The Delhi Startup Policy

With changing times, support for and provided to the budding entrepreneurs of India has been on a steady increase. With the announcement of the new Delhi Startup policy by the Kejriwal government in our capital on the 5th of May, the effort to turn Delhi into a startup hub has just begun.

Why was it introduced?

This policy was introduced to enable Delhi to emerge as a Global Innovation Hub and the most preferred destination for Startups by 2030 by creating an enabling ecosystem for the innovation-based economy and fostering entrepreneurial spirit through a robust support mechanism. The government intends to encourage, facilitate and support 15,000 startups by 2030.

Key Focus Areas

Startups operating in the following industries will be the focus of this new policy:

• Education and education technology

• Healthcare and health technology

• Tourism and hospitality

• Transportation & logistics; automotive

• E-governance for business and citizen connect

• Artificial intelligence (AI)

• Machine learning (ML)

• Internet of Things (IoT)

• Software-as-a-Service (SaaS)

• Fintech

• E-waste management

• Robotics & automation

• Green technology

• Bio-pharma & Medical Devices

• Information Technology (IT) & Information Technology Enabled Services (ITES)

Incentives

The government announced a list of incentives they will be providing to nurture startups in the capital, both fiscal and non-fiscal.

Fiscal Incentives

• Reimbursement on lease rentals — 50% up to INR 5 lakh p.a.

• Reimbursement grants for filing Patent/ Trademark/ Copyright/ Industrial Design — up to INR 1 lakh (Indian) & up to 3 lakh (international).

• Reimbursement for exhibition stall/rental cost — 100% for women/ underprivileged/ differently-abled persons & 50% for others up to INR 5 lakh once a year.

• Monthly allowance towards operational/ employee cost — INR 30 thousand p.m. for one year.

• Token prizes for the winner of competitive programmes & selected Startups.

• Scholarship towards educational fees for student winners.

• Financial grants towards capital and operational expenditures in the establishment, expansion and operation of incubation centres, fabrication labs and co-working spaces.

• Financial support for procurement of key software up to 50%.

• Reimbursement on Internet charges — 50% up to a maximum of INR 2.5 lakh p.a for 3 years.

• Fund-of-funds with an initial corpus of INR 20 crore.

Non-Fiscal Incentives

• Handholding of young entrepreneurs and free-of-cost advice from a panel of experts.

• Development of a conducive curriculum for students.

• Facilitation of strong linkages between the startup and industry association.

• Facilitation of participation of companies for subsidised subscriptions of technology offerings.

• Organisation of fundraising events.

• Relaxation of government procurements process for startups.

• Access to government data to drive e-governance pilot projects.

Implementation of the Policy

Three committees will be set up for the implementation and governance of the policy:

• Startup Policy Monitoring Committee

• Startup Task Force

• Nodal Agency

Startup Policy Monitoring Committee

Headed by the Finance Minister of the Delhi Government, this committee will consist of the Industries Minister of the Delhi Government and senior representatives of other state departments as members and oversee the policy.

Startup Task Force

This committee will consist of 5% government representatives, 10% from educational institutions and 85% people from the private sector. An officer will be appointed by the Minister of Industries, Government of Delhi, to chair the Startup Task Force.

The committee's main function would be to evaluate and approve the applications of recognised entrepreneurs, startups, and incubators. The nodal agency will have a cell under the supervision of the Industries Department to implement the Startup Policy. It will have direct contact with startups and stakeholders.

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Author

Siya Heda