Lok Sabha Question No. 2212 (UNSTARRED), answered on 2023-08-02
Subject: Start up India Scheme in Assam
Ministry: COMMERCE AND INDUSTRY
Asked by: Kripanath Mallah

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

## LOK SABHA

UNSTARRED QUESTION NO. 2212. TO BE ANSWERED ON WEDNESDAY, THE 02 ND  AUGUST, 2023.

## START UP INDIA SCHEME IN ASSAM

## 2212.  SHRI KRIPANATH MALLAH:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the salient features of the Start up India Initiative;
- (b) the details of the funds sanctioned, allocated and utilized under this initiative within Assam so far;
- (c) the details of various programmes undertaken by the Government to promote start ups across the country including Assam under Start up India initiative;
- (d) the details of the number of entities recognized as start ups under this initiative within Assam so far;
- (e) the details of the target set along with its response within the country; and
- (f) the steps being taken by the Government to promote this initiative especially in rural areas of Assam?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b): In  order  to  build  a  strong  ecosystem  for  nurturing  innovation,  startups  and encouraging private investments in the startup ecosystem of the country, the Government launched the Startup India initiative on 16 th  January 2016.

In order to meet these objectives, the Government unveiled an Action Plan for Startups comprising of schemes and incentives envisaged to create a vibrant startup ecosystem in the country. 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'.

For  attaining  specific  targets,  various  programs  are  implemented  by  the Government  under  the  Startup  India  initiative  to  recognize,  develop,  and empower startups so that they are able to raise private investments. Sustained Government  efforts  in  this  direction  have  resulted  in  98,119  entities  being recognised as startups as on 30th April 2023.

Under  the  Startup  India  initiative,  to  provide  capital  at  various  stages of business cycle of a startup, the Government is implementing Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme (SISFS). Both the Schemes are implemented on a pan-India basis.

The Fund of Funds for Startups Scheme was approved and established in June 2016 with a corpus of Rs 10,000 crore, with contribution spread over the 14th and 15th Finance Commission cycle based on progress of implementation, to provide much-needed  boost to the Indian startup ecosystem and enable access to domestic capital. The Scheme  is operationalized by Small Industries Development Bank of India (SIDBI). Under FFS, the Scheme does not directly invest in startups, instead provides capital to SEBI-registered Alternative Investment Funds (AIFs), known as daughter funds, who in turn invest money in  growing Indian startups through equity and equity-linked instruments. SIDBI has   been given the mandate of operating this Fund  through  selection  of  suitable  daughter  funds  and  overseeing  the disbursal  of  committed  capital.  AIFs  supported  under  FFS  are  required  to invest at least 2 times of the amount committed under FFS in startups.

As on 30 th  April 2023, Rs. 9,121.20 crore has been committed to 114 AIFs by SIDBI under FFS. Specifically  for  the  State  of  Assam,  the  AIFs  supported under FFS have invested Rs. 26.47 crores in 14 startups.

The Startup India Seed Fund Scheme has been approved for the period of 4 years  starting  from  2021-22  with  a  corpus  of  Rs.  945  crore.  The  Scheme aims  to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization.  The Scheme is implemented from 1 st  April 2021. The Experts Advisory Committee (EAC), under SISFS, is responsible for the overall execution and monitoring of SISFS. The EAC evaluates and selects incubators for allocation of funds under the Scheme. As per provisions of the Scheme, the selected incubators shortlist startups based on parameters outlined in Scheme guidelines.

160  incubators  have  been  approved  so  far  by  the  EAC  for  support  of  Rs. 611.36  crore as on 30 th   April 2023. The approved incubators have selected 1,039 startups. Specifically for the State of Assam, Rs. 2.10 crore has been approved by the EAC to 1 incubator. The total  incubators approved under the Scheme have shortlisted 14 recognised startups from the State of Assam for  an approved sum of Rs. 1.49 crore.

- (c) to (f): Startup India initiative was launched on 16th January 2016 with an objective to  build  a  strong  eco-system  for  nurturing  innovation  and  startups  in  the country  that  would  drive  sustainable  economic  growth  and  generate  large scale employment opportunities.

Sustained Government efforts in this direction have resulted in 98,119 entities being recognised as startups in the country as on 30 th  April 2023. Particularly for the State of Assam, 879 entities have been recognised as startups.

The details of various programs undertaken by the Government to promote startups across the country under Startup India initiative are at Annexure-I.

All the steps taken by Government to promote this initiative are inclusive and are implemented across states, cities, towns and rural areas. In addition, the Government  has  taken  various  initiatives,  specifically  for  development  of entrepreneurship in North Eastern States like Assam. The list of some of these initiatives is placed as Annexure-II.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (c) to (f) OF THE LOK SABHA UNSTARRED QUESTION NO. 2212 FOR ANSWER ON 02.08.2023.

## The  details  of  various  programs  undertaken  by  the  Government  to  promote startups across the country are as under:

1. Startup India Action Plan: An Action Plan for Startup India was unveiled 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'.  The  Action  Plan  laid  the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country.
2. Fund of Funds for Startups (FFS) Scheme: The Government has established FFS with corpus of Rs. 10,000 crore, 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 crore is envisaged to  be  provided  over  the  14th  and  15th  Finance  Commission  cycles  based  on progress  of  the  scheme  and  availability  of  funds.  It  has  not  only  made  capital available for startups at early stage, seed stage and growth stage but also played a  catalytic  role  in  terms  of  facilitating  raising  of  domestic  capital,  reducing dependence on foreign capital and encouraging home grown and new venture capital funds.
3. Credit Guarantee  Scheme  for  Startups (CGSS): The Government  has established  the  Credit  Guarantee  Scheme  for  Startups  for  providing  credit guarantees  to  loans  extended  to  DPIIT  recognized  startups  by  Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs) and Venture Debt Funds  (VDFs)  under  SEBI  registered  Alternative  Investment  Funds.  CGSS  is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. DPIIT recognised startups.
4. Regulatory Reforms: Over 50 regulatory reforms have been undertaken by the Government since 2016 to enhance ease of doing business, ease of raising capital and reduce compliance burden for the startup ecosystem.
5. Ease  of  Procurement: To  enable  ease  of  procurement,  Central  Ministries/ Departments are directed to relax conditions of prior turnover and prior experience in public procurement for all DPIIT recognised startups subject to meeting quality and technical specifications. Further, Government e-Marketplace (GeM) Startup Runway  has  been  developed  which  is  a  dedicated  corner  for  startups  to  sell products and services directly to the Government.
6. Support  for  Intellectual  Property  Protection: Startups  are  eligible  for  fasttracked patent application examination and disposal. The Government launched Start-ups Intellectual Property Protection (SIPP) which facilitates the startups to file applications for patents, designs and trademarks through registered facilitators in appropriate  IP  offices  by  paying  only  the  statutory  fees.  Facilitators  under  this

Scheme are responsible for providing general advisory on diff¬erent IPRs, and information on protecting and promoting IPRs in other countries. The Government bears the entire fees of the facilitators for any number of patents, trademark or designs, and startups only bear the cost of the statutory fees payable. Startups are provided  with  an  80%  rebate  in  filing  of  patents  and  50%  rebate  in  filling  of trademark vis-a-vis other companies.

7. Self-Certification under Labour and Environmental laws: Startups are allowed to self-certify their compliance under 9 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation.
8. Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognized startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
9. International Market Access to Indian Startups: One of the key objectives under the Startup India initiative is to help connect Indian startup ecosystem to global startup  ecosystems  through  various  engagement  models.  This  has  been  done though  international  Government  to  Government  partnerships,  participation  in international  forums  and  hosting  of  global  events.  Startup  India  has  launched bridges with over 17 countries that provides a soft-landing platform for startups from the partner nations and aid in promoting cross collaboration.
10. Faster Exit for  Startups: The  Government has notified  Startups  as  'fast  track firms' enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.
11. Startup India Hub: The Government launched a Startup India Online Hub on 19th June  2017  which  is  one  of  its  kind  online  platform  for  all  stakeholders  of  the entrepreneurial  ecosystem  in  India  to  discover,  connect  and  engage  with  each other.  The  Online  Hub  hosts  Startups,  Investors,  Funds,  Mentors,  Academic Institutions, Incubators, Accelerators, Corporates, Government Bodies and more.
12. Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act (2019): A DPIIT recognized startup is eligible for exemption from the provisions of section 56(2)(viib) of the Income Tax Act.
13. Startup India Showcase: Startup India Showcase is an online discovery platform for the most promising startups of the country chosen through various programs for startups exhibited in a form of virtual profiles. The startups showcased on the platform have distinctly emerged as the best in their fields. These innovations span across  various  cutting-edge  sectors  such  as  Fintech,  EntrepriseTech,  Social Impact,  HealthTech,  EdTech, among others. These startups are solving critical problems  and  have  shown  exceptional  innovation  in  their  respective  sectors. Ecosystem  stakeholders  have  nurtured  and  supported  these  startups,  thereby validating their presence on this platform.
14. National Startup Advisory Council: The Government in January 2020 notified constitution of the National Startup Advisory Council to advise the Government on measures needed to build a strong ecosystem for nurturing innovation and startups in  the  country  to  drive  sustainable  economic  growth  and  generate  large  scale employment  opportunities.  Besides  the  ex-officio  members,  the  council  has  a number  of  non-official  members,  representing  various  stakeholders  from  the startup ecosystem.
15. Startup  India:  The  Way  Ahead: Startup  India:  The  Way  Ahead  at  5  years celebration of Startup India was unveiled on 16th January 2021 which includes actionable plans for promotion of ease of doing business for startups, greater role of technology in executing various reforms, building capacities of stakeholders and enabling a digital Aatmanirbhar Bharat.
16. Startup India Seed Fund Scheme (SISFS): Easy availability of capital is essential for  entrepreneurs  at  the  early  stages  of  growth  of  an  enterprise.  The  capital required at this stage often presents a make-or-break situation for startups with good business ideas. The Scheme aims to provide financial assistance to startups for  proof  of  concept,  prototype  development,  product  trials,  market  entry  and commercialization. Rs. 945 crore has been sanctioned under the SISFS Scheme for period of 4 years starting from 2021-22.
17. National  Startup  Awards  (NSA): National  Startup  Awards  is  an  initiative  to recognize  and  reward  outstanding  startups  and  ecosystem  enablers  that  are building  innovative  products  or  solutions  and  scalable  enterprises,  with  high potential of employment generation or wealth creation, demonstrating measurable social impact. Handholding support is provided to all the finalists across various tracks viz. Investor  Connect,  Mentorship,  Corporate  Connect,  Government Connect, International Market Access, Regulatory Support, Startup Champions on Doordarshan and Startup India Showcase, etc.
18. States' Startup Ranking Framework (SRF): States' Startup Ranking Framework is a unique initiative to harness strength of competitive federalism and create a flourishing startup ecosystem in the country. The major objectives of the ranking exercise  are  facilitating  states  to  identify,  learn  and  replace  good  practices, highlighting the policy intervention by states for promoting startup ecosystem and fostering competitiveness among states.
19. Startup Champions on Doordarshan: Startup Champions program on Doordarshan is a one-hour weekly program covering stories of award  winning/ nationally recognised startups. It is telecasted in both Hindi and English across Doordarshan network channels.
20. Startup  India  Innovation  Week: The  Government  organises  Startup  India Innovation  week  around  the  National  Startup  Day  i.e.,  16th  January,  with  the primary  goal  was  to  bring  together  the  country's  key  startups,  entrepreneurs, investors, incubators, funding entities, banks, policymakers, and other national/international  stakeholders  to  celebrate  entrepreneurship  and  promote innovation.
21. The Startup India Investor Connect Portal has been co-developed under the Startup India Initiative with SIDBI, serving as an intermediary platform that links startups  and  investors  in  order  to  help  entrepreneurs  from  various  industries, functions, stages, regions, and backgrounds in mobilizing capital. The portal has been  built  with  the  aim  to  enable  in  particular;  early-stage  startups  located anywhere in the country to showcase themselves to leading investors/ venture capital funds. Currently, 82 Alternative Investment Funds (AIFs) and more than 1,900 startups have already registered on the platform.
22. National  Mentorship  Portal  (MAARG) :  In  order  to  facilitate  accessibility  to mentorship  for  startups  in  every  part  of  the  country,  the  Mentorship,  Advisory, Assistance, Resilience, and Growth (MAARG) program has been developed and launched under the Startup India Initiative.
23. ASCEND: Under ASCEND (Accelerating Startup Caliber & Entrepreneurial Drive), sensitization workshops on startups and entrepreneurship were conducted for all eight North Eastern States with the objective to capacitate and augment knowledge on key aspects of entrepreneurship and continue efforts towards creating a robust startup ecosystem in these States.
24. Startup20 Engagement Group: As a result of India's belief in startup ecosystem, a  Startup20  Engagement  Group  under  India's  G20  Presidency  has  been institutionalised which is working towards harmonisation and cross collaboration amongst the largest global economies. The engagement group acts as the voice of  the  global  startup  ecosystem  bringing  together  varied  stakeholders  on  a common  platform.  The  group  aims  to  support  startups  by  enabling  synergies between  startups,  corporates,  investors,  innovation  agencies  and  other  key ecosystem stakeholders internationally and to create global synergies.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (c) to (f) OF THE LOK SABHA UNSTARRED QUESTION NO. 2212 FOR ANSWER ON 02.08.2023.

## List of initiatives undertaken by the Government specifically for promotion of entrepreneurship in Assam is as under:

1. ASCEND Startup Workshop Series and Women for Startups Workshops : The  Government  organized  a  series  of  startup  workshops  -  ASCEND (Accelerating Startup Calibre & Entrepreneurial Drive), for the entrepreneurs, aspiring entrepreneurs, and students from North-eastern region. In addition, the workshops are being conducted with a specific focus on women entrepreneurs across  the  north-eastern  states.  The  workshops  were  organized  during  the month of November 2022 and December 2022 in Manipur, Assam, Meghalaya, Mizoram, Arunachal Pradesh, Nagaland, Sikkim, and Tripura. The workshops witnessed  participation  of  over  11,000  ecosystem  stakeholders  such  as government  officials,  startups,  aspiring  entrepreneurs,  investors,  academic institutions, etc.
2. North-East Region Entrepreneurship & Startup Summit (NERES) : Ministry of Skill Development and Entrepreneurship organised NERES, an entrepreneurship and startup summit aimed at offering a platform to promising startups  and  aspiring  entrepreneurs  across  North-East  Region  (NER).  The objective of NERES was aimed at stirring up entrepreneurial minds across the NER states and promotes startup entrepreneurs by offering them a platform to pitch their business ideas and also addressing various challenges faced by the startups.  The  programme  provided  a  platform  for  aspiring  and  existing entrepreneurs/startups to participate and showcase their business ideas and plan. It also helped them to learn more about the good practices and network with  fellow  startups.  The  programme  has  paved  the  way  for  startups  and entrepreneur to seek support from mentors and an ecosystem that support their business growth.
3. Knowledge Exchange Workshops :  DPIIT  organized  knowledge  exchange workshops  for  dissemination  of  good  practices  and  mutual  learning  among States and UTs.
- i. In year 2018, two-days knowledge exchange workshops were organized in leading incubators in  the  country.  The  workshops  offered  an opportunity for participating States and UTs to interact with each other, exchange best practices, interact with leading Startups, investors, and incubators. State Government officials from Assam, Tripura, Manipur, and Meghalaya participated in Hyderabad (Telangana). State Government officials from Nagaland and Sikkim participated in workshops in Vishakhapatnam (Andhra Pradesh).
- ii. In year 2019, State Government officials from Mizoram participated in workshop organized in  Maharashtra.  State Government  officials from Assam,  Arunachal  Pradesh,  and  Nagaland  participated  in  workshop organized in Kerala.
- iii. International  Exposure  Visits  (2019):  with  the  objective  to  enable  the states to understand and assimilate best practices from these international ecosystems and assist in implementation of these practices in  their  respective  ecosystems,  visits  across  two  locations  -  San Francisco, California, and  Seattle,  Washington  in  the  months  of September-October 2019 were organized. Officials from Assam were a part of this delegation.
- iv. In year 2020, a 5-day virtual capacity building program was conducted in  June  2021  as  part  of  Knowledge  Exchange  Week  2021.  The workshops saw participation from over 130+ state government officials from 34 States and Union Territories of India, including all  the NorthEastern States.
- v. For  the  States'  Startup  Ranking  exercise  2022,  the  Government organised  knowledge  exchange  workshop  in  Meghalaya  (Shillong)  in November  2022,  wherein  the  sessions  were  delivered  by  eminent speakers  from  multiple  state  governments  and  startup  ecosystems stakeholders and saw participation of government officials from across the country including from north-eastern region.
4. Startup India Yatra Initiative :  Startup India launched Startup India Yatra in 2017  to  promote  entrepreneurship  in  rural  and  non-metro  regions  across States.  Under  this  program,  grassroot  Startup  aspirants  were  provided incubation, mentorship, and  funding support. As part of the program, bootcamps  were  organized  in  tier-2  and  tier-3  districts  of  the  state  where participants attended ideation workshops and pitch their ideas. As a part of this initiative,  bootcamps were  organized in  Manipur, Assam, Tripura, Arunachal Pradesh, Meghalaya, Mizoram, and Nagaland. More than 6600 individuals from 44 districts of these 7 states were reached under Startup Yatra. 179 incubation offers were extended along with a funding support of Rs. 20.1 lakhs.
5. WING : As a part of DPIIT's program WING - a capacity development program for  existing  and  aspiring  women  entrepreneurs was conducted in Guwahati, Assam which saw participation from 45 attendees and, in Kohima, Nagaland which saw participation from 114 attendees across two parallel workshops. The participants were given mentoring sessions in the following areas:
- i. Venture Ideation and Business Model Validation
- ii.  Governance: Legal/Compliance
- iii.  Marketing/Branding: Creating differential
- iv. Finance & Financial Decisions
- v. Mastering Customer Acquisition Strategy & Scaling-up
6. Azadi Ka Amrit Mahotsav (Startup Sensitization Training in Meghalaya & Assam): The Central Government along with State  Government of  Assam, participated in the Vanijya Utsav celebrations in Assam held on 22 nd  September 2021 at Guwahati. The Government presented on 'Schemes & Benefits for Startups'  and  further  participated  in  the  Startup  Bootcamp  hosted  for  the incoming  cohort  3.0  of  startups  chosen  by  Assam  Startup.  The  Startup Bootcamp was held on 23rd September 2021, Assam Startup Nest. Around 30 startups  and  more  than  100  delegates  representing  multiple  government departments from the state of Assam participated across both the events. The sessions  were  instrumental  in  sensitizing  the  startups  and  the  delegation present about the programs under the Startup India initiative.

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