 1 crore to incubators.

For start-ups, the government’s incentives include partnership of start-up units for government’s e-governance project, up to 25 per cent equity-linked financial assistance in fund taken for venture capital fund, 100 per cent discount on stamp duty and registration fee and product development and marketing assistance, Rs. 15 per square feet per employee lease rental assistance, Rs. 2 lakh for local patent and Rs. 5 lakh for international patent and some other incentives up to 7 years.

According to her, Gujarat is known for its strong base in manufacturing sector but now the State government wants to focus on new age business models which are technology driven and launched by youngsters. Under the policy, the government will provide incentives and financial assistance including subsidy, exemption in electricity duty for as many as seven years.

Key Aspects:

Gujarat government will be providing 50 per cent of its investment for an incubator, but with a limit of 50 lakh

Each incubator will be offered up to 5 lakh per year for mentoring assistance at these start-ups

Also, about Rs. 1 crore will be offered for procurement of software to these incubators

The start-ups will be provided with 100 per cent reimbursement of stamp duties