Scheme For Assistance For Start Ups/ Innovation

DETAILS The key objective of the Gujarat Industrial policy 2020 is to encourage R&D and start innovation and entrepreneurship. Hence, the new scheme is being introduced in order to support startups and innovation at different levels of the startup cycle. In view of the strategy under Gujarat Industrial Policy, the Government is pleased to introduce a "Scheme for Assistance for Startups / Innovation" which will come into force from 07/08/2020 and will remain in operation for a period of 5 years, i.e. upto 06.08.2025.  The scheme aims to give a further thrust to promoting startups and strengthening the ecosystem in the state, a task force comprised of leading stakeholders in the Gujarat startup ecosystem. Gujarat, owing to its inherent strength of widespread entrepreneurial spirit has gained a significant spot in the national startup ecosystem. The incentives to Startups under the Gujarat Industrial Policy 2015 have supported in the creation of a strong network of nodal institutions and several startups have expanded their operations/ products both at the national and international levels. BENEFITS Assistance to Startups The Quantum of Assistance as under would be provided to the Startups whose innovative project is approved/sanctioned by SLEC. Sustenance Allowance: A sustenance allowance of ₹ 20,000 per month per startup will be provided to the Startups for a period of one year. If startups have at least one woman co-founder, ₹ 25,000 per month per startup will be provided as a sustenance allowance.  Seed Support: Seed support up to ₹ 30,00,000 will be provided to the Startups on the following, based on approval/ sanction by SLEC: 1. Cost of raw materials/consumables/hardware & software/professional services /other equipment/ tools required for prototype/product/process development 2. Market research Testing & Trials 3. Marketing/ publicity assistance: Here marketing/ publicity assistance covers assistance to startups to attend national/international events. The fees/charges paid for attending the same will be considered eligible under this head. [Note: However, it is clarified that to and fro conveyance/accommodation expenses will not be considered for assistance]  Assistance to Startups having a Significant Impact on Society: Additional support of upto ₹ 10,00,000 assistance will be provided to startups having innovative projects which have a significant impact on society, based on the conditions on approval/ sanction given by the SLEC.  Pre-Series A funding: In the life cycle of a Startup, there is a funding gap which is better identified as the valley of death. This is a phase post commercialization where the Startup has just started generating revenue till the time period where its product/service gets market traction. Such startups will be assisted in getting venture capital. Initially, to support, such mid-level Pre-series A funding to startups, a separate fund shall be created under Gujarat Venture Finance Limited (GVFL). This assistance will be specifically to cater to the startups that have already received seed support from the government under various schemes for the promotion of startups.  Interest subsidy: The startups that have been approved/sanctioned under this scheme will be eligible to avail of an additional interest subsidy of 1%, a maximum of up to 9% on term loans under the provisions of the scheme for assistance to MSMEs.  Assistance to enroll and participate in Acceleration Program: Assistance up to ₹ 3,00,000 per startup will be provided to enroll and participate in the national / internationally recognized acceleration program. Approved/sanctioned startups will be eligible for assistance up to ₹ 3,00,000 per startup during the operative period of the scheme, to enroll/participate in a national/internationally recognized acceleration program. The fees/charges paid for attending the same will be considered eligible for getting assistance. However, it is clarified that to and fro conveyance/accommodation expenses will not be considered under this assistance.  Acceleration Program: An acceleration program is typically a 3-4 month program for startups at the early traction and scaling stage. It is a process of intense, rapid, and immersive education aimed at accelerating the growth of the startup.  Assistance for Skill Development: Approved/sanctioned startups shall be provided assistance for skill development training specific to soft skills, managerial skills, marketing skills, and financing skills for the startup project. Such skill development training should support the startups in understanding the ecosystem, fundraising, commercializing, and scaling up the startup project. Financial assistance up to Rs. 1 lakh per approved/sanctioned startup shall be given for participating in such skill development training programs on a reimbursement basis.   Assistance to the Approved/Sanctioned Nodal Institution Mentoring Assistance: Mentoring Assistance of ₹ 1,00,000 per approved/sanctioned startup shall be provided to Nodal institution for the mentoring service (Maximum ₹ 15,00,000 per annum per institute.  Reimbursement Expenses on Organizing Promotional Events: Reimbursement of 75% of expenses incurred for organizing promotional events to the extent of a maximum ₹ 5,00,000. If the event being organized is specific to "Women Entrepreneurship", the Nodal Institution will be eligible for reimbursement of 90% of expenses incurred for organizing promotional events to the extent of a maximum ₹ 5,00,000. However, it is clarified that the beneficiary Nodal Institution will not be eligible to get assistance under any other scheme of Govt. of Gujarat for the same component/purpose.  Other Support: 1. Govt. will support approved/ sanctioned Startups to get free access to universities/ Libraries/ Govt. Laboratories/ SDCs (GIDC) / Center of Excellence / PSUs to support and facilitate innovative ideas/concepts. 2. For organizing Acceleration Programs in Gujarat any institution, would be assisted by providing financial assistance, as approved by SLEC, maximum up to the matching contribution to the expenditure incurred. 3. The project is entitled to avail of other benefits under the schemes for assistance to MSMEs. ELIGIBILITY For Startups: Any individual/group of individuals having an innovative idea/concept and recommended by an approved Nodal Institution will be eligible to get recognized as a startup under this scheme. The innovative project can be from any sector or any faculty/branch of science/ technology/ engineering/ agriculture/ healthcare and no innovation worth its name is restricted from availing assistance just because of its being in a particular sector, making this a sector agnostic scheme.  Note 1: An entity formed by splitting up or reconstruction of an existing business shall not be considered a 'Startup'. Note 2: The startups which are availing incentives as a 'startup' in any other 'startup scheme' of the Government of Gujarat will not get incentives under this scheme. However, the startups/innovators availing benefits under the Student Startup and Innovation Policy (SSIP) would also be eligible to avail of assistance under this scheme.  For Nodal Institution: Any University, Government approved/ affiliated/ recognized educational institution, Incubation center, PSU, R&D Institutions, private and other establishments operating in Gujarat. The institution should be registered under the Companies Act-2013, rule of Section 8, as a 'non-profit making company'. The institution should have separate spaces and engage full-time employees for the purpose.  For Mentor: The mentor means a resource person who is registered under this scheme and associated/recommended by the Nodal Institution. Exclusions An entity formed by splitting up or reconstruction of an existing business shall not be considered a 'Startup'. The startups which are availing incentives as a 'startup' in any other 'startup scheme' of the Government of Gujarat will not get incentives under this scheme. However, the startups/innovators availing benefits under the Student Startup and Innovation Policy (SSIP) would also be eligible to avail of assistance under this scheme.