Lok Sabha Question No. 1961 (UNSTARRED), answered on 2019-07-03
Subject: Impact of Start Up India
Ministry: COMMERCE AND INDUSTRY
Asked by: Dharambir Singh

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

## LOK SABHA

UNSTARRED QUESTION NO. 1961.

TO BE ANSWERED ON WEDNESDAY, THE 3 RD  JULY, 2019.

## IMPACT OF START UP INDIA

## 1961.  SHRI DHARAMBIR SINGH:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the details of effectiveness of 'Start Up India' since its beginning/inception;
- (b) whether any monitoring and evaluation has been initiated for the said scheme;
- (c) if so, the details of the improvement made in this regard; and
- (d) if not, the reasons therefor?

## ANSWER वाणिज् य एवं उद्योग मंत्री (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY

## (SHRI  PIYUSH GOYAL)

- ( a) : In order to meet the objectives of the Startup India initiative commenced  on  16 th January  2016,  Government  of  India  announced Action  Plan  containing  19  Action  Points.  The  progress  made  with respect to each Action Point is at Annexure-I.
- (b) to (d): Yes,  Sir . A  formal  mechanism  has  been  put  in  place  in  form  of Monitoring Committee to review progress of Startup India programme on regular basis. The Monitoring Committee comprises representative from Department for Promotion of Industry and Internal Trade (DPIIT), NITI Aayog, Department of Revenue (Ministry of Finance), Ministry of Micro,  Small  and  Medium  Enterprises,  Department  of  Science  and Technology (Ministry of Science and Technology), Department of BioTechnology (Ministry of Science and Technology), Ministry of Electronics and Information Technology, Department of Higher Education  (Ministry  of  Human  Resources  Development)  and  Small Industries Development Board of India (SIDBI). The Monitoring Committee continuously reviews progress & implementation of various measures for growth of startup ecosystem.

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## ANNEXURE-I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  LOK  SABHA  UNSTARRED QUESTION NO. 1961 FOR ANSWER ON 3 rd  JULY, 2019.

1.

| S.No.                          | Item                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Simplification and Handholding | Simplification and Handholding                                     | Progress                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 1.                             | Compliance Regime based on Self-certification                      | Startups recognised under Startup India initiative can self-certify their compliance against 6 labour and 3 environment laws                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 2.                             | Startup India Hub                                                  | - Dedicated team setup under Invest India (not for profit facilitation arm of the Ministry of Commerce and Industry) - 1,38,170 queries addressed by the Startup India team - One-on-One Facilitation: The Startup India Team has been able to facilitate 682 cases till 31 st May, 2019 - Engaged with 100+ Venture Capitalist and angel networks having deal flow arrangement with most of them - Mapped out 177 incubators, 360 mentors and 71 accelerators - Deal flow arrangement with banks including                                                                                                                                                                                                            |
| 3.                             | Rolling out of Mobile App and Portal                               | Union Bank, Yes Bank, Axis Bank, etc. - 3,18,506 users registered on the Startup India Portal - 19,247 Startups recognized by Department for Promotion of Industry and Internal Trade (DPIIT) - 9 International bridges established to established market opportunities for Startups in the respective countries - 2,39,136 aspiring and existing entrepreneurs registered for the course - 3,157 mentor, investor and incubator connections established through the portal for Startups - 123,000+ monthly visits on the portal - 112 Innovation Hunts and programs hosted on the Startup India portal by various government departments and corporates. Total of 8,159 applications received through these programs. |
| 4.                             | Legal Support and Fast- tracking Patent Examination at Lower Costs |  Startups are eligible for 80% rebate in patent filing fees and 50% rebate in trademark filing fees. Additionally, Startups will also be considered for expedited examination of patent applications to reduce time taken in granting patents.  425 Patent facilitators and 606 Trademark facilitators have been empanelled under this scheme to provide free-of-charge services to                                                                                                                                                                                                                                                                                                                                  |

|                                |                                                                                     | Startups.  1496 patent applications have been granted 80% rebate on filing fee.  2761 trademark applications have been granted 50% rebate on fill fee.  389 applications were granted expedited examination and 103 patents were granted.                                                                                                                                                                                                                                                                                      |
|--------------------------------|-------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.                             | Relaxed Norms of Public Procurement for Startups                                    |  Public procurement norms relaxed for startups through exemptions on (November 2016) o Prior turnover criteria; and o Prior experience criteria Applicable on all tenders issued by Central Ministries and Central Public Service Undertakings (CPSUs)  Startups exempt from submitting Earnest Money Deposit requirements (July 2017)  GeM Startup Runway launched - dedicated corner for startups to sell products & services to Government (February 2019) o 1,862 Startups registered o 7,697 procurement orders worth Rs. |
| 6.                             | Faster Exit for Startups                                                            | 275 Crore received  MCA has notified Startups as 'Fast track firms'  Enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies                                                                                                                                                                                                                                                                                                                                                                  |
| Funding Support and Incentives | Funding Support and Incentives                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 7.                             | Providing Funding Support through a Fund of Funds with a Corpus of Rs. 10,000 crore |  Twice of Govt. contribution received by venture funds is invested into DPIIT recognised startups  Small Industries Development Bank of India (SIDBI) has committed Rs. 3123.20 crore to 49 SEBI registered Alternative Investment Funds (AIFs). These funds have raised a corpus fund of Rs. 27,478 crore.  Rs. 483.46 core have been drawn from the SIDBI Fund of Funds  Rs. 1625.73 crore have been invested into 247 startups.                                                                                            |
| 8.                             | Credit Guarantee Fund for Startups                                                  | The earlier Cabinet Note on Credit Guarantee Scheme for Startups has been withdrawn and the Department is under process of re-drafting the cabinet note keeping in view the suggestions of SIDBI.                                                                                                                                                                                                                                                                                                                                 |
| 9.                             | Tax Exemption on Capital Gains                                                      | Section 54EE and 54 GB have been inserted in the Income-tax Act, 1961 to provide exemption from capital gains tax.                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.                            | Tax Exemption to Startups for 3 years                                               | 149 start-ups have been benefited under this incentive                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 11                             | Tax Exemption on Investments above Fair Market Value                                | 689 startups have been benefitted under this incentive                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

|   Industry-Academia Partnership and | Industry-Academia Partnership and                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-------------------------------------|------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  12 | Incubation Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform | The Department is planning to organize Global Startup Conclave 2020 in February, 2020 which will be a 4 days mega global event like SLUSH, CES, Web Summit with an aim to position India as the next startup destination.                                                                                                                                                                                                                                                        |
|                                  13 | Launch of Atal Innovation Mission (AIM) with Self- Employment and Talent Utilization (SETU) Program  |  8,878 Schools selected for setting up Atal Tinkering Labs  Rs. 20 Lakhs will be given to each school over 5 years.  Rs. 12 Lakhs / school disbursed to 3,020 schools  102 Incubation Centres selected  Rs. 10 crore to be given to each centre over 5 years.  Rs. 57.68 crore disbursed to 31 New Incubation Centres  Rs. 38.91 crore disbursed to 8 Established Incubation Centres  24 Atal New India Challenges conducted  951 applications received; 54 shortlisted |
|                                  14 | Harnessing Private Sector Expertise for Incubator Setup                                              | Atal Innovation Mission 102 Incubation Centres selected  Rs. 10 crore to be given to each centre over 5 years.  Rs. 57.68 crore disbursed to 31 New Incubation Centres  Rs. 38.91 crore disbursed to 8 Established Incubation Centres 24 Atal New India Challenges conducted  951 applications received; 54 shortlisted                                                                                                                                                      |
|                                  15 | Building Innovation Centres at National Institutes                                                   | DST  Rs. 18.69 Crore disbursed to 11 Incubators  15 Startup Centres have been approved; 10 centres received a grant of Rs. 3.75 Lakh DBT  Rs. 195.90 Crore disbursed as a grant-in-aid to 4 bio-clusters  Rs. 174.26 Crore disbursed to 41 Bio- incubators through BioNEST  Rs. 6.23 Crore has been disbursed to 4 BIRAC Regional Centres  Rs. 150 Crore fund setup as a Fund of Funds to Bio-incubators  Rs. 8.5 Crore disbursed to 13 Bio-incubators                    |
|                                  16 | Setting up of 7 New Research Parks Modeled on the Research Park Setup at IIT Madras                  | 8 Universities have been selected for setting up Research Parks identified with total sanction amount of Rs. 680 Crore Rs. 233 Crore has been disbursed to following Research Parks                                                                                                                                                                                                                                                                                              |

|    |                                                       |  IIT Delhi  IIT Kanpur  IIT Gandhinagar  IIT Mumbai  IIT Guwahati  IIT Kharagpur  IIT Hyderabad  IISc Bangalore                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|----|-------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17 | Promoting Startups in the Biotechnology Sector        | DBT  Rs. 195.90 Crore disbursed as a grant-in-aid to 4 bio-clusters  Rs. 174.26 Crore disbursed to 41 Bio- incubators through BioNEST  Rs. 6.23 Crore has been disbursed to 4 BIRAC Regional Centres  Rs. 150 Crore fund setup as a Fund of Funds to Bio-incubators Rs. 8.5 Crore disbursed to 13 Bio-incubators (BIRAC SEED FUND)                                                                                                                                                                                                                    |
| 18 | Launching of Innovation Focused Programs for Students | NIDHI (National Initiative for Developing and Harnessing Innovations)  Grand challenge conducted to promote entrepreneurship amongst student community  224 Applications received; out of 30 finalists selected, 12 student run teams awarded Rs. 10 Lakh each Uchchatar Avishkar Yojana  148 projects sanctioned in Uchchatar Avishkar Yojna  Rs. 220.75 Crore released under the UAY scheme MANAK (Million Minds Augmenting National Aspiration and knowledge)  Rs. 10,000 granted to 1,03,497 students in the last 3 years under the MANAK Scheme |
| 19 | Annual Incubator Grand Challenge                      | This activity is being coordinated by NITI Aayog                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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