Puducherry government unveils start-up policy

Grants, subsidies and stipends to new entrepreneurs planned

Waking up to the need to promote fresh business ideas, the Puducherry government on Wednesday unveiled a start-up policy.

The policy, launched by Minister for Industries M.O.H.F Shahjahan, at a function, aims to create a corpus fund of ₹10 crore to support the setting up of start-up incubators and to develop co-working spaces.

The department plans to provide a grant of ₹3 lakh to projects recommended by incubators established by the government/private sector/academic institutions as a start-up grant. The committee of experts constituted by the government under the Innovation and Entrepreneurship Development Committee will approve of the projects and monitor their progress.

A monthly allowance of ₹10,000 will 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 happens to be a woman, Scheduled Caste, disabled, or third gender, the department will give a monthly allowance of ₹15,000 , says the policy document.

The corpus fund will be utilised to provide infrastructure support such as a work station, cloud services, laboratory and marketing facilities. All the incentives announced in the Industrial Policy, 2016, will be applicable to start-ups. The industrial policy had envisaged 40 % capital investment subsidy to micro and small enterprises subject to a maximum of ₹40 lakh.

As per the start-up policy, the government will direct educational institutions to provide 5% marks for student or a team availing incubation support for their start-up ideas or attempts. Students of such recognised institutions will be encouraged to develop their mini-projects or internship or summer projects during their vacations.

In case of labour laws, the policy said, provisions will be made for no inspections for a period of three years and appropriate permission will be granted on self-certification basis.

The Puducherry Start-up Cell, which will be the nodal agency for implementing the policy, will facilitate filing of patents, trademarks and designs.

Mr. Shahjahan, in his inaugural address, urged the student community to come out of their comfort zones and utilise the opportunity provided by the Puducherry government to become entrepreneurs. The government is keen to made the region a hub for start-ups, he said.

Industries and Commerce secretary Devesh Singh said the policy aims at building a conducive start-up eco-system. It plans to provide financial and technical support to aspirants in a time-bound manner with an objective of creating a world-class start-up system in the Union Territory.

Industries Department director P. Priyatarshny said there are as many as 51 start-ups already registered with the department and eight incubators in various engineering colleges. Co-head, Start-up/Invest India, Preet also spoke.

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Printable version | Jun 7, 2020 9:24:20 AM | https://www.thehindu.com/news/cities/puducherry/puducherry-government-unveils-start-up-policy/article30276435.ece

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