BackDelhi government rolls out support for start-ups
The incentives on offer include collateral-free loans which will be interest free for a year, free service of chartered accountants and experts and reimbursement of certain costs
PremiumNEW DELHI : The cabinet of Delhi government on Thursday approved a policy aimed at making the national capital territory a global start-up hub by offering a host of incentives to entrepreneurship, chief minister Arvind Kejriwal said in a statement.
The incentives on offer include collateral-free loans which will be interest free for a year, free service of chartered accountants and experts and reimbursement of certain costs, according to the statement.
“I hope that Delhi will be the home of unicorns and behemoth businesses that the world will look up to," the statement said quoting Kejriwal. The state will introduce entrepreneurship classes and its ‘business blasters programme’ that was tried earlier in schools at college level too.
The business blasters programme offered seed money to students in class 11 and 12 to start their ventures.
The idea of the policy is to make Delhi the most preferred destination for start-ups by 2030.
The fiscal incentives offered under the scheme include reimbursement of lease rentals of 50% up to ₹5 lakh a year and reimbursement for exhibition stall/rental cost of 100% for women, underprivileged and differently-abled persons and 50% for others up to ₹5 lakh once a year.
Allowance towards operational or employee cost of ₹30,000 a month for one year is also offered under the scheme. Financial support for procurement of key software upto 50% and reimbursement on internet charges of 50% up to a maximum of ₹2.5 lakh a year for 3 years are also offered under the scheme. It also offers several non-fiscal incentives like facilitating linkages between the startup and industry associations and relaxed government procurements process for start-ups, the statement said.
Kejriwal said in the statement that the country’s future lies in the hands of its youth. He said the youth is talented, capable, hardworking and intelligent but the country’s system hasn’t let them thrive. “Be it the education system, the employment system or the political system, they’ve all hindered the growth of the country. Today, our children run from pillar to post to apply for jobs. On the contrary, the Delhi government is eradicating this problem by promoting an environment conducive for businesses," the statement said quoting Kejriwal.
Kejriwal said that the state’s budget for this year focuses on businesses and employment generation. “We’re revamping markets, setting up the Dilli Bazaar portal, organising the Delhi shopping festival and doing much more to help boost the economy. We’re teaching school students entrepreneurship in classes 9 to12. We’re giving students seed capital, as one may have seen in the Business Blasters Programme. Thousands of students have become businesspersons under this initiative," Kejriwal said.
This initiative will now be replicated at the college level also, he said. The minister said that the start-up policy has been made after studying policies from across the world and has incorporated the best global practices.
“The Delhi Government will provide both fiscal and non-fiscal incentives to the youth who want to build their startups. For instance, the Delhi Government will pay upto 50% of the rent of a startup’s office lease," said Kejriwal.
Similarly, we will pitch in for a portion of the salaries that these startups will pay to their employees, he said. The state will reimburse their patent, copyright and trademarking costs and help with internet bills. “We will also offer collateral-free loans, interest-free loans and incentivise incubation centres and fabrication labs," the minister said.
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