Lok Sabha Question No. 2906 (UNSTARRED), answered on 2020-03-11
Subject: Features of Start Up India
Ministry: COMMERCE AND INDUSTRY
Asked by: Nihal Chand Chauhan, Jaskaur Meena

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2906.

TO BE ANSWERED ON WEDNESDAY, THE  11 TH   MARCH, 2020.

## FEATURES OF START UP INDIA

## 2906.  SHRI NIHAL CHAND:

## SHRIMATI JASKAUR MEENA:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the major features of Start Up India scheme;
- (b) the  district-wise  details  of  the  funds  sanctioned,  allocated  and  utilized  in Rajasthan therein so far;
- (c) the  district-wise  number  of  scheduled  tribe  males  and  females  covered  in Rajasthan therein so far;
- (d) the details of the target fixed thereunder including its achievements so far;
- (e) whether the Government is considering to make any change in this scheme or to expand it; and
- (f) if so, the details thereof along with the time by which it is likely to be done and the reasons therefor?

## ANSWER वाणिज ् य एवं उद्योग मंत्री ( श्री पीयूष गोयल ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a): Startup India initiative was announced by the Prime Minister of India on 15 th August,  2015.  The  flagship  initiative  has  an  objective  to  build  a strong eco-system for nurturing innovation and Startups in the country that  will  drive  sustainable  economic  growth  and  generate  large  scale employment opportunities.  Further to this, an Action Plan for Startup India  was  unveiled  by  the  Prime  Minister  of  India  on  16th  January 2016. The action plan comprises of 19 action items spanning across areas such as 'Simplification and handholding', 'Funding support and incentives' and 'Industry-academia partnership and incubation'. Since its inception, 28,979, Startups across the country have been recognised by Department for Promotion of Industry and Internal Trade (DPIIT) as on 01.03.2020.

Salient features of Startup India Action Plan are at Annexure-I.

- (b) to (d): There  is  no  provision  under  Startup  India  initiative  for  sanctioning  of funds to startups directly. However, Government of India has established  a  Fund  of  Funds  for  Startups  (FFS)  with  corpus  of  Rs. 10,000  crores,  to  meet  the  funding  needs  of  startups.  DPIIT  is  the monitoring  agency  and  Small  Industries  Development  Bank  of  India (SIDBI) is the operating agency for FFS. The total corpus of Rs. 10,000 crores  is  envisaged  to  be  provided  over  the  14 th and  15 th Finance Commission cycles based on progress of the scheme and availability of funds. As on 18 th February 2020, SIDBI has committed Rs 3123.20 crore  to  47  SEBI  registered  Alternative  Investment  Funds  (AIFs). These funds have raised a corpus fund of Rs. 25,728 crore. Further, the AIFs have invested a total of Rs. 3,378.47 crore into 320 startups out of which Rs. 912.91 crore have been drawn from Fund of Funds for Startups.  Fund  of  Funds  does  not  directly  invest  into  startups  but provides capital to SEBI-registered Alternate Investment Funds (AIFs), known as daughter funds, who in turn invest money in growing Indian startups through equity and equity-linked instruments. Thus, there is no direct  fund  allocation  from  DPIIT  to  States/UTs  under  Startup  India initiative.
- (e) & (f): Startup  India  is  an  ongoing  initiative.  Necessary  measures  are  being taken based on continuous consultations with all stakeholders.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 2906 FOR ANSWER ON 11.03.2020.

## 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 crores 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
13. 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  IIT  Madras with  an  objective  to  propel  successful  innovation  through incubation and 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. with  an  objective  to  support  creation  of
19.  Annual  Incubator  Grand  Challenge successful world class incubators in India.

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