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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI C.R. CHAUDHARY)
(a): The benefits under the Startup India initiative are available to all entrepreneurs belonging to any caste, community and gender (including schedule caste/ schedule tribe and women entrepreneurs). Currently, there is no scheme under the Startup India initiative that is administered through banks.
Further, The Department of Social Justice and Empowerment is implementing Venture Capital Fund for Scheduled Castes in order to promote entrepreneurship and others among the target population through the Industrial Financial Corporation of India Venture Capital Fund for Scheduled Castes. Till date, an amount of Rs.240.04 crore has been sanctioned among 66 companies owned by SC Entrepreneurs whereas an amount of Rs.168.40 crore has been disbursed to 52 companies under the fund. The State wise number of companies'' sanctioned financial assistance till so far is provided at Annexure-I.
(b): Startup India supports entrepreneurs from all districts across the country. In order to avail benefits under the initiative, entrepreneurs from any district may apply on www.startupindia.gov.infor recognition of their Startup.
(c): Department of Industrial Policy and Promotion (DIPP) has constituted a formal mechanism to review the Startup India initiative on a regular basis. A Monitoring Committee chaired by Secretary, DIPP has been constituted for effective monitoring of the implementation of the Action Plan of Startup India initiative. The Monitoring Committee comprises Secretary, DIPP, CEO/Representative from NITI Aayog, Secretary/Representative from Department of Revenue, Ministry of Micro, Small and Medium Enterprises, Department of Science and Technology (DST), Department of Bio-Technology (DBT), Department of Electronics and Information Technology (Ministry of Communication & Information Technology), Department of Higher Education (Ministry of Human Resources Development (MHRD)), and CMD from Small Industries Development Board of India (SIDBI).
Further, as a constant endeavour to facilitate the Startup ecosystem, Department of Industrial Policy and Promotion (DIPP) holds extensive consultations with stakeholders. In various consultations, following concerns were highlighted -
1. Startups were required to submit a Letter of Recommendation (LoR) from organizations such as incubators/ industry associations which often led to undue expenditure and delay for Startups. This discouraged a large number of entities from applying under the programme.
2. Taking into account the long gestation period required by Startups to get established, the period of 5 years as provided in the definition of Startups was too short. Further Startups in bio -technology sector require longer gestation period as compared to others.
In order to address the above concerns, following corrective measures have been taken:
1. The requirement of Letter of Recommendation from an incubator/industry association has been done away with both for the purpose of recognition as well as for availing certificate of eligibility for obtaining tax benefits.
2. In order to further promote entrepreneurship in the country, the definition of a Startup has been modified on 23rd May, 2017. It has been broadened to include scalability of business model along with a high potential of employment generation or wealth creation. As per the new definition, an entity is considered as a Startup up to seven years from the date of its incorporation (from earlier 5 years). However, in the case of Startups in the Biotechnology sector, the period is up to ten years from the date of incorporation.
No scheme of Startup India programme is being implemented through banks.
(d): Startup India is an ongoing initiative and targets to support entrepreneurs (including SC/ST and women entrepreneurs) on a continuous basis.
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