Lok Sabha Question No. 75 (STARRED), answered on 2018-07-23
Subject: Start-up India Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: ANIL SHIROLE, PARBHUBHAI NAGARBHAI VASAVA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

STARRED QUESTION NO. 75. TO BE ANSWERED ON MONDAY, THE 23 RD   JULY,  2018.

## START-UP INDIA SCHEME

- *75. SHRI ANIL SHIROLE: SHRI PARBHUBHAI NAGARBHAI VASAVA:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the  salient  features  of  the  Start-up  India  Scheme  and  the  number  of registrations done under this scheme since its inception across the country, State/UT-wise including Maharashtra;
- (b) the details of the funds sanctioned, allocated and utilized and the target set/ achieved under this scheme since its inception so far, State/UT-wise including Maharashtra;
- (c) the details of the State Governments which have formulated Star-tup policies in their States at present;
- (d) whether the Union Government is planning to rank the States according to the Start-up Scheme and if so, the details thereof; and
- (e) the  steps  taken/being  taken  by  the  Union  Government  for  maximum  area coverage under this scheme?

## ANSWER

वाणिज् य एवं उद्योग मंत्री (श्री सुरेश प्रभु ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI SURESH PRABHU)

(a) to (e): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 75 FOR ANSWER ON 23 RD JULY, 2018

- (a): Start-up India initiative launched on 16th January 2016, consists of 19 Action Points that act as a guiding document for the initiative. Salient features of these action points are appended as Annexure I. Since its inception, 10,950 Startups across the country have been recognised till 5 th July 2018. The  State/UT-wise  number  of  recognized  Startups including Maharashtra is provided at Annexure II .
- (b): Initiatives under Startup India are being coordinated primarily by seven Central Government Ministries/Departments:
1.  Department of Industrial Policy and Promotion
2.  NITI Aayog
3.  Department of Science and Technology
4.  Department of Bio-technology
5.  Ministry of Human Resource Development
6.  Ministry of Labour and Employment
7.  Ministry of Corporate Affairs

Ministry/Department - wise details of funds sanctioned and disbursed under Startup India scheme are at Annexure III . Ministry of Labour and Employment  and  Ministry  of  Corporate  Affairs  have  made  regulatory changes to support the growth of Startups.

- (c): 18 State Governments have so far formulated Startup policies. The list is at Annexure IV.
- (d): Yes,  Madam.  Government  has  launched  State/UT  Startup  Ranking Framework on 6 February 2018 to rank States for establishing a robust ecosystem  for supporting startups. This initiative will support in achieving following objectives:
1.  Help bring to fore progress made by the States/ UTs for promoting Startup-ecosystem
2.  Foster competitiveness & propel the States/ UTs to work proactively
3.  Facilitate States/ UTs to identify, learn and replicate good practices

The 'State  Startup  Ranking  Framework'  is  spread  across  7  areas  of interventions with a total of 38 action points and overall score of 100 marks. The areas of interventions include Startup policy and implementation,  incubation  support,  seed  funding  support,  venture funding support, simplified regulations, ease of public procurement and awareness and outreach. The framework also provides the guidelines to support implementation of action points. In order to evaluate States in  a  balanced  and  transparent  manner,  the  implementation  of  action

|      | points is being assessed on supporting documents submitted by the State Government and feedback from Startup ecosystem stakeholders.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e): | Government has taken several steps for maximum area coverage under this scheme. Since inception of the Startup India initiative, there are 10,950 startups recognized from over 448 districts covering 29 States and 6 Union Territories. Government has launched Startup India Virtual Hub which serves as a virtual incubator to Startups providing access to information, knowledge, industry programmes, Government schemes, and networking opportunities within Startup community. Startup India Online Portal is available in eight languages- English, Hindi, Kannada, Tamil, Telugu, Gujarati, Marathi and Bengali. The platform presently has 2,35,541 registered users. Additionally, the launch of State/UT Startup Ranking Framework will foster and propel State/UT governments to promote entrepreneurship at local level. Further, in order to promote entrepreneurship and encourage Startups at district level, Startup India Yatra has been launched. Grassroot Startup aspirants are provided Incubation, Mentorship and Funding support under this programme. Startup Yatra has so far been conducted across 4 States in 35 districts. |

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## ANNEXURE REFERRED TO IN REPLY TO PART  (a) OF THE LOK SABHA STARRED QUESTION NO. 75 FOR ANSWER ON 23.07.2018

## Salient features of Startup India action plan

1. Compliance Regime based on Self-Certification with  an  objective  to  reduce  the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance cost low.
2. Startup India Hub with an objective to create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.
3. Rolling  out  of  Mobile  App  and  Portal with  an  objective  to  serve  as  the  single platform for Startups for interacting with Government and Regulatory Institutions for all business needs and information exchange among various stakeholders.
4. Legal  Support  and  Fast-tracking  Patent  Examination  at  Lower  Costs with  an objective to promote awareness and adoption of IPRs by Startups and facilitate them in  protecting  and  commercializing  the  IPRs  by  providing  access  to  high  quality Intellectual  Property  services  and  resources,  including  fast-track  examination  of patent applications and rebate in fees.
5. Relaxed Norms of Public Procurement for Startups with an objective to provide an equal platform to Startups across sectors vis-à-vis the experienced entrepreneurs/ companies in public procurement.
6. Faster Exit for Startups with an objective to make it easier for Startups to wind up operations.
7. Providing Funding Support through Fund of Funds with a Corpus of Rs. 10,000 crore with  an  objective  to  provide  funding  support  for  development  and  growth  of innovation driven enterprises.
8. Credit Guarantee fund for Startups with objective to catalyze entrepreneurship by providing credit to innovators across all sections of society.
9. Tax Exemptions on Capital Gains with  an  objective  to  promote  investments  into Startups by mobilizing the capital gains arising from sale of capital assets.
10. Tax Exemptions to startups for 3 Years with an objective to promote the growth of Startups and address working capital requirements.
11. Tax  Exemption  on  Investments  above  Fair  Market  Value with  an  objective  to encourage seed-capital investment in Startups.
12. Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform with an objective to galvanize the Startup ecosystem and to provide national and international visibility to the Startup ecosystem in India.
13. Launch of Atal Innovation Mission (AIM) with an objective to serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses and other self-employment activities, particularly in technology driven areas.
14. Harnessing  Private  Sector  Expertise  for  Incubator  Setup with  an  objective  to ensure  professional  management  of  Government  sponsored  /  funded  incubators, Government will create a policy and framework for setting-up of incubators across the country in public private partnership.
15. Building  Innovation  Centers  at  National  Institutes with  an  objective  to  propel successful innovation through augmentation of incubation and R&D efforts.
16. Setting up of 7 New Research Parks Modelled on the Research Park Setup at with an objective to propel successful innovation through incubation and

IIT Madras joint R&D efforts between academia and Industry. 17. Promoting Startups in the Biotechnology Sector with  an  objective to foster and facilitate bio-entrepreneurship. 18. Launching  of  Innovation  Focused  Programs  for  Students with  an  objective  to foster  a  culture  of  innovation  in  the  field  of  Science  and  Technology  amongst students. 19. Annual  Incubator  Grand  Challenge with  an  objective  to  support  creation  of

- successful world class incubators in India.
- **********

## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PART  (a) OF THE LOK SABHA STARRED QUESTION NO. 75 FOR ANSWER ON 23.07.2018

## List of recognised Startups (State/UT wise)

|   Sr. No | State/UT                    |   Recognized |
|----------|-----------------------------|--------------|
|        1 | Maharashtra                 |         2130 |
|        2 | Karnataka                   |         1611 |
|        3 | Delhi                       |         1485 |
|        4 | Uttar Pradesh               |          891 |
|        5 | Telangana                   |          592 |
|        6 | Gujarat                     |          588 |
|        7 | Tamil Nadu                  |          585 |
|        8 | Haryana                     |          557 |
|        9 | Kerala                      |          362 |
|       10 | West Bengal                 |          335 |
|       11 | Rajasthan                   |          311 |
|       12 | Madhya Pradesh              |          299 |
|       13 | Andhra Pradesh              |          210 |
|       14 | Orissa                      |          200 |
|       15 | Chhattisgarh                |          128 |
|       16 | Bihar                       |          126 |
|       17 | Jharkhand                   |           89 |
|       18 | Uttarakhand                 |           86 |
|       19 | Assam                       |           85 |
|       20 | Punjab                      |           77 |
|       21 | Jammu and Kashmir           |           48 |
|       22 | Chandigarh                  |           46 |
|       23 | Goa                         |           45 |
|       24 | Himachal Pradesh            |           21 |
|       25 | Pondicherry                 |           11 |
|       26 | Manipur                     |            8 |
|       27 | Nagaland                    |            6 |
|       28 | Arunachal Pradesh           |            4 |
|       29 | Tripura                     |            4 |
|       30 | Andaman and Nicobar Islands |            3 |
|       31 | Dadra and Nagar Haveli      |            3 |
|       32 | Daman and Diu               |            1 |
|       33 | Meghalaya                   |            1 |
|       34 | Mizoram                     |            1 |
|       35 | Sikkim                      |            1 |

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## ANNEXURE-III

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART    (b)  OF  THE  LOK  SABHA  STARRED QUESTION NO. 75 FOR ANSWER ON 23.07.2018

## Department-wise details of funds sanctioned and disbursed under Startup India Scheme

| Concerned Department   | Item                                             | Details of Funds                                                                                                                                                                                                                                                                                                                                           |                 |                              |                              |
|------------------------|--------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|------------------------------|------------------------------|
| DIPP - SIDBI           | Fund of Funds                                    | Fund of Funds is a corpus of RS. 10,000 Cr being managed by SIDBI. So far, SIDBI has been authorized to commit Rs. 2,200 Cr. SIDBI has committed Rs 1285.7 crore to 27 SEBI registered Alternative Investment Funds (AIFs), who have invested in turn Rs. 602.6 Cr. in 142 Startups. Details of funds invested in Startups, State-wise, are at Annexure V. |                 |                              |                              |
| NITI Aayog             | Tinkering Labs                                   | Out of 2441 Schools identified for establishing Tinkering Labs,1657 tinkering labs across 521 districts across India have received Rs 12 lakhs each.                                                                                                                                                                                                       |                 |                              |                              |
| NITI Aayog             | Atal Innovation Mission - Incubation Centres     | 6 existing incubation centres have received funding of Rs 25 Cr. 11 new incubation centres have received funding of Rs 23.16 Cr. Further, 84 Atal Incubation and Established Incubation Centres have been selected for further disbursement and are currently undergoing due-diligence.                                                                    |                 |                              |                              |
| DST & MHRD             | Technology Business Incubators & Startup Centres | 1. Technology Business Incubators(TBIs): 11 TBIs have been approved. RS. 42.2 Cr. have been sanctioned and Rs 17.02 Cr disbursed so far 2. Startup Centres: 15 Centres approved for Grant of 75 Lakh each; 10 centres have received 1st tranche of 3.75 Lakh each                                                                                          |                 |                              |                              |
| MHRD                   | Research Parks Biotechnology Sector 1.           | S.No.                                                                                                                                                                                                                                                                                                                                                      | Institute Name  | Funds sanctioned (in Rs Cr.) | Funds disbursed (in Rs. Cr.) |
|                        |                                                  | 1                                                                                                                                                                                                                                                                                                                                                          | IIT Kharagpur   | 100                          | 100                          |
|                        |                                                  | 2                                                                                                                                                                                                                                                                                                                                                          | IIT Bombay      | 100                          | 33                           |
|                        |                                                  | 3                                                                                                                                                                                                                                                                                                                                                          | IIT Delhi       | 75                           | 5                            |
|                        |                                                  | 4                                                                                                                                                                                                                                                                                                                                                          | IIT Kanpur      | 75                           | 5                            |
|                        |                                                  | 5                                                                                                                                                                                                                                                                                                                                                          | IIT Guwahati    | 75                           | 5                            |
|                        |                                                  | 6                                                                                                                                                                                                                                                                                                                                                          | IIT Hyderabad   | 75                           | 5                            |
|                        |                                                  | 7                                                                                                                                                                                                                                                                                                                                                          | IISc Bangalore  | 75                           | 5                            |
|                        |                                                  | 8                                                                                                                                                                                                                                                                                                                                                          | IIT Gandhinagar | 90                           | 0                            |
|                        |                                                  |                                                                                                                                                                                                                                                                                                                                                            | Total           | 665                          | 158                          |
| DBT                    |                                                  | Bio Clusters: 4 bio-clusters (Kalyani, Bangalore, Faridabad & Pune) have been supported. A total of Rs 401 Cr. sanctioned and Rs 176.38 disbursed. 2. Bio - Incubators: 30 bio-incubators have been supported through the BioNEST(Bio-Incubator Nurturing Entrepreneurship                                                                                 |                 |                              |                              |

to

|            |                                  | operationalized (Hyderabad, Bangalore & Pune). Rs 11.4 Cr has been sanctioned of which Rs 5.2 Cr disbursed. 4. Bio Incubator Seed Fund: Rs. 11 Cr has been sanctioned and Rs. 7 Cr has been disbursed to 11 Bio-Incubators.   |
|------------|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| DST & MHRD | Innovation Programs for Students | 1. Ucchhatar Aavishkar Yojana: Rs. 258 Cr. sanctioned and disbursement has taken place for 85 projects totaling to Rs 162.47 Cr 2. MANAK: 30,678 students have been selected, who will be given grant of Rs. 10,000 each      |

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## ANNEXURE-IV ANNEXURE REFERRED TO IN REPLY TO PART  (c) OF THE LOK SABHA STARRED QUESTION NO. 75 FOR ANSWER ON 23.07.2018 State Governments which have formulated Startup policies in their States

1. Andhra Pradesh
2. Kerala
3. Rajasthan
4.  Goa
5. Karnataka
6. West Bengal
7. Telangana
8. Gujarat
9. Jharkhand
10. Uttarakhand
11. Uttar Pradesh
12. Madhya Pradesh
13. Odisha
14. Bihar
15. Chhattisgarh
16. Haryana
17. Assam
18. Maharashtra
19. *********

## ANNEXURE-V

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART    (b)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 696 FOR ANSWER ON 23.07.2018

## Details of funds invested in Startups by AIFs, State-wise

| State          |   Number of Startups |   Amount (Rs. Crore) |
|----------------|----------------------|----------------------|
| Delhi          |                   23 |                51.32 |
| Gujarat        |                    1 |                 1.65 |
| Haryana        |                    9 |                68.88 |
| Karnataka      |                   46 |               190.02 |
| Kerala         |                    1 |                 0.14 |
| Madhya Pradesh |                    1 |                 2.7  |
| Maharashtra    |                   42 |               200.96 |
| Punjab         |                    1 |                 8    |
| Rajasthan      |                    4 |                27.88 |
| Tamil Nadu     |                    3 |                 6.03 |
| Telangana      |                    5 |                20.5  |
| Uttar Pradesh  |                    2 |                 4.76 |
| Uttarakhand    |                    1 |                 0.21 |
| West Bengal    |                    3 |                19.55 |
| Grand Total    |                  142 |               602.6  |

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